WellPoint is working to address challenges in the US healthcare system related to affordability, access, quality care, and improved health. Regarding affordability, WellPoint is achieving administrative cost savings, helping contain healthcare costs, and providing consumers with information to help manage their own costs. For access, WellPoint is creating more affordable coverage options, finding ways to provide coverage to low-income Americans, and overcoming barriers like language and lack of local resources. Regarding quality care, WellPoint is collaborating with healthcare providers to improve clinical performance and establish evidence-based best practices. WellPoint also offers health improvement programs to help members manage chronic conditions and contribute to better health outcomes.
Consumer-Centric Healthcare: 2015--The Tipping Point Has Arrived (Report by William Blair)
Consumers—in tandem with disruptive healthcare technology and healthcare services providers—are the key to solving many of US healthcare's woes, particularly the unsustainably high cost of care.
Public exchanges, private exchanges, and high-deductible health plans are growing quickly. Disruptive forces of competition will create a lower-cost system that promotes the growth of highly efficient, low-cost, and high-quality providers and technologies.
The continued movement of financial and quality risk back to providers (and increasingly to consumers themselves) is encouraging providers and consumers to seek preventive medicine, cost efficiency, clinical efficacy, and overall value in healthcare. In turn, this could drive significant change regarding the primary point of care delivery (rapidly moving outside the hospital), the overall cost of healthcare and investment decisions made by healthcare providers.
Consumer-centric healthcare providers will experience strong top- and bottom-line growth over the coming years. Investors in both the public and private-equity markets will achieve superior long-term returns by identifying and investing in these companies.
Obamacare - The Patient Protection and Affordable Care Act - ACAAndrew F. Bennett
This short presentation will help bring you up to speed on the Affordable Healthcare act, eligibility requirements to buy in the online marketplace, and coverage that will be available.
"You can download this product from SlideTeam.net"
Healthcare Management Powerpoint Presentation Slides is designed especially for the medical industry professionals. Use this PPT slideshow to showcase all the essentials of healthcare administration with a dash of visual brilliance. Demonstrate the key trends and vital stats of the healthcare industry through our content-driven PowerPoint theme. Communicate details about global healthcare economy, and global spending stats. Illustrate the key demand and supply drivers associated with public health management. Employ our audience-friendly medical administration PPT template deck to elucidate stakeholders in the public health system. Cutting-edge graphics and innovative data visualization designs simplify the explanation. Use diagrams featured in this PowerPoint presentation to describe essential public health services. You will also find infographic-style designs to help elaborating concepts like hospital and corporate tie-ups. Utilize the Venn diagram to emphasize the pharma company operating model. Convey the research and development protocol followed in the pharmaceutical industry. Our comprehensive PPT layout contains oodles of other core aspects of hospital management. This includes cost accounting, financial management, data analysis, strategic planning, marketing, and KPI metrics and dashboards. So, hit the download button and captivate your audience. Our Healthcare Management Powerpoint Presentation Slides are topically designed to provide an attractive backdrop to any subject. Use them to look like a presentation pro. https://bit.ly/3oAoykn
Did you have time to read the 1,990 page healthcare bill that was recently passed through Congress? Have you since wondered about the impact that massive bill will have on the average American, health insurance providers, business owners and YOU? If yes, then join the Young Professionals of Chicago as we host a panel of diverse health care professionals that will be discussing current healthcare reform and taking questions on the impact of the United States' new healthcare policy. The distinguished panelists will also provide some insight and clarity into what this massive bill means for individuals like you. There will also be an opportunity for open networking with other young professionals before and after the discussion.
Consumer-Centric Healthcare: 2015--The Tipping Point Has Arrived (Report by William Blair)
Consumers—in tandem with disruptive healthcare technology and healthcare services providers—are the key to solving many of US healthcare's woes, particularly the unsustainably high cost of care.
Public exchanges, private exchanges, and high-deductible health plans are growing quickly. Disruptive forces of competition will create a lower-cost system that promotes the growth of highly efficient, low-cost, and high-quality providers and technologies.
The continued movement of financial and quality risk back to providers (and increasingly to consumers themselves) is encouraging providers and consumers to seek preventive medicine, cost efficiency, clinical efficacy, and overall value in healthcare. In turn, this could drive significant change regarding the primary point of care delivery (rapidly moving outside the hospital), the overall cost of healthcare and investment decisions made by healthcare providers.
Consumer-centric healthcare providers will experience strong top- and bottom-line growth over the coming years. Investors in both the public and private-equity markets will achieve superior long-term returns by identifying and investing in these companies.
Obamacare - The Patient Protection and Affordable Care Act - ACAAndrew F. Bennett
This short presentation will help bring you up to speed on the Affordable Healthcare act, eligibility requirements to buy in the online marketplace, and coverage that will be available.
"You can download this product from SlideTeam.net"
Healthcare Management Powerpoint Presentation Slides is designed especially for the medical industry professionals. Use this PPT slideshow to showcase all the essentials of healthcare administration with a dash of visual brilliance. Demonstrate the key trends and vital stats of the healthcare industry through our content-driven PowerPoint theme. Communicate details about global healthcare economy, and global spending stats. Illustrate the key demand and supply drivers associated with public health management. Employ our audience-friendly medical administration PPT template deck to elucidate stakeholders in the public health system. Cutting-edge graphics and innovative data visualization designs simplify the explanation. Use diagrams featured in this PowerPoint presentation to describe essential public health services. You will also find infographic-style designs to help elaborating concepts like hospital and corporate tie-ups. Utilize the Venn diagram to emphasize the pharma company operating model. Convey the research and development protocol followed in the pharmaceutical industry. Our comprehensive PPT layout contains oodles of other core aspects of hospital management. This includes cost accounting, financial management, data analysis, strategic planning, marketing, and KPI metrics and dashboards. So, hit the download button and captivate your audience. Our Healthcare Management Powerpoint Presentation Slides are topically designed to provide an attractive backdrop to any subject. Use them to look like a presentation pro. https://bit.ly/3oAoykn
Did you have time to read the 1,990 page healthcare bill that was recently passed through Congress? Have you since wondered about the impact that massive bill will have on the average American, health insurance providers, business owners and YOU? If yes, then join the Young Professionals of Chicago as we host a panel of diverse health care professionals that will be discussing current healthcare reform and taking questions on the impact of the United States' new healthcare policy. The distinguished panelists will also provide some insight and clarity into what this massive bill means for individuals like you. There will also be an opportunity for open networking with other young professionals before and after the discussion.
This presentation discusses the impact of health reform. It begins by defining the problem, then provides an overview of legislation and the impact on business. It provides a contrarian view of the subject and explains why health reform is really insurance reform. It also introduces the concept of consumer sovereignty,
hCentive Health Insurance Exchange PlatformAlisha North
Take advantage of hCentive's deep expertise in the healthcare insurance industry. Browse through or download our white papers to get an in-depth understanding of the industry.
Obamacare in Pictures: Visualizing the Effects of the Patient Protection and ...The Heritage Foundation
“Obamacare in Pictures: Visualizing the Effects of the Patient Protection and Affordable Care Act” shows in detail the impact of the sweeping health care law for Americans.
Online Conference Takes “Deep Dive” into Affordable Care ActPYA, P.C.
PYA’s Martie Ross, Principal, joined three other panelists in a full-day, online conference sponsored by the American Institute of Certified Public Accountants to offer an in-depth look at healthcare reform under the Affordable Care Act (ACA).
This gives a good base knowledge of where the current insurance industry is, a timeline of when certain mandates go into effect and a simplified description of the mandats being launched on Sept 23, 2010.
