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Health Net, Inc. has populated it’s year old Health Care Organization (HCO) with 6,500 of its California employees.

Employer Occupational Services Group Managed Care Services (EOSG), the one subsidiary Health Net retained after it sold EOS Claims Services to Tristar Insurance Group, July 1, operates the HCO.

Together with AIG Claims Services (AIGCS), Health Net is able to provide a more comprehensive workers’ compensation medical treatment program to injured employees.

“We are pleased to enroll so many of Health Net's California-based employees in our HCO,” said Thomas E. Ash, president of EOSG. “By applying the basic principles of managed care, including contracted networks and care coordination programs, we can help improve the quality of care at a reduced cost to the employer.”

“With our own HCO, we can expand the product offerings that we provide to our clients,” said Jay Gellert, president and chief executive officer of Health Net, Inc. “We think there is a good opportunity in this market—and look forward to expanding our HCO book of business.”

“AIGCS anticipates significant cost reduction by using an HCO in California,” said Don Hunter, vice president of AIGCS’ Medical Management Services.

“HCOs can help California employers improve the quality of work-related medical care and return to work programs, while controlling workers' compensation costs,” added Richard Gannon, administrative director for the California Department of Industrial Relations. “They are an increasingly popular way for employers and carriers to provide medical care for injured employees.”