Elderly, disabled and pregnant recipients of the low-income health scheme would be exempted from the policy.
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The move comes after a bipartisan healthcare fix stalled within one day of its announcement.
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The decision is described as a "spiteful act of vast, pointless sabotage" by Democrat leaders.
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The new action would make it easier for Americans to buy stripped-down, cheaper polices.
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As Republicans in Congress fail to repeal Obamacare, President Trump has hinted at other options.
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The party leadership said there would be no vote this week on their bill, after support ebbed away.
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Republicans who refuse to back repeal legislation lack "guts", the US president says.
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The senator says he "cannot in good conscience" approve the plan, which is backed by President Trump.
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The TV host, whose son has a heart condition, attacked the author of a new plan to replace Obamacare.
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Medical organisations say the bill would end up "endangering access to critical care for millions".
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