Obama has been under pressure from Democrats in Congress to be flexible on the cancellation issue, which is just one of the several problems hurting the health care rollout that promises to be at the center of next year's midterm elections for control of the House of Representatives and the Senate.
Obama and members of his administration are conscious that the health plan, fought over all the way to the Supreme Court, will have a determining effect on how history judges his presidency. The United States has been the only developed country without a national health care system.
The deeply troubled rollout that began Oct. 1 has given Republicans a new line of attack ahead of the elections, which they hope will offset the criticism they took over last month's 16-day partial government shutdown when they tried to defund what's commonly called "Obamacare."
House Speaker John Boehner, a top Republican in Congress, said it was time to scrap the law "once and for all."
Officials said letters were going out to insurance companies on Thursday informing them they could continue to sell existing individual policies to current customers for 2014, even in cases of plans that had been ruled inadequate under the new law.
At the same time, the administration is promising improvements in a federal website with technical problems so extensive that enrollments in October totaled fewer than 27,000 in 36 states combined.
Adding in enrollment of more than 79,000 in the 14 states with their own websites, the nationwide number of 106,000 October sign-ups was barely one-fifth of what officials had projected and a small fraction of the millions who have received private coverage cancellations.
"That's on me," Obama said of the bungled start.
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Associated Press writers Steven R. Hurst, David Espo, Ricardo Alonso-Zaldivar and Julie Pace contributed to this report.