This presentation discusses the impact of health reform. It begins by defining the problem, then provides an overview of legislation and the impact on business. It provides a contrarian view of the subject and explains why health reform is really insurance reform. It also introduces the concept of consumer sovereignty,
hCentive Health Insurance Exchange PlatformAlisha North
Take advantage of hCentive's deep expertise in the healthcare insurance industry. Browse through or download our white papers to get an in-depth understanding of the industry.
Obamacare in Pictures: Visualizing the Effects of the Patient Protection and ...The Heritage Foundation
“Obamacare in Pictures: Visualizing the Effects of the Patient Protection and Affordable Care Act” shows in detail the impact of the sweeping health care law for Americans.
Online Conference Takes “Deep Dive” into Affordable Care ActPYA, P.C.
PYA’s Martie Ross, Principal, joined three other panelists in a full-day, online conference sponsored by the American Institute of Certified Public Accountants to offer an in-depth look at healthcare reform under the Affordable Care Act (ACA).
This gives a good base knowledge of where the current insurance industry is, a timeline of when certain mandates go into effect and a simplified description of the mandats being launched on Sept 23, 2010.
This document will explain how a comprehensive wellness program works and how much money you should budget in order to have one. If you are ready to kick start health in your organization this is the right place to start.
Healthcare Financial Transformation: Five Leading StrategiesHealth Catalyst
Healthcare financial transformation—improving care delivery while lowering costs—has been an ongoing challenge for health systems in the era of value-based care and an even more prominent concern amid COVID-19. While better care and reduced expense to organizations and consumers might seem like opposing goals, by understanding the true cost of services and other drivers of expense, organizations can successfully manage costs while maintaining, and even improving, care delivery. To that end, health systems can use data- and analytics-driven tools and strategies to addresses financial challenges, including uncompensated care, prolonged accounts receivable days, discharged not final billed cases, inefficient resource use, and more.
Rising Healthcare Costs: Why We Have to ChangeHealth Catalyst
With rising healthcare costs, we hear so often about rate pressures on hospitals and the risk these pressures pose for their future. With healthcare reform, the burden of rising healthcare costs is shifting from payers to providers. Hospitals need to move toward value-based reimbursement models or they will face a -15.8 operating margin by 2021.Over the last 15 years premiums and employee contributions for an average family with health insurance sponsored by an employer have risen 167%. Along with these facts, government payers are reimbursing at lower levels becoming a negative margin for hospitals. These changes are not necessarily easy and can seem overwhelming. The question is whether your hospital will be a pioneer on the trail or will delay until it’s too late. The best way to get started is to understand exactly where you are today—your current cost structure and how each area of your organization is performing in terms of quality and cost, using an EDW.
this is assignment 1
Financial Statement Analysis
Student name
University
Professor
October 25, 2016
Financial Statement Analysis
Based on your review of the financial statements, suggest a key insight about the financial health of the company. Speculate on the likely reaction to the financial statements from various stakeholder groups (employee, investors, shareholders). Provide support for your rationale.
Health Management Associates, Inc. (NYSE: HMA) is the operator and owner-general acute care centers in the non-urban communities situated in the US, particularly in the Southwest. The organization was founded in 1977. The hospitals provide services such as oncology, emergency room care, general surgery, internal medicine, radiology, pediatric services, coronary care, and diagnostic care (
www.healthcaremanagement.com
).The company is also providing outpatient services like x-ray, respiratory therapy, one-day surgery, laboratory services, physical therapy as well as cardiology therapy. The mission of the Health Management is to provide America’s best local healthcare. They provide processes, capital finance, expertise, and people that can ensure that the local hospitals can accomplish their mission of delivering compassionate and high-quality healthcare that would substantially improve the lives of patients, the communities they serve, and the physicians providing the care
www.healthcaremanagement.com
)
With regard to the review of the current financial statement, HMA is in a dangerous financial state as a result of the present increasing debts and legal woes. The Office of the Inspector General, Justice Department, and the Department of Health and Human Services served the organization with summons regarding a software program that was used by ED doctors and the records from the emergency department. Some reports suggested that there was pressure from the company’s hospitals management to admit patients from emergency rooms so as to maximize profits. Paul Meyer, former compliance director, claimed that HMA’s fraudulent activities could attract government investigation (Britt, 2012).
The common stock of Health Management Associates was owned by almost 850 shareholders, as per the records of December 31, 2012, with hundreds of institutional investors included. HMA had expanded to include 70 hospitals situated in 15 states, with roughly 10,562 present licensed beds. In 2012, HMA realized about $5.9 billion in net revenue (Britt, 2012).
HMA gets payments for the services it renders from the federal government through the Medicare program, the states in which it functions under each Medicaid program, and commercial insurance, among others; and patients, encompassing deductibles and co-payments. Basically, deductibles and co-payments are part of the bill of patients for the medical services provided, which many government and private payers expect the patient to cater for. The amount of deductibles and co-payments v.
Three Key Strategies for Healthcare Financial TransformationHealth Catalyst
To succeed in today’s rapidly evolving business environment, healthcare organizations must have accurate financial data. Approximately 50 percent of CMS payments are now tied to a value component; hospital operating margins are at an all-time low; and consumer demands are rising with their costs. In order to meet these new challenges, health systems must shift their strategy or risk being left behind. This article details the operational, organizational, and financial strategies that drive financial transformation, as well as examples of how to obtain and utilize financial data, find waste reduction opportunities, and much more.
Presented during Day One of the 2016 Nigeria Health Care Financing Training Workshop. Presented by Dr. Elaine Baruwa. More: https://www.hfgproject.org/hcf-training-nigeria
Medical Gap Plans - Reduce Health Plan CostsPeter Toth
Medical Gap Insurance reduces the costs of health insurance. Health Insurance costs contine to rise ans this is one of the best solutions that Insurance Brokers can show their clients and prospects. Medical gap plans can be for insured or self funded medical plans. These are not just voluntary plans any longer.
Similar to WellPoint 2004 summary annual report (20)
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
Resume
• Real GDP growth slowed down due to problems with access to electricity caused by the destruction of manoeuvrable electricity generation by Russian drones and missiles.
• Exports and imports continued growing due to better logistics through the Ukrainian sea corridor and road. Polish farmers and drivers stopped blocking borders at the end of April.
• In April, both the Tax and Customs Services over-executed the revenue plan. Moreover, the NBU transferred twice the planned profit to the budget.
• The European side approved the Ukraine Plan, which the government adopted to determine indicators for the Ukraine Facility. That approval will allow Ukraine to receive a EUR 1.9 bn loan from the EU in May. At the same time, the EU provided Ukraine with a EUR 1.5 bn loan in April, as the government fulfilled five indicators under the Ukraine Plan.
• The USA has finally approved an aid package for Ukraine, which includes USD 7.8 bn of budget support; however, the conditions and timing of the assistance are still unknown.
• As in March, annual consumer inflation amounted to 3.2% yoy in April.
• At the April monetary policy meeting, the NBU again reduced the key policy rate from 14.5% to 13.5% per annum.
• Over the past four weeks, the hryvnia exchange rate has stabilized in the UAH 39-40 per USD range.
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdf
WellPoint 2004 summary annual report
1. quality care :: improved health ::
access ::
access :: affordability ::
part of the solution
2004 Summar y Annual Repor t
2. WellPoint, Inc.
WellPoint, Inc. was launched on November 30, 2004,
with the merger of Anthem, Inc. and WellPoint Health
Networks Inc. We serve nearly 28 million medical members
nationwide. WellPoint, Inc. is an independent licensee
of the Blue Cross Blue Shield Association in 13 states.
We also serve members through other businesses,
including UniCare and HealthLink. For an overview of
WellPoint, Inc., please see page 26.
