8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): August 4, 2010

Health Net, Inc.

(Exact Name of Registrant as Specified in Charter)

Delaware	1-12718	95-4288333
(State or Other Jurisdiction	(Commission	(IRS Employer
of Incorporation)	File Number)	Identification No.)

21650 Oxnard Street, Woodland Hills, California	91367
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (818) 676-6000

Not Applicable

Former Name or Former Address, if Changed Since Last Report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01. Regulation FD Disclosure.

On August 5, 2010, members of Health Net, Inc.’s management team (the “Company”) will be meeting with investors and analysts at the BMO Capital Markets 10^th Annual Focus on Healthcare Conference. During these meetings, the Company intends to address its prospects and historical performance, and will reaffirm the Company’s earnings guidance for the full year 2010, as previously announced in a press release issued on August 3, 2010. The Company will have an audio webcast of its presentation at the meeting at 9:00 a.m. (Eastern Time) on August 5, 2010 from the “Investor Relations – Presentations and Webcasts” section of its website at www.healthnet.com. A replay of the Company’s presentation will be available on the Company’s website, and the Company’s slides for the presentation are attached to this Current Report on Form 8-K as Exhibit 99.1.

The information in this Item 7.01 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any Company filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

CAUTIONARY STATEMENT: Certain statements made in this report contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, that involve a number of risks and uncertainties. All statements, other than statements of historical information provided herein, may be deemed to be forward-looking statements. 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, health care reform; 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; rising health care costs; continued recessionary economic conditions or a further decline in the economy; negative prior period claims reserve developments; 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; investment portfolio impairment charges; volatility in the financial markets; 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 and subsequent Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (“SEC”), and the risks discussed in the Company’s other filings with the

SEC. 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 report.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

99.1 Health Net, Inc. Presentation Slides for the BMO Capital Markets 10^th Annual Focus on Healthcare Conference, dated August 5, 2010.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Health Net, Inc.
August 4, 2010	By:	/S/    ANGELEE F. BOUCHARD
	Name:	Angelee F. Bouchard
	Title:	Senior Vice President, General Counsel and Secretary

EX-99.1

Jay Gellert

President &

Chief Executive Officer

August 5, 2010

BMO Capital Markets

10th

Annual

Focus on Health Care

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, health care reform; 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; rising health care costs; continued recessionary economic conditions or a

further decline in the economy; negative prior period claims reserve developments; 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; investment portfolio impairment charges; volatility in

the financial markets; 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

and

subsequent

Quarterly

Reports

on

Form 10-Q filed with the Securities and Exchange Commission (“SEC”) and the risks discussed in the company’s other filings with

the SEC. 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

HNT: Well-Positioned for the Future

HNT: Well-Positioned for the Future

•

2010 performance on track

•

Stable and improving commercial margin with

cost-effective products and mix shifts

•

Medicare strategy focused on strong, established

network model

•

Solid Medi-Cal and TRICARE franchises

•

Opportunities for further G&A reductions

•

Strong balance sheet

•

Positioned for industry changes

4

2010 Earnings Guidance

2010 Earnings Guidance

Year-end

Membership

(a)

•

Commercial: -1% to -2%

•

Medicaid: +5% to +6%

•

Medicare Advantage: -2% to -3%

•

PDP: -6% to -7%

Consolidated Revenues

$13.0 to $13.5 billion

Commercial

Yields

(a)

~ 8.3% to 8.8%

Commercial

Health

Care

Cost

Trends

(a)

~ 60 to 80 bps < Premium Yields

Selling Cost Ratio

~ 2.4%

Government Contracts Ratio

~ 94.5% to 95.0%

G&A Expense Ratio

~ 8.8% to 9.0%

Tax Rate

(b)

~ 39.0%

Full-Year 2010 Diluted

Weighted-Average Shares Outstanding

99 million –

100 million

GAAP EPS

Combined Western Region Operations

and Government Contracts EPS

$2.07 to $2.17

$2.50 to $2.55

(a)

These metrics represent the company’s Western Region Operations.

(b)

For the combined Western Region and Government Contracts segments.

5

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

6

Medicare Strategy

Medicare Strategy

•

Built on network-model MA plans

•

“Staying the course”

in Part D

•

Positioned for margin stability in

the future

7

Government & Specialty Services

Government & Specialty Services

•

Current TRICARE contract extended through

March 31, 2011

•

Awarded new TRICARE North Region contract

•

Growth opportunities

–

MHN (behavioral health subsidiary)

–

Veterans Affairs

•

Stable financial performance

8

Low Administrative Costs

Low Administrative Costs

•

General and administrative efficiency an

integral part of future operations

•

Made necessary investments over the

past few years

•

Operations strategy nearly complete

•

Eliminate $80 million to $100 million in

run-rate general and administrative expenses

•

Create leaner, more focused organization

aligned with health care reform

9

Solid Financial Position

Solid Financial Position

•

As of June 30, 2010

-

Total cash and investments of $1.9 billion

-

Investment portfolio with market value of

$1.5

billion with an average credit quality of AA

-

Total debt of $498.6 million and debt-to-total capital

ratio of 23.4 percent

•

Expected year-end 2010 position

-

Cash at parent

-

Low debt-to-total capital

-

Ongoing cash from Northeast transaction

-

Risk-based capital above 400 percent

•

Future flexibility

10

HNT: The Future

HNT: The Future

•

Building commercial business with cost-effective

products and mix shifts

•

Medicare focused on strong, established

network model

•

Solid Medi-Cal and TRICARE franchises

•

Opportunities for further G&A reductions

•

Financial flexibility

•

Positioned for industry changes