Health Net Connections Print Magazine #1


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Health Net internal print magazine created by writer, editor, art director Linda Hubbard Lalande as part of an internal brand campaign that integrated print, intranet, email and HR materials. Feature writing, profiles, strategies and goals, accomplishments, editorial perspectives guided employees and gave context to company news. Design: Moller Creative

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Health Net Connections Print Magazine #1

  1. 1. Quarterly Magazine for Health Net Associates • Summer 2006Introducingthe premiere issue of Health Net’s new quarterly associate magazineInside:MHN Brings Cover Story:Comfortto Military Families NavigatingWe Live MedicareHere, TooHealth Net inthe CommunityGrowingCommercialBusinessThe AdvertisingBlitz is On
  2. 2. Inside this issue: Published by: Health Net, Inc. STORIES FROM THE TRENCHES Corporate Communications MHN behavioral health unit supports members 21650 Oxnard Street of the military, giving them a soft place to land. Mail Code CA-102-22-07 page 2 Woodland Hills, CA 91367 We welcome your ideas and We Live Here,Too feedback. Contact Linda Lalande Making a name in the neighborhood through local or Margaret Longo at: sponsorships – first up: HNCA’s Kick It With Health Net. page 5 For internal distribution only Health Net, Inc. is among the Cover Story: Navigating Medicare nation’s largest publicly traded Guiding consumers through the changing tides managed health care companies. with simplicity. Its mission is to help people be page 6 healthy, secure and comfortable. For more information, go to The Blitz Is On! Certain matters discussed in this publication contain forward-looking statements within the meaning HNNE and HNCA are on the advertising circuit of Section 21E of the Securities Exchange Act of 1934, to drive commercial growth. as amended, and Section 27A of the Securities Act of 1933, as amended, that involve a number of risks and page 10 uncertainties. All statements, other than statements of historical information provided herein, may be deemed to be forward-looking statements. Readers are cautioned What’s the Magic to Saving? not to place undue reliance on these forward-looking statements. The company undertakes no obligation to 401(k) Savings Plan does the trick. publicly revise these forward-looking statements to reflect events or circumstances that arise after page 13 the date of this publication.Images of the Themes that Unite UsLook for these newly created icons to identify Health Net’s three important themes. The iconswill be used in communications about what is going on in the company and how we are succeeding. PERFORMANCE GROWTH GREAT PLACE TO WORK Progress and achievements that Efforts to expand and increase Examples of a high-performance support Health Net’s business the quality of Health Net’s environment that supports strategy and financial goals. business. associates and serves customers well.
  3. 3. GREAT PLACE TO WORK We Invite You to Be PartMaking of CONNECTIONSCONNECTIONS for You by David Olson, SVP, Corporate A message from the Communications Executive Operating Team: (L to R) Steve Nelson, president, HNNE; Jim Woys, president, Government & Specialty elcome to the premiere issue ofW Connections – Health Net’s new all-associate news magazine. Designed for you, Services (EOT chairman); Buddy Piszel, CFO, Health Net, Inc. and Stephen Lynch,it will provide analysis and perspective on president, Western Regionalthe many aspects of Health Net’s businesses– Health Plans.and the important roles you play. Eachquarter, Connections will feature a varietyof Health Net stories from across the country–stories to broaden your understanding of H ealth Net’s business is helping people with one of the most important aspects of their lives – their health. Our customers look to us to help them navigate the best, mostwhat we do, how we do it and who is appropriate paths to get the health care they need. It’s notmaking it happen. an easy task, but it needs to be a purposeful one. And we Connections will supplement our Intranet, believe that by sharing our experiences, our insights andHN Connect, by providing an additional our accomplishments, we all can do for the exciting things we’re doing Therefore, we are pleased to see the launch of Connectionsat both the local and national level. HN and the broad communications venue it provides. For just asConnect will continue to be the place to we on the Executive Operating Team (EOT) are charged withcatch current news and updates to ongoing providing review and oversight for Health Net’s “greater good,”developments. Together, these communications we see Connections extending that effort by increasing ourwill provide a more complete picture of the collective understanding to support growth and enhanceentire enterprise. We especially want to performance across the enterprise.showcase how you are making our businesses From immunizations to intensive care, from HMOs to PPOs,successful – by increasing our capabilities, from newborns to Medicare-eligibles, from phone calls to claimsestablishing best