Democrats press for HMO fees to fund health reform

WASHINGTON (Reuters) - Democrats on the tax-writing U.S. Senate Finance Committee are pushing health insurers to contribute up to $100 billion to the effort to overhaul the U.S. healthcare system being debated in the U.S. Congress.

Insurers are among the last segment of the health care industry that have not pledged to help fund the estimated $1 trillion reform drive that aims to rein in soaring costs and provide medical coverage to millions of the uninsured. Drugmakers have committed $80 billion and the hospital sector has offered $155 billion, both over a decade.

Senate Democrats Charles Schumer, Debbie Stabenow and Robert Menendez will outline their push on Wednesday, noting in a statement that their goal is to "make profit-hungry health insurers pay for part of the overhaul."

The lawmakers will call for the industry to agree to tighter regulation and fees that could raise between $75 billion and $100 billion over a decade, a congressional source said.

Earlier this week, a source familiar with talks between the industry and the finance panel said discussions were centered on savings of about $100 billion over a decade.

A spokesman for America's Health Insurance Plans, the industry's lobbying group, said insurers have already agreed to meaningful reforms such as guaranteed coverage for pre-existing conditions, but adding taxes would undermine affordability.

The biggest U.S. health insurers include UnitedHealth Group, WellPoint Inc. and Aetna Inc.

The senators are trying to put pressure on the industry and influence Senate Finance Committee Chairman Max Baucus, who is trying to craft a bipartisan bill.