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Health Net Federal Services Awarded Department of Veterans Affairs Rural Mental Health Contract

^{Published on 2010-11-03 11:30:51 - Market Wire}
 

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 was awarded a contract by the Department of Veterans Affairs (VA) to provide a network of behavioral health providersto augment VAa™s outpatient mental health and readjustment counseling services in rural counties within North Carolina, Virginia and West Virginia. The services will focus on enhancing access to behavioral health care for Veterans residing in specified rural or very rural areas within the VA Mid-Atlantic Health Care Network, Veterans Integrated Services Network (VISN) 6.

"Health Net appreciates and supports VAa™s goal of increasing access to behavioral health services for Veterans in rural areas"

The new contract became effective September 28, 2010, with a one-year initial term and four additional one-year option periods.Health Net and VA are currently working together to implement the program, designated as a voluntary demonstration project for Veteranswho served as members of the National Guard or Reserves, as well as those separated from active duty.

aHealth Net appreciates and supports VAa™s goal of increasing access to behavioral health services for Veterans in rural areas,a said Health Neta™s VA Programs Officer, Donna Hoffmeier. aWe are honored to work with VISN 6 to help provide these services to Veterans within their communities.a

About Health Neta™s VA Programs

Health Net is proud to partner with VA to provide high quality, cost-effective health care services serving Veterans nationwide. Health Net operates several VA Community Based Outpatient Clinics 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 Neta™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 recently 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 and Medical Program, and the Spinal Bifida and Children of Women Vietnam Veterans programs. These services help maximize care to Veterans by helping to ensure that payments are reasonable, consistent and proper.

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

For more information about Health Neta™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 nationa™s largest publicly traded managed health care companies. Its mission is to help people be healthy, secure and comfortable. The companya™s health plans and government contracts subsidiaries provide health benefits to approximately 6.0million individuals across the country through group, individual, Medicare, Medicaid and TRICARE and Veterans Affairs programs. Health Neta™s behavioral health subsidiary, MHN, provides mental health benefits to approximately 5.5 million individuals in all 50 states. The companya™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 companya™s website at [ http://www.healthnet.com ]. For more information on Health Net Federal Services, please visit[ http://www.healthnetfederalservices.com/ ]or on[ Facebook ].

Cautionary Statements

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 subject to a number of risks and uncertainties. These statements are based on managementa™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, statements including the words abelieves,a aanticipates,a aplans,a aexpects,a amay,a ashould,a acould,a aestimate,a aintenda and other similar expressions are intended to identify forward-looking statements. Actual results could differ materially due to, among other things, health care reform; costs, fees and expenses related to the post-closing administrative services to be provided under the administrative services agreements entered into in connection with the sale of our Northeast business; potential termination of the administrative services agreements by the service recipients should we 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; rising health care costs; continued recessionary economic conditions or a further decline in the economy; negative prior period claims reserve developments; trends in medical care ratios; unexpected utilization patterns or unexpectedly severe or widespread illnesses; membership declines; rate cuts affecting our Medicare or Medicaid businesses; litigation costs; regulatory issues; 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 aRisk Factorsa section included within the companya™s most recent Annual Report on Form10-K and subsequent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (aSECa), and the risks discussed in the companya™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 any of its forward-looking statements to reflect events or circumstances that arise after the date of this release.