it has 38 million residents. this is getting a lot of attention. who are these 1 million people? people ho had private health insurance. under obama care, all insurance policies must include ten essential benefits things like maternity care and prescription drug coverage. so if your plan doesn't meet that criteria, the insurance companies send you a cancellation notice. some private insurer will offer new plans. but for some people that could increase premiums. for other people who might qualify for a subsidy under obama care, it could be cheaper. >> what do these million people who just lost their policies in california supposed to do. >> there's a reason that they're doing this. that's because the obama administration wanted to get rid of what they called junk plans and make sure everyone has quality coverage. fortunately for californians, they have a state exchange working better than healthcare.gov but there are still reports of problems there too. >> this is not just happening in california. it's happening all over the country. >> well, that's right, wolf.