Health Net is exiting California's commercial group medical markets. Small groups have a CalChoice pathway that keeps Health Net through 1/1/27. Either way, deductions, plan codes and enrollment files need remapping. Payroll readiness checklist · Read the transition guide

Resource

California group renewals: where to research, what to check

Official state sources for 2027 group medical filings, plus the questions to ask before any plan change reaches payroll. We're a payroll firm, not a broker — this is a starting point, not a quote.

Small group or large group?

1–100 employees

California small-group market. State product filings for small group apply.

101+ employees

California large-group market. How your renewal is priced depends on the carrier, product, and underwriting method.

What we've seen in practice. The 1–100 line is California's statutory small-group definition, where carriers rate from a single risk pool. But in Blue Ocean's experience, many carriers pool or heavily blend experience for groups under roughly 300 employees, because an individual group's claims may have limited credibility. That means a 101–300 group is not necessarily experience-rated, and its own claims may not reliably drive its renewal. Underwriting method varies by carrier and product — the only way to know is to evaluate the actual renewal.

Official sources

A filing is not your renewal quote. Filings show a carrier's products and rates at the market level. Your group's renewal depends on your census, location, plan choices, and carrier underwriting — only a carrier or broker quote reflects your group.

Before comparing plans, check four things

  • Network

    Confirm your employees' doctors, hospitals, and medical groups are in the new plan's network — not just the carrier's name.

  • Formulary

    Check that key prescriptions are covered and at what tier. Formularies differ between plans from the same carrier.

  • Summary of Benefits and Coverage (SBC)

    Compare SBCs side by side: deductibles, out-of-pocket maximums, copays, and coinsurance.

  • Effective date

    Match the plan's effective date to your renewal and payroll calendar so deductions, codes, and enrollment files line up.

Related resources

Common questions

What counts as small group versus large group in California?
In California, employers with 1–100 employees are generally in the small-group market, where carriers rate from a single risk pool, and employers with 101 or more are in the large-group market. But the statutory line is not the whole story: in our experience, many carriers pool or heavily blend experience for groups under roughly 300 employees because an individual group's claims may have limited credibility. Whether a 101–300 group's own claims drive its renewal depends on the carrier, product, and underwriting method — so evaluate the actual renewal rather than assuming it is experience-rated.
Is a public rate filing my renewal quote?
No. A filing describes a carrier's products and rates at a market level. Your actual renewal depends on your group's census, location, plan selection, and carrier underwriting. Only a carrier or broker quote reflects your group.
Does Blue Ocean Payroll sell health insurance?
No. We handle the payroll and HCM side of a benefits change — deductions, plan codes, and enrollment file timing. For plan design and carrier questions, our sister company Blue Ocean Benefits can help.

Plan change coming? Get payroll ready.

We'll walk through deductions, plan codes, and enrollment timing so your first payroll on the new plan is right.

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