Health Net and the University of California Expand Accountable Care Arrangement for University of California Employees

Health Net of California, Inc., a subsidiary of Health Net, Inc., is expanding the implementation of accountable care arrangements for University of California (UC) employees at UC campuses in Davis, Irvine and San Diego in 2016.

Health Net currently has accountable care arrangements at UC campuses in Los Angeles and San Francisco. The new systemwide agreement between UC and Health Net expands the role of UC Health in a new accountable care arrangement responsible for serving the health care needs of almost half of the UC employees across the state enrolled in Health Net Blue & Gold HMO.

Enhanced Collaboration

To optimize the performance of the Health Net Blue & Gold HMO, which is the health coverage selected by many UC employees and their eligible family members, Health Net, UC and UC Health have established a new collaboration model.

“Together, we are committed to a long-term collaboration that continues managing and expanding a portfolio of clinical care initiatives to help enhance the health care experience of Health Net members and help improve affordability,” said Steve Sell, president of Health Net’s Western Region Health Plan.

Health Net has been at the forefront of developing innovative arrangements that enhance the ability of health care providers to improve quality, affordability, and the overall care experience.

“UC Health is committed to managing its patient population in a way that integrates services across the full spectrum of care, to increase efficiencies in the delivery system and lead to better outcomes and enhanced patient satisfaction,” said John Stobo, M.D., executive vice president for UC Health. “The expanded accountable care arrangements between Health Net and UC in 2016 will serve UC’s employees, non-Medicare retirees and their covered family members enrolled in the Health Net Blue & Gold HMO who utilize UC Health’s own provider groups and medical centers.”

“The expanded contractual relationship with Health Net provides even more transparency into our health care delivery system for the benefit of our employee population,” Stobo said. “Our arrangement enables us to work as a team with Health Net to develop advanced care models and integrated systems and apply best practices at all five academic medical centers to provide the right care at the right time and in the right place.”

“Health Net’s existing accountable care arrangement in San Francisco clearly demonstrates the power of collaboration,” said Sell. “During its first three years, the San Francisco initiative achieved $25 million in savings by increasing access to care through wider use of urgent care centers, transforming members’ care experience when they were hospitalized, and offering assistance for members and physicians to better manage patients’ medications. Together, these improvements help improve patients’ relationships with their doctors, and the success is due to the collaborative efforts of our provider partners: UCSF Medical Center, Hill Physicians Medical Group and Dignity Health.”

“Ever since we implemented our care arrangements in San Francisco in 2013 and Los Angeles in 2015, our goal has been to help improve clinical outcomes and the patient experience while aiming to reduce the health care cost expenditures of our UC members,” said Terri Guzy, Health Net vice president of Strategic Provider Partnerships. “We’re excited about the expansion to the Davis, Irvine and San Diego campuses, and we look forward to working with the University of California to build upon its clinical expertise as we evolve to the next stage of our innovative arrangements.”

UC Health’s accountable care arrangements are highlights of the Health Net Blue & Gold provider network, which was specifically developed in collaboration with UC. The network contracts with selected physician groups and hospitals in 30 California counties and provides access to employees and non-Medicare retirees of the UC system and their eligible family members.

UC employees and their eligible family members may get more information about the Health Net Blue & Gold HMO at

About Health Net

Health Net, Inc. (NYSE:HNT) 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 provides and administers health benefits to approximately 6.1 million individuals across the country through group, individual, Medicare (including the Medicare prescription drug benefit commonly referred to as “Part D”), Medicaid and dual eligible programs, as well as programs with the U.S. Department of Defense and U.S. Department of Veterans Affairs. Health Net also offers behavioral health, substance abuse and employee assistance programs, and managed health care products related to prescription drugs.

For more information on Health Net, Inc., please visit Health Net’s website at

About University of California

With 10 campuses, five medical centers, three national labs and more than 1.7 million alumni, the University of California is the nation’s premier public research university. For more, visit:

About UC Health

University of California Health includes five academic medical centers and 17 health professional schools. For more information, visit

Cautionary Statements

The company 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 a number of factors, variables or events. Certain of these factors relate to the company’s proposed business combination with Centene Corporation (“Centene”), including, among other things, the expected closing date of the transaction; the possibility that the expected synergies and value creation from the proposed merger will not be realized, or will not be realized within the expected time period, including as a result of conditions, terms, obligations or restrictions imposed by regulators in connection with their approval of, or consent to, the merger; the risk that the businesses will not be integrated successfully; disruption from the merger making it more difficult to maintain business and operational relationships; the risk that unexpected costs will be incurred; the possibility that the merger does not close, including, but not limited to, due to the failure to satisfy the closing conditions, including the receipt of required regulatory approvals; the risk that financing for the transaction may not be available on favorable terms; and certain other risks associated with the merger, as more fully discussed in the definitive joint proxy statement/prospectus that was filed with the SEC on September 21, 2015, in connection with the merger. Other factors include, among others, health care reform and other increased government participation in and taxation or regulation of health benefits and managed care operations, including but not limited to the implementation of, and subsequent modifications to, the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 and the regulations promulgated thereunder (collectively, the “ACA”) as well as any related fees, assessments and taxes; the company’s ability to successfully participate in California’s Coordinated Care Initiative, which is subject to a number of risks inherent in untested health care initiatives and requires the company to adequately predict the costs of providing benefits to individuals that are generally among the most chronically ill within each of Medicare and Medi-Cal and implement delivery systems for benefits with which the company has limited operating experience; the company’s ability to successfully participate in the federal and state health insurance exchanges under the ACA, which involve uncertainties related to the mix and volume of business that could negatively impact the adequacy of the company’s premium rates and may not be sufficiently offset by the risk apportionment provisions of the ACA; increasing health care costs, including but not limited to costs associated with the introduction of new treatments or therapies; the company’s ability to reduce administrative expenses while maintaining targeted levels of service and operating performance; the recompetition of the company’s T-3 contract for the TRICARE North region; negative prior period claims reserve developments; rate cuts and other risks and uncertainties affecting the company’s Medicare or Medicaid businesses; trends in medical care ratios; membership declines or negative changes in the company’s health care product mix; unexpected utilization patterns or unexpectedly severe or widespread illnesses; failure to effectively oversee the company’s third-party vendors; noncompliance by the company or the company’s business associates with any privacy laws or any security breach involving the misappropriation, loss or other unauthorized use or disclosure of confidential information; the timing of collections on amounts receivable from state and federal governments and agencies; litigation costs; regulatory issues with federal and state agencies including, but not limited to, the California Department of Managed Health Care and Department of Health Care Services, the Arizona Health Care Cost Containment System, 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; changes in political, economic or market conditions; investment portfolio impairment charges; volatility in the financial markets; and general business and market conditions. The factors described in the context of such forward-looking statements in this press release could cause the company or Centene’s plans with respect to the proposed merger, actual results, performance or achievements, industry results and developments to differ materially from those expressed in or implied by such forward-looking statements. 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 any subsequent Quarterly Reports on Form 10-Q filed with the SEC and the other risks discussed in the company’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, the company 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.

This release contains references and links to other websites that may contain content that is not owned or controlled by Health Net. Please be aware that references or links to other websites are provided for the user’s convenience and that Health Net is not responsible for any such content that is not owned or controlled by Health Net. Health Net does not express an opinion on any such content and disclaims any liability in connection therewith.


Health Net, Inc.
Investor Contact:
Peter O’Neill, (818) 676-8692
Media Contact:
Brad Kieffer, (818) 676-6833

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