Health Net Completes Acquisition of Universal Care; Close Adds More Than 100,000 Members
LOS ANGELES–(BUSINESS WIRE)–April 3, 2006–Health Net, Inc. (NYSE:HNT) today announced that it completed its acquisition of the health plan assets of Universal Care, Inc., a Long Beach, Calif.-based health care company, on March 31, 2006.
“We welcome the members of Universal Care to the Health Net family,” said Stephen Lynch, president of Health Net of California, a subsidiary of Health Net, Inc. “Today’s acquisition is another example of our commitment to providing access to care for all Californians.”
With this acquisition, Health Net adds approximately 17,000 Medi-Cal and Healthy Families beneficiaries to the approximately 692,000 Medi-Cal and Healthy Families beneficiaries it serves in nine California counties: Los Angeles, Fresno, Kern, Stanislaus, Riverside, Sacramento, San Bernardino, San Diego and Tulare. Health Net also is adding approximately 20,000 Medi-Cal and Healthy Families beneficiaries in Orange County. In addition, Health Net will add approximately 8,000 Medicare Advantage beneficiaries and approximately 86,000 commercial members. All of these members, whether from government or commercial programs, will be transitioned from Universal Care to Health Net in stages over the next three months.
Terms of the acquisition were not disclosed. Health Net received regulatory approvals from the Centers for Medicare & Medicaid Services and California authorities, including the California Department of Managed Health Care, Managed Risk Medical Insurance Board and the California Department of Health Services.
About Health Net
Health Net, Inc. is among the nation’s largest publicly traded managed health care companies. Its mission is to help people be healthy, secure and comfortable. The company’s HMO, POS, insured PPO and government contracts subsidiaries provide health benefits to approximately 6.3 million individuals in 27 states and the District of Columbia through group, individual, Medicare, Medicaid and TRICARE programs. Health Net’s behavioral health subsidiary, MHN, provides mental health benefits to approximately 7.3 million individuals in all 50 states. The company’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 the company’s Web site at www.healthnet.com.
Cautionary Statements
Certain matters discussed in this release contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, that involve a number of risks and uncertainties. All statements, other than statements of historical information provided herein, may be deemed to be forward-looking statements. These statements are based on management’s analysis, judgment, belief and expectation only as of the date hereof, and are subject to uncertainty and changes in circumstances. Without limiting the foregoing, the words “believes,” “anticipates,” “plans,” “expects,” “may,” “should,” “could,” “estimate,” “intend” and other similar expressions are intended to identify forward-looking statements. Actual results could differ materially due to, among other things, rising health care costs, negative prior period claims reserve developments, trends in medical care ratios, issues relating to provider contracts, operational issues, health care reform and general business 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 the company’s most recent Annual Report on Form 10-K filed with the SEC and the risks discussed in the company’s other periodic filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements. The company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date of this release.
CONTACT: Health Net, Inc.
David Olson, 818-676-6978
david.w.olson@healthnet.com
Michael Engelhard, 818-676-7620
michael.engelhard@healthnet.com
SOURCE: Health Net, Inc.
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Health Net, Inc.’s business which are not historical facts are “forward-looking statements” that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” in the Company’s Annual Report or Form 10-K for the most recently ended fiscal year.