Health Network is leaving California. CaliforniaChoice gives you choices.

If your small business is covered by Health Net, you may be facing unwelcome changes.

Health Net is exiting California’s group commercial insurance market, which means businesses with Health Net will need to find new health insurance by February 2028. As if health care wasn’t already complicated and expensive, having to find a new plan on short notice can be overwhelming.

But this transition doesn’t necessarily mean starting over.

CaliforniaChoice offers a different approach to health care designed to give your business and employees more choices and more flexibility in the future.

Changes in health insurance are more than just changes in coverage

When health insurance companies exit the market, businesses need to think about more than just choosing a new plan. They must consider the following questions:

Can employees continue to see doctors?
Is their preferred hospital still in network?
Can they get the coverage they need?
What happens next time a carrier changes plans or exits the market?

These are real concerns. Good news? You can choose a policy that gives you more protection from the start.

Advantages of Multiple Plans in One Plan

With CaliforniaChoice, your employees don’t have to be tied to just one health plan. Our multi-carrier model gives employees access to Enable multiple health plans, networks, doctors and hospitals with one plan.

This means employees have more choices when choosing coverage based on what matters most to them—from their preferred doctors and hospitals to the plans and networks that best fit their needs.

And you don’t have to manage different plans for each carrier. It’s a CaliforniaChoice plan, a bill, a website and a place to manage group insurance.

Why choice matters when carriers change

Health Net’s exit from California’s group insurance market is a reminder that coverage doesn’t always stay the same. The operator leaves. The network changes. The plan was terminated. Businesses shouldn’t have to start from scratch every time the health insurance landscape changes.

California Choice · Employer Insights
What happens to your coverage when carriers change their rules?
Carriers are exiting states, abandoning plans, and losing hospital networks more often than most employers realize. Here’s what actually happens, depending on how your group is set up.
Imagine	⚠ Only 1 operator	✅ By CalChoice
Your carrier leaves California	Comprehensive subversion Your entire company must find a new operator. Every employee immediately changes plans, IDs, and doctors. HR re-registered from scratch.	Curb distractions Only employees who choose that carrier will have to choose a new option from the existing lineup. Everyone else kept their plans unchanged.
Your carrier dropped the plan (e.g. Platinum PPO)	no choice If that’s your richest option, it’s gone. There are no substitutions in your program; you’re stuck repurchasing your entire account.	Built-in alternatives Employees who want similar plan types can simply choose a carrier in the lineup that still offers plans with similar features. Whether that’s a low copay plan or one that provides access to a certain hospital network or physician. There were no company-wide outages.
Your carrier loses hospital or physician network	everyone loses access Every employee in the plan lost that doctor or hospital. The only solution is to switch the entire company to a new carrier.	Repair individually Affected employees can be transferred to other carriers in the lineup whose networks still include that hospital or physician during the next open enrollment window.
real risk	100% exposure One carrier’s decisions can disrupt every employee on that carrier’s schedule, not yours.	Distributed throughout the lineup Coverage options with multiple carriers. The withdrawal of a certain operator will only affect the team members who chose that operator.
This is not a hypothetical: In September 2026, Health Net announced that it would completely exit the California small and large group commercial market, with coverage ending on February 28, 2027, impacting every California employer with Health Net as the sole carrier. Employers who enroll through CaliforniaChoice and have employees enrolled in Health Net will also be affected by the carrier, but those employees will not need to repurchase the entire plan and will simply choose a new health plan once Health Net is no longer available (February 2028).

CaliforniaChoice’s multi-carrier model remains stable amid change, giving you and your employees peace of mind now and in the long term.

If a carrier changes its plans or network, your employees don’t necessarily have one path forward. With CaliforniaChoice offering a variety of health plans, employees have more ways to connect with the doctors, hospitals and networks that matter to them. It reduces distractions and increases flexibility.

Solutions for today and tomorrow

Choosing CaliforniaChoice during Health Net’s transformation wasn’t just about solving today’s problems. This is an opportunity to choose a health insurance solution built for the unexpected.

While transitioning your team to a new health insurance plan may sound complicated, CaliforniaChoice aims to make the process easier.

