Health Net is Leaving the Group Market

Get the latest updates and tips on how to transition your groups

Dickerson / Health Net is Leaving the Group Market


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 2026Health Net will notify brokers and current employer groups. 
Health Net will not write any new group business.
Now - February 28, 2027Start migrating your Health Net groups. 
Coverage ends February 28, 2027.
February 28, 2027Last 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.

Introducing Health Net Welcome to Anthem Promo: New Group Effective 10/1/26 to 3/1/27

  •  25% Participation for all groups with 2-100 lives (no waiver form needed)
  • What is required:
    • Employer Application, Quote, EFT, No DE9C required (send prior invoice), and Enrollment Application or Census Enrollment
  • Existing Groups Written Alongside Health Net: Anthem will allow members to come on to Anthem as a special enrollment effective 10/1 - 3/1 and during the group renewal month.
  • Groups who left Anthem: Anthem will allow groups to reinstate within 60 days of leaving Anthem (as long as the group left in good standing). Groups will be required to pay back premium. 
    • Group cancelled on 8/1 to go to Health Net can reinstate back to 8/1 but must pay 8/1, 9/1, and 10/1 all at once.


Help your Health Net small groups make the move to Blue Shield and earn more

Health Net Blue Shield Transition Bonus: Groups with effective dates from October 1, 2026 through March 1, 2027 are eligible.

Small Group Medical Members$ Per Member
1 - 50 members$100 per member
51 - 100 members$150 per member
101 + members$200 per member


Get a bonus for ancillary!     Dental: $20 per member    |     Vision: $5 per member

Blue Shield is offering increased underwriting flexibility for groups 10/1/26 - 3/1/27

  •  Write alongside another carrier's HMO - When writing alongside another carrier's HMO, blue shield reduced minimum enrollee requirement to 3 enrolling.
  • Simplified Renewal Date Changes - For transitioning Health Net groups, the 30-day advance submission and six-month Blue Shield requirements are temporarily waived for renewal date change requests, including eligible off-cycle changes.
  • Qualifying Events - Loss of coverage is a qualifying event. If an existing Blue Shield group was written alongside Health Net, members losing coverage can transition to a Blue Shield plan.
  • Flexible Reinstatements - Groups that left Blue Shield can come back by reinstating their prior coverage within 60 days of their termination date – same group number, same member IDs, same great experience.

Download the Blue Shield Transition Flyer here


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.

CaliforniaChoice Bonus Program:

Earn $100 per enrolled member, with no cap and no limit, when eligible Health Net direct groups move to CaliforniaChoice! Groups sold through Dickerson are eligible for this program. 

  • Effective dates: 10/1/2026 - 1/1/2027
  • Bonus Amount: $100 per enrolled Health Net member, NO CAP!
  • Eligibility: Bonus applies to Health Net direct groups moving to CaliforniaChoice

Download the CaliforniaChoice Bonus Flyer here

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.

CCSB is here to help support your Health Net Groups and offering some easier eligibility, easier participation, broker bonus and fast portal enrollment.

  •  Easier Eligibility Verification- CCSB will accept a prior Health Net bill showing at least one enrolling subscriber in lieu of a DE-9 or payroll report. In addition:
    • Employees not listed on the carrier bill may be verified with a recent paystub or offer letter.
    • New group submission deadlines have been extended to the 15th of the month for effective dates from October 2026 through March 2027.
    • Owner only and husband and wife groups remain ineligible
  • Easy Participation - Only 70% of eligible employees must be enrolled in creditable coverage, regardless of where that coverage is obtained.
  • Fast Portal Enrollment - Moving a Health Net group to CCSB is simple: Upload the census. Select the plans. Enter the group information. Click Submit. That's it!
  • Earn More with the Broker Bonus Program - For qualifying new business with effective dates from July 1, 2026 through January 1, 2027, brokers can earn additional bonuses for enrolling eligible new small groups with CCSB.
  • Coverage for Out-of-State Employees - For groups with employees outside California, Blue Shield’s BlueCard® network provides access to a national provider network, helping employers support geographically diverse workforces.
  • No Administration Fees - CCSB does not charge administration fees, keeping costs predictable for clients.

Kaiser Permanente is here to help you retain clients, simplify transitions, and identify new sales opportunities with dedicated support and streamlined underwriting requirements.

  • A streamlined path for CA new business - For new small group submissions tied to Health Net transitions, include "Health Net" in the email subject line for Kaiser to quickly route.
    • No DE-9C required for 5 or less subscribers; a Health Net bill is sufficient (does not apply to groups purchasing a Kaiser Permanente PPO plan). 
    • Dedicated Small Group California support to help answer questions and guide submissions.
    • Digital tools are available through business.kp.org and administrative platforms to support ongoing group and employee administration.
  • Special Open Enrollment for Existing Kaiser Permanente Groups 
    • Anniversary Dates Change for Q1: Groups may move to a 1/1, 2/1, or 3/1 effective date to align with another carrier's renewal date.
    • Mid-year plan changes: Groups may request upgrades, downgrades, or plan additions within 60 days of losing Health Net coverage, and if adding a Kaiser Permanente PPO, Employer / Employee relationship documentation (either the DE-9C or payroll).

Download the Kaiser Permanente Flyer Here

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.


Need Help?

The Dickerson team is here to help brokers quote groups, compare carrier options, and develop transition strategies. 

Contact your sales rep today!