WASHINGTON - - Senate Finance Committee chairman Max Baucus released Wednesday the crucial moderate alternative in the struggle to refashion America's health care system, a $856 billion bill that includes a mix of sweeping new insurance regulations but no government-run plan.
Under his proposal, nearly everyone would be required to obtain coverage or pay a penalty. Insurers, in turn, would not be able to deny policies to people with pre-existing medical conditions or to cancel coverage after people got sick. And the federal government would provide hundreds of billions of dollars in subsidies to help lower-income people buy coverage.
The legislation fell short of Baucus' goal of charting a course that could bring Republicans and Democrats together for the most ambitious overhaul of the health system since the 1960s.
Three key GOP lawmakers who had been working with the Montana Democrat for months have rejected his bill. The proposal also drew fire from liberals who insist that any overhaul must contain a "public option" insurance plan administered by the government.
But the Baucus proposal still might serve as a template for a final Senate bill because it was designed to attract moderate and conservative Democrats.
"There are some on both sides of the aisle who think I have gone too far," Baucus said in a news conference. "It's an effort to get balance. It's an effort to get the bill passed."
"This," he added, "is probably one of the largest pieces of social legislation in American history since the Depression."
Responding to widespread concern about the effect on the federal budget deficit, Baucus produced a bill that would cost significantly less than a $1 trillion-plus version pending in the House. It also would impose less stringent requirements on businesses.
All that drew praise from centrist Democrats whose support has been elusive, especially those from relatively conservative states.
"It's a strong step in the right direction," said Louisiana Democratic Sen. Mary Landrieu.
But liberals argued Wednesday that the Baucus bill did not provide generous enough subsidies for families of modest means and did not stop insurance companies from charging exorbitant premiums.
"I continue to be concerned about affordability for hard-working, middle-class families," said Sen. Ron Wyden, D-Ore. "A lot of them can't get by now. And the prospect of paying significantly more ... or being penalized, that is not going to meet their test of health care security."
