Health Net Drops Plan In Nine Counties

"We can participate in Medicare+Choice only in counties where reimbursement rates cover the costs of care and allow us to provide beneficiaries with a sufficient network of doctors and hospitals — and where these doctors and hospitals want to participate in the program."

On average, Health Net's health-care costs for seniors are increasing by more than 10% this year, while the increase in government reimbursements is less than 3.2% for 2002. As a result, Health Net today also announced that it will reduce pharmacy and other benefits and increase supplemental premiums and co-payments in 2002 in the counties where it continues to offer Medicare+Choice products, the company says.

Health Net Inc. submitted its plans on Sept. 17 to the Centers for Medicare and Medicaid Services. Health Net is contacting affected Medicare beneficiaries, physicians and employer groups, notifying them of service area changes and providing them with information on other Medicare options, the company says.

Once the company receives approval from CMS, Health Net will notify its Medicare+Choice enrollees of 2002 benefit and premium changes. Notification will occur on or before Oct. 15.

Health Net says it will work with affected beneficiaries, physicians and hospitals to ensure a smooth transition to another Medicare+Choice plan or back to traditional Medicare.

Health Net will continue to offer Medicare supplement products to eligible beneficiaries statewide in California.