BY CHARLES BABINGTON and JENNIFER LOVEN

Associated Press

WASHINGTON -- Even as liberals urge President Barack Obama to demand bold, far-reaching changes to the nation's health care system, the White House signaled openness Thursday to compromises that might attract moderate congressional Democrats as well as some Republicans.

Obama believes in "fundamental principles" about overhauling health care, top presidential adviser David Axelrod told The Associated Press, but "he's not dogmatic about how we get there."

Axelrod's comments did not definitively answer how hard Obama will push for the most ambitious parts of his proposal, including health insurance for virtually all Americans and a government-run plan to compete with private insurers. But his diplomatic tone was in keeping with the administration's approach of refusing to demand flatly several parts that are dear to Democratic activists who helped elect him.

Those are the type of conciliatory hints that frustrate many liberals. They fear Obama will dilute the bold health care proposals he campaigned for, even though Democrats control the House, Senate and White House. One group, the Progressive Change Campaign Committee, sent a mass-distributed e-mail quoting a Texas man saying he is "dropping out of political activism" because of his disillusionment with Obama over health care.

Also, former President Bill Clinton told Esquire Magazine that Obama should forge ahead with his health care proposals. "I wouldn't even worry about the Republicans," Clinton said. Obama is doing the right thing, he said, "even though he's jamming a lot of change down the system."

But many Democrats wonder if Obama really will jam a robust plan past overwhelming GOP opposition and the reservations of many centrist congressional Democrats eyeing their next election. Those Democrats will listen carefully for clues when Obama addresses a joint session of Congress next Wednesday night.

Axelrod's cautious answers Thursday might offer little comfort to those seeking forceful signs from the administration.

Asked if Obama might accept a Republican senator's idea for creating a public health insurance option only if private insurers prove unwilling or unable to meet certain affordability targets, Axelrod replied: "We need choice and competition within the pool that's created."

The plan has been floated by Republican Sen. Olympia Snowe of Maine. She would have nonprofit agencies offer health insurance only if private insurers could not cover 95 percent of the people in their regions with plans costing no more than about 15 percent of the person's or household's annual income.