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Hospital For Special Surgery Joins Health Net Provider Network in The Tri-state Region

SHELTON, Conn.—June 30, 2008

Hospital for Special Surgery (HSS) in New York, a leading hospital for orthopedics and rheumatology, has entered into a multi-year agreement with Health Net of the Northeast, Inc. (HNNE), to provide services to its commercial plan members for all covered in-patient and out-patient services at in-network rates.

Paul Lambdin, president of HNNE, said, "We are proud to offer our members network access to Hospital for Special Surgery and their other health care facilities. We work hard to provide members with a broad choice of hospitals and physicians and this mutually-beneficial agreement with HSS is evidence of continued progress."

In March of this year, The Hospital Quality Alliance released a patient survey of hospitals nationwide on different aspects of care. Patients ranked HSS well above the national average in both overall satisfaction and willingness to recommend the hospital to others. HSS also was ranked as the top hospital in orthopedics by U.S. News & World Report in its 2007 "America's Best Hospitals" survey.

Furthermore, HSS was a recipient of the HealthGrades Joint Replacement Excellence Award in 2008 and 2007.

Additional areas of expertise at HSS include spine surgery, sports medicine, orthopedic trauma, hand surgery and foot and ankle surgery. HSS physicians with a subspecialty training in the field of spine surgery focus on patients who suffer from congenital or acute spinal disorders as well as from chronic back pain.

"Demand is growing for highly skilled treatment of orthopedic and rheumatological conditions, arthritis and sports-related injuries," said Louis A. Shapiro, president and CEO, Hospital for Special Surgery. "Therefore our participation in the leading health plan networks such as Health Net's offers significant benefits to those who want their care at HSS."

Shapiro noted that HSS is an innovator in joint replacement surgery and perfected minimally invasive instruments and procedures for hip and knee surgery as well as spine surgery that speed recovery and reduce hospital stays. "As national leaders in the use of regional rather than general anesthesia, our surgeons annually perform more than 20,000 surgeries at the Hospital," he added.

HSS physicians from its Sports Medicine Service are associated with the New York Mets, New York Football Giants, New York Knicks, Nets Basketball and the New York Red Bulls Soccer among many other leading sports organizations. In addition, HSS sports medicine specialists serve on the U.S. Olympic Committee medical staff team that will cover the 2008 Games in Beijing.

With a physician network comprising more than 90,000 physician and provider office locations, Health Net is one of the largest health plans in the Northeast, offering a full array of open-access products and coordination for multi-region employers.

About Health Net

Health Net of the Northeast, Inc., headquartered in Shelton, Conn., employs approximately 1,600 associates in Connecticut, New Jersey and New York. HNNE, through its subsidiaries, offers full-service health plans that serve nearly one million members in the tri-state area. The Northeast health plans offer a wide array of products including: Health Maintenance Organization (HMO), Point-of-Service (POS), Preferred Provider Organization (PPO), third-party administration, Medicare and Medicaid.

HNNE is a subsidiary of Health Net, Inc. (NYSE: HNT). Health Net, Inc. is among the nation's largest publicly traded managed health care companies. Its mission is to help people be healthy, secure and comfortable. The company's health plans and government contracts subsidiaries provide health benefits to approximately 6.8 million individuals across the country through group, individual, Medicare, Medicaid and TRICARE and Veterans Affairs programs. Health Net's behavioral health subsidiary, MHN, provides mental health benefits to approximately 6.9 million individuals in all 50 states. The company's subsidiaries also offer managed health care products related to prescription drugs, and offer 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 the company's Web site at healthnet.com.

Cautionary Statements

All statements in this press release, other than statements of historical information provided herein, including but not limited to the guidance for future periods included herein and the assumptions underlying such projections, may be deemed to be forward-looking statements and as such are subject to a number of risks and uncertainties. These statements are based on management's analysis, judgment, belief and expectation only as of the date hereof, and are subject to uncertainty and changes in circumstances. Without limiting the foregoing, the guidance as to expected future period results and statements including the words "believes," "anticipates," "plans," "expects," "may," "should," "could," "estimate," "intend" and other similar expressions are intended to identify forward-looking statements. Actual results could differ materially due to, among other things, rising health care costs, negative prior period claims reserve developments, trends in medical care ratios, unexpected utilization patterns or unexpectedly severe or widespread illnesses, membership declines, rate cuts affecting our Medicare or Medicaid business, issues relating to provider contracts, litigation costs, regulatory issues, operational issues, health care reform and general business conditions. Additional factors that could cause actual results to differ materially from those reflected in the forward-looking statements include, but are not limited to, the risks discussed in the "Risk Factors" section included within the company's most recent Annual Report on Form 10-K filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements. The company undertakes no obligation to publicly revise its guidance, the assessment of the underlying assumptions or any of its forward-looking statements to reflect events or circumstances that arise after the date of this release.

About Hospital for Special Surgery

Founded in 1863, Hospital for Special Surgery (HSS) is a world leader in orthopedics, rheumatology and rehabilitation. HSS is nationally ranked No. 1 in orthopedics, No. 3 in rheumatology by U.S. News & World Report, and has received Magnet Recognition for Excellence in Nursing Service from the American Nurses Credentialing Center. In 2008 and 2007, HSS was a recipient of the HealthGrades Joint Replacement Excellence Award.

The Hospital has established a number of specialty centers including innovative centers for Women's Sports Medicine and Osteoporosis Prevention. Other special services include the Mary Kirkland Center for Lupus Research, the Barbara Volcker Center for Women and Rheumatic Diseases, the Gosden-Robinson Inflammatory Arthritis Center and the Center for Skeletal Dysplasias.

The hospital's research division is internationally recognized as a leader in the investigation of musculoskeletal and autoimmune diseases. Hospital for Special Surgery is located in New York City and online at HSS.edu.


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