Senate passes bill extending health care to an additional 30 million Americans

In a 60 to 40 vote, the U.S. Senate moved 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,” Senate Majority Leader Harry Reid (D-Nev.) said in a press release.

The bill includes revisions requiring health insurance plans paid by employers to spend at least 85 cents per dollar on medical costs. The bill would also increase the Medicare payroll tax by 0.4% for people with incomes of more than $200,000 and for couples with combined incomes of more than $250,000.

Under the bill, those who are not covered by work-based health care may choose to purchase their own plans. The bill would also prevent companies from refusing to offer health insurance to Americans with preexisting conditions. In addition, an estimated 15 million Americans would gain coverage through the expansion of Medicaid and the Children’s Health Insurance Program under the measure.

The bill will need to be combined with a plan that was passed by the U.S. House of Representatives in November. Both plans would do the following:

subsidize insurance for a family of four making up to about $88,000 annually or 400% of the federal poverty level;
eventually limit out-of-pocket expenses;
prevent insurance companies from denying coverage for preexisting conditions; and
bar insurers from charging higher premiums based on gender 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, and a final vote is planned for Wednesday afternoon.