HEALTH NET TO SELL MEDICARE STAND-ALONE PRESCRIPTION DRUG PLAN BUSINESS TO CVS CAREMARK FOR APPROXIMATELY $160 MILLION
LOS ANGELES–(BUSINESS WIRE)– Health Net, Inc. (NYSE:HNT – News) currently voiced that the subsidiary, Health Net Life Insurance Company, has entered in to a definitive agreement to sell the Medicare stand-alone Prescription Drug Plan (Medicare PDP) business to a auxiliary of CVS Caremark (NYSE:CVS – News) for we estimate $160 million in cash.
Health Net expects to comprehend we estimate $140 million in net money deduction from the transaction, after the effect of freed-up capital, taxes and transaction- and transition-related costs.
The transaction, theme to prevalent shutting conditions and germane regulatory approvals, together with capitulation from the Centers for Medicare & Medicaid Services (CMS), is approaching to tighten in the second quarter of 2012.
Health Net has we estimate 400,000 Medicare PDP members in 49 states and the District of Columbia. Health Net’s annualized income for the Medicare PDP commercial operation is we estimate $490 million.
Health Net will go on to yield medication drug skeleton as part of the Medicare Advantage devise offerings.
“We hold this due contract is in the many appropriate interests of our Medicare PDP members and our stockholders,” pronounced Jay Gellert, boss and arch senior manager military officer of Health Net. “Our Medicare PDP members, who have received certain services from CVS Caremark for 5 years, will right away be dependent with a single of the nation’s largest Medicare PDP sponsors.
“Given our ongoing attribute with CVS Caremark, we are assured that the passing from one to another of members will ensue uniformly with no intrusion in services,” Gellert added.
“In addition, we design to redeploy the deduction from this contract in ways that will good Health Net stockholders,” remarkable Gellert.
About Health Net
Health Net, Inc. is a publicly traded managed caring classification that delivers managed illness caring services through illness skeleton and government-sponsored managed caring plans. Its goal is to benefit people be healthy, secure and comfortable. Health Net provides and administers illness benefits to we estimate 6.0 million people opposite the nation through group, individual, Medicare (including the Medicare medication drug good ordinarily referred to as “Part D”), Medicaid, Department of Defense, together with TRICARE, and Veterans Affairs programs. Health Net’s behavioral illness services subsidiary, Managed Health Network, Inc., provides behavioral health, piece abuse and worker benefit programs to we estimate 5.0 million individuals, together with Health Net’s own illness devise members. Health Net’s subsidiaries also suggest managed illness caring products associated to medication drugs, and suggest managed illness caring product coordination for multi-region employers and executive services for healing groups and self-funded benefits programs.
For more information on Health Net, Inc., please visit Health Net’s website at www.healthnet.com.
Cautionary Statements
Health Net, Inc. and the member may from time to time make created and verbal forward-looking statements inside of the definition of the Private Securities Litigation Reform Act (“PSLRA”) of 1995, together with statements in this and other press releases, in presentations, filings with the Securities and Exchange Commission (“SEC”), reports to stockholders and in meetings with investors and analysts. All statements in this press release, other than statements of chronological information supposing herein, may be deemed to be forward-looking statements and as such are dictated to be lonesome by the protected bay for “forward-looking statements” supposing by PSLRA. These statements are based on management’s analysis, judgment, idea and expectancy usually as of the date hereof, and are theme to changes in resources and a number of risks and uncertainties. Without tying the foregoing, statements together with the difference “believes,” “anticipates,” “plans,” “expects,” “may,” “should,” “could,” “estimate,” “intend,” “feels,” “will,” “projects” and other identical expressions are dictated to brand forward-looking statements. Actual formula could talk about materially from those voiced in, or pragmatic or projected by the forward-looking information and statements due to, between other things, illness caring remodel and other increasing supervision appearance in and law of illness benefits and managed caring operations, together with the idealisation stroke of the Affordable Care Act, which could materially adversely start Health Net’s monetary condition, formula of operations and money flows through, between other things, marked down revenues, brand new taxes, stretched liability, and increasing costs (including medical, administrative, technology or other costs), or require changes to the ways in which Health Net does business; taking flight illness caring costs; one after another delayed mercantile expansion or a serve decrease in the economy; disastrous before duration claims haven developments; trends in healing caring ratios; membership declines; astonishing function patterns or suddenly serious or drawn out illnesses; rate cuts and other risks and uncertainties inspiring Health Net’s Medicare or Medicaid businesses; any liabilities of the Northeast commercial operation that were incurred before to the shutting of the sale as well as those liabilities incurred through the winding-up and running-out duration of the Northeast business; lawsuit costs; regulatory issues with sovereign and state agencies including, though not singular to, the California Department of Managed Health Care, the Centers for Medicare & Medicaid Services, the Office of Civil Rights of the U.S. Department of Health and Human Services and state departments of insurance; operational issues; disaster to effectively manage our third party vendors; noncompliance by Health Net or Health Net’s commercial operation associates with any privacy laws or any confidence crack involving the misappropriation, detriment or other unapproved use or avowal of trusted information; investment portfolio spoil charges; sensitivity in the monetary markets; and ubiquitous commercial operation and marketplace conditions. Additional factors that could means tangible formula to talk about materially from those reflected in the forward-looking statements include, though are not singular to, the risks discussed in the “Risk Factors” territory enclosed inside of Health Net’s many new Annual Report on Form 10-K and successive Quarterly Reports on Form 10-Q filed with the SEC and the risks discussed in Health Net’s other filings with the SEC. Readers are cautioned not to place unjustified faith on these forward-looking statements. Except as may be compulsory by law, Health Net undertakes no requisite to address or publicly refurbish any of the forward-looking statements to simulate events or resources that movement after the date of this release.
