House GOP targets healthcare law with major cuts

By Elise Viebeck - 04/23/12 12:49 PM ET

House Republicans, continuing to target the 2010 healthcare overhaul, have identified billions of dollars in cuts and changes to its programs they hope to include in the 2013 federal budget.

Under the House-passed budget, each committee must cut the programs it oversees to a certain level.

Proposals from Republicans on the House Energy and Commerce Committee would slash Medicaid and eliminate programs created in the healthcare overhaul.

One cut in particular is meant to block states' ability to set up insurance exchanges using funds from the Health and Human Services (HHS) Department.

The exchanges will not be put in place until 2014, and should states refuse to establish their own, HHS is supposed to step in and do it for them.

Other GOP amendments specifically directed at the healthcare law would repeal its "prevention" fund and rescind money for loan subsidies to nonprofit insurance plans.

Proposals directed at Medicaid would lower its funding cap, cut its payments to the territories and give states new leeway to cut eligibility.

The House Energy and Commerce Committee will address the proposals in markup Tuesday and Wednesday.