Carrier Responses to Health Net's CA Group Market Exit
As brokers and employer groups prepare for Health Net's departure from the California small group market effective February 28, 2027, several carriers have announced special underwriting accommodations, enrollment flexibility, bonus opportunities, and transition programs designed to make the move as seamless as possible.
Below is a summary of the key carrier responses currently available for Health Net groups transitioning to new coverage.
Anthem Blue Cross
Anthem has introduced temporary underwriting flexibility for new business effective October 1, 2026 through March 1, 2027. Eligible groups can take advantage of reduced participation requirements, waived DE9C requirements, and simplified enrollment processes when transitioning from Health Net. Anthem is also allowing special enrollment opportunities for members currently enrolled alongside Anthem coverage and offering reinstatement options for eligible former Anthem groups.
Blue Shield of California
Blue Shield has expanded underwriting flexibility for transitioning Health Net groups, including reduced minimum enrollment requirements when offered alongside another carrier's HMO plan, simplified renewal date changes, and reinstatement opportunities for former Blue Shield groups. Loss of Health Net coverage will also qualify as a special enrollment event for eligible members.
Blue Shield is additionally offering a Small Group Transition Bonus program for qualifying business.
CaliforniaChoice
CaliforniaChoice announced how the Health Net exit will affect their new and renewing business including a special underwriting promotion for Health Net direct groups with new business effective dates from September 1, 2026 through January 1, 2027. Eligible groups may substitute their most recent Health Net invoice in place of a DE-9C and benefit from simplified submission requirements.
In addition, CaliforniaChoice has launched a special bonus opportunity for brokers who transition eligible Health Net groups to CaliforniaChoice coverage.
Covered California for Small Business (CCSB)
CCSB is easing enrollment requirements by accepting prior Health Net bills in lieu of DE-9C or payroll reports for qualifying groups. Additional accommodations include extended submission deadlines through March 2027 and continued flexible participation requirements, allowing only 70% of eligible employees to be enrolled in credible coverage regardless of where that coverage is obtained.
Kaiser Permanente
Kaiser Permanente has established a streamlined transition process for Health Net groups moving to Kaiser coverage. Temporary accommodations include reduced documentation requirements for smaller groups, dedicated California support resources, special open enrollment opportunities for existing Kaiser groups, and added flexibility around anniversary date changes and mid-year plan modifications.
UnitedHealthcare
UnitedHealthcare announced a special transition bonus program running from November 1, 2026 through June 30, 2027. The program provides additional compensation opportunities for brokers who help eligible Health Net groups enroll in UnitedHealthcare fully insured, level-funded, or self-funded medical products. UHC has stated its commitment to helping clients transition smoothly from Health Net coverage.
Other Carriers
Several carriers, including Aetna, Balance by CCHP, Sharp Health Plan, and Western Health Advantage, have indicated that standard underwriting and enrollment guidelines remain in place for transitioning Health Net groups.
We're Here to Help
The B&P team is actively monitoring carrier announcements and can help you evaluate alternatives, compare plans, navigate underwriting requirements, and ensure clients move to new coverage with confidence.
If you have Health Net groups that need to transition coverage, contact your B&P sales team for guidance and quoting support.