We are pleased to report on a successful 2010 for Health Net, Inc.
While the world of health care was buffeted by the onset of health
care reform and challenges from the economy, our ongoing focus
on key strategic goals produced improved financial results and,
we believe, kept us on a course that should drive even stronger
performance in the future.

Our goals include the following:

Support our broad and diverse businesses that include commercial, Medicare and Medicaid
health plans in our Western Region Operations (Western Region) — Arizona, California,
Oregon and Washington — and the TRICARE North Region contract along with a range of
behavioral health services for our nation’s active duty military personnel;

Invest in and support further operating efficiencies so that our general and administrative
expenses are at the appropriate level to aid margin expansion and support growth;

Continuously review our current businesses and growth opportunities to be certain we have an
appropriate asset balance; and

Consistently expand margins, strengthen the balance sheet and use our capital to drive
improvement in stockholder value.

If we do these things day in and day out, we believe we will continue to meet our customers’ needs and
provide you, our stockholders, with solid returns now and in the future.