3. WellPoint :: part of the solution
Health care in the United States faces tough challenges: rising costs, concern
about the uninsured, gaps in the quality of care, resources strained by chronic
disease and unhealthy lifestyles.
WellPoint is part of the solution. We work to make quality health care coverage
affordable and available to millions of Americans, and to improve the health of the
people we serve. In communities across the country, we offer innovative products
and distinctive service to give people the options and services they need.
We have created the nation’s leading health benefits company with the resources to
play a leading role in achieving the full potential of our nation’s health care system.
In this report, we address questions related to key health care challenges:
affordability, access, quality care and improved health. We also explain what
WellPoint is doing to help achieve these goals.
4. What is the cause
of rising health
insurance premiums?
Premiums have risen to keep pace with the growing
cost and use of health care services. Key drivers include
the growing health care needs of an aging population,
the cost of new technology and the increased use of
prescription drugs. Other factors that add to the cost of
health care are legally mandated benefits, unwarranted
litigation and medical malpractice insurance.
affordabilit y :: pages 6–9
5. What can be done to
provide health insurance
for Americans who
aren’t covered?
Educate those who can afford insurance on the
importance of having coverage and the availability of
affordable options—and develop new products to meet
their needs. Enroll the uninsured who are eligible for
existing government programs. Extend coverage to
low-income Americans who don’t qualify for government
programs through tax credits to help them buy insurance
and targeted extensions in current programs.
access :: pages 10–13
6. With the cost of care
already rising, how can
we afford to improve
health care quality?
Quality care can, and usually does, cost less. That’s
why WellPoint’s quality programs can provide increased
reimbursement to hospitals and physicians based in part
on achieving improved quality measures. By averting
medical errors, improving outcomes and increasing
efficiency, quality care reduces costs. So the same
quality programs that help improve members’ health
also help hold down their health care costs.
qualit y care :: pages 14–17
7. Should WellPoint offer
health improvement
programs that add to
administrative costs?
Yes. WellPoint’s health improvement programs—such as
helping members manage chronic disease—contribute
to our members’ health. And while they may increase
administrative costs, such programs can reduce
overall costs. The fact is, we’re bringing down average
administrative expense even as we increase our
investments in health improvement and information
technology to better serve our members.
improved health :: pages 18–21
8. affordability The rising cost of health benefits is straining the budgets of
governments, employers, families and individuals. WellPoint is achieving administrative
cost savings in what we do while helping hold down the cost of care. We’re also helping
people manage their own health care costs.
the challenge :: Holding down the rise in health care costs
The cause of rising health insurance premiums is the rising cost of health care itself. Nationally,
about 87 cents of every dollar of private health insurance goes to health care products and
services, and 13 cents to administration. More than half of each private health insurance dollar
is spent on hospital care and physician services.
As the graph on page 8 shows, health expenditures have risen from 7 percent of Gross Domestic
Product (GDP) in 1970 to over 15 percent in 2004—during a period when GDP has grown more
than any other time in our nation’s history. That figure is expected to reach 17 percent by 2010.
A combination of factors is driving health care costs higher. These include the increased cost and
use of medical services, prescription drug use, expensive new technology, an aging population,
legally mandated benefits, and medical malpractice insurance costs.
our part :: What we can do about rising health care premiums
WellPoint is taking action to stem the rise in health care premiums. We’re also helping consumers
take more control of their own health care spending.
Focusing on our own costs. In the past several years, we have significantly reduced administrative
costs as a share of revenues. The merger of Anthem, Inc. and WellPoint Health Networks Inc.
provides substantial opportunities for operating synergies and cost savings. Synergies are
expected to be at least $250 million a year by 2006. Our merged company is also able to spread
fixed administrative costs and overhead over a much larger membership base, helping to hold
down premium increases for our members.
We’re also helping hold down the cost of prescription drugs through efficient pharmacy benefit
management services. (Please see pages 8–9.)
Helping contain the cost of care. One way to rein in health care costs is to improve quality—
because quality care can actually cost less. The Institute of Medicine reported in 2000 that medical
errors cost an estimated $38 billion annually. By collaborating with hospitals, physicians and
page 6 WellPoint, Inc.
9. other health care professionals to improve clinical performance, WellPoint is helping to reduce
the costs that everyone must bear.
We’re also helping to reduce the cost of care through programs to assist members in managing
chronic, and often serious, medical conditions. We provide coaches and other support to help these
members stay healthier and avoid the need for hospitalization and other costly treatment.
Helping consumers manage their own costs. WellPoint is developing products that give consumers
more choice and control over their expenses, and we’re helping them make informed decisions
about their health care.
Our Anthem ByDesign HSA couples a high-deductible health plan with a Health Savings Account
(HSA)—just one example of many HSA options offered by WellPoint companies. The high-deductible
plan offers lower premiums, while the HSA provides members with a tax-free way to pay for
expenses within the deductible while saving for future health costs.
We are also providing consumers with information that can help them make good choices and
save money on health care—for example, by using more affordable generic drugs.
Our GenericSelect programs offer commercial members a discounted co-payment—in many
cases $0—for their first generic prescription. Blue Cross Blue Shield of Missouri’s program
offers free refills for up to six months. In California, GenericSelect has increased the use of
generic drugs in the covered categories by nearly five percentage points in the past year.
The Think Generics program offers many Anthem Blue Cross and Blue Shield members
an opportunity to try a complimentary sample of a new prescription for an eligible generic
medication. Members who have continued to use the generic drug have saved an average of
$26.86 per prescription.
WellPoint is also offering Medicare discount drug cards throughout each of our states. As of
January 2005, we issued over 338,000 cards, making us one of the nation’s largest issuers.
WellPoint, Inc. page 7
10. Health care consumes a growing share of our resources ::
National Health Spending as a Share
of Gross Domestic Product ::
20%
15
10
5
0
1970 ’80 ’90 ’00 ’01 ’02 ’03 ’04* 2010*
*Projected
Source: Centers for Medicare and Medicaid Services
our part :: affordability. WellPoint members are saving money and
trips to the pharmacy by using our pharmacy benefit management services. We operate mail order
pharmacy centers in Mason, Ohio, and Fort Worth, Texas. Our pharmacies combine state-of-the-art
automation with multiple quality and safety checks by licensed pharmacists to achieve high levels of
efficiency and accuracy. Pharmacist Robin O’Hara is pictured at right in our Mason center.
WellPoint’s pharmacy benefit management services improve safety and reduce the cost of prescription
drugs, by operating efficiently and by providing information to members to help them manage their
use of medications.
WellPoint companies also help members reduce the cost of medications through programs that make it
easier to try generic drugs. And our innovative reference pricing programs—such as Blue Freedom Rx,
offered by Blue Cross Blue Shield of Georgia—provide broader choice of pharmacy benefits and more
control over out-of-pocket expenses.
11.
12. access There are many reasons why people don’t have health insurance,
and many reasons why people don’t have access to appropriate care. WellPoint is
creating products to reach more of the uninsured, while helping to develop other
solutions to expand access.
the challenge :: Ensure that all Americans can get the care they need
The Census Bureau reports that there were 45 million uninsured persons in the United States in
2003, the most recent year for which data is available. But, as the graph on page 12 shows, the
uninsured are not all alike, and there is no single solution that can reach them all.
About one-third of the uninsured are eligible for existing government programs, and a similar
number have incomes high enough to buy insurance. The remainder—those with low incomes
who are not eligible for existing government programs—are likely to be in low-wage jobs for
small employers who do not provide health insurance.
