Official Source: DHCS
DHCS Issues Health Net Continuity-of-Care and Corrective Action Update
- Source agency
- California Department of Health Care Services
- Source published
- Verified for this site
Summary
Coalition summaryDHCS addressed Health Net's termination of its Assisted Living Facility Transitions and Personal Care and Homemaker Services Community Supports, scheduled to take effect January 1, 2027. The DHCS letter also explains Health Net's responsibilities for authorizations, provider terminations, continuity of care, individual assessments, and safe transition planning. This coalition summary focuses on the ALFT provisions affecting RCFE providers.
Confirmed key facts
Health Net's termination of its Assisted Living Facility Transitions Community Support remains scheduled to take effect January 1, 2027.
Health Net committed to authorizing services through December 31, 2026 for members who continue to meet the applicable level-of-care and medical-necessity requirements.
An ALFT provider's contract may terminate before December 31, 2026. That provider-termination date is separate from Health Net's January 1, 2027 discontinuation of its ALFT Community Support.
If an ALFT provider is terminated before December 31, 2026, Health Net must either transition the member to another provider that can work with the member's ALF or RCFE, or arrange a Letter of Agreement with the existing provider.
For members whose authorization does not extend beyond their provider's termination date and who seek continued service, Health Net must conduct a continuity-of-care review and individually assess whether the member meets the applicable medical-necessity criteria.
When an ALFT provider is terminated before December 31, 2026, Health Net must ensure that members who continue to meet the applicable ALFT level-of-care and medical-necessity requirements can continue receiving the service through December 31, 2026 through an appropriate provider arrangement.
Health Net must give affected members at least 30 days' advance notice before an ALFT provider termination takes effect.
DHCS imposed a Corrective Action Plan on Health Net on August 25, 2026 and stated that it is continuing to monitor Health Net's compliance, individual assessments, provider arrangements, and transition planning.
Important context
This update does not mean Health Net canceled its planned January 1, 2027 termination, and it does not guarantee continued authorization for every member. Individual eligibility, level-of-care requirements, medical necessity, authorization dates, and transition circumstances still apply. Under the DHCS letter, qualifying continuation described here does not extend beyond December 31, 2026.
Primary source
Official DHCS letter dated August 26, 2026. The document is on file with the coalition and is available upon request.
The document is issued by the California Department of Health Care Services. The coalition is not the publisher of this document, is not a government agency, and does not provide legal or medical advice.
