The California Department of Health Services announced it will award Health Net of California a contract to provide Medi-Cal benefits in Los Angeles County. Health Net has been provided Medi-Cal benefits since 1985 and the new eight-year contract will generate $560 million annually for the company. In 2004 and 2005 Health Net either renewed or will initiate Medi-Cal services in Fresno, Kern, Stanislaus and Tulare counties, in addition to serving Riverside, Sacramento, San Bernardino and San Diego counties. Health Net serves over 600,000 people in the nine counties. The DHS administers Medi-Cal benefits under two plans in most counties. One plan is organized by local health authorities, and another is administered by a commercial health plan. “We are gratified and honored to serve Los Angeles County Medi-Cal beneficiaries with a full range of needed health care services,” said Stephen Lynch, president of Health Net of California. “We value the opportunity to be a part of an economical solution for the state of California as it searches for ways to affordably serve the Medi-Cal population.”