The plans are cheaper because they have to cover less that what the Affordable Care Act requires. Luckily they still require covering pre-existing health conditions. It also allows health insurance providers the ability to discriminate based on gender, age, and line of work.
These plans will also be able to be sold across state lines, which is something Republicans have wanted for years. They believe that by encouraging competition that prices will be lowered.
Many people believe that this will encourage healthy people to get this coverage, which will dramatically raise the cost of health insurance through the ACA. This could have such a drastic effect on it that it could completely destabalize it. In addition it will leave young, healthy men with very low premiums and older women with very high ones.
If all of this sounds familiar, its because IDaho tried to do this exact thing within it's own borders.
Will this FINALLY be the end of the ACA that the Republicans have coveted for so long?