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Source: health – Yahoo! News Search Results
LOS ANGELES–(BUSINESS WIRE)– Health Net, Inc. (NYSE:HNT – News) currently voiced that the subsidiary, Health Net Life Insurance Company, has entered in to a definitive agreement to sell the Medicare stand-alone Prescription Drug Plan (Medicare PDP) business to a auxiliary of CVS Caremark (NYSE:CVS – News) for we estimate $160 million in cash.
Health Net expects to comprehend we estimate $140 million in net money deduction from the transaction, after the effect of freed-up capital, taxes and transaction- and transition-related costs.
The transaction, theme to prevalent shutting conditions and germane regulatory approvals, together with capitulation from the Centers for Medicare & Medicaid Services (CMS), is approaching to tighten in the second quarter of 2012.
Health Net has we estimate 400,000 Medicare PDP members in 49 states and the District of Columbia. Health Net’s annualized income for the Medicare PDP commercial operation is we estimate $490 million.
Health Net will go on to yield medication drug skeleton as part of the Medicare Advantage devise offerings.
“We hold this due contract is in the many appropriate interests of our Medicare PDP members and our stockholders,” pronounced Jay Gellert, boss and arch senior manager military officer of Health Net. “Our Medicare PDP members, who have received certain services from CVS Caremark for 5 years, will right away be dependent with a single of the nation’s largest Medicare PDP sponsors.
“Given our ongoing attribute with CVS Caremark, we are assured that the passing from one to another of members will ensue uniformly with no intrusion in services,” Gellert added.
“In addition, we design to redeploy the deduction from this contract in ways that will good Health Net stockholders,” remarkable Gellert.
About Health Net
Health Net, Inc. is a publicly traded managed caring classification that delivers managed illness caring services through illness skeleton and government-sponsored managed caring plans. Its goal is to benefit people be healthy, secure and comfortable. Health Net provides and administers illness benefits to we estimate 6.0 million people opposite the nation through group, individual, Medicare (including the Medicare medication drug good ordinarily referred to as “Part D”), Medicaid, Department of Defense, together with TRICARE, and Veterans Affairs programs. Health Net’s behavioral illness services subsidiary, Managed Health Network, Inc., provides behavioral health, piece abuse and worker benefit programs to we estimate 5.0 million individuals, together with Health Net’s own illness devise members. Health Net’s subsidiaries also suggest managed illness caring products associated to medication drugs, and suggest managed illness caring product coordination for multi-region employers and executive services for healing groups and self-funded benefits programs.
For more information on Health Net, Inc., please visit Health Net’s website at www.healthnet.com.
Cautionary Statements
Health Net, Inc. and the member may from time to time make created and verbal forward-looking statements inside of the definition of the Private Securities Litigation Reform Act (“PSLRA”) of 1995, together with statements in this and other press releases, in presentations, filings with the Securities and Exchange Commission (“SEC”), reports to stockholders and in meetings with investors and analysts. All statements in this press release, other than statements of chronological information supposing herein, may be deemed to be forward-looking statements and as such are dictated to be lonesome by the protected bay for “forward-looking statements” supposing by PSLRA. These statements are based on management’s analysis, judgment, idea and expectancy usually as of the date hereof, and are theme to changes in resources and a number of risks and uncertainties. Without tying the foregoing, statements together with the difference “believes,” “anticipates,” “plans,” “expects,” “may,” “should,” “could,” “estimate,” “intend,” “feels,” “will,” “projects” and other identical expressions are dictated to brand forward-looking statements. Actual formula could talk about materially from those voiced in, or pragmatic or projected by the forward-looking information and statements due to, between other things, illness caring remodel and other increasing supervision appearance in and law of illness benefits and managed caring operations, together with the idealisation stroke of the Affordable Care Act, which could materially adversely start Health Net’s monetary condition, formula of operations and money flows through, between other things, marked down revenues, brand new taxes, stretched liability, and increasing costs (including medical, administrative, technology or other costs), or require changes to the ways in which Health Net does business; taking flight illness caring costs; one after another delayed mercantile expansion or a serve decrease in the economy; disastrous before duration claims haven developments; trends in healing caring ratios; membership declines; astonishing function patterns or suddenly serious or drawn out illnesses; rate cuts and other risks and uncertainties inspiring Health Net’s Medicare or Medicaid businesses; any liabilities of the Northeast commercial operation that were incurred before to the shutting of the sale as well as those liabilities incurred through the winding-up and running-out duration of the Northeast business; lawsuit costs; regulatory issues with sovereign and state agencies including, though not singular to, the California Department of Managed Health Care, the Centers for Medicare & Medicaid Services, the Office of Civil Rights of the U.S. Department of Health and Human Services and state departments of insurance; operational issues; disaster to effectively manage our third party vendors; noncompliance by Health Net or Health Net’s commercial operation associates with any privacy laws or any confidence crack involving the misappropriation, detriment or other unapproved use or avowal of trusted information; investment portfolio spoil charges; sensitivity in the monetary markets; and ubiquitous commercial operation and marketplace conditions. Additional factors that could means tangible formula to talk about materially from those reflected in the forward-looking statements include, though are not singular to, the risks discussed in the “Risk Factors” territory enclosed inside of Health Net’s many new Annual Report on Form 10-K and successive Quarterly Reports on Form 10-Q filed with the SEC and the risks discussed in Health Net’s other filings with the SEC. Readers are cautioned not to place unjustified faith on these forward-looking statements. Except as may be compulsory by law, Health Net undertakes no requisite to address or publicly refurbish any of the forward-looking statements to simulate events or resources that movement after the date of this release.
Source: health – Yahoo! News Search Results