BUSINESS BOOMING FOR HEALTH NET MILITARY CALL-UPS AID INSURER.Byline: Evan Pondel Staff Writer WOODLAND HILLS - The prospect of war in Iraq has boosted membership at Health Net Inc. sevenfold sevenfold Adjective 1. having seven times as many or as much 2. composed of seven parts Adverb by seven times as many or as much Adj. 1. since January as more military reservists are called to active duty. The health insurer An individual or company who, through a contractual agreement, undertakes to compensate specified losses, liability, or damages incurred by another individual. An insurer is frequently an insurance company and is also known as an underwriter. is under contract with Tricare, the military's health care system. Lisa Haines, a Health Net spokeswoman, said the military is important business for the company, which attributes roughly 17 percent of its annual revenues to the Department of Defense. ``We're one of the big contractors with the department,'' Haines said. ``And we've had a partnership with the military since the late 1980s.'' That does not mean the company provides coverage for Marines on the front line. Health Net covers those GIs who are in need of access to domestic health care when they are not on a military base or engaged in war abroad. Tricare takes care of other health care needs, with 75 military hospitals and medical centers, and 461 medical clinics worldwide. The health system accounted for about 8.7 million beneficiaries in 2002, serving nearly 8 million active military members prior to September 2001. Tricare players include Sierra Health Systems, a health maintenance organization based in Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. . Tricare's policies cover reservists in the Northeast. Humana, a managed-care group based in Louisville, Ky., and Aetna Incorporated of Hartford, Conn., are also under Tricare's umbrella, said Clifford Hewitt, analyst with Legg Mason Founded in 1899, Legg Mason, Inc. (NYSE: LM) is a leading Global Asset Management Firm that serves the institutional, mutual fund and wealth management markets. The firm is headquartered in Baltimore, Maryland, and is located on Lombard and Charles Streets in the Legg Mason in Maryland Maryland (mâr`ələnd), one of the Middle Atlantic states of the United States. It is bounded by Delaware and the Atlantic Ocean (E), the District of Columbia (S), Virginia and West Virginia (S, W), and Pennsylvania (N). . ``Compared with these other companies, Health Net is highly regarded by the military in the Northwest,'' Hewitt said. Health Net's reputation is particularly important right now as the Woodland Hills company bids for a new military contract possibly valued at $1.5 billion. The bid has surfaced as Tricare plans on consolidating its relationships with health insurers by awarding three contracts instead of seven by this summer. The contracts will cover three different geographic regions including the North, South and East. Health Net has bid for a contract in all three regions. Hewitt agreed that winning a contract in one of these regions would be a boon Boon A general term that refers to a benefit or improvement for investors. This can include such things as increased dividends, a stock market rally and stock buybacks. Notes: for Health Net. ``But it's not completely necessary for the company. Tricare contributes about $40 million to $50 million in Health Net's overall annual earnings. And Health Net is easily able to make up that difference without Tricare,'' he said. ``They are doing rather well right now.'' In the company's most recent quarter, Health Net reported net income of $45 million, or 36 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , compared with $56 million, or 45 cents per share, a year ago. However, excluding charges, the company earned 60 cents per share, matching estimates from analysts polled by Thomson First Call. Haines said the company is hopeful it will be able to sign another contract with the military. The relationship has been a stable source of income for the company at a time when soaring soaring: see flight; glider. soaring or gliding Sport of flying a glider or sailplane. The craft is towed behind a powered airplane to an altitude of about 2,000 ft (600 m) and then released. health care costs dominate the industry. ``And we do have a lot of experience,'' she said. But that experience has not been free of impediments IMPEDIMENTS, contracts. Legal objections to the making of a contract. Impediments which relate to the person are those of minority, want of reason, coverture, and the like; they are sometimes called disabilities. Vide Incapacity. 2. . Hewitt said despite the military's lucrative contracts, Tricare did not always pay on time in the past. ``I'm pretty sure things have improved by now, though,'' Hewitt said. Health Net rose 12 cents to close at $25.07 Friday on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. . |
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