* Republicans say plan offers significant reforms

* Urging that solution not cost more than problem

By Donna Smith

WASHINGTON, June 16 (Reuters) - Pushing back against Democratic plans to overhaul the U.S. healthcare system, Republicans on Tuesday readied a less costly alternative they say will make insurance more affordable.

Representative David Camp, the top Republican on the House Ways and Means Committee, said the plan offered significant reforms, including incentives for healthy living, protection for doctors against malpractice lawsuits and tax breaks to encourage small businesses to offer insurance to their workers.

"We obviously think it's important to make healthcare more affordable and to drive down costs," Camp said in an interview before a planned news briefing on the plan on Wednesday.

U.S. healthcare costs nearly 16 percent of gross domestic product, roughly twice what many developed countries pay per capita. Costs are rising much faster than inflation, yet 46 million people are uninsured and have little access to care.

Healthcare reform is a major goal of President Barack Obama, who warned on Monday the system was "a ticking time bomb for the federal budget." [ID:nN15473672]

While the minority party in the House has little power to stop a Democratic bill likely to include a new government-run plan to help cover the millions uninsured, Camp said it was important that Republicans offer up a less costly alternative.