Health Net announced on Thursday that it has agreed to purchase the assets of Universal Care Inc., a health care company based in Long Beach. The purchase, which must be approved by the Department of Managed Health Care and the Department of Health Services, would continue the trend of merging managed-care companies throughout the state. Terms of the purchase were not disclosed. The purchase will add to Health Net’s Medi-Cal membership. The company currently has provides services to 700,000 Medi-Cal and Healthy Families members in nine California counties. If the purchase of Universal Care is approved, Health Net would add about 20,000 Medi-Cal members and will have the chance to enroll an additional 20,000 in Medi-Cal and Healthy Families members in Orange County. Health Net reported it plans to complete the purchase in the first half of 2006. Woodland Hills-based Health Net has struggled in recent years, but in 2005 saw its stock price double as the company raised its rates, and tried to diversify and stabilize its membership. The company also launched a national advertising campaign in 2005.
