Health Net is leaving the California group commercial insurance market, creating an urgent transition for you and the small businesses you serve.
For your groups currently enrolled directly with Health Net, this means finding new coverage. But it also creates an opportunity – to move them to a long-term health care solution designed to give them more choice, flexibility, and stability.
That solution is CaliforniaChoice.
A Health Net Exit Doesn’t Have to Mean Starting Over
When a carrier leaves the market, employers have to make some big decisions quickly.
- Which plans will work for their employees?
- Will their doctors and hospitals still be in network?
- What will their new rates look like?
- How disruptive will the transition be?
And once they move to another carrier, what happens the next time that carrier changes its plans or network? That’s where CaliforniaChoice offers a different approach.
Instead of putting your groups back into a single-carrier model, you can move them to a multi-carrier health insurance program that gives employees more choices while keeping administration simple for your groups.
CaliforniaChoice’s Carrier Selection
Why Offering Choice to Your Groups Is Important
Health Net’s exit is a good example of why having multiple carriers available can provide greater flexibility for your clients.
| Scenario | Single Carrier | With CaliforniaChoice |
| A carrier exits California | Your clients’ entire company needs to find new coverage. | Groups with employees enrolled with that carrier can select another option within the CaliforniaChoice lineup. |
| A carrier drops a plan | Employees on that plan may need to find new coverage. | Employees can look at other available plan options from the carriers in CaliforniaChoice. |
| A carrier changes its network | Everyone on that carrier may be affected by the network change. | Employees have access to other carrier networks within the CaliforniaChoice program. |
| The market changes again | Your groups may need to start the shopping process over again. | CaliforniaChoice’s multi-carrier lineup gives employees more options to consider and alleviates the disruption. |
More Than a New Plan. A New Home with Choice.
CaliforniaChoice brings multiple health plans and provider networks together in one program.
Employees can choose the coverage that best fits their needs, including options from multiple health plan carriers and access to different networks, doctors, and hospitals.
With CaliforniaChoice, employers have access to:
- Multiple health plans
- 100 coverage options
- A variety of provider networks
- HMO, PPO, and HSA-compatible options
For your clients, that means a new home with more choice today and more flexibility when the health care market changes tomorrow. For you, it means a solution you can continue to bring to your Small Group clients, not just during the Health Net transition, but for the long haul.
Why Brokers Choose CaliforniaChoice
CaliforniaChoice isn’t simply another carrier option to add to your portfolio. It’s a unique way to sell and administer small group health insurance.
With one program, you can offer your clients CaliforniaChoice – with multiple carriers, plans, and networks – without asking them to manage separate programs.
That can make it easier to:
- Sell choice. Give employees more options without adding complexity for the employer.
- Solve network concerns. Employees can choose from multiple provider networks available through the program.
- Create flexibility. If one carrier changes its plans or network, your entire group isn’t necessarily forced to make the same change.
- Build longer-term relationships. CaliforniaChoice is a health benefits solution designed to evolve with the market; that’s why 95% of groups choose to renew.
And right now, there’s another reason to bring your Health Net groups to CaliforniaChoice.
A Limited-Time Bonus Opportunity for Health Net Direct Groups
If you have clients currently enrolled in Health Net Direct, now is the time to talk with them about CaliforniaChoice. If you move these groups to CaliforniaChoice, we’re offering a limited-time Health Net Transition Broker Bonus.
And we’re making it easier to move eligible Health Net direct groups with a special underwriting promotion designed to streamline the process.
Here’s what that means for you:
- A chance to earn a limited-time bonus when eligible Health Net direct groups move to CaliforniaChoice. Click here for the CaliforniaChoice Health Net Transition Bonus program details.
- A special underwriting promotion for eligible Health Net direct groups, giving you another reason to bring the opportunity to your clients now. Click here for CaliforniaChoice Underwriting Promotion details.
- A long-term home for your groups with multiple health plans and carrier options in one
It’s more than a transition strategy. It’s an opportunity to turn a market disruption into a better solution for your clients – and more business for you.
Don’t Just Move Your Groups. Find Them a Home.
Health Net’s exit means thousands of California businesses will be looking for new group health insurance coverage. As their broker, you can simply help them find another carrier. Or you can offer them something different.
