The state of California has rejected President Barack Obama’s proposed “fix” for individuals whose insurance policies are being canceled this year as a result of the law.
Last week, the president proposed that insurance companies allow those policies to continue, in an effort to reduce the political damage after he broke his oft-repeated promise that people could keep their plans.
However, California’s regulators refused the change.
California’s decision is critical–not only because it has already signed up more customers for Obamacare than the federal government as a whole, but also because it is the flagship for the policy’s success.
It would have been impossible, in any case, for California to implement Obama’s “fix,” because several insurance companies have withdrawn from the state rather than participating in the restrictive “Covered California” exchange.