Low-income uninsured individuals and families lack access to preventive care and treatment for
basic health problems. For these Americans, health care is often too little or too late. As a result,
society bears the cost of caring for advanced health problems that could have been prevented or
managed at an earlier stage. And insured patients, and taxpayers, end up shouldering costs of
caring for those without coverage.
In addition to a lack of coverage, there are other barriers that keep people from receiving
appropriate health care. These include a shortage of health care facilities and professionals in
some rural and inner-city communities, language or cultural barriers, or the inability to navigate
the complexities of the health care system.
Stepping up to expand health care access represents a very real opportunity to improve
Americans’ health, to reduce health care costs, and to broaden the pool of insured patients to
make health care work better for all.
our part :: What WellPoint is doing to expand access to health care
Reaching more people with a choice of affordable coverage options. Health benefits companies
can be part of the solution by reaching the uninsured who can afford coverage in the private
market. WellPoint is actively marketing products with pricing and features that provide value to
page 10 WellPoint, Inc.
13. people who don’t think they need insurance. One such product is Tonik—aimed at “young invincibles”
aged 19 to 29. (Please see pages 12–13.)
By giving people good reasons to buy coverage, and by providing more affordable options to more
people, we can reduce the number of uninsured Americans. In 2004, WellPoint companies provided
new individual policies to an estimated 375,000 people who had previously been uninsured.
Finding ways to provide coverage to low-income Americans. The most difficult challenge is
covering the uninsured who can’t afford private insurance and aren’t eligible for existing
government programs. As the nation’s leading health benefits company, WellPoint believes
we have a responsibility to help shape public policy solutions to address this challenge.
First, our nation can make insurance more affordable by offering refundable tax credits to small
employers and low-wage workers, and by allowing greater flexibility to offer lower-cost coverage.
At the same time, we should implement targeted extensions in current government programs to
reach more low-income Americans.
Overcoming other barriers to health care access. Of the 6 million people who do not have
health insurance in California, more than 3 million are Hispanic. In 2004, Blue Cross of California
began to accept the Matricula Consular—an identification card issued by Mexican consulates to their
citizens living in the United States—as a valid form of identification to buy health insurance.
Anthem Blue Cross and Blue Shield’s Web site, Anthem.com en Español, serves the growing
Hispanic population with customized and culturally sensitive information. A special feature of
the site, MiSalud@Anthem, offers health news, provider information and other tools to help
Spanish-speaking members manage their health care.
WellPoint is also working to overcome the barriers created by a lack of local health care resources
in many communities. We support community clinics, telemedicine and mobile care initiatives to
improve access in under-served areas of many of our states. To take just one example, through
its funding of free clinics during the past decade, Anthem Blue Cross and Blue Shield in Virginia
has supported more than $30 million worth of medical services for low-income Virginians.
WellPoint, Inc. page 11
14. The uninsured are not all alike ::
Persons Without Health Insurance
in the United States, 2003 ::
Low-to-moderate 31% Eligible for coverage
income, not eligible 36% under existing
14 Million
for existing programs government programs(1)
16 Million
33%
15 Million
In households
with income > $50,000(2)
Source: (1) Blue Cross Blue Shield Association
(2) U.S. Census Bureau
our part :: access. Tonik is a health plan we’ve designed for “young
invincibles.” Justin Doss (at right in the photo) is a 26-year-old information technology professional
in Oxnard, California, who was uninsured—until he went to tonik.com. There he found health
insurance that speaks his language and three plans with monthly premiums of $80 or less.
Justin chose the “Calculated risk-taker” plan.
All Tonik plans include doctor visits with co-pays of $20 to $40, as well as low-cost health screenings,
to encourage members to use preventive health services and take care of ailments before they get worse.
To keep things simple, eyeglasses and dentist visits are also included without the need for separate
Persons Without Health Insurance in the United States, 2003 ::
vision or dental policies. And Tonik plans offer discounts on services, such as fitness center memberships,
that are attractive to young people who think they’ll never have to use their medical coverage.
31%
36%
14 Million
16.2 Million
Eligible for coverage under existing
government programs
33%
In households with income > $50,000
14.8 Million
15.
16. quality care America’s health care system often delivers the best
care in the world, but there is wide variation in the quality of care that individuals
receive. WellPoint is working with physicians and other health professionals to
help them achieve consistently high standards of quality through nationally
accepted, evidence-based practices.
the challenge :: Consistently maintain the highest standard of care
Ultimately, the goal of health benefits is access to quality care. Yet, as the graph on page 16 shows,
even patients with the best available coverage receive recommended care only about 55 percent of
the time. The figure comes from a study that looked at a range of conditions where best practices
have been identified through scientific research and clinical studies. It also found that 11 percent
of the time patients received care that could be potentially harmful.
Closing this gap is a real opportunity to save lives. A report by the National Committee for
Quality Assurance found that 70,000 lives could be saved each year by providing appropriate
care in just eight key areas, such as screening for certain types of cancer and controlling high
blood pressure.
We can save health care resources. We can save lives. In a world of rapidly growing medical
knowledge, physicians and other health professionals need timely access to information on best
practices. But our health care system lacks commonly applied protocols of care, based on
evidence from outcomes among a broad population.
Health care also lacks common processes for recording and transferring patient data seamlessly,
with consistently high standards of privacy. Health care professionals need access to
comprehensive patient data at the point of care—a key step in improving health care safety and
quality. This will require systems for capturing patient data from hospitals, doctors’ offices,
labs, pharmacies and other sources.
our part :: What WellPoint is doing to enhance health care quality
Collaborating to improve quality and safety. Anthem Blue Cross and Blue Shield has long been a
leader in the health benefits industry in collaborating with hospitals on extensive quality programs.
(Please see pages 16–17.) And approximately 15,000 physicians in Anthem Blue Cross and Blue Shield
networks receive a portion of their reimbursement for improving care to our members.
page 14 WellPoint, Inc.
17. For example, hospitals selected for Anthem Blue Cross and Blue Shield’s Coronary Services
Centers program in Indiana, Kentucky and Ohio must meet stringent clinical quality standards
for patient care and outcomes for certain cardiac procedures. Since the program’s inception
in Ohio more than 10 years ago, its hospitals in the state have seen a 38-percent decrease in
mortality rates.
Another pioneer in pay-for-performance, Blue Cross of California paid $57 million in bonus
payments to 134 medical groups in 2003 based on quality criteria. Blue Cross of California is
also a member of a coalition of six health plans that awarded $50 million in bonus payments to
215 physician groups in 2004 based on clinical benchmarks.
These types of programs have been expanded to other WellPoint companies. In general, we provide
incentives based on clinical measures that are widely accepted, improve with intervention, and
are known to improve quality of life. These range from preventive screenings to treating chronic
conditions such as asthma and high blood pressure. We also address quality from a consumer’s
perspective by quantifying member satisfaction and customer service.
Anthem Blue Cross and Blue Shield was recognized by the Blue Cross Blue Shield Association in
2004 for developing medical policy in collaboration with physicians. Our medical policy model
builds consensus with professionals on complex scientific issues. The first collaborative efforts
included national scientific forums that helped shape our medical policy on bariatric surgery
and bone marrow transplantation.
Supporting adoption of evidence-based care. A key benefit of the merger that created WellPoint, Inc.
is the opportunity to use our national database and combined information technology resources
to help make evidence-based medicine the standard of care for all.
We can aggregate statistics across our database while also protecting the privacy of each
individual. Then medical professionals can use sophisticated analysis to determine the best
course of treatment, based on the evidence of patient outcomes.
