Romney wants tax breaks to expand U.S. health cover

WASHINGTON (Reuters) - Republican presidential hopeful Mitt Romney on Friday unveiled his plan for overhauling the U.S. health care system with tax breaks and other incentives aimed at helping the 45 million Americans without health insurance.

The former Massachusetts governor proposed allowing individuals who buy their own health insurance and have a high deductible to get tax breaks for premiums they pay. It would also allow deductions for out-of-pocket medical expenses and for co-payments for services.

The tax breaks would lead to 2 million to 6 million middle income Americans currently without insurance to get private coverage and cut health care spending by an estimated 6.2 percent, according to his campaign.

When Romney was governor, he oversaw the establishment of a statewide health care program requiring residents to obtain coverage, which has received plaudits and criticisms. His plan unveiled on Friday does not require individuals to get insurance.

Unveiled during a speech in Florida as he inches up in the national polls, Romney's plan would also allow states to direct money spent treating the uninsured to instead help them purchase private health insurance.

Romney's campaign said that would help 11 million to 18 million Americans and not require any new spending or taxes.

Romney also targeted medical malpractice lawsuits which Republicans have castigated for years, saying they lead to rising costs of health care and insurance.

His plan would cap punitive damages and encourage states to establish health courts with judges who have extensive experience with medical cases as well as urge sanctions for filing frivolous lawsuits.

Another part of his plan would provide federal Medicaid funds in the form of block grants to states which could use the money as they saw fit. Medicaid is the state-federal health insurance plan for the needy.

Democratic challenger John Edwards, a former senator who is running third in the race for his party's nomination, blasted Romney's plan, saying it would benefit the wealthy and encourage employers to dump health care coverage plans, which could increase the number of uninsured.

"If universal health care was good enough for Massachusetts, why isn't it good enough for the rest of the country?" Edwards said in a statement.