Deal Near to Kill Public Option in Senate

Big question now, is what happens next.

Democratic senators say they have a tentative deal to drop a government-run insurance option from health care legislation.

No further details were immediately available.

But liberals and moderates have been discussing an alternative, including a private insurance arrangement to be supervised by the federal agency that oversees the system through which lawmakers purchase coverage. Additionally, talks centered on opening up Medicare to uninsured Americans beginning at age 55, a significant expansion of the large government health care program that currently serves the over-65 population.

Sen. Tom Harkin of Iowa told reporters he didn't like the agreement but would support it to the hilt in an attempt to pass health care legislation.

There isn't a lot of comments from liberal Senators -- like Wisconsin's Russ Feingold -- who have publicly stated that a bill lacking a Public Option would mean they were a "No" at final passage.  Other Senators (like New York's Chuck Schumer) have been constantly changing their positions.

UPDATE: Talking Points Memo is scrambling with quotes from Senate Majority Leader Reid that all reports saying the Public Option is dead are false.