Obama seeks to regain intiative on healthcare

(For a take a look on healthcare, click on [ID:nN07323916])

* Obama says debate, disagreements ahead on health issues

* Leading Democrat says health overhaul on track in Senate

* Health insurers discuss $100 billion savings

By Steve Holland and David Alexander

WASHINGTON, July 13 (Reuters) - A combative President Barack Obama on Monday sought to regain the initiative on overhauling the U.S. healthcare system after legislation slowed down in the U.S. Congress while he was abroad last week.

Key lawmakers on Sunday said the legislation, Obama's top priority, was unlikely to be passed by Congress by the time they go on their August vacation, amid a debate among Democrats over how to pay for its $1 trillion cost over 10 years.

A higher income tax on the wealthy was an option offered on Friday by an influential House of Representatives Democratic lawmaker, but it drew skepticism.

Obama, just back from a week-long trip to Europe and Africa, used a Rose Garden ceremony to make his case for the healthcare revamp and to tell his critics they should not write him off too soon on the subject.

"I just want to put everybody on notice, because there was a lot of chatter during the week that I was gone: We are going to get this done. Inaction is not an option."

"For those naysayers and cynics who think that this is not going to happen, don't bet against us. We are going to make this thing happen," he said.

Senate Majority Leader Harry Reid said on Monday the goal was unchanged. "We'd like to see these bills on the floor in July. And we hope our Republican colleagues will work with us to achieve that goal," he said on the Senate floor.

Some political commentators have raised the question as to whether Obama should get more directly involved in healthcare negotiations.

Committee leaders in the House of Representatives planned to introduce a healthcare overhaul measure on Monday and consider amendments later in the week, even as they search for ways to fund the program.

Representative Charles Rangel, head of the House Ways and Means Committee, said the bill would include a tax on Americans earning more than $350,000 per year that would raise $540 billion over 10 years. The tax would begin in 2011 and have higher rates at the $500,000 and $1 million income levels.

This higher tax is expected to be opposed in the Senate.