CaliforniaChoice gives your groups a welcoming new home with more choices for employees, simpler administration for employers, and greater flexibility for whatever comes next.
That’s why CaliforniaChoice isn’t just a place to land during the Health Net transition. It’s a place where your groups can stay, settle in, and call home.
How Does CaliforniaChoice Work?
If you’re new to CaliforniaChoice, the concept is simple. Multiple health plans. More choices for employees. One program for the employer.
Watch our short video to see how CaliforniaChoice works and why more than 23,000 California businesses choose this approach to health care.
CaliforniaChoice. The Solution for Today and Tomorrow.
Health Net’s exit creates an immediate need. CaliforniaChoice gives you a long-term answer.
We’re ready to help you evaluate your Health Net business and build the right transition strategy. The sooner you get started, the sooner you can give your clients a new home built around choice. Give us a call 888.391.6628 today or contact your preferred GA.
Broker FAQ: Health Net’s Group Market Exit
- When will Health Net exit the California Small Group market?
Health Net is exiting the California Small Group and Large Group medical markets in 2027. The final renewal effective date is February 1, 2027, and affected groups must transition to new coverage by February 28, 2027. While employers do not need to make an immediate decision, brokers should begin evaluating replacement options now to ensure a smooth transition for clients.
- Which California employers and Health Net groups are affected by the Health Net exit?
All California Small Groups and Large Groups with Health Net medical coverage are affected, including employers enrolled directly with Health Net and those enrolled through CaliforniaChoice. This change does not affect Health Net’s Medi-Cal, Medicare, or Individual & Family Plan business.
- Why is Health Net leaving the California Small Group market?
Health Net has announced its decision to exit the California commercial group market as it refocuses its business on other areas, including Medi-Cal, Medicare Advantage, and Individual & Family Plans.
- Will brokers continue receiving commissions on Health Net groups during the transition?
Yes. Commissions will continue to be paid on active Health Net policies through the end of each group’s coverage period. However, because Health Net is exiting the group market and policies will not renew indefinitely, commission revenue associated with those groups will eventually end unless clients transition to a new carrier or benefits solution.
- Do Health Net groups qualify for a Special Enrollment Period (SEP)?
Yes. The discontinuation 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 benefits program while minimizing the risk of coverage gaps.
- What should brokers do now for clients impacted 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 Health Net replacement options 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 rates, and greater flexibility. For employers seeking to provide more choice to employees, CaliforniaChoice offers access to multiple health plans through a single benefits program, making it easier to accommodate a wide range of health care needs.
- Can brokers still enroll Health Net groups through CaliforniaChoice?
Yes. Health Net remains available through CaliforniaChoice for eligible groups with effective dates through January 1, 2027. This gives brokers and employers additional time to plan for the future while introducing clients to the flexibility and choice available through the CaliforniaChoice model.
- Can employees keep their doctors when moving off a Health Net plan?
Potentially, yes. One of the advantages of CaliforniaChoice is that employees can choose from multiple health plans within a single benefits program, giving them access to a broad range of provider networks. Because many physicians, hospitals, and medical groups participate in multiple carrier networks, employees may be able to select a different health plan through CaliforniaChoice while maintaining access to their current doctors or health care facilities.
Rather than requiring an entire employer group to move to a single replacement carrier, CaliforniaChoice gives employees the flexibility to choose the health plan that best fits 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.
- Is there special underwriting available for Health Net groups moving to CaliforniaChoice?
Yes. CaliforniaChoice is offering a special underwriting program for eligible Health Net direct groups. Qualified groups may be able to submit a reconciled Health Net invoice in place of a DE 9C, helping simplify the enrollment process during the transition period. Standard eligibility requirements and participation guidelines apply.
View the CaliforniaChoice Underwriting Promotion details here
- Is CaliforniaChoice offering any incentives for brokers moving Health Net groups?
Yes. To help brokers support clients affected by Health Net’s market exit, CaliforniaChoice is offering a limited-time Health Net Transition Bonus. Brokers can earn $100 for every enrolled Health Net member who transitions from a Health Net direct group into the CaliforniaChoice program, with no cap or maximum bonus amount. The bonus is available for eligible Health Net direct groups sold through CaliforniaChoice, either directly or through a General Agency partner for business sold between October 1, 2026, and January 1, 2027.
Download the CaliforniaChoice Health Net Transition Bonus program details
