Lawmakers cautioned that no final decisions have been made, either by the tax-writing committee or by the Democratic leadership, which hopes to have legislation that the House can vote on by month's end.

Smaller tax options remained possibilities, depending on the overall cost of the legislation, including a tax on sugared soft drinks and ending a tax break that drug companies receive for advertising.

In the Senate, New York Democrat Chuck Schumer told The Associated Press that he believes the "ultimate goal" is to have a bill by the end of the year that is signed into law by the president.

Separately, Republicans who met with Senate Majority Leader Harry Reid, D-Nev., said he expressed flexibility on the timetable, indicating that he was willing to allow more time before legislation is brought to the floor.

Failure to meet the August goal would be a setback — but not necessarily a fatal one — for Obama's attempt to achieve comprehensive health care legislation this year. A group of Democratic and Republican senators led by Finance Committee Chairman Max Baucus, D-Mont., is still trying to work out a bipartisan deal.

The White House expressed its support Wednesday for the emerging House legislation.

Associated Press writers David Espo, Ricardo Alonso-Zaldivar and Alan Fram contributed to this report.