Washington » Utah Sen. Orrin Hatch maintained his strong opposition to any sort of new government-managed health plan Monday, the same day Senate Majority Leader Harry Reid announced that the Senate's reform measure would include a so-called public option.

Reid said the bill would allow states to opt out of the government-sponsored insurance, which would compete against private companies in the health-insurance market.

President Barack Obama applauded the move. Hatch slammed it.

"Simply putting new window dressing on the failed idea of a government plan," Hatch said, "is absolutely the wrong way to address a critical national issue that affects every American life and every American business."

Most Democrats, led by Obama, say the public plan is necessary to ensure competition in states dominated by one or two insurance companies and ultimately would drive down costs. But Republicans, including Hatch, argue the public option is the beginning of a federal takeover of the insurance industry.

"Make no mistake about it," Hatch said, "once this entitlement has been implemented, it will be impossible to dismantle."