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EXHIBIT 99.1

[HEALTHNET LETTERHEAD]

News Release

Media Contact:	Lisa Haines (818) 676-7912 lisa.j.haines@health.net
Investor Contact:	David Olson (818) 676-6978 david.w.olson@health.net

HEALTH NET'S SECOND QUARTER EARNINGS BEFORE CHARGES
AND OTHER ITEMS FOR FLORIDA SALE REACH $.38 PER SHARE

California Enrollment Climbs, SG&A Drops, Reserves Rise and Debt Falls Again

    LOS ANGELES, July 31, 2001—Health Net, Inc. (NYSE:HNT) today announced that second quarter earnings reached $.38 per diluted share before the effect of charges and Florida operating losses recorded in the quarter in connection with the sale of the company's Florida health plan. Including the effect of charges and items connected with the Florida transaction, Health Net incurred a net loss of $14,205,000 or $.12 per share in the second quarter of 2001, compared with net income of $38,695,000 or $.32 per diluted share in the second quarter of 2000.

    Higher enrollment in key markets and lower selling, general and administrative (SG&A) expenses drove the improved operating results. Reserves for medical claims payable at the end of 2001's second quarter increased by approximately $180 million compared with June 30, 2000, while debt fell by more than $365 million from the end of the second quarter of 2000.

    Total revenues rose 14.2 percent to $2,546,703,000, compared with the second quarter of 2000. Health plan revenues rose 17.2 percent, propelled by a 9.6 percent enrollment increase in the company's commercial, Medicare and Medicaid health plans compared with the second quarter of 2000.

    California, Health Net's largest health plan, saw enrollment climb by 15.6 percent overall with commercial enrollment rising 13.6 percent and Medicaid enrollment increasing by 26.2 percent. California commercial enrollment rose by 53,000 from the end of the first quarter of 2001. New York and New Jersey, key northeastern growth markets for the company, increased enrollment by 9.3 and 9.8 percent, respectively, on a year-over-year basis. Connecticut saw enrollment rise 1.1 percent.

    In the company's other ongoing health plan markets, enrollments declined as a result of Health Net's pricing discipline. Enrollment in the recently sold Florida health plan was essentially flat in the second quarter compared with the second quarter of 2000.

    "Our growth is coming in the markets we want to grow and it's coming at prices that are consistent with medical cost trends," said Jay M. Gellert, president and chief executive officer of Health Net. "We gained 53,000 new commercial members in California sequentially, a testament to our focused marketing efforts in the small group segment."

    Revenues in the company's Government contracts/Specialty services segment rose 2.2 percent to $417,699,000 over the second quarter of 2000 as increased health care costs in the company's three TRICARE contracts drove revenues higher.

    Health Net noted that, excluding Florida results, earnings before interest, taxes, depreciation and amortization (EBITDA) grew by 1.7 percent from the first quarter of 2001 and that the EBITDA margin in the quarter was consistent with the first quarter of 2001 at 4.8 percent.

    The pre-tax charges associated with the Florida transaction included $76,072,000 in losses on the Florida assets held for sale and $20,877,000 in second quarter Florida operating losses. The sale becomes effective today.

    "We are pleased that the plan is part of a company with a strong commitment to the South Florida market," Gellert said. "With the sale complete, we can intensify our focus on consistent growth in our key markets and steadily improving returns."

Medical Costs

    In the second quarter of 2001, Health Net's health plans reported a medical care ratio (MCR) of 86.3 percent including Florida health care costs. Excluding the Florida costs, the health plan MCR was 85.2 percent for the three months ended June 30, 2001.

    Health plan health care costs in the quarter rose by 30 basis points sequentially, excluding Florida, primarily as a result of higher institutional costs. Physician cost trends rose consistent with recent quarters. Compared with the second quarter of 2000, pharmacy costs rose approximately 9 percent on a per member per month (PMPM) basis in 2001's second quarter.

    "While health care costs are increasing, we have adjusted our pricing for 2002 to reflect these higher trends," Gellert explained. "We continue to be encouraged by the acceptance of the pricing in the market."

    The MCR in the company's Government contracts/Specialty services segment was 72.4 percent in the second quarter of 2001 compared with 66.7 percent in the comparable prior year period.

    This increase was driven by changes in the three TRICARE contract extensions Health Net completed last year and the effects of a change in the payment mechanism for TRICARE mental health benefits in the California and Hawaii contract.

