Health Net Federal Services Receives Contract Extension of up to Three Additional One-Year Option Periods to Continue Providi...
March 27 2015 - 4:10PM
Business Wire
Contract in the North Region now runs through
at least March 31, 2016
Health Net Federal Services, LLC (Health Net), a subsidiary of
Health Net, Inc., today announced that the U.S. Department of
Defense (DoD) modified the Company’s TRICARE program contract in
the North Region to, among other things, add three additional
one-year option periods.
As part of the modification, the DoD awarded the first of the
three option periods, allowing Health Net to continue providing
access to health care services to TRICARE beneficiaries through at
least March 31, 2016. If the DoD ultimately exercises the two
remaining option periods, the contract will run through March 31,
2018.
“Health Net is gratified for the opportunity to continue serving
men and women who bravely serve our country, as well as their
family members and military retirees,” said Thomas Carrato,
president of Health Net Federal Services. “And we are honored that
the DoD recognizes the value of our programs and services.”
Health Net has administered the TRICARE program for active-duty
members of the military and their family members in the North
Region since 2004. It currently provides benefits to about 2.8
million eligible beneficiaries. The North Region encompasses all or
portions of 22 states and the District of Columbia.
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 U.S. Departments of Defense and Veterans
Affairs (VA). As the managed care support contractor for the
TRICARE program in the 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.
Health Net Federal Services also works collaboratively with VA
to administer the Patient Centered Community Care program. Health
Net Federal Services processes authorizations for health care on
behalf of VA for veterans to receive care from authorized community
providers, schedules appointments, manages receipt of all required
medical documentation for care, and processes claims for
payment.
For information about Health Net Federal Services, please visit
www.hnfs.com.
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 6.0 million individuals across the country
through group, individual, Medicare (including the Medicare
prescription drug benefit commonly referred to as “Part D”),
Medicaid, dual eligible, U.S. Department of Defense, including
TRICARE, and U.S. Department of 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 involve uncertainties related to the mix and volume of
business that could negatively impact the adequacy of the company’s
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; the company’s ability to reduce
administrative expenses while maintaining targeted levels of
service and operating performance, including through the company’s
master services agreement with a subsidiary of Cognizant Technology
Solutions Corporation (Cognizant); whether the company receives
required regulatory approvals for Cognizant’s provision of services
to the company and any conditions imposed in order to obtain such
regulatory approvals; the company’s ability to recognize the
intended cost savings and other intended benefits of the Cognizant
transaction; 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; trends in medical care ratios;
membership declines or negative changes in the company’s health
care product mix; unexpected utilization patterns or unexpectedly
severe or widespread illnesses; failure to effectively oversee the
company’s 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; the timing of
collections on amounts receivable from state and federal
governments and agencies; litigation costs; regulatory issues with
federal and state agencies including, but not limited to, the
California Department of Managed Health Care and Department of
Health Care Services, the Arizona Health Care Cost Containment
System, 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; 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
of its forward-looking statements to reflect events or
circumstances that arise after the date of this release.
Health Net, Inc.Investor Contact:Peter O’Neill,
818-676-8692peter.oneill@healthnet.comorMedia Contact:Brad
Kieffer,
818-676-6833brad.kieffer@healthnet.comwww.twitter.com/hn_bradkieffer
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