Updated October 2, 2026.

Effective February 28, 2027, Health Net is leaving the California and Oregon group markets.

We’ve put together a roadmap of what comes next for employers.

Who is impacted?

In early September, Health Net announced it would exit the commercial employer-group insurance market in California and Oregon, with existing coverage ending in early 2027. This decision impacts all small- and large-group medical plans, including groups enrolled through CaliforniaChoice.

In-force group coverage is set to end on Feb. 28, 2027, although Health Net will continue to process claims and provide customer service during the transition.

Tip from reading the fine print: A Health Net renewal does not buy you another year. A policy renewed with a January 1 or February 1, 2027, effective date still terminates on February 28, 2027. This is clear in Health Net’s transition guidance. Employers must treat any renewal offer from Health Net as a short bridge, not a plan year.

What happens now?

The withdrawal will require employers using Health Net to select new group coverage for their workers. Work with your broker to consider replacement plans that include comparable provider networks, prescription drug benefits, and more.

Immediate tasks for employers using Health Net

• Work with your broker to confirm that your group coverage terminates on February 28, 2027, and determine your last available renewal date. (Bonus tip: If you renew on January 1, 2027, you’re only buying 58 days' worth of coverage, and you will be behind other companies in the search for a new plan.) Share that information with your Finance and HR teams because every decision you make after today depends on it.
• Run an employee population poll to understand how many employees and dependents are already enrolled and list anyone in active treatment, mid-course on a specialty drug, pregnant, or scheduled for a procedure in early 2027. These cases will drive your network decision much more than any rate quotes – and they are the things that will generate more calls to your HR leader.

Key dates for employers that need to transition off of Health Net:

October 1, 2026- 150 days until Health Net group coverage ends.

• Replacement carrier windows open. Anthem Blue Cross, Blue Shield, and CaliforniaChoice will begin quoting Health Net Groups.
• Work with your broker to start shopping for a new plan. Most employers in California affected by this news will be shopping at this time, putting pressure on the state’s underwriting capacity. Early submissions get the best options, with February submissions getting what’s left over.

October 7 to October 15- All first-quarter 2027 rates land

• CaliforniaChoice has said rates will land on October 7. Other carriers should have rates loaded by mid-October. Pricing is ready and no longer a reason to wait.
• Medicare Part D notices are due on October 15. This is unrelated to Health Net, but another important deadline. A late notice penalizes the employee, not the employer.

November 1, 2026- More carriers open Health Net transition programs

• Aetna’s revised California requirements take effect.
• UnitedHealthcare’s transition program opens.

November and December 2026- Rank replacement plans and make decisions for 2027

• Rank the replacement plans you are considering next to the physicians and hospitals your employees actually use today. Ask what continuity-of-care provisions are offered by the new carrier for those employees who are mid-treatment.
• Remember, it’s always more expensive to lose a winning team than to spend a few extra dollars on benefits that help retain your top talent.
• Explain it twice: Your employees will hear that their insurance company is going out of business, and it’s worth making the correction. Health Net is simply leaving one line of business, and your employees’ coverage is being replaced. Give them the date and the plan details, then tell them again 30 days before the change.

January 1, 2027- Target effective date for replacement coverage

Starting a new plan on January 1, 2027, gives you a clean plan year with a full open-enrollment runway and no gap. This is the date to aim for to start new coverage.

February 1, 2027- Final Health Net renewal date inside CaliforniaChoice

This is the last date that a CaliforniaChoice group can renew into Health Net. Even if you renew on February 1, 2027, your plan still ends February 28, 2027.

February 28, 2027- Health Net coverage ends

This is a hard stop for Health Net group plans, including:

• Small group medical
• Large group medical
• HMO, PPO, and POS plan
• All active group policies, regardless of plan year.

Pro tips for employers that have Health Net today and need a new plan: 

• Confirm your Health Net contract end date with the carrier, then compare replacement plan options and choose the replacement carrier that’s the best fit for your company and workforce.
• Compare carriers based on your own employee census, not list rates.
• Get deductible credit and formulary answers before you commit.
• January 1 should be the target effective date for your new plan with a full open-enrollment runway. Build out your implementation plan backward using January 1 as your new plan year date.

Key dates at a glance:

Deadlines for employers that need to transition from Health Net

Venbrook Insurance Services, LLC is a leading independent voice in Employee Benefits and Specialty Health. Alison Myers, President of Corporate Benefits & Specialty Health, and her experienced team can help you find the right benefits and risk solutions for your workforce.

Connect with our Employee Benefits advisors at everyonebenefits@venbrook.com.