To be precise, I don't think Billo is endorsing the public option in this clip. In fact, he up and says that the public option "is done... it's not going to happen" right at the beginning. What O'Reilly is actually endorsing here is the exchanges, and the coverage subsidies that would allow people to buy insurance on the exchange. He's endorsing the architecture of the Obama health care plan. On the right that is seen as a government takeover, so if you judge it by their take, he endorsed a public option. But he didn't.
I'll take the endorsement of the exchanges, however. And I'm not surprised. It's fundamentally a Republican, free-market idea.