Anthem Blue Cross 2002 Annual Report Download - page 36

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MANAGEMENT’S DISCUSSION AND ANALYSIS
of Financial Condition and Results of Operations (Continued)
Anthem, Inc. 2002 Annual Report 31
Same-
Southeast Store Same- Same-
December December December December Store Store
31, 2002 31, 2002 31, 2002 31, 2001 Change % Change %
Segment (In Thousands)
Midwest 5,234 — 5,234 4,854 380 8% 380 8%
East 2,434 — 2,434 2,260 174 8 174 8
West 836 — 836 769 67 9 67 9
Same-Store 8,504 — 8,504 7,883 621 8 621 8
Southeast 2,549 2,549 — — 2,549 NM2——
Total 11,053 2,549 8,504 7,883 3,170 40% 621 8%
Customer Type
Local Large Group 3,867 971 2,896 2,827 1,040 37% 69 2%
Small Group 1,168 340 828 813 355 44 15 2
Individual 1,084 289 795 701 383 55 94 13
National Accounts13,951 656 3,295 2,903 1,048 36 392 14
Medicare + Choice 103 — 103 97 6 6 6 6
Federal Employee Program 677 227 450 423 254 60 27 6
Medicaid 203 66 137 119 84 71 18 15
Total 11,053 2,549 8,504 7,883 3,170 40% 621 8%
Funding Arrangement
Self-funded 5,617 1,166 4,451 4,052 1,565 39% 399 10%
Fully-insured 5,436 1,383 4,053 3,831 1,605 42 222 6
Total 11,053 2,549 8,504 7,883 3,170 40% 621 8%
1Includes BlueCard members of 2,419 as of December 31, 2002 (including 325 from our Southeast segment) and 1,626 as of December 31, 2001.
2NM = Not meaningful.
During the year ended December 31, 2002, total
membership increased approximately 3.2 million, or 40%,
primarily due to our acquisition of Trigon, which became
our Southeast segment. On a same-store basis, total mem-
bership increased 621,000, or 8%, primarily in National
Accounts, Individual and Local Large Group businesses.
The following discussion of membership changes between
periods excludes our Southeast members, which are iden-
tified separately in the table above.
National Accounts membership increased 392,000,
or 14%, primarily due to a significant increase in
BlueCard activity.
Individual membership increased 94,000, or 13%, with
the majority of this growth resulting from higher sales in our
under age 65 business in all segments due to the introduc-
tion of new, more affordable product designs and an overall
increase in consumer awareness of our product offerings.
Local Large Group membership increased 69,000, or
2%, primarily from sales to new fully-insured customers in
our Midwest segment. In our Midwest segment, this
growth was partially offset by a decrease in our self-funded
business primarily as a result of pricing actions taken to
better align our administrative fee revenue with costs of
administering this business.
Federal Employee Program membership increased
27,000, or 6%, primarily due to our concentrated effort to
serve our customers well, fewer competitors in the market
and new cost-effective product designs.
Medicaid membership increased 18,000, or 15%, pri-
marily due to the State of Connecticut’s broadening of
eligibility standards and increased promotion of its
Medicaid product.
Small Group membership increased 15,000, or 2%,
primarily in our Midwest segment.