Health Net
Parent Centene | | |
Website | www |
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Health Net, LLC, a subsidiary of
In 2016, Centene acquired Health Net for $6.8 billion.[3][4]
History
Health Net was established as the nonprofit Health Net of California in 1977 by Blue Cross.[5] In 1992, a California order permitted the company to convert from a nonprofit to a for-profit company.[6] Under the terms of the California Department of Corporations' conversion order, the California Wellness Foundation, the successor charity to its nonprofit status, received $300 million plus 80 percent of the equity of Health Net's parent holding company.[6]
In August 1993, Health Net merged with Qualmed to form Health Systems International.[7][8] In April 1997, Health Systems International merged with Foundation Health Corporation to form Foundation Health Systems.[9] Also in 1997, Foundation Health Systems acquired PACC Health Plans and Physicians Health Services.[9][10]
In November 2000, Foundation Health Systems changed its name to Health Net, Inc. when the company started trading on the New York Stock Exchange under the symbol HNT.[11]
In July 2009, UnitedHealth Group bought Health Net's northeastern licensed subsidiaries for $510 million, and its Medicare and Medicaid businesses for $60 million.[12] In November 2009, Connecticut's attorney general office investigated a lost, unencrypted hard drive with customer data.[13] Health Net offered two years of free credit protection from a company called Debix to affected customers.[13]
In November 2010, the
Mergers and Acquisitions
On July 2, 2015, Centene Corporation announced it would acquire Health Net for $6.8 billion.[3] The acquisition was completed in March 2016 and combined headquarters were established in St. Louis, Missouri.[3][4] The acquisition resulted in Health Net Federal Services (HNFS) becoming a separate subsidiary of Centene.[18][19]
In 2018, Health Net in Arizona was merged into other Centene holdings to form Arizona Complete Health, and Martha Smith was named as its Plan President and CEO.[20][21] Separately, in September 2019, Brian Ternan was appointed CEO of Health Net in California, leading operations in that state.[22]
Legal cases
In 2007, a California patient sued Health Net claiming that the company wrongfully terminated her care during chemotherapy treatments.[23] During the case, a company employee performance review revealed that a manager had tied bonuses for an analyst in charge of rescission reviews to the rate of enrollees whose coverage was discontinued.[23] Health Net claimed that the patient withheld health information, including a heart problem, that would have disqualified her from coverage.[23] She replied that the insurance broker had filled out the form for her.[23] In February 2008, the court ruled in Bates' favor and ordered Health Net to over $9 million in damages.[24]
In 2008, Health Net agreed to pay $215M to settle allegations that it had unfairly reimbursed out-of-network providers between 1995 and 2007.[25]
In September 2012, the Los Angeles County Medical Association and two patients sued Health Net for denying medically necessary treatment, including cancer care.[26] The lawsuit alleged that Health Net denied claims based on its own definition of "medical necessity" rather than standards set forth by California law.[26] A judge ruled in Health Net's favor in July 2013.[27]
In 2016, Health Net Federal Services became a wholly-owned subsidiary of Centene, ending its time as a publicly traded company.[28] In 2021, Health Net's former subsidiary, Health Net Federal Services, agreed to pay $97M to settle allegations that it had duplicated or inflated claims submitted to the Department of Veterans Affairs between 2013 and 2019.[29]
See also
- Top 100 US Federal Contractors
References
- ISSN 0099-9660. Retrieved 2021-09-20.
- ^ Japsen, Bruce. "Centene's $6.3B Health Net Deal Shows Medicaid Plans Quick To Diversify". Forbes. Retrieved 2022-07-13.
- ^ a b c Bray, Chad (July 2, 2015). "Centene to Acquire Its Managed Care Rival Health Net for $6.8 Billion". The New York Times. Retrieved November 18, 2020.
- ^ a b Liss, Samantha (March 24, 2016). "Centene completes Health Net deal". St. Louis Post-Dispatch. Retrieved 2020-11-18.
