Anthem Blue Cross 2001 Annual Report Download - page 30

Membership
Same
Total BCBS-ME Store Total
2000 Acquisition 2000 1999 Change % Change %
(In Thousands)
Segment
Midwest 4,582 ––4,582 4,382 200 5% 200 5%
East 2,093 487 1,606 1,397 696 50 209 15
West 595 ––595 486 109 22 109 22
Total 7,270 487 6,783 6,265 1,005 16% 518 8%
Customer Type
Local Large Group 2,634 278 2,356 2,249 385 17% 107 5%
Small Group 775 62 713 637 138 22 76 12
Individual 650 84 566 586 64 11 (20) (3)
National accounts12,468 32 2,436 2,106 362 17 330 16
Medicare + Choice 106 ––106 96 10 10 10 10
Federal Employee Program 407 31 376 362 45 12 14 4
Medicaid 102 ––102 100 2 2 2 2
Total without TRICARE 7,142 487 6,655 6,136 1,006 16 519 8
TRICARE 128 ––128 129 (1) (1) (1) (1)
Total 7,270 487 6,783 6,265 1,005 16% 518 8%
Funding Type
Fully insured 3,789 360 3,429 3,354 435 13% 75 2%
Self-funded 3,481 127 3,354 2,911 570 20 443 15
Total 7,270 487 6,783 6,265 1,005 16% 518 8%
1Includes BlueCard members of 1,320 as of December 31, 2000, and 974 as of December 31, 1999.
Same-store membership increased 518,000, or 8%, from 1999 to 2000, primarily due to growth in National
business, including a significant increase in enrollment in BlueCard programs. The 76,000, or 12%,
growth in Small Group business in 2000 reflects our initiatives to increase Small Group membership,
including revised commission structures, product offerings, brand promotion and enhanced relationships
with our brokers.
Medicare + Choice membership increased mostly due to growth in Ohio, where many competitors have left
the market and we are one of the few remaining companies offering this product. We decided to remain in
selected markets for Medicare + Choice in Ohio because we believe that with a critical mass of membership
in those markets we can achieve satisfactory results. We withdrew from the Medicare + Choice program in
Connecticut effective January 1, 2001, due to losses in this line of business. At December 31, 2000,
membership in the Medicare + Choice program in Connecticut was 18,000.
Individual membership dropped primarily due to a reduction in Medicare Supplement business in our
Midwest region. This block of business, which has traditionally generated high profit margins, is shrinking
due to terminations of grandfathered policies, primarily mortality related, exceeding new sales. Effective on
January 1, 1992, the Center for Medicare and Medicaid Services, or CMS, then known as the Health Care
Financing Administration, or HCFA, required that new sales of Medicare Supplement coverages be sold in
the form of one of 10 standardized policies, while persons with existing Medicare Supplement coverages
could retain their existing Medicare Supplement products, which generally had higher profit margins than
the new products. Since that time, our Medicare Supplement membership has, through terminations
of grandfathered policies and sales of new policies, reached the point where at December 31, 2000,
approximately 50% of our Medicare Supplement membership in the Midwest was in the old plans and
50% in the new plans. During 2001, we introduced a line of competitive Medicare Supplement policies in
the Midwest to improve the growth of this business and we modified the premium rate structures to
improve the attractiveness of these products in the marketplace.
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Total Same Store