Health Net, Inc. Promotes Steve Nelson to President of Health Net of t

    Business Editors/Health/Medical Writers

    LOS ANGELES--(BUSINESS WIRE)--Jan. 12, 2005--Health Net, Inc. (NYSE:HNT) today announced the appointment of Steven Hale Nelson as president of Health Net of the Northeast -- among the largest health plans in the New York metropolitan area.
    Nelson assumes this role from Jeff Folick who has served as interim president of the Northeast since February 2004 and is executive vice president of Regional Health Plans and Specialty Companies. Last June, Nelson was appointed chief operating officer of Health Net of the Northeast, following his tenure as senior vice president, Senior Products Division, of the company's Medicare division. Nelson will continue to report to Folick.
    "Both Jeff and Steve have been key contributors to improving the performance of the company while building a strong foundation on which the Northeast can realize lasting value," said Jay Gellert, president and chief executive officer, Health Net, Inc. "Steve was the leading force in creating our national Senior Products Division. His results-driven approach attracts and empowers the kind of team players we need in leadership roles. In addition, Steve embodies the commitment to this company's long-term success and to delivering results that will get us there," Gellert added.
    "The opportunity to lead this company comes at a time when Health Net of the Northeast is positioned to re-establish itself as a leading regional health plan," added Nelson. "Currently, there is a need in the tri-state region for a strong local insurer. With competitive products, outstanding customer service and dedicated associates, Health Net of the Northeast is committed to making a difference in the lives of the people and the communities where we live and serve."
    Nelson's health care career encompasses 15 years of executive and management-level service. Before joining Health Net in 2003, he was chief operating officer and vice president of Network Management of United Health Care's Arizona market. Prior to that, Mr. Nelson spent 10 years with the Henry Ford Health System. During his time with the Ford System, he held executive positions in its 900-bed tertiary teaching hospital, the corporate office, the 1,000-physician multi-specialty academic group practice, and HAP - the system's 600,000 member health plan.
    Nelson received his Bachelor of Arts degree in biology from Portland State University and two master's degrees -- in health services administration and in business administration -- from the University of Michigan in Ann Arbor.

    Certain matters discussed in this release 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 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, 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, rising health care costs, trends in medical care ratios, operational issues, health care reform and general business 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 filed with the SEC and the risks discussed in the company's other periodic 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 these forward-looking statements to reflect events or circumstances that arise after the date of this release.

    Health Net, Inc. is among the nation's largest publicly traded managed health care companies. Its mission is to help people be healthy, secure and comfortable. The company's HMO, POS, insured PPO and government contracts subsidiaries provide health benefits to approximately 7.3 million individuals in 27 states and the District of Columbia through group, individual, Medicare, Medicaid and TRICARE programs. Health Net's subsidiaries also offer managed health care products related to behavioral health and prescription drugs, and offer managed health care product coordination for multi-region employers and administrative services for medical groups and self-funded benefits programs.
    For more information on Health Net, Inc., please visit the company's Web site at www.healthnet.com.

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CONTACT: Health Net, Inc. David Olson (Investor), 818-676-6978 david.w.olson@healthnet.com or Marian Cutler (Media), 973-517-0519 marian.cutler@healthnet.com

KEYWORD: CALIFORNIA INDUSTRY KEYWORD: INSURANCE PHARMACEUTICAL MEDICAL MANAGEMENT CHANGES SOURCE: Health Net, Inc.

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