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Health Net of California Streamlines Health Care Benefits for Small Businesses

Posted on: Wednesday, 7 February 2007, 09:01 CST

Health Net of California has introduced a new lineup of health insurance products and streamlined their design to address small-business owners' concerns over the cost and complexity of health care benefits.

Nearly three-quarters of California's small-business owners blame high premiums for not offering health care benefits to their workers, and nearly one-quarter put the blame on "administrative hassle," according to recent statistics from the California HealthCare Foundation.

Health Net of California's approach may make it possible for small businesses to offer coverage for the first time, or obtain coverage again after being priced out of the market in the past.

"Health Net is partnering with small businesses to address two issues that are most important to them, namely, helping them provide coverage that is both affordable and hassle free," said Douglas King, general segment manager for small-business and individual sales at Health Net. "Our plans offer highly competitive rates and have been simplified and streamlined so they are easier to understand, select and administer."

The new portfolio provides "standard" plans for those looking primarily for broad coverage options and "value" plans for those seeking lower premiums in exchange for higher employee contributions. Both sets of plans consist of a wide range of benefits with just four copayment levels of $10, $20, $30 and $40. That means someone with a $10 plan pays just $10 for many professional services like doctor visits.

"By streamlining the selection and administration processes, we help small-business owners spend more time running their businesses and less time wading through complex benefits issues," said King.

In both the standard and value product lines in 2007, small-business owners can choose health maintenance organization (HMO) plans, including one that allows for self-referrals to specialists who contract with Health Net. Also offered are preferred provider organization (PPO)* plans, as well as consumer-directed PPOs* paired with Health Savings Accounts (HSAs). Other products available to small businesses in 2007 include point-of-service (POS) plans; cross-border plans that provide access to medical care in Northern Mexico; plans utilizing Health Net's cost-effective Silver Network, which features doctors and hospitals that combine affordability and quality; and Hn Options, which allow business owners with between two and 50 employees to offer Health Net policies alongside those from other carriers, such as Kaiser.

For information about Health Net's 2007 portfolio of plans specifically for small businesses, small-business owners may speak with their local Health Net account executive, or they may call 1-800-447-8812. Brokers may call 1-800-448-4411, option 4.

Health Net of California, a subsidiary of Health Net, Inc. (NYSE:HNT), is one of the largest health plans in the state, serving nearly 2.3 million members statewide*. It contracts with more than 51,000 physicians, 300-plus hospitals and nearly 5,000 pharmacies, giving its members greater choice and more convenient access to care*. Its commercial HMO and POS and Medicare lines of business have received the "excellent" accreditation status from the National Committee for Quality Assurance. For more information about Health Net, please visit its Web site at www.healthnet.com.

Cautionary Statements

This release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, that involve a number of risks and uncertainties. All statements, other than statements of historical information provided herein, may be deemed to be forward-looking statements. 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, 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, rising health care costs, negative prior period claims reserve developments, trends in medical care ratios, issues relating to provider contracts, litigation costs, operational issues, health care reform and general business 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 SEC. Readers are cautioned not to place undue reliance on these forward-looking statements. The company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date of this release.

* PPO coverage is provided by Health Net Life Insurance Company, a subsidiary of Health Net of California. Member and provider data include Health Net Life.

Source: Business Wire

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