Republican Study Committee to Introduce Bill Replacing Obamacare

Increase government funding of high-risk pools, provide tax deductions to those who purchase on state exchanges

A group of House conservatives introduced legislation Wednesday that members say will replace ObamaCare and its "unworkable" taxes and mandates with a plan that expands tax breaks for Americans who buy their own insurance. 

Under the proposal endorsed by the 175-member Republican Study Committee, Americans who purchase coverage through state-run exchanges can claim a $7,500 deduction against their income and payroll taxes, regardless of the cost of the insurance. Families could deduct $20,000.

The plan -- which appears to be congressional Republicans' first comprehensive alternative to President Obama's health care overhaul  -- also increases government funding for high-risk pools. The plan serves as a rebuttal to Obama's claims that Republicans just want to eliminate the health law and are no longer interested in replacing it. And it comes as House Republicans, on a different track, prepare to vote on a budget bill that would also de-fund the existing health care law. Democrats have vowed to oppose that bill, warning the strategy risks a government shutdown, with funding set to expire by Oct. 1.