Health Net Terminates Agreements with Six Tenet Healthcare Hospitals in Southern California

  Health Net Terminates Agreements with Six Tenet Healthcare Hospitals in
  Southern California

Business Wire

LOS ANGELES -- December 27, 2012

Health Net, Inc. (NYSE: HNT) today announced that its subsidiaries exercised
their contractual option to terminate agreements with all six of Tenet
Healthcare’s Southern California hospitals.

The terminations were effective midnight on Dec. 21, 2012. The facilities are:
Desert Regional Medical Center, Fountain Valley Hospital and Medical Center,
John F. Kennedy Memorial Hospital, Lakewood Regional Medical Center, Los
Alamitos Medical Center and Placentia Linda Hospital.

“The decision to proceed with the termination process was difficult,” said
Steve Sell, president of Health Net’s Western Region Health Plan. “We had no
choice, however, as Tenet Healthcare has refused our requests to negotiate a
new contract that more accurately reflects current statewide market

Health Net and Tenet Healthcare were nearing the end of a three-year contract.
Health Net believes Tenet’s reimbursement should be in line with the medical
consumer price index, which currently averages more than 3 percent, and that
reimbursement for state- and federally funded programs like Medi-Cal needs to
be consistent with the funding for those programs. In recent discussions for a
new contract, Health Net and Tenet have been unsuccessful in reaching
agreement on reimbursement amounts.

“Our goal is to help preserve affordable benefits for our customers, not pass
along inflated health care costs,” said Sell.

Health Net members, employers, brokers, and consultants will receive further
information in the coming weeks. Health Net commercial members with questions
may call our Customer Service Department at 1-800-522-0088. Medicare members
with questions may call 1-800-275-4737. Medi-Cal and Cal-Optima members may
contact 800-641-7761. Employers, brokers, and consultants with questions
should contact their Health Net representative.

About Health Net
Health Net, Inc. 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. Health Net, through its subsidiaries, provides and administers
health benefits to approximately 5.4million individuals across the country
through group, individual, Medicare (including the Medicare prescription drug
benefit commonly referred to as “Part D”), Medicaid, U.S. Department of
Defense, including TRICARE, and Veterans Affairs programs. Health Net’s
behavioral health services subsidiary, Managed Health Network, Inc., provides
behavioral health, substance abuse and employee assistance programs to
approximately 4.9 million individuals, including Health Net’s own health plan
members. Health Net’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 Health Net’s website at

Cautionary Statements
Health Net, Inc. and its representatives may from time to time make written
and oral forward-looking statements within the meaning of the Private
Securities Litigation Reform Act (“PSLRA”) of 1995, including statements in
this and other press releases, in presentations, filings with the Securities
and Exchange Commission (“SEC”), reports to stockholders and in meetings with
investors and analysts. All statements in this press release, other than
statements of historical information provided herein, may be deemed to be
forward-looking statements and as such are intended to be covered by the safe
harbor for “forward-looking statements” provided by PSLRA. These statements
are based on management’s analysis, judgment, belief and expectation only as
of the date hereof, and are subject to changes in circumstances and a number
of risks and uncertainties. Without limiting the foregoing, statements
including the words “believes,” “anticipates,” “plans,” “expects,” “may,”
“should,” “could,” “estimate,” “intend,” “feels,” “will,” “projects” and other
similar expressions are intended to identify forward-looking statements.
Actual results could differ materially from those expressed in, or implied or
projected by the forward-looking information and statements due to, among
other things, health care reform and other increased government participation
in and regulation of health benefits and managed care operations, including
the ultimate impact of the Affordable Care Act, which could materially
adversely affect Health Net’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 Health Net 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
and other risks and uncertainties affecting Health Net’s Medicare or Medicaid
businesses; Health Net’s ability to successfully participate in the
dual-eligibles pilot programs; litigation costs; regulatory issues with
federal and state agencies including, but not limited to, the California
Department of Managed Health Care, the Centers for Medicare & Medicaid
Services, the Office of Civil Rights of the U.S. Department of Health and
Human Services and state departments of insurance; operational issues; failure
to effectively oversee our third-party vendors; noncompliance by Health Net or
Health Net’s business associates with any privacy laws or any security breach
involving the misappropriation, loss or other unauthorized use or disclosure
of confidential information; liabilities incurred in connection with Health
Net’s divested operations; impairment of Health Net’s goodwill or other
intangible assets; 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 Health Net’s
most recent Annual Report on Form 10-K and subsequent Quarterly Reports on
Form 10-Q filed with the SEC, and the other risks discussed in Health Net’s
filings with the SEC. Readers are cautioned not to place undue reliance on
these forward-looking statements. Except as may be required by law, Health Net
undertakes no obligation to address or publicly update any of its
forward-looking statements to reflect events or circumstances that arise after
the date of this release.


Health Net, Inc.
Investor Contact:
Angie McCabe, 818-676-8692
Media Contact:
Brad Kieffer, 818-676-6833
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