Why is Health Net leaving the California small business market?

Carriers enter and exit markets based on cost and strategy. For 2027, Health Net is withdrawing from California's small-group (small business) market, effective January 2027. It is also exiting the Medigap market, while remaining in Covered California for individuals.

What do I need to do if my company is on a Health Net small business plan?

For small employers there is no automatic replacement; your Health Net group coverage ends, so you must actively move to a new carrier for 2027 or your employees have a coverage gap on January 1. It is worth comparing all remaining small-group carriers to find the best value, which a licensed agent can do for you at no cost.

What are the best alternatives to Health Net for small business?

With Health Net exiting, the core California small-group carriers are Kaiser, Anthem Blue Cross, Blue Shield of California, and UnitedHealthcare, plus strong regional options in some areas such as Sharp Health Plan and Western Health Advantage. Most groups move to another fully insured plan; a level-funded option can also be compared if you want to explore cost control.

Dennis Jarvis, licensed California health insurance agent

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California Small Business · 2027 Plan Year

Health Net is leaving California's small business market in 2027. Here's your move.

Q: Will my employees lose their doctors?

Not necessarily. Before recommending a replacement, we check that your employees' doctors and hospitals are in-network on each option, so you can keep the providers that matter most.

Q: Does your help cost anything?

No. We are independent, licensed California agents paid by the carriers, not by you. We shop every remaining option and handle the switch at no cost, and you pay the same rate as going direct.

✓ Reviewed and updated for the current plan year

Effective January 2027, Health Net is leaving California's small-group (small business) market. For small employers there's no automatic replacement ... your group coverage simply ends, and you have to choose a new carrier to keep your team covered. The upside: it's also the ideal moment to re-shop and find better value. We do that for you, free.

Find our best alternatives → Talk to Dennis

Licensed CA agent since 1999 · Independent · No cost · We never cold-call you

What's happening

Health Net is withdrawing from California's small-group market effective January 2027. For small employers this isn't a plan swap ... there's no mapped or automatic replacement. Your Health Net group coverage ends, and you have to actively move your company to a new carrier for 2027. Do nothing and your employees have no coverage come January 1.

That makes acting early the whole game ... and since you're choosing from scratch anyway, it's the perfect moment to compare the market and land the best value instead of grabbing the first quote. (Health Net is also exiting Medigap; it stays in Covered California for individuals.)

There's no automatic replacement ... so choose on purpose

Because nothing is mapped for you, you're starting fresh ... which is actually good news. You get to pick the carrier that's genuinely the best fit and value for your group, not whatever happens to land in your inbox. Your team's ages, location, and which doctors they use all change which carrier wins, and the only way to know is to compare them side by side.

We're independent, so we're not pushing one carrier. We quote your group across every remaining small-group option and show you the real numbers ... that's the whole point of using us, and it costs you nothing. The one thing you can't do is let the deadline pass.

Your California small-group alternatives for 2027

With Health Net out, these are the core small-business carriers we'll shop for you:

Kaiser Permanente

Often hard to beat on price if the integrated HMO model works for your team ... one-stop care, strong digital tools.

Anthem Blue Cross

Large PPO network with BlueCard for out-of-state employees, plus “Employee Elect” cafeteria-style plan choice.

Blue Shield of California

Very competitive on the small-group market, with a strong PPO and HMO/HSA options.

UnitedHealthcare

A broad, strong small-group option statewide ... plus level-funded (and Surest) plans for cost control.

In some areas there are also strong regional carriers (Sharp Health Plan, Western Health Advantage, Chinese Community Health Plan), and through CalChoice you can offer multiple carriers so employees each pick their own.

Most groups moving off Health Net simply go to another fully insured plan. If you'd also like to explore cost control, we can quote a level-funded option alongside it ... no obligation.

How we find your best value

Here's exactly what we do when you hand us your group ... at no cost to you:

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Shop every carrier

We quote your census across all the remaining small-group carriers (and a level-funded option if you want one) ... so you see the whole market, not one quote.

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Compare at the Silver level

We line plans up at a common benefit level to see who's actually priced best for your team's demographics. It really varies group to group.

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Check your networks

We confirm your employees' doctors and hospitals are in-network before you commit ... so the switch doesn't cost anyone their doctor.

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Handle the switch

We manage the paperwork and the transition off Health Net so there's no gap in your coverage for 2027.

See your Health Net alternatives

Send a few basics and we'll come back with your best small-group options ... traditional and level-funded ... priced for your group. No cost, no pressure.

Prefer to talk first? Book a free call · 800-320-6269 · Live chat

Common questions

▸ Why is Health Net leaving the small business market?

Carriers enter and exit markets based on cost and strategy. For 2027, Health Net is withdrawing from California's small-group market effective January 2027. It's also exiting Medigap, while staying in Covered California for individuals. We'll confirm exactly what your group has and what's available to replace it.

▸ What do I need to do, and by when?

You'll need a new carrier in place before your Health Net coverage ends for 2027. Remember, there's no automatic replacement ... if you do nothing, your employees have a coverage gap on January 1. The sooner we quote your group, the more room you have to compare options and keep your employees' doctors.

▸ What are the best alternatives to Health Net?

The core California small-group carriers now are Kaiser, Anthem Blue Cross, Blue Shield, and UnitedHealthcare, plus strong regional options in some areas. Most groups move to another fully insured plan; if you want to explore cost control, a level-funded option can be quoted too. The “best” one depends entirely on your group ... which is why we quote them all.

▸ Will my employees lose their doctors?

Not necessarily. Before recommending anything, we check that your employees' doctors and hospitals are in-network on each option, so you can keep the providers that matter most.

▸ Does your help cost anything?

No. We're independent, licensed California agents paid by the carriers, not by you. We shop every remaining option and handle the switch at no cost ... you pay the same rate as going direct.

Related help & next steps

Get a small business quoteCompare your real options Level-funded health insuranceFixed cost, potential money back Level funded vs. fully insuredWhich wins for your group How small business insurance worksThe complete guide Compare California carriersAcross all three markets

Let's find your best Health Net replacement

A quick, free review with a licensed, independent California agent ... we'll shop every remaining small-group carrier and level-funded option and find the best value for your team.

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