U.S. Senate opens work on healthcare bill

By Donna Smith and John Whitesides

WASHINGTON (Reuters) - The U.S. Senate began work on a sweeping healthcare overhaul on Monday, with senators on both sides pouncing on findings in a nonpartisan budget report on insurance premiums to bolster their arguments.

With the debate expected to last up to three weeks, Senate Democratic leader Harry Reid warned senators they would work on weekends if necessary to hammer out compromises on issues like a government-run insurance plan, abortion coverage and holding down costs.

"The next few weeks will tell us a lot about whether senators are more committed to solving problems or creating them," Reid said.

In a report that gave ammunition to both sides, the Congressional Budget Office estimated on Monday that the 70 percent of Americans who receive insurance through employer-sponsored plans would see little change or slight reductions in their insurance premiums by 2016.

Those who buy coverage independently could see premiums rise by 10 percent to 13 percent by 2016, although the federal subsidies given to lower-income individuals to help them purchase coverage would reduce the actual costs for more than half of that group, the CBO said.

The higher premiums would be incurred in part because they would get more comprehensive coverage, it said.

"The analysis we received today indicates that whether you work for a small business, a large company or you work for yourself, the vast majority of Americans will see lower premiums than they would if we don't pass health reform," said Democrat Max Baucus, chairman of the Senate Finance Committee.

Senate Republican leader Mitch McConnell said Americans do not want the healthcare bill to pass and the CBO report showed why. "A bill that's being sold as a way to reduce costs actually drives them up," McConnell said.