If your small business has Health Net coverage, you may be facing an unwelcome change.

Health Net is leaving the California group commercial insurance market, which means businesses with Health Net will need to find new health insurance coverage no later than February 2028. As if health care is not already complicated and expensive, having to find a new plan on short notice can feel overwhelming.

But this transition doesn’t have to mean starting over.

CaliforniaChoice offers a different approach to health care, one designed to give your business and your employees more choice today and more flexibility down the road.

A Health Insurance Change Is More Than a Change in Coverage

When a health insurance carrier leaves the market, businesses have more to think about than simply choosing a new plan. They must consider these questions:

• Will employees be able to keep seeing their doctors?
• Will their preferred hospitals still be in network?
• Will they have access to the coverage they need?
• What happens the next time a carrier changes its plans or leaves the market?

These are real concerns. The good news? You can choose coverage that gives you more security from the start.

The Advantage of Multiple Plans in One Program

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

That means employees can have more options when choosing coverage based on what matters most to them — from their preferred doctors and hospitals to the plan and network that best fits their needs.

And you don’t have to manage a different program for every carrier. It’s one CaliforniaChoice program, one bill, one website, and one place to administer your group coverage.

Why Choice Matters When Carriers Change

Health Net’s exit from the California group insurance market is a reminder that coverage doesn’t always stay the same. Carriers leave. Networks change. Plans are discontinued. Businesses shouldn’t have to start from scratch every time the health insurance landscape changes.

CalChoice · Employer Insight
When a Carrier Changes the Rules, What Happens to Your Coverage?
Carriers exit states, drop plans, and lose hospital networks more often than most employers realize. Here’s what that actually looks like depending on how your group is set up.
Scenario	⚠ Only 1 Carrier	✅ With CalChoice
Your carrier exits California	FULL DISRUPTION Your entire company has to find a new carrier. Every employee changes plans, ID cards, and doctors at once. HR restarts enrollment from zero.	CONTAINED DISRUPTION Only the employees who chose that one carrier must pick a new option from your existing lineup. Everyone else keeps their plan, untouched.
Your carrier drops a plan (e.g., Platinum PPO)	NO ALTERNATIVE If that was your richest option, it’s simply gone. There’s no substitute inside your program; you’re stuck re-shopping the whole account.	BUILT-IN ALTERNATIVE Employees who want a similar plan type just select a carrier in the lineup that still offers a plan with similar features. Whether that is a plan with a low copay or access to a certain hospital network or doctor. There’s no company-wide disruption.
Your carrier loses a hospital or doctor network	EVERYONE LOSES ACCESS Every employee on that plan loses that doctor or hospital. The only fix is to switch the entire company to a new carrier.	INDIVIDUAL FIX Affected employees can move to a different carrier in the lineup whose network still includes that hospital or doctor in the next open enrollment window.
The real risk	100% EXPOSURE One carrier’s decision can disrupt every single employee, on that carrier’s timeline, not yours.	SPREAD ACROSS THE LINEUP Coverage options from multiple carriers. One carrier’s exit only affects the members of your team that chose it.
This isn’t hypothetical: In September 2026, Health Net announced it is exiting the California small- and large-group commercial market entirely, with coverage ending February 28, 2027, affecting every California employer who has Health Net as their only carrier. Employers enrolled through CaliforniaChoice who had employees on Health Net are affected for that carrier too, but instead of re-shopping their entire program, those employees simply need to select a new health plan after Health Net is no longer available (February 2028).

CaliforniaChoice’s multi-carrier model creates stability amid changes, giving you and your employees peace of mind today and for the long term.

If one carrier changes its plans or network, your employees aren’t necessarily left with only one path forward. With multiple health plans available through CaliforniaChoice, employees have more ways to access the doctors, hospitals, and networks that are important to them. It adds up to less disruption and greater flexibility.

