By Dale Kasler, The Sacramento Bee | |
McClatchy-Tribune Information Services |
The state agreed to rewrite the rules governing
The revision gives companies like VSP -- which insure eye care only -- much greater access to sell coverage in the online market. VSP and other eye-care insurers can now take aim at the full range of Californians who will buy coverage through the market, which begins operations in
The agency overseeing the new market, the California Health Benefit Exchange, said in August that stand-alone vision insurers could sell coverage to small businesses but not individuals -- the biggest slice of the market. As many as 2.4 million uninsured Californians are expected to buy coverage through the exchange, which will be called California Covered.
VSP, which employs 2,100 Sacramentans, hinted it might leave the state. A slew of government and business leaders, led by
The agency's governing board reversed course Tuesday, voting 5-0 to let VSP and its peers become full participants in the market.
Within minutes, VSP Chief Executive
"We'll take the hold off the jobs," Lynch said. The hiring includes 250 new workers at VSP's optical lens-grinding facility near
Lynch added that the company wasn't actually contemplating leaving the state. But if the exchange hadn't changed its mind, he said VSP would have taken "a serious look" at directing all future expansions to other states.
Several of VSP's supporters argued that the exchange's original decision made little business sense because many Californians buy vision coverage from stand-alone companies like VSP.
"We think this is good for consumers," the exchange's executive director,
The board's original decision was tied to the federal tax subsidies being offered to individuals who buy through the exchange.
Letting individuals buy vision insurance from one company -- and the rest of their insurance from another company -- would require splitting the subsidies between the policies. The exchange board originally said that was too complicated.
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