Update on 51–100 Transition to SBG

Western Region Brokers


Business meeting.

On January 1, 2016, the definition of small business group (SBG) changes to 1-100 employees. The redefinition is a provision of the Affordable Care Act. What it means to your clients depends on the state. We have you covered with the latest 51-100 transition to SBG news, plus details on our strategy to help protect your business – and keep it growing.


Arizona and Oregon

Your 51-100 groups with Health Net in Arizona and Oregon don’t have to make any changes. They will keep their 51-100 plan through 2016.

  • In Arizona, it will be business as usual for another year. Health Net will offer transitional relief as approved by the Arizona Department of Insurance.
  • We expect business as usual in Oregon as well, where it is presumed the state will offer a transitional relief option.


California and Washington

Neither California nor Washington is expected to offer transitional relief.


The good news is that Health Net has a solution for your clients that want to make the move, and for the ones that would rather wait awhile longer. You decide what’s best for your clients – we’ve got them covered with:

  • Early renewal. We’re offering early renewal for our current 51-100 groups who would like to postpone the move to SBG for another year. They can renew effective December 1, 2015.

For groups that have already confirmed their intention to renew with Health Net in 2015, early renewal quotes will be available in early August to help them decide if they want to stick with their 2015 plan(s) for another year.

  • Choice of SBG plans. Our 2016 portfolio is designed to make the transition to ACA-compliant plans easy.

As we head into the fall, your Health Net account manager will be on hand to help you and your clients decide whether to make the move in 2016 or wait another year.


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Stacy Madden