A Solution for Today and the Future

Choosing CaliforniaChoice during the Health Net transition isn’t just about solving today’s problem. It’s an opportunity to choose a health insurance solution built for the unexpected.

While moving your group to a new health insurance program may sound complicated, CaliforniaChoice is designed to make the process easier.

Your business gets:

• Multiple health plans in one program
• 100 coverage options
• Choice of HMO, PPO, and HSA-compatible options
• Access to multiple provider networks
• A 12-month price lock
• Flexible employer contribution options

And your employees get something equally important: choice.

How Does CaliforniaChoice Work?

It’s simple: multiple health plans. More choices for employees. One program for your business.

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

More Than a New Plan, a Place to Call Home

The Health Net exit may have forced you to make a change. 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’re looking for new group health insurance coverage, or if you’re just in search of a long-term health care solution you can settle into, talk to your broker about CaliforniaChoice. If you’re not working with a broker today, we can connect you with one in your area.

Health Net Exit: Common Questions from Small Businesses

Why is Health Net leaving the California small group market?

Health Net has announced its decision to exit the California commercial Small Group and Large Group medical markets as it refocuses its business on other areas, including Medi-Cal, Medicare Advantage, and Individual & Family Plans. As a result, employers currently enrolled in Health Net group medical coverage will need to select a new health benefits solution.

Is my business affected by Health Net’s market exit?

If your company is located in California and currently offers a Health Net Small Group or Large Group medical plan, your business is affected and will eventually need to transition to a different health coverage solution. Health Net’s Medi-Cal, Medicare, and Individual & Family Plans are not impacted by this change.

When do I need to move my Health Net group to a new plan?

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

What should employers do now?

Begin reviewing your options and discussing a transition strategy with your broker. Consider factors such as employee health care needs, provider networks, benefits, premium costs, and any employees currently receiving ongoing treatment. Early planning can help ensure a smoother transition and avoid disruptions in coverage.

Will my employees lose coverage?

No. With proper planning, employers can transition to new coverage without creating gaps in employee benefits. Working with a broker to evaluate options well before your renewal date can help ensure continuous access to coverage for your employees and their families.

Will my employees have to change doctors?

Not necessarily. Many doctors, hospitals, and medical groups participate in multiple carrier networks. Depending on your employees’ providers and location, they may be able to enroll in a new plan that continues access to their current physicians and healthcare facilities. Provider searches can help identify options before a transition is made.

Considering Your Options

What are my options when replacing a Health Net group plan?

Many employers are evaluating alternative carriers and benefits solutions that offer competitive rates, strong provider networks, and flexibility for employees. The right option will depend on your budget, workforce needs, and employee preferences.

What is CaliforniaChoice?

CaliforniaChoice is a multi-carrier employee choice program that allows employees to select from multiple health plans while the employer maintains a single benefits program. Instead of choosing one carrier for the entire company, employers can offer employees access to a selection of health plans, each employee selecting which they prefer best based on their individual needs:

• Anthem Blue Cross
• Kaiser Permanente
• Sharp Health Plan
• Sutter Health Plus
• UnitedHealthcare
• Western Health Advantage

Why are employers considering CaliforniaChoice during the Health Net transition?

Many employers see the Health Net transition as an opportunity to provide greater flexibility to employees. Through CaliforniaChoice, employees can choose from multiple available health plans and provider networks based on their individual healthcare needs, while employers continue to manage one benefits program. This can be especially valuable for workforces with diverse provider preferences and healthcare needs.

Can my employees still enroll in Health Net through CaliforniaChoice?

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

How can I learn whether CaliforniaChoice is right for my business?

The best first step is to speak with your broker or request a quote and request a comparison of available options. Your broker can review costs, provider access, employee needs, and available plan designs to help determine whether CaliforniaChoice is a good fit for your organization during and after the Health Net transition. If you do not have a broker, we would love to help you. Request a CaliforniaChoice consultation and quote here.