Health Net’s Profits Rise 24% in Fourth Quarter
Health Net Inc., one of California's biggest health insurers, yesterday announced that its fourth-quarter profits increased 24%, "as it attracted customers with lower-cost health plans," Bloomberg News/Los Angeles Times reports. Officials for the Woodland Hills-based company said fourth-quarter net income was $46.2 million, or 37 cents a share, up from $37.4 million, or 31 cents, during the same quarter last year, and revenue rose 7.1% to $2.4 billion, up from $2.2 billion a year earlier. Bloomberg News/Los Angeles Times reports that Health Net "raised premiums faster than medical costs increased and controlled administrative expenses." The insurer said it gained 125,000 customers during the fourth quarter, mostly in its less-costly employer plans that are "popular with businesses trying to save money on health care costs." CEO Jay Gellert said Health Net will benefit if the economy continues to slow because it can offer employers health plans that "cost less than other types of coverage" (Bloomberg News/Los Angeles Times, 2/22).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.