practices and building processing, from complex contracts to federal, state and locala culture of performance. compliance standards – helping people to be healthy, secure As with HN Connect, we intend this and comfortable requires knowledge and know-how.publication to be a partnership: we’ll be That’s why understanding and appreciating the manyasking you what you’ve learned from it jobs we all do – and how we do them – is vital. Building thatand what you’d like to see in future issues. understanding is what Connections is all about.With your participation, we look forward to Thanks in advance for your readership and your willingnessmaking the connections you need to create to forge a more complete and informed connection with Healththe kind of place – a great place – for us to Net’s businesses. We believe that your increased understandingwork and serve our customers. will benefit our customers and make us a better company. summer 2006 connections 1
  4. 4. PERFORMANCE STORIES FROM THe TRENCHES Health Net’s behavioral health unit, MHN (Managed Health Network), supports members of the Army, Marines, Navy and Air Force, as well as Guard and Reserve personnel and their families. MHN’s Military Support Programs Address Unique Stressors or some military personnel and their families, City, who also spends time “F emotional wounds can be as harmful as physical ones,” says Stu Murphy, VP, Account Management & as a counselor on the military bases. “We help service people Sales, for Health Net’s Managed Health Network to unburden, to share their combat Government Services (MHNGS), New York City, N.Y. experiences in a way that helps them To address the emotional needs of people in the military, get to a more positive place about MHN launched an intervention initiative in May 2004. these events, realizing they’re not alone “As we’ve proven our effectiveness, the demand for our with their experience. We give them tools services is increasing rapidly. We’ve touched over 100,000 and resources to help them manage the lives of service personnel and their families, in the U.S. impact on their lives and the lives of their families. and abroad, since we began,” he notes. “Because it now Parenting skills become vital, as children begin to touches service personnel and their families across the act out, don’t relate to returning parents and add four service branches, we refer to the initiative as tremendous strain to an already isolated spouse.” Military and Family Life Consulting (MFLC), the same According to Jerry Coil, president, MHN, Point acronym we use for the consultants themselves.” Richmond, “We send out consultants on a rotational MFLC assists in the military’s readiness efforts to help basis, from one to three months. So at any given the families and the war fighters be ready to do their time we have about 100 consultants in the field. jobs. The consultants provide counseling and support to We have over 50 in Europe right now.” Jerry augment the many programs and services the military and Ian travel to the bases across Europe and already has in place. “It’s not about therapy – it’s about the U.S. periodically to oversee the programs. skills,” explains Dr. Ian Shaffer, chief medical officer, “We are in many European countries and MHN, Pt. Richmond, Calif. “Through MFLC, we provide the Pacific Rim,” Jerry notes. Consultants a wealth of communication skill-building to help create also visit small units of NATO personnel realistic expectations and give military and family scattered all over Europe including Norway, members the tools to help reestablish their relationships,” Great Britain, the Netherlands, Belgium, he explains. Luxembourg, Germany, Portugal, Spain and “Isolation is common for both those left behind and Italy. “It’s a very meaningful effort that we those coming and going from active duty,” says Ronnie are proud to be a part of.” Weiner, director, Clinical Programs, MHNGS, New York2 connections summer 2006
  5. 5. MHN brings comfort to service families“When things get hard, we’re a soft spot to land on.” – MHN Military and Family Life ConsultantIN an elementary school classroom in Western Europe, several children ask an MHN Military andFamily Life Consultant (MFLC) if they can talk about “Mike” military personnel and their families on and around the bases in locations like libraries, bowling alleys or even long lines. Local restaurants are a favorite spot.”whose father was killed “down range” in active combat. “It can happen anytime, anywhere,” explains a consultant.After the MFLC asks who wants to start the discussion, “There are countless opportunities to be of service.”one child blurts out, “I don’t want to talk about this After introducing the program, consultants may informallybecause...” A torrent of words pours forth, and suddenly chat with someone, schedule a follow-up consultation,the other children join in, expressing fear, worry and or refer someone to a range of resources.loss of control. Some begin to cry. As the class drawsto an end, the MFLC says, “You may notice that I Someone to talk to As they listen to stories that pour in fromhaven’t said very much. What you say as a kid can the “trenches,” MFLCs often become thebe much more important than what I as an adult starting point for subtle and not somay have to say.” The kids sit silently, but now they subtle transformations. One consultantare smiling and rubbing their tear-streaked faces. remembers meeting a young soldierBeing of service two months into a new This MFLC is part of a team of more than 100 assignment. The soldiertemporarily assigned to military installations stateside had recently returnedand overseas by Health Net’s behavioral health unit, from a dangerous, year-MHN. MHN supports members of the Army, Marines, long deployment. AsNavy and Air Force as well as Guard and Reserve his eyes welled up Did youpersonnel and their families. Consultants make contact during pre- and post- with tears, he told the consultant how know? • 1.4 millideployment training. They sometimes “shadow” units he had “seen some on U.S. military personneduring reintegration to assure continuity of support over stuff over there.” l are on activetime. “For example, there is typically a need to check in (Continued on next page.) the six-month mark to determine if returning military • Just oveare adjusting,” says Terry Fullerton, director, Clinical r half ofServices, MHNGS, Arlington, Va. “MFLCs also approach duty pers active onnel are married. • Approxim ately 73% married se of rvice mem have chil bers dren. • Both sp ouses are members service in about 1 military m 2% of arriages (7 7,000). Photo Credit: Master Sgt. Rob Trubia, U.S. Air Force. summer 2006 connections 3
  6. 6. up close and personal:How MHN M ilitary and family life consultants help rviceman in Germany, a se While stationed oman. When a local young w falls in love with isolated and q, she becomes he leaves for Ira e base for a Photo Credit: Joe Kane, Chief Journalist, U.S. Navy g a visit to th depressed. Durin ary and Family hamburger, she meets a Milit d to and readily and is introduce He also remembered being back from duty and Life Consultant ort group earts Apart” supp embraced by a “H lace. spotting a woman in a bar wearing a belt that resembled welcome so where she finds ammunition. “It wasn’t real, but I couldn’t stop looking at it,” the soldier confided. “All of a sudden, I felt like I was back there. I had to leave the place.” Then he asked The wife the consultant sheepishly, “Is that crazy?” They talked of a soldie deployme r who is fa about the reintegration process and prolonged stress nts is hav cing mult to her hu ing a hard iple sband. “I’m time rela ting response. At the end of their meeting, the soldier said, connecte not ever d to him going to g “You have no idea how good it feels to have someone “It was so again,” sh et painful th e admits to talk to.” e first tim tearfully. Through e he left.” talking ab and Famil out this w Offering comfort and healing y Life Con ith a Milit accept th sultant, sh ary e love AN e finds w From helping children process their feelings to reassuring D the pain ays to of separa a troubled soldier, MFLCs are indeed creating a soft spot tion. for many to fall on – and making a remarkable difference doing so. ds another Article courtesy of MHN’s HN Connect site, May 22, 2006, ing from Iraq fin A soldier return r boyfriend. MHN Marketing & Communications; Pt. Richmond, Calif. ed in with he soldier has mov e has served with Complica ting matters, sh r. Realizing ith the interlope and is friends w career over nt to ruin her she does not wa litary and this, she sit s down with a Mi ultant and comes up Family Life Cons d move on. with a plan to cope an In a f amily share left b their ehind home mom’s , the from bed. W young chil as hen d dr felt o n all s signment, ad com en Consu ides. A the d es Milita isp lta help b nt works w ry and lacement is rid ith th Famil makin ge the ten e y Life g room sion a family on s for ev nd pa kills t ve th eryon e’s ne e way o eds. to Photo Credit: Senior Master Sgt. David H. Lipp, U.S. Air Force.4 connections summer 2006
  7. 7. GREAT PLACE TO WORKWe Live Here,TooImproving Health Isn’t Just About Selling InsuranceSponsorships with a wellness purpose ot just another corporate sponsorship. Not your Kick ItN ordinary arms-length big check. Health Net wantsto make an important difference for society – starting With Health Net fosterswith children, the most vulnerable, and those most ready activities andto embrace life and new ideas. programs to help youth “We don’t want to be one of a crowd of companies – stay fit. Last year, Kick It providedwe want our contribution to be distinct and significant athletic scholarships and soccer equipment to morewhile still supporting Health Net’s business,” says than 15,000 school-age athletes and volunteers in fiveJay Gellert, Health Net, Inc. president and CEO. “We Southern California community soccer leagues. “Aided byalso want our image to reflect our ongoing ‘go local’ associate volunteers, HNCA also sponsored customizedstrategies for meeting customer needs in the skills and drills clinics for the more than 17,000 children,”communities where we work.” says Tiffany. “Participants have a strong, favorable and lasting impression of Health Net.”Our intention is to:• Establish