WellPoint, Inc. page 15
18. Patients often don’t receive recommended care ::
% of Recommended Care Received ::
Hypertension 64.7
Congestive Heart Failure 63.9
Colorectal Cancer 53.9
Asthma 53.5
Diabetes 45.4
Pneumonia 39.0
Hip Fracture 22.8
Overall 55.0
Source: Elizabeth A. McGlynn et al., RAND Health, 2003
our part :: quality care. Anthem Blue Cross and Blue Shield’s
Quality-in-Sights Hospital Incentive Program in Virginia rewards hospitals for improvements
in patient safety, patient health and patient satisfaction. The 16 hospitals that participated in the
first year of Q-HIP in 2004 are receiving a total of $6 million for actively working to implement
nationally recognized care and safety practices that can save lives. Q-HIP hospitals performed above
the national average on key measures. In 2005, 45 Virginia hospitals, which account for 75 percent of
Anthem member admissions in the state, participate in Q-HIP.
John E. Brush, Jr., M.D. (pictured in his office) chairs20the American College of Cardiology Virginia
0 10 30 40 50 60 70 80
Quality Leadership Council, and he helped develop the cardiac measures in the Q-HIP program. Dr. Brush
practices at Sentara Norfolk General Hospital, which was among the first participants in Q-HIP.
19.
20. improved health Health care in the United States faces growing
challenges from an aging population, chronic diseases and unhealthy lifestyles.
WellPoint is addressing these challenges by providing members with information
and support to help them be as healthy as they can be.
the challenge :: Go beyond improving health care to improving health
Our nation’s success in helping people live longer is creating new challenges for the health care
system. As the graph on page 20 clearly shows, the number of Americans over age 65 is going
to rise dramatically in the next 25 years, increasing demand for health care resources. The
Federal Administration on Aging reports that individuals over 65 are hospitalized at over three
times the rate of younger individuals.
Chronic disease and unhealthy lifestyles are also increasing pressure on our health care resources.
Nearly one-third of Americans over age 20 are estimated to be obese. Studies have shown that
obesity increases the risk of developing a number of health conditions including diabetes,
asthma and congestive heart failure, and it significantly complicates other diseases.
As a result, there is a growing emphasis on helping people stay as healthy as they can. This creates
a new role for health benefits companies—to help people get more involved in their own health
care and to provide them support in taking more responsibility for their health. In particular, we
can meet their need for health information that they can find, understand and use.
our part :: What WellPoint is doing to improve the health of the people we serve
Helping members manage their chronic conditions. WellPoint companies identify members
who can benefit from assistance in managing chronic conditions such as diabetes, asthma and
heart failure. Proactive care management programs work closely with members who are at
highest risk from chronic illness. As a result, they are less likely to suffer serious problems that
require more extensive care. A study of one such program for our members in Connecticut,
Maine and New Hampshire found that the percentage of participants admitted to the hospital in
a given year declined from 23 percent to 9 percent in three years.
We have also found significant decreases in hospitalization for our UniCare members enrolled
in disease-related health improvement programs. Hospital days declined by 18 percent for
participating members with asthma and by 5 percent for those with congestive heart failure.
page 18 WellPoint, Inc.
21. Meeting the needs of the 7 percent of WellPoint members most at risk from chronic and complex
conditions accounts for 63 percent of our medical costs. By helping these members manage
their conditions, we not only help them live healthier lives, but also reduce health care costs to
keep premiums affordable.
Providing information for healthy decisions. WellPoint’s Healthy Parenting initiative is a
multi-faceted education effort to curb child and adolescent obesity, promote active lifestyles
and help people stop smoking.
Through Healthy Parenting, WellPoint supports communications initiatives that assist health
care and teaching professionals in educating our communities on prevention, detection and
management of health conditions. Examples of this kind of support are the “Healthy Habits
for Healthy Kids” guide (Please see pages 20–21.) and a doctor’s desktop reference tool for
counseling families with overweight children.
Through outreach and education efforts, Blue Cross of California reduced inappropriate emergency
room visits and increased primary care visits among members of the state’s Healthy Families
program served by Blue Cross. The Member Rewards Program, a partnership with Wal-Mart,
offers parents in the Healthy Families program a choice of gifts—thermometer, helmet set,
car seat, or heavy-duty first aid kit—for taking their children to annual doctor visits and getting
recommended immunizations.
The WellPoint family of companies offers programs and online tools to help members take control
of their health. Anthem Healthy Solutions is a group of programs promoting health education,
prevention, detection and management. Some programs are designed to improve members’
health by supporting healthy behaviors and lifestyles. Online tools help members make more
informed decisions about a medical diagnosis they’ve received, a recommended procedure or
the hospitals they may choose.
WellPoint, Inc. page 19
22. The elderly population will double in the next 25 years ::
Projected U.S. Population,
65+ Years of Age, 2000–2030
80
80
70
60
60
50
In Millions
40
40
30
20
20
10
0
0
2000 2010 2020 2030
Source: Federal Interagency Forum on Aging-Related Statistics
our part :: improved health. Students at Glenn Stephens
Elementary School (pictured in the school gym) are developing healthy habits. The school in
Madison, Wisconsin, offers parents an educational nutrition and physical activity guide called
“Healthy Habits for Healthy Kids.” The Blue Cross Blue Shield of Wisconsin Foundation made available
500,000 copies of the guide to be distributed through the Office of Governor Jim Doyle, the Wisconsin
Academy of Pediatrics Foundation and the Wisconsin Academy of Family Physicians Foundation.
Another 500,000 copies were distributed in Texas by UniCare, in partnership with the state Department
of Education.
WellPoint developed the guide with the American Dietetic Association in response to a federal
government study that reported a “communication shortfall” between physicians and families creates
a barrier to addressing childhood obesity. The guide helps health care and education professionals
counsel parents and families about proper nutrition and obesity.
23.
24. To our shareholders, customers and communities:
WellPoint, Inc. was launched on November 30, 2004, when we completed the merger of Anthem,
Inc. and WellPoint Health Networks Inc. Now we are moving forward to achieve our full potential
as the nation’s leading health benefits company.
We are building an organization that will be a recognized leader in improving the quality of
health care, introducing innovative products, and delivering world-class customer service. We
will define a new role for health benefits companies to help meet the challenges facing the
American health care system.
Building the New WellPoint
We are quickly integrating the tremendous resources that we have brought together. We have
put in place the structure and leadership of the new organization. By adopting best practices
and realizing synergies, we fully expect to build upon our outstanding results of recent years
and achieve even greater competitive advantage.
We’ve made a commitment to synergies of $150 million for 2005 and $250 million for 2006, and
we’re on track to meet that commitment. In addition, we will seize opportunities created by the
merger to increase our value to customers.
We are also committed to further reductions in administrative expenses as a percentage of revenue.
The size and scale of our new company allows us to spread administrative costs over a much
larger membership base, helping keep premiums affordable for our members. We continue to invest
in sophisticated tools that reduce administrative expense while improving customer service.
Innovation to Reach New Customers
WellPoint, Inc. unites two companies that have led the industry in attracting new members over
the past eight years. In 2004, our combined membership grew by almost 1.7 million medical
members, or by 6.4 percent on a comparable basis to 2003.
Helping to drive our growth are innovative products that make coverage affordable, available
and attractive to more people and to companies of all sizes. One example is our new Tonik suite
page 22 WellPoint, Inc.
25. “
Our merger expands our opportunities to implement innovative
products in our markets across the country, based on our strong
local presence and knowledge of local customer needs. Clearly,
product innovation provides a great growth opportunity for us to
develop better health care options for more Americans.”
of products, which is featured in this report. Approximately 70 percent of Tonik members are in
the targeted 19- to 29-year-old age range, and 70 percent were previously uninsured.
Our Blue Access Economy plan, introduced in December 2004, is designed to provide a solid
foundation of basic health coverage, including a range of deductible options, a prescription
drug card and office visit co-payments. To date, 45 percent of new members in this plan had
been uninsured.
