Sept. 27 (Bloomberg) -- Democratic presidential candidates, already criticized by Republicans for moving too far toward a government-run health system, are being urged by advocacy groups and lawmakers to go the rest of the way.

With backing from labor unions, 83 Democrats in the U.S. House are sponsoring a measure to create a national health plan, abolish the role of private insurers such as market leader United HealthGroup Inc. and second-place rival WellPoint Inc. and make all hospitals nonprofit, supporters said today.

The three leading Democratic presidential candidates largely agree on plans to preserve private insurance, provide tax incentives to make insurance more affordable and offer the uninsured a government option like the Medicare program for the elderly. Advocates of a ``single-payer'' system fully run by the government say they are gaining public support.

``When you build up a head of steam on an issue, people will do what they need to do to get re-elected or to get that campaign cash in the coffers,'' said Representative John Conyers Jr., a Democrat from Detroit, at a press briefing today. ``All we have to do is build up support for it, and they'll come around. Many are secretly for it.''

Conyers and allies, led by the 80,000-member California Nurses Association of Oakland, California, and the 14,000 members of Chicago-based Physicians for a National Health Plan, say insurers take 31 percent of revenue for administration and profit.

Ida Hellander, executive director of the physicians' group, later said that figure should be 15 to 30 percent, depending on the year and the company. That compares with 3 percent for Medicare, she said.

TV Commercials

Medicare, with a budget of $440 billion this year, provides benefits to 43 million elderly and disabled people.

The doctor and nurse groups aired TV commercials yesterday challenging the health plans of the Democratic frontrunners, Senator Hillary Clinton of New York, former Senator John Edwards of North Carolina and Senator Barack Obama of Illinois. The ads ran only in New England and the Washington area during MSNBC's broadcast of a Democratic candidates' debate at Dartmouth College in New Hampshire.

In one of the commercials, a woman laments that she may go into bankruptcy because of insurance company penny-pinching over her benefits.

``It's not good enough just to be better than the Republicans on this,'' she tells a life-size cardboard photo of Obama. ``We know Medicare works for seniors. So why can't we have single-payer, guaranteed health care for every American, Senator Obama?''

Talking to Photos

Two other 30-second spots showed citizens addressing photos of Clinton and Edwards. Spokesmen for each of the campaigns declined to comment on the commercials.

The single-payer advocates cited polling data they said showed most Americans are dissatisfied with rising health insurance costs and want ``major'' and ``fundamental'' changes. Supporters say insurance companies have a goal of not covering the sick.

The Democratic presidential candidates have taken heat from Republican hopefuls as well. Former New York Mayor Rudy Giuliani and former Massachusetts Governor Mitt Romney have said a Democrat in the White House would bring ``socialized medicine'' and higher taxes. Republicans have called for tax incentives to help individuals buy their own policies.

Clinton's Pledge

Clinton, who leads in polls for the Democratic nomination, has said she still has ``scars'' from her unsuccessful effort to revamp health care as First Lady in 1994. This year, Clinton has said her proposal won't require any new government agencies and Americans could keep their current health plans if they wish.

Employers, companies and individuals will spend about $776 billion on health insurance in 2007, up 56 percent since 2001, according to the U.S. Centers for Medicare and Medicaid Services. That will reach $1.4 trillion in 2016, the agency says.

America's Health Insurance Plans, a Washington trade group representing 1,300 insurance companies, is pushing for what it calls a ``public-private partnership'' to provide coverage for everyone while preserving its members' role.

``The Medicare system faces tremendous burdens and it is not providing the benefits that the over-65 population needs and deserves,'' said Mohit Ghose, the group's spokesman. ``Some candidates want to discuss building on what works. Our proposal not only will improve access but has a huge component on quality improvement.''

$10.6 Billion

In 2006, the five biggest U.S. health insurers reported combined net income of $10.6 billion on revenue of $188.4 billion as the number of uninsured reached a record.

``The insurance industry's culpability in the health-care crisis is irrefutable,'' said Todd Main, campaign director of the Physicians for a National Health Plan. ``We pay the most and have lower outcomes. As a business model, it's failing consumers, and as a result it's hurting businesses across the country.''

To contact the reporter on this story: Avram Goldstein in Washington at agoldstein1@bloomberg.net.

Last Updated: September 27, 2007 15:39 EDT