Coakley backs option for public insurance

“Such a public plan would provide individuals with greater choice and likely offer more affordable coverage,’’ she said in a 10-page plan released by her campaign. “A public option would also create competition in the insurance market, further driving costs down.’’

The question of whether to create a government-run insurance plan to help people who cannot afford coverage has generated controversy as Congress has worked to forge a health care bill. The proposal appeared to fade at one point, but now has reportedly gained new life on Capitol Hill.

Coakley is not alone in her support for the so-called public option. One of her top competitors for the Democratic nomination, US Representative Michael E. Capuano, has been insistent that any revamp of the health care system include a public insurance option. Their two competitors, City Year cofounder Alan Khazei, and Celtics co-owner Stephen Pagliuca, have both said they support a public option but would not necessarily insist on it.

All four Democrats are running for the Senate seat left vacant by the death of Edward M. Kennedy. They will square off in the Dec. 8 primary. The leading candidate on the GOP side is state Senator Scott Brown, a Wrentham Republican. The spe cial election is Jan. 19.

Coakley also said in her plan that she believes reforms should be designed to expand coverage to those who currently do not have it, to improve health care quality, and to contain costs.

She said she agreed with proposals in Washington that would mandate that individuals obtain coverage, expand Medicaid coverage for the poorest Americans, and provide new government subsidies for those who are not eligible for Medicaid but still cannot afford insurance. She also called for employers to bear some responsibility for covering workers, but she offered no details.

“The status quo is unaffordable and a moral disgrace,’’ she said.

In an e-mail to supporters yesterday, Coakley said she had taken on pharmaceutical companies and insurers on behalf of consumers, winning “hundreds of millions of dollars in record settlements.’’

Given the timing of the election, it is not clear whether the new senator from Massachusetts will arrive in Washington in time to vote on a health care bill. But Coakley said that even if President Obama signs a health care bill, work will still need to be done to “improve a complex system that badly needs repair.’’

Much of her plan focuses on the problem of controlling costs, which she said was needed in order for any health care overhaul to succeed.

She proposed a variety of measures, including changing incentives so health care providers are focused more on keeping people healthy, rather than treating them when they get sick; increasing transparency of health care quality and costs; and reducing health care bureaucracy.