“We are reiterating our 2013 earnings per diluted share guidance of $2.00 to $2.10,” commented Gellert. “This guidance includes approximately $30 million of operating expenses in preparation for health care reform implementation but excludes any costs related to the company’s expected participation in the state of California’s duals demonstration.”CONSOLIDATED RESULTS Health Net’s total revenues increased 4.4 percent in the fourth quarter of 2012 to $2.8 billion from $2.7 billion in the fourth quarter of 2011. Health plan services premium revenues increased by 5.3 percent in the fourth quarter of 2012 to $2.6 billion compared with approximately $2.5 billion in the fourth quarter of 2011. Health plan services expenses increased by approximately 8.0 percent in the fourth quarter of 2012 to $2.3 billion compared with $2.1 billion in the fourth quarter of 2011. WESTERN REGION OPERATIONS SEGMENT Health Plan Membership Total enrollment in the Western Region at December 31, 2012 was approximately 2.6 million members, a decrease of approximately 1.1 percent from enrollment at December 31, 2011. Total enrollment in the company’s California health plans decreased 1.3 percent from December 31, 2011 to December 31, 2012. Western Region commercial enrollment at December 31, 2012 was 1.2 million members, a 9.7 percent decrease compared with enrollment at December 31, 2011. “Membership in our commercial tailored network products continues to grow. We ended the year with approximately 432,000 members in our tailored network products, representing 35 percent of our Western Region commercial membership,” said Jim Woys, chief operating officer of Health Net. “We believe these cost-effective products will play a critical role as health care reform is implemented.” Enrollment in the company’s Medicare Advantage plans in the Western Region at December 31, 2012 was 234,000 members, an increase of 14.1 percent compared with December 31, 2011. Medicaid enrollment in California at December 31, 2012 was approximately 1.1 million members, an increase of 75,000 members, or 7.4 percent, from December 31, 2011. This increase was due to both enrollment gains in Medicaid membership and approximately 34,000 new members from the seniors and persons with disabilities (SPD) population.