UnitedHealthcare To Purchase Health Net’s Northeast Licenses, Rights To Renew Membership

To acquire licensed subsidiaries of Health Net of the Northeast, and to renew the customers currently enrolled in those plans with UnitedHealthcare

UnitedHealthcare has accepted to acquire licensed subsidiaries of Health Net of the Northeast and to renew the customers currently enrolled in those plans with UnitedHealthcare, as those customers reach their annual renewal dates.

UnitedHealthcare would acquire Health Net’s Northeast insurance and HMO entities in Connecticut, New York and New Jersey, which have approximately $450 million in tangible net equity. UnitedHealthcare will also acquire membership renewal rights for the Health Net Life health care business in the Northeast. The transaction is expected to be modestly accretive to both Health Net and UnitedHealth Group’s net earnings per share.

Jay Gellert, president and CEO of Health Net, said: “A primary goal of our strategic review was to realise the value in our Northeast health plans. This transaction will achieve this goal. We now can focus our resources on our health plans in the West.”

UnitedHealthcare provides health benefit plans and services to individuals, public sector employers and businesses.