Health Net is exiting the California group commercial insurance market, creating an emergency transition for you and the small businesses you serve.
For groups you currently enroll directly with Health Net, this means finding new coverage. But it also creates an opportunity to move them toward long-term healthcare solutions designed to give them more choice, flexibility and stability.
The solution is CaliforniaChoice.
Quitting the health network doesn’t necessarily mean starting over
When carriers exit the market, employers have to make some big decisions quickly.
- What programs are suitable for their employees?
- Are their doctors and hospitals still in network?
- What will their new rates look like?
- How disruptive will this shift be?
Once they move to another carrier, what happens the next time that carrier changes their plans or network? This is where CaliforniaChoice offers a different approach.
You can move your groups to a single carrier model instead of putting them back Multi-carrier health insurance plan This gives employees more options while making management of your team simple.
CaliforniaChoice Carrier Choice
Why it’s important to offer your group options
Health Net’s exit is a great example of why having multiple operators can provide your customers with greater flexibility.
| Imagine | single operator | Choose with California |
| An airline leaves California | Your client’s entire company needs to find new coverage. | Groups whose employees are registered with this carrier can choose other options within the CaliforniaChoice family. |
| Operators abandon plans | Employees enrolled in the plan may need to find new coverage. | Employees can view other available plan options from their carriers in CaliforniaChoice. |
| Operators change their networks | Everyone at the operator may be affected by network changes. | Employees can access other carrier networks within CaliforniaChoice plans. |
| The market changes again | Your team may need to start the shopping process again. | CaliforniaChoice’s multi-carrier lineup gives employees more options to consider and reduces disruption. |
Not just a new plan. New homes with options.
CaliforniaChoice combines multiple health plans and provider networks into one plan.
Employees can choose the coverage that best suits their needs, including options from multiple health plan carriers and from different networks, doctors and hospitals.
Through CaliforniaChoice, employers receive:
- Multiple health plans
- 100 coverage options
- Various provider networks
- HMO, PPO and HSA compatible options
For your clients, this means more options for new homes today and more flexibility tomorrow when the healthcare market changes. For you, this means you can continue to provide a solution to your small group customers, not only during the Health Net transition period, but also long-term.
Why Brokers Choose CaliforniaChoice
CaliforniaChoice is more than just another carrier option to add to your portfolio. This is a unique way to sell and manage small group health insurance.
With one plan, you can offer California Choice to your customers (with multiple carriers, plans, and networks) without requiring them to manage separate plans.
This makes it easier for you to:
- Sell option. Give employees more options without adding complexity to employers.
- Solve network problems. Employees can choose from multiple available provider networks through this program.
- Create flexibility. If one carrier changes its plans or network, your entire team won’t necessarily be forced to make the same changes.
- Build longer-term relationships. CaliforniaChoice is a health benefits solution designed to grow with the market; that’s why 95% of groups choose to renew.
Now, there’s another reason to bring your Health Net group to CaliforniaChoice.
Health Net Direct Group Limited Time Bonus Opportunity
If your customers are currently signed up for Health Net Direct, now is the time to talk to them about CaliforniaChoice. If you move these groups to CaliforniaChoice, we will provide Limited Time Health Network Transition Broker Bonus.
We’re making it easier to transfer eligible Health Net direct groups Special underwriting promotion Designed to simplify the process.
What this means for you:
This is not just a transition strategy. This is an opportunity to turn market disruption into better solutions for your customers and more business for you.
Don’t just move your group. Find them a home.
Health Net’s exit means thousands of California businesses will seek new group health insurance. As their broker, you can simply help them find another carrier. Or you can offer them something different.
CaliforniaChoice gives your group a welcoming new home, more choices for employees, simpler management for employers, and more flexibility for what comes next.
That’s why CaliforniaChoice is more than just a landing place during Health Network’s transformation. This is a place your team can stay, settle in and call home.
How does CaliforniaChoice work?
If you’re new to CaliforniaChoice, the concept is simple. Multiple health plans. Give employees more choices. A program offered to employers.
Watch our short video to learn how CaliforniaChoice works and why more than 23,000 California businesses choose this approach to health care.
California choice. Today’s solution and tomorrow.
Health Net’s exit creates an urgent need. CaliforniaChoice has the long-term answer for you.
