Health Net Inc. has reported a fourth-quarter loss as enrollments continued to plunge. However, excluding charges related to the sale of its Northeast business, the managed-care provider's results exceeded Wall Street's expectations.

Health Net's fourth-quarter net loss was $45.2 million, or 43 cents per share, compared with net income of $35.5 million, or 34 cents per share, a year earlier.

While, excluding one-time charges, the company grabbed a profit of 69 cents per share. On that basis, analysts on average speculated 67 cents, according to Thomson Reuters I/B/E/S.

Health Net shares reported a fall of nearly 3 percent as the entire sector poses its weakness amid concerns about possible policy changes in Washington, analysts said.

Also, the revenue fell to $3.8 billion from $3.9 billion as membership slipped amid higher unemployment.

Amidst declining share, Health Net augurs its earnings to be between $2.32 and $2.42 per share, higher from a previous expectation of $2.30 to $2.40. Wall Street analysts on average were expecting $2.32.

"Overall (results) were good, but the whole (HMO) group is off on concerns about D. C.", said Brian Wright, an analyst with Collins Stewart.

Health Net shares registered a down of 70 cents to $23.91 in morning trade on the New York Stock Exchange.