Anthem Blue Cross 2002 Annual Report Download - page 45

MANAGEMENT’S DISCUSSION AND ANALYSIS
of Financial Condition and Results of Operations (Continued)
40 Anthem, Inc. 2002 Annual Report
The following table presents our membership count by segment, customer type and funding arrangement as of
December 31, 2001 and 2000, comparing total and same-store membership respectively. We define same-store member-
ship as our membership at a given period end in a segment or for a particular customer or funding type, after excluding
the impact of members obtained through acquisitions or lost through dispositions during such period. We believe that
same-store membership counts best capture the rate of organic growth of our operations period over period. The
membership data presented is unaudited and in certain instances includes estimates of the number of members
represented by each contract at the end of the period, rounded to the nearest thousand.
Same-
Store Same- Same-
December December TRICARE December Store Store
31, 2001 31, 2000 Disposition 31, 2000 Change % Change %
Segment (In Thousands)
Midwest 4,854 4,582 128 4,454 272 6% 400 9%
East 2,260 2,093 — 2,093 167 8 167 8
West 769 595 — 595 174 29 174 29
Total 7,883 7,270 128 7,142 613 8% 741 10%
Customer Type
Local Large Group 2,827 2,634 — 2,634 193 7% 193 7%
Small Group 813 775 — 775 38 5 38 5
Individual 701 650 — 650 51 8 51 8
National Accounts12,903 2,468 — 2,468 435 18 435 18
Medicare + Choice 97 106 — 106 (9) (8) (9) (8)
Federal Employee Program 423 407 — 407 16 4 16 4
Medicaid 119 102 — 102 17 17 17 17
Same-Store 7,883 7,142 — 7,142 741 10% 741 10%
TRICARE — 128 128 — (128) NM2——
Total 7,883 7,270 128 7,142 613 8% 741 10%
Funding Arrangement
Self-funded 4,052 3,481 — 3,481 571 16% 571 16%
Fully-insured 3,831 3,789 128 3,661 42 1 170 5
Total 7,883 7,270 128 7,142 613 8% 741 10%
1Includes BlueCard members of 1,626 as of December 31, 2001, and 1,320 as of December 31, 2000.
2NM = Not Meaningful.
During the year ended December 31, 2001, total mem-
bership increased 613,000, or 8%, primarily due to growth
in National Accounts business and Local Large Group,
including a significant increase in BlueCard activity. On a
same-store basis, membership increased 741,000, or 10%.
Local Large Group membership increased 193,000,
or 7%, with growth in all regions attributable to the
success of our PPO products, as more employer groups
desire the broad, open access to our networks provided by
these products.
The 38,000, or 5%, growth in Small Group business
reflects our initiatives to increase Small Group membership
through revised commission structures, enhanced product
offerings, brand promotion and enhanced relationships
with brokers.
Medicare + Choice membership decreased as we
withdrew from the Connecticut Medicare + Choice pro-
gram effective January 1, 2001. At December 31, 2000,
our Medicare + Choice membership in Connecticut
totaled 18,000. Offsetting this decrease was growth in our
Medicare + Choice membership in certain counties in
Ohio, where many competitors have left the market, leav-
ing us as one of the few remaining companies offering this
product. As of January 1, 2002, we exited the Colorado
Medicare + Choice market. Our 2001 membership count
included 6,000 Colorado Medicare + Choice members.