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One of the dozen health plans offering coverage through the state insurance marketplace was removed until further notice, officials said Friday.

Alameda Alliance for Health was nixed from the choice of Covered California offerings after failing to secure state approval to sell coverage in the commercial market.

"Alameda Alliance has a solid provider network and is a valuable asset to the community," Covered California Executive Director Peter V. Lee said in a written statement. "We look forward to the company getting its commercial license, so we can welcome its plans back to the exchange."

Covered California officials said they were told by the Department of Managed Health Care that the company's application to modify its license to sell commercially has not been approved, a requirement for plans in the state exchange where coverage starts Jan. 1.

Officials said the decision does not affect Alameda Alliance's license as a Medi-Cal provider. Exchange officials said they would retain their contract with Alameda Alliance and will continue to work with the state and company to fulfill the license requirements.

Covered California notified Alameda Alliance in mid-October that a state-approved license was needed to sell health coverage and set an Oct. 31 deadline for approval. The exchange notified prospective customers from Alameda County that they need to select a new plan from Anthem Blue Cross of California, Blue Shield of California and Kaiser Permanente, with service at nine area hospitals.

PHOTO: Executive Director of Covered California Peter V. Lee speaks to members of the press during the launch of Covered California in Rancho Cordova on Tuesday, Oct. 1, 2013. The Sacramento Bee/Randall Benton.



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