A new insurance program for long-term care that Democrats have included in a Senate health overhaul bill would produce about $58 billion in revenue for the government over the next 10 years, according to the Congressional Budget Office, helping to offset the cost of the legislation.

Democrats acknowledge that spending in the long-term care program would increase after 10 years and that it likely would not remain a very profitable enterprise for the government. But they believe the program can financially sustain itself from its own premiums alone.

They included provisions in the bill that would allow the Secretary of Health and Human Services to take several actions to keep the program afloat, including closing its enrollment, if necessary. The CBO says that premiums would have to rise significantly higher than Democrats have assumed for the program to remain financially sound.

But Democrats say the program strikes at a problem that has long embarrassed lawmakers: Medicare generally does not cover long-term care, and so many seniors needing the care impoverish themselves in order to qualify for Medicaid, the health entitlement for the poor, which does cover the service.

Democratic staff of the Health, Education, Labor and Pensions (HELP) Committee outlined the program for reporters on Friday, after receiving a positive cost estimate from the CBO. The $58 billion the long-term care program would produce over the next decade can be applied against the health overhaul, which is expected to cost at least $1 trillion over the same period. CBO does not generally estimate the costs of programs beyond 10 years, the period covered by procedural “pay-as-you-go” rules requiring legislation to be budget-neutral.

While the long-term care program would be a government-run insurance plan, it is intended to complement private long-term care insurance, not compete with the products, Democratic aides say. Benefits under the program are intended to only cover about half the average cost of long-term care, according to a summary distributed by HELP staff. Private long-term care insurance has not proved popular: according to the HELP committee, more than 200 million adult Americans lack any kind of coverage against the possibility they will need the care.

“People underestimate their risk of needing long-term care services,” said Robert Zirkelbach, a spokesman for America’s Health Insurance Plans. “They incorrectly believe that health insurance or Medicare will cover these costs, and few are taking any steps to protect themselves.”

He said the trade association agrees that a “national strategy” is needed for long-term care issues, but that AHIP has “some concerns with the workability of the [program], particularly the long-term sustainability of the program.”

HELP Committee Republicans also are concerned about the long-term costs of the Democrats’ proposal, and would rather provide people tax deductions for private long-term care insurance premiums or tax credits to purchase services directly, said Craig Orfield, a spokesman for Michael B. Enzi of Wyoming, the top Republican on the panel.

The government already runs a disability insurance program through the Social Security Administration, but it is very difficult to qualify for that program and there is a huge backlog of people who have appealed Social Security’s initial denial of their benefits. Among other requirements, people seeking Social Security disability benefits must prove that they are so sick or injured that they cannot work.

The new government program would not have such stringent requirements. “We’re trying to get at the issue so that even if you have a functional limitation, you can still be productive, so you have what you need to get to work every day, or so you can live in the community,” a senior Democratic HELP health aide said.

The program would be supported by monthly premiums, which would vary with age but are expected to average about $65 per month. Students and people with incomes below the poverty line would pay only $5 per month. No one would be eligible for benefits until they have paid premiums for five years — a big reason that CBO estimates the program would net revenue for the government in its first 10 years. CBO says that premiums would probably have to be increased by $35 to $45 to maintain the program’s solvency beyond 10 years.

The program’s benefits would be at least $50 per day, according to the summary.