That’s it. Harry Reid just announced that he would include a public option in the health care bill, with an opt-out provision for the states. Reid is sending several different versions of the total legislation to the CBO for scoring. But crucially, he’s ONLY sending the opt-out version of the public option to CBO, not the trigger provision or any other compromise. Reid said that he “feels good” about the consensus reached inside the caucus.

Reid mentioned that he’s always been a strong supporter of the public option, which while not a “silver bullet,” can offer competition and choice. He’s decided that the best way to move forward is to include it (he did not say exactly what version of the public option – one with Medicare rates, negotiated rates, or Chuck Schumer’s “level playing field” version – but I would assume the Schumer version, based on reporting) in the bill, meaning that the opposition would need to muster 60 votes to take it out of the bill. Reid called the opt-out “the fairest way” to press forward, and termed it “important” that the Senate bill have a public option, citing mass public support in addition to support of the caucus.

As far as details, Reid said that states will have “until 2014″ to opt out of the public option for their state. He did not get into the mechanism of how they could opt out – through state legislatures, by gubernatorial decree, or by a vote of the people in a ballot measure. This does not answer the question of whether the public option would be available everywhere for a year before states could close it out, but that doesn’t look likely.

Reid sais, “As soon as we get bill back from CBO, we will have the support of caucus to move to the bill and start legislating.” This means that he feels he will have full Democratic support on a motion to proceed to start the process on the bill. He would need all 60 votes of the caucus, since Olympia Snowe would in all likelihood not vote for the motion to proceed, because of the opt-out provision. Reid said he spoke to Sen. Snowe on Friday, and that she was a no vote on any kind of public option. “We’ll have to move forward without her.” Reid said he was always looking for Republican support on everything they do in the Senate. “It’s just a little hard to find them … We invite the Republicans to come and try to improve this legislation … we want them to work on unemployment extension, FAA extension, highway extension. But there are no more moderates in the Republican caucus. I can count the moderates on two fingers.”

Reid was tight-lipped on most of the other provisions in the bill. He said that he sent CBO a number of alternatives with respect to affordability and coverage subsidies. He did say that the co-op provision from the Senate Finance Committee bill would be included in the final legislation (presumably to keep Kent Conrad on the bill). He said that “this bill is for middle-class families,” responding to labor opposition to the financing mechanism, the excise tax for high-end insurance plans.

Reid said that he has not asked for the White House to make any calls yet to twist arms and get certain Senators on board. “We have 60 people in the caucus. We all hug together and see where we come out.”

UPDATE: Here were the prepared remarks at the beginning of the presser:

The last two weeks have been a great opportunity to work with the White House, Senators Baucus and Dodd, and members of our Caucus on this critical issue of reforming our health insurance system.

We have had productive, meaningful discussions about how to craft the strongest bill that can gain the 60 votes necessary to move forward in the Senate.

I feel good about progress we have made within our caucus and with the White House, and we are all optimistic about reform because of the unprecedented momentum that exists.

I am well aware that the issue of the public option has been a source of great discussion in recent weeks. I have always been a strong supporter of the public option.

While the public option is not a silver bullet, I believe it is an important way to ensure competition and to level the playing field for patients.

As we’ve gone through this process, I’ve concluded, with the support of the White House and Senators Baucus and Dodd, that the best way forward is to include a public option with an opt-out provision for states.

Under this concept, states will be able to determine whether the public option works well for them and will have the ability to opt-out.

I believe that a public option can achieve the goal of bringing meaningful reform to our broken system. It will protect consumers, keep insurers honest and ensure competition and that’s why we intend to include it on the bill that will be submitted to the Senate for consideration.

We have spent countless hours over the last few days in consultation with Senators who have shown a genuine desire to see reform succeed, and I believe there is strong consensus to move forward in this direction.

Today’s developments bring us another step closer to achieving our goal of passing a bill this year that lowers costs, preserves choice, creates competition and improves quality of care.

…Health Care For America Now offers this statement:

“We applaud Majority Leader Reid’s leadership in making sure the Senate bill includes a public health insurance option to lower costs and inject much-needed competition into the health insurance marketplace. We appreciate his recognizing a public health insurance option is key to achieving meaningful reform, protecting consumers, and keeping insurers honest.

As we move forward, it is essential that Senate legislation addresses all of our key concerns including making sure health care is truly affordable, ensuring employer responsibility, generating revenue through fair financing rather than taxing higher-cost plans, and implementing a strong public health insurance option.

We now call on all Senators to stand with leadership and vote to begin debate on the floor. We are closer now than ever before to achieving a true guarantee of good, affordable health care for all. With 47 million people uninsured, tens of millions underinsured, and businesses and families throughout the country struggling with rising costs, there can be no excuse for blocking a full and fair Senate debate on health care reform.”

Not unqualified support, but not a full rejection, either.