California sanctions insurer after it cut assisted living coverage to thousands

California regulators have sanctioned the insurer Health Net following its abrupt decision to terminate assisted living services for thousands of low-income residents. The sudden coverage cuts left both patients and care providers scrambling.

In response, the state issued a corrective action plan requiring the insurer to overhaul its handling of the terminations. As part of this state mandate, Health Net is required to extend services to those affected.