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UnitedHealthcare Acquires Health Net’s Northeast Licenses, Rights To Renew Membership

There will be no interruption to coverage or payments during transition period

UnitedHealthcare, a part of UnitedHealth Group, has completed the previously announced acquisition of Health Net of the Northeast’s licensed subsidiaries and has obtained rights to renew Health Net’s membership in Connecticut, New York and New Jersey. The transaction has received all regulatory approvals required for completion.

As Health Net’s commercial customers in the Northeast reach renewal dates, UnitedHealthcare will work to enroll them in a comparable Oxford or UnitedHealthcare plan. Until members are enrolled in a replacement plan, their current Health Net benefits remain in effect under their existing Health Net contracts. There will be no interruption to coverage or payments during this transition period.

Health Net will continue to administer all of the Health Net plans such as commercial, Medicare and Medicaid in the Northeast under administrative services agreements with UnitedHealthcare until members transition to UnitedHealthcare plans.

For Health Net’s Medicare Advantage members in Connecticut and its prescription drug plan members in New York, there will be no changes to the 2010 plans. UnitedHealthcare expects to file 2011 Medicare plan benefits with the Centers for Medicare and Medicaid Services (CMS) during 2010 that will be made public after receiving CMS approval, beginning October 1, 2010. Subject to approval by CMS, UnitedHealthcare will begin operating these Medicare plans on January 1, 2011.

Approval has also been requested from the New Jersey Department of Human Services to transition Health Net’s New Jersey Medicaid business. Upon receiving approval, Medicaid members currently enrolled in Health Net of New Jersey’s Healthy Options plan will be transitioned to UnitedHealthcare’s AmeriChoice plan, unless they choose another participating health care plan. For Health Net’s Medicaid members in New Jersey, there are no expected changes until the middle of 2010.

Jeff Alter, CEO of Northeast Region at UnitedHealthcare, said: “UnitedHealthcare has a long, successful history of providing people in the Northeast with affordable, quality health care options, and we look forward to serving the health and well-being needs of Health Net’s Northeast members as they renew with UnitedHealthcare.

With UnitedHealthcare, Health Net’s members in the Northeast will gain access to one of the largest local and national care provider networks, robust clinical programs, proactive care management and wellness tools, and technology that simplifies and enhances the health care experience.”

Paul Lambdin, president of Health Net of the Northeast, said: “We believe UnitedHealthcare is the best option for our customers in the Northeast. We look forward to working with UnitedHealthcare on a seamless renewal process that we believe our customers will appreciate. We will continue to maintain the high quality of service our customers have come to expect from us.”