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Sen. Ted Gaines is Suing Covered California

 
Posted Wednesday, March 5th 2014 @ 2pm  by KFBK News - Mike Simpson

State Senator Ted Gaines is suing the state's insurance marketplace, saying it wrongly cut off more than one million policies.

He says Covered California violated the law by telling insurers that they needed to eliminate plans that failed to meet higher standards within the Affordable Care Act.

The senator, who's running for state insurance commissioner, also says the exchange is wasting taxpayer dollars by spending tens of millions of dollars on useless marketing campaigns.

"They're projecting a deficit in budget year 2015-2016 of $78 million. That is not appropriate in my mind, especially when I see marketing money spent as it has been," Gaines said. 

There was a million spent for an infomercial featuring Richard Simmons. Gaines says he wants to fend off further cancellations. 

Covered California has declined to comment on the case.

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