As the federal government shutdown continues into its fourth week, California Insurance Commissioner Ricardo Lara has taken steps to help protect federal workers in the state from losing their insurance coverage due to financial hardship. On October 24, 2025, Commissioner Lara issued a formal notice urging insurance companies to quickly implement protective measures for policyholders who depend on federal funding.
This directive affects about 160,000 civilian workers in California who could be at risk of cancellation or non-renewal of home, health, or other types of insurance if they are unable to pay premiums on time since the shutdown began on October 1. The action also covers small businesses and others impacted by disruptions in federal contracts and grants.
“Nobody should lose their health or home coverage because of Congress’s ongoing inaction, especially during the current insurance crisis and challenging market conditions in our state,” said Commissioner Lara. “The federal government shutdown has serious consequences for Californians who are already struggling to find coverage and affordable options. It is crucial for us at the state level to take every possible measure to protect our civil servants and those who rely on federal funds during this leadership crisis and neglect of duty.”
Commissioner Lara’s notice requests that insurance companies provide specific measures for affected policyholders.
The California Department of Insurance, led by Commissioner Lara, serves as the consumer protection agency for what is considered the largest insurance marketplace in the country. The department regulates insurance rates, oversees insurer solvency, sets licensing standards for agents and brokers, reviews market conduct of insurers, resolves consumer complaints, and investigates fraud. Consumers with questions can contact the department via phone or online through www.insurance.ca.gov.
