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Life Health > Health Insurance

Health Net Reports Higher 2nd Quarter Net Income

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NU Online News Service, Aug. 5, 2003, 11:43 a.m. EDT – Health Net Inc., Los Angeles, is reporting $75 million in net income for the second quarter on $2.8 billion in revenue, up from $65 million in net income on $2.5 billion in revenue for the second quarter of 2002.

The managed care company ended the quarter providing or administering medical coverage for 5.4 million people, about as many people as it covered a year earlier.

The company averaged $829 in health plan services revenue per insured commercial plan member, up 9.3% from the average for the comparable quarter in 2002.

Commercial enrollment fell 1.8% during the quarter because Health Net dropped out of the large health insurance program sponsored by the California Public Employees Retirement System. But claims also fell, and the ratio of plan costs to revenue fell to 83.6%, from 84.04%, Health Net says.

Health Net continues to administer federal TRICARE health coverage for 1.5 million military retirees, dependents and active-duty personnel who live away from military health care facilities.

TRICARE members normally have a choice of getting care from military or civilian facilities. These days, Health Net says, more TRICARE members are getting care from civilian doctors because so many military doctors have been deployed overseas.

The increased use of civilian doctors increases TRICARE program revenue and benefits expenses, Health Net says.


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