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Oregon-Based Insurer Rejected From Covered California

Covered California's Facebook homepage.
Covered California's Facebook homepage.

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 said it applied to be part of Covered California for 2015 but was rejected.

“We were a little taken aback," said Jay Lamb, a Moda Health vice president.

"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,” Lamb said.

Moda Health will still be selling in rural areas in 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 said it won't comment on dealings with insurers.

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