Lawsuit seeks to reinstate canceled health plans

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Updated: 3/05/2014 8:18 pm

SACRAMENTO, Calif. (AP) — A Republican state senator who is running for state insurance commissioner is suing California's health benefits exchange, saying it wrongly cut off more than 1 million insurance policies and is wasting taxpayer money on useless marketing campaigns.

Sen. Ted Gaines of Roseville said Wednesday that Covered California violated federal and state laws by telling insurers that wanted to participate in the exchange they must eliminate plans that fail to meet the higher standards of the federal Affordable Care Act.

Covered California says 829,000 Californians have enrolled in plans, but more than 1 million policies could be eliminated.

In a lawsuit filed in Los Angeles County Superior Court, Gaines says millions of dollars for marketing and outreach have been wasted because fewer people overall will have insurance.

Covered California declined comment.

©2014 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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