The US Senate has unveiled legislation aimed at overhauling healthcare provision by extending coverage to 94% of eligible citizens.

The $849bn measure will help reduce deficits by $127bn over the first decade and $650bn in the following ten years, according to the BBC.

Under the terms of the bill unveiled by the Senate majority leader Harry Reid, insurance would be made more affordable with subsidies to citizens in the lower income group.

People would also be able to buy government-sold insurance from 2014, which will help regulate the prices.

The law would require large companies to provide coverage to personnel and the costs would be met by the government cuts on future medicare spending.

US President Barack Obama had earlier got the health bill cleared in the House of Representatives and the Senate needs to pass its bill, following which the two bills will be reconciled and voted on again to frame a law, the BBC reports.