by Caitlin Kenney

House Democrats have unveiled their bill for overhauling health care. The total cost over 10 years comes in at $894 billion, just under the $900 billion limit President Obama asked for. The bill is not expected to add to the federal budget deficit for at least 20 years, thanks to new taxes on high income earners and a series of cuts to Medicare payments. The Washington Post reports:

A previous version of the House bill carried an estimated cost of $1.04 trillion over 10 years, but House negotiators were able to lower the price tag — in part by expanding Medicaid coverage to a broader slice of the population, the equivalent of all individuals who earn about $16,200 per year. The original House legislation had sought an increase to 133 percent of the federal poverty level, or about $14,400 per year, the same level proposed in the Senate bill.

The adjustment reflects findings by congressional budget analysts that covering the poor through Medicaid — which pays providers far less than Medicare — is much more cost-effective than offering subsidies for private insurance policies, something the bill would provide to middle-class individuals who lack access to affordable coverage through their employers.

The main revenue sources in the House bill include a surcharge on wealthy taxpayers and changes to Medicaid and Medicare worth about $500 billion in cost savings over 10 years, according to the nonpartisan Congressional Budget Office

Under the bill, individual taxpayers making more than $500,000 and couples making more than $1 million would have to pay a 5.4 percent surtax. House leaders hope to vote on the bill by the end of next week.