WASHINGTON  All Americans would have access to “essential health care benefits,” with no annual or lifetime limits, employers would have to contribute to the cost of coverage and the government would create a new public insurance program under sweeping legislation drafted by Senator Edward M. Kennedy and circulated Friday.

Under the legislation, the government would subsidize premiums for people with incomes up to 500 percent of the poverty level ($110,000 for a family of four), and private insurers would have to pay out a specified percentage of their premium revenues in benefits.

The new government-run program would pay doctors and hospitals at Medicare rates, plus 10 percent.

Mr. Kennedy’s bill would also establish a new insurance program to provide home- and community-based care for 10 million people with severe disabilities.

The bill gives no indication of how Mr. Kennedy would pay for his proposals, other than by requiring contributions by individuals and employers.