Considering additional outsourced operations...IT is at the top of the ladder and more than likely they will be taking advantage of new technologies to cut their operating costs...technology...you almost have to have a budget today no matter who you are to somehow afford and utilize at least a portion...BD 

Health Net Inc. said Thursday it plans to cut $100 million of annual administrative costs and has reorganized its management structure, naming its first chief operating officer since 1998. The California-based health insurer, which has 349,000 Connecticut members, named James Woys, 49, chief operating officer and Stephen Lynch, 56, president of its new Health Plan Division. Previously, Health Net was organized into eastern and western divisions. Now the heads of the company's four geographic markets and Medicare and Medicaid plans will all report to Lynch. He was formerly head of regional plans.

The reorganization is aimed at consolidating technology systems, eliminating duplication in administrative and operational functions, and outsourcing certain operations. The $100 million of savings is expected by 2010, but Health Net says the number of layoffs in Connecticut or company-wide isn't known yet and that any job cuts could be at least a year away. The company expects to take $40 million to $50 million of pre-tax charges in 2008 for the reorganization.

Health Net Reorganizing -- Courant.com

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