"We recognize how different the needs of our states are, but our citizens should have access to affordable health care and to choose the path that works best for them," Collins said.

She added that they would be releasing more details, but that it would allow states to keep the Affordable Care Act if they like it or go an "alternative route" with funding previously earmarked for the ACA.

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An NBC News/Wall Street Journal poll released Tuesday found that ObamaCare is more popular today than it has been since 2009.

Cassidy added that the his plan would cover everyone currently insured, and potentially cover up to 95 percent of Americans.

"The way we do this is that as we return power to the states we give states the option of saying everyone who is eligible for [insurance] coverage is enrolled unless chose not to be," he said, comparing the proposal to the current Medicaid system.

The Cassidy-Collins plan comes after congressional Republicans voted last week to lay the groundwork for ObamaCare repeal by passing a budget resolution that includes rules for repeal.

Despite the first step, GOP lawmakers and the incoming Trump team have been publicly divided about when to repeal ObamaCare and how to replace it.

A growing number of GOP lawmakers are calling on repeal and replacement to be moved together, or for lawmakers to at least have a detailed framework of what a replacement bill will look like.

Collins warned against providing a multi-year "offramp" that would delay the repeal of ObamaCare saying it could create a "death spiral" for ACA insurance exchanges.

"It's important that we put specific proposals on the table that our colleagues can coalesce around, debate, and refine," she said.

Republicans will need support from Democrats to clear a replacement bill through the upper chamber.

Democrats, however, are signaling the onus will be on Republicans to come up with a replacement plan if they repeal ObamaCare on a party-line vote.