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Mr Obama has been pressing for a government-run scheme to extend healthcare insurance to some 46 million people in the US.

But Health Secretary Kathleen Sebelius said that this had never been Mr Obama’s top priority.

She hinted that he may accept the idea of non-profit insurance co-operatives.

In an interview with CNN, Ms Sebelius said that Mr Obama’s government-run insurance plan - a so-called “public option” - was “not the essential element” of the administration reforms.
“I think what’s important is choice and competition. And I’m convinced at the end of the day, the plan will have both of those,” she said.

Separately, White House spokesman Robert Gibbs also refused to say that the “public option” was a make-or-break choice.

Mr Gibbs said Mr Obama’s administration would consider an alternative proposal of consumer-owned, non-profit co-operatives that would sell insurance in competition with private industry.

The proposal is currently being fine-tuned in the Senate Finance Committee.

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