Health Net Is Exiting California Group Health. All Plans Terminate February 28, 2027.
California employers with Health Net group medical coverage will need to transition to a new carrier.
What Is Happening With Health Net Group Coverage?
Health Net is leaving California’s commercial employer group health insurance market.
The change applies to Health Net’s California small-business and large-group commercial medical plans. Health Net has said it is exiting traditional commercial group business to concentrate on its government-sponsored healthcare lines.
Employers currently enrolled in affected Health Net group plans are receiving formal notices regarding the termination of their coverage. Your notice should be used to confirm your company’s specific coverage end date.
Important: This market exit does not mean Health Net is leaving California entirely. Medi-Cal, Medicare, and Marketplace/Covered California business are not part of this commercial group exit.
What Does Your Business Need to Do?
You may be able to extend your Health Net coverage or select replacement group health coverage.
Before your current Health Net plan ends, your business should first determine whether it qualifies for an extension of coverage through the 2027 calendar year.
Some employer groups may be eligible to extend their Health Net coverage by making a qualifying plan change effective no later than January 1, 2027. With the extension window narrowing, reviewing your eligibility sooner rather than later is important.
If an extension is not available or your business prefers to explore other options, you should review available carriers and determine which option provides the best combination of:
- employee premiums
- employer contribution
- medical benefits
- deductibles and out-of-pocket costs
- HMO and PPO options
- physician and medical-group access
- hospital networks
- prescription benefits
The goal is not simply to replace Health Net with the first available plan. It is to determine whether extending your current coverage or transitioning to a new carrier works best for your employees and your business.
We Know Health Net — And the California Group Market
Experienced guidance through the transition
California Benefits Insurance Center has extensive experience working with Health Net and other leading group health carriers in California.
We can help your company understand the upcoming Health Net changes, evaluate whether your group qualifies to extend coverage through 2027, and compare available alternatives if a transition becomes necessary.
Our goal is to help your business make an informed decision while minimizing disruption for employees, whether that means maintaining Health Net coverage or transitioning to a new carrier.
A straightforward transition from Health Net
1. Review Your Current Plan & Extension Eligibility
We look at your existing Health Net plan, enrollment, contribution structure and priorities, including whether your group may qualify to extend coverage through 2027.
2. Compare Available Coverage Options
We evaluate potential Health Net extension options and obtain available group health plans from alternative carriers when appropriate.
3. Review Costs & Networks
We compare premiums, benefits, doctors, medical groups and hospital access to help determine which option best meets your company's needs.
4. Coordinate Plan Changes or Enrollment
Once your company selects the best option, we help guide the necessary plan changes, extension process or enrollment with a new carrier.
No-Cost Group Coverage Review
There is no cost or obligation to review your options.
California Benefits Insurance Center can evaluate your group's eligibility for a Health Net coverage extension through 2027 or prepare a comparison of replacement group health coverage for your business at no cost.
You do not need to wait until your Health Net termination date approaches. January 1, 2027 is the final eligible effective date for qualifying extension changes, making it important to review your options before that window closes.
Starting early also gives your company more time to compare plans, evaluate provider networks and communicate any necessary changes to employees.
FAQ section
Is Health Net leaving California entirely?
No. The announced exit concerns Health Net's California commercial small and large employer group business. Health Net has said its Medi-Cal, Medicare and Marketplace/Covered California lines are not affected by this group-market exit.
When will my Health Net group coverage end?
Check the formal notice provided to your employer by Health Net for your group's specific termination date. Health Net is sending notices directly to employer groups, and coverage timing can depend on the existing policy period. The broader market exit is expected to be completed by February 28, 2027.
Can my business extend its Health Net coverage through 2027?
Possibly. Some employer groups may qualify to extend their Health Net coverage through the 2027 calendar year by making an eligible plan change. January 1, 2027 is the final eligible effective date for qualifying changes.
Eligibility depends on your group's current coverage and Health Net's requirements. Our team can review your plan and help determine whether an extension is available before the window closes.
Do we have to stay with the same type of plan?
Not necessarily. Depending on eligibility, your business may have the option to extend Health Net coverage or explore alternative carriers. This is an opportunity to compare available HMO and PPO options, benefit designs, networks and contribution strategies.
Does it cost anything to have CBIC compare plans?
No. There is no cost or obligation for the coverage review, including evaluating potential Health Net extension options.
Can you check whether our employees' doctors are in the new plan?
Yes. Provider and hospital network review should be part of the carrier-selection process. We can also help review provider access when evaluating potential Health Net extension options.