What was announced today?

UnitedHealthcare signed a definitive agreement to acquire Health Net's Northeast licensed subsidiaries and obtain rights to renew membership in Connecticut, New York and New Jersey. Health Net will continue to serve commercial, Medicare and Medicaid members following the close of the transaction and prior to their renewal with UnitedHealthcare.

Is UnitedHealthcare acquiring all of Health Net's operations?

No. UnitedHealthcare is only acquiring Health Net's Northeast licensed subsidiaries and obtaining rights to renew membership in Connecticut, New York and New Jersey.

When do you expect this deal to close?

The transaction, subject to regulatory approvals and other closing conditions, is expected to close within 12 months.

What regulatory approvals will you need for this transaction? Do you anticipate any challenges?

The transaction requires approvals from the Departments of Insurance in Connecticut, New York, New Jersey and Rhode Island, and the Department of Health in New York. We have reviewed all aspects of this transaction, including potential regulatory issues. We do not anticipate any regulatory issues that cannot be resolved. As we do on a daily basis, we will work closely with regulators to make sure that we address all of their issues and are transparent with all aspects of this agreement.

Will this have any impact on existing UnitedHealthcare customers? Will UnitedHealthcare premiums change as a result of this acquisition?

This acquisition will not be financed through premium increases. This deal will not impact existing UnitedHealthcare customers, the premiums they currently pay, or the products and services they currently receive. We will continue to deliver the highest level of service to our existing customers that they've come to expect.

What impact does this have on Health Net's Northeast customers? Will Health Net's premiums in the Northeast change as a result of this acquisition?

This acquisition will not be financed through premium increases. Until the transaction closes, there is no impact on existing Health Net's Northeast customers – it will be business as usual. Health Net's Northeast customers and members will continue with their existing coverage and have an opportunity to renew their coverage with Health Net or another carrier, including UnitedHealthcare as per the normal sales process.

After the transaction closes, Health Net's Northeast customers will have the option of renewing with UnitedHealthcare or another carrier. We will make sure that Health Net's customers understand UnitedHealthcare's benefits. Our primary goal is to make this process as easy as possible and to meet customers' needs. We will suggest comparable plans that are similar in design and price points for Health Net customers.

Whose payment, commission and bonus structure will we have?

The payment, commission and bonus structure with UnitedHealthcare and Health Net will continue until customers renew with UnitedHealthcare at which time UnitedHealthcare's commission and bonus structure will apply.

Will UnitedHealthcare be responsible for outstanding Health Net bonus payments in the Northeast following the transaction close?

Health Net will pay outstanding bonus payments that were based on new or renewed business prior to transition to UnitedHealthcare.

When will Health Net's Northeast customers be allowed to enroll in UnitedHealthcare plans?

Until the transaction closes, Health Net's Northeast customers will be engaged in the normal sales cycle and have an opportunity to renew their coverage with Health Net or another carrier, including UnitedHealthcare as per the normal sales process.

After the transaction closes, Health Net's Northeast customers will have the option of renewing with UnitedHealthcare or another carrier at their renewal date. At that time, we will make sure that Health Net's customers understand UnitedHealthcare's features, services and benefits. Our primary goal is to make this process as easy as possible and work to meet customers' needs.

What do I as the broker do with Health Net's Northeast customers who come up for renewal during the transaction approval period?

Until the transaction has closed, Health Net's Northeast customers will continue to have a choice between renewing their existing Health Net contract or choosing other carriers, including UnitedHealthcare, as per the normal sales cycle.

What are the benefits of this transaction to Health Net's Northeast customers?

Health Net's Northeast customers, upon renewal with UnitedHealthcare, will have access to a strong local network of more than 79,000 health care professionals, 200 hospitals and 7,000 pharmacies in Connecticut, New York and New Jersey. UnitedHealthcare also has extensive national network of over 590,000 health care professionals, 4,900 hospitals and 61,000 pharmacies. UnitedHealthcare broadens choice and access to quality care with one of the largest local and national networks, robust clinical programs and a full range of affordable products, including:

• Proactive care management and wellness tools, such as health coaching programs, which utilize the proprietary eSync^SM technology for access from multiple electronic platforms (e.g., phone, email, text messaging).
• A full suite of disease management programs that range from helping members stay healthy to living with illness.
• The most comprehensive database in the industry, which enables us to improve quality by creating evidence-based programs that use data to help physicians achieve optimal outcomes for their patients.
• Health care technology and applications that simplify and enhance patient and physician engagement with the health system.
• Service solutions tailored to the unique needs of all customer segments with local, rapid resolution teams, continuous monitoring of member, physician and customer feedback, and a focus on quality.
• A wide selection of products at a variety of price points, ranging from traditional rich benefit products to innovative consumer-directed products to EPOs.

Should I as the broker continue to work with my Health Net representative in the Northeast?

Until the transaction has closed, it will be business as usual and you should continue to work with your current representative.

If I am currently a Health Net broker but not appointed with UnitedHealthcare, how do I become appointed?

We welcome Health Net's producers and consultants in the Northeast who do not already work with UnitedHealthcare. Please email appointment_credentialing@uhc.com and request to become appointed.