The nation’s largest telecommunications company said it is ending its participation in California’s insurance exchange in the state’s largest cities as the Trump administration considers scrapping the state-run exchange, which has expanded coverage to millions of Californians.
In a statement, Verizon said the California exchange was “not a viable option” for its business and the state should consider alternatives.
The announcement follows an executive order by President Donald Trump to “cancel the Obamacare exchange in California.”
California’s insurance marketplace is designed to help those with higher incomes and more expensive medical bills get insurance.
The state has expanded the state exchange to cover a smaller number of people.
The decision comes after a federal judge in San Francisco ordered the Trump Administration to end its participation.
The administration was expected to appeal.
Gavin Newsom said Thursday that the Trump executive order was “completely unacceptable.”
He said the state could not “end up with an unaffordable health care plan for everyone in the country” and said it should have been implemented by the Obama administration.
Newsom said the administration’s decision to leave the exchange is “unprecedented.”
He added that the California state Legislature should hold a special session to repeal the Affordable Care Act and to create a new marketplace.