Health Net considers selloff of assets, stock

Stung by a financially-bruising 2008, Health Net is considering a sale of some of its business in Arizona and the Northeast, according to the company's CEO and president Jay Gellert. The two regions, which include about 700,000 members, are expected to generate combined revenues of $3.7 billion to $3.8 billion this year. However, costs there are about 5 percent higher than the median for the competition, so some fine-turning is necessary.

Health Net is looking at an asset sale, stock sale or partnership in those two markets, to close before the end of the first quarter. (In other words, very quickly!) Gellert wants to collect $500 million in risk-based capital investment, which the company needs to operate in those areas through the end of 2009.

To learn more about Health Net's plans:
- read this Modern Healthcare piece

Related Articles:
Fear and trembling in health plan land
Health Net may have broken federal laws, defrauded seniors
Health Net reinstating 926 California policyholders
Health Net charged $41M for underpaying out-of-network claims