Covered California had the opportunity to increase the number of health insurers competing on the exchange this next year. But it chose not to.
Oregon-based Moda Health insurance says it applied to be part of Covered California for 2015, but was rejected.
“We were a little taken aback," says Dr. Jay Lamb, a vice president of the company.
"Having said that, we recognized that we were smaller, and that we were going to have a harder time having competitive rates to the existing big three or big four that you have going in the state,” says Lamb.
Moda will still be selling in rural areas such as Northern California and the Central Valley, but customers won't be able to buy their policies with a government subsidy.
Health policy experts say the more insurers in a marketplace, the more likely it is that consumers can find the coverage they need at prices they can afford.
Covered California says it won't comment on dealings with insurers.
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