The board of Covered California voted unanimously against allowing insurers on the exchange to extend cancelled plans. Their decision only affects the 11 managed care companies on the state-built exchange, including WellPoint's Anthem Blue Cross, Kaiser Permanente, Blue Shield, and Health Net.
In its decision the board said there would be no benefit to the consumer and may create confusion about accessing affordable health care coverage through Covered California.
(Read more: California rejects Obamacare fix for canceled plans)
It added that maintaining the original deadline confirms the state exchange's commitment to transitioning Californians into plans that are compliant with the reforms of the Patient Protection and Affordable Care Act, protecting consumers from double deductibles and stabilizing the risk pool to control costs for consumers beginning in 2014.
"The consumer is front and foremost in Covered California's policy decision process. These new strategies will provide consumers a better enrollment experience, more flexibility in the selection of a plan and, most importantly, increased knowledge with which to make the best health coverage choice possible," Covered California Executive Director Peter V. Lee, said in a press release.
Because of their contractual agreements with the exchange, it was up to the board to give them dispensation to renew the plans that do not meet new Obamacare standards. The board's action was seen by some as a protectionist move, which will keep one million potential exchange customers from renewing their old plans.
State insurance commissioner Dave Jones has backed the president's fix. He called the Covered California board's decision "a disservice to California consumers" during a conference call with reporters, and admits that there's little he can do about it.
His office has already authorized insurers to extend plans through the March 31st open enrollment period, to give consumers more time to sort through new plans on the exchange.
(Read more: Low-Bamacare enrollment)
And he says insurers like Cigna... which are not selling plans on the exchange are working on extending plans for their customers through next year.
A number of states with their own exchanges have said no the Obama cancellation fix:
Not allowing late renewals: Massachusetts, Minnesota, Rhode Island, Vermont, Washington, New York, California
Allowing late renewals: Hawaii, Ohio, North Carolina, Florida, Kentucky, Texas, South Carolina, Kansas
Still deciding: Colorado, District of Columbia, Indiana, Mississippi, Oregon, South Dakota, New Jersey, Nevada
—By CNBC's Bertha Coombs. Follow her on Twitter @berthacoombs