Exhibit 99.1

Health Net, Inc.

Consolidated Statements of Operations

(Amounts in thousands, except per share, PMPM and ratio data)

	Quarter Ended December 31, 2007				Year Ended December 31, 2007
REVENUES:
Health plan services premiums	$	2,916,718			$	11,435,314
Government contracts		619,423				2,501,677
Net investment income		31,630				120,176
Administrative services fees and other income		15,482				51,104
Total revenues		3,583,253				14,108,271
EXPENSES:
Health plan services		2,409,332				9,762,896
Government contracts		556,648				2,307,610
General and administrative		317,099		A		1,275,555		A
Selling		90,332				327,827
Depreciation		8,816				30,282
Amortization		4,782				12,700
Interest		7,712				32,497
		3,394,721		A		13,749,367		A
Income from operations before income taxes		188,532		A		358,904		A
Income tax provision		71,605		A		165,207		A
Net income	$	116,927		A	$	193,697		A
Basic earnings per share	$	1.06		A	$	1.74		A
Diluted earnings per share	$	1.04		A	$	1.70		A
Weighted average shares outstanding:
Basic		110,087				111,316
Diluted		112,255				113,829
Pretax margin		5.3	%	A		2.5	%	A
Health plan services MCR		82.6	%			85.4	%
Government contracts cost ratio		89.9	%			92.2	%
G&A expense ratio		10.8	%	A		11.1	%	A
Selling costs ratio		3.1	%			2.9	%
Days claims payable		49.9				43.9
Days claims payable—adjusted		54.9				54.1
Effective tax rate		38.0	%	A		46.0	%	A
Health plan services premiums PMPM	$	266.88			$	263.54
Health plan services costs PMPM	$	220.45			$	225.00

A Amount updated from earnings release issued on February 5, 2008.

Health Net, Inc.

Consolidated Statements of Operations

(Amounts in thousands, except per share, PMPM and ratio data)

Note:

This table presents the company’s consolidated operations for the year ended December 31, 2007 and the charges recorded in the consolidated statement of operations for the year ended December 31, 2007. Management believes that the presentation of certain financial information in the attached press release (such as MCR, health care costs and G&A expenses), excluding the charges that were recorded in 2007, all of which is non-GAAP financial information, is important to investors as it excludes one-time items that are not indicative of our core operating results. This non-GAAP financial information should be considered in addition to, not as a substitute for, financial information prepared in accordance with GAAP.

	As Reported Year Ended December 31, 2007				Impact of Selected Costs Recorded in the Year Ended December 31, 2007			Excluding Impact of Selected Costs Recorded in the Year Ended December 31, 2007
REVENUES:
Health plan services premiums	$	11,435,314						$	11,435,314
Government contracts		2,501,677							2,501,677
Net investment income		120,176							120,176
Administrative services fees and other income		51,104							51,104
Total revenues		14,108,271							14,108,271
EXPENSES:
Health plan services		9,762,896			$	201,449			9,561,447
Government contracts		2,307,610							2,307,610
General and administrative		1,275,555		A		105,308			1,170,247
Selling		327,827							327,827
Depreciation		30,282							30,282
Amortization		12,700							12,700
Interest		32,497							32,497
		13,749,367		A		306,757			13,442,610
Income from operations before income taxes		358,904		A		(306,757	)		665,661
Income tax provision (benefit)		165,207		A		(84,321	)		249,528
Net income	$	193,697		A	$	(222,436	)	$	416,133
Basic earnings per share	$	1.74		A	$	(2.00	)	$	3.74
Diluted earnings per share	$	1.70		A	$	(1.96	)	$	3.66
Weighted average shares outstanding:
Basic		111,316							111,316
Diluted		113,829							113,829
Pretax margin		2.5	%	A		-2.2	%		4.7	%
Health plan services MCR		85.4	%			1.8	%		83.6	%
Government contracts cost ratio		92.2	%			—			92.2	%
G&A expense ratio		11.1	%	A		0.9	%		10.2	%
Selling costs ratio		2.9	%			—			2.9	%
Effective tax rate		46.0	%	A		8.5	%		37.5	%

A Amount updated from earnings release issued on February 5, 2008.

Health Net, Inc.

Consolidated Balance Sheet

(Amounts in thousands, except ratio data)

	December 31, 2007
ASSETS
Current Assets
Cash and cash equivalents	$	1,007,017
Investments—available for sale		1,557,278
Premiums receivable, net		264,691
Amounts receivable under government contracts		189,976
Incurred but not reported (IBNR) health care costs receivable
under TRICARE North contract		266,767
Other receivables		72,518
Deferred taxes		132,818
Other assets		210,039
Total current assets		3,701,104
Property and equipment, net		178,758
Goodwill, net		751,949
Other intangible assets, net		109,386
Deferred taxes		47,765
Other noncurrent assets		144,093
Total Assets	$	4,933,055
Income tax provision
Current Liabilities
Reserves for claims and other settlements	$	1,300,432
Health care and other costs payable under government contracts		69,014
IBNR health care costs payable under TRICARE North contract		266,767
Unearned premiums		176,981
Loans payable		35,000
Accounts payable and other liabilities		463,823		A
Total current liabilities		2,312,017		A
Senior notes payable		398,071
Loans payable		112,363
Other noncurrent liabilities		235,022
Total Liabilities		3,057,473		A
Stockholders’ Equity
Common stock and additional paid-in capital		1,151,395
Treasury common stock, at cost		(1,123,750	)
Retained earnings		1,849,097		A
Accumulated other comprehensive loss		(1,160	)
Total Stockholders’ Equity		1,875,582		A
Total Liabilities and Stockholders’ Equity	$	4,933,055
Debt-to-Total Capital Ratio		22.5	%

A Amount updated from earnings release issued on February 5, 2008.

Health Net, Inc.

Consolidated Statements of Cash Flows

(Amounts in thousands)

	Quarter Ended December 31, 2007				Year Ended December 31, 2007
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	116,927		A	$	193,697		A
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization and depreciation		13,598				42,982
Share-based compensation expense		6,457				24,298
Other changes		(3,498	)			(7,955	)
Changes in assets and liabilities, net of the effects of dispositions/acquisitions:
Premiums receivable and unearned premiums		24,037				(74,184	)
Other receivables, deferred taxes and other assets		38,884				45,154
Amounts receivable/payable under government contracts		1,213				26,223
Reserves for claims and other settlements		(12,672	)			251,636
Accounts payable and other liabilities		72,021		A		103,631		A
Net cash provided by operating activities		256,967				605,482
CASH FLOWS FROM INVESTING ACTIVITIES:
Income tax provision		242,421				807,649
Maturities of investments		65,606				213,833
Purchases of investments		(397,611	)			(1,180,854	)
Proceeds from sale of property and equipment		—				96,748
Purchases of property and equipment		(17,342	)			(64,850	)
Cash paid for acquisition of assets and businesses		—				(80,277	)
Purchases and Sales of restricted investments and other		7,127				(22,444	)
Net cash used in investing activities		(99,799	)			(230,195	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options and employee stock purchases		2,525				72,622
Repurchases of common stock		(27,052	)			(232,220	)
Excess tax benefits from share-based compensation		487				17,987
Borrowings under financing arrangements		175,000				668,535
Repayment of borrowings under financing arrangements		—				(600,000	)
Net cash provided by (used in) financing activities		150,960				(73,076	)
Net increase in cash and cash equivalents		308,128				302,211
Cash and cash equivalents, beginning of period		698,889				704,806
Cash and cash equivalents, end of period	$	1,007,017			$	1,007,017

A Amount updated from earnings release issued on February 5, 2008.