Today, the Centers for Medicare & Medicaid Services (CMS) and the California Department of Health Care Services (DHCS) moved one step closer to implementing the duals demonstration portion of California’s Coordinated Care Initiative, known as Cal MediConnect, by signing a Memorandum of Understanding (MOU) that establishes the framework of the program. The three-year health care coverage program, which is available to beneficiaries who are fully eligible for both the Medicare and Medi-Cal programs (dual eligibles), is scheduled to begin no earlier than October 2013, based on the DHCS’ current timetable. These federal and state government agencies designed the demonstration to help improve care coordination and health outcomes for the state’s dual eligibles. The following statement is from Jay Gellert, president and chief executive officer of Health Net, Inc. (NYSE: HNT): “Health Net commends CMS and DHCS for taking a step forward to help provide more integrated care for those who are fully eligible for both the Medicare and Medi-Cal programs and have historically been challenged by what can be a fragmented and confusing care system. “Health Net has long served both Medicare and Medi-Cal beneficiaries in California, and we are pleased to have been selected to participate in the duals demonstration in Los Angeles and San Diego counties. “We look forward to working to provide dual eligibles with a patient-centered, readily accessible, coordinated and culturally sensitive system that helps improve the quality of their health care. “In the coming weeks, Health Net will be working with CMS and DHCS to demonstrate our readiness to commence the program.” About Health Net Health Net, Inc. is a publicly traded managed care organization that delivers managed health care services through health plans and government-sponsored managed care plans. Its mission is to help people be healthy, secure and comfortable. Health Net provides and administers health benefits to approximately 5.4 million individuals across the country through group, individual, Medicare (including the Medicare prescription drug benefit commonly referred to as “Part D”), Medicaid, Department of Defense, including TRICARE, and Veterans Affairs programs. Through its subsidiaries, Health Net also offers behavioral health, substance abuse and employee assistance programs, managed health care products related to prescription drugs, managed health care product coordination for multi-region employers, and administrative services for medical groups and self-funded benefits programs.