The president met with the state commissioner and the state has since refused the suggested patch.
At the end of last week, California made insurance news by adding itself to the states that are refusing the fix recommended by President Obama that would allow Americans to be able to maintain their present health plans that have benefits that are too low to comply with the healthcare reforms.
These plans would be permitted for another year, if their policyholders wish to maintain them.
This insurance news from California means that two of the states in the country with the largest populations are in a disagreement with the fix that was proposed by Obama. The board of the Covered California health insurance exchange voted unanimously against the president’s solution to the issue that has arisen as millions of insurers send cancellation notices to consumers as the coverage that they had previously enjoyed no longer complies with the law’s standards.
The decision is making insurance news as it would mean that Californians would not be able to continue low benefit coverage.
The vote of 5 to 0 reflected the belief of the board, which is that “extending the deadline offers no benefit to the consumer and may create confusion about accessing affordable health care coverage.” Susan Kennedy, a member of the board, explained that it would be impossible to make the federal law effective without experiencing this period of transition from the old low benefit plans to the new ones that are compliant with the Affordable Care Act.
Kennedy added that a delay to the start of this transitional period “isn’t going to help anyone; it just delays the problems.” It is her belief that a delay would add enough complication that it would take a bad situation and make it even worse.
The latest insurance news at the time that this article was written showed that only 12 states, so far, have actually agreed with the recent proposal made by Obama to fix the issue regarding the cancelled health policies by extending them for one more year. Though not all states have weighed in, California and New York have both declined the proposed solution.