We are also attracting new members through our consumer-directed health plans, which are
integrated into tax-advantaged Health Savings Accounts, or HSAs. We support our HSA products
with Internet-based tools that help our members make informed decisions. One such tool helps
members estimate and compare the likely total cost for different treatment plans.
Additionally, we are offering new Medicare products, such as SmartValue—the first Medicare
Advantage private fee-for-service plan in California. SmartValue is unique among Medicare Advantage
plans because enrollees may choose any doctor or specialist who accepts Medicare payment
and agrees to the terms and conditions of the plan.
Our merger expands our opportunities to implement innovative products in our markets across
the country, based on our strong local presence and knowledge of local customer needs. Clearly,
product innovation provides a great growth opportunity for us to develop better health care
options for more Americans.
Information to Transform Health Care
In the new WellPoint, we wanted to create a company that can catalyze significant improvements
in health care. In our nation’s public/private health care system, health benefits companies are
well-positioned to harness the power of information in order to transform care.
We compile medical data across the entire system—hospitals, doctors’ offices, pharmacies, and labs.
We translate that data into meaningful information for consumers and health care professionals
while protecting members’ privacy. We can provide cost and performance information that
WellPoint, Inc. page 23
26. pictured from left to right
Leonard D. Schaeffer
Chairman of the Board
Larry C. Glasscock
President and Chief Executive Officer
consumers can use to consider their health care options. We can provide information on
outcomes and best practices that physicians can apply to decisions on patient care.
For example, as a result of emerging concerns about the COX-2 class of drugs, we reviewed our
health care and prescriptions claims databases to identify potential issues within our own member
population. We believe our data indicate that for our members age 40 and older, the use of
COX-2 drugs shows an increased risk of a heart attack or stroke.
WellPoint has shared this information with the Food and Drug Administration. We have also sent
letters with this information to members and physicians. This study demonstrates how we can
use clinical information from our claims databases to improve the health of our members and
the quality of health care.
Achieving the full potential of these techniques requires a broad, national patient database, the
financial resources to invest in large and complex information technology systems, and the
market presence to help drive the design and adoption of systems and standards. Achieving
greater scale in these areas is one reason why we created the new WellPoint.
Investment to Lead Change
Our overarching philosophy is that health benefits companies can be a catalyst for positive
change and can reach beyond the needs of their own membership to address broader health
issues. We must make the investments necessary to drive change.
We will make those investments to advance three key goals: First, we have to accelerate the
transition to a technology-based system that provides information for physicians and patients to
make more informed decisions. Second, we must make evidence-based medicine the standard
of care. Third, we have to engage consumers in their health care and in maintaining their own
good health.
We believe that such investments reflect our responsibility as the nation’s leading health benefits
company. Both Anthem and WellPoint had strong traditions of philanthropic support to expand
access to quality health care. The new WellPoint will carry on that legacy through our foundations
page 24 WellPoint, Inc.
27. and corporate giving programs that contributed more than $14 million in our communities
in 2004. We will continue to make investments that drive change in health care and accelerate
adoption of 21st Century information technology to improve health.
We are deeply grateful to our Board of Directors for their leadership in bringing together
two great companies. We thank Roger Birk, William Hart, James McDowell, Jr., John Sherman,
and Dennis Sullivan, Jr. for their years of service on the boards of Anthem, Inc. and WellPoint
Health Networks Inc. We also want to acknowledge Allan Hubbard, who served on the board
of WellPoint, Inc. until his appointment as director of the National Economic Council at
The White House in January 2005.
The leadership team of the new WellPoint represents the best in the industry. Our managers are
extremely talented and experienced, and we’re very pleased with how well our new team has
come together.
More than 38,000 WellPoint associates have remained focused on serving our customers through
the past year and a half as we worked to complete our merger and build our new organization.
To our associates, thank you for your unfailing commitment to improving the health of the people
we serve.
As the nation’s leading health benefits company, we see part of our role as helping to make
our health care system work better for everyone. For Americans seeking affordable, quality
health care, WellPoint will be part of the solution.
Leonard D. Schaeffer Larry C. Glasscock
Chairman of the Board President and Chief Executive Officer
WellPoint, Inc. page 25
28. WellPoint at a glance
WellPoint, Inc. is the nation’s leading health benefits company. More than 38,000 WellPoint
associates serve nearly 28 million medical members through the individual, small group, large
group, national accounts, senior, and state-sponsored customer segments.
No other health benefits company has leading local market presence in so many geographic
areas. WellPoint, Inc. is an independent licensee of the Blue Cross Blue Shield Association and
serves its members as the Blue Cross licensee for California and the Blue Cross and Blue Shield
licensee for Colorado, Connecticut, Georgia, Indiana, Kentucky, Maine, Missouri (excluding
30 counties in the Kansas City area), Nevada, New Hampshire, Ohio, Virginia (excluding the
Northern Virginia suburbs of Washington, D.C.), and Wisconsin.
We also serve members through UniCare and HealthLink. UniCare serves medical members
nationwide with innovative, high-quality health care plans and products. HealthLink is one of the
largest managed care networks in the central United States and also operates two prominent
networks in the Mid-Atlantic and Texas.
WellPoint’s specialty companies provide a full range of benefits and services to our health
plan customers, including pharmacy benefit management; vision, dental and behavioral health
benefits; group life and disability insurance benefits; workers’ compensation; and long-term
care insurance.
WellPoint is the nation’s second-largest Medicare contractor. In 2004, our combined operations
handled more than 113 million Medicare claims. WellPoint companies administer Medicaid and
children’s health programs in a number of states. In fact, Blue Cross of California is the largest
Medicaid managed care provider in the United States.
WellPoint has established one of the most significant social legacies in American industry
with the creation or funding of charitable foundations in many states we serve. Today, these
independent foundations have assets of more than $6 billion. In addition, Anthem, Inc. and
WellPoint Health Networks Inc. established corporate foundations that today have total assets
of over $150 million. Through our foundations and corporate giving programs, we contributed a
total of $14 million in 2004.
29. Financial Highlights
The information presented below is as reported in WellPoint’s 2004 Annual Report on Form 10-K. On November 30, 2004,
Anthem, Inc. acquired WellPoint Health Networks Inc., and Anthem, Inc. changed its name to WellPoint, Inc. Accordingly,
2004 financial results include operations of the former Anthem, Inc. for the full year, and also include operations of the
former WellPoint Health Networks Inc. for the one month ended December 31, 2004. Financial highlights for 2003 and 2002
include only operations of the former Anthem, Inc. and reflect the acquisition of Trigon Healthcare, Inc. on July 31, 2002.
% Change % Change
2004 vs. 2003 2003 vs. 2002 2002
(dollars in millions, except per share data)
Operating Results
$20,460.9
Total operating revenue 24% $16,487.1 27% $13,000.4
20,815.1
Total revenue 24% 16,781.4 26% 13,292.2
960.1
Net income 24% 774.3 41% 549.1
Earnings Per Share
$ 6.29
Basic net income 12% $ 5.60 21% $ 4.61
6.10
Diluted net income 12% 5.45 21% 4.51
Balance Sheet Information
$39,738.4
Total assets 196% $13,414.6 8% $12,416.3
20,279.4
Total liabilities 173% 7,414.7 5% 7,054.0
19,459.0
Total shareholders’ equity 224% 5,999.9 12% 5,362.3
Medical Membership (000s)
9,649
Central 70% 5,688 9% 5,234
8,655
West 822% 939 12% 836
5,962
Southeast 121% 2,700 6% 2,549
2,546
Northeast (2)% 2,600 7% 2,434
916
Wisconsin — — — —
27,728
Total 132% 11,927 8% 11,053
Note 1: The information presented above should be read in conjunction with the audited consolidated financial statements and accompanying notes and
Management’s Discussion and Analysis of Financial Condition and Results of Operations included in WellPoint’s 2004 Annual Report on
Form 10-K.
