Employee notice templates, free to use.
Three communications for a carrier change: the announcement, the employee FAQ, and the payroll deduction notice. No email required — fill in the bracketed fields and send.
Five things that decide how this lands.
Say 'you are not losing coverage' in the first two sentences
Employees skim. If the opening reads as bad news about health insurance, they stop reading and start worrying, and you spend the next week answering the same question individually.
Name the reason, and make clear it isn't about the company
Absent an explanation, people assume cost-cutting. Saying plainly that Health Net exited the California market removes that read and takes the decision off the company.
Give one named human, not an inbox
A person's name and direct line produces better questions earlier. A generic HR alias produces silence, then a crisis at the effective date.
Raise deductible credit before the filing window closes
Prior-carrier deductible credit is available from most California carriers, but only on request and only inside a filing window of roughly 30 to 90 days. Employees will not know to ask. Naming it in the announcement is what gets you the Explanation of Benefits statements in time to actually file.
Send it in the languages your workforce uses
A benefits notice only counts as delivered if it was understood. Translate the announcement and the FAQ if any meaningful share of your team reads another language more comfortably.
The templates
Replace everything in [BRACKETS]. Your sunset date is in the notice Health Net sent you — for most groups it's February 28, 2027, but confirm yours rather than assuming.
1. Announcement letter
Leads with the fact that coverage continues. Employees hear 'health plan change' and assume they are losing coverage, so the second sentence has to remove that fear.
Subject: Important update about your health insurance — action needed by [ELECTION DEADLINE] Hi [FIRST NAME], Our health insurance carrier is changing, and you will need to make a plan election by [ELECTION DEADLINE]. First, the important part: you are not losing health coverage. [COMPANY] is continuing to offer group medical coverage, and we have already secured a replacement plan. Here's what happened. Health Net is discontinuing all employer group medical plans in California. Our Health Net coverage ends [YOUR SUNSET DATE]. This is a company-wide decision by Health Net that affects employers across the state — it is not related to our claims, our costs, or anything about our group. Starting [NEW EFFECTIVE DATE], our medical coverage moves to [NEW CARRIER]. What you need to do: 1. Review the plan materials attached (or at [LINK]). 2. Check whether your doctors are in the new network at [PROVIDER LOOKUP LINK]. 3. If you take prescription medication regularly, check it against the new plan's drug list at [FORMULARY LINK]. 4. Complete your election by [ELECTION DEADLINE] at [ENROLLMENT LINK]. We are holding enrollment meetings on [DATES AND TIMES], including a recorded session if you cannot attend live. A few things to know up front: - Your new ID cards will arrive before [NEW EFFECTIVE DATE]. Do not throw away your Health Net card until then. - If you are currently in treatment, or you have an approved prior authorization, contact [HR CONTACT] this week. We can start that process with the new carrier now rather than at the effective date. - If you have already paid toward your deductible this year, tell [HR CONTACT] now. Most California carriers will credit a deductible you already satisfied with Health Net, but it is not automatic — it has to be requested with your Explanation of Benefits statements, and there is a filing deadline. Out-of-pocket maximum amounts usually cannot be credited. We would rather submit this for you than have you lose it. - Your payroll deduction will change to [NEW AMOUNT] per [PAY PERIOD] beginning with the [DATE] paycheck. Questions about any of this go to [HR CONTACT NAME] at [EMAIL / PHONE]. No question is too small — we would much rather answer it now than have you find out at the pharmacy counter. [SENDER NAME] [TITLE], [COMPANY]
2. Employee FAQ
These are the questions employees ask in the enrollment meeting. Answering them in writing first cuts the meeting in half.