- ^ Stassel, Stephanie (28 September 1991). "Paul Wilson; Sunkist Executive, Founding Chairman of Health Net". Los Angeles Times. Retrieved 2020-11-18.
- ^ a b Peltz, James F. (February 8, 1992). "Health Net Wins For-Profit Status : * Medicine: The state lets the Woodland Hills-based HMO convert from a nonprofit organization after it agrees to cede majority ownership to a foundation". Los Angeles Times. Retrieved December 10, 2017.
- ^ Lee, Don (31 August 1993). "Rivals Health Net, QualMed Agree to Merge : Health care: The strategic alliance would give the two HMOs a combined 1.2 million customers in six Western states". Los Angeles Times. Retrieved 2020-11-18.
- ISSN 0362-4331. Retrieved 2020-11-18.
- ^ ISSN 0099-9660. Retrieved 2020-11-18.
- Portland Business Journal.
- ^ "Foundation Health Systems Now Known as Health Net". Los Angeles Times. 21 November 2000. Retrieved 10 December 2017.
- ^ Bordonaro, Greg (4 December 2009). "State approves UnitedHealthcare, Health Net Merger". Hartford Business Journal. Archived from the original on 2013-02-16. Retrieved 2013-02-01.
- ^ a b Mearian, Lucas (2009-11-19). "Health Net says 1.5M medical records lost in data breach". Computerworld. Retrieved 2020-11-18.
- ^ a b "Update 1-Health Net says CMS lifts sanctions on Medicare programs". Reuters. 2011-08-02. Retrieved 2021-09-20.
- ^ "Health Net (HNT) Announces Plans to sell Stand-Alone Prescription Plan Business to CVS Caremark (CVS) for ~$160M". 9 January 2012. Archived from the original on 2019-07-23. Retrieved 2020-01-11.
- ^ Crowe, Deborah (9 January 2012). "Health Net Sells Medicare Drug Plan for $160 Million". Los Angeles Business Journal. Retrieved 2020-11-18.
- ^ "Health Net sells Medicare drug plan business to CVS Caremark for $160M". Healthcare Finance News. 10 January 2012. Retrieved 2020-11-18.
- ^ Robertson, Kathy (10 November 2016). "Exclusive: Health Net gets new $17.7 billion military health care contract". www.bizjournals.com. Retrieved 2021-09-20.
- ^ Sauter, Michael; Stebbins, Samuel. "These 30 companies, including Boeing, get the most money from the federal government". USA Today. Retrieved 2021-09-20.
- ^ "Health Net name disappearing in Arizona". Phoenix Business Journal. Retrieved 2019-06-21.
- ^ "Investments in telehealth solutions in Arizona address the need for members to continue essential care". www.bizjournals.com. Retrieved 2022-07-13.
- ^ Russell, John (30 January 2020). "Anthem sues senior executive who took job with competitor, demands return of $4M". Indianapolis Business Journal. Retrieved 2020-11-18.
- ^ a b c d Girion, Lisa (November 9, 2007). "Health Insurer Tied Bonuses to Dropping Sick Policyholders". Los Angeles Times. Retrieved September 13, 2013.
- ^ "Canceled Cancer Patient Awarded $9 Million". www.cbsnews.com. February 22, 2008. Retrieved 2021-09-20.
- ^ "Health Net inks $215M settlement on payment allegations". Fierce Healthcare. July 25, 2008. Retrieved February 23, 2022.
- ^ a b "Health Net faces suit over refusals to cover treatments". Los Angeles Times. September 13, 2012. Retrieved September 20, 2021.
- ^ "Health Net's 'Medical Necessity' Definition OK'd By Judge - Law360". www.law360.com. Retrieved September 20, 2021.
- ^ "CA insurer Health Net pays $97M to settle VA billing probe". Sacramento Bee.
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value (help) - ^ "Health Net Federal Services Pays over $97M for Overstated Billings to the VA". www.justice.gov. April 6, 2021. Retrieved February 23, 2022.