<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from Health Net's
Form 10-Q and is qualified in its entirety by reference to such Form 10-Q
filing.
</LEGEND>
<MULTIPLIER> 1,000
       
                                        
<PERIOD-TYPE>                              3-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-END>                               MAR-31-1996
<CASH>                                         178,047
<SECURITIES>                                   368,232
<RECEIVABLES>                                  106,081
<ALLOWANCES>                                   (9,770)
<INVENTORY>                                          0
<CURRENT-ASSETS>                               698,705
<PP&E>                                         182,871
<DEPRECIATION>                               (102,748)
<TOTAL-ASSETS>                               1,173,741
<CURRENT-LIABILITIES>                          487,337
<BONDS>                                        362,937
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                            49
<OTHER-SE>                                     317,267
<TOTAL-LIABILITY-AND-EQUITY>                 1,173,741
<SALES>                                              0
<TOTAL-REVENUES>                               810,172<F1>
<CGS>                                                0
<TOTAL-COSTS>                                  648,922<F2>
<OTHER-EXPENSES>                               109,919
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                               5,932
<INCOME-PRETAX>                                 45,399<F3>
<INCOME-TAX>                                    19,390
<INCOME-CONTINUING>                             26,040
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    26,040
<EPS-PRIMARY>                                     0.54
<EPS-DILUTED>                                     0.54
<FN>
<F1>Includes 8.823 million of investment income.
<F2>Includes healthcare expenses only.
<F3>Excludes 31 thousand of minority interest in loss of subsidiary.
</FN>