HealthNet California Group is leaving the commercial insurance market, creating a quick transition for you and your small businesses.
For your groups currently enrolled directly with HealthNet, this means finding new coverage. But it also creates an opportunity – to steer them toward a long-term healthcare solution designed to give them more choice, flexibility and stability.
That solution is CaliforniaChoice.
Exiting HealthNet does not mean starting over.
When a carrier leaves the market, employers have to make some big decisions quickly.
- What plans will work for their employees?
- Will their doctors and hospitals still be in network?
- What will their new rates be?
- How disruptive will the transition be?
And once they switch to another carrier, what happens the next time that carrier changes its plan or network? That’s where California Choice offers a different approach.
Instead of putting your groups back into the single-carrier model, you can move them to a Multi-carrier health insurance program That gives employees more choice while keeping administration simple for your groups.
California Choice’s Career Choice
Why is it important to offer your groups choice?
HealthNet’s exit is a good example of how having multiple carriers available can provide more flexibility for your clients.
| The scenario | Single carrier | With California Choice |
| A carrier operates out of California. | Your entire company of clients needs to find new coverage. | Groups of employees enrolled with this carrier can select another option within the CaliforniaChoice lineup. |
| A carrier leaves a plan. | Employees of the plan may need to find new coverage. | Employees can view other available plan options from carriers at CaliforniaChoice. |
| A carrier changes its network. | Everyone on that carrier could be affected by the network change. | Employees within the California Choice program have access to other carrier networks. |
| The market then changes. | Your groups may need to start the purchase process again. | CaliforniaChoice’s multi-carrier lineup gives employees more options to consider and eliminates distractions. |
More than a new project. A new home with choices.
CaliforniaChoice brings together multiple health plans and provider networks into one program.
Employees can choose the coverage that best suits their needs, including options from multiple health plan carriers and access to different networks, doctors and hospitals.
With CaliforniaChoice, employers have access to:
- Multiple health plans
- 100 coverage options
- A type of provider networks
- HMO, PPO, and HSA compatible options
For your clients, that means a new home with more choice today and more flexibility when the healthcare market changes tomorrow. For you, that means a solution you can continue to bring to your small group of clients, not just during the HealthNet transition, but for the long haul.
Why Brokers Choose California Choice
CaliforniaChoice isn’t just another career option to add to your portfolio. It is a unique way to sell and manage small group health insurance.
With one program, you can offer your clients California Choice – across multiple carriers, plans, and networks – without asking them to manage separate programs.
This can make it easier:
- Sell the selection. Give employees more options without adding complexity for the employer.
- Address network concerns. Employees can choose from multiple provider networks available through the program.
- Build flexibility. If one carrier changes its plans or network, your entire group isn’t necessarily forced to make the same change.
- Build long-term relationships. CaliforniaChoice is a health benefits solution designed to evolve with the market. That’s why 95% of groups choose to renew.
And now, there’s another reason to bring your HealthNet groups to California Choice.
A limited time bonus opportunity for HealthNet Direct groups
If your clients are currently enrolled in Health Net Direct, now is the time to talk to them about CaliforniaChoice. If you move these groups to CaliforniaChoice, we’re making an offer. Limited Time HealthNet Transition Broker Bonus.
And we’re making it easier for eligible HealthNet Direct groups to move with a Promotion of specialty underwriting Designed to streamline the process.
Here’s what that means for you:
It is more than a transition strategy. This is an opportunity to turn a market bottleneck into a better solution for your clients – and more business for you.
Don’t just move your groups. Find them a home.
HealthNet’s exit means thousands of California businesses will be looking for new group health insurance coverage. As their broker, you can easily help them find another career. Or you can offer them something different.
CaliforniaChoice gives your groups a welcome new home with more choice for employees, easier administration for employers, and more flexibility for whatever comes next.
That’s why California Choice HealthNet isn’t the only landing spot during the transition. It’s a place your group can live, settle and call home.
How does California Choice work?
If you’re new to CaliforniaChoice, the concept is simple. Multiple health plans. More choices for employees. A program for employers.
Watch our short video to learn how California Choice works and why more than 23,000 California businesses choose this approach to healthcare.
California Choice. Today’s solution And yesterday
Exclusion of Health Net creates an urgent need. CaliforniaChoice gives you a long-term answer.