goodwill and demonstrate that we are Kick It With Health Net expanded in 2006 to include 12 part of the communities we serve. leagues, with five in Northern California and seven that span the Los Angeles, San Diego and San Francisco metro• Spread the good word about Health Net and build brand areas. “These locations have a combined population of awareness by putting a human face on the company. more than 12 million and provide access to very culturally• Energize Health Net associates to get involved. diverse markets where we want people to recognize our Health Net, Inc. and its regional plans consistently brand and are likely to see us as a choice when selectingcontribute to national and local charitable organizations health coverage,” says Mark Morgan, chief commercialand activities, encouraging and supporting associates’ officer, HNCA.involvement. Here’s just one example from our California “I’m there to help fight obesity by getting kids active,”team. says Tim Louie, manager, HNCA Marketing, who was oneIn the Neighborhood: of several volunteers at a skills clinic. Another volunteer, Delcia Witty, HNCA wellness coordinator, attendedHNCA’s Kick It With Health Net several events to hand out wellness information and Encouraging people to make better health choices got involved helping the kids with their drills. “Becauserequires many different approaches. Recognizing this, the kids were so excited, I joined in the fun and createdHealth Net of California (HNCA) began a grassroots a contest to see who could win the most Health Netsponsorship program in mid-2005 to help parents and stickers.”children further their own goals for healthy living. “The sponsorship program is about building healthawareness in our communities while strengthening To find out more, go to www.kickitwithhealthnet.comHealth Net’s brand and involving associates,” explainsTiffany Kobashigawa, manager, HNCA Marketing. summer 2006 connections 5
  8. 8. GROWTH Health Net simplifies the way for consumers 84, Health Net member Yolanda At Brach of Queens, N.Y., says, “I don’t take any prescription medicine so I wasn’t overly concerned about choosing a Medicare Part D plan. After talking with family and friends, I realized that whether I needed it or not, choosing a plan was important.” Brach says that, “As a Health Net member, I trusted the company to enroll me in a plan that works for me.” She may not need a prescription drug plan right now – but she feels comfortable that she has the right coverage at the right price if and when she does. Her positive experience as a Health Net member prompted her to recommend Health Net to her friends. Showing customers like Brach why her Medicare decision DOES matter is the way Health Net is carving a niche for itself in the complex and often confusing world of Medicare. This world was altered dramatically when changes authorized by the Medicare Prescription Drug6 connections summer 2006
  9. 9. Total Medicare Total Medicare Geographic GrowthEnrollment Growth Revenue Growth • We currently sell Medicare Advantage (MA) in five states: Arizona, California, Connecticut, Oregon and New York. Health Net sells the stand-alone PDP in 10 states, the five states where we currently sell MA (listed above), plus: Massachusetts, New Jersey, Rhode Island, Vermont and Washington. • Effective in 2007, Health Net is approved to sell the PDP in all 50 states. Q4 2005 to Q1 2006: Q4 2005 to Q1 2006: Enrollment increased Revenue increased 156% – from 174,000 47% – from $391 millionto 445,000 in Medicare to $576 million. Advantage and PDP. “I’ve had my share of medical problems and I am legally blind. I was concerned about the changes in Medicare. IImprovement and Modernization Act of 2003 (MMA) didn’t really understand how it worked. Thankfully, Healthwent into full effect on January 1, 2006, and seniors Net helped me enroll in the Part D for my area. Because offelt the direct impact. my medical issues I have a personal relationship with my pharmacist – he is happy with the plan selected for me, These changes, the most sweeping since the Medicare too – my medications are all covered and that means Iprogram began in 1965, allow private health plans to offer don’t have think about it.”prescription drug coverage (Medicare Part D) directly Theresa Napolitano, Queens, Medicare-eligible beneficiaries–more than 43 million Health Net member for five yearsindividuals. However, unlike Medicare Parts A and B which are Standing on firm groundautomatically provided to eligible seniors by the federal Health Net banked on its long-standing traditiongovernment, seniors can only access government- and deep-seated experience serving seniors to takesponsored Part D benefits by signing up through a aim at the new Part D market. Even before the Part Dqualified plan sponsor like Health Net. enrollment season opened last fall, Health Net wasLargest product launch in company’s history already the nation’s fourth-largest Medicare Advantage Undaunted by the complexity of the MMA legislation contractor with a 6 percent market share based onand spurred by the opportunity to address the needs of approximately 171,000 members in five states.the