US Republicans unveil Obamacare replacement plan

Long-awaited legislation to dismantle Obamacare was unwrapped on Monday by US Republicans, who called for ending health insurance mandates and rolling back extra healthcare funding for the poor in a package that drew immediate fire from Democrats.

In a battle waged since the 2010 passage of the Affordable Care Act, known as Obamacare, Republicans including President Donald Trump have long vowed to repeal and replace the law.

"Today marks an important step toward restoring healthcare choices and affordability back to the American people," the White House said in a statement, adding Trump looked forward to working with Congress on replacing Obamacare.

Republicans condemn Obamacare as government overreach, and Trump has called it a "disaster."

Obamacare critics complained about the penalty the law charged those who refused to buy insurance. The Republican proposal would repeal that penalty immediately.

It would also replace income-based subsidies to help with the cost of premiums with age-based tax credits.

The legislation would preserve two of the most popular features of the 2010 health-care law, letting young adults stay on their parents’ health plans until age 26 and forbidding insurers to deny coverage or charge more to people with preexisting medical problems. It would also target Planned Parenthood, rendering the women’s health organization ineligible for Medicaid reimbursements or federal family planning grants — a key priority for antiabortion groups.

Congressional Democrats denounced the Republican plan, saying it would hurt Americans by requiring them to pay more for healthcare, to the benefit of insurers.

The Republican proposal would end the Medicaid expansion on 1 January 2020, and cap Medicaid funding after that date.

Just before the plan was unveiled, four moderate Senate Republicans jointly expressed concern that an earlier draft would not adequately protect those who got coverage under Medicaid, raising doubts about the legislation's future in the Senate.   

Several Senate and House conservatives have already expressed doubt about another aspect of the plan, the offering of tax credits for the purchase of health insurance. The proposal seeks to encourage people to buy insurance with the age-based credits, which would be capped at upper-income levels.