Health Net has announced that it is ending its California commercial group health insurance business. This includes both small business and large group medical plans.

If your company’s Health Net medical plan is scheduled to terminate on February 28, 2027, now is the time to begin planning for replacement coverage.

Need help? Contact BenefitsCafe.com at 800-746-0045. We can help you evaluate your options and guide you through the transition to a new group medical plan.

What Health Net’s announcement means

Health Net has decided to discontinue offering commercial group health plans in California so that it can focus on government-sponsored healthcare programs.

The change affects California Health Net group medical plans, including Small Business and Large Group plans. It does not affect Health Net’s Medi-Cal, Covered California/Marketplace, or Medicare businesses.

Health Net is sending formal notices to employer groups by mail identifying the specific date their coverage will end.

Health Net’s announcement states that some policies may remain in effect through their current policy period. However, we understand that this applies to very few plans. For most employers affected by this decision, the expectation should be that their Health Net group medical coverage will end February 28, 2027.

Employers should review their formal Health Net notice carefully and begin planning for replacement coverage now.

Don’t wait until February

Replacing a group medical plan involves much more than finding another insurance company’s lowest rate.

Employers should compare:

  • Doctors and hospitals — Will employees be able to continue using their current doctors and hospitals?
  • Benefits — How do deductibles, copays, coinsurance, prescription benefits and out-of-pocket maximums compare?
  • Cost — What will the new plan cost the employer and employees?
  • Plan choices — Are there different plans that can provide employees with appropriate choices?
  • Transition requirements — What needs to be completed to make sure the new coverage is in place before Health Net coverage ends?

Starting early gives the employer time to evaluate these issues and make an informed decision rather than choosing a plan under pressure.

Work with an experienced benefits broker

This is an important time to have an experienced California employee benefits broker working on your behalf.

At BenefitsCafe.com, we help employers compare group medical insurance options from different insurance companies and evaluate the differences in cost, benefits and provider networks.

We don’t believe that choosing health insurance should be based solely on the monthly premium. A plan that costs less but doesn’t include the doctors or hospitals employees use may not be a good value.

Our job is to help employers understand their choices, identify the plans that best fit their needs and guide them through the enrollment process.

We also help employers communicate the changes to their employees so they understand how the new coverage will work.

If Health Net is ending your coverage, let’s talk

If your business has received a Health Net termination notice, don’t wait until the last minute to begin looking for replacement coverage.

The February 28, 2027 termination date may seem a long way off, but there are important decisions to make before then.

Contact BenefitsCafe.com at 800-746-0045.

We can help you evaluate your options and make the transition from Health Net to your new group medical insurance plan as smooth as possible.