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Californians face eviction as insurer cancels assisted living benefit

The move could leave members facing eviction or transfers to other care settings, while state regulators say services may continue through Dec. 31.

  • Health Net is canceling its optional CalAIM assisted-living benefit for approximately 3,500 Medi-Cal members, effective year-end. Families like Matt Johnstone's must now scramble to find alternative care for elderly relatives.
  • According to Health Net's termination notice filed with state regulators, an increase in members moving from home to assisted living rather than nursing homes fueled the exit. The insurer reviews this optional CalAIM benefit annually to manage portfolio risk.
  • Providers report Health Net notified contractors that services end October 7, yet state regulators maintain members are entitled to coverage through December 31 if clinically appropriate. Health Net must provide 30 days' notice before termination.
  • Pauline Shatara, deputy director of California Advocates for Nursing Home Reform, warned that insufficient protections risk patient evictions. The state's separate assisted living program faces an 18,000-person cap and multi-year waitlist, offering little relief.
  • In an unsigned statement, Health Net disputed that patients would be left unhoused, asserting it is developing individualized transition plans. Affected members like Johnstone remain uncertain, as advocates emphasize the state lacks sufficient safeguards.
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‘There is nothing else’: Californians face eviction as insurer cancels assisted living benefit

Four weeks ago, Matt Johnstone received a call from the board-and-care facility in North Hollywood where his 89-year-old father lives.

·New York, United States
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Cal Matters broke the news in Sacramento, United States on Monday, August 17, 2026.
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