The U.S. President Donald Trump has signed a new executive order aimed at undermining the Affordable Care Act, known as Obamacare.
It allows small businesses to band together across state lines to buy cheaper, less regulated health plans for their employees with fewer benefits.
In addition, it aims to give people more access to cheaper plans, which do not cover essential health benefits such as maternity and newborn care, prescription drugs, and mental health and addiction treatment.
“The cost of the Obamacare has been so outrageous, it is absolutely destroying everything in its wake,” Trump said at a White House ceremony.
"With these actions, we are moving toward lower costs and more options in the healthcare market, and taking crucial steps toward saving the American people from the nightmare of Obamacare," he added.
Democratic state attorneys general have said they will sue if Trump destroys the healthcare plan initiated under former his predecessor Barack Obama.
The Senate Democratic leader Chuck Schumer accused the president of “using a wrecking ball to single-handedly rip apart our healthcare system.”
Republicans deem Obamacare, which extended health insurance to 20 million people, as a government intrusion, and have vowed to scrap it since it was first introduced in 2010.
However, Trump has hinted at passing more executive actions to reform rules related to Obamacare.