We’re ready to help you evaluate your Health Net business and develop the right transformation strategy. The sooner you start, the sooner you can provide your clients with a new home built around choice. Please call 888.391.6628 or contact your preferred GA today.
Broker FAQ: Health Net’s Group Market Exit
- When will Health Net exit the California small group market?
health network It will exit the California small group and large group care markets in 2027. The final renewal effective date is February 1, 2027, and affected groups have until February 28, 2027 to transition to the new coverage. While employers are not required to make an immediate decision, brokers should immediately begin evaluating alternatives to ensure a smooth transition for clients.
- Which California employer and health network groups are affected by the health network withdrawal?
All California small and large groups with Health Net health insurance will be affected, including employers who enroll directly with Health Net and those who enroll through Health Net California Choice. This change does not affect Health Net’s Medi-Cal, Medicare or individual and family plan operations.
- Why is Health Net exiting the California small group market?
Health Net announced its decision to exit the California commercial group market and refocus its business into other areas, including Medi-Cal, Medicare Advantage and individual and family plans.
- Will brokers continue to receive commissions from Health Net groups during the transition period?
Yes. Commissions will continue to be paid on active Health Net policies until the end of each group’s coverage period. However, because Health Net is exiting the group market and policies do not renew indefinitely, commission revenue associated with these groups will eventually end unless customers transition to a new carrier or benefit solution.
- Are Health Net groups eligible for the Special Enrollment Period (SEP)?
Yes. The termination of Health Net group coverage may trigger a Special Enrollment Period (SEP), allowing affected employers and employees to transition to new coverage without waiting for a traditional enrollment window. This can help brokers move groups to a new carrier or benefit plan while minimizing the risk of a coverage gap.
- What should brokers do now for clients affected by the Health Net exit?
Brokers should begin reviewing renewal dates, evaluating carrier options, assessing provider network needs, and identifying employees with ongoing treatment or continuity of care considerations. Starting early gives employers and employees more time to compare options, minimize disruption and prepare for a successful transition.
- What are the best healthnet alternatives for California small businesses?
The right solution depends on the employer’s budget, provider needs and employee preferences. Many brokers are exploring alternatives that offer strong provider networks, competitive pricing, and greater flexibility. For employers looking to provide employees with more choices, CaliforniaChoice offers multiple health plans in a single benefit plan, making it easier to meet a wide range of health care needs.
- Can brokers still sign up for Health Net groups through CaliforniaChoice?
Yes. Health Net remains available to eligible groups through CaliforniaChoice effective January 1, 2027. This gives brokers and employers more time to plan for the future while introducing clients to the flexibility and choice available through the CaliforniaChoice model.
- Can employees keep their doctor when they leave the Health Net plan?
It’s possible, yes. One of the benefits of CaliforniaChoice is that employees can choose from multiple health plans within a single benefit package, giving them access to a broad network of providers. Because many doctors, hospitals and medical groups participate in multiple carrier networks, employees can choose from different health plans through CaliforniaChoice while staying connected to their current doctor or health care provider.
Rather than requiring an entire employer group to switch to a single alternative carrier, CaliforniaChoice gives employees the flexibility to choose a health plan that best suits their provider preferences and health care needs. Brokers can also conduct provider searches in advance to help identify coverage options that minimize disruption and support a smoother transition.
- Are there special coverages for Health Net groups moving to CaliforniaChoice?
Yes. CaliforniaChoice is offering special coverage plans to eligible Health Net direct groups. Eligible groups can submit a verified Health Net invoice in lieu of DE 9C, helping to streamline the registration process during the transition period. Standard eligibility requirements and participation guidelines apply.
View CaliforniaChoice coverage promotion details here
- Does CaliforniaChoice offer any incentives to brokers who transfer Health Net groups?
Yes. To help brokers support clients affected by the Health Net market exit, CaliforniaChoice is offering Limited Time Health Network Transition Bonus. Brokers can earn $100 per registered Health Net member Who transitions from Health Net direct group to CaliforniaChoice plan, No cap or maximum bonus amount. This bonus is available to eligible Health Net Direct groups sold directly through CaliforniaChoice or sold through a reseller partner October 1, 2026 and January 1, 2027.
Download CaliforniaChoice Health Net Transition Bonus Program Details
