letter to stockholders
corporate overview
financial highlights
corporate information
directors and officers
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GOVERNMENT CONTRACTS
In May 2010, we were awarded the new TRICARE North Region contract. Health care delivery under
the new contract is scheduled to begin on April 1, 2011. This award continues our service to military
families and retirees – service that began in 1988.
Our demonstrated expertise in TRICARE has helped us diversify our presence in other government
programs. In 2010, we expanded our efforts to meet the behavioral health needs of our men and
women in uniform through the Military & Family Life Consultant program.
In addition, we added other contracts serving the Veterans Administration and entered the market for
correctional health services in 2010. These new contracts, though small, are important steps to further
diversify our business base.
CONCLUSION
We are very pleased that 2010 was a successful year for Health Net. We produced solid progress on
many fronts. There is more to be done. We must continue to support our affordable commercial plans.
We want to ensure stable performance in our range of government programs, and we need to
constantly strive for greater levels of efficiency.
As we look back on 2010, we also remember a long-time board member, Thomas T. Farley, who
passed away in August. Tom Farley always provided valued counsel in his more than 15 years on
the board. He will be missed.
We look forward to 2011 and the years to come, sobered by the challenges presented by health care
reform and the economy, yet buoyed by the success of 2010. We believe our position is sound, our
strategy wise and our commitment to stockholder value unwavering.
Thank you to all our stockholders for your support over the years. We believe that the best years lie
ahead for Health Net.
Sincerely,
Jay Gellert
President and Chief Executive Officer
April 4, 2011