D.C. residents whose insurance policies were canceled under the federal health care overhaul will not be allowed to renew them for next year.
The city has decided not to exercise the option granted by the Obama Administration to extend policies that are out of compliance with the Affordable Care Act.
D.C.'s Department of Insurance, Securities and Banking says forging ahead with the city's health insurance exchange will provide more stability than extending policies and help keep rates down.
More than 21,000 district residents will be affected by the decision.
President Obama announced earlier this month that people with canceled policies could extend them for one year if states allowed it.
D.C.'s insurance commissioner, William White, said the announcement "undercuts the purpose'' of state-run insurance exchanges, and was fired the next day.
White's former deputy, Chester McPherson, is the acting insurance commissioner.