The US Senate on Monday passed the American Health Care Act, the second such bill in the Trump administration’s first 100 days.
The House has yet to vote on the measure.
Trumpcare is a bill that repeals Obamacare and gives the US president sweeping powers to make health care decisions.
The Senate will now try to get the bill passed by a simple majority.
Republicans control both houses of Congress and the White House.
The legislation includes several provisions aimed at improving health insurance coverage, including cutting the cost of medical devices and expanding Medicaid.
In addition, it eliminates the Affordable Care Act’s requirement that insurance plans cover essential health benefits like maternity and mental health care.
If approved, the bill would also expand Medicaid, a $700 billion programme that provides insurance to the poor, disabled and seniors.
The bill is expected to become law in late January, and it will likely be signed into law by the president in late March or early April.
The US House of Representatives passed the bill on Thursday and passed it by a vote of 219-206.
The American Health and Human Services Department, which drafted the bill, said that the Senate version would be “more comprehensive” and would be better for consumers.
The Congressional Budget Office estimated that the bill could provide about $1.3 trillion in savings over the next decade.
The CBO estimated that in 2020, Americans would spend an average of $3,800 per person, an increase of about 4% from the current baseline.
According to a separate study from the RAND Corporation, Americans will spend an estimated $4,800 on health care over the same period, an annual increase of 13%.
The CBO added that Americans who are not covered by the ACA’s subsidies will spend more than twice as much on health costs as people who are covered.
Trump’s first budget request to Congress contained a proposal for $4 trillion in tax cuts and $6 trillion in cuts to Medicaid and Medicare.
The proposed budget was seen as a chance to reduce the government’s debt and reduce the burden of healthcare costs, which is expected by many economists to rise to about $14 trillion by 2026, according to the CBO.
The American HealthCare Act also includes $7 trillion in reductions in Medicare costs and $3.4 trillion from the federal deficit, which are largely offset by spending cuts and the elimination of a number of subsidies.
The bill includes a number or provisions aimed to address the concerns of Republicans and some Democrats who say the bill does not go far enough in reducing costs and is not sufficiently generous to lower the burden on those with pre-existing conditions.
In his first budget address on January 6, President Trump said he was proposing “significant tax cuts for the middle class and small businesses, as well as billions of dollars for healthcare for all Americans”.
House Democrats had been lobbying hard for weeks to push back against the bill.
They are seeking to attach a series of provisions that would increase Medicaid spending and increase taxes for the wealthiest Americans, including a cap on the amount of money that people can deduct from their taxes, which would be $250,000 for individuals and $1 million for couples.
House Republicans also wanted to include a requirement that health insurers cover maternity care.
Democrats, including Minority Leader Nancy Pelosi, had warned that they would oppose any measure that would cut Medicaid, especially in light of the Congressional Budget office’s estimates that the cost-sharing reduction payments, or CSR payments, would increase by about $600 billion over 10 years.
The White House has argued that the payments, which go to the insurance companies that sell health plans in the individual market, would be worth it in the short-term.
“We know from experience that CSRs increase premiums for the most vulnerable Americans, increase deductibles for middle-class families, and increase out-of-pocket costs for everyone else,” the White Nationalist said.
The legislation does not include any provisions that Democrats said would be costly or disruptive to consumers.
In fact, the plan does not increase the deficit at all.
It will instead increase spending by about 5%, which is a level that the nonpartisan Congressional Budget Board has said will not have a significant impact on the economy, as a result of the bill’s tax cuts.
Trump has repeatedly promised to sign the legislation into law, and he has said he will veto any attempt to amend the bill without his signature.
More from CNN: The House of Representative passed a measure Monday to repeal Obamacare and give the president sweeping power to make healthcare decisions.
The bill also repeals the AffordableCare Act’s mandate that insurance companies cover essential care, including maternity and mentally health care, and expands Medicaid, which pays for health care to the most needy Americans.
If passed, the legislation would also enlarge Medicaid, and if approved, would also be signed by the President in late April or early May.