Health care bill to cost $940 billion

WASHINGTON (CNN) -- The non-partisan Congressional Budget Office estimates that the Democrats' revised health care bill will cost $940 billion over the next 10 years, a House Democratic source told CNN Thursday.

CNN has not seen the numbers directly yet nor has the CBO released them publicly. But, according to the source, the bill would cut the deficit by $130 billion during the first decade. And it would reduce the deficit by another $1.2 trillion in the following decade, the source said.

The measure extends health insurance coverage to 32 million Americans, helping to guarantee that 95% of Americans will be covered, the source said. It also reduces Medicare expenditures by 1.4% annually while extending Medicare's solvency by at least 9 years, the source added.

The source also told CNN the $940 billion price tag is fully paid for. But what's not clear yet -- and what may be revealed later Thursday -- is just how Democrats plan to pay for the bill.

One of the reasons House Democrats objected to the Senate-passed version of health reform is the nature of some of the revenue raisers in that bill, in particular an excise tax on insurers that would apply to high-cost insurance plans.

Supporters of the excise tax say it offers a good shot at reducing health care spending over time, since insurers and employers would seek to avoid the tax by opting for lower cost coverage.

Opponents, including unions, say the tax would be passed on to workers, and lower cost coverage would be less comprehensive.

-- CNN's Dana Bash and Brianna Keilar and CNNMoney's Jeanne Sahadi contributed to this report.