Selling, General and Administrative (SG&A) Expenses

    Health Net's concerted efforts to adapt technology to its business processes and an across-the-board focus on administrative expenses drove the administrative ratio (SG&A and depreciation) lower in the quarter. The administrative ratio was 13.8 percent of health plan and government/specialty revenues in the second quarter of 2001. The comparable year-earlier percentage was 15.1 percent.

    "We are determined to drive this percentage lower on a sustainable basis in the quarters and years ahead. SG&A is the one expense we control and it will be the key driver of improved margins going forward," Gellert noted.

Balance Sheet—Notes Offering and New Credit Facility Completed

    Health Net's balance sheet continued to strengthen in the second quarter of 2001 compared with the same quarter a year ago. Cash and securities rose more than $265 million. Total reserves rose approximately $180 million from the end of the second quarter of 2000. Incurred but not reported (IBNR) reserves, excluding the sold Florida health plan, climbed 3.2 percent between the first and second quarters of 2001.

    Overall days in claims payable reached 53.9, compared with 54.9 at June 30, 2000 and the same amount at March 31, 2001. The change was the result of expected reserve changes in the company's TRICARE contracts. Days in claims payable for core health plans only were flat sequentially, after the effect of a one-day decrease from the traditional shared risk payment made every April to California medical groups.

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    "Clearly our reserve posture is conservative. This is prudent given what we are seeing in health care cost trends," Gellert explained.

    Total debt declined by more than $365 million from the second quarter of 2000, to $628,607,000 at the end of the second quarter of 2001. The percentage of debt to total capital was 36.4 percent at the end of the second quarter. At the end of the 2000's second quarter, debt to total capital stood at 50.7 percent.

    "Our success in debt reduction has been extraordinary. We will continue to reduce debt in the future," Gellert said.

    On April 12, 2001, Health Net completed a $400 million 10-year note offering. Moody's Investor Services, Standard & Poor's and Fitch Ratings rate these notes as investment grade. To complete its comprehensive refinancing, on June 28, 2001, Health Net completed a new $700 million revolving credit facility that is predominantly of a 5-year tenor. Due to higher interest on the 10-year notes compared with previous bank financing, Health Net's interest expense rose sequentially, but declined by more than $5 million compared with the prior year's second quarter, primarily as a result of the substantial reduction in total debt over the past year.

    "We are very pleased to have both the note offering and the new revolver complete and in place, affirming the strength of our balance sheet and providing us with the necessary financial flexibility we may need," Gellert noted.

    In the second quarter of 2001, Health Net's operating cash flow amounted to $28,000 compared with negative cash flow of $23,011,000 in the second quarter of 2000. The negligible cash flow in the quarter was caused by a late payment of $54,600,000 for the company's California Medicaid program, the result of a delay in approval for the California state budget, which has since been signed into law by Gov. Davis. Cash flow normalized for this and other items would have been approximately $60,328,000.

    "As earlier stated, we expect operating cash flow for the year to be approximately $600 million with an annual run rate of between $320 and $340 million on a going forward basis," Gellert asserted. "Our strong cash flow provides us with many options for new investments and improving stockholder returns."

Earnings Outlook for the Balance of 2001

    Based on currently available information, Health Net believes that a range of earnings per share for the third quarter of 2001 of between $.41 and $.42 and of between $1.55 and $1.58 for the full year of 2001, excluding the Florida charges and items recorded in the second quarter, is reasonable given the current business conditions the company faces. In addition, the company continues to believe that a range of earnings per share for 2002 of between $1.80 and $1.85 is reasonable given the company's current view of next year's business prospects.

    Health Net, Inc., formerly known as Foundation Health Systems, Inc., is one of the nation's largest publicly traded managed health care companies. Its mission is to enhance quality of life for its customers by offering products distinguished by their quality, service and affordability. The company's HMO, insured PPO and government contracts subsidiaries provide health benefits to approximately 5.4 million individuals in 13 states through group, individual, Medicare, Medicaid and TRICARE programs. Health Net's subsidiaries also offer managed health care products related to behavioral health, dental, vision and prescription drugs, and offer managed health care product coordination for multi-region employers and administrative services for medical groups and self-funded benefits programs.

    For more information on Health Net, Inc., please visit the company's Web site at www.health.net.

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# # #

    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 "Cautionary Statements" section 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.

