NEW YORK, July 25, 2008 (PRIME NEWSWIRE) -- Pomerantz Haudek Block Grossman & Gross LLP announced that, following a hearing on July 24, 2008, the Honorable Faith S. Hochberg of the United States District Court for the District of New Jersey issued a ruling from the bench approving a landmark settlement with Health Net, Inc. resolving three related class actions that were filed by the Firm, as co-lead counsel, on behalf of members of the Company's health care plans. The primary issue of this case is how Health Net determines reimbursement for health care services from providers that are out-of network (``ONET'') providers. In particular, plaintiffs alleged that Health Net relied on improper means for determining usual, customary and reasonable (``UCR'') rates for ONET services.

Under the terms of the settlement, Health Net will pay up to $215 million in damages to its members who have received reduced ONET benefits. Of this amount, $175 million will be paid outright to the members, and an additional $40 million will be paid upon submission of evidence of payments to ONET providers or the receipt of bills from these providers. Significantly, from this $40 million Health Net also agreed to discharge many of their members' liability to their ONET providers, in order to make these members whole. In addition, Health Net agreed to pay additional sums for ONET benefits going forward and to make other valuable changes in business practices, valued between $34 and $46 million. The mid-range value of the settlement is approximately $255 million, which Pomerantz believes represents the largest settlement of a health insurance ERISA action ever achieved. According to Pomerantz partner, D. Brian Hufford: ``This settlement represents a major achievement in the fight against abusive health insurance practices. We hope it is only the first step in reforming the health insurance industry to ensure that members receive proper coverage for ONET services.'' Pomerantz partner Robert J. Axelrod adds that, ``We applaud Judge Hochberg for approving the settlement and recognizing the important benefits it provides.'' In addition to the Health Net action, Pomerantz has pending cases against United Healthcare, Oxford, Aetna, CIGNA and Wellpoint, all raising similar challenges to these insurers' policies for paying ONET benefits.

The Pomerantz Firm, which has offices in New York, Chicago, Washington, D.C., Columbus, Ohio and the San Francisco Bay area, is acknowledged as one of the premier firms in the areas of corporate, securities, insurance and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members.

If you have any questions concerning the Health Net matter or the health care practice of the Pomerantz firm in general, please contact Susan J. Weiswasser at 888.476.6529 (toll free) or sjweiswasser@pomlaw.com.

          Pomerantz Haudek Block Grossman & Gross LLP
          Teresa L. Webb
          (888) 476.6529 
          (888) 4.POMLAW
          tlwebb@pomlaw.com