1. Health Net, Inc. Credit Suisse First Boston 12th Annual Healthcare Conference Credit Suisse First Boston 12th Annual Healthcare Conference Steven P. Erwin Chief Financial Officer November 15, 2000

2. Cautionary Statement The matters discussed in this release contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, that involve risks and uncertainties. All statements other than statements of historical information provided herein may be deemed to be forward- looking statements. Without limiting the foregoing, the words “believes,” “anticipates,” “plans,” “expects” and similar expressions are intended to identify forward-looking statements. 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” and “Cautionary Statements” sections included within the Company's most recent Annual Report on Form 10-K filed with the SEC and the risks discussed in the Company's other filings with the SEC. Readers are cautioned not to place undue reliance on these forward- looking statements, which reflect management's analysis, judgment, belief or expectation only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

3. Overview  Where We’ve Been  Where We Are Today and...  Where We’re Going  Where We’ve Been  Where We Are Today and...  Where We’re Going

4. 24 Months Ago, We Were...  A Hodgepodge of Companies  Leveraged Balance Sheet  Negative Cash Flow  Earnings Disappointments  A Hodgepodge of Companies  Leveraged Balance Sheet  Negative Cash Flow  Earnings Disappointments

5. In the Last 24 Months, We...  Rationalized and Focused Businesses  Divested Non-Core Businesses  Priced Products Appropriately  Improved Our Balance Sheet  Met Earnings Expectations Over the Last Seven Quarters  Dramatically Improved Cash Flow, and  Prepared for Solid Earnings Growth in ‘01  Rationalized and Focused Businesses  Divested Non-Core Businesses  Priced Products Appropriately  Improved Our Balance Sheet  Met Earnings Expectations Over the Last Seven Quarters  Dramatically Improved Cash Flow, and  Prepared for Solid Earnings Growth in ‘01

6. Where We are Today  Performing Strongly in California and Tri-State (CT, NY, NJ)  Growing Enrollment  Operating a Stable Government Business  Turning Arizona Around  Pursuing Divestiture in Florida  Positioning for 2001 - 2003  Performing Strongly in California and Tri-State (CT, NY, NJ)  Growing Enrollment  Operating a Stable Government Business  Turning Arizona Around  Pursuing Divestiture in Florida  Positioning for 2001 - 2003

7. Q3 Performance Highlights  $.36 EPS Exceeded Expectations  Normalized Cash Flow of $144 Million Above Target  Debt Fell Below $950 Million  Debt-to-Capital to 48 Percent  Lowest in Three Years  Claims Payable Up $85 Million Sequentially  Stockholders’ Equity Exceeded $1 Billion  $.36 EPS Exceeded Expectations  Normalized Cash Flow of $144 Million Above Target  Debt Fell Below $950 Million  Debt-to-Capital to 48 Percent  Lowest in Three Years  Claims Payable Up $85 Million Sequentially  Stockholders’ Equity Exceeded $1 Billion

8. Consistent Year-over-Year EPS Growth* * Including Sale of Businesses, Restructuring and Other Charges and Other Non-Recurring Items

9. Long-Term Debt to Capital Continues to Decline, Dropping to 48% in Q3 00

10. Short-Term Goals  Meet Expectations in Q4  Continue Pursuit of Florida Transaction  Closely Monitor Arizona Corrective Actions  Significant Re-pricing and Health Care Cost Containment Initiatives  Demonstrate Progress on TRICARE Receivable  Launch Infrastructure Initiatives  Meet Expectations in Q4  Continue Pursuit of Florida Transaction  Closely Monitor Arizona Corrective Actions  Significant Re-pricing and Health Care Cost Containment Initiatives  Demonstrate Progress on TRICARE Receivable  Launch Infrastructure Initiatives

11. Key Priorities for ‘01  Profitable Growth  Further SG&A Efficiencies  MCR Stability  Continued Debt Reduction/Favorable Outlook for Improved Capital Structure  Implement Infrastructure/E-Business Projects Successfully  TRICARE Consistency  Profitable Growth  Further SG&A Efficiencies  MCR Stability  Continued Debt Reduction/Favorable Outlook for Improved Capital Structure  Implement Infrastructure/E-Business Projects Successfully  TRICARE Consistency

12. It’s All About the Basics  A Future of Consistent Growth with Improving Margins  Broader Range of Products  Nine New PPO Products in California  Groundbreaking Latino Product  A Strong Focus on Customer Service  Questium  Using Technology to Significantly Improve Processes  A Future of Consistent Growth with Improving Margins  Broader Range of Products  Nine New PPO Products in California  Groundbreaking Latino Product  A Strong Focus on Customer Service  Questium  Using Technology to Significantly Improve Processes

13. Role of Technology  Technology is Driven by Business Strategies  It Can Dramatically Change Many Health Care Processes and Link Providers and Payors - MedUnite Announced 11/14/00  It Can Reduce Administrative Burdens  It Increases Consumer Access  Technology is Driven by Business Strategies  It Can Dramatically Change Many Health Care Processes and Link Providers and Payors - MedUnite Announced 11/14/00  It Can Reduce Administrative Burdens  It Increases Consumer Access

14. General Long-Term Targets  Double-Digit Health Plan Revenue Growth  Pricing and Enrollment Growth  Flat to Lower Health Plan MCR  SG&A Down by at Least 100 Bps over 3-Year Period  Debt to Total Capital Below 35 Percent by 2003  Consistent ROE of 20% by 2003  Double-Digit Health Plan Revenue Growth  Pricing and Enrollment Growth  Flat to Lower Health Plan MCR  SG&A Down by at Least 100 Bps over 3-Year Period  Debt to Total Capital Below 35 Percent by 2003  Consistent ROE of 20% by 2003

15. Our Strengths  Open Access Product Expertise  Strong Positions in the Two Largest Markets  Sustaining Provider Relationships as Reimbursement Model Shifts Continue  Open, Experienced, Change-Oriented Management Team  Willingness to Exploit Technology and Change Processes and Structures  Open Access Product Expertise  Strong Positions in the Two Largest Markets  Sustaining Provider Relationships as Reimbursement Model Shifts Continue  Open, Experienced, Change-Oriented Management Team  Willingness to Exploit Technology and Change Processes and Structures