Q+A: Next steps in U.S. Congress on healthcare

(Reuters) - Congress will return September 8 from a month-long recess to resume work on a landmark overhaul of the $2.5 trillion healthcare system that President Barack Obama has made his top domestic policy initiative.

There are three healthcare overhaul bills -- two in the Senate and one in the House of Representatives -- that seek to make major changes to insurance industry rules, expand coverage to nearly 46 million uninsured, and hold down costs, all without an increase in the federal deficit.

What's next for healthcare overhaul in Congress?

* While Senate Finance Committee leaders said they will be working during the break to iron out the final details of their version, no formal action will take place until September. Chairman Max Baucus, a Democrat, and senior Republican Charles Grassley have said the group of six committee leaders is near agreement on a bipartisan bill. The way to pay for the nearly $1 trillion 10-year plan is one of the final outstanding issues.

* House leaders have said they want to bring their health overhaul bill to a vote in September. To do this, they must meld changes in the legislation approved by three committees -- Ways and Means, Energy and Commerce and Education and Labor. No Republicans voted to approve any of the versions.

* The Senate Health committee approved its version of the bill with no Republican votes. The bill sets up a government-run insurance system to compete with private insurers, requires many employers to provide insurance for their workers or face penalties and requires individuals to buy their own insurance, with government subsidy if necessary.

What happens after committees act?

Having missed the early August deadline, each chamber now hopes to pass its version of the legislation in September.

While Democrats control a majority of seats in both chambers, this does not guarantee they will vote in concert with their leadership.

Once each chamber has passed its version of the overhaul, a small group of lawmakers would meet to iron out differences between the versions that have passed the House and Senate. Then, each chamber will vote on the compromise legislation.

If it passes, it would be sent to the White House for the president's signature into law. The president and congressional leaders have said they are aiming for enactment by the end of this year.

(Writing by Jackie Frank in Washington, editing by Donna Smith)