Note 2: Certain prior year amounts have been reclassified to conform to current year presentation.
Total Medical Membership
Total Medical Membership Selling, General and
Total Medical Membership
Total Revenue
ue
(in Millions)
(in Millions) Billions) Administrative Expense Ratio
(in Millions)
(in
)
19.3% 18.8%20
30
27.7
20
30
27.7 27.7
17.0%
$20.8
$20.8
25
25
15 15
$16.8
20
20
$13.3
15 10
15 10
11.9
11.9 11.9 11.1
11.1 11.1
10
10
5 5
5
5
0 0
0 0
2004 2004 2004
2002 2003
2004 2002 2002
2003 2003
2004 2004
2002 2003 2002 2003
WellPoint, Inc. page 27
30. Consolidated Balance Sheets
December 31
2003
2004
(in millions, except share data)
Assets
Current assets:
Investments available-for-sale, at fair value $ 6,849.0
$ 13,586.9
Cash and cash equivalents 464.5
1,457.2
Premium and self-funded receivables 690.3
1,574.6
Other receivables 325.7
876.4
Securities lending collateral —
658.5
Deferred tax assets, net —
434.0
Other current assets 445.6
769.9
Total current assets 8,775.1
19,357.5
Long-term investments 164.7
748.1
Property and equipment 510.5
1,045.2
Goodwill 2,450.1
10,017.9
Other intangible assets 1,227.0
8,211.6
Other noncurrent assets 287.2
358.1
Total assets $13,414.6
$ 39,738.4
Liabilities and shareholders’ equity
Liabilities
Current liabilities:
Policy liabilities:
Medical claims payable $ 1,841.7
$ 4,202.0
Reserves for future policy benefits 18.4
145.0
Other policyholder liabilities 501.9
1,209.5
Total policy liabilities 2,362.0
5,556.5
Unearned income 411.1
1,046.6
Accounts payable and accrued expenses 900.5
2,222.1
Income taxes payable 469.5
418.8
Security trades pending payable —
84.4
Securities lending payable —
658.5
Other current liabilities 632.1
1,583.7
Total current liabilities 4,775.2
11,570.6
Long-term debt 1,662.8
4,276.7
Reserves for future policy benefits, noncurrent 375.5
727.2
Deferred income taxes 200.8
2,596.4
Other noncurrent liabilities 400.4
1,108.5
Total liabilities 7,414.7
20,279.4
Shareholders’ equity
Preferred stock, without par value, shares authorized—100,000,000;
shares issued and outstanding—none —
—
Common stock, par value $0.01, shares authorized—900,000,000;
shares issued and outstanding: 2004, 302,626,708; 2003, 137,641,034 1.4
3.0
Additional paid in capital 4,708.7
17,433.6
Retained earnings 1,154.3
1,960.1
Unearned stock compensation (3.2)
(83.5)
Accumulated other comprehensive income 138.7
145.8
Total shareholders’ equity 5,999.9
19,459.0
Total liabilities and shareholders’ equity $13,414.6
$ 39,738.4
The information presented above should be read in conjunction with the audited consolidated financial statements and accompanying notes included in
WellPoint’s 2004 Annual Report on Form 10-K.
page 28 WellPoint, Inc.
31. Consolidated Statements of Income
Year ended December 31
2003 2002
2004
(in millions, except per share data)
Revenues
Premiums $15,167.7 $11,937.9
$ 18,771.6
Administrative fees 1,160.2 946.8
1,436.9
Other revenue 159.2 115.7
252.4
Total operating revenue 16,487.1 13,000.4
20,460.9
Net investment income 278.1 260.7
311.7
Net realized gains on investments 16.2 31.1
42.5
16,781.4 13,292.2
20,815.1
Expenses
Benefit expense 12,254.5 9,821.9
15,387.8
Selling, general and administrative expense
Selling expense 411.2 308.0
537.2
General and administrative expense 2,686.3 2,207.1
2,940.5
Total selling, general and administrative expense 3,097.5 2,515.1
3,477.7
Cost of drugs 38.7 24.0
95.0
Interest expense 131.2 98.5
142.3
Amortization of other intangible assets 47.6 30.2
61.4
Merger-related undertakings — —
61.5
Loss on repurchase of debt securities — —
146.1
15,569.5 12,489.7
19,371.8
Income before income taxes 1,211.9 802.5
1,443.3
Income taxes 437.6 253.4
483.2
Net income $ 774.3 $ 549.1
$ 960.1
Net income per share
Basic $ 5.60 $ 4.61
$ 6.29
Diluted $ 5.45 $ 4.51
$ 6.10
The information presented above should be read in conjunction with the audited consolidated financial statements and accompanying notes included in
WellPoint’s 2004 Annual Report on Form 10-K.
WellPoint, Inc. page 29
32. Consolidated Statements of Cash Flows
Year ended December 31
2003 2002
2004
(in millions)
Operating activities
Net income $ 774.3 $ 549.1
$ 960.1
Adjustments to reconcile net income to net cash
provided by operating activities:
Net realized gains on investments (16.2) (31.1)
(42.5)
Loss on repurchase of debt securities — —
146.1
Depreciation and amortization, net of accretion 245.0 157.0
279.1
Deferred income taxes (26.7) (22.4)
(103.4)
Loss on sale of property and equipment 0.4 2.2
0.8
Changes in operating assets and liabilities,
net of effect of business combinations:
Receivables, net (201.8) 126.7
(1.3)
Other assets (141.7) (317.9)
(89.9)
Policy liabilities 104.7 227.4
25.6
Unearned income 84.6 47.7
34.0
Accounts payable and accrued expenses 61.0 15.6
191.6
Income taxes payable 152.0 104.5
(125.5)
Other liabilities 123.4 135.3
28.5
Net cash provided by operating activities 1,159.0 994.1
1,303.2
Investing activities
Purchases of investments (5,136.3) (5,062.8)
(7,249.3)
Proceeds from sales or maturities of investments 4,115.0 4,546.2
7,227.3
Purchases of subsidiaries, net of cash acquired (3.5) (789.6)
(2,239.9)
Proceeds from sale of subsidiaries, net of cash sold (3.1) 0.9
—
Proceeds from settlement of cash flow hedges — —
15.7
Proceeds from sale of property and equipment 9.4 13.7
9.1
Purchases of property and equipment (110.7) (123.3)
(136.8)
Net cash used in investing activities (1,129.2) (1,414.9)
(2,373.9)
Financing activities
Proceeds from commercial paper borrowings — —
793.2
Proceeds from long-term borrowings — 938.5
1,770.2
Payments on long-term borrowings (100.0) —
(798.5)
Proceeds from issuance of common stock under
Equity Security Units stock purchase contracts — —
230.0
Repurchase and retirement of common stock (217.2) (256.2)
(82.2)
Proceeds from employee stock purchase plan and
exercise of stock options 57.0 31.1
159.0
Costs related to the issuance of common stock for
WellPoint Health Networks Inc. merger and
Trigon Healthcare, Inc. acquisition — (4.1)
(8.3)
Net cash provided by (used in) financing activities (260.2) 709.3
2,063.4
Change in cash and cash equivalents (230.4) 288.5
992.7
Cash and cash equivalents at beginning of year 694.9 406.4
464.5
Cash and cash equivalents at end of year $ 464.5 $ 694.9
$ 1,457.2
The information presented above should be read in conjunction with the audited consolidated financial statements and accompanying notes included in
WellPoint’s 2004 Annual Report on Form 10-K.
page 30 WellPoint, Inc.
