If your small business has health net coverage, you may be facing an unwanted change.
HealthNet California is leaving the commercial group insurance market, which means businesses with HealthNet will need to find new health insurance coverage after February 2028.
But this transition doesn’t mean starting over.
CaliforniaChoice offers a different approach to health care, designed to give your business and your employees more choice today and more flexibility down the road.
Health insurance change is more than a change in coverage.
When a health insurance carrier exits the market, businesses need to think more than just choosing a new plan. They should consider these questions:
- Will employees continue to see their doctors?
- Will their favorite hospitals still be in network?
- Will they have access to the coverage they need?
- What happens the next time a carrier changes plans or leaves the market?
These are real concerns. The good news? You can choose the coverage that gives you more security right from the start.
Advantage of multiple projects in one program
With CaliforniaChoice, your employees don’t have to stick to just one health plan. Our multi-career model gives employees access. Multiple health plans, networks, doctors and hospitals through one program.
That means employees can have more options when choosing the coverage that matters most to them — from their preferred doctors and hospitals to the plan and network that best fits their needs.
And you don’t need to manage a different program for each carrier. It’s a CaliforniaChoice program, a bill, a website, and a place to manage your group coverage.
Why Choice Matters When Changing Careers
HealthNet’s exit from the California group insurance market is a reminder that coverage isn’t always the same. Leave the career. Networks change. Plans are closed. Businesses don’t have to start from scratch every time the health insurance landscape changes.
CaliforniaChoice’s multi-carrier model creates stability in the midst of change, giving you and your employees peace of mind today and for the long term.
If a carrier changes its plans or network, your employees aren’t necessarily left with one option. With multiple health plans available through CaliforniaChoice, employees have more ways to access the doctors, hospitals and networks that matter to them. This adds less disruption and greater flexibility.
A solution for today and the future
Choosing CaliforniaChoice during the health net transition isn’t just about solving today’s problem. This is an opportunity to choose an unexpectedly designed health insurance solution.
While transitioning your group to a health insurance program can seem complicated, CaliforniaChoice is designed to make the process easy.
Your business gets:
- Multiple health plans in one program
- 100 coverage options
- A selection of HMO, PPO, and HSA-friendly options
- Access to multiple provider networks
- A 12-month price lock
- Flexible employer contribution options
And your employees get something equally important: choice.
How does California Choice work?
It’s simple: multiple health plans. More choices for employees. A program for your business.
Watch this short video to see how CaliforniaChoice works and why more than 23,000 California businesses choose this approach to healthcare.
More than a new venture, a place to call home
A healthnet exit may have forced you to make a change. But that doesn’t mean your next health insurance solution has to be temporary. CaliforniaChoice gives your business a place to call home and the flexibility to stay there.
If your business is currently enrolled in HealthNet and you’re looking for new group health insurance coverage, or if you’re just looking for a long-term health care solution you can afford, talk to your broker about CaliforniaChoice. If you are not working with a broker today, we can connect you with a broker in your area.
Health Net Exit: Common Questions From Small Businesses
Why is HealthNet leaving California’s small group market?
HealthNet has announced its decision to exit California’s commercial small group and large group medical markets as it focuses its business on other areas, including Medi-Cal, Medicare Advantage, and Individual & Family Plans. As a result, employers currently enrolled in HealthNet group medical coverage will need to choose the new health benefits solution.
Will HealthNet’s exit from the market affect my business?
If your company is located in California and currently offers HealthNet Small Group or Large Group Medical Plans, your business is affected and you will eventually need to transition to a different health coverage solution. HealthNet’s MediCal, Medicare, and individual and family plans are not affected by this change.
When do I need to transfer my healthnet group to a new plan?
HealthNet’s final renewal effective date is February 1, 2027, and affected groups must transition to the new coverage by February 28, 2027. While there is still time to evaluate your options, waiting until the last minute can limit your options and create unnecessary stress for employees. Starting the conversation now gives you more time to review plans, provider networks and costs.
What should employers do now?
Start reviewing your options and discuss a transition strategy with your broker. Consider factors such as employee health care needs, provider networks, benefits, premium costs, and employees currently receiving ongoing treatment. Early planning can help ensure a smooth transition and avoid interruptions in coverage.
Will my employees lose coverage?
No. With proper planning, employers can transition to new coverage without creating gaps in employee benefits. Working with a broker to thoroughly review options before your renewal date can help ensure continued access to coverage for your employees and their families.
Will my employees have to change doctors?
Not necessary. Many doctors, hospitals, and medical groups participate in multiple carrier networks. Depending on your employees’ providers and location, they may be able to enroll in a new plan that continues access to their current doctors and health care facilities. A provider search before transferring can help identify options.
Consider your options
What are my options when switching to a HealthNet group plan?
Many employers are evaluating alternative carriers and benefits solutions that offer competitive rates, strong provider networks, and flexibility for employees. The right option will depend on your budget, workforce needs and employee preferences.
What is CaliforniaChoice?
CaliforniaChoice is a multi-carrier employee choice program that allows employees to choose from multiple health plans while the employer maintains a single benefits program. Instead of choosing one carrier for the entire company, employers can offer employees access to a selection of health plans, with each employee choosing the one they prefer based on their individual needs:
- Anthem of the Blue Cross
- Kaiser Permanente
- Faster Health Plan
- Sutter Health Plus
- United Health Care
- Western health benefits
Why are employers considering California Choice during health net transitions?
Many employers see health net transitions as an opportunity to provide more flexibility to employees. Through CaliforniaChoice, employees can choose from a variety of available health plans and provider networks based on their individual health care needs, while employers continue to manage a benefits program. This can be especially valuable for a workforce with different provider preferences and health care needs.
Can my employees still enroll in HealthNet through CaliforniaChoice?
Yes, HealthNet remains available through CaliforniaChoice to eligible groups with effective dates through January 1, 2027. This allows employers to begin taking advantage of the California Choice model while providing employees with additional time and flexibility during the transition period.
How do I know if CaliforniaChoice is right for my business?
The best first step is to talk to your broker or request a quote and request a comparison of available options. Your broker can review cost, provider access, employee needs and available plan designs to help determine whether CaliforniaChoice is a good fit for your organization during and after a health net transition. If you don’t have a broker, we’d love to help you. Request a CaliforniaChoice consultation and quote here.
