Sacramento, CA — Republican State Senator Ted Gaines has filed a lawsuit against Covered California and Executive Director Peter Lee, to halt all future health insurance policy cancellations by the healthcare exchange. In addition, the suit seeks hundreds of millions in restitution from Covered California for cost expenditures that have failed to increase the number of insured Californians. Gaines argues the state’s insurance exchange acted illegally by refusing to allow more than 900,000 individuals to keep their insurance plans that did not comply with the minimum standards of the Affordable Care Act.
“More than 900,000 Californians have had their health insurance plans cancelled by Obamacare and Covered California. Close to 10 million more could lose their coverage soon. This lawsuit stands with consumers and puts a stop to this unchecked government abuse,” said Gaines.
Gaines added: Millions more with employer-provided insurance face the same cancellations in the upcoming years. Gaines represented Calaveras County prior to redistricting.