Health Net 2009 Annual Report Download - page 63

Medicare premiums increased by $151.4 million, or 4%, for the year ended December 31, 2009 as compared
to the same period in 2008. This increase was primarily due to premium rate increases, partially offset by
membership declines.
Medicaid premiums increased by $132.3 million, or 12%, for the year ended December 31, 2009 as
compared to the same periods in 2008. These increases were primarily attributable to an increase in our Medicaid
membership, driven by the economic downturn that caused the Medicaid-eligible population to increase.
West Operations
Commercial premium revenues for our West Operations decreased by $113.2 million, or 2%, for the year
ended December 31, 2009 as compared to the same period in 2008. These decreases were primarily attributable
to a decrease in our commercial risk membership. The commercial premium PMPM increased by 9.2% for the
year ended December 31, 2009 as compared to the same period in 2008.
Medicare premiums for our West Operations increased by $205.6 million, or 7%, for the year ended
December 31, 2009 as compared to the same period in 2008. These increases were primarily attributable to an
increase in members participating in Medicare Advantage and premium rate increases, partially offset by
Medicare Part D membership declines.
Medicaid premiums for our West Operations increased by $120.1 million, or 13%, for the year ended
December 31, 2009 as compared to the same period in 2008. These increases were primarily attributable to an
increase in our Medi-Cal membership.
Northeast Operations
Commercial premium revenues for our Northeast Operations decreased by $121.9 million, or 6%, for the
year ended December 31, 2009 as compared to the same period in 2008. Medicare premiums for our Northeast
Operations decreased by $54.2 million, or 8%, for the year ended December 31, 2009 as compared to the same
period in 2008. Medicaid premiums for our Northeast Operations increased by $12.2 million, or 10%, for the
year ended December 31, 2009 as compared to the same period in 2008. The decrease in the Northeast
Operations premium revenues is primarily attributable to the Northeast Sale on December 11, 2009.
Year Ended December 31, 2008 Compared to Year Ended December 31, 2007
Commercial premium revenues increased by $329.5 million, or 4%, for the year ended December 31, 2008
as compared to the same period in 2007. These increases were primarily attributable to our ongoing pricing
discipline and premium rate increases, partially offset by membership declines.
Medicare premiums increased by $742.6 million, or 27%, for the year ended December 31, 2008 as
compared to the same period in 2007. This increase was primarily due to an increase in members participating in
the Medicare Advantage and Medicare Part D prescription drug program.
Medicaid premiums decreased by $115.4 million, or 10%, for the year ended December 31, 2008 as
compared to the same period in 2007 primarily due to a decrease in Connecticut Medicaid membership. We
served the Connecticut Medicaid members on an ASO basis through the end of the first quarter of 2008, and we
completed our exit from the Connecticut Medicaid program in April 2008. We recognized $0 and $185 million of
premium revenue from our Connecticut Medicaid program during the years ended December 31, 2008 and 2007,
respectively. Partially offsetting the decrease in Medicaid premiums from the cessation of the Connecticut
program was a $19 million increase from a change in estimate due to revised application of California Medi-Cal
program premium rates for 2001 and 2002 plan years.
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