Health Net Inc. said Tuesday its fourth-quarter earnings fell 70 percent on higher costs and restructuring charges, but the results still were better than analysts expected.

The Woodland Hills health insurer reported net income of $35.5 million (34 cents per share), compared with net income of $117 million ($1.04) a year earlier. Revenue grew 8 percent to $3.87 billion.

Excluding charges, the company earned $63.1 million (61 cents). Analysts surveyed by Thomson Reuters expected earnings of 55 cents per share on revenue of $3.78 billion.

“Last November, we outlined a plan to improve operational performance and increase shareholder value,” Chief Executive Jay Gellert said in a statement. “The fourth quarter results were consistent with that plan and set a solid foundation for 2009.”

Health insurers across the country have faced increasing medical costs even as membership has fallen due to higher unemployment. In the quarter, Health Net’s medical loss ratio the amount of premium revenue spent on providing medical care increased to 85.5 percent compared with 82.6 percent a year ago. Total membership dropped 1 percent to 3.7 million, including a 9 percent decrease in the employer-based commercial risk segment. Conversely, Medicare Advantage membership rose 25 percent.

For the full fiscal year, the company earned $95 million (88 cents), compared to $194 million ($1.70) in 2007. Excluding one-time items, the company would have earned $199 million. Revenue rose 9 percent to $15.4 billion.

Health Net reaffirmed its earlier 2009 profit outlook of between $2.25 and $2.40 a share on revenue of $15.5 billion to $16 billion. Analysts, on average, expect just $1.89 a share on revenue of $15.3 billion.

That view helped boost Health Net shares. They were up 94 cents, or 6 percent, to $16.32 in morning trading on the New York Stock Exchange.