The president signed an executive orders Monday that will allow states to decide whether to expand Medicaid coverage for residents with preexisting conditions.
The order also gives states the option of expanding their Medicaid program by paying out a tax to people who have been covered for three months.
The health care law requires states to cover people with pre-existing conditions, but states have been slow to expand the program.
It was unclear whether the order would expand coverage for the nearly 17 million Americans with preterm births.
The president also signed an order to help states create their own health care exchange, with the federal government taking over as the state administrator.
It’s unclear whether those two orders will be used to set up health care exchanges.
The states will receive $10 billion in federal funds to help them set up their own exchange.
The White House said the order will help them implement new rules to protect the health of their people.
The administration said the funds will help create and maintain a state-based health care insurance exchange.
It said the program will help reduce the number of people on Medicaid who have pre-existing conditions and will allow the states to choose whether to use the funds to expand coverage or pay a tax on the cost of premiums.
The Centers for Medicare and Medicaid Services said the state exchanges will be administered by the federal Department of Health and Human Services.
The state exchanges could also provide additional services such as access to care.
A White House official said Trump will be announcing the details of the order shortly.
The Associated Press contributed to this report.