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The prospect of a government-run health insurance plan in the US appeared to be losing support on Tuesday as senators charged with formulating a bipartisan healthcare reform bill met to hammer out a compromise deal and Democratic leaders emphasized areas of agreement.

With time to reach an agreement running out and President Barack Obama due to address the joint houses of Congress on Wednesday night, Democratic leaders said they remained optimistic that they could muster broad support for a reform plan reports the Financial Times.

Nancy Pelosi, the House speaker, said after meeting Mr Obama on Tuesday that Congress would be able to pass a bill based on the proposals already circulating on Capitol Hill.

“We have plenty to work with,” said Ms Pelosi, who has insisted on a public option, adding that reform would be carried out in a “fiscally sound way”.

Harry Reid, the Senate leader who also wants a government-backed programme, said there was agreement on “90 per cent” of the substance of the reforms needed. “We have 10 per cent that we need to work on, and we can do that,” he said.

Democratic leaders appeared to be making a plea to Republicans after a gruelling summer of healthcare debates to put politics aside. Mr Obama will exhort lawmakers on Wednesday to back a reform plan that will benefit all Americans.

The public option, originally a key part of Mr Obama’s vision for reform, appears to be the casualty. The president is expected to step back from his previous insistence on a government-run option.

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