Important Update: Health Net to Exit Commercial Group Market
After careful consideration, Health Net has decided to discontinue offering commercial group health plans in California as part of a strategic shift to focus on government-sponsored healthcare programs. This change impacts California Small Business and Large Group medical plans. This decision does not affect its Medi-Cal, Marketplace/Covered California, Medicare, or life insurance lines of business.
Health Net has begun notifying affected employer groups and will provide formal notices in accordance with applicable contractual and regulatory requirements. Commercial group policies are expected to terminate by February 28, 2027, or as otherwise permitted under the applicable contract and regulatory requirements. Each group will receive communication regarding its specific coverage end date.
What This Means for Your Clients
- Existing groups may continue coverage until their applicable termination date. Renewals may occur prior to that date, but coverage will ultimately end by February 28, 2027.
- Health Net will no longer accept new commercial group business during this transition, except as required under certain unique agreements.
- Employer groups should begin evaluating alternative carrier options to ensure a smooth transition and avoid any gaps in coverage.
Resources Available
Our team is actively reviewing carrier alternatives and transition strategies to help support your groups through this process. We encourage you to begin identifying clients currently enrolled with Health Net so that replacement coverage discussions can start well in advance of their termination date.