His leading alternate approach would provide health insurance to perhaps 15 million Americans, about half what the comprehensive bill would cover, according to two people familiar with the planning.
It would do that by requiring insurance companies to allow people up to 26 years old to stay on their parents' health plans, and by modestly expanding two federal-state health programs, Medicaid and the Children's Health Insurance Program, one person said. The cost to the federal government would be about one-fourth the price tag for the broader effort, which the White House has said would cost about $950 billion over 10 years.
Officials cautioned that no final decisions had been made but said the smaller plan's outlines are in place in case the larger plan fails.
Such a move would disappoint many Democrats, including Mr. Obama. They have worked for more than a year to pass comprehensive legislation like the plan the president unveiled Monday, which would cover the bulk of the 46 million uninsured people in the U.S., set new rules for health insurers and try to control spiraling health-care costs.