Health Net Closes Sale of Medicare PDP Business [Health & Beauty Close – Up]

Health Net, Inc. announced that its subsidiary, Health Net Life Insurance Company, completed the sale of its Medicare stand-alone Prescription Drug Plan (Medicare PDP) business to a subsidiary of CVS Caremark .

Health Net said it announced the sale on January 9.

Health Net expects to realize approximately $145 million in net cash proceeds from the transaction, after the effect of freed-up capital, taxes and transaction- and transition-related costs. Health Net expects to update its 2012 earnings guidance to reflect the impact of the sale when it reports its first quarter 2012 financial results on May 3.

Health Net had approximately 425,000 Medicare PDP members in 49 states and the District of Columbia as of April 1. Health Net's 2011 revenue for the Medicare PDP business was approximately $490 million.

Health Net will continue to provide prescription drug plans as part of its Medicare Advantage plan offerings.

Health Net 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.

More information:

healthnet.com

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