This is going to make some Republican (and conservadem) heads explode:

WASHINGTON — Democrats on a key Senate Committee outlined a revised and far less costly health care plan Wednesday night that includes a government-run insurance option and an annual fee on employers who do not offer coverage to their workers. The plan carries a 10-year price tag of slightly over $600 billion, and would lead toward an estimated 97 percent of all Americans having coverage, according to the Congressional Budget Office, Sens. Edward M. Kennedy and Chris Dodd said in a letter to other members of the Senate Health, Education, Labor and Pensions Committee. The AP obtained a copy.

The key thing to remember is that last time around, we were looking at a $1 trillion price tag over 10 years -- and millions without coverage.

This time we're looking at $600 billion over 10 years and 97% coverage.

What changed?

Two things. First, now the plan includes a public option, which is a far more cost effective way of expanding coverage than only subsidizing private insurance. Second, it contains a funding mechanism requiring employers who do not provide health insurance to pay an annual fee for each uncovered employee. Small businesses would be exempt from this fee.

Politically, this puts Republicans and Democratic opponents of the public option in a terrible position. They can't argue that the public option is too expensive. And they can't argue that it won't lower costs and expand coverage.

The only argument they have left is that private insurers won't be happy with the public option. To the extent that argument sways opinion, it will sway opinion in our direction.

::

Update (8:20AM) -- President Obama's comments on the new HELP legislation: