Jay Gellert

President & Chief Executive Officer

Health Net, Inc.

February 8, 2010

2010 UBS Global Healthcare

Services Conference

EXHIBIT 99.1

2

Cautionary Statement

Cautionary Statement

All statements in this presentation, other than statements of historical information provided herein, may be deemed to be

forward-looking statements and as such are subject to a number of risks and uncertainties. These statements are based on

management’s analysis,

judgment,

belief

and

expectation

only

as

of

the

date

hereof,

and

are

subject

to

uncertainty

and

changes

in circumstances.

Without

limiting

the

foregoing,

statements

including

the

words

“believes,”

“anticipates,”

“plans,”

“expects,”

“may,”

“should,”

“could,”

“estimate,”

“intend”

and other similar expressions are intended to identify forward-looking statements.

Actual results could differ materially due to, among other things, costs, fees and expenses related to the post-closing

administrative services to be provided under the administrative services agreements entered into in connection with the sale of

our Northeast business; potential termination of the administrative services agreements by the service recipients should we

breach

such

agreements

or

fail

to

perform

all

or

a

material

part

of

the

services

required

thereunder;

any

liabilities

of

the

Northeast business that were incurred prior to the closing of its sale as well as those liabilities incurred through the winding-up

and running-out period of the Northeast business; potential termination of our TRICARE North operations; rising health care

costs;

a

continued

decline

in

the

economy;

negative

prior

period

claims

reserve

developments;

investment

portfolio

impairment

charges; volatility in the financial markets; trends in medical care ratios; unexpected utilization patterns or unexpectedly severe or

widespread illnesses; membership declines; rate cuts affecting our Medicare or Medicaid businesses; litigation costs; regulatory

issues; operational issues; health care reform; and general business and market conditions. Additional factors that could cause

actual results to differ materially from those reflected in the forward-looking statements include, but are not limited to, the risks

discussed in

the

“Risk

Factors”

section

included

within

the

company's

most

recent

Annual

Report

on

Form

10-K,

subsequent

quarterly reports on Form 10-Q, and the risks discussed in the company’s other filings with the Securities and Exchange

Commission.

Readers

are

cautioned

not

to

place

undue

reliance

on

these

forward-looking

statements.

The

company

undertakes

no obligation

to

publicly

revise

any

of

its

forward-looking

statements

to

reflect

events

or

circumstances

that

arise

after

the

date of

this presentation.

3

Non-GAAP Measures

Non-GAAP Measures

•

This presentation includes quarterly income statement

measurements that are not calculated and presented in

accordance with Generally Accepted Accounting Principles.

Audience participants should refer to the reconciliation table

available in the company’s fourth quarter and year-end 2009

earnings press release, available on the company’s Web site at

www.healthnet.com,

which

reconciles

certain

non-GAAP

financial information to GAAP financial information.

•

Management believes that the non-GAAP financial information

discussed in this presentation is useful as it provides the

audience a basis to better understand the company’s results by

excluding items that are not indicative of our core operating

results for the periods presented.

4

2009 Summary

2009 Summary

•

Improve Medicare performance

•

Solidify commercial base

•

Close Northeast transaction

•

Strengthen balance sheet

•

Strong TRICARE performance

•

Position for the future

5

Preliminary 2010 Expectations

Preliminary 2010 Expectations

As of February 3, 2010

Metric

2010 Guidance

Year-end Membership

Health Plan enrollment vs. 2009:  flat

Consolidated Revenues

$13.0 billion to $13.5 billion

Investment Income

~ $62

million

-

$68

million

Tax

Rate

(a)

~ 39%

Weighted-average Diluted

Shares Outstanding

103 million to 104 million

GAAP EPS

Non-GAAP EPS

(a)

$1.92 to $2.02

$2.32 to $2.42

(a)

Excludes approximately $69 million in pretax charges. These charges include approximately $53 million related to the wind-down of the company’s

Northeast businesses and approximately $16 million related to the company’s operations strategy. The company currently expects these charges to

impact general and administrative expenses.

6

Commercial Opportunities

Commercial Opportunities

•

Product mix aligned with market changes

•

Lower-cost, narrow network products gaining traction

–

Interest in narrow networks resulting from economy

–

Key to small group and mid-market growth

•

Further margin expansion

–

Disciplined pricing and stable health care costs

–

Beneficial product and geographic mix changes

•

Positioned for growth resulting from ongoing

environmental changes

7

Medicare Strategy

Medicare Strategy

•

Built on network-model MA plans

•

Exiting Private Fee-for-Service in 2010

•

“Staying the course”

in Part D

•

Positioned for margin stability in the future

8

Government & Specialty Services

Government & Specialty Services

•

Stable financial performance

•

TRICARE update

–

DoD

to

follow

GAO

recommendations

–

will

review

unfair

competitive advantage issue first; if necessary, will

evaluate other flaws identified in GAO decision

–

No timeline for concluding review given

–

DoD

has given formal intent to exercise Option Periods

under current contract through March 31, 2011

•

Growth opportunities

–

MHN (behavioral health subsidiary)

–

Veterans Affairs

9

Repositioning G&A

Repositioning G&A

•

G&A reductions an integral part of margin expansion

•

Made necessary investments over the past few years

•

Operations strategy nearly complete --

$100 million+

in run-rate savings achieved since 2007

•

Eliminate $80 million to $100 million in run-rate G&A

expenses in 2011

•

Create leaner, more focused organization

10

Strong Balance Sheet

Strong Balance Sheet

•

As of December 31, 2009:

–

Total cash and investments of $2.1 billion with an

average credit quality of AA+

–

Investment portfolio with market value of $1.4 billion

–

Total debt of $602.5 million and debt-to-total capital

ratio of 26.2%

•

Ended 2009 with approximately $450 million of cash at

parent after increasing subsidiary capital by $100 million

•

Expect approximately $140 million to $260 million in

additional net proceeds from the Northeast transaction

during an estimated two-year transition period*

*See Appendix for details

11

Health Net: The Future

Health Net: The Future

•

Opportunities to expand margins

•

Positioned for value-driven demand in marketplace

•

Medicare strategy focused on margin stability and

strong markets

•

G&A reductions aligned with repositioned business

•

Building strong cash position

•

Positioned for industry changes

12

Appendix

Appendix

•

Northeast transaction currently valued at approximately $490 million to $610 million

–

Received $350 million in proceeds at closing ($290 million in tangible net equity*

and $60 million membership-related payments)

–

Expect approximately $160 million to $280 million in additional proceeds during

the transition period

Remaining tangible net equity payments of approximately $160 million

Additional membership payments of up to $120 million           

(this amount is dependent on a number of factors, including the number of commercial

members

that

transition

to

UnitedHealthcare

legacy

products)

–

Net expense of $20 million from run-out, tax benefits, freed capital and other

costs

* Subject to true-up 60 days post-closing.

Note: Additional information regarding the terms of the Northeast transaction is available in Health Net’s Form 8-Ks on file with the SEC