EMPLOYEE FAQ — HEALTH PLAN CARRIER CHANGE Q: Am I losing my health insurance? A: No. [COMPANY] is continuing group medical coverage. Only the insurance carrier is changing, from Health Net to [NEW CARRIER], effective [NEW EFFECTIVE DATE]. Q: Why is this happening? Did the company do something? A: No. Health Net decided to stop offering employer group medical plans in California entirely. This affects employers across the state, not just us. Our coverage under Health Net ends [YOUR SUNSET DATE]. Q: Will I keep my doctor? A: It depends on whether your doctor participates in the new network. Check at [PROVIDER LOOKUP LINK] before the election deadline. If your doctor is not in the new network, contact [HR CONTACT] — depending on the plan options available, there may be an alternative. Q: What happens to my prescriptions? A: Each plan has its own drug list. Your medication may be covered at a different cost, may require approval, or in some cases may not be covered. Check [FORMULARY LINK] and tell [HR CONTACT] right away if something you take is affected. Q: I already met my deductible this year. Does that carry over? A: Possibly — but only if we ask for it. Most California carriers offer what's called prior-carrier deductible credit, which applies the deductible you already satisfied with Health Net to your new plan. It is never automatic: we have to submit your Explanation of Benefits statements to the new carrier, usually within 30 to 90 days of the effective date. A few limits apply — it generally requires the same plan type (HMO to HMO, PPO to PPO), it typically covers the medical deductible only and not your out-of-pocket maximum, and prescription deductibles often don't transfer. If you have spent anything toward your deductible this year, contact [HR CONTACT] so we can start this for you. Q: I'm in the middle of treatment. What do I do? A: Contact [HR CONTACT] this week, before the effective date. Ongoing treatment and existing approvals need to be set up with the new carrier, and starting early avoids an interruption. Q: I'm scheduled for surgery after [NEW EFFECTIVE DATE]. Is it still covered? A: It will be handled under the new plan, and the approval likely needs to be re-established. Tell [HR CONTACT] as soon as possible so we can work it with the new carrier. Q: Will my paycheck change? A: Yes, your medical deduction changes to [NEW AMOUNT] per [PAY PERIOD] starting with the [DATE] paycheck. Your plan materials show the full cost breakdown. Q: What if I don't do anything by the deadline? A: [DESCRIBE YOUR DEFAULT — e.g., "You will be enrolled in [DEFAULT PLAN] at the employee-only tier" or "You will not have medical coverage as of [NEW EFFECTIVE DATE]."] Please do not skip this. Q: When do I get my new card? A: Before [NEW EFFECTIVE DATE]. Keep your Health Net card until then — it is valid through [YOUR SUNSET DATE]. Q: Who do I ask? A: [HR CONTACT NAME], [EMAIL], [PHONE].
3. Payroll deduction notice
The step most employers skip. A deduction change nobody explained reads as a payroll error, and it generates more tickets than the carrier change itself.
Subject: Your [DATE] paycheck — updated medical deduction Hi [FIRST NAME], This is a heads-up that your [DATE] paycheck reflects the new medical insurance deduction, following our carrier change to [NEW CARRIER] effective [NEW EFFECTIVE DATE]. Your previous deduction: [OLD AMOUNT] per [PAY PERIOD] Your new deduction: [NEW AMOUNT] per [PAY PERIOD] Coverage tier: [TIER] Plan: [PLAN NAME] This is not an error, and nothing else about your pay has changed. If the amount above does not match what you elected, or the tier is wrong, contact [HR CONTACT NAME] at [EMAIL] and we will correct it and adjust on the next payroll. [SENDER NAME] [TITLE], [COMPANY]
Communication questions.
What should an employer tell employees about the Health Net exit?
Lead with the fact that coverage is continuing and only the carrier is changing, then state the reason plainly: Health Net is discontinuing all employer group medical plans in California. Give employees the new effective date, a provider-lookup link to check their doctors, a formulary link to check medications, the new payroll deduction amount, an election deadline, and one named person to contact.
When should we notify employees about a carrier change?
