WRAPUP 1-US Democrats say health bill to cut deficit

WASHINGTON, March 18 (Reuters) – Democrats in the House of Representatives on Thursday predicted weekend passage of a sweeping healthcare overhaul they said would cut the U.S. deficit over the next two decades and dramatically expand insurance coverage.

House Democratic leaders finished work on a package of changes on President Barack Obama’s top domestic priority that they said would cut the deficit by $130 billion over 10 years and more than $1 trillion over the next decade.

The final bill, estimated to cost $940 billion over 10 years, will be posted online later on Thursday along with cost estimates from the Congressional Budget Office. House leaders presented the final package to Democrats at a morning caucus.

After weeks of wrangling over the package, the cost estimates hit the budgetary targets laid out by Obama last month.

“It took some time but we are very pleased,” House of Representative Speaker Nancy Pelosi told reporters after the meeting. “There are even more savings than the Senate bill.”

The changes are meant to ease concerns by Obama and House Democrats about the Senate’s version of the bill. They would include expanding subsidies to make insurance more affordable and more state aid for the Medicaid program for the poor.

They also would eliminate a controversial Senate deal exempting Nebraska from paying for Medicaid expansion costs, close a “doughnut hole” in prescription drug coverage and raise the threshold on a tax on high-cost “Cadillac” insurance plans.

“I don’t think I’d call it a Cadillac tax now,” said Henry Waxman, chairman of the House Energy and Commerce Committee. “I’d call it a Rolls Royce.” ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Take a Look on healthcare [ID:nHEALTH] ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

The overhaul would extend coverage to more than 30 million uninsured Americans and ban insurance practices like refusing coverage to those with pre-existing medical conditions.

Democrats said they expected to put together the 216 votes needed for passage of the bill. The final vote, which is likely to be close, is now expected on Sunday.

Under the procedure planned for passing the overhaul, the House would vote this weekend on whether to approve the Senate’s bill. The changes sought by Obama and House Democrats would move in a second separate bill.

“I think we’ll see a lot of people’s votes come together in the next few days,” Representative Robert Andrews said.