The threat of eviction looms heavy over the heads of many long-term care facility residents. In the past, evictions have been carried out illegally and at very little to no notice to families and residents. With limited beds available, waiting lists at some facilities, and families unable to care for loved ones at home, eviction can often mean, essentially, homelessness. It’s a scary prospect, yet one that many are facing in California. Thousands will be affected at the end of 2026 as Health Net cancels its vital assisted living benefits.
What is Health Net?
As you may know, there are many supplemental plans that can be used alongside Medicare. In California, Medi-Cal is often paired with Health Net. This is an insurer that works in tandem with Medi-Cal and one of their services was assisted living benefits.
What’s worse, they are not alone. According to an article published by Cal Matters, “CalViva Health and Community Health Plan of Imperial Valley, which contract with Health Net to provide services, have also notified the state of their intent to discontinue assisted living benefits.”
The impact? An estimated 3,500 residents will potentially no longer be able to afford to live in assisted living.
Thousands Affected by Health Net Cancellation
Medi-Cal and the insurers who partner with the social benefits program are instituted to assist low-income individuals and those with disabilities. This means the majority of the 3,500 residents who may need to find alternative housing and care have been diagnosed with dementia, Alzheimer’s, or other conditions that severely limit their ability to care for themselves. These conditions also make it difficult for families to take on their daily care.
In desperation, residents may be floated between hospitals and short-term rehabilitation or care facilities. Or they may simply be dropped off at emergency rooms.
“Senior advocates… say the state did not include enough consumer protections to ensure patients stay housed if plans decide to terminate coverage. State regulators dispute that characterization.”
The primary problem being that there is confusion surrounding this sudden change and very few, if any, alternatives easily available.
Assisted living support is part of the CalAIM efforts to improve Medi-Cal services and provides a majority of the funding responsible for sustaining 24-hour care.
According to the Cal Matters article, a Health Net spokesperson claims residents will not be left without housing, but will be able to stay where they are through their “individual authorization date, and could be transitioned to nursing homes, back home with in-home supportive services, or to other programs.”
The Why Behind the Change
While this change is jarring and could cause some issues for residents come the end of 2026, some internal documents offer an explanation for the change. Primarily a program meant to help the state save some money, Health Net’s assisted living assistance has not proven to be economical.
Additionally, the company’s reports show that the financial aid has also not improved care or services for residents. “The plan also blames regulators for changing program guidelines that had previously allowed Health Net to limit community transitions.”
Moving Forward
At the end of the day, the news and transition have been confusing. While the Health Net financial aid may not have done everything it was meant to, it was still a lifeline for residents and families. This news comes as a shock, especially for those with memory care needs as moves and transitions to new environments and care teams can worsen their health dramatically.
As the state finds solutions, families are asking for more information and transparency, as well as financial alternatives that will keep their loved ones safe and well cared for in the coming year.
Learn more about Resident Rights Violations in Nursing Homes and Must-Know Nursing Home Discharge Facts.
If you or a loved one have been the victim of nursing home abuse or neglect, call Gharibian Law (877-460-1187) for a FREE consultation and the best legal representation.
https://calmatters.org/health/2026/08/assisted-living-healthnet-coverage/
Thousands Affected by Health Net Cancellation
The threat of eviction looms heavy over the heads of many long-term care facility residents. In the past, evictions have been carried out illegally and at very little to no notice to families and residents. With limited beds available, waiting lists at some facilities, and families unable to care for loved ones at home, eviction can often mean, essentially, homelessness. It’s a scary prospect, yet one that many are facing in California. Thousands will be affected at the end of 2026 as Health Net cancels its vital assisted living benefits.
What is Health Net?
As you may know, there are many supplemental plans that can be used alongside Medicare. In California, Medi-Cal is often paired with Health Net. This is an insurer that works in tandem with Medi-Cal and one of their services was assisted living benefits.
What’s worse, they are not alone. According to an article published by Cal Matters, “CalViva Health and Community Health Plan of Imperial Valley, which contract with Health Net to provide services, have also notified the state of their intent to discontinue assisted living benefits.”
The impact? An estimated 3,500 residents will potentially no longer be able to afford to live in assisted living.
Thousands Affected by Health Net Cancellation
Medi-Cal and the insurers who partner with the social benefits program are instituted to assist low-income individuals and those with disabilities. This means the majority of the 3,500 residents who may need to find alternative housing and care have been diagnosed with dementia, Alzheimer’s, or other conditions that severely limit their ability to care for themselves. These conditions also make it difficult for families to take on their daily care.
In desperation, residents may be floated between hospitals and short-term rehabilitation or care facilities. Or they may simply be dropped off at emergency rooms.
“Senior advocates… say the state did not include enough consumer protections to ensure patients stay housed if plans decide to terminate coverage. State regulators dispute that characterization.”
The primary problem being that there is confusion surrounding this sudden change and very few, if any, alternatives easily available.
Assisted living support is part of the CalAIM efforts to improve Medi-Cal services and provides a majority of the funding responsible for sustaining 24-hour care.
According to the Cal Matters article, a Health Net spokesperson claims residents will not be left without housing, but will be able to stay where they are through their “individual authorization date, and could be transitioned to nursing homes, back home with in-home supportive services, or to other programs.”
The Why Behind the Change
While this change is jarring and could cause some issues for residents come the end of 2026, some internal documents offer an explanation for the change. Primarily a program meant to help the state save some money, Health Net’s assisted living assistance has not proven to be economical.
Additionally, the company’s reports show that the financial aid has also not improved care or services for residents. “The plan also blames regulators for changing program guidelines that had previously allowed Health Net to limit community transitions.”
Moving Forward
At the end of the day, the news and transition have been confusing. While the Health Net financial aid may not have done everything it was meant to, it was still a lifeline for residents and families. This news comes as a shock, especially for those with memory care needs as moves and transitions to new environments and care teams can worsen their health dramatically.
As the state finds solutions, families are asking for more information and transparency, as well as financial alternatives that will keep their loved ones safe and well cared for in the coming year.
Learn more about Resident Rights Violations in Nursing Homes and Must-Know Nursing Home Discharge Facts.
If you or a loved one have been the victim of nursing home abuse or neglect, call Gharibian Law (877-460-1187) for a FREE consultation and the best legal representation.
https://calmatters.org/health/2026/08/assisted-living-healthnet-coverage/