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US Senate panel backs health bill Obama applauds health 'milestone'
(about 1 hour later)
The US Senate health committee has approved a bill to reform America's healthcare system, becoming the first congressional committee to pass a plan. US President Barack Obama has described the Senate health committee's vote to approve a healthcare reform bill as a "major milestone".
The legislation would expand coverage to nearly all Americans, at a cost of some $600bn (£365bn). And he urged Congress to pass a health reform bill by the beginning of August.
US President Barack Obama, who is to speak on healthcare later on Wednesday, has said he wants Congress to pass a healthcare bill by the end of 2009. The committee's bill would expand coverage to 97% of Americans, at a cost of some $600bn (£365bn).
Four other congressional committees are also working on reform bills. With its vote on Wednesday, the panel became the first congressional committee to pass a bill. Four other panels are also working on bills.
Party line vote 'Urgency'
Three House of Representatives committees announced a joint proposal on Tuesday, and will begin voting on it on Thursday.Three House of Representatives committees announced a joint proposal on Tuesday, and will begin voting on it on Thursday.
The Senate Finance Committee is also expected to vote on its bill soon.The Senate Finance Committee is also expected to vote on its bill soon.
Eventually, a combined bill will be put before both chambers for approval.Eventually, a combined bill will be put before both chambers for approval.
HEALTHCARE IN THE US 46 million uninsured, 25 million under-insuredHealthcare costs represent 16% of GDP, almost twice OECD averageReform plans would require all Americans to get insuranceSome propose public insurance option to compete with private insurersHEALTHCARE IN THE US 46 million uninsured, 25 million under-insuredHealthcare costs represent 16% of GDP, almost twice OECD averageReform plans would require all Americans to get insuranceSome propose public insurance option to compete with private insurers
Speaking alongside members of the American Nurses Association, Mr Obama praised the House committee's joint proposal, and the bill approved by the Senate Health, Education, Labour and Pensions (Help) Committee.
"Yesterday, the House introduced its health reform proposal. And today... the Senate Help Committee reached a major milestone by passing a similarly strong proposal for health reform," he said.
"This progress should make us hopeful," he added.
"But it shouldn't make us complacent. It should instead provide the urgency for both the House and the Senate to finish their critical work on health reform before the August recess."
The Senate health committee's bill would expand healthcare by requiring all Americans to take out health insurance, and providing subsidies to poorer families to help them pay for their coverage.The Senate health committee's bill would expand healthcare by requiring all Americans to take out health insurance, and providing subsidies to poorer families to help them pay for their coverage.
It is estimated that some 46 million Americans do not have health insurance, and a further 25 million are thought to have inadequate insurance.It is estimated that some 46 million Americans do not have health insurance, and a further 25 million are thought to have inadequate insurance.
'Public option'
The healthcare plans currently being considered in Congress are all attempting to expand coverage, while also reforming the system to prevent spiralling costs.The healthcare plans currently being considered in Congress are all attempting to expand coverage, while also reforming the system to prevent spiralling costs.
Healthcare in the US is costing $2.2tn a year, or 16% of the country's GDP, which is nearly double the OECD average. Healthcare in the US costs $2.2tn a year, or 16% of the country's GDP - nearly double the OECD average.
All of the plans under consideration would require Americans to take out insurance, and would bar insurance companies from denying coverage to people with pre-existing conditions.All of the plans under consideration would require Americans to take out insurance, and would bar insurance companies from denying coverage to people with pre-existing conditions.
The House committees' joint bill and the Senate health committee bills would also create a new publicly-run health plan, which they hope would compete with private insurers and drive down prices. The House committees' joint bill and the Senate health committee bills would also create a new, publicly run health plan, which they hope would compete with private insurers and drive down prices.
The senate finance committee bill is not expected to include a "public option", but would instead set up non-profit medical co-operatives to compete with private insurers. The Senate finance committee bill is not expected to include a "public option", but would instead set up non-profit medical co-operatives to compete with private insurers.
'Urgency'
The health committee voted along party lines, with 13 Democrats in favour and 10 Republicans opposed.The health committee voted along party lines, with 13 Democrats in favour and 10 Republicans opposed.
The chairman of the health committee, Senator Edward Kennedy, was not present for the vote, because he is being treated for brain cancer.The chairman of the health committee, Senator Edward Kennedy, was not present for the vote, because he is being treated for brain cancer.
Democrat Chris Dodd is acting as committee chairman in his absence.Democrat Chris Dodd is acting as committee chairman in his absence.
"This time we've produced legislation that by and large I think the American people want," he said."This time we've produced legislation that by and large I think the American people want," he said.
President Obama also welcomed the vote and urged other congressional committees to complete their bills.
"[This] should give us hope, but it should not give us pause. It should instead provide the urgency for the House and Senate to finish their critical work on health reform before the August recess."