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

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^{Published in Health and Fitness on Friday, December 3rd 2010 at 6:40 GMT by 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 VAa™s Rocky Mountain Network and Northwest Network in Veterans Integrated Services Networks (VISNs) 19 and 20.

"We fully appreciate and support VAa™s mission to expand access to health care services for Veterans in rural and very rural areas of the country."

The new contract became effective November 1, 2010, with a one-year initial term and two additional one-year option periods.Health Net and VA are currently working together to implement the Rural Mental Health program, designated as a voluntary demonstration project for Veteranswho served in Operation Enduring Freedom/Operation Iraqi Freedom (OEF/OIF). The new contract closely follows another contract award to Health Net effective September 28, 2010, to enhance access to behavioral health care services in VAa™s Mid-Atlantic Health Care Network (VISN 6).

aHealth Net is honored to partner with VISNs 6, 19 and 20 to help provide these valuable and needed services to OEF/OIF Veterans within their communities,a said Health Neta™s VA Programs Officer, Donna Hoffmeier. aWe fully appreciate and support VAa™s mission to expand access to health care services for Veterans in rural and very rural areas of the country.a

The Health Net contracts are part of a new VA program to improve access and quality of health care for Veterans in geographically rural areas. The program emphasizes the use of the latest technologies, recruitment and retention of a well-educated and trained health care workforce, and collaborations with non-VA rural health community providers.

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 OEF/OIF 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 5.4 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, including the ultimate impact of the Patient Protection and Affordable Care Act, which could materially adversely affect the companya™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 companya™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 companya™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 regulatory action to suspend the marketing of and enrollment into our Medicare products for a significant period of time, which could have a material adverse impact on our 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 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.