As negotiations continue within the Senate Finance Committee, it appears the cost of the legislation has been greatly reduced. According to a new CBO estimate, the expense for the latest version of the bill is under $900 billion.
Sen. Max Baucus, who chairs the Finance Committee, wanted to keep the bill under $1 trillion, so this is an accomplishment. Many believe the bill will not contain a public option, instead favoring insurance cooperatives. It is unlikely to have an employer mandate but will require businesses to pay for government subsidies. It also will probably tax the so-called “Cadillac” insurance plans. It is unclear how liberals will react to these provisions.