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CA Department of Insurance

Insurance Commissioner Dave Jones calls on all California insurers and HMOs to allow policyholders to keep existing coverage through 2014

News: 2013 Press Release

For Release: November 14, 2013
Media Calls Only: 916-492-3566
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Insurance Commissioner Dave Jones calls on all California insurers and HMOs to allow policyholders to keep existing coverage through 2014 mandating December 31 policy cancellations
Requests Covered California release insurers in Exchange from contract provision mandating December 31 policy cancellations

SACRAMENTO, CA - Taking immediate action in response to President Obama's announcement, Insurance Commissioner Dave Jones today requested that all California health insurers and HMOs provide current customers the option to renew their existing non-grandfathered policies for 2014 and issue new notices to policyholder advising them of their options.

"The President's action today makes it crystal clear that health insurers and HMOs are not required by federal law to cancel existing policies," said Jones. "California has more than 1 million people with non-grandfathered policies facing cancellation; they should be given the opportunity to keep their existing coverage next year. I am calling on all health insurers in California to let their policyholders keep their existing coverage for an additional year if they want it."

At a press conference in San Francisco, Jones further noted that health insurers in California are not cancelling their small business policyholders. They are allowing small businesses to renew their existing policies for another year although those policies don't comply with the new 2014 requirement, but decided to cancel family and individuals plans.

Commissioner Jones also called on Covered California to release all health insurers selling in the Exchange from the Covered California contract provision that requires health insurers to cancel plans for individual policyholders on December 31, 2013.

"Over my objections, Covered California required health insurers participating in the Exchange to cancel all non-grandfathered individual policies on December 31," said Jones. "Health insurers should not be required by Covered California to terminate policies. Today, I formally requested that Covered California release health insurers selling in the Exchange from the contract provision that requires them to cancel policies on December 31."

Media notes:

  • Over the last two weeks, Commissioner Jones persuaded the two largest health insurers regulated by the Department of Insurance, Anthem Blue Cross Life and Health Insurance Company and Blue Shield of California Life and Health Insurance Company, to delay the December 31 policy cancellations for hundreds of thousands of California consumers covered by individual and family (non-grandfathered) policies giving them more time to look for coverage that meets their needs.

The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $310 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $469 million in claims and premiums. Please visit the Department of Insurance website at Non-media inquiries should be directed to the Consumer Hotline at 800.927.4357. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.

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