Health Net Faced Demands to Restore Assisted Living
A California senator is urging the insurer to reinstate essential care benefits for 3,000 Medicaid enrollees.
Updated on Sept. 23, 2026 in Eldercare
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Health Net recently terminated assisted living coverage for 3,000 California Medicaid enrollees, prompting a formal request for benefit restoration. The removal of these essential support services leaves affected residents responsible for significant new costs.
Why it matters
The loss of these services creates a financial barrier that threatens the stability of assisted living arrangements for vulnerable residents. Many individuals now face monthly out-of-pocket costs reaching $7,000 to maintain their current standard of care.
Official correspondence indicates that 3,000 California enrollees have been affected by the termination of Assisted Living Facility Transitions and Personal Care Homemaker Services. It remains unresolved whether the insurer will restore these benefits before the end of the year.
The players
Senator Adam Schiff
A U.S. Senator representing California who has intervened to challenge the reduction of Medicaid-supported assisted living benefits.
Health Net
A managed care organization providing health insurance plans and Medicaid-managed care services in California.
Eric Schmacker
The Interim CEO of Health Net who received a formal request to address the company's recent coverage terminations.
The details
Health Net removed Assisted Living Facility Transitions and Personal Care Homemaker Services from its Community Support benefits program. These services are typically used to help Medicaid enrollees manage daily living needs and transition between care settings. The abrupt termination forces these individuals to cover the costs of assisted living independently, which can reach $7,000 per month.
Timeline
September 23, 2026: Senator Adam Schiff requested the restoration of benefits.
January 1, 2027: Federal health care cuts are scheduled to take effect.
Health Landscape
This coverage reduction occurs as state Medicaid systems prepare for significant federal health care cuts scheduled for January 1, 2027. The situation highlights the increasing tension between managed care provider policies and the maintenance of essential long-term support services.
If you or a family member rely on Medicaid-funded assisted living, verify your current coverage status directly with your provider to ensure services remain active. Any unexpected changes to your care plan should be discussed with a doctor or legal advocate to explore potential local resources.
The takeaway
Maintaining access to assisted living is critical for long-term health stability during periods of policy shifts. Readers should proactively review their insurance policy documents for service changes and consult with a primary physician about resources if benefits are threatened.
What happens next
Federal health care cuts are scheduled to take effect on January 1, 2027.
Further reading
For more on managing long-term care resources, see our Eldercare section.
Source note: This article includes information reported by Gold Rush Cam.
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Should private health insurers be permitted to reduce coverage for assisted living services?
