Health Net 2010 Annual Report Download - page 68

The effective income tax rate in 2009 is an inverse ratio to the pretax loss. In 2009, we reported a tax
expense associated with a pretax loss because a significant portion of the loss on sale of our Northeast health plan
subsidiaries and the associated goodwill impairment is nondeductible for tax reporting purposes. The impact of
these nondeductible items is also the primary cause of the large change in tax rates between 2010 and 2009 and
between 2009 and 2008.
Western Region Operations Reportable Segment
Our Western Region Operations segment includes the operations of our commercial, Medicare (including
Part D) and Medicaid health plans, the operations of our health and life insurance companies primarily in
California, Arizona, Oregon and Washington and our behavioral health and pharmaceutical services subsidiaries
in several states including Arizona, California and Oregon.
Western Region Operations Segment Membership
As of December 31,
Change
2010 v 2009 2009 v 2008
Increase/
(Decrease)
%
Change
Increase/
(Decrease)
%
Change2010 2009 2008
(Membership in thousands)
California
Large Group ........................... 843 870 938 (27) (3.1)% (68) (7.2)%
Small Group and Individual ............... 348 357 414 (9) (2.5)% (57) (13.8)%
Commercial Risk ....................... 1,191 1,227 1,352 (36) (2.9)% (125) (9.2)%
ASO .................................055(5)(100.0)% 0 0.0%
Total Commercial ...................... 1,191 1,232 1,357 (41) (3.3)% (125) (9.2)%
Medicare Advantage .................... 133 137 133 (4) (2.9)% 4 3.0%
Medi-Cal/Medicaid ..................... 901 857 765 44 5.1% 92 12.0%
Total California .................... 2,225 2,226 2,255 (1) 0% (29) (1.3)%
Arizona
Large Group ........................... 56 59 77 (3) (5.1)% (18) (23.4)%
Small Group and Individual ............... 41 37 46 4 10.8% (9) (19.6)%
Commercial Risk ....................... 97 96 123 1 1.0% (27) (22.0)%
Medicare Advantage .................... 49 65 67 (16) (24.6)% (2) (3.0)%
Total Arizona ...................... 146 161 190 (15) (9.3)% (29) (15.3)%
Oregon (including Washington)
Large Group ........................... 51 72 93 (21) (29.2)% (21) (22.6)%
Small Group and Individual ............... 44 46 40 (2) (4.3)% 6 15.0%
Commercial Risk ....................... 95 118 133 (23) (19.5)% (15) (11.3)%
Medicare Advantage .................... 40 25 22 15 60.0% 3 13.6%
Total Oregon (including Washington) . . . 135 143 155 (8) (5.6)% (12) (7.7)%
Total Health Plan Enrollment
Large Group ........................... 950 1,001 1,108 (51) (5.1)% (107) (9.7)%
Small Group and Individual ............... 433 440 500 (7) (1.6)% (60) (12.0)%
Commercial Risk ....................... 1,383 1,441 1,608 (58) (4.0)% (167) (10.4)%
ASO .................................055(5)(100.0)% 0 0%
Total Commercial ...................... 1,383 1,446 1,613 (63) (4.4)% (167) (10.4)%
Medicare Advantage .................... 222 227 222 (5) (2.2)% 5 2.3%
Medi-Cal/Medicaid ..................... 901 857 765 44 5.1% 92 12.0%
Medicare PDP (stand-alone) .............. 427 460 545 (33) (7.2)% (85) (15.6)%
2,933 2,990 3,145 (57) (1.9)% (155) (4.9)%
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