WASHINGTON – The Senate Committee on Health, Education, Labor and Pensions is working on a reform bill proposed by Sen. Edward Kennedy (D-Mass.) that they hope to pass this summer.

President Barack Obama has praised the bill, while Republican leaders say it's too costly and the process is being rushed.

The bill has been rewritten twice and evaluated by the Congressional Budget Office. If passed, it would be the first of two Senate versions that would be combined into one bill. The House version is not expected until later this summer.

On Tuesday, Obama said, "I am pleased by the progress we're making on healthcare reform and still believe, as I've said before, that one of the best ways to bring down costs, provide more choices and assure quality is a public option that will force the insurance companies to compete and keep them honest. I look forward to a final product that achieves these very important goals."

Earlier, Kennedy said, "We must not settle for legislation that merely gestures at reform. We must deliver on the promise of true change."

However, CBO cost estimates have come in higher than expected, and some Democrats fear the bill will be watered down from the reform principles they are pushing to include a public health option. Republicans see that option as a threat to employer-based healthcare if the private health plans can't compete with the public plan.

Sen. Mike Enzi (R-Wyo.), the HELP Committee's Ranking Member, called the latest version of the Kennedy bill "strike two." In a statement issued Tuesday, he said the bill would leave 34 million Americans without coverage and cost $645 billion.

"No matter how they spin it, the Kennedy bill still costs too much," he said. "This bill doesn't come close to achieving our goal of reducing healthcare costs and helping everyone get the care they need."

On July 2, the president said the Kennedy bill reflects many of the principles he has laid out, such as reforms that will prohibit insurance companies from refusing coverage for people with pre-existing conditions and the concept of insurance exchanges where individuals can find affordable coverage if they lose their jobs, move or get sick. "Such a marketplace would allow families and some small businesses the benefit of one-stop-shopping for their healthcare coverage and enable them to compare price and quality and pick the plan that best suits their needs, " Obama said.

Ron Pollack, executive director of Families USA, said, "The Senate HELP Committee bill provides an excellent prescription for healthcare reform. It is designed to ensure high-quality, affordable health coverage and care for America's families. "

Republican leaders on the HELP committee argue that consideration of the bill is being rushed. Democrats hope to pass a health reform bill by Oct. 1.