Centene subsidiary Health Net is pulling out of the commercial employer group market in California and Oregon, the company confirmed to Becker’s.
“Health Net has made the decision to exit the traditional commercial group business in California and Oregon in order to focus on government sponsored healthcare,” a spokesperson for the insurer said in a statement. “This does not impact the marketplace, Medi-Cal/Medicaid or Medicare lines of business.”
Health Net began notifying employers and brokers Sept. 1. The market exit affects all small and large group HMO, PPO and POS products, with the last day of coverage being Feb. 28, 2027.
About two million of Health Net’s roughly three million California members are Medi-Cal enrollees. The company also offers individual and family plans through the state’s marketplace, Covered California, under its Ambetter brand and Medicare products through Wellcare.
Health Net was founded in 1979 and acquired by Centene in 2016 for $6.8 billion. The insurer employs more than 5,700 people across California.
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