Obama gets closer to £519bn health insurance for all

Barack Obama's ambitious plans to reform US health care have cleared a major hurdle.

The US President's Democratic allies on the powerful Senate finance committee pushed through a 10-year, $829billion (£519billion) plan that is intended to provide health insurance to many of the 46million American people without cover.

The plan, which will represent the biggest ever shake-up in healthcare in America, still has several hurdles to clear before Mr Obama can sign it into the law books. But he hailed the vote as a "critical milestone" and said: "We are closer than ever before to passing healthcare reform but we are not there yet. Now is not the time to pat ourselves on the back...It is time to dig in further and get this done."

The healthcare package still has to be passed by the Senate and House before the millions without insurance can start to get some form of cover. The plan will also bring down costs for others who pay for private insurance. The finance committee voted 14-9 to support the plan with a solitary Republican, Olympia Snowe of Maine, siding with the Democrats.

She said of her vote: "When history calls, history calls," but warned that support could not be taken for granted in future votes. Her decision to cross party lines brought a personal message of thanks from the president. He said: "I want to particularly thank Senator Olympia Snowe for both the political courage and seriousness of purpose that she has demonstrated throughout this process."

But Republicans are gearing up for a fight to prevent the final bill becoming law. "It's going to cost us an arm and a leg," said Utah Senator Orrin Hatch.