Health Net Inc., Sees Higher Q2 Earnings

Health Net, Inc. had higher net income but lower total revenues and premium services premium revenues for the second quarter of 2010 compared to the same quarter the year before, the Woodland Hills-based insurer announced. The company reported a net income of $45.1 million, or $0.45 per diluted share, on total revenues of $3.4 billion for the second quarter of 2010. The company had a net income of $40.1 million, or $0.38 per diluted share, on total revenues of $4 billion for the same quarter last year. In the second quarter, total enrollment in Health Net’s California health plan decreased about 2.1 percent and the Western Region’s commercial enrollment declined by about 9.3 percent. Medicaid enrollment in California increased by about 6 percent. “Despite the economic headwinds for our commercial products, our cost-effective network products grew by 8.7 percent, or approximately 23,000 new members, in the second quarter of 2010 compared with the second quarter of 2009,” said James Woy, the company’s chief operating officer. Revenues increased by 2.4 percent for the company’s Government Contracts segment with $851.9 million in revenues in the second quarter of 2010 compared to $832.1 million in revenues for the same quarter last year. The segment was awarded a new TRICARE North Region contract, set to begin April 2011, with the Department of Defense. Jessica Selva