If your company’s group health plan is with Health Net, you’ve probably heard that it is leaving the commercial employer-group market in California. Health Net’s parent company, Centene, says it is exiting to focus on government-sponsored coverage like Medi-Cal and Medicare. Every Health Net small- and large-group medical plan in the state is affected: HMO, PPO and POS.
The key date: current Health Net group coverage ends February 28, 2027. Your employees need new coverage in place by March 1, 2027.
That’s five months away, and it’s easy to lose that time to holiday schedules and year-end work. The good news is that you have more than one way to handle this, and you don’t have to take the same route as the business down the street. Here’s how the two main paths work.
Path 1: Move to a new carrier
This is the most direct option. You pick a new carrier, and your group moves over at renewal or sooner.
When you move depends on your renewal date:
- Renewal between October 1, 2026 and February 1, 2027: You can switch at your renewal or earlier if that works better. February 1, 2027 is the last Health Net renewal effective date in the direct market.
- Any other renewal date: You don’t get to wait for renewal. New coverage has to start by March 1, 2027, so start shopping now.
Key dates in the Health Net direct market
| Date | What happens |
|---|---|
| Sept. 1, 2026 | Final effective date for new Health Net business |
| Oct. 1, 2026 – Feb. 1, 2027 | Groups renewing in this window can switch at renewal or sooner |
| Feb. 1, 2027 | Final Health Net renewal effective date |
| Feb. 28, 2027 | All current Health Net group coverage ends |
| Mar. 1, 2027 | New plan must be in place |
Why start early: Carriers want this business. Some are offering underwriting concessions to groups coming off Health Net, which can make it easier to get approved or get better rates. Those offers depend on timing and on how many groups are moving. If you wait until February, you’ll have fewer choices and less room to negotiate.
Path 2: Stay with Health Net longer through CaliforniaChoice
If you’re not ready to leave Health Net, perhaps because employees are mid-treatment or rely on specific doctors, CaliforniaChoice can give you more time.
CaliforniaChoice is a small-group exchange that lets employers offer several carriers under one plan. Health Net groups in the direct market that move to CaliforniaChoice can keep Health Net through the end of 2027:
- Enroll with a January 1, 2027 effective date. This is the last date to start new or renewing Health Net coverage through CaliforniaChoice.
- Keep Health Net through December 31, 2027.
- On January 1, 2028, move to another health plan in the CaliforniaChoice lineup, without needing to rebuild your benefits setup from scratch.
A Special Underwriting promotion is available to Health Net direct groups that move to CaliforniaChoice with new-business effective dates from October 1, 2026 through January 1, 2027.
Key dates for Health Net through CaliforniaChoice
| Date | What happens |
|---|---|
| Oct. 1, 2026 – Jan. 1, 2027 | Special Underwriting promotion for Health Net direct groups moving to CaliforniaChoice |
| Jan. 1, 2027 | Final new business and renewal effective date |
| Dec. 31, 2027 | Last day of Health Net coverage for groups that enrolled 1/1/27 |
| Jan. 1, 2028 | Move to another CaliforniaChoice health plan |
Who this fits: Groups that want to avoid disrupting doctor relationships for another year, or that want to make the carrier decision without a hard March deadline.
The tradeoff: You’ll make two moves instead of one, first to CaliforniaChoice and then to a new carrier in 2028. For some groups the extra time is worth it. For others, making one clean switch now is simpler.
How to decide
These are the questions we’d ask first:
- When does your plan renew? This determines how much time you have under Path 1.
- How important are your employees’ current doctors? If key providers aren’t in-network with other carriers, Path 2 buys time to plan around that.
- Is anyone in the middle of ongoing care? Pregnancies, cancer treatment and scheduled surgeries all deserve extra attention before switching.
- How has your cost trended? With 2027 small-group increases running in the double digits, this is a natural point to compare the whole market, not just replace Health Net.
- Would you consider a different funding model? Some groups are using this change to look at level-funded plans as well as fully insured ones.
What we’ll do for you
You don’t have to work through this alone. Whichever path you choose, Maxwell Agency will:
- Shop the market and compare rates, plan designs and provider networks against your employees’ current doctors
- Find any underwriting concessions or promotions your group qualifies for
- Lay out your options side by side so you can make the call
- Handle the enrollment and implementation work, including employee communication
Health Net group coverage ends February 28, 2027. The sooner we start, the more options you’ll have. Contact Maxwell Agency to set up a review of your group’s options.
This article is for general information and isn’t legal or tax advice. Dates reflect carrier and general agency announcements as of September 2026. Your group’s specific contract terms may vary.