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 will need to select replacement group health coverage.
Before your current Health Net plan ends, your business 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 which replacement option works best for your employees and your business.
That last sentence is important. It makes CBIC sound consultative.
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 Health Net transition, compare available alternatives and move to replacement coverage while minimizing disruption for employees.
I really like this section because it answers the unspoken question:
“Why should I call you instead of any other broker?”
You aren't just saying you sell insurance. You're saying you understand the carrier they are coming from and the carriers they may be moving to.
A straightforward transition from Health Net
1. Review Your Current Plan
We look at your existing Health Net plan, enrollment, contribution structure and priorities.
2. Compare Replacement Options
We obtain and organize available group health options from alternative carriers.
3. Review Costs & Networks
We compare premiums, benefits, doctors, medical groups and hospital access.
4. Coordinate Enrollment
Once your company selects coverage, we help guide the transition and enrollment process.
That makes the service feel organized and established.
No-Cost Group Coverage Review
There is no cost or obligation to review your options.
California Benefits Insurance Center can 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. Starting early gives your company more time to compare plans, evaluate provider networks and communicate 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.
Do we have to stay with the same type of plan?
Not necessarily. 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.
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.