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deemed to be forward-looking statements and as such are subject to a number of risks and uncertainties. These
statements are based on management’s analysis, judgment, belief and expectation only as of the date hereof, and
are subject to uncertainty and changes in circumstances. Without limiting the foregoing, statements including the
words “believes,” “anticipates,” “plans,” “expects,” “may,” “should,” “could,” “estimate,” “intend” and other similar
expressions are intended to identify forward-looking statements. Actual results could differ materially due to,
among other things, health care reform, including the ultimate impact of the Affordable Care Act, which could
materially adversely affect Health Net’s financial condition, results of operations and cash flows through, among
other things, reduced revenues, new taxes, expanded liability, and increased costs (including medical,
administrative, technology or other costs), or require changes to the ways in which Health Net does business;
rising health care costs; continued slow economic growth or a further decline in the economy; negative prior
period claims reserve developments; trends in medical care ratios; membership declines; unexpected
utilization patterns or unexpectedly severe or widespread illnesses; rate cuts affecting Health Net’s Medicare or
Medicaid businesses; costs, fees and expenses related to the post-closing administrative services provided
under the administrative services agreements entered into in connection with the sale of Health Net’s Northeast
business; potential termination of the administrative services agreements by the service recipients should Health
Net breach such agreements or fail to perform all or a material part of the services required thereunder; any
liabilities of the Northeast business that were incurred prior to the closing of its sale as well as those liabilities
incurred through the winding-up and running-out period of the Northeast business; litigation costs; regulatory
issues with agencies such as the California Department of Managed Health Care, the Centers for Medicare and
Medicaid Services and state departments of insurance, including the continued suspension of the marketing of
and enrollment into Health Net’s Medicare products for a significant period of time, which could have a material
adverse impact on Health Net’s Medicare business; operational issues; noncompliance by us or our business
associates with any privacy laws or any security breach involving the misappropriation, loss or other
unauthorized use or disclosure of confidential information; 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 this
Annual Report and subsequent Quarterly Reports on Form 10-Q filed with the Securities and Exchange
Commission (“SEC”), and the risks discussed in Health Net’s other filings with the SEC. Readers are cautioned
not to place undue reliance on these forward-looking statements. Health Net undertakes no obligation to publicly
revise these forward-looking statements to reflect events or circumstances that arise after the date of this
Annual Report.
On June 7, 2010, as required by Section 303A.12(a) of the New York Stock Exchange (“NYSE”) Listed Company
Manual, Health Net’s Chief Executive Officer provided the Annual CEO Certification, certifying that as of such date,
he was not aware of any violation by Health Net of NYSE’s Corporate Governance listing standards.