Health Net Inc. shares plunged Friday after the health insurer slashed its 2012 earnings forecast again and reported second-quarter results that fell far below analyst expectations.
The Woodland Hills, Calif., company said Friday it saw higher-than-expected costs from both commercial health insurance and Medicaid, which is the government-funded program that covers the poor and disabled people. It took a $61 million hit in the quarter because leftover claims mainly from the first quarter came in higher than it expected.
CEO Jay Gellert said in a statement the company is adjusting rates and taking other steps to achieve "substantial" improvement next year in its commercial business.
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