WASHINGTON (CBS) - President Trump signed an executive order he says will increase competition in the health insurance industry.
"Insurance companies will be fighting to get every single person signed up," Trump said.
The President's order expands the ability for some employers to buy cheaper coverage across state lines, which the president believes will lead to lower premiums.
“This would open up additional options for employers to purchase the health plans their workers want.”
The President said he was forced to sign an executive order because Congress couldn't agree on a plan to repeal and replace Obamacare.
Kentucky Sen. Rand Paul is one of the Republicans who voted against previous plans. He says he supports this one because it lowers premiums without adding to the deficit.
"This reform, if it works and goes as planned, will allow millions of people to get insurance across state lines at an inexpensive price," said Sen. Rand Paul, R-Kentucky.
Critics say because the cheaper insurance plans don't have to adhere to Obamacare rules such as minimum benefit standards, they lure in younger, healthier customers from the insurance market leaving older and sicker customers to pay more.
"It is a sabotage of the Affordable Care Act and quite frankly, is a real disservice to the American people, many of whom voted for him," said House Minority Leader Nancy Pelosi, D-Calif.
It will take several months for the Trump administration to work out the details and implement the President's order.
The changes will be subject to a formal rule-making process, including a public comment period. The order could also trigger lawsuits from some states.