Obama stands by public option in healthcare debate

U.S. President Barack Obama stood by proposals to create a government-run health insurance program on Thursday while insisting the move was merely one element of a wider plan to reform the industry.

A debate over the so-called public option has overshadowed Obama's plan to expand health coverage to tens of millions of Americans while reducing costs and making the health insurance sector more competitive.

On Sunday Health and Human Services Secretary Kathleen Sebelius said the public option was "not the essential element" of the overhaul, sparking furor among supporters and forcing the White House to clarify its message about Obama's chief legislative priority.