SENATE FINANCE C'TEE APPROVES HEALTH BILL

In a setback for US President Bill Clinton, the Senate Finance Committee has approved health reform legislation that would leave millions of Americans without insurance coverage. The proposed bill offers no universal coverage and no employer mandate.

In considering dozens of amendments, the Committee rejected a new 1% payroll tax on employers with more than 500 workers but approved conscience amendments on abortion which would allow employers to deny such coverage to workers. Also included in the vast scope of the bill is long-term care for the disabled.

At the core of the proposed legislation is a series of changes to insurance law which would make coverage more widely available, backed up by subsidies to the poor and tax breaks for some workers to encourage them to buy coverage. It would generally require insurance companies to cover everyone seeking a policy, regardless of their condition. They would also have to offer plans that meet government criteria for both physical and mental health problems though these provisions had been weakened during the Committee voting. Subsidies would be provided for those whose incomes do not exceed 200% of poverty, and tax breaks would be offered for the self-employed and workers whose employers do not pay for health coverage.