Democrats in America have outlined a reformed and cheaper version of the health insurance plan for U.S citizens.

The new policy includes a government-run insurance option and a yearly fee on employers who do not offer coverage to their workers.

The proposal carries a 10 year price tag, of slightly more than $600 billion. The Senators stated that the scheme will hopefully encourage 97% of all American’s to purchase cover.

The revised version calls for a $750 annual fee on employers for each full-time worker not offered insurance via their job. The fee would be set at $375 for part-time workers. Businesses with less than 25 people will be excluded.

At the core, all the bills would require insurance companies to sell coverage to any applicant, without charging higher premiums for pre-existing medical conditions.

Poorer individuals and families would qualify for government subsidies to help with the cost of coverage.

The government's costs would be covered by a combination of higher taxes and cuts in projected Medicare and Medicaid spending.

Two Democrats stated: “We must not settle for legislation that merely gestures at reform. We must deliver on the promise of true change.”