Health Net California

by John Hansen

Health Net has issued off cycle second quarter rate changes that will impact Covered California Small Business renewals and new business with effective dates of May 1, 2017 and June 1, 2017.

However, as a result of this delay, April rates will not be affected. 

Covered California is calling on their agents to make sure clients are aware of these new rates when selecting plan offerings for their business, either during their renewal process or when quoting new business for these effective dates. If you have any questions, please call 1-877-752-4737 and select the option 5 for our small business department.

by John Hansen

Health Net medical insurance coverage includes both HMO and PPO products. According to the Health Net Health Plan, their HMO plans are more popular in Southern California, while their PPO products are more popular in Northern California.

For HMO, the Health Net Health Plan (now owned by Centene since the recent merger) offers a full network as well as skinny network products. In Southern California, consumers often choose the skinny networks, which offer lower premiums.

In Northern California, Health Net medical insurance coverage includes the broadest networks. According to Health Net reps, their networks in the northern areas of California are comparable to Anthem Blue Cross and Blue Shield of California.

Prices tend to be based on network, with the skinniest networks offering the cheapest plans. The Health Net Insurance Company offers their most robust networks off exchange. So Health Net Covered California Plans will tend to have smaller networks.

Health Net reps argue...

by John Hansen

The Centene-Health Net Merger is the first of three major health care mergers in California to occur this year. The Aetna-Humana and Anthem-Cigna mergers are still facing regulatory review.

Centene purchased the Health Net Insurance Company and stock shares were divided. According to Fierce Health Payer, “Health Net shareholders received 0.622 shares of Centene common stock and $28.25 in cash for each share at closing, making the total transaction value about $6 billion, including the assumption of debt, according to the announcement.” Also, Health Net Insurance Plan’s CEO (Jay Gellert) and CFO (James Woys) remained on as advisers to Centene’s CEO, Michael Neidorf.

Dave Jones, California Commissioner from the Department of Insurance, in a speech on May 17, assured Californians that he was keeping a close eye on these mergers.

Jones was concerned because the research suggests that mergers, like that of Centene and the Health Net Insurance Company, usually do not en...