California DHCS Selects Health Net for Dual Eligibles Pilot in Los Angeles and San Diego Counties

As experienced Medicaid and Medicare managed care contractor, Health Net well positioned to service the dual eligibles population

LOS ANGELES--(BUSINESS WIRE)-- Earlier today, the California Department of Health Care Services selected Health Net, Inc. (NYSE:HNT) to participate in its proposed dual eligibles demonstration pilot for both Los Angeles County and San Diego County. The state of California is pursuing new approaches to service the “dual eligibles” population – beneficiaries that are eligible for both Medicare and Medicaid. Following a period for stakeholder input, California will submit this proposal to the Centers for Medicare & Medicaid Services for approval.

“Health Net believes that this pilot will provide better care coordination more efficiently and cost-effectively for the dual eligibles population. This could help improve health outcomes, care experiences and quality of life for thousands of dual eligible beneficiaries,” said Steve Tough, president of Health Net’s Government Programs.

“We are committed to improving health care access, quality, cost containment and delivery coordination,” Tough continued. “With our strong foundation in Los Angeles and San Diego Counties and strong relationships with provider groups, we believe that Health Net is well positioned to participate in this integrated care delivery pilot.”

Based on membership, Health Net is the largest provider of state-sponsored health plans in California, serving more than one million members through its Medicaid and Healthy Families programs. As of December 31, 2011, Health Net had approximately 468,000 Medicaid members in Los Angeles County and approximately 35,000 Medicaid members in San Diego County.

Additional information can be found at http://www.dhcs.ca.gov/provgovpart/Documents/Duals/Proposal_Documents/HealthNet.pdf.

About Health Net

Health Net, Inc. is a publicly traded managed care organization that delivers managed health care services through health plans and government-sponsored managed care plans. Its mission is to help people be healthy, secure and comfortable. Health Net, through its subsidiaries, provides and administers health benefits to approximately 6.0 million individuals across the country through group, individual, Medicare (including the Medicare prescription drug benefit commonly referred to as “Part D”), Medicaid, U.S. Department of Defense, including TRICARE, and Veterans Affairs programs. Health Net’s behavioral health services subsidiary, Managed Health Network, Inc., provides behavioral health, substance abuse and employee assistance programs to approximately 5.0 million individuals, including Health Net’s own health plan members. Health Net’s subsidiaries also offer managed health care products related to prescription drugs, and offer managed health care product coordination for multi-region employers and administrative services for medical groups and self-funded benefits programs.

For more information on Health Net, Inc., please visit Health Net’s website at www.healthnet.com.

Cautionary Statements

Health Net, Inc. and its representatives may from time to time make written and oral forward-looking statements within the meaning of the Private Securities Litigation Reform Act (“PSLRA”) of 1995, including statements in this and other press releases, in presentations, filings with the Securities and Exchange Commission (“SEC”), reports to stockholders and in meetings with investors and analysts. All statements in this press release, other than statements of historical information provided herein, may be deemed to be forward-looking statements and as such are intended to be covered by the safe harbor for “forward-looking statements” provided by PSLRA. These statements are based on management’s analysis, judgment, belief and expectation only as of the date hereof, and are subject to changes in circumstances and a number of risks and uncertainties. Without limiting the foregoing, statements including the words “believes,” “anticipates,” “plans,” “expects,” “may,” “should,” “could,” “estimate,” “intend,” “feels,” “will,” “projects” and other similar expressions are intended to identify forward-looking statements. Actual results could differ materially from those expressed in, or implied or projected by the forward-looking information and statements due to, among other things, health care reform and other increased government participation in and regulation of health benefits and managed care operations, including the ultimate impact of the Affordable Care Act, which could materially adversely affect Health Net’s financial condition, results of operations and cash flows through, among other things, reduced revenues, new taxes, expanded liability, and increased costs (including medical, administrative, technology or other costs), or require changes to the ways in which Health Net does business; rising health care costs; continued slow economic growth or a further decline in the economy; negative prior period claims reserve developments; trends in medical care ratios; membership declines; unexpected utilization patterns or unexpectedly severe or widespread illnesses; rate cuts and other risks and uncertainties affecting Health Net’s Medicare or Medicaid businesses; litigation costs; regulatory issues with federal and state agencies including, but not limited to, the California Department of Managed Health Care, the Centers for Medicare & Medicaid Services, the Office of Civil Rights of the U.S. Department of Health and Human Services and state departments of insurance; operational issues; failure to effectively oversee our third party vendors; noncompliance by Health Net or Health Net’s business associates with any privacy laws or any security breach involving the misappropriation, loss or other unauthorized use or disclosure of confidential information; any liabilities of the Northeast business that were incurred prior to the closing of its sale as well as those liabilities incurred through the winding-up and running-out period of the Northeast business; investment portfolio impairment charges; volatility in the financial markets; and general business and market conditions. Additional factors that could cause actual results to differ materially from those reflected in the forward-looking statements include, but are not limited to, the risks discussed in the “Risk Factors” section included within Health Net’s most recent Annual Report on Form 10-K filed with the SEC and the risks discussed in Health Net’s other filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements. Except as may be required by law, Health Net undertakes no obligation to address or publicly update any of its forward-looking statements to reflect events or circumstances that arise after the date of this release.



CONTACT:

Health Net, Inc.
Investor Contact:
Angie McCabe, 818.676.8692
[email protected]
or
Media Contacts:
Margita Thompson, 818.676.7912
[email protected]
or
Olga Gallardo, 818.676.8758
[email protected]

KEYWORDS:   United States  North America  California

INDUSTRY KEYWORDS:   Seniors  Women  Health  Public Policy/Government  State/Local  Professional Services  Insurance  Consumer  General Health  Men  Managed Care

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