Health Net agrees to pay $1 million to California DMHC

LOS ANGELES Health Net of California, a subsidiary of Health Net, Inc. will be settling its administrative penalty, the company announced Friday.

In a consensual agreement with the California Department of Managed Health Care, Health Net of California will pay $1 million to the department for not disclosing certain information relating to employee compensation.

As part of the agreement, Health Net agreed to not engage in any compensation practices.

“We are sorry for any misunderstanding with the DMHC. It is important to note that we are currently abiding by the policy in the agreement,” said Jay Gellert, chief executive officer of HealthNet. ”Health care reform is aimed at solving the problem of providing universal coverage. We have supported Governor Schwarzenegger’s reform proposals from the start and they represent the best way to achieve this goal.”

Health Net is among the nation’s largest publicly traded managed health care companies.