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Health Net's Rate Reduction Affects CaliforniaChoice Groups

Nov 09, 2011

After discussions with the California Department of Managed Health Care (DMHC), Health Net has implemented a premium rate reduction for their CaliforniaChoice® plan contracts. Customers will see an average Health Net rate reduction of approximately 2.5 percent.
The actual rate change your customers will see may vary slightly depending on their specific plan. These rate changes will be applied to all new and renewing customers with contract effective dates of July 1, 2011, through December 1, 2011.

What happens next?

All CaliforniaChoice customers with enrollment or renewal effective dates between July 1, 2011, and December 1, 2011, will receive a letter informing them of the adjustment to their Health Net rates along with their December billing statement.  CaliforniaChoice has prepared two documents that will help you understand this change - and assist you in responding to client questions. You can download each document by clicking on the appropriate link below.

•    A copy of the letter being sent to affected small groups -- Download letter here.
•    FAQs to help you understand and communicate these changes to your customers -- Download FAQs here.

CaliforniaChoice values your partnership and they look forward to providing you with the tools and information to support you in your role as a trusted advisor to your customers. If you have any further questions, please contact the CaliforniaChoice Customer Service Department at (800) 558-8003.

Ron Goldstein, CLU
President and CEO

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