‘A disaster’: Thousands of Californian retirees face eviction as insurer axes assisted living benefits. Are you safe?

Thousands of low-income retirees in California are at risk of losing their assisted living benefits as insurer Health Net plans to discontinue the support by the end of 2026, according to CalMatters. The affected individuals, many of whom have dementia or other conditions requiring around-the-clock care, could face eviction from their facilities.

Pauline Shatara, deputy director of California Advocates for Nursing Home Reform, described the situation as a "disaster," noting that some assisted living facilities have already reported residents being taken to emergency rooms. Health Net disputes that patients will simply be left without care, stating they are working with members and providers on individual transition plans.

However, families have expressed frustration over the lack of clear information about their options. The elimination of this benefit is part of California's broader CalAIM initiative, which aims to help Medi-Cal members remain healthier and avoid more expensive care. While the state clarifies that eligible members can receive ongoing services through the Community Supports program, insurers have the discretion to determine which supports they offer, potentially leaving families with unexpected costs.