Republican Senator Rand Paul said he's drafting legislation for a health-care insurance plan that could replace Obamacare, including a provision to "legalize" the sale of inexpensive insurance policies that provide abbreviated coverage.

"That means getting rid of the Obamacare mandates on what you can buy," Paul said in an interview on CNN's "State of the Union" on Sunday. Obamacare, which Republicans are moving to repeal, requires insurers to cover a number of procedures — such as preventive care and pregnancy — that Paul said drives up the cost.

The Kentucky Republican, an ophthalmologist who had his own practice in his home state, said he'll propose helping people pay for medical bills through tax credits and health savings accounts, which allow users to set aside money tax-free to pay for medical expenses. His bill would allow individuals and small businesses to form associations when buying insurance, giving them more leverage, he said.