Health Bill would reduce high US budget deficit

President Barack Obama's plan to overhaul the US health care system got a boost on Wednesday when congressional budget experts said it would reduce the country's ballooning budget deficit.

According to the non-partisan Congressional Budget Office, the healthcare reform plan currently before the Senate Finance Committee would reduce the budget deficit by $81 billion over 10 years at a total cost of $829 billion.

That finding was in line with President Obama's pledge that his health reform push will not increase budget deficits by "one dime".

The legislation that would extend health insurance to the around 46 million people who currently lack coverage in the United States would also likely lead to "continued reductions in federal budget deficits, ,the CBO added.

Senator Max Baucus, who chairs the panel and has played a key role in designing the legislation, hailed the findings as he seeks to obtain the backing of at least one Republican, Senator Olympia Snowe, and convince centrist Democrats who remain undecided.

"Our balanced approach to health reform has paid off yet again," he said on the Senate floor.

"This legislation is a smart investment on the federal balance sheet, and it's an even smarter investment for American families, businesses and our economy".

Under the proposal, 94 per cent of non-elderly US residents would have insurance coverage, up from the current 83 per cent, according to the CBO.

That translates to nearly 30 million more US residents covered by insurance. The findings paved the way for a vote in the Senate Finance Committee, which would then reconcile its measure with the Health Committee before a full Senate vote.

A total of five different versions of healthcare reform are competing for influence in Congress, with weeks of haggling and horse-trading expected before any final version of the Bill comes to a vote.

President Obama, whose political viability is on the line with his health care push, and lawmakers in his Democratic Party are seeking a final vote before the end of the year.

Republicans, who have warned the Bill could raise costs and increase the budget deficit, had required the budget estimate before they cast a vote.

Republican Senate Minority Leader Mitch McConnell labelled the draft legislation as "partisan" and warned it will "never see the Senate floor since the real Bill will be written by Democrat leaders in a closed-to-the-public conference room somewhere in the Capitol."

The "real Bill", he said, "will be another 1,000-page, trillion-dollar experiment that slashes a half-trillion dollars from seniors' Medicare, raises taxes on American families by $400 billion, increases health care premiums and vastly expands the role of the federal government in the personal health care decisions of every American".

The CBO found the Bill would "significantly expand" eligibility for Medicaid, the insurance programme for the poor, and "substantially reduce" increases in payment rates for most services provided by Medicare, a health plan for seniors.