 
Health Net Inc. is selling its Northeast customer base to an affiliate of UnitedHealth Group, the parent company of Trumbull-based Oxford Health Plans.
The transaction was valued at $450 million, including an upfront $290 million payment by the UnitedHealthcare subsidiary of Minneapolis-based UnitedHealth Group and the rest paid out over two years. Health Net could receive additional bounties for commercial customers that remain with UnitedHealthcare after the deal closes, which is expected within a year”™s time.
Los Angeles-based Health Net had been shopping its Northeast and Arizona operations for almost a year and had reportedly neared a deal with Emblem Health, which owns Farmington-based ConnectiCare, only to have the deal collapse over transaction terms. Health Net indicated it now plans to retain its Arizona operations, saying opportunities existed to exploit synergies with other health plans it offers in the West.
Health Net plans to take a charge in the third quarter to account for severance costs, but the companies did not immediately state the deal”™s impact on their respective work forces in Shelton and Trumbull, where both companies had more than 500 employees at last report.
“We will continue to focus on serving our customers in Connecticut, New York and New Jersey during the transition period,” said Paul Lambdin, president of Health Net of the Northeast, in a written statement. “We are committed to ensuring that our members experience a smooth transition to UnitedHealthcare”™s products and services.”
