Speaker Nancy Pelosi hailed the agreement as a "giant step forward" for the bill that Obama has made a test of his leadership. Advocates said it eventually would turn Medicare toward a program that rewards quality, rather than volume, as well as alter a system that pays doctors and other providers more in some regions of the country than others.
Yet the leadership all but abandoned a pledge to approve legislation before a monthlong vacation scheduled to begin at the end of next week. Maryland Rep. Steny Hoyer, the majority leader, left open the possibility that lawmakers would be held in session a day or more longer than scheduled to allow time for a vote. If not, "We have every intention of passing it by the fall," he said.
Separately, talks between the leadership and rebellious conservative and moderate Democrats demanding changes in the bill collapsed in acrimony during the day, then were revived with a handshake a few hours later.
In a further attempt to blunt criticism, Democrats circulated a breakdown claiming to show the benefits of the legislation in each of the nation's 435 congressional districts.
The maneuvering in Congress came as Obama met at the White House with Senate Majority Leader Harry Reid, D-Nev., and Sen. Max Baucus, D-Mont., the chairman of the Finance Committee, who has been trying for months to produce a bipartisan agreement.
"I said to him (Obama) what I say to everybody. We are ready when we are ready," Baucus later told The Associated Press in an interview.
Obama has worked energetically in public appearances, interviews, meetings with lawmakers and a prime-time news conference this week to advance legislation he wants to expand coverage to millions without insurance at the same time it restraints the growth of health care generally.
"I'm fully committed to making that happen," Obama said in an interview with The AP and other reporters Friday on health care.
Despite his efforts, Republicans have grown more emboldened as efforts in Congress stall, and some have suggested that defeat of the drive to remake health care could cripple his presidency, now in its sixth month.
Reid announced on Thursday that he was abandoning his timetable of passing legislation in the Senate before lawmakers begin their vacation, saying Republicans involved in the bipartisan negotiations had asked for more time. He said he expects Baucus to produce a bill within the next two weeks, though, and that the Finance Committee will vote on it in early August.
Across the Capitol, Pelosi virtually ordered a small group of Democrats from rural and urban areas to thrash out their differences Thursday night on Medicare issues that sound arcane, but matter enormously to individual lawmakers and likely will also lead to cuts in spending growth.
"This is just one piece of the puzzle, but we think it's an important piece," said Rep. Xavier Becerra, a Californian who played a key role in the discussions.
Lawmakers said the agreement would lead to changes in Medicare to try and reward doctors, hospitals and other providers for high-quality care. Critics argue the current system simply pays by volume
- compensating providers regardless of whether additional medical procedures contribute to better health care.