House panels pass health bill, critics slam cost

The Senate Finance Committee is facing the most difficult task next week because it has not agreed on ways to pay for the expanded healthcare despite a hoped-for August 8 vote by the full Senate on the bill.

HEALTHCARE COSTS WORRY MANY

Although most Americans have insurance partially paid for by their employers, insurance is a major worry for many, especially during a recession when a job loss could mean loss of insurance coverage.

Studies have shown that limits on coverage and rapidly rising medical costs have contributed to half the personal bankruptcies and 1.5 million of home foreclosures each year. This is despite the highest spending per capita on health care of any country.

The House Ways and Means Committee agreed on legislation on Monday that would raise $544 billion over 10 years to pay for the plan's estimated $1 trillion cost in part by raising taxes on the wealthy. Critics say that measure would harm small businesses who fall into this tax category.

A second panel approved legislation that will guarantee no American can be turned down for health insurance. It will also require most employers to contribute to workers' insurance or face a penalty.

Three Democrats and all Republicans on both panels voted against the bills.

Moderate Republican Senator Olympia Snowe, who has been central to the Senate talks, has urged Obama to be patient and said it was "overly ambitious" to set an August deadline for Senate passage.

(Additional reporting by Donna Smith, Kim Dixon and Lisa Richwine, editing by Philip Barbara)