California Health Exchange Rejects Obamacare ‘Fix’

November 21, 2013 6:06 p.m.

In a major blow to President Obama’s plan, California’s health insurance marketplace has decided not to implement the White House’s “fix” for people whose health plans have been cancelled.

As the biggest state with what’s likely the biggest number of insurance cancellations — 900,000, according to ProPublica — the decision will hinder Obama’s aim of giving those people the option of keeping their current health plan.

California is the seventh state to reject the fix, according to the Washington Post’s Wonkblog, which is tracking state commissioners’ responses to the fix.

As TPM previously reported, California’s marketplace had to make a decision about the “fix” because it’s the only state marketplace that required companies to cancel their existing non-compliant policies by Dec. 31 to sell there.

The issue had been a point of contention between California Insurance Commissioner Dave Jones, who said he opposed the policy and prevented it from passing through the state legislature, and Covered California, the state’s marketplace. Jones had urged Covered California to release insurers from the obligation and allow their customers to renew non-compliant plans.

Insurers not selling on the marketplace will be allowed to make that offer to customers, Jones said.

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