senior population, Health Net seized the Medicare Health Net’s core markets represent one-third of thePart D opportunity. total Part D opportunity, which is 43 million eligibles. Embracing the double-digit revenue and enrollment Carpe Diem! New markets, new products,growth potential it represented for the company, with new membersrecord speed Health Net hit the market with 98 new With the first open enrollment season behind us,plans during the first open enrollment season. This made Health Net’s Medicare growth is encouraging. Medicareit the single largest product launch in Health Net’s history. Part D membership at the end of the first quarter of The company’s course was clear and direct. “It was 2006 was 255,000. Medicare Advantage membershipparamount for us to distinguish ourselves at the outset, rose by 9 percent, or approximately 16,000 members,so we built Health Net’s Medicare Part D strategy on the to 190,000 at the end of the first quarter of 2006. Thebelief that we could make Medicare simple, and in so largest Medicare Advantage gains occurred in Californiadoing, engender trust,” Sam Srivastava, chief senior and the Northeast.products officer, Medicare, tells us. “Simplicity is the (Continued on next page.)pathway to trust” became our guiding principle. summer 2006 connections 7
  10. 10. Across the nation, the Part D program is doing quite “HNPS’s bench strength gave us the leadership we well, despite some initial bumps in the road. Enrollment needed for the heavy lifting,” notes Linda Brisbane, VP, among all U.S. beneficiaries reached 90 percent as of the Senior Products Division Operations. “This allowed us May 15 deadline – and enrollees are now saving an average to focus on the design and pricing of our new MA and of $1,500 annually on their prescription medications. MAPD products to keep them relevant and affordable “While positioning ourselves was vital to launch our for the older American audience.” Part D effort, delivering was what we had to do,” continues Doing our part: associates bring the message home Sam. “We had to be prepared to support sales in current “Health Net associates are our most important brand markets, stage to enter new markets, design new product ambassadors,” says Gail Watts, VP, Organization offerings, negotiate with providers and rapidly expand Effectiveness. “Medicare Part D offered an unprecedented our infrastructure. These were the logistical ‘Everests’ opportunity to demonstrate that belief.” we had to surmount – and did.” That’s why, as Part D enrollment approached, Health Health Net showcased its abilities with an advance on Net associates were tapped as Medicare navigators not the market that included a “call to action” advertising only at work, but at home too. According to John Sivori, blitz with well-known actor and retired Tennessee president, HNPS, “As sons and daughters, nieces, Senator Fred Thompson, who gave voice to the solutions nephews and grandchildren of members and potential Health Net offered. Creative events proliferated – such as members, associates could take a very personal role in “senior proms” to entertain and educate Medicare-eligibles, communicating the importance of signing up for a as well as a storefront in a popular mall in Tempe, Ariz., Medicare Part D plan.” where seniors could walk in and sign up. To arm them with what they needed to reach out to As the second enrollment season in November gets loved ones, Medicare Marketing prepared training and closer, hopes are high that we will continue to grow communications. “This included a dedicated phone number steadily as we perfect our strategies. We also will be family and friends could call for preferred handling,” says John. expanding to additional geographic markets. “So far, we’ve received more than 350 associate referrals.” Taking expansion in stride “Never before has Health Net launched a product So how did Health Net move so quickly to pull off offering where associates played such a strategic role,” our single largest product launch in company history? Gail explains. “We encourage associates to stay engaged It required drawing on the established expertise in several areas – and the dedicated teamwork of these associates – to make things happen. Notably, to expand so rapidly and keep administrative costs low, Health Net’s Senior Products Division (SPD) built upon the existing Health Net Pharmaceutical Services (HNPS) infrastructure and benefit management capability to launch and support the during this fall’s open enrollment season, and to Medicare Part D continue communicating our message of ‘simplicity’ drug benefit. to family members and friends who are newly eligible.” Where are we now? “Medicare Part D is a great success story,” says Sam. “It didn’t go off without a hitch, but we’ve proven how very good we are at troubleshooting and making things right for the customer. And we’ve kept our promise to keep things simple.”8 connections summer 2006
