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Update from Steve Sell: Adapting in the Evolving Environment

Sep 06, 2012

It’s no secret that we all work in an environment of extreme change that’s brought on by health care reform, increased rate regulation, quickly changing employer needs, and other factors.

And on top of that, there has rarely been a time of greater competition. Here in California, there are about a dozen health plans competing for a diminishing commercial pool.

In this shifting environment, you can rest assured that Health Net is adapting to the new realities and making the appropriate adjustments to continue meeting the needs of all our stakeholders.

After seeing four years of success with our tailored networks, chiefly in the small- and mid-sized arenas, the future will see Health Net focusing on expanding the concept more to our large-group customers to give them another avenue for optimizing benefits and mitigating costs.

Our tailored network enrollment grew more than 6 percent since the second quarter of last year, and it now represents about 35 percent of our Western Region commercial membership.

And as we adapt and adjust for future success, we are leveraging the strengths of our diversified book of business, including:

Second Quarter Earnings
Health Net, Inc. announced its second-quarter 2012 earnings on August 3. While our earnings for the quarter were disappointing, chiefly to unexpectedly high health care costs in the Medi-Cal Seniors and Persons with Disabilities population and our largest commercial employers, we are confident that our strategic adjustments are moving us in the right direction.

You may listen to a replay of the announcement by clicking here (guestbook sign-in required). Or you may view the printed transcript and our press release.

Strength and Stability
Our strategic adjustments are about preparing for the future. As you talk with your clients about the future, they may take comfort in knowing that, not only are we pointed in the right direction, we also remain strong and stable. As of June 30, 2012, Health Net, Inc. has:
Always Interested in Hearing from You 
As I said earlier, we’re confident in our direction. As always, though, if you have any ideas on how we can be serving you better, please let me know.


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Steven J. Sell
President, Western Region Health Plan
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