US President Barack Obama's healthcare reform will be launched on 1 October as new insurance marketplaces or exchanges will be opened in 50 states despite the government shutdown.

Commonly known as Obamacare, which mandates every US citizen to obtain coverage or face a fine, the insurance is intended to provide millions of uninsured Americans with subsidized healthcare.

In a televised statement at the White House, Obama said, "The Affordable Care Act is moving forward. That funding is already in place. You can’t shut it down."

About seven million Americans are expected to sign up for insurance in 2014 through the exchange, with enrolment into new insurance plans set to begin on 1 October and run through 31 March 2013, reported Reuters.

The Patient Protection and Affordable Care Act was signed into law in 2010. The Federal marketplaces in 36 states that are not running their own will be operated by the US Department of Health and Human Services.

The US government has started a partial shutdown following a failure to reach an agreement by the two houses of Congress over a new budget.