Late Wednesday night, Majority Leader Harry Reid (D-Nev.) unveiled the Patient Protection and Affordable Care Act, legislation that combines S. 1679, the health bill approved by the Senate Committee on Health, Education, Labor and Pensions (HELP) and S. 1796, the Senate Finance Committee bill.

There is a great buzz going around the AAHSA building today, as the combined bill includes the Community Living Assistance Services and Supports (CLASS) Act , which would create a national insurance trust, which would provide a modest cash benefit to seniors and persons with disability.

The CLASS provisions were carefully crafted to ensure affordability, accessibility and fiscal solvency. Participation would be voluntary and the premiums will cover the costs, not placing any drain on the federal budget. The result would be a system that supports America’s families and has the potential for significant Medicaid savings.

The bill allows for a full Medicare payment update for skilled nursing facilities and home health care providers in 2010. In addition, the bill contains the Community First Choice Option and spousal impoverishment reforms to expand the availability of Medicaid coverage of home- and community-based services.

A preliminary review from the Congressional Budget Office (CBO) estimates the Senate’s health care reform bill will cost $849 billion over the next 10 years.

Democrats plan to help pay for the measure through and increase to Medicare payroll tax on high-income people: from 1.45 percent of wages to 1.95 percent for those with annual incomes over $200,000 and couples over $250,000. The payroll tax is expected to raise $54 billion over 10 years.

We’ll update you with a full analysis of the bill.