WellPoint continues to improve its cost structure while not sacrificing margins. The document analyzes WellPoint's business strategies, objectives, strengths, weaknesses and recommendations. It notes that WellPoint acquired many companies to become the largest health insurer with over 34 million members. It recommends pursuing national accounts, advertising Medicare plans, avoiding non-core investments, lowering costs from mergers, and potentially acquiring more Blue Cross/Blue Shield plans.

1. WellPoint “ We continue to improve our cost structure… not willing to give up margin for membership” - Chairman/CEO

2. Research Methods SEC Filings of Discussed Companies and Firms Questionaire to WellPoint employee random sample Secondary Data from accredited News Sources Personal Interview w/ Anthem Executive Director Industry Data provided by: NASDAQ, S&P 500, and New York Stock Exchange WellPoint Press Releases/Corporate Website

3. A Leader is Born… Year2004 28 million members makes WellPoint #1!

4. Wellchoice New Jersey Meridian Resource Co. Anthem Behavioral Health WellPoint Worker’s Compensation Managed Care Services Golden West Dental & Vision AdminaStar Federal WellPoint Pharmacy Mgmt Health Management Corp. Lumenos WellPoint Dental Services HealthLink Empire BCBS (New York) WellPoint Behavioral Health HealthCore BCBS of Wisconsin United Government Services Anthem Vision BCBS of Missouri UniCare Anthem Prescription Mgmt BCBS of Georgia PrecisonRX Anthem Life Insurance Co. Blue Cross of California OneNation Benefit Administrators Anthem Dental Anthem BCBS 1 - 10 insured are WellPoint members? Did you Know?

5. 34 Million Strong! In Recent Times…

6. WellPoint’s Objectives Seek to insure the uninsured Pursue new markets Grow National Accounts EPS 2Q of 2006 = $1.14 ($4.63 for year) Lower SGA associated costs Think Big… Act Local Economics of Scale

7. The Industry The Healthcare Industry is the largest employer. 1-9 Americans! Did you Know? 21.9% Annual Growth Public Opinion Increasing Health Insurance Industry “SnapShot”

9. New Market Entrants Credibility essential Too expensive to compete nationally Economics of Scale will force entity to be more expensive Supplier Power Generic drug options is forcing name brands to lower costs General Healthcare rising but at a lower rate. Physicals/Hospitals also in highly competitive industries. Prefer strategic partnerships Hospital Consolidations limit options, raising costs. Buyer Power Generally based on employers’ choice Cost is increased w/o group participation Several Markets bordering monopoly Substitute Products Comparable Options Available Health Savings Account Self Insure Government Aid Do without Competitive Rivalry Strong industry rivals Industry growth based on acquisition Product offerings similar Shareholder expectations

10. United Health Care Cigna WellPoint Aetna High Profit Margin Low Profit Margin Low Products & Services High Products & Services Fierce Competition

11. Key Business Core Competencies Blue Cross/Blue Shield Specialty Plans Bundle Packages ‘ Cross Selling’ Economics of Scale Proactive Solutions Highly leveraged by large cash flow Lowest Potential Cost Medicare Plan D

12. Lawsuits Spikes in health care costs Competitors more efficient 45 million uninsured National Employee Accounts Acquisitions of smaller firms Capitalize on competitors dissatisfied customers Threats Opportunities High cost of SGA Synergy of previous mergers not optimized “ non-core ” investments may distract management Untimely physician payments Strong bargaining power Wide array of products Strong brand recognition BCBS provider for 14 states Economics of Scale Weaknesses Strengths

13. Strategic Results National Accounts WellChoice Acquisition 1.5 million new members in 2005 Uninsured Americans Specialty Programs 753,000 new members in 2005 Shareholder Value Promised Earnings

14. Recommendations Pursue National Accounts that can add an additional 115 million members. Medicare Plan D Awareness program targeted from the 40 million eligible. Advertise Blue Value Access Plan to ensure Baby Boomer membership. Avoid non-core business investments Lower SGA costs associated from mergers. Lack of synergy could easily be the ‘hole in the boat”. Acquire Blue Cross/Blue Shields if financially able. 1/3 of all Insured are BCBS customers.