The version of health care reform legislation drafted by the Senate Finance Committee would levy a tax on insurance companies that would be equal to 40 percent of total premiums paid on insurance plans costing more than $8,000 annually for individuals and $21,000 for families.

Under the Senate Finance plan, retirees over age 55 and people in high-risk professions would be allowed to have somewhat more valuable plans before they're taxed.

That is different than the revenue-raising proposal favored by the House. Legislation being drafted in the House would raise income taxes on individuals earning more than $500,000 a year and households making more than $1 million.

As envisioned by Sen. Charles Schumer, D-N.Y., the Senate bill would include a provision allowing the federal government to set up an insurance plan that he believes would create a level playing field with private insurers in states, such as having the same negotiated rates with providers and the same requirements.

It will be different than the one expected to be unveiled by House Democratic leaders later in the week.

The House version of a public option would require the secretary of the Department of Health and Human Services to negotiate rates with providers. The House bill will also include a provision expanding to cover anyone making 150 percent of the
federal poverty level or less, insurance industry sources said.

According to Ira Loss, an analyst at Washington Analysis, Washington, D.C., the Senate leadership is aiming to have a bill ready to send to the Congressional Budget Office for a cost evaluation by midweek.

According to Mr. Loss, the public option will likely be some version of a proposal by Sen. Olympia Snowe, R-Maine, which envisions a public option with a trigger. Her proposal would be twinned with a proposal from Senator Tom Carper, D-Del., that would allow states to opt out of the federal plan and create their own alternatives to private plans.

Once the Congressional Budget Office receives the bill, it is expected to take a week to score it, Mr. Loss said.

Republicans have asked that the Senate be given 72 hours after the CBO evaluation to review the bill before it goes to the Senate floor, but it is unclear whether this request will be granted, he said.

He expects the House leadership is hoping to finish its health care reform legislation and unveil it by the end of the week so as to bring it to the House floor by November 6.