We are ready to help you assess your HealthNet business and create the right transition strategy. The sooner you get started, the sooner you can give your clients a new home that’s built to your liking. Call us today at 888.391.6628 or contact your favorite GA.
Broker FAQ: HealthNet’s exit from the group market
- When will HealthNet California exit the small group market?
Health Net Exiting California’s small group and large group medical markets in 2027 The final renewal effective date is February 1, 2027, and affected groups must transition to the new coverage by February 28, 2027. While employers don’t need to make an immediate decision, brokers should begin evaluating the client’s alternative options now to ensure a transition.
- Which California employers and health net groups are affected by the health net exit?
All California small group and large group HealthNet medical coverage is affected, including employers enrolled directly with HealthNet and those enrolled through them. California Choice. This change does not affect HealthNet’s MediCal, Medicare, or individual and family plan businesses.
- Why is HealthNet California leaving the small group market?
HealthNet has announced its decision to exit the California commercial group market as it focuses its business on other areas, including Medi-Cal, Medicare Advantage, and Individual & Family Plans.
- Will brokers continue to receive commissions on HealthNet Groups during the transition?
Yes, commission will continue to be paid on active health net policies till the end of each group’s coverage period. However, because HealthNet Group is exiting the market and policies will not renew indefinitely, commission income associated with these groups will eventually cease unless clients transition to a new carrier or benefits solution.
- Are HealthNet groups eligible for the Special Enrollment Period (SEP)?
Yes, the discontinuance of HealthNet group coverage may trigger a Special Enrollment Period (SEP), allowing affected employers and employees to transition to new coverage without waiting for the traditional enrollment window. This can help brokers transition groups to a new carrier or benefits program while minimizing the risk of coverage gaps.
- What should brokers do now for clients affected by the HealthNet exit?
Brokers should review renewal dates, evaluate carrier options, assess provider network needs, and identify employees with ongoing treatment or continuity of care. Starting early gives employers and employees more time to compare options, minimize disruption, and prepare for a successful transition.
- What are the best health net alternative options for California small businesses?
The right solution depends on the employer’s budget, the provider’s needs and the employee’s preferences. Many brokers are looking for alternatives that offer stronger provider networks, competitive rates, and greater flexibility. For employers looking to provide more choice to employees, CaliforniaChoice offers access to multiple health plans through a single benefits program, making it easier to meet a wide range of health care needs.
- Can brokers still enroll healthnet groups through California Choice?
Yes, Health Net is available through CaliforniaChoice to eligible groups with effective dates through January 1, 2027. This gives brokers and employers additional time to plan for the future while introducing clients to the flexibility and choice available through the California Choice model.
- Can employees keep their doctors when closing a health net plan?
Possibly, yes. One of the benefits of CaliforniaChoice is that employees can choose from multiple health plans within the same benefits program, giving them access to a wider range of provider networks. Because many physicians, hospitals, and medical groups participate in multiple carrier networks, employees can choose a different health plan through CaliforniaChoice while maintaining access to their current doctors or health care facilities.
Instead of requiring an entire employer group to switch to an alternative carrier, CaliforniaChoice gives employees the flexibility to choose a health plan that fits their provider preferences and health care needs. Brokers can also search providers in advance to help identify coverage options that minimize disruption and support a smooth transition.
- Is there any special underwriting available for HealthNet groups going into California Choice?
Yes, CaliforniaChoice offers a special underwriting program for eligible HealthNetDirect groups. Qualified groups may be able to submit a reconciled health net invoice in place of the DE 9C, helping to simplify the enrollment process during the transition period. Standard eligibility requirements and participation guidelines apply.
See details on the California Choice underwriting promotion here
- Does CaliforniaChoice offer any incentives for brokers transferring to HealthNet groups?
Yes, to help brokers help clients affected by HealthNet’s exit from the marketplace, CaliforniaChoice is offering Limited Time Health Net Transition Bonus. Brokers can earn. $100 for each enrolled HealthNet member which moves from the HealthNet Direct group to the California Choice program. No cap or maximum bonus amount.. This bonus is available to eligible Health Net direct groups sold by CaliforniaChoice, either directly or to businesses sold through a general agency partner. 1 October 2026 and 1 January 2027.
Download the CaliforniaChoice Health Net Transition Bonus program details.