Plan on at least 60 days before the new plan's effective date. Under PHS Act §2715(d)(4), a material modification to plan terms that is not reflected in the most recently provided Summary of Benefits and Coverage requires notice to enrollees no later than 60 days before it takes effect, and a carrier change mid-plan-year will generally meet that description. Separately, ERISA requires a summary of any material reduction in covered services or benefits no later than 60 days after the change is adopted, under 29 CFR §2520.104b-3(d). Sixty days is also simply better practice: it gives employees time to check physicians and medications and to raise continuity-of-care issues while something can still be done. Confirm your specific obligations with your broker or counsel — this is general information, not legal advice.
Is the employer required to notify employees when the carrier changes?
In practice, yes — there are two federal disclosure rules that a carrier change typically engages, in addition to whatever your carrier contract requires. First, PHS Act §2715(d)(4) requires notice to enrollees at least 60 days before a material modification to plan terms takes effect where that change is not reflected in the most recently provided Summary of Benefits and Coverage. Second, 29 CFR §2520.104b-3(d) requires an ERISA summary of material reduction in covered services or benefits no later than 60 days after the change is adopted. Whether a given change counts as material, and how these interact with a change made at annual renewal rather than mid-year, depends on your plan documents and facts — confirm with your broker or counsel. This is general information, not legal advice.
Do employees keep their deductible when the carrier changes?
Often they can, but only if someone asks. Most California group carriers — including Health Net itself — operate a prior-carrier deductible credit program that applies a deductible satisfied with the previous carrier to the new plan. It is never automatic: it requires Explanation of Benefits statements or an itemized accumulator report from the prior carrier, filed within roughly 30 to 90 days of the new effective date depending on the carrier. Typical limits are that the plan type must match (HMO to HMO, PPO to PPO, HDHP to HDHP), only members enrolled as of the takeover date qualify, credit is capped at the new plan's deductible, and out-of-pocket maximum and prescription deductible accumulations are usually not credited. Because affected coverage ends February 28, 2027, most groups will be mid-plan-year, so this is worth handling deliberately rather than assuming a reset. Confirm the specifics with your replacement carrier.
Can we use these templates as-is?
Yes, they are free to use and adapt — fill in the bracketed fields with your own dates, carrier, amounts, and contact. Have your broker or counsel review the final version against your plan documents before sending, since plan specifics and notice obligations vary by employer.
Or hand the whole enrollment to us
We write the communications, run the meetings live and recorded, capture elections, load them into payroll, and confirm the first deduction is right. HR keeps oversight; we own the execution.
More on the Health Net transition
Affected group coverage ends February 28, 2027 unless your contract says otherwise. These cover the decisions that follow from that.
- Health Net is exiting California's group marketThe announcement, the confirmed timeline, and what is and isn't affected.Read it
- Replacement carrier options for California employersHow to compare the California group market on network match, formulary, and funding — not just rate.Read it
- The transition checklist, by dateA working plan back from your own sunset date, with who owns each step.Read it
Sources
- Health Net — Commercial Group Exit and Transition InformationPrimary
- Word & Brown — Health Net Group Market Exit
- Becker's Payer Issues — Centene's Health Net to exit commercial group market in 2 states
- California DMHC — Individual and Small Group Aggregate Premium Rate ReportPrimary
- CMS — ACA Implementation FAQs Set 5, Q4 (60-day advance notice of material modification, PHS Act §2715(d)(4))Primary
- 29 CFR §2520.104b-3(d) — Summary of material reduction in covered services or benefitsPrimary
- Health Net — Prior-Carrier Medical Deductible Credit (small business group)Primary
- Blue Shield of California — Small Group Underwriting Guidelines (prior deductible credit)Primary
- UnitedHealthcare — California Small Business Deductible Credit Form and guidelinesPrimary
Facts on this page were last verified against these sources on 2026-09-21. Carrier transition guidelines can change; confirm your group's specific sunset date in the notice Health Net sent you. This page is general information for California employers, not legal, tax, or ERISA advice.