(Adds Health Net comment in sixth paragraph, updates eighth paragraph to note Health Net is subcontractor on UnitedHealth bid for different region.)

Health Net Inc.'s (HNT) loss of a major military contract slammed shares Tuesday and led to speculation that the health insurer may speed up consideration of strategic alternatives.

Health Net's stock recently traded down nearly 14% after an announcement late Monday that the Department of Defense will drop the company and Humana Inc.

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