Health Net Inc. of Woodland Hills has agreed to sell its Medicare Prescription Drug Plan (Medicare PDP) for about $160 million in cash, the company announced today. Medicare PDP is a unit of Health Net Life Insurance Company, a subsidiary of Health Net. Health Net expects to realize approximately $140 million in net cash proceeds from the transaction, after the effect of freed-up capital, taxes and transaction- and transition-related costs. The transaction is subject to regulatory approval from the Centers for Medicare & Medicaid Services (CMS), as well as other customary closing conditions. The company said it expects to close on the deal in the second quarter of 2012. Health Net has approximately 400,000 Medicare PDP members in 49 states and the District of Columbia. Health Net’s annualized revenue for the Medicare PDP business is approximately $490 million. Health Net officials said the company will continue to provide prescription drug plans as part of its Medicare Advantage plan offerings. “We believe this proposed transaction is in the best interests of our Medicare PDP members and our stockholders,” Jay Gellert, president and chief executive officer of Health Net said in a statement. “Our Medicare PDP members, who have received certain services from CVS Caremark for five years, will now be affiliated with one of the nation’s largest Medicare PDP sponsors. “Given our ongoing relationship with CVS Caremark, we are confident that the transition of members will proceed smoothly with no disruption in services,” Gellert added. “In addition, we expect to redeploy the proceeds from this transaction in ways that will benefit Health Net stockholders,” Gellert said.