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Health Net Posts 4th Quarter and Annual Loss And Giving Many Insured Free Credit Services

Posted Feb 03 2010 10:59pm

The security breach this year was probably something I am guessing they can wish did not happennobody wants that and now the Attorney General of Connecticut is suing over the issue.  Where’s the money coming from since they too are losing individual and employer accountsMedicare Advantage policieslike the rest of themmaking money from the Government. 

The big loss of business this year for HealthNet was the Tri-Care contract for the northeastwhich was lost to Aetna, but that story is not over yet either as HealthNet protestedand now the GAO says it looks like Aetna cheated with a conflict of interest on their bid.  In the meantime after the contract was first announced and with a projected loss of a substantial amount of business, HealthNet sold their northeast business to United Healthcareso those lucky folks have one less insurance carrier to choose froma big issue with lack of competition.  For now it looks like they are still in limbo on the Tri-Care situation but watching how fast they sold off the northeast business after the initial announcement maybe some what tells the story of a big source of revenueagain the Government.  It seems like all these carriers are banking on the government so geewhat’s the real danger of a public plan we could see with some transparency at this point?  BD 

HealthNet hung on to that corrupted Ingenix data base for calculating out of network charges until this summer so I don’t know where they stand as far as lawsuits but in 2008 they reached an agreement to pay 14.5% above the Ingenix rates that were shown for reimbursing patients and doctors with class action lawsuits filed against them. 

Health Net Inc. (HNT) swung to a fourth-quarter loss as enrollments continued to decline. But excluding charges related to the sale of its Northeast businessthe managed-care provider's results exceeded Wall Street's expectations. 

"We are pleased with our fourth quarter and full-year 2009 results," said President and Chief Executive Jay Gellert. "Alsoas expectedour Medicare Advantage and Part D businesses returned to a solid level of performance after a difficult 2008."

Health Net has been restructuring and sold its Northeast division to UnitedHealth Group (UNH). In a potential bright spotthe government sustained Health Net's protest after the Defense Department dropped the company as a vendor for a multibillion-dollar Tricare regional military health-care contractplanning to replace Health Net with Aetna Inc. (AET).

The company closed the sale of its Northeast business on Dec. 11 and the fourth-quarter results also exclude the unit's results after the closing.

Health Net reported a loss of $45.2 millionor 43 cents a sharecompared with a prior-year profit of $35.5 millionor 34 cents a share. Excluding items such as the divestiture chargesearnings rose to 69 cents from 61 cents. Revenue fell 1.8% to $3.8 billion.

Related Reading:

Health Net Data Breach – 1.5 Million Records At Risk With Missing Portable Hard Drive
United HealthCare Purchase of HealthNet in the Northeast Did Not Include Transfer of Employees
Health Net Agrees to Stop Using Ingenix Database for Calculating Reasonable and Customary Fees
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