1. Health Net of Arizona Individual & Family Plan Plan Year Kick Off September 2005

2. Agenda  Welcome  Introductions  Accolades & Service Improvements  Product Portfolio  Renewal Information  Broker Contest

3. Welcome & Introductions Glen Padula Plan Year Kick Off

4. Introductions  Health Net Senior Management –Roger Greaves, chairman of the board –Mark El-Tawil, president, Health Net of Arizona, Inc.

5. Introductions  Individual & Family Plan Sales Team –Chris Porterfield, manager Account Executives –Jim Walsh, Phoenix –Griselle Signorelli, Phoenix –Audrey English, Phoenix –Chris Keel, Tucson Broker Support –Emely Ortiz –Leslie Williams –Trish Farkas –Gail Sedgewick –Patti Houle –Tobi Perham

6. Introductions  Individual & Family Plan Underwriting Team –Nancy Fugiel, manager Underwriters –Cheryl Balhorn –Sorinela Dima –Leticia Torres –Steve Macias, director of sales Medicare

7. Health Net National Perspective Roger Greaves Plan Year Kick Off

8. Health Net of Arizona Financial Snapshot Mark El-Tawil Plan Year Kick Off

9. HNAZ Financial Snapshot  HNAZ has made significant operational improvements driving Net income improvements by over $2.0 million for the same period last year YTD Net Income – June 30, 2005$3,176,616 Prior Year To Date$1,048,545  Reported Net Premium Income rose to $211 million vs. $208 million for the same period last year  YTD MCR including Medicare Advantage improved slightly to 87.1% vs. 87.9% for the same period  Health Net of Arizona is financial strong with Capital of over 400% of the Risk-Based need Note: All numbers are presented on statutory basis and reflect the Arizona company business only and do no reflect Health Net Life members or products managed by Health Net of Arizona.

10. Accolades & Service Improvements Mark El-Tawil Plan Year Kick Off

11. Accolades & Service Improvements  Announcing Excellent Accreditation by NCQA –“NCQA’s ‘Excellent’ Accreditation status is reserved for the best health plans in the nation. It is only awarded to those plans that meet or exceed NCQA’s rigorous requirements for consumer protection and quality improvement and deliver excellent clinical care.” – Margaret E. O’Kane, president

12. Accolades & Service Improvements  Ranking Arizona –Ranked #1 HMO in Arizona by Ranking Arizona Magazine

13. Accolades & Service Improvements  Top tier claims payer –Health Net of Arizona was ranked in the top three claims payers in Arizona Arizona Hospital and Healthcare Association Survey Ranked by percentage of claims paid within 60 days

14. Accolades & Service Improvements  Average speed of answer – 20 –Average number of seconds it takes to answer an incoming call  Abandonment rate – 1% –Number of callers who voluntarily hang up before answer  Financial claim quality – 99.57% –Percentage of incorrect payments or claim denials that result in financial errors  Payment (claims) quality – 98.58% –Percentage found by subtracting the number of claims with a payment error from the total number of reviewed claims

15. November Renewal Chris Porterfield Plan Year Kick Off

16. November Renewal  No Benefit Changes  Rate changes effective November 1, 2005  All in-force membership

17. November Renewal HMO Average Increase  In-force prior to 6/1/05 –14.75%  New 6/1/05 to present –6.75% PPO Average Increase  In-force prior to 6/1/05 –14.75%  New 6/1/05 to present –6.75%

18. Product Portfolio Chris Porterfield Plan Year Kick Off

19. Product Portfolio HMO and PPO 90% Plans –Membership in 90% plans has been frozen as of November 1, 2005 –Current members can continue this coverage Current members will not be forced into another plan

20. Product Portfolio Introducing Health Savings Accounts  Now Selling for November 1, 2005 effective dates –Health Net’s HSA Compatible, High-Deductible PPO Plans offer advantages and choice Convenience of automated reimbursement to the member Option to save –Advantage of one of the largest and most stable banking partners, Wells Fargo

21. Product Portfolio  High-Deductible HSA Plan Designs –Three plan designs at the individual level and three at the family level Individual Individual plan 1 - $1,750, 100/50 Individual plan 2 - $2,600, 100/50 Individual plan 3 - $2,600, 80/50 + Rx Family Family plan 1 - $3, 500, 100/50 Family plan 2 - $5,150, 100/50 Family plan 3 - $5,150, 80/50 + Rx

22. Product Portfolio  Marketing Materials for HSA –HSA Brochure Describes how the Health Net High- Deductible PPO plan works in conjunction with the Wells Fargo Health Savings Account Goes into the overall plan brochure in the back pocket

23. Product Portfolio  Marketing Materials –Plan Brochure Pocket folder High-Deductible PPO plans are shown in the brochure

24. Product Portfolio  Marketing Materials –Application The new plans are found in a third column where the applicant selects the type of coverage for which they are applying

25. Product Portfolio  Marketing Materials –Overview This folded brochure shows each of the Health Net plan designs side-by-side This brochure will be included with renewal packets  Marketing the Health Net HSA programs –Health Net U Classes scheduled

26. Underwriting Enhancements Nancy Fugiel Plan Year Kick Off

27. Underwriting Enhancements  Rate Ups –Rate ups are available for November 1, 2005 effective dates for the following conditions Hypercholesterolmia Depression Anxiety/Panic Attacks Hypertension Irritable Bowel Syndrome Pancreatitis Psoriasis Chiropractic Maintenance Care  Multiple exclusion riders available for November 1, 2005 business

28. Medicare Producer Programs Steve Macias Plan Year Kick Off

29. Medicare Producer Programs  Placeholder

30. Producer Rewards Chris Porterfield Plan Year Kick Off

31. Producer Rewards Bonus Opportunity  $50 per approved application  November, December & January effectives  Introducing new broker commissions  Progressive commission structure –Based on producer’s total Health Net book –10% - 1-99 new and in-force contracts –11% - 100 – 199 new and in-force contracts –12% - 200 – 299 new and in-force contracts –13% - 300+ new and in-force contracts  Bonus payments will be based on quarterly book review in January, April, June and October

32. Contest  Announcing the Race for Cabo Contest –Individual and Family Plan production can be combined with Medicare production –Top Seven producers with at least 150 new members –Effective dates September 1, 2005 thru February 1, 2006 Casa Del Mar, Cabo San Lucas, Mexico