Baucus Releases $856B Health Care Plan

Sen. Max Baucus, D-Mont., released his healthcare reform package Wednesday that includes a healthcare cooperative and lower costs than other bills.

The Senate Finance Committee chairman's 223-page document -- the basis for committee consideration next week -- is estimated to cost about $856 billion, roughly $100 billion less than other four other proposals in Congress.

The costs would be offset by reductions in Medicare spending and by new revenue from an excise tax on health insurance companies that sell plans costing more than $21,000 for families and more than $8,000 for individuals, The Hill reported. Insurers, pharmaceutical companies, medical-device makers, clinical laboratories and hospitals would also pay fees.

Baucus's proposal would require most people to get some form of insurance or be fined. The legislation also would establish state-based health insurance exchanges where individuals and small-business employees could purchase coverage.

Medicaid would be expanded to cover people up to 133 percent of poverty level, the Washington publication said.

Health insurance reforms also are part of the Baucus plan, which would bar companies from excluding people with pre-existing medical conditions or based on health status. It also enhances prevention and wellness services for people enrolled in Medicare and Medicaid.

However, Baucus's markup splits from the three House and one Senate measures because it doesn't include a government-run public insurance program. Instead, the bill has a proposal to create member-owned, non-profit healthcare cooperatives.