Health Net Federal Services Awarded Department of Veterans Affairs Contract for VA Clinics in Espanola and Las Vegas, New Mexico

VA Clinics support Veterans with primary and mental health care services

RANCHO CORDOVA, Calif.--(BUSINESS WIRE)-- Health Net Federal Services, LLC, part of the Government Contracts segment of Health Net, Inc. (NYSE:HNT), today announced it has been awarded a contract by the New Mexico VA Health Care System (NMVHCS) to provide primary health care, preventive care and outpatient mental health services to Veterans in two Community Based Outpatient Clinics (CBOCs) located in Las Vegas, N.M. and Espanola, N.M. The contract became effective November 30, 2010, with a one-year initial term and four one-year option periods. The new clinic locations are scheduled to open on April 1, 2011.

“Health Net is honored to partner with NMVHCS to offer enhanced health care services to Veterans at the Espanola and Las Vegas CBOCs,” said Donna Hoffmeier, Health Net’s VA Program Officer. “The new clinic locations will provide newly expanded Veteran-only outpatient primary care, specialty telehealth and mental health services from Monday through Friday for Veterans living in these areas of New Mexico.”

The Espanola CBOC will serve approximately 1,200 enrolled patients, and will be located at 110 North Coronado Avenue, in Rio Arriba County. The facility size is 5,225 square feet and was formerly home to medical offices. The CBOC is conveniently located about one-half mile away from Espanola Hospital, as well as laboratory and radiology services.

The Las Vegas CBOC will serve 700 enrolled Veterans, and will be located at 624 University Avenue, in San Miguel County. The facility is 3,141 square feet and was formerly medical offices. The CBOC is located about two and one-half miles from Alta Vista Medical Center, and is conveniently situated near the heart of downtown Las Vegas, N.M.

About Health Net’s VA Programs

Health Net is proud to partner with VA to provide a wide spectrum of high quality, cost-effective health care services serving Veterans nationwide, including VA Clinics, Preferred Pricing, Recovery Audit Services and Behavioral Health Programs.

Health Net operates several VA CBOCs, rural and satellite clinics throughout the U.S., and continuously strives for excellent patient access, quality health care and patient satisfaction.

In addition, Health Net provides national claims repricing services as a subcontractor for five regional VA contracts. The Preferred Pricing Program helps VA Medical Centers achieve savings available through discount agreements with Health Net’s nationwide provider network for a variety of health care services, including hospitalization, outpatient care, ambulatory surgery, behavioral health and ancillary services.

Health Net was awarded a VA contract to provide Chief Business Office Outpatient Recovery Audit Services of VA payments made for the Outpatient Non-VA Fee Care Program, the Civilian Health

In partnership with Three Wire Systems, a Service-Disabled Veteran-Owned Small Business, Health Net supports the VetAdvisor^® Support Program in VA’s Veterans Integrated Services Networks (VISN) 12, the Great Lakes Health Care System. This program assists Operation Enduring Freedom/Operation Iraqi Freedom Veterans in their reintegration to civilian life through mental health outreach and health coaching services.

Health Net recently was awarded new VA contracts to provide a network of behavioral health providers to augment VA’s outpatient mental health and readjustment counseling services in VISNs 6, 19 and 20. These services will support VA’s mission to expand access to mental health services for Veterans in rural and very rural areas of the country.

For more information about Health Net’s VA Programs, visit www.hnfs.net/va.

About Health Net

Health Net Federal Services, LLC, a subsidiary of Health Net, Inc., has a long history of providing cost-effective, quality managed health care programs for government agencies, including the Departments of Defense and Veterans Affairs. As the managed care support contractor for the TRICARE North Region, Health Net provides health care services to nearly 3.0 million uniformed services beneficiaries, active and retired, and their families.

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 health plans and government contracts subsidiaries provide health benefits to approximately 6.0 million individuals across the country through group, individual, Medicare, Medicaid and TRICARE and Veterans Affairs programs. Health Net’s behavioral health subsidiary, MHN, provides mental health benefits to approximately 5.4 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 website at http://www.healthnet.com. For more information on Health Net Federal Services, please visithttp://www.healthnetfederalservices.com/or onFacebook.

Cautionary Statements

All statements in this press release, other than statements of historical information provided herein, including the guidance for future periods and the assumptions underlying such projections, may be deemed to be forward-looking statements and as such are subject to a number of risks and uncertainties. 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 guidance as to expected future period results and statements including 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, health care reform, including the ultimate impact of the Patient Protection and Affordable Care Act, which could materially adversely affect the company’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 the company 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 affecting the company’s Medicare or Medicaid businesses; costs, fees and expenses related to the post-closing administrative services provided under the administrative services agreements entered into in connection with the sale of the company’s Northeast business; potential termination of the administrative services agreements by the service recipients should Health Net breach such agreements or fail to perform all or a material part of the services required thereunder; 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; litigation costs; regulatory issues with agencies such as the California Department of Managed Health Care, the Centers for Medicare and Medicaid Services and state departments of insurance, including the continued suspension of marketing and enrollment into Health Net’s Medicare products for a significant period of time, which could have a material adverse impact on the company’s Medicare business; operational issues; 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 the company’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (“SEC”), and the risks discussed in the company’s other 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 its guidance, the assessment of the underlying assumptions or any of its forward-looking statements to reflect events or circumstances that arise after the date of this release.

Media Contact:
Health Net, Inc.Margita Thompson, 818-676-7912
margita.thompson@healthnet.com
or
Health Net Federal Services Contact:Molly Tuttle, 916-351-5355
molly.tuttle@healthnet.com

Source: Health Net Federal Services, LLC