The Democratic officials also said individuals would generally be required to purchase affordable insurance if it were available, and face penalties if they defied the requirement.
The officials spoke on the condition of anonymity, saying they were not authorized to discuss the private negotiations involving key Senate Democrats and the White House. They also stressed that no final decisions have been made on the details of the measure, expected to reach the Senate floor in about two weeks.
In a separate development yesterday, Senator Chuck Schumer, Democrat of New York, a leading advocate for a government-run insurance option, said the proposal is close to gaining the 60 votes needed to pass the Senate and probably will be in the overhaul legislation.
Speaking on NBC’s “Meet the Press,’’ Schumer said a version of the public option that is gaining wide support would allow states to choose not to participate in a government-sponsored program.
The health care overhaul bill is taking shape in private talks led by Harry Reid, Democrat of Nevada and the Senate majority leader. It is designed to answer President Obama’s call to expand coverage to millions who lack it, ban insurance industry practices such as denial of coverage for preexisting medical conditions, and slow the growth in medical spending nationally.
Like a companion measure in the House, it would create a new federally regulated marketplace, termed an exchange, in which individuals and families could purchase insurance sold by private industry. Federal subsidies would be available to help those at lower incomes afford the cost.
Subsidies would also be available to smaller businesses as an incentive for them to provide insurance.
Nominally, Reid’s task is to meld bills already passed by the Senate Finance Committee and the Senate Health, Education, Labor and Pensions Committee. In reality, however, he has a virtual free hand in coming up with a measure, with a goal of amassing a 60-vote majority to overcome a threatened Republican filibuster.
