Health Net Announces 22% Increase in Second-Quarter Net Income
Woodland Hills-based Health Net Inc. yesterday announced a 22% increase in second-quarter net income after the health insurer dropped several unprofitable plans, the Los Angeles Times reports. Health Net posted $65 million, or 51 cents per share, in second-quarter net income, an increase from a $14 million loss, or 12 cents per share, a year earlier. Health Net's second-quarter revenue "rose slightly" from a year earlier to $2.5 billion. Health Net officials attributed the increase in second-quarter net income to the health insurer's decision to exit unprofitable markets, such as Medicare and Medicaid, and offer smaller plans in "key markets" such as California (Los Angeles Times, 7/26). Legg Mason analyst Clifford Hewitt said, "These results stem from Health Net's ability to develop a better product offering. Health Net is really in the process of going from a second-tier company to a first-tier organization" (Pondel, Los Angeles Daily News, 7/26).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.