Senate passes bill to extend health care coverage

In a 60-40 vote, the Senate voted today to expand health insurance coverage to more than 30 million Americans and to reduce the federal deficit by $132 billion during the next 10 years.

"Today, the Senate took another historic step toward our goal of delivering access to quality, affordable health care to all Americans," Harry Reid, D-Nev., Senate Majority Leader, said in a press release. The vote ended debate on Reid's abortion amendment presented on Saturday.

The bill includes revisions requiring health insurance plans for employers to spend at least 85 cents per dollar on medical costs. Also, the bill's Medicare payroll tax will be increased by 0.4% for people with an income of more than $200,000 and for couples with an income of more than $250,000.

With the bill, those who are not covered by work-based health care may choose which plans to buy. The bill would also stop the refusal of offering health insurance to Americans with pre-existing conditions; about 15 million Americans would gain coverage via expansion of Medicaid and the Children's Health Insurance Program.

The bill will have to be combined with the plan passed by the House of Representatives in November. The agreements between the House and Senate bills are as follows:

Both agree to subsidize insurance for a family of four making up to about $88,000 annually or 400% of the federal poverty level.
Both would eventually limit out-of-pocket expenses.
Both would prevent insurance companies from denying coverage for pre-existing conditions.
Insurers would be barred from charging higher premiums based on a person's sex or medical history.

Under the House bill, employers with a payroll of more than $500,000 must provide their employees with insurance or pay a penalty of up to 8%.

The next vote is scheduled for Tuesday morning, with the final one on Wednesday afternoon.