Five Democrats opposed the Rockefeller amendment.

They included Sen. Max Baucus, D-Mont., chairman of the panel.

Sen. Baucus said he voted against the politically volatile provision because he feared that a bill including it would not get the 60 votes it would need to pass on the Senate floor.

Another Democrat, Sen. Kent Conrad, D-N.D., said during the debate that he "can't possibly support" Sen. Rockefeller's proposal. He explained that his state has the second-lowest level of Medicare reimbursement in the nation. He said every major hospital in North Dakota would "go broke" if they had to accept public option reimbursements at Medicare rates.

Joel Kopperud, a director for government relations with the Council of Insurance Agents and Brokers, reacted to the vote on the Rockefeller amendment by saying, "There's no way a government insurance program would fairly compete with private industry."

Mr. Kopperud added, "The real debate on the proposed government program is about a single-payer system and a government program that would certainly become a black hole for federal funds."

After the vote, debate immediately began on another amendment, by Sen. Charles Schumer, D-N.Y., to authorize the government to negotiate rates levied by doctors, hospitals and other health care providers immediately when the plan went into effect in 2013.

The Schumer 'public option" amendment to the Finance Committee health care reform draft failed on a vote of 13 nays to 10 yeas. All Republicans voted against the Schumer amendment. Three Democrats voted against the amendment – Baucus, Conrad, Lincoln

Sen. Rockefeller said during the debate on his measure that "we need this option because the insurance companies have failed to meet their obligation" to the public. He accused firms of putting profits over their customers.

He also contended during the debate that, without his proposal, consumers would face substantial premium increases once health care legislation takes effect.

But Republicans charged that a public option would eventually force private insurers out of business. That, Republican members of the committee contended, would force millions to get their insurance from the government.

"Washington is not the answer," said Sen. Orrin Hatch, R-Utah.

He said a public option "would be a disaster" and cause Americans to "lose an awful lot of control over their health care needs."

After the vote the National Association of Health Underwriters issued a statement saying in part that,, "NAHU is opposed to all bills or amendments to bills with provisions for a government run public plan. Government run plans at all levels increase costs for those covered under private plans by underpaying providers and being exempt from the fees, taxes, and solvency requirements required of private plans. Competition exists when the rules are the same for all players."