State of California Awards Prison Health Contract to Health Net Federal Services

SACRAMENTO, Calif.--(BUSINESS WIRE)--

Health Net Federal Services, LLC (Health Net), a subsidiary of Health Net, Inc., today announced that it has entered into a contract with California Department of Corrections and Rehabilitation (CDCR) to continue providing CDCR a network of community-based specialty health care providers.

Health Net also will provide, per the terms of the contract, third-party administration of health care claims and development of, and ongoing support for, an electronic prior-authorization program for CDCR.

“Health Net has partnered with the state and CDCR since 2010 to provide cost-efficient access to quality health care services for the state's 35 prison institutions and two youth facilities,” said Tom Carrato, president of Health Net Federal Services. “We're pleased for the opportunity to work with CDCR to integrate claims processing services and a prior-authorization program that are intended to enhance the timely delivery and effective management of medically necessary health care services, as well as provide appropriate financial stewardship.”

The contract is effective as of October 1, 2014, and will continue for an initial term of five years, with five one-year extensions at CDCR's option.

About Health Net Federal Services

Health Net Federal Services has a long history of providing cost-effective, quality managed health care programs for government agencies, including the Departments of Defense and Veterans Affairs. As the managed care support contractor for the TRICARE North Region, Health Net provides health care services to approximately 2.8 million uniformed services beneficiaries, active and retired, and their families. In addition, Health Net provides high quality, cost-effective health care solutions for veterans, as well as behavioral health services for active duty service members, veterans and their families.

Additionally, Health Net Federal Services administers the Department of Veterans Affairs' Patient Centered Community Care (PC3) program in three of six regions across the United States (regions 1, 2 and 4), which includes all or portions of 37 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. The PC3 program provides eligible veterans access to health care through a comprehensive network of community-based, non-VA medical professionals who meet VA quality standards when VA supplements care outside its own facilities. In 2014, VA extended its PC3 contract with Health Net to include primary care services for veterans who are unable to obtain primary care at a VA medical center in the three PC3 regions in which Health Net operates. The expanded PC3 contract now adds primary care services to Health Net's existing specialty care and behavioral health services.

About Health Net

Health Net, Inc. HNT is a publicly traded managed care organization that delivers managed health care services through health plans and government-sponsored managed care plans. Its mission is to help people be healthy, secure and comfortable. Health Net provides and administers health benefits to approximately 5.9 million individuals across the country through group, individual, Medicare (including the Medicare prescription drug benefit commonly referred to as “Part D”), Medicaid, U.S. Department of Defense, including TRICARE, and Veterans Affairs programs. Health Net also offers behavioral health, substance abuse and employee assistance programs, managed health care products related to prescription drugs, 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 Health Net's website at www.healthnet.com.

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