@sherri1329 This diagnostic can trigger in your situation if a '2' has been entered in Screen 39.3, CA Health Coverage, Exemptions, & Misc., in the field for "1=entire household covered for all months, 2 = no months".

To clear the diagnostic scroll down to the section "Coverage Exemptions For Individuals Claimed on Returns (Form 3853, Part III)". Here you can select the Taxpayer's name (Spouse, if applicable) from the dropdown and select 'E' from the dropdown options in the column for "Exemption Type (Ctrl+T)".