33. Corporate Information
Individual Shareholders
Corporate Headquarters
WellPoint, Inc.
WellPoint, Inc.
Shareholder Services Department
120 Monument Circle
120 Monument Circle
Indianapolis, IN 46204-4903
Indianapolis, IN 46204-4903
www.wellpoint.com
(800) 985-0999 (toll-free)
E-mail: shareholder.services@wellpoint.com
Account Questions
Our transfer agent, EquiServe, can help you with a
Annual Meeting
variety of shareholder-related services, including:
The annual meeting of shareholders of WellPoint,
Change of address
Inc. will be held on May 10, 2005, at WellPoint’s
Transfer of stock to another person
headquarters, 120 Monument Circle,
Lost stock certificates
Indianapolis, IN.
Additional administrative services
Please include your name, address and telephone
Market Price of Common Stock
number with all correspondence, and specify the
The Company’s common stock, par value $0.01 per
most convenient time to contact you.
share, is listed on the New York Stock Exchange
(NYSE) under the symbol WLP. On March 1, 2005,
You can call EquiServe toll-free at:
the closing price on the NYSE was $121.88. As of
(866) 299-9628 Monday–Friday,
March 1, 2005, there were 166,845 shareholders of
excluding holidays,
record of the common stock. The following table
9 a.m.–5 p.m. Eastern Time
shows high and low sales prices for the common
Written correspondence can be sent to:
stock on the NYSE for the periods indicated.
WellPoint Shareholder Services
High Low
2004
c/o EquiServe Trust Company, N.A.
P.O. Box 43037 First Quarter $ 92.13 $ 72.50
Providence, RI 02940-3037 Second Quarter 95.60 83.85
E-mail: wellpoint@equiserve.com Third Quarter 93.90 77.76
Fourth Quarter 117.70 72.20
Investor and Shareholder Information
2003
Shareholders may receive, without charge, a
copy of WellPoint’s Annual Report on Form 10-K, First Quarter $ 67.13 $ 53.00
including financial statements, as filed with the Second Quarter 82.90 63.80
Securities and Exchange Commission (which Third Quarter 82.00 66.01
is WellPoint’s Annual Report to Shareholders). Fourth Quarter 77.96 64.75
WellPoint’s Summary Annual Report and other
information are also available on WellPoint’s Dividends
Investor Relations website at www.wellpoint.com. WellPoint, Inc. has not to date paid cash dividends
To request a Summary Annual Report, Form 10-K on common stock. The declaration and payment
or additional information, please choose from one of future dividends will be at the discretion of the
of the following: Board of Directors.
Institutional Investors
WellPoint, Inc.
Investor Relations Department
120 Monument Circle
Indianapolis, IN 46204-4903
(317) 488-6390
E-mail: tami.durle@wellpoint.com
WellPoint, Inc. page 31
34. Board Committees and Executive Leadership
Board Committees Executive Leadership
Audit Committee Larry C. Glasscock Rebecca A. Kapustay (3)
Victor S. Liss, Chairman President and President and CEO Blue Cross
Warren Y. Jobe Chief Executive Officer Blue Shield of Wisconsin and
William G. Mays Corporate Executive Vice
Mark L. Boxer
Ramiro G. Peru President
Executive Vice President and
George A. Schaefer, Jr.
Randall J. Lewis
Chief Strategy Officer
Compensation Committee Senior Vice President
Angela F. Braly (1)
William J. Ryan, Chairman Internal Audit and
Executive Vice President,
Sheila P. Burke Chief Compliance Officer
General Counsel and
Jane G. Pisano
Samuel R. Nussbaum, M.D.
Chief Public Affairs Officer
Senator Donald W. Riegle, Jr.
Executive Vice President and
Jackie M. Ward
Randal L. Brown Chief Medical Officer
Senior Vice President,
Executive Committee
Ronald J. Ponder, Ph.D.
Human Resources
Leonard D. Schaeffer, Chairman
Executive Vice President and
Victor S. Liss
David C. Colby Chief Information Officer
L. Ben Lytle
Executive Vice President and
William J. Ryan
Alice F. Rosenblatt
Chief Financial Officer
Jackie M. Ward
Executive Vice President
Marjorie W. Dorr Integration Planning/
Planning Committee
President and CEO Implementation and Chief
L. Ben Lytle, Chairman
Northeast Region and Actuary
Lenox D. Baker, Jr., M.D.
Corporate Executive Vice
William H.T. Bush
Thomas G. Snead, Jr.
President
Leonard D. Schaeffer
President and CEO
Keith R. Faller Southeast Region and
Governance Committee President and CEO Central Corporate Executive Vice
Jackie M. Ward, Chairperson Region and Corporate Executive President
Susan B. Bayh Vice President
Julie A. Hill John S. Watts
Senator Donald W. Riegle, Jr. David R. Frick(2) President and CEO
Elizabeth A. Sanders Executive Vice President and National Accounts and
Chief Legal and Corporate Executive Vice
Administrative Officer President
David S. Helwig Denny M. Weinberg
President and CEO West Region President and CEO
and Corporate Executive Vice Arcus Enterprises
President
Joan E. Herman
President and CEO Specialty,
Senior and State-Sponsored (1) Appointment effective April 1, 2005
Business and Corporate (2) Retirement effective July 1, 2005
Executive Vice President (3) Retirement effective April 1, 2005
page 32 WellPoint, Inc.
35. WellPoint, Inc. Board of Directors
Leonard D. Schaeffer Julie A. Hill Jane G. Pisano, Ph.D.
Chairman of the Board Former President and Owner President and Director
WellPoint, Inc. Hiram-Hill Development The Natural History Museum of
Company Los Angeles County
Larry C. Glasscock
Warren Y. Jobe Senator Donald W. Riegle, Jr.
President and
Chief Executive Officer Former Senior Vice President Chairman
WellPoint, Inc. Southern Company APCO Government Affairs
Lenox D. Baker, Jr., M.D. Victor S. Liss William J. Ryan
President Vice Chairman Chairman, President and
Mid-Atlantic Cardiothoracic Trans-Lux Corporation Chief Executive Officer
Surgeons, Ltd. Banknorth Group, Inc.
L. Ben Lytle
Susan B. Bayh Elizabeth A. Sanders
Chairman and CEO
Attorney at Law AXIA Health Management, LLC Principal
The Sanders Partnership
Sheila P. Burke William G. Mays
George A. Schaefer, Jr.
Deputy Secretary and President and
Chief Operating Officer Chief Executive Officer President and
Smithsonian Institution Mays Chemical Company Chief Executive Officer
Fifth Third Bancorp
William H.T. Bush Ramiro G. Peru
Jackie M. Ward
Chairman Executive Vice President and
Bush O’Donnell & Co., Inc. Chief Financial Officer Outside Managing Director
Phelps Dodge Corporation Intec Telecom Systems
designed by curran & connors, inc. / www.curran-connors.com
Seated, left to right: L. Ben Lytle, Susan B. Bayh, Larry C. Glasscock, William H.T. Bush, Jane G. Pisano, Ph.D.
Standing, left to right: Julie A. Hill, Ramiro G. Peru, Sheila P. Burke, George A. Schaefer, Jr., Senator Donald W. Riegle, Jr., Warren Y. Jobe,
Leonard D. Schaeffer, William J. Ryan, Elizabeth A. Sanders, Jackie M. Ward, Lenox D. Baker, Jr., M.D., Victor S. Liss, William G. Mays