Health Net is Leaving the California Group Market
Important Updates for Brokers:
Health Net has announced its decision to exit the California small and large group market.
Review the key dates, FAQs, and available resources below.
Key Points:
- Existing groups may remain on their current Health Net plans through 2/28/27
- Health Net will no longer accept new group business
- Current Health Net groups will need a new carrier for 2027
Contact your Dickerson sales representative to begin quoting alternative carrier options before the Q4 rush.
Important Dates at a Glance
| Date | |
|---|---|
| September 2026 | Health Net will notify brokers and current employer groups. Health Net will not write any new group business. |
| Now - February 28, 2027 | Start migrating your Health Net groups. Coverage ends February 28, 2027. |
| February 28, 2027 | Last day of Health Net small and large group coverage (Carrier Direct) |
Carrier Promotions
Our carrier partners are offering special promotions to help Health Net groups that need to move.
We'll continue to add new information to this page as it becomes available. Please check back for the latest updates.
Groups enrolled with Health Net through CaliforniaChoice will not have immediate changes.
- Health Net membership remains available for new business through 1/1/27 effective dates.
- Renewing members through CaliforniaChoice receive a full 12-month plan from their renewal date.
- All renewals beginning 2/1/27 through 1/1/28 will need to transition their Health Net members at renewal.
- CaliforniaChoice is offering a special underwriting promotion for Health Net direct groups.
Special Underwriting Promotion for Health Net Direct Groups
CaliforniaChoice is offering a special underwriting promotion for new business effective dates from September 1, 2026, through January 1, 2027.
Eligible groups with 1 or more medically enrolled subscriber may submit their most recent Health Net invoice instead of a DE9C.
To qualify, groups must meet the following criteria:
- Health Net invoice must be fully reconciled
- A current pay stub is required for any subscriber not listed on the invoice
- Owners enrolling who are not listed on the invoice must provide a signed Owner/Partner Statement
- At least 51% of eligible employees must be located in California
- Owner‑only groups are not eligible
All standard CaliforniaChoice eligibility criteria apply to this promotion.
This promotion is designed to make transitioning Health Net direct groups into CalChoice easier, faster, and more predictable — giving brokers a long‑term solution that protects clients from future carrier disruptions.
Kaiser Permanente is extending the deadline for eligible Small Group new business submissions.
For September, Kaiser Permanente is extending the eligible Small Group new business submission deadline from the 5th business day to the 10th business day of the month, to September 15.
This extension is intended to provide employers with additional time to review their options, finalize enrollment decisions, and submit the required documentation for coverage.
Kaiser is committed to helping brokers and groups navigate this transition smoothly. The California Small Group Account Management team is also available to provide information on existing Kaiser Permanente / HealthNet slice groups, discuss plan options, and answer any questions.
Resources & FAQs
Check out the FAQs from Health Net and the letters they're sending out.
- Health Net Broker FAQs
- Health Net Employer FAQs
- Health Net Broker Letter
- Health Net Employer / Client Letter
Need Help?
The Dickerson team is here to help brokers quote groups, compare carrier options, and develop transition strategies.
Contact your sales rep today!