Health Net posts better-than-expected 4Q profit

Business Wire:

For the full year 2010, Health Net reported GAAP net income of $204.2 million, or $2.06 per diluted share, compared with a net loss of $49.0 million, or $0.47 per share, for the full year 2009.

Health plan services expenses decreased by 17.9 percent in the fourth quarter of 2010 to $2.1 billion from $2.6 billion in the fourth quarter of 2009.

Commercial health care costs PMPM in the Western Region increased by 5.7 percent to approximately $294 in the fourth quarter of 2010 compared with approximately $278 in the fourth quarter of 2009.

Health plan services expenses in the Western Region were flat at $2.1 billion in the fourth quarter of 2010 compared with the fourth quarter of 2009.

“The improvement in our commercial MCR is the result of continued pricing and underwriting discipline and less than expected health care cost increases,” Woys added.

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