Frank Pavone, National Director of Priests for Life, a group that launched a federal lawsuit against the mandate last year, said he was far from happy with the update and welcomes the opportunity to provide feedback.

"We at Priests for Life remind the administration that religious liberty does not just belong to religious groups and individuals; it belongs to all Americans," Pavone said. "We see only one acceptable change regarding the mandate: rescind it completely."

The Family Research Council, a conservative pro-life group, released a similar statement.

"The proposal does not expand religious freedom to all organizations and does nothing to change the current policy that forces religious entities to pay for insurance plans that include abortion-inducing drugs, sterilizations and contraception," said Anna Higgins, director of the group's Center for Human Dignity.

The issue of Obama's health care act mandating contraception coverage became a hot-button political issue during last year's presidential race.