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"Undocumented"? "health insurance"?
"Undocumented health insurance"!?
"as long as they met eligibility requirements, including income limits and California residency in 2014."
But not documented!?
Are you quite sure you're all right over there?
Think of undocumented as "The Gov't does not have a officially documented reason for why they are currently in the country" and not "The Gov't literally has no idea that this person exists."
You're misunderstanding jargon for a standard english word.
"Undocumented" in US immigration terms is not the same meaning as being "undocumented" in other contexts, i.e lacking any and all documents of a specific type.
You can be "undocumented" inimmigration terms and still have establishing documents like power bills that show Californian residency.
I think California also issues driver licenses regardless of immigration status, just ability to pass a driving test. That's likely the most common document that will be used for eligibility.