Under the plan, $15 billion a year would be used to market-stabilize funds over the next two years and $10 billion a year in 2020 and 2021. A new factor would come into play: While the current subsidies are based exclusively on income, the Senate bill would also factor in age.
The Senate's draft of the AHCA may be a slightly gentler attack than the House bill, but still an attack nonetheless.
Several Republicans are still skeptical of the measure, which may undergo significant changes before a vote.
The subsidies enabling low-income people to buy private health insurance are expected to be linked to recipients' income in the Senate bill, a "major improvement" from a measure approved last month by the House that tied them exclusively to age, Republican Senator Susan Collins said.
Conservative Senator Rand Paul of Kentucky said he had not yet seen the Senate bill.
Drafts of the bill circulated among Washington lobbyists in the days leading up to its reveal even as Republican Senators remained unaware of its contents. The discussion draft does not constitute actual legislation. It also includes a 3.8 percent tax on the wealthy. "If there's one clear-cut message that comes out of that bill it is we're going to cut the hell out of income taxes for the rich on investment income". And at least a half-dozen Republicans - both conservatives and moderates - have complained about it.
The problem: ACA plans would undoubtedly be more expensive - and comprehensive - than non-ACA plans. The current law provides financial help to pay for premiums for families earning up to 400 percent of the poverty level. The subsidies are somewhat more generous for younger people, and for those with lower incomes.
The draft outline also detailed funds to stabilize US insurance markets, where customers' high medical costs have driven premium rates higher and pushed out health insurers in 2017; the situation is expected to worsen in 2018. That money now covers all eligible recipients and procedures.
It slashes Medicaid for the poor. But it moves to a more stringent cap, using a broad measure of inflation, rather than medical inflation, beginning in 2025.
Trump has irked some Republicans by arguing the Senate bill needs more funding and "heart", suggesting the House bill was not compassionate enough to people who rely on health care.
Other Senate Republicans voiced frustration that the process has been too secretive and out of the public eye.
Senate Majority Leader Mitch McConnell and his lieutenants worked in secret for weeks on the bill, and he said debate on it would start next week.
"It does, but it's just a starting point", he said.
Thirteen GOP senators have been meeting behind closed doors - angering Democrats and even many fellow Republicans - as they try to amend the House's version of the health care reform bill.
The measure would cut and revamp Medicaid, the health care program for lower-income and disabled people. Lawmakers are reportedly still tweaking the legislation, however, so some of the details may change. U.S. Representative Tom MacArthur of New Jersey, who helped shape the House bill, said it "would make coverage of pre-existing conditions sacrosanct for all Americans".
Where can I read it?
The president spoke shortly after Senate Republicans released a 142-page draft of their bill to get rid of much of Obama's law.
For the past seven years, Republicans have plotted a course for repeal of the landmark health reforms of Trump's Democratic predecessor Barack Obama.
The House-passed bill would halt the extra funds for new beneficiaries in three years, a suggestion McConnell has offered.