Your business will receive:

Multiple health plans in one plan
100 coverage options
Choose from HMO, PPO and HSA compatible options
Access multiple provider networks
12-month price lock
Flexible employer contribution options

Your employees get something equally important: choice.

How does CaliforniaChoice work?

Simple: multiple health plans. Give employees more choices. A plan that works for your business.

Watch this short video to learn how CaliforniaChoice works and why more than 23,000 California businesses choose this approach to health care.

More than just a new plan, a place to call home

HealthNet’s withdrawal may force you to make changes. But that doesn’t mean your next health insurance solution has to be temporary. CaliforniaChoice gives your business a place to call home and the flexibility to stay there.

If your business is currently enrolled in Health Net and you are looking for new group health insurance, or you are simply looking for a long-term healthcare solution that you can settle down with, talk to your broker about CaliforniaChoice. If you’re not working with an agent today, we can connect you with an agent in your area.

Health Network Exit: Frequently Asked Questions for Small Businesses

Why is Health Net leaving the California small group market?

Health Net announced its decision to exit California’s commercial small group and large group health markets and refocus its business into other areas, including Medi-Cal, Medicare Advantage and individual and family plans. Therefore, employers currently enrolled in Health Net group health plans will need to choose a new health benefits solution.

Will my business be affected by HealthNet withdrawing from the market?

If your company is located in California and currently offers Health Net small group or large group health plans, your business will be affected and will eventually need to transition to a different health insurance solution. Health Net’s Medi-Cal, Medicare, and individual and family plans are not affected by this change.

When do I need to transfer my Health Net group to the new plan?

Health Net’s final renewal effective date is February 1, 2027, and affected groups have until February 28, 2027 to transition to the new coverage. While there is still time to evaluate your options, waiting until the last minute may limit your options and put unnecessary stress on employees. Starting the conversation now gives you more time to review plans, provider networks, and costs.

What should employers do now?

Start reviewing your options and discussing transition strategies with your agent. Consider factors such as employee health care needs, provider network, benefits, premiums, and any employees currently receiving ongoing treatment. Early planning can help ensure a smoother transition and avoid coverage disruptions.

Will my employees lose coverage?

Won’t. With proper planning, employers can transition to new coverage without creating a gap in employee benefits. Working with a broker to evaluate options before your renewal date can help ensure your employees and their families continue to have coverage.

Will my employee need to change doctors?

not necessarily. Many doctors, hospitals and medical groups participate in multiple carrier networks. Depending on your employee’s health care provider and location, they may be able to enroll in a new plan and continue using their current doctors and health care facilities. A provider search can help identify options before switching.

consider your options

What are my options when changing Health Net group plans?

Many employers are evaluating alternative carriers and benefit solutions that offer employees competitive pricing, a strong provider network and flexibility. The right choice depends on your budget, labor needs, and employee preferences.

What is California Choice?

CaliforniaChoice is a multi-carrier employee choice plan that allows employees to choose from multiple health plans while the employer maintains a single benefit plan. Instead of choosing one carrier for the entire company, employers can offer employees a range of health plans, with each employee choosing the plan they like best based on their individual needs:

anthem blue cross
Kaiser Permanente
Sharp Health Plan
Sutter Health Plus
United Healthcare
Western Health Advantages

Why Employers Consider CaliforniaChoice During Health Net Transformation?

Many employers see Health Net transformation as an opportunity to provide employees with greater flexibility. Through CaliforniaChoice, employees can choose from multiple available health plans and provider networks based on their individual health care needs, while the employer continues to administer a benefits plan. This is especially valuable for a workforce with different provider preferences and health care needs.

Can my employees still join Health Net through CaliforniaChoice?

Yes. Health Net remains available to eligible groups through CaliforniaChoice effective January 1, 2027. This allows employers to begin leveraging the CaliforniaChoice model while providing employees with additional time and flexibility during the transition period.

How do I know if CaliforniaChoice is right for my business?

The best first step is to talk to your agent or request a quote and ask for a comparison of available options. Your broker can review costs, provider access, staffing needs, and available plan designs to help determine if CaliforniaChoice is right for your organization during and after the Health Net transition. If you don’t have an agent, we’d be happy to help. Please request a CaliforniaChoice consultation and quote here.