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Health Net Reports Higher 1st Quarter Net Income

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NU Online News Service, May 2, 2:19 p.m. – Health Net Inc., Woodland Hills, Calif., is reporting $50 million in net income for the first quarter on $2.5 billion in revenue, compared with $42 million in net income on $2.5 billion in revenue for the first quarter of 2001.

Health Net provided or administered major medical coverage for 4.5 million people at the end of the latest quarter, down from 5.2 million people a year earlier.

Average revenue per insured member fell 8.7%, to $501.

Although overall enrollment was down, small group and individual enrollment increased 21%, and the ratio of medical costs to premium revenue decreased, Health Net says.

Health plan revenue was down partly because of the sale of a health plan in Florida, and partly because of “planned departures from certain uneconomic large group accounts,” Health Net says.

Health Net notes that it is trying to reduce its exposure to large groups, as well as to Medicare.