Health Net 2002 Annual Report Download - page 12

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10 | HEALTH NET, INC.
GOAL 1: MARKET
We will anticipate, understand and respond to customer needs and be customer-driven
in everything we do. We will compete only in segments where we can win.
Over the years, we have built a diverse base of profitable business by identifying key markets
– and providing the right solutions. For example, to address the needs of California’s fast-
growing Latino market, in recent years we developed cross-border products and services –
called Salud Con Health Net – specifically for this market. In California and other states, this
market will continue to grow in size and be important to our future.
We honed new skills for the small group market and ended 2002 with strong growth in this
segment. This success reflects our efforts in meeting customers’ needs during a time when
health care costs are continuing to rise. We provided flexible benefit packages at a variety of
price points with employee cost-sharing options, making it possible for many employers to
continue to offer comprehensive benefits.
Beyond these commercial markets, we applied the same focus to state and federal programs
that serve seniors, low-income individuals and their children. In the face of budget shortfalls,
we are working closely with government officials to find solutions that allow them to offer
the most comprehensive programs in the most economical way. At year-end, we served more
than 176,000 Medicare beneficiaries nationwide. Health Net also was one of several health
plans selected by the Centers for Medicare & Medicaid Services to develop a Medicare
Preferred Provider Organization (PPO) product for beneficiaries in Arizona and Oregon. And,
at year-end, we served more than 874,000 low-income individuals and their children through
state Medicaid programs in California, Connecticut and New Jersey.
Our long contracting relationship with the Department of Defense (DoD) to administer
contracts under its TRICARE program for military retirees and their dependents continues.
Health Net ended the year with approximately 1.5 million TRICARE beneficiaries in 11
states. And, as the military mobilizes, we will work diligently with the DoD to meet the
changing needs of the people we serve.
Year-over-year, small
group enrollment grew
by more than 100,000
new members.
2000
515
2001
616
2002
719
Small Group Enrollment
(in thousands)