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Health Net Ready to Provide Millions to Keep Health Clinics Open

With the State of California’s budget situation threatening to again halt payments to the state’s health clinics, the Health Net Foundation and Health Net of California, Inc., together, are prepared to provide up to $7 million in zero-interest financing to help prevent Central Valley clinics from shutting their doors.

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“Without this financing, if there is a prolonged impasse and payments stop, many of our member community health centers would likely have to take drastic measures, including scaling back operations, until a budget is passed," said David Quackenbush, chief executive officer of the Central Valley Health Network.

This marks the fourth year Health Net of California has made no-interest financing available to health clinics. In 2007, 2008 and 2009 Health Net of California extended financing to certain clinics after their state reimbursements were halted by the state’s late budget adoption.

“Health clinics are the main source of primary and specialist care for millions of Californians,” said Dave Meadows, vice president of State Health Programs for Health Net of California. “Clinic shutdowns could have terrible health implications for residents, and Health Net wants to help preserve communities’ access to quality health care.”

“These loans support the Health Net Foundation’s mission and Health Net, Inc.’s new corporate social responsibility program, Health Net Healthy Communities, both of which focus on increasing access to care in underserved areas,” said Patricia Clarey, president of the Health Net Foundation. “In particular, the foundation focuses on increasing the supply of services and removing barriers in these communities. Shutting down clinics is certainly a barrier to care we want to help prevent.”

If state funding is halted, the Health Net Foundation and Health Net of California together will provide up to $7 million in no-interest loans to certain Central Valley Health Network clinics and other Central California clinics to help bridge their finances until the state Medi-Cal program resumes regular payments. Central Valley Health Network consists of 13 clinics and their satellites in 20 counties.

About the Health Net Foundation

Based in Woodland Hills, Calif., the Health Net Foundation was created in 2007 as a philanthropic arm of Health Net, Inc. (NYSE: HNT), one of the nation’s largest publicly traded managed care companies. The Health Net Foundation’s mission is to serve as a resource to improve people’s health in underserved communities that Health Net, Inc. serves. To achieve its goals, the foundation supports programs that improve access to health care services and promote wellness and prevention.

About Health Net of California

Health Net of California, Inc., a subsidiary of Health Net, Inc. (NYSE: HNT), is one of the largest health plans in the state. Together with Health Net Life Insurance Company, it serves more than 2.2 million members statewide and contracts with more than 56,000 physicians, more than 300 hospitals and more than 5,600 pharmacies, giving its members greater choice and more convenient access to care. Its commercial HMO/POS and Medicare lines of business have received the “excellent” accreditation status from the National Committee for Quality Assurance. Its PPO line of business (offered by Health Net Life Insurance Company) and its Medicaid line of business have received the “commendable” accreditation status. For more information about Health Net, visit its website at http://www.healthnet.com/.

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 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, 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; 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 “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 any of its forward-looking statements to reflect events or circumstances that arise after the date of this release.

Contacts:

Health Net of California
Brad Kieffer
818.676.6833 – office
818.337.9541 – mobile
brad.kieffer@healthnet.com
twitter.com/hn_bradkieffer
or
Health Net Foundation
Amy Sheyer
818.676.8304 – office
818.274.6591 – mobile
amy.sheyer@healthnet.com
twitter.com/hn_amy

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