21 Nov 2013

Covered California Rejects Obama’s Request to Extend Individual Plans

21 Nov 2013

As we expected – after the President’s surprise announcement last week that the Administration would allow individual plans to continue for another year – Covered California’s board of directors voted earlier this afternoon to hold the California carriers to their contracts. The Covered California contractual language required all of the Marketplace insurance carriers to cancel all non-grandfathered individual policies at the end of 2013.

Reporting on the decision are the SF Business Times and the LA Times.  The San Jose Mercury News seemed a bit surprised, calling the vote “a stunning rebuke.”

What does this mean to you?  Cigna is now the only California carrier that will allow 2013 non-grandfathered policyholders to extend their policies through the end of 2014.  Those who are healthy should strongly consider moving to a Cigna plan for a 12/1 or 12/15 effective date.

Some Anthem Blue Cross and Blue Shield of CA policyholders have been notified and will still be able to keep their current, non-grandfathered plans for two or three months into 2014, after which they will need to select a new option.

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