WASHINGTON — Senate Finance Committee Chairman Max Baucus (D-Mont.) released the crucial moderate alternative Wednesday in the struggle to refashion America's healthcare system, a $856-billion bill that includes a mix of sweeping new insurance regulations but no government-run plan.
Under his proposal, nearly everyone would be required to get coverage or pay a penalty. Insurers, in turn, would not be able to deny policies to people with preexisting medical conditions or to cancel coverage after people got sick. And the federal government would provide hundreds of billions of dollars in subsidies to help lower-income people buy coverage.
The legislation fell short of Baucus' goal of charting a course that could bring Republicans and Democrats together for the most ambitious overhaul of the health system since the 1960s.
Three key GOP lawmakers who had been working with Baucus for months have rejected his bill. The proposal also drew fire from liberals who insist that any overhaul must contain a "public option" insurance plan administered by the government.
But the Baucus plan still could serve as a template for a final Senate bill because it was designed to attract moderate and conservative Democrats.
"There are some on both sides of the aisle that think I've gone too far," Baucus said in a news conference.
"This is . . . an effort to get balance again," he added. "It's an effort to get a bill that can pass."
He called it "probably one of the largest pieces of social legislation in American history since the Depression."
Responding to widespread concern about the effect on the federal budget deficit, Baucus produced a bill that would cost significantly less than a $1-trillion-plus version pending in the House. It would also impose less-stringent requirements on business.
All of that drew praise from centrist Democrats whose support has been elusive, especially those from relatively conservative states.
"It's a strong step in the right direction," said Sen. Mary L. Landrieu (D-La.).
But liberals argued Wednesday that the Baucus bill did not provide generous enough subsidies for families of modest means and did not stop insurance companies from charging exorbitant premiums.
"I continue to be concerned about affordability for hardworking, middle-class families," said Sen. Ron Wyden (D-Ore.). "A lot of them can't get by now. And the prospect of paying significantly more . . . or being penalized -- that is not going to meet their test of healthcare security."
