WRAPUP 3-US House Democrats vow healthcare plan by August

(For a TAKE A LOOK on healthcare, click on [ID:nN07323916])

* Obama voices his support for House Democrats' plan

* Most Americans will have health insurance

* Blue-ribbon commission to examine Medicare costs

* Employers required to provide coverage (Adds industry reaction, cost estimates, lawmakers)

By Donna Smith

WASHINGTON, July 14 (Reuters) - U.S. President Barack Obama's plans to overhaul the $2.5 trillion healthcare industry got a boost on Tuesday as Democrats in the House of Representatives offered sweeping legislation and predicted passage on schedule by August.

House Democratic leaders released their 1,000-page proposal which breaks new ground for the United States in healthcare by offering a government insurance option that would compete with private insurers.

A healthcare overhaul is considered central to the success of Obama's administration, and he has pressed the Democratic-led Congress to move swiftly on legislation to provide insurance coverage for all Americans, control soaring medical costs and improve quality of care. He hopes to sign the bill by October.

The insurance industry, which has objected to the government plan, in a statement said the bill "would dismantle employer-based coverage." The Pharmaceutical industry also said it opposed the House bill which it said would raise expenses for senior citizens.

Congressional budget analysts said the Democratic plan would reduce the number of uninsured by about 37 million and cost about $1.04 trillion over 10 years.

It is partially paid for with a planned tax on the wealthy that would raise $544 billion over 10 years, but vehement objections to the tax increase may force lawmakers to search for other ways to pay for it.

Savings from changes in the government-run healthcare systems for the poor and elderly are to bring in several hundred billion dollars more.

Obama and other Democrats have vowed that the healthcare overhaul will not add to the burgeoning U.S. deficit.

Healthcare reform failed in the previous Democratic administration of Bill Clinton. Since then millions of Americans have remained without health insurance, even as the country's spiraling healthcare costs per capita are the world's highest.

Obama praised the healthcare overhaul introduced by House Democrats, in a statement saying "this proposal controls the skyrocketing cost of health care by rooting out waste and fraud and promoting quality and accountability."