Health Net Federal Services will continue providing California
Department of Corrections and Rehabilitation with a network of
community-based specialty health care providers and other services
Company Website:
http://www.healthnet.com
SACRAMENTO, Calif. -- (Business Wire)
Health
Net Federal Services, LLC (Health Net), a subsidiary of Health
Net, Inc., today announced that it has entered into a contract with
California Department of Corrections and Rehabilitation (CDCR) to
continue providing CDCR a network of community-based specialty health
care providers.
Health Net also will provide, per the terms of the contract, third-party
administration of health care claims and development of, and ongoing
support for, an electronic prior-authorization program for CDCR.
“Health Net has partnered with the state and CDCR since 2010 to provide
cost-efficient access to quality health care services for the state’s 35
prison institutions and two youth facilities,” said Tom Carrato,
president of Health Net Federal Services. “We’re pleased for the
opportunity to work with CDCR to integrate claims processing services
and a prior-authorization program that are intended to enhance the
timely delivery and effective management of medically necessary health
care services, as well as provide appropriate financial stewardship.”
The contract is effective as of October 1, 2014, and will continue for
an initial term of five years, with five one-year extensions at CDCR’s
option.
About Health Net Federal Services
Health
Net Federal Services has a long history of providing cost-effective,
quality managed health care programs for government agencies, including
the Departments of Defense and Veterans Affairs. As the managed care
support contractor for the TRICARE North Region, Health Net provides
health care services to approximately 2.8 million uniformed services
beneficiaries, active and retired, and their families. In addition,
Health Net provides high quality, cost-effective health care solutions
for veterans, as well as behavioral health services for active duty
service members, veterans and their families.
Additionally, Health Net Federal Services administers the Department of
Veterans Affairs’ Patient Centered Community Care (PC3) program in three
of six regions across the United States (regions 1, 2 and 4), which
includes all or portions of 37 states, the District of Columbia, Puerto
Rico and the U.S. Virgin Islands. The PC3 program provides eligible
veterans access to health care through a comprehensive network of
community-based, non-VA medical professionals who meet VA quality
standards when VA supplements care outside its own facilities. In 2014,
VA extended its PC3 contract with Health Net to include primary care
services for veterans who are unable to obtain primary care at a VA
medical center in the three PC3 regions in which Health Net operates.
The expanded PC3 contract now adds primary care services to Health Net’s
existing specialty care and behavioral health services.
About Health Net
Health Net, Inc. (NYSE: HNT) is a publicly traded managed care
organization that delivers managed health care services through health
plans and government-sponsored managed care plans. Its mission is to
help people be healthy, secure and comfortable. Health Net provides and
administers health benefits to approximately 5.9 million individuals
across the country through group, individual, Medicare (including the
Medicare prescription drug benefit commonly referred to as “Part D”),
Medicaid, U.S. Department of Defense, including TRICARE, and Veterans
Affairs programs. Health Net also offers behavioral health, substance
abuse and employee assistance programs, managed health care products
related to prescription drugs, managed health care product coordination
for multi-region employers, and administrative services for medical
groups and self-funded benefits programs.
For more information on Health Net, Inc., please visit Health Net’s
website at www.healthnet.com.
Cautionary Statements
The company and its representatives may from time to time make written
and oral forward-looking statements within the meaning of the Private
Securities Litigation Reform Act (“PSLRA”) of 1995, including statements
in this and other press releases, in presentations, filings with the
Securities and Exchange Commission (“SEC”), reports to stockholders and
in meetings with investors and analysts. All statements in this press
release, other than statements of historical information provided
herein, may be deemed to be forward-looking statements and as such are
intended to be covered by the safe harbor for “forward-looking
statements” provided by PSLRA. These statements are based on
management’s analysis, judgment, belief and expectation only as of the
date hereof, and are subject to changes in circumstances and a number of
risks and uncertainties. Without limiting the foregoing, statements
including the words “believes,” “anticipates,” “plans,” “expects,”
“may,” “should,” “could,” “estimate,” “intend,” “feels,” “will,”
“projects” and other similar expressions are intended to identify
forward-looking statements. Actual results could differ materially from
those expressed in, or implied or projected by the forward-looking
information and statements due to, among other things, health care
reform and other increased government participation in and taxation or
regulation of health benefits and managed care operations, including but
not limited to the implementation of the Patient Protection and
Affordable Care Act and the Health Care and Education Reconciliation Act
of 2010 (collectively, the "ACA") and related fees, assessments and
taxes; the company’s ability to successfully participate in California’s
Coordinated Care Initiative, which is subject to a number of risks
inherent in untested health care initiatives and requires the company to
adequately predict the costs of providing benefits to individuals that
are generally among the most chronically ill within each of Medicare and
Medi-Cal and implement delivery systems for benefits with which the
company has limited operating experience; the company’s ability to
successfully participate in the federal and state health insurance
exchanges under the ACA, which have experienced technical challenges in
implementation and which involve uncertainties related to the mix and
volume of business that could negatively impact the adequacy of our
premium rates and may not be sufficiently offset by the risk
apportionment provisions of the ACA; increasing health care costs,
including but not limited to costs associated with the introduction of
new treatments or therapies; our ability to reduce administrative
expenses while maintaining targeted levels of service and operating
performance, including through our master services agreement with
Cognizant; whether we receive required regulatory approvals for
Cognizant’s provision of services to us and any conditions imposed in
order to obtain such regulatory approvals; our ability to recognize the
intended cost savings and other intended benefits of the Cognizant
transaction; and the risk that Cognizant may not perform contracted
functions and services in a timely, satisfactory and compliant manner;
negative prior period claims reserve developments; rate cuts and other
risks and uncertainties affecting the company’s Medicare or Medicaid
businesses; the company’s ability to successfully participate in
Arizona’s Medicaid program; trends in medical care ratios; membership
declines or negative changes in our health care product mix; unexpected
utilization patterns or unexpectedly severe or widespread illnesses; the
timing of collections on amounts receivable from state and federal
governments and agencies, including collections of amounts owed under
the T-3 contract; litigation costs; regulatory issues with federal and
state agencies including, but not limited to, the California Department
of Managed Health Care, the Centers for Medicare & Medicaid Services,
the Office of Civil Rights of the U.S. Department of Health and Human
Services and state departments of insurance; operational issues; changes
in economic or market conditions; failure to effectively oversee our
third-party vendors; noncompliance by the company or the company’s
business associates with any privacy laws or any security breach
involving the misappropriation, loss or other unauthorized use or
disclosure of confidential information; impairment of the company’s
goodwill or other intangible assets; investment portfolio impairment
charges; volatility in the financial markets; and general business and
market conditions. Additional factors that could cause actual results to
differ materially from those reflected in the forward-looking statements
include, but are not limited to, the risks discussed in the “Risk
Factors” section included within the company’s most recent Annual Report
on Form 10-K and subsequent Quarterly Reports on Form 10-Q filed with
the SEC and the other risks discussed in the company’s filings with the
SEC. Readers are cautioned not to place undue reliance on these
forward-looking statements. Except as may be required by law, the
company undertakes no obligation to address or publicly update any
forward-looking statements to reflect events or circumstances that arise
after the date of this release.
Contacts:
Investor Contact:
The Abernathy MacGregor Group
David
Olson
818-917-1469
dwo@abmac.com
or
Media
Contact:
Health Net, Inc.
Brad Kieffer
818-676-6833
brad.kieffer@healthnet.com
www.twitter.com/hn_bradkieffer
Source: Health Net Federal Services, LLC
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