Health Net 2011 Annual Report Download - page 3

PART I
Item 1. Business.
General
We are a publicly traded managed care organization that delivers managed health care services through
health plans and government-sponsored managed care plans. Our mission is to help people be healthy, secure and
comfortable. We operate and conduct our businesses through subsidiaries of Health Net, Inc. In this Annual
Report on Form 10-K, unless the context otherwise requires, the terms “Company,” “Health Net,” “we,” “us,”
and “our” refer to Health Net, Inc. and its subsidiaries. We provide and administer health benefits to
approximately 6.0 million individuals across the country through group, individual, Medicare, Medicaid, U.S.
Department of Defense (“Department of Defense” or “DoD”), including TRICARE, and Veterans Affairs
programs. Our behavioral health services subsidiary, Managed Health Network, Inc., provides behavioral health,
substance abuse and employee assistance programs to approximately 5.0 million individuals, including our own
health plan members. Our subsidiaries also offer managed health care products related to prescription drugs, and
offer managed health care product coordination for multi-region employers and administrative services for
medical groups and self-funded benefits programs.
We were incorporated in 1990. Our current operations are the result of the April 1, 1997 merger transaction
(the “FHS Combination”) involving Health Systems International, Inc. (“HSI”) and Foundation Health
Corporation. We changed our name to Health Net, Inc. in November 2000. Prior to the FHS Combination, we
were the successor to the business conducted by Health Net of California, Inc., now our HMO subsidiary in
California, and HMO and PPO networks operated by QualMed, Inc., which combined with us in 1994 to create
HSI.
Our executive offices are located at 21650 Oxnard Street, Woodland Hills, California 91367, and our
Internet web site address is www.healthnet.com.
We make available free of charge on or through our Internet web site, www.healthnet.com, our Annual
Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K and all amendments to
those reports filed or furnished pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of
1934, as amended (the “Exchange Act”) as soon as reasonably practicable after we electronically file such
material with, or furnish it to, the Securities and Exchange Commission (“SEC”). Copies of our Corporate
Governance Guidelines, Code of Business Conduct and Ethics, Director Independence Standards and charters for
the Audit Committee, Compensation Committee, Governance Committee and Finance Committee of our Board
of Directors are also available on our Internet web site. We will provide electronic or paper copies free of charge
upon request. Please direct your written request to Investor Relations, Health Net, Inc., 21650 Oxnard Street,
Woodland Hills, California 91367, or contact Investor Relations by telephone at [phone].
Our transfer agent, Wells Fargo, can help you with a variety of shareholder-related services, including
change of address, lost stock certificates, transfer of stock to another person and other administrative services.
You can write to our transfer agent at: Wells Fargo Shareowner Services, P.O. Box 64854, St. Paul, Minnesota
55164-0854, email [email protected], or telephone [phone] or [phone].
Segment Information
We currently operate within three reportable segments, Western Region Operations, Government Contracts
and Northeast Operations, each of which is described below. For additional financial information regarding our
reportable segments, see “Results of Operations” in “Item 7. Management’s Discussion and Analysis of Financial
Condition and Results of Operations” and Note 14 to our consolidated financial statements included as part of
this Annual Report on Form 10-K.
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