With Health Net exiting the California small group health insurance market in 2027, employers who have relied on a single carrier for years will need to explore new coverage options for their employees. While change can feel disruptive, it also creates an opportunity to rethink how you offer benefits and whether there’s a better, more flexible approach for your team.

That’s where CaliforniaChoice can help.

Rather than limiting your employees to a single insurance carrier, CaliforniaChoice gives small businesses access to multiple health plans, multiple carriers, and 100 plan options through one simple program. For employers transitioning away from Health Net, it’s an easy way to maintain continuity while giving employees the freedom to choose the coverage that works best for them.

Why Health Net’s Exit Matters

For nearly 50 years, Health Net has been a familiar name in California health insurance. As the company prepares to exit the small group market, employers who currently offer Health Net coverage will need to select a new health insurance solution for their workforce.

This situation highlights a challenge many small businesses face: when your benefits strategy is built around a single carrier, you’re vulnerable when that carrier leaves the market, changes networks, or increases rates.

Employees are affected, too. Not everyone uses health care the same way:

• Some want access to a specific doctor or hospital.
• Some prioritize lower monthly premiums.
• Some need family coverage.
• Others are looking for HSA-compatible health plans.

A one-size-fits-all health plan rarely works for every employee.

The Advantage of Employee Choice

Think about how people shop today. Whether they’re booking travel, shopping online, or comparing service providers, people expect options. Health insurance should be no different.

CaliforniaChoice operates as a private health insurance exchange, allowing employers to offer a broad selection of plans while maintaining a single benefits platform. Instead of choosing one carrier for everyone, employees can select the plan that best fits their personal needs.

Through CaliforniaChoice, employees can compare:

• HMO plans
• PPO plans
• HSA-qualified health plans
• Multiple provider networks
• Multiple carrier options

That means one employee can choose a PPO because their preferred physician is in-network, while another selects a lower-cost HMO that better fits their budget. Everyone gets coverage that works for them, without creating additional administrative complexity for the employer.

Why CaliforniaChoice Is an Ideal Landing Spot for Health Net Groups

For employers currently enrolled directly with Health Net, CaliforniaChoice offers a smooth and flexible transition path. Instead of moving from one single-carrier solution to another, CaliforniaChoice gives you access to a broader range of options that can better adapt to your team’s changing needs over time.

Benefits include:

Multiple Health Plan Options

CaliforniaChoice offers access to seven participating health plans, including statewide and regional carrier options. That gives small businesses greater flexibility than a traditional single-carrier arrangement.

100 Plan Designs

Employees aren’t forced into the same plan. They can choose from a wide range of coverage levels, provider networks, and pricing options.

One Simple Administration Platform

Even though employees have multiple health plan options, employers receive:

• One bill
• One enrollment platform
• One renewal process
• One point of administration

Future Flexibility

The biggest lesson from Health Net’s departure is that markets change. CaliforniaChoice is designed to help employers adapt without having to completely reinvent their benefits strategy every time a carrier enters or exits the market.

Control Your Benefits Budget With Defined Contribution

One of the reasons many small businesses choose CaliforniaChoice is the ability to control costs through a Defined Contribution approach. Instead of committing to a specific plan for every employee, employers decide how much they want to contribute toward coverage.

You can:

• Contribute a percentage of premium costs
• Base contributions on a specific benefit level
• Fund the lowest-cost plan available
• Adjust contributions at renewal based on chaning business needs

Think of it like a health care gift card. Employees can apply your contribution toward the health plan they prefer. If they select a higher-cost option, they simply pay the difference. This gives employees more freedom while helping employers maintain predictable health insurance costs throughout the year.

More Than Just Health Insurance

Many small business owners are surprised to learn that CaliforniaChoice offers much more than health coverage. Employers can build a more complete benefits package with access to:

Dental Coverage

• DHMO plan options
• Dental PPO plans

Vision Benefits

• Comprehensive vision exams
• Eyewear benefits
• Prescription lens coverage

Chiropractic Benefits

• Chiropractic care and adjustments

Life and AD&D Insurance

• Life insurance coverage options
• Accidental Death & Dismemberment protection
• Living benefit features

Supplemental Benefits Through MetLife

Employees can also choose voluntary benefits, including:

• Accident Insurance
• Critical Illness Insurance
• Hospital Indemnity Insurance
• Legal Plans

These additional benefits allow employees to customize their protection while helping employers create a more competitive benefits package.

Valuable Extras for Employers and Employees

CaliforniaChoice also includes access to programs that can help employees save money and support overall well-being. Available resources include:

• Flexible Spending Accounts (FSAs)
• Premium Only Plans (POPs)
• Discounts on fitness and wellness services
• Hearing and vision savings programs
• Prescription drug discounts
• Travel, entertainment, and retail savings through Cal Perks
• Access to preferred pet insurance programs

These value-added services can help stretch employees’ dollars beyond their health insurance coverage.

Don’t Just Replace Health Net. Upgrade Your Benefits Strategy.

If your company is affected by Health Net’s departure from the California small group market, now is the perfect time to evaluate whether a traditional single-carrier approach still makes sense.

The reality is that today’s workforce wants choice. Employees have different doctors, different financial priorities, different family situations, and different health care needs. Offering access to multiple plans and carriers can help improve employee satisfaction while giving your business greater flexibility and budget control.

For many employers, CaliforniaChoice isn’t simply a replacement for Health Net. It’s a smarter long-term strategy.

Ready to Explore Your Options?

If you’re looking for a Health Net alternative for small businesses, want to compare California small group health insurance plans, or are interested in offering employees more health plan choices, talk with your employee benefits broker about CaliforniaChoice. Don’t have a broker? We can help connect you with one.

When the health insurance market changes, having options matters. That’s exactly what CaliforniaChoice was built to provide.