  11. 11. A look ahead – What’s next for Health Net and Medicare Part D “Our Medicare strategy for 2007 and beyond includes product enhancements and geographic expansion of our markets. We’ll also build on our best practices, including our Medicare retail store piloted in Arizona. A resounding success, the storefront demonstrates our understanding of the customer and a respect for diverse needs,” explains Simplicity Health Net offers consumers the Mike Clark, VP, National Medicare Sales. “Health Net’s right coverage through easy-to-understand and Medicare officers are developing outlets in California, easy-to-use plans in two basic categories: Medicare Oregon, New York and Connecticut.” Advantage with prescription drug coverage and a stand-alone prescription drug plan. A new Fall advertising campaign is in the creative stages, as are new online distribution tools for members and brokers, Broad networks Our vast networks of contracted provider kits, and additional color-coded product collateral. physicians, hospitals, pharmacies and medical professionals provide care that is comprehensive Reality check and accessible. Individuals who enrolled in the sign-up-now-or-pay-more- later rush to beat the first May 15 deadline took advantage of Access to a wide range of commonly the grace period allowed to scrutinize their choices. They prescribed generic and brand-name drugs. had until June 30, 2006, to make a switch. Health Net Plans with no deductibles and coinsurance focused on assisting enrollees during this last-chance phase. For many common services, we have a feature that “We’ve learned important lessons from our first Part D eliminates deductible and coinsurance requirements, experience, all of which will contribute to improvements and Heath Net covers members from their very first claim. that will directly benefit our customers and our business,” Sam concludes. “It’s a very exciting time for us. Our strategy for success going forward is to diversify our Senior Products portfolio and expand geographically to fulfill the needs of all seniors. That’s our next wave.” The look and feel of our 2006 Medicare campaign. “By putting our customers’ needs and expectations first, we will be able to constantly improve products and services in a way that matters – and that is what we plan to do,” says Jim Woys, president, Government and Specialty Services (including Medicare). “Senior Products is a key growth engine of Health Net. The Part D opportunity allows us to fulfill our long-term commitment to offer solutions to seniors that will improve their health and well-being.”Look for past coverage and ongoing communicationsabout Medicare.• On HN Connect: Medicare ad roundup on Jay’s Corner… 5/1/06.• HNAZ’s Medicare storefront on Latest News… 3/17/06• On > Medicare enrollment information for family and friends. summer 2006 connections 9
  12. 12. GROWTH Our Commercial Business: The Ad Blitz Is On! Product innovation and advertising aim to spur Health Net’s commercial growth Sample of HNCAs “Health Nut” billboard campaign. B Focus on California and the network in select counties in Northeast Southern California. XtraValue and etter relationships with Silver Network also are available doctors, pricing that First, “What’s New?” to Mid-Market employers and are fits consumer demand Building on existing product lines, attracting keen attention. and getting a handle on cost California has revamped and expanded Finally, California is doing the trends add up to a healthier bottom many of its products and introduced network expansion, contracting groundbreaking additions to its Salud line for Health Net. Add to the and operations work necessary to con Health Net product aimed at mix improved products and new enhance its PPO offering. By offering the state’s rapidly expanding Latino offerings to enrich our growth a stronger PPO option, we can better population. and we have a winning formula serve our California customers. For example, the Individual & for Health Net’s product, sales The Northeast made waves with Family Plans (IFP) group launched and marketing teams. the launch of an integrated health three new “Simple Value” zero- savings account (HSA) product on Capture the public eye with deductible plans with flexible pharmacy January 1, 2006, with Wells Fargo creative advertising in strategic options that have quickly become serving as its financial partner. best sellers. Small Business Group locations and voila! Our reputation (California also will be bringing Wells (SBG) added four new plans in May grows and our commercial Fargo to its HSA offering in the third to fill gaps in an already robust port- enrollment begins to increase. quarter of 2006.) In New York and folio that includes the XtraValue and This strategy’s proving true this New Jersey, a new suite of more Silver Network options. XtraValue affordable plans for our OutlookSM year for commercial business plans are SBG’s lowest cost, full- product portfolio inspired significant and bodes well for the future. network option, while Silver Network growth in the self-insured market. offers affordability with a smaller10 connections summer 2006
