Click here to read the bill

By John Fritze, USA TODAY

WASHINGTON - The Democratic leader of a bipartisan group of senators released a long-awaited proposal Wednesday to revamp the nation's health care system - an $856 billion measure that would require everyone in the USA to purchase health insurance by 2013.

The outline, released by Sen. Max Baucus, D-Mont., is the product of months of behind-the-scenes negotiations and is the only one of three versions that had significant input from Republican lawmakers.

Click here to read the bill

But the measure has not received Republican support.

Known as the "Gang of Six," the group of three Democrats and three Republicans was the only bipartisan effort underway to address President Obama's top priority: Increasing accessibility to health care and lowering cost.

The group included Republicans Chuck Grassley of Iowa, Mike Enzi of Wyoming and Olympia Snowe of Maine, and Democrats Kent Conrad of North Dakota and Jeff Bingaman of New Mexico.

Baucus said he would continue to work for Republicans' support for the bill.

"The cost of America's broken health care system has stretched families, businesses and the economy too far for too long," Baucus said in a statement Wednesday. "For too many, quality, affordable health care is simply out of reach."

In addition to requiring everyone to purchase health insurance, the measure would expand Medicaid to any individual earning less than $14,400 a year.

For low- and middle-income families making more than that amount, tax credits would be available to help them purchase insurance from private companies. The measure does not include a controversial government-run insurance program but instead would provide for membership-run co-ops that could compete against for-profit insurers.

The so-called "public option" was a major sticking point with Republican lawmakers, including Senate Minority Leader Mitch McConnell of Kentucky.

McConnell said Wednesday that the Baucus proposal still represents too much government involvement in health care, even without the public option.

"This partisan proposal cuts Medicare by nearly a half-trillion dollars and puts massive new tax burdens on families and small businesses to create yet another thousand-page, trillion-dollar government program," McConnell said in a statement. "Only in Washington would anyone think that makes sense, especially in this economy."

Consumers would be able to compare plans and shop for insurance through "exchanges." Insurance companies would be prohibited from denying coverage because of pre-existing conditions or drop coverage once policyholders became sick.

The bill would be paid for with $507 billion in cuts to government health programs and $349 billion in new taxes and fees.

The $856 billion, 10-year cost of the proposal is less than the price tags associated attached to other versions of health care legislation pending in the House and Senate.

In the end, Snowe may be the only Republican to support the bill, though she wasn't ready to commit her support Tuesday night.

"Hopefully at some point through the committee process, we can reach an agreement," she said.

Contributing: Associated Press

Highlights of the proposal presented to the Senate Finance Committee by its chairman, Sen. Max Baucus, D-Mont.:

Would prohibit health insurers from denying coverage for pre-existing conditions;

Would let health insurers vary premiums based on tobacco use, age and family composition;

Would establish state-based health insurance exchanges to help consumers compare plans;

Would require U.S. residents to buy insurance or face yearly fine up to $3,800 per family;

Would fund a new Consumer Operated and Oriented Plan (CO-OP) to encourage creation of non-profit, member-run insurance companies;

Would impose annual fees on insurance companies ($6 billion), medical device manufacturers ($4 billion), pharmaceutical manufacturers ($2.3 billion) and clinical labs ($750 million).

Source: Senate Finance Committee