FACTBOX: Major differences in Senate, House healthcare bills

(Reuters) - The U.S. Senate on Thursday passed its version of sweeping healthcare overhaul legislation that aims to extend coverage to some 30 million uninsured Americans.

The bill resembles legislation passed by the U.S. House of Representatives on November 7, but there significant differences that have to be worked out by the two chambers before a bill can be delivered to President Barack Obama for his signature.

Here is a detailed summary of the major differences between the two bills.

INSURANCE MARKET REFORM

Both the House and the Senate bills would mean substantial insurance market reforms that would bar insurers from excluding people for pre-existing conditions and prevent them from arbitrarily dropping policy holders.

Both bills create insurance exchanges where small businesses and individuals without employer-sponsored health benefits can shop for coverage. The Senate bill creates state-based exchanges, the House bill would create a national exchange but allow states to operate state-based exchanges if they meet minimum requirements.

The House bill would allow insurers to charge older people up to twice the amount they charge younger policy holders. The Senate bill would allow insurers to charge older people up to three times what they charge younger people.

The Senate bill would allow young people to stay on their parents'' insurance plans until the age of 26. The House provides for such dependent coverage until the age of 27.

Both bills place limits on how much insurers can spend on administrative costs and profits. The Senate bill requires insurers to spend at least 85 cents of every premium dollar on medical care in small group markets and 80 cents in large group markets. The House bill requires insurers to spend at least 85 percent of premiums on medical care.

PUBLIC OPTION

The House bill includes a new government health insurance plan that would compete with private insurers on the exchange. The public option would have to meet the same coverage requirements as private insurers.

The Senate bill has no public option. However it requires the U.S. Office of Personnel Management, which oversees the health policies for 8 million federal workers and their families, to contract with private insurance companies to offer policies on the exchanges.

Both bills also provide for creation of nonprofit cooperatives to provide medical coverage to members.