Health Net 2005 Annual Report Download - page 53

Health Plan Services Segment Membership
The following table below summarizes our health plan membership information by program and by state.
Commercial
(including ASO members) Medicare Risk Medicaid Health Plan Total
2005 2004 2003 2005 2004 2003 2005 2004 2003 2005 2004 2003
(Membership in thousands)
Arizona ........ 117 129 119 31 35 36 — — — 148 164 155
California ....... 1,464 1,564 1,673 93 95 99 698 696 702 2,255 2,355 2,474
Connecticut ..... 276 284 311 27 27 27 88 94 98 391 405 436
New Jersey ...... 147 228 313 — — — 44 42 45 191 270 358
New York ...... 237 259 281 7 6 6 — — — 244 265 287
Oregon ......... 139 139 120 16 9 ———— 155148120
Pennsylvania .... — — 4 —————— — — 4
Total ....... 2,380 2,603 2,821 174 172 168 830 832 845 3,384 3,607 3,834
December 31, 2005 Compared to December 31, 2004
Total health plan membership decreased 6% to approximately 3.4 million members at December 31, 2005
from approximately 3.6 million members at December 31, 2004. Overall, small group and individual enrollment
declined 18% and large group enrollment declined 7% from December 31, 2004 to December 31, 2005.
Membership in our commercial health plans, including ASO members, decreased 9% at December 31, 2005
compared to December 31, 2004. This decrease was primarily attributable to the continued impact of premium
pricing increases implemented in early 2004 to address higher health care costs and network provider issues. The
enrollment decline was primarily seen in our California plan which had a net decline of 17,874 members in the
large group market and a net decline of 85,867 members in the PPO/POS products for the small group and
individual market reflecting a lapse rate of approximately 25%. Our New Jersey plan experienced a net decline of
45,571 members in the large group market and a net decline of 37,041 in the small group market. The Northeast
health plans collectively had a lapse rate of approximately 23%.
Membership in our Medicare Risk and Medicaid remained relatively stable at December 31, 2005 compared
to December 31, 2004.
We expect enrollment to stabilize during 2006. The new commercial enrollment we expect to receive upon
the closing of our Universal Care acquisition will be offset by certain large group departures. See “—Summary
of Operating Results—Year Ended December 31, 2005 Compared to Year Ended December 31, 2004.”
December 31, 2004 Compared to December 31, 2003
Total health plan membership decreased 6% to approximately 3.6 million members at December 31, 2004
from approximately 3.8 million members at December 31, 2003.
Enrollment in our commercial health plans, including ASO members, decreased 8% at December 31, 2004
compared to December 31, 2003. This decrease was primarily attributable to the premium pricing increases
implemented in early 2004 to address higher health care costs and network provider issues. The enrollment
decline was seen in the large and small group markets in all of our commercial health plans except our Arizona
and Oregon plans. Overall, small group and individual enrollment declined 12% from 2003 to 2004 and large
group enrollment declined 6%.
Membership in our federal Medicare Risk program increased 1% at December 31, 2004 compared to the
same period in 2003, primarily as a result of membership growth in our Oregon health plan, partially offset by
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