State of California Awards Prison Health Contract to Health Net Federal Services
November 13 2014 - 8:30AM
Business Wire
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
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.
Investor Contact:The Abernathy MacGregor GroupDavid
Olson818-917-1469dwo@abmac.comorMedia Contact:Health Net,
Inc.Brad
Kieffer818-676-6833brad.kieffer@healthnet.comwww.twitter.com/hn_bradkieffer
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