Litigation Hits Earnings At West Coast Carrier

Health Net Inc. says its operating results were solid during the third quarter despite charges that affected net results.

Health Net, Woodland Hills, Calif., is reporting a $104 million net loss for the third quarter on $3.6 billion in revenue, compared with $91 million in net income on $3.2 billion in revenue for the third quarter of 2006.

The managed care company ended the quarter providing or administering health coverage for 3.7 million people, 1.8% more people than it was covering a year earlier.

The net loss was due mainly to the effect of $297 million in charges related to class-action suits involving out-of-network claim payment practices in New Jersey and a consent order related to that issue, Health Net says.