WASHINGTON— Senate Democrats have reached a tentative deal on the divisive issueof government-run health insurance, a development that bolsteredchances for health care legislation passing this year, Senate MajorityLeader Harry Reid said Tuesday.

If the agreement holds, itwould resolve a long-standing debate within the Democratic caucus overwhether the government should create a so-called public option thatPresident Obama has said would drive down prices by offeringcompetition.

The announcement came just hours after the Senatefaced another thorny issue associated with the 10-year, $848 billionhealth care bill: Abortion. Senators rejected an amendment that wouldhave imposed stricter guidelines for the procedure.

"We have abroad agreement," Reid said, emerging from a late meeting Tuesday withother Democrats. "For us, it moves this bill way down the road."

Reiddeclined to offer details, but vowed that "insurance companies willhave more competition and the American people will have more choices."He said the public option had not been stripped out of the health carebill.

Shortly after Reid's announcement, however, one Democratsaid he is concerned about the new approach. "While I appreciate thewillingness of all parties to engage in good-faith discussions, I donot support proposals that would replace the public option in the billwith a purely private approach," said Sen. Russ Feingold, D-Wis.

Thoughlittle information was available Tuesday night, Sen. Charles Schumer ofNew York and other Democrats have said this week that lawmakers wereconsidering a package of ideas, including an expansion of Medicaid andletting people under 65 buy into the Medicare program.

Lawmakershave also been discussing letting private insurance companies sellnational health policies that would be regulated by the Office ofPersonnel Management, the agency that oversees health plans offered tofederal workers.

Schumer has led a group of 10 Democraticsenators — five liberals and five centrists — that have been privatelydiscussing the public option.

The House approved a bill last month that includes a public option.

Sen.Ben Nelson, D-Neb., who has been among the most vocal critics of thehealth care legislation crafted by Reid, could not be reached forcomment. Earlier Tuesday, he expressed disappointment that the Senaterejected his abortion amendment.