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Health Net, Inc.
Condensed Consolidated Statements of Operations
(Amounts in thousands, except per share data)

			Second Quarter Ended June 30, 2000			Third Quarter Ended September 30, 2000			Fourth Quarter Ended December 31, 2000			First Quarter Ended March 31, 2001			Second Quarter Ended June 30, 2001
Revenues:
	Health plan premiums		$	1,795,591		$	1,847,400		$	1,920,131		$	2,074,699		$	2,104,501
	Government contracts/Specialty services			408,554			414,279			411,345			388,090			417,699
	Investment and other income			25,455			26,136			28,329			25,335			24,503
		Total revenues		2,229,600			2,287,815			2,359,805			2,488,124			2,546,703
Expenses:
	Health plan services			1,530,497			1,575,723			1,613,544			1,767,394			1,816,199
	Government contracts/Specialty services			272,694			283,306			269,744			273,035			302,300
	Selling, general and administrative			314,885			310,576			352,323			339,578			332,724
	Depreciation			17,072			16,423			16,885			16,972			16,088
	Amortization			9,723			9,675			9,660			9,379			9,460
	Interest			21,933			22,736			21,927			14,438			16,408
				2,166,804			2,218,439			2,284,083			2,420,796			2,493,179
	Loss on assets held for sale			—			—			—			—			76,072
	(Gain) loss on sale of businesses and buildings			—			(1,068	)		1,477			—			—
		Total expenses		2,166,804			2,217,371			2,285,560			2,420,796			2,569,251
Income (loss) before income tax provision (benefit)				62,796			70,444			74,245			67,328			(22,548	)
Income tax provision (benefit)				24,101			25,797			28,019			24,913			(8,343	)
Net income (loss)			$	38,695		$	44,647		$	46,226		$	42,415		$	(14,205	)
Basic and diluted earnings (loss) per share:
Net income (loss)—Basic			$	0.32		$	0.36		$	0.38		$	0.35		$	(0.12	)
Net income (loss)—Diluted			$	0.32		$	0.36		$	0.37		$	0.34		$	(0.12	)
Weighted average shares outstanding:
	Basic			122,441			122,477			122,578			122,845			123,029
	Diluted			122,712			124,188			124,902			125,283			124,915
Ratio & Statistics:
MCR—Health Plans				85.2	%		85.3	%		84.0	%		85.2	%		86.3	%
MCR—Government contracts/Specialty services				66.7	%		68.4	%		65.6	%		70.4	%		72.4	%
Administrative (SGA+depreciation) Ratio				15.1	%		14.5	%		15.8	%		14.5	%		13.8	%

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Health Net, Inc.
Condensed Consolidated Balance Sheets
(Amounts in thousands)

				June 30, 2000			September 30, 2000			December 31, 2000			March 31, 2001			June 30, 2001
Assets
	Current Assets
		Cash and cash equivalents		$	888,637		$	876,278		$	1,046,735		$	1,242,651		$	1,245,437
		Investments available for sale			514,685			479,079			486,902			483,833			424,753
		Premiums receivable, net			144,586			152,305			174,654			200,389			194,314
		Amounts receivable under government contracts			388,403			358,247			334,187			64,804			99,640
		Deferred taxes			166,314			145,402			141,752			117,569			122,419
		Reinsurance and other receivables			139,915			153,090			141,140			143,179			143,199
		Other assets			69,780			70,479			74,184			70,245			70,731
			Total current assets		2,312,320			2,234,880			2,399,554			2,322,670			2,300,493
		Property and equipment, net			258,860			276,071			296,009			288,838			295,612
		Goodwill and other intangible assets, net			882,006			871,496			863,419			859,380			829,047
		Other noncurrent assets			97,071			107,082			111,134			108,265			123,904
			Total Assets	$	3,550,257		$	3,489,529		$	3,670,116		$	3,579,153		$	3,549,056
Liabilities and Stockholders' Equity
	Current Liabilities
		Reserves for claims and other settlements		$	1,083,466			1,168,505		$	1,242,389		$	1,247,598		$	1,261,647
		Unearned premiums			188,261			75,008			238,571			256,965			208,408
		Notes payable and capital leases			711			450			49			3			—
		Amounts payable under government contracts			44,115			2,628			972			766			2,287
		Accounts payable and other liabilities			238,752			246,981			329,100			282,801			314,032
			Total current liabilities		1,555,305			1,493,572			1,811,081			1,788,133			1,786,374
		Revolving credit facility and capital leases			992,992			946,445			766,450			646,450			230,000
		Senior notes payable			—			—			—			—			398,607
		Deferred taxes			8,934			8,933			8,635			10,430			10,655
		Other noncurrent liabilities			28,306			28,646			22,819			23,903			23,524
			Total liabilities		2,585,537			2,477,596			2,608,985			2,468,916			2,449,160
Stockholders' Equity
		Common stock and additional paid-in capital			644,042			644,730			649,292			652,240			656,316
		Retained earnings			420,351			464,998			511,224			553,639			539,434
		Common stock held in treasury, at cost			(95,831	)		(95,831	)		(95,831	)		(95,831	)		(95,831	)
		Unrealized holding (losses) gains, net of taxes			(3,842	)		(1,964	)		(3,554	)		189			(23	)
			Total stockholders' equity		964,720			1,011,933			1,061,131			1,110,237			1,099,896
			Total Liabilities and Stockholders' Equity	$	3,550,257		$	3,489,529		$	3,670,116		$	3,579,153		$	3,549,056

