Here's a way out...
I think it's time we consider not one public option, but fifty--one for each state. Give the Republicans their tort reform, and credit them for wanting to allow people to purchase insurance across state lines (whatever, it's a token).
Instead of coops, create some sort of framework (being vague here because I've had half a bottle of Asahi and it's 11:02 PM and I'm really not much of a policy wonk) for allowing states to have their own public options and sell their plans to people out of state--much the way states allow out-of-staters to attend their public universities.
Thoughts, anyone?