Important Health Net News

Health Net, Inc. has signed a definitive agreement to sell its Northeast subsidiaries and membership renewal rights to UnitedHealthcare. They expect the transaction to close in up to 12 months, subject to regulatory and other approvals. Generally, Health Net customers will transition to UnitedHealthcare as they renew their benefit contracts. The transition of membership to UnitedHealthcare will continue for approximately 12 to 24 months after closing.

The transaction includes their commercial membership in Connecticut, New York and New Jersey, Medicare membership (Connecticut only) and Medicaid membership (New Jersey only). Health Net’s Medicare Prescription Drug Plan (PDP) membership is not included with the exception of PDP membership in the state of New York.

Upon closing the transaction, UnitedHealthcare and Health Net of the Northeast will enter into an administrative services arrangement where Health Net of the Northeast will continue to manage the business in the Health Net subsidiaries on behalf of UnitedHealthcare while members transition to UnitedHealthcare plans. The employees and management team that have been providing services will continue to do so during this period. Health Net is working to ensure that all members, customers and business partners experience a seamless transition of services.

We will continue to communicate with you as more details become available. You can read more on Health Net's website www.healthnet.com or click this press release. Should you have any questions please contact your Stratford Representative or call 866-217-9053.

Sincerely,
Daniel Ritter, CEO