CQ Today (2/3, Armstrong, Wayne) reports that Democratic leaders "have told rank-and-file lawmakers that they have no solution yet" to passing healthcare reform, but they "are working with the White House to salvage" the legislation. "House and Senate leaders appear to be struggling to reach agreement on which side would move first with a package of changes to the Senate bill (HR 3590) that would be passed through the budget reconciliation process. Neither side appears to want to be the one initiating that process, though [Senate Majority Leader Harry] Reid (D-NV) and his aides have argued that it is up to the House to act first."

        On Tuesday, Roll Call (2/3, Dennis) reports, House Majority Leader Steny Hoyer (D-MD) was asked about a statement he made last week that "Democrats would like to decide on a path forward sometime this week." He admitted, "Did I say that. ... I was in error." He added, "I anticipate making a decision just as soon as the way forward is clear."

        Fox News (2/3, Pergram) adds that "Hoyer indicated the Democratic brain trust was considering a number of options, ranging from a conference committee to resolve differences in the health bill, to using special budget rules that would allow Democrats to bypass the supermajority requirement to quash Senate debate. He also said it was possible that Democrats could break the broader bill into smaller pieces of legislation."

        First Lady urges Congress to pass healthcare reform. NBC Nightly News (2/2, story 7, 0:40, Williams) noted that "in an interview to air on 'The Today Show,' Matt Lauer talked to the First Lady about...the overall effort to get healthcare reform passed." The First Lady was shown saying, "This is the right thing for the country. It's hard. It's scary. It's confusing. But I hope for our country's sake we can do it now and not wait until things get worse. I mean, I agree with the President when he said we don't have the option to do nothing. He's right."

        Rangel says work has begun on compromise bill. The AP (2/3, Fram) reports that Rep. Charles Rangel (D-NY) indicated that "leading lawmakers hoping to revive President Barack Obama's stalled health care overhaul have started writing a compromise bill, but it's unclear when the legislation will be ready for votes." He expects that "the measure would change the massive Senate-approved health bill to what bargainers from the White House, Senate and House agreed to last month." The AP calls Rangel's comments "the first concrete sign that Democrats will try enacting major health legislation in the wake of the Republican upset in a Massachusetts special election that cost them their crucial 60th Senate seat."