  13. 13. Getting the word out: to make an informed decision about It’s about the customerAdvertising takes off treatment.” Decision PowerSM is one of The following illustrates how Health the tools we offer to assist them with “With Health Net’s new company-Net’s advertising and outreach are advice and the best course of treatment. wide focus on ‘customer intimacy’developing as we continue defining According to Mark, “Small businesses as its value proposition, we’rewhat it means to be a “customer are the backbone of California’s econo- looking to develop and present ourintimate” company. (See side bar.) my. Our 2006 blitz lets people know products – nationally and locally – about our Enhanced Choice for small to better meet our customers’California breaks out of businesses – which includes more needs,” says Kathleen Richard,the quiet mode affordable plans for this market than A common question among California Health Net’s Enterprise officer. any other carrier in California. We areassociates used to be, “Why don’t we Kathleen leads our value proposition seeing encouraging signs that HNCAadvertise?” Now, you’d be hard pressed development to help drive sales Commercial is back on a growth trajectory.”to find many Californians who haven’t and support growth within andheard or seen some type of ad for California advertising includes TV spots, billboards and prints ads in local across our markets.Health Net of California (HNCA). and national publications. See samples “That means building on our The first campaign began last fall and in this story and on HN Connect. ‘go local’ business strategies toanswered the question, “Why is Health Investing in the Latino market systematically get even closer toNet a better decision?” Great fanfare accompanied the our customers,” she explains, “to “One of the key messages emphasized announcement of enhancements to understand what our membersHealth Net’s stability – 25 years ofexperience, 6 million members and the HNCA’s Salud con Health Net product need and how best to deliver it tostaying power of a $12 billion company,” suite at an event at the Mexican them. As we move along this path,states Mark Morgan, HNCA chief Consulate in Los Angeles. Salud our products, marketing andcommercial officer. “Another message enhancements include two new products– advertising will play a critical role–reassured members that they can Mexi-Plan and Health Net Cross-Border reflecting how we are becomingcount on us to be available when they Individual and Family Plan – the first the health care company thatneed us – whether they’re ready to ever cross-border health care plans uniquely understands and servesbegin a fitness program, or they have available to individual consumers who its customers with the solutionsa serious health condition and need purchase benefits directly from insurers. they need.” (Continued on next page.) So How Big Is Health Net’s Commercial Business? Our commercial franchises – HNCA, HNOR, HNAZ, HNNE-NY, NJ, CT – are the largest segment of our company with: • More than 2 million members. • Boasting about 53 percent of total Health Net revenues. Sample of HNCA’s East Los Angeles and State Health Programs ad campaign. summer 2006 connections 11
  14. 14. HNNE New Jersey direct mail campaign sample. products opened in East Los Angeles “We’ve run at least four distinctive in June. ads for each town,” says Jennifer HNAZ has its own storefront in Ravalli, regional marketing a mall in Mesa, Ariz., launched to coordinator, Shelton, Conn. (See Fifteen media outlets were encourage Medicare Part D enroll- samples, next page.) “Health Net attracted to the festivities – print, ment. (See mention in story on associates living in these communities radio and television–resulting in Medicare, page 8). The storefront help us choose which events extensive coverage and giving concept is an example of a “customer to feature in the ads. In some enrollment a major boost – with intimate” approach to recognizing instances, we cleverly include a nearly 1,000 calls coming in on the unique and diverse needs. reference to a Health Net associate first day of offering Mexi-Plan. who lives in the community.” The Northeast goes grassroots California associates cultivate Northeast Marketing will expand with MyTown Salud enrollment MyTown to other parts of HNNE. In response to feedback from Keeping the momentum going, “So associates should keep that local HNNE associates, Northeast 20 associates manned the phone information coming,” Jennifer adds. Marketing is playing up the unique- banks and answered consumer ness of the small town flavor of the New Jersey: Health Net’s back! calls on health insurance during an region with MyTown, an extremely With the launch of the new information special on the popular local marketing campaign based OutlookSM suite of products in New Latino-focused Los Angeles-based around selected Connecticut Jersey, the Marketing team took an Univision television station. communities. integrated approach to get the word Throughout the program, Health “MyTown positions Health Net out and help reinvigorate the Health Net’s Ana Andrade, VP, Latino as a local plan of choice, uniquely Net brand. The June kick-off features Programs, discussed HNCA’s role connected to what makes each collateral, targeted direct mail to in creating more affordable access community a one-of-a-kind place,” company decision-makers, e-mail