Health Net provides a full spectrum of managed health care products to approximately 6.0 million members through our diverse businesses:
Commercial
Health Net provides managed care benefits to nearly 1.4 million individual and small and large employer group members in California, Arizona, Oregon and Washington. Persistent economic pressures create a sharper focus on the affordability of health care. In most of our markets, we offer tailored network plans that are built on strong relationships with select physicians, hospitals and other health care partners who demonstrate an optimal combination of quality and cost effectiveness. These plans combine comprehensive benefits with more affordable premiums compared with other products in the market.As of December 31, 2011
Medicare Advantage and Medicare Stand-alone Prescription Drug Plans (Medicare PDP)
With approximately 205,000 Medicare Advantage (MA) members, Health Net provides a variety of MA plans to eligible seniors and others. As with our commercial business, our MA strategy is to provide seniors with comprehensive benefits at affordable prices. Through our Medicare PDP business, we serve approximately 382,000 members in 49 states and the District of Columbia. On January 9, 2012, the company announced the proposed sale of its Medicare PDP business to CVS/Caremark for approximately $160 million in cash. The transaction is expected to close in the second quarter of 2012 and is subject to regulatory approval.
State Health Programs
(SHP)
Health Net participates in California's Medicaid (Medi-Cal) program, including Seniors and Persons with Disabilities, and the Children's Health Insurance Program (Healthy Families), California's program for low income children. Through its SHP business, Health Net serves more than one million members in 12 counties in California. In 2011 and for the third consecutive year, Health Net of California's Medi-Cal program was the highest ranked Medicaid plan in the state according to the National Committee for Quality Assurance. We believe we are well-positioned for a variety of potential growth opportunities as a result of health care reform and the possible expansion of Medicaid coverage.