VSP Global shocked at Governor Brown’s vetoing of AB1877

VSP Global shocked at Governor Brown’s vetoing of AB1877

California-based vision insurer VSP Global has expressed surprise and shock at Gov. Jerry Brown's vetoing of Assembly Bill 1877 (AB1877), arguing that it was essential for providing health coverage to millions of uninsured Californians.

Mr. Brown vetoed AB1877 on Thursday. Authored by Assemblyman Ken Cooley (D-Rancho Cordova), the bill would have provided stand-alone insurers with a way to sell coverage to millions of uninsured people in the state.

Rob Lynch, president and chief executive officer of VSP, said, "We are surprised and shocked the governor vetoed AB 1877. AB 1877 was a great solution to provide affordable access to eye care for adult Californians. This veto is inexplicable and unacceptable."

Lynch added that Mr. Brown's veto tore open an old wound, though the company would apparently not reverse course on an expansion in the Sacramento area that was announced many months back.

In 2012, Covered California's governing board decided not to allow stand-alone companies like VSP, which provides Vision Service Plan, to sell insurance coverage to individuals.

VSP and other stand-alone companies protested, prompting many elected officials and business leaders to urge the state agency to reconsider the decision.

Cooley's measure would have set up a new entity, dubbed the California Vision Care Access Council, to allow stand-alone insurers like VSP to sell their plans. But the bill, which passed the Assembly and Senate unanimously, failed to obtain Gov. Brown's signature.

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