Anthem Blue Cross 2003 Annual Report Download - page 4

page 2 ANTHEM, INC.
To our shareholders, customers and communities:
We are pleased to report to you that 2003 was another outstanding year at Anthem as we
continued to focus on meeting the needs of our customers and fulfilling our mission: to improve the
health of the people we serve. As a result, we:
•increased membership in our health plans;
•introduced new health benefits choices for customers;
•made significant gains in providing distinctive service to our customers; and
•continued to provide leadership nationally in collaborations with physicians and hospitals.
These collaborations are resulting in improved health for our members.
More Americans than ever chose Anthem for their health benefits as we ended 2003 with 11.9
million members, an increase of 874,000 over 2002. Our membership increased in all four geographic
regions and in all our major products. Our individual business for members under 65 years old
increased 22 percent, and our national accounts business increased 16 percent. Also during the year,
we introduced our newest product line—vision benefits—throughout the company as we continued
to evolve into a total health benefits company.
Our customer retention rate remains very high. We believe this strong showing reflects high
levels of customer satisfaction and loyalty, the value of our product offerings and the power of the
Blue Cross and Blue Shield brand…the most recognized and trusted brand in health benefits.
Even so, we know we must work hard every day to continue to meet the needs and expectations of
our members.
By meeting the needs of our members, operating revenue increased to $16.5 billion. Our net
income increased to $774.3 million.
Our pending merger with WellPoint Health Networks Inc., announced last fall, will create the
nation’s leading health benefits company. Subject to state regulatory and shareholder approvals, we
expect to complete this transaction by mid-2004. At that time we will be a Blue Cross or Blue Cross
and Blue Shield licensee in 13 states, serving nearly 27 million members across the United States—
from Maine to California.
As a result of the merger, our customers, health care professionals, communities and shareholders
will realize several important benefits. By spreading our administrative costs over a much larger
membership base, we will be able to keep our products and services more affordable for existing and