Health Net 2009 Annual Report Download - page 23

reference herein, may be deemed to be forward-looking statements. Without limiting the foregoing, the words
“believes,” “anticipates,” “plans,” “expects,” “may,” “should,” “could,” “estimate” and “intend” and other
similar expressions are intended to identify forward-looking statements. Actual results could differ materially due
to, among other things, costs, fees and expenses related to the post-closing administrative services to be provided
under the United Administrative Services Agreements entered into in connection with the Northeast Sale;
potential termination of the United Administrative Services Agreements by the service recipients should we
breach such agreements or fail to perform all or a material part of the services required thereunder; any liabilities
of our Northeast operations that were incurred prior to the closing of the Northeast Sale as well as those liabilities
incurred through the winding-up and running-out period of the Northeast operations; potential termination of our
TRICARE North operations; potential health care reform; rising health care costs; continued recessionary
economic conditions or a further decline in the economy; negative prior period claims reserve developments;
trends in medical care ratios; unexpected utilization patterns or unexpectedly severe or widespread illnesses;
membership declines; rate cuts affecting our Medicare or Medicaid businesses; litigation costs; regulatory issues;
operational issues; investment portfolio impairment charges; volatility in the financial markets; and general
business and market conditions. Additional factors that could cause our actual results to differ materially from
those reflected in forward-looking statements include, but are not limited to, the factors set forth below and the
risks discussed in our other filings from time to time with the SEC.
Any or all forward-looking statements in this Annual Report on Form 10-K and in any other public filings
or statements we make may turn out to be wrong. They can be affected by inaccurate assumptions we might
make or by known or unknown risks and uncertainties. Many of the factors discussed below will be important in
determining future results. These factors should be considered in conjunction with any discussion of operations
or results by us or our representatives, including any forward-looking discussion, as well as comments contained
in press releases, presentations to securities analysts or investors or other communications by us. You should not
place undue reliance on any forward-looking statements, which reflect management’s analysis, judgment, belief
or expectation only as of the date thereof. Except as may be required by law, we do not undertake to address or
update forward-looking statements.
Potential health care reform legislation being considered by Congress may adversely affect us.
The issue of affordable health insurance and the challenge of covering the uninsured have generated
significant amounts of public attention. The United States Senate and House of Representatives passed separate
health care reform bills in late 2009. These bills have not yet been reconciled or signed into law. In addition,
certain members of Congress have proposed a single-payer health care system, a government health insurance
option to compete with private plans and other expanded public health care measures. It is possible that any final
health care reform legislation could include one or more of the following elements, some of which would change
the dynamics of the health care industry:
• Requirement that health plans pay significantly higher taxes, including a special assessment or annual
operating fee for health insurance providers to fund the legislation;
• An excise tax on high cost employer-provider health coverage to fund the legislation;
• Regulation of the individual coverage market by restricting or mandating premium levels or mandating
coverage for individuals with pre-existing medical conditions, restricting our underwriting discretion,
or restricting our ability to rescind coverage based on a member’s misrepresentations and omissions;
• Require prior regulatory approval of premium rate increases, or other requirements that would limit the
ability of health plans and insurers to vary premiums and/or accurately price based on assessments of
underlying risk;
• Elimination of certain caps on health care coverage;
• A health care exchange to facilitate uninsured individuals’ access to health care coverage from private
companies; and
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