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Health Net, Inc.
Condensed Consolidated Statements of Cash Flows
(Amounts in thousands)

			Second Quarter Ended June 30, 2000			Third Quarter Ended September 30, 2000			Fourth Quarter Ended December 31, 2000			First Quarter Ended March 31, 2001			Second Quarter Ended June 30, 2001
Cash Flows from Operating Activities:
	Net income (loss)		$	38,695		$	44,647		$	46,226		$	42,415		$	(14,205	)
	Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
		Amortization and depreciation		26,795			26,098			26,545			26,351			25,548
		Net (gain) loss on sale of businesses & buildings		—			(1,068	)		1,477			—			—
		Loss on assets held for sale		—			—			—			—			76,072
		Other changes		3,042			2,645			1,150			631			897
	Changes in assets and liabilities:
		Premiums receivable		8,356			(7,719	)		(22,349	)		(25,735	)		6,075
		Unearned premiums		(39,710	)		(113,253	)		163,563			18,394			(48,557	)
		Other assets		(4,529	)		4,744			57,911			25,643			(31,529	)
		Amounts receivable/payable under government contracts		(35,969	)		(11,331	)		22,404			269,177			(33,315	)
		Reserves for claims and other settlements		(9,043	)		85,039			73,884			5,209			(2,245	)
		Accounts payable and other liabilities		(10,648	)		8,569			22,228			(45,215	)		21,287
		Net cash (used in) provided by operating activities		(23,011	)		38,371			393,039			316,870			28
Cash Flows from Investing Activities:
	Sale or maturity of investments			54,654			70,819			95,005			148,683			294,161
	Purchases of investments			(59,482	)		(33,383	)		(99,646	)		(139,911	)		(234,425	)
	Net property and equipment			(8,626	)		(36,907	)		(36,489	)		(9,850	)		(27,098	)
	Proceeds from the sale of businesses and buildings			—			3,505			—			—			—
	Other			(1,885	)		(8,644	)		(5,867	)		(2,986	)		(10,716	)
		Net cash (used in) provided by investing activities		(15,339	)		(4,610	)		(46,997	)		(4,064	)		21,922
Cash Flows from Financing Activities:
	Proceeds from exercise of stock options and employee stock purchases			248			688			4,561			3,150			2,210
	Proceeds from issuance of notes and other financing arrangements			50,000			95,003			95,001			100,026			395,076
	Repayment of debt and other liabilities			(90,295	)		(141,811	)		(275,147	)		(220,066	)		(416,450	)
		Net cash (used in) financing activities		(40,047	)		(46,120	)		(175,585	)		(116,890	)		(19,164	)
Net (decrease) increase in cash and cash equivalents				(78,397	)		(12,359	)		170,457			195,916			2,786
Cash and cash equivalents, beginning of period				967,034			888,637			876,278			1,046,735			1,242,651
Cash and cash equivalents, end of period			$	888,637		$	876,278		$	1,046,735		$	1,242,651		$	1,245,437

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Statement of Operations Adjusted to Exclude the Sale of the Florida Health Plan
For the Second Quarter Ended June 30, 2001
(Amounts in thousands, except per share data)

			As Reported			Excluding Florida
Revenues:
	Health plan premiums		$	2,104,501		$	1,956,641
	Government contracts/Specialty services			417,699			417,699
	Investment and other income			24,503			23,043
		Total revenues		2,546,703			2,397,383
Expenses:
	Health plan services			1,816,199			1,666,213
	Government contracts/Specialty services			302,300			302,300
	Selling, general and administrative			332,724			313,374
	Depreciation			16,088			15,429
	Amortization			9,460			9,258
	Interest			16,408			16,408
				2,493,179			2,322,982
	Loss on assets held for sale			76,072			—
		Total expenses		2,569,251			2,322,982
(Loss) income before income tax (benefit) provision				(22,548	)		74,401
Income tax (benefit) provision				(8,343	)		27,527
Net (loss) income			$	(14,205	)	$	46,874
Basic and diluted (loss) earnings per share:
Net (loss) income—Basic			$	(0.12	)	$	0.38
Net (loss) income—Diluted			$	(0.12	)	$	0.38
Weighted average shares outstanding:
	Basic			123,029			123,029
	Diluted			124,915			124,915
Ratio & Statistics:
MCR—Health Plans				86.3	%		85.2	%
MCR—Government contracts/Specialty services				72.4	%		72.4	%
Administrative (SGA+depreciation) Ratio				13.8	%		13.8	%

