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At close · Fri, Aug 14, 2026
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HomeInsuranceIndustry & DealsHealth Net to end assisted living benefit for about 3,…

Health Net to end assisted living benefit for about 3,500 Medi-Cal patients

The insurer plans to discontinue the benefit at the end of 2026, with families warning some residents may be moved to emergency rooms or nursing homes.

Thousands of low-income retirees in California could face displacement from assisted living facilities after Health Net decided to eliminate a Medi-Cal benefit that helps cover assisted living care, according to Yahoo Finance citing CalMatters.

Health Net will discontinue its assisted living benefit at the end of 2026, affecting about 3,500 Medi-Cal patients, many of whom are elderly and have conditions that require around-the-clock care, the outlet reported.

California Advocates for Nursing Home Reform deputy director Pauline Shatara said the change could be a disaster, adding that some facilities have reported residents being dropped off at emergency rooms. Health Net, however, disputed that patients would be left without care.

The insurer told CalMatters it is working with members and providers on individual transition plans, which could include moving residents to nursing homes, returning them home with supportive services, or connecting them with other programs. Yahoo Finance also noted the benefit is part of California's CalAIM initiative, under the state Department of Health Care Services Community Supports program.

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