2003 Key Initiatives

• Achieve profitable membership growth

  • Small group membership up 8,000 since 10/02
  • Continue shifts from HMO to PPO/POS

• Medical management programs

  • CHF
  • ESRD

• Multi-year hospital contracts to stabilize pricing

• Strengthen network and expand in rural areas

• 4-Tier Rx benefit

• Transition to Health Net One System -- COMPLETE!

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