The short answer is: yes. Obama has the votes for health care reform, and some sort of comprehensive bill will pass this session. This bill will include some form of a public option, watered-down or not, and will also eliminate many insurance industry practices that kill Americans every day.
The GOP does not have the votes to stop this bill, and have made it clear that they are not willing to compromise or work together to craft this legislation. This is a major miscalculation by the Republican caucus. Health reform will pass, and Obama and the Democrats will get all of the credit - and extra kudos for standing up to the obstructionists.
Pretending that the American people are satisfied with the most expensive, dysfunctional health care system in the developed world is not doing the GOP any favors. After trying to gut social security, it is hilarious to see the right wingers pretending to defend Medicare. Health care reform is good for Medicare, because it will let the government take on patients who are not yet heavy health care consumers, which will help balance the rising costs for older patients.
We have never been closer to comprehensive health care reform - and it will happen before the end of this year. It has the support of the majority in Congress as well as the majority of Americans. The fact that the GOP is not on board is just more evidence that the right is out of touch with voters.