By Andrew Clark

WASHINGTON (Reuters) - Republicans Thursday unveiled details of a plan to restore billions of dollars in Medicare funding to U.S. health care providers, vowing to press ahead with the effort despite White House veto threats.

The legislation would roll back 1997 cuts to the program, which provides health insurance for almost 40 million elderly and disabled Americans, by $28 billion over five years. (WebEditor: In 1997, the Republicans and Democrats  in Congress, agreed, without public debate, at the end of the year, to cut over $200 billion from existing Medicare Trust Fund. They now propose to restore 12% of that vicious cut, and take 5 years to do it.)

"It's a good bill that not only makes health coverage for all seniors more affordable, but improves health care for millions of Americans," said House Commerce Committee Chairman Tom Bliley.

The legislation aims to further restore Medicare funding cuts made under the Balanced Budget Act of 1997, which have produced far larger savings than originally anticipated. (WebEditor: The 'Savings' were to the budget, which was used to declare a 'surplus'. The entire Medicare Trust Fund was raided for this purpose.)

Congress last year acted to provide $16 billion in additional funds over five years and, against a backdrop of rising budget surpluses, health care providers have garnered broad support for further relief.

The new package agreed on by House and Senate Republicans will provide around $5.7 billion to lower out-of pocket costs of hospital visits for Medicare recipients and provide a range of expanded benefits including colon cancer, glaucoma and pap smear screenings.

It will also channel around $8.4 billion in additional funding to rural, teaching and other hospitals, $1.6 billion to nursing homes and $6.2 billion to managed care health plans that participate in Medicare.

The White House argues the plan sets aside too much money for managed care companies and has threatened a veto. It says indirect funding will boost their share to as much as $10 billion, or over a third of the package, despite the fact that they serve only 16 percent of Medicare beneficiaries.

Republicans, however, said they were confident the politically popular measure would not be derailed as Congress works to adjourn next week.

"We believe that, in moving forward, if the president feels compelled to veto the package, that's a decision that he will have to make," said California Republican Rep. Bill Thomas, who chairs the House Ways and Means health subcommittee.

"I can't believe that, from a policy point of view, the White House would be willing to throw away the ... gains we have in this bill."

Managed care plans have been exiting the Medicare program in increasing numbers in recent years, citing inadequate payments under current spending formulas, and supporters of the funding increase argue it will help to stem that tide.