Health Net Reports Earnings for Third Quarter

Health Net Inc. reported earnings for the third quarter of this year compared to net loss for the same period last year, the Woodland Hills-based insurer announced. The company had net income of $62.7 million, or $0.64 per diluted share, on revenues of $3.4 billion. During the same period last year, the company had net loss of $66 million, or $0.64 per diluted share, even though it had higher revenues of $4 million. During the most recent third quarter, Health Net Inc.’s health plan services premium revenues decreased from $2.5 billion in the most recent quarter compared to $3.2 billion during the same quarter last year. However, the company also had lower health plan services expenses, with $2.1 billion in the expenses during this third quarter compared to $2.7 billion during the same period in 2009. The company also paid $8.6 million during this year’s third quarter in expenses primarily related to severance costs. “We are pleased that the third quarter of 2010 produced further evidence of our solid and consistent financial performance,” said Jay Gellert, the company’s president and CEO. “Our commercial risk enrollment grew by 3,000 members sequentially, reversing recent trends and demonstrating that our focus on efficient-network products is working.” Company leaders are anticipating 2011 will produce higher full-year operating income than 2010 and that share repurchase activity will continue, Geller added. Jessica Vernabe