to care for Latinos. For customer says Paul Lambdin, HNNE chief blasts to brokers, and a New Jersey service representative Isela Torres, commercial officer. “The MyTown print media plan including all the the experience was very rewarding. campaign targets decision makers, major newspapers in Northern “Participating in this event gave us brokers, CEOs and others where New Jersey. all a great opportunity to provide they live.” There’s no doubt about it: the community with important Besides its myriad programs, Health Net Commercial is on information,” says Isela. social events and sporting event the move – and advertising and Another brainchild of associate sponsorships, MyTown includes a Health Net associates are organic origin is the storefront concept. newspaper advertising campaign to the effort. Maria Lugo, director of Sales, came for each community. The ads are up with the idea to bring information as local as local gets – in many cases, and enrollment opportunities to only those from within the Latinos in the way they are most neighborhood targeted actually comfortable: face-to-face. To that “get it.” end, a sales storefront for all HNCA12 connections summer 2006
  15. 15. GREAT PLACE TO WORK What’s the Magic to Saving? For associates, it’s Health Net’s 401(k) Savings Plan “There’s no doubt about it: Y ou’ve probably heard the saying Health Net Commercial “a penny saved is a penny is on the move – and earned” – and putting away a little money on a regular advertising and Health basis is certainly the first step Net associates are toward saving. But Health Net’s organic to the effort.” 401(k) Savings Plan can transform your pennies saved into much more – and it’s no hocus-pocus. Here’s how. Health Net contributes, too For every dollar you save in the 401(k) Savings Plan, Health Net puts in a dollar, too, up to 3 percent of your eligible compensation. If you save even more, Health Net will match 50 percent of the next 2 percent you contribute. It’s an amazing return on your money and makes your savings grow quickly. You’ll want to contribute enough to get the free match money, but you also can save and invest even more. Pretax saving = $$$ 401(k) contributions are not taxed until you withdraw them later. The money you would pay in taxes is instead available to help your savings grow through potential investment earnings. Beginning to see how 401(k) savings benefits are no illusion? To learn more, go to HN Connect > HR Link > My Knowledge Link > 401(k). Or, contact the Associate Service Center (ASC) at 1-877-HR-HELPS (1-877-474-3577).Samples from HNNE MyTown ad campaign inConnecticut. Top: Refers to Kendle Klein, Manager,Sales Administration, Shelton, involved in localtheater. Bottom: Refers to the Garden Club ofWoodbridge’s Notable Tree Project. summer 2006 connections 13
  16. 16. So What Do YOU Think? Fifty bucks says “we really want to hear from you.” To be entered in a random drawing to win one of five $50 SuperCertificates® to shop at, send us your feedback to help make Connections a magazine that gives you a better understanding of Health Net. Simply e-mail answers to the following How to Reply and Enter: three questions by August 15, 2006: • Put your answers to the three questions 1. Did you enjoy reading Connections? in an e-mail. Why or why not? • Type Connections Feedback in the 2. Did this magazine help you become “Subject” box of your e-mail. better informed about Health Net? • Type in Why or why not? the “To” box of your e-mail and send it 3. What stories or types of stories would by August 15, 2006. you like to see featured in future issues Winners will be randomly selected and notified via of Connections? e-mail. Winners names will appear on HN Connect. Thank you in advance for your comments.HN Connect Your Online Resource for Breaking Did you know Health Net at a glance … ? • Provides health benefits to approximately News and Updates 6.6 million individuals. HN Connect is your resource for the latest • Employs approximately 9,800 associates. Health Net news and information. Check out the home page and your business unit or department • Reported revenues of $11.9 billion for 2005. page for the most up-to-date information on whats happening in our company. • Among Fortune 200 companies, is ranked • For an online version of this magazine with live links seventh in profit improvement and 15th to related stories, go to HN Connect > Find It Fast > in total shareholder return for 2005. Newsletters > Connections. • We want to hear from you about Connections on an • Is #191 on the Fortune 500 in 2006 ongoing basis. To provide feedback and idea submissions, go among all industries and #7 in the to HN Connect > Find It Fast > Newsletters > Connections > health care industry. Revenues compare Feedback. to CBS (Fortune #149), Eastman Kodak • Find It Fast: a collection of customizable links for one-click access, available on HN Connect home page, right side, (#155), Apple Computer (#159), Nike under Jays Corner. Click on Customize and follow the (#163) and Pepsi Bottling (#192). instructions to choose the links you want to reside in your personal home page directory.14 connections summer 2006