Health Net Releases Strong Earnings

Buoyed by growth in commercial and Medicaid enrollment as part of the Affordable Care Act, Woodland Hills-based Health Net posted strong numbers for the second quarter ending June 30.

Health Net reported net income for the quarter of $121 million, more than triple the $33.5 million reported for the second quarter of 2013. Revenues grew by nearly 25%, to $3.4 billion, compared to $2.7 billion, from a year ago. Total enrollment grew by 432,000, to 2.9 million, up 17.4% from the second quarter of last year. That included a 178% increase in individual enrollees in California, which grew from 98,000 to 272,000. Medicaid enrollees grew by 25.6%, to 1.4 million.

“Our focused and deliberate strategic approaches to the new opportunities in the exchanges and Medicaid expansion are driving substantial enrollment and revenue growth and higher income,” said Jay Gellert, Health Net’s chief executive officer. Gellert said additional growth was forecast for the remainder of the year.