Health Net has announced that it will exit the California Small Group and Large Group medical markets effective March 1, 2027. For employers currently offering Health Net Group Health coverage, this means it is time to begin planning for a transition to a new health plan.
Importantly, this change applies specifically to Group Health policies. It does not apply to Health Net Medicare plans or Individual and Family plans.
There Is Time, But Planning Should Start Now
Although March 2027 may seem like a long way off, employers should not wait until the last minute to begin evaluating their options. Health insurance decisions can take time, particularly when an employer wants to carefully consider premiums, provider networks, plan designs, and employee needs.
Employers can get started early on December 1 to get 2026 pricing instead of 2027 rates. Or, if you want to wait until January 1, that’s when your deductible and out-of-pocket max will reset.
Starting early gives you and your health insurance broker an opportunity to review the marketplace and compare available Group Health plans. It also provides time to consider the healthcare needs of your employees, including their current doctors, specialists, prescriptions and ongoing medical care.
The Right Plan Is About More Than Price
Cost will naturally be an important consideration when selecting a replacement plan. However, the lowest premium is not necessarily the best fit for your business or your employees.
Provider networks, deductibles, copays, prescription benefits, out-of-pocket maximums and employee contributions can all affect the overall value of a health plan. Your broker can help you compare these factors side by side so you can make a decision based on both cost and coverage.
Timing may also matter. Health insurance rates can change, so beginning the process early may give employers more opportunities to evaluate pricing before future rate changes take effect.
You Don’t Have to Navigate This Alone
A change in your health insurance carrier can feel overwhelming, but employers and employees do not have to navigate the process alone. As your health insurance broker, we are here to help guide you through the transition, answer questions and evaluate alternatives that make sense for your organization.
If your business currently has Health Net Group Health coverage, now is the time to start the conversation. Contact Bay Area Health Insurance to review your current plan, discuss your priorities, and begin exploring your options for coverage beyond March 1, 2027.
With thoughtful planning, you can approach this transition with greater confidence while helping minimize disruption for your employees.