Note:

The "Excluding Florida" column excludes $76.1 million in pre-tax transaction-related charges and $20.9 million in pre-tax Florida operating losses recorded as a consequence of the Florida Health Plan sale. Included in the $76.1 million loss on assets held for sale are a reserve against the $26 million note; transaction costs; real estate costs; a legal settlement; $28 million for reinsurance provided by a Health Net affiliate and various other items. The $20.9 million primarily includes reserve adjustments not related to second quarter operating performance. Unaudited pro forma consolidated financial information will be available in the Current Report on Form 8-K to be subsequently filed by Health Net.

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HEALTH NET, INC.
Medical Covered Lives at June 30, 2001 (Full Risk)
(in Thousands)

		Commercial				Medicare Risk				Medicaid				Insured Subtotal
		06/01	03/01		06/00	06/01	03/01		06/00	06/01	03/01		06/00	06/01	03/01		06/00
Western
	California	1,758	1,705		1,547	121	120		122	616	577		488	2,494	2,402		2,157
	Arizona	277	283		290	55	56		58	—	—		—	332	339		348
	Oregon	80	86		89	—	—		—	—	—		—	80	86		89
	Total Western	2,115	2,074		1,926	176	176		180	616	577		488	2,906	2,827		2,594
Northeast
	Connecticut	344	349		357	34	34		24	87	84		79	465	468		460
	New Jersey	236	226		221	—	—		0	34	30		25	270	256		246
	New York	264	264		242	5	5		6	—	—		—	270	269		247
	Pennsylvania	42	39		41	8	9		12	—	—		—	51	48		52
	Total Northeast	886	879		860	48	48		41	121	114		104	1,055	1,041		1,006
Non-Core and Life Companies
	Colorado	—	—		—	—	—		—	—	—		—	—	—		—
	Florida	95	103		105	44	48		40	24	21		19	163	172		164
	Washington	3	3		3	—	—		—	—	—		—	3	3		3
	Total	97	106		108	44	48		40	24	21		19	166	175		167
Total		3,099	3,058		2,894	268	272		262	760	712		611	4,127	4,042		3,766
Year over Year			7	%			2	%			24	%			10	%
Sequential			1	%			(1	)%			7	%			2	%

HEALTH NET, INC.
TRICARE Lives at June 30, 2001 (Full Risk)
(in Thousands)

		TRICARE HMO				TRICARE PPO/Indemnity				TRICARE Subtotal
		06/01	03/01		06/00	06/01	03/01		06/00	06/01	03/01		06/00
	Arizona	6	6		6	4	4		4	10	10		10
	Arkansas	21	20		20	12	12		12	33	31		32
	California	305	308		305	205	202		205	510	510		510
	Hawaii	67	68		66	21	21		22	88	88		88
	Louisiana	30	30		32	17	18		19	47	47		51
	Oklahoma	64	64		61	38	38		37	102	102		98
	Oregon	13	13		12	9	9		9	22	22		21
	Texas	271	270		262	160	161		160	431	431		422
	Washington	130	129		128	92	92		94	221	221		222
Total		906	907		891	558	556		564	1,463	1,463		1,455
Year over Year			2	%			(1	)%			1	%
Sequential			(0	)%			0	%			(0	)%

9

QuickLinks

EXHIBIT 99.1
HEALTH NET'S SECOND QUARTER EARNINGS BEFORE CHARGES AND OTHER ITEMS FOR FLORIDA SALE REACH $.38 PER SHARE
Health Net, Inc. Condensed Consolidated Statements of Operations (Amounts in thousands, except per share data)
Health Net, Inc. Condensed Consolidated Balance Sheets (Amounts in thousands)
Health Net, Inc. Condensed Consolidated Statements of Cash Flows (Amounts in thousands)
Statement of Operations Adjusted to Exclude the Sale of the Florida Health Plan For the Second Quarter Ended June 30, 2001 (Amounts in thousands, except per share data)
HEALTH NET, INC. Medical Covered Lives at June 30, 2001 (Full Risk) (in Thousands)
HEALTH NET, INC. TRICARE Lives at June 30, 2001 (Full Risk) (in Thousands)