NEWSROOM

As Health Net exits the California Group Commercial insurance market, brokers across the state are helping employers find new coverage for their small and large group clients. For those with Health Net business through CaliforniaChoice, there’s good news - and new opportunities.

CaliforniaChoice has confirmed that Health Net will remain available to new business and renewals through the January 1, 2027 effective date. Renewing Health Net members will receive a full 12 month plan cycle, giving brokers and employers more time to plan transitions and maintain coverage stability.

But that’s not all. CaliforniaChoice is introducing two limited time programs designed to make the transition smoother — and more rewarding — for brokers.
 

#1 Special Underwriting Promotion

Health Net direct groups may qualify for a streamlined path to CaliforniaChoice. This promotion simplifies eligibility for new business effective dates between October 1, 2026 and January 1, 2027.

Groups will be considered eligible if:

• Health Net invoice is fully reconciled
• A current pay stub is provided for any subscriber not listed on the invoice
• Owners enrolling who are not listed on the invoice provide a signed Owner/Partner Statement
• At least 51% of eligible employees are located in California
• Owner only groups are not eligible

All standard CaliforniaChoice eligibility criteria apply to this promotion.

This streamlined underwriting process helps brokers move Health Net groups quickly and efficiently — minimizing disruption for employers and employees alike.

#2 CaliforniaChoice Health Net Transition Bonus

To recognize brokers’ efforts during this transition, CaliforniaChoice is offering a limited time Health Net Transition Bonus. For every Health Net member who transitions into the CaliforniaChoice program, brokers will earn $100 per enrolled member — with no cap or maximum limit.

The bonus applies to Health Net direct groups written either directly with CaliforniaChoice or through a General Agency partner. Payments will be made 60 days after January 1, 2027 for groups sold between October 1, 2026 and January 1, 2027.

Disclaimer: Pursuant to federal law (Consolidated Appropriations Act), brokers must provide written disclosure of compensation prior to the execution of a group’s health services agreement or plan enrollment.

Why This Matters

CaliforniaChoice offers seven leading health plans under one program — including Anthem Blue Cross, Health Net, Kaiser Permanente, Sharp Health Plan, Sutter Health Plus, UnitedHealthcare, and Western Health Advantage.

By moving Health Net direct business into CaliforniaChoice, brokers can help employers and employees find coverage that fits their needs — often with the ability to keep their doctor, preferred hospital, or even their existing network.

That flexibility is what makes CaliforniaChoice a safe, long term home for groups affected by Health Net’s exit. It’s a solution for today’s transition and tomorrow’s stability.

Download the full Broker FAQ for Health Net Transitions 
Download the full Employer FAQ for Health Net Transitions  

Ready to get started? Call your Word & Brown representative or 888.231,3548.