Covered California, the state's public health insurance exchange, has removed one of its 12 health plans from the site, effectively barring consumers from selecting the insurer until further notice.
Alameda Alliance for Health, a public not-for-profit health plan and HMO created by Alameda county to cover Medicaid beneficiaries and in-home support service workers, is not licensed by the state to sell commercial insurance. So Covered California officials have stopped it from selling plans until it gets approval.
Although Alameda was approved to sell plans through the HIX in eastern portions of the Bay Area, the California Department of Managed Health Care has not yet okayed a "material modification" of its license to allow commercial insurance sales.
"Alameda Alliance has a solid provider network and is a valuable asset to the community," said Covered California executive director Peter Lee in a media statement. "We look forward to the company getting its commercial license, so we can welcome its plans back to the exchange."
the Alameda Alliance state Medicaid license as a managed care plan provider remains in place, and it's possible the commercial license could be approved before the 2014 plan year starts.
Lee said that Covered California is retaining its contract with Alameda Alliance and "will continue to work with the state and the company to fulfill the requirements to modify its license."
While Alameda Alliance remains off the exchange, residents of the county have three other health plans to choose from, Anthem, Blue Shield and Kaiser Permanente.