Anthem Blue Cross 2005 Annual Report Download - page 10

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WellPoint, Inc. 2005 Summary Annual Report
8
In 2005, WellPoint provided health benefits to more Americans than any other company,
and we are on course for continued growth by focusing on our customers.
In our first full year of operations following the merger of Anthem, Inc. and
WellPoint Health Networks Inc. in November 2004, we successfully integrated two
large, national organizations, achieving our synergy goals while maintaining the high
quality of our service. We also completed the acquisition of WellChoice, Inc., the parent
company of Empire Blue Cross Blue Shield, the largest health insurer in New York.
With the addition of nearly 5 million WellChoice members, our enrollment was
33.9 million members at the end of 2005. The total also includes 1.2 million new
members we added during the year, an organic growth rate of 4.3 percent. As WellPoint
grew, we also achieved excellent financial results. Earnings per share were $3.94 in
2005, a 29 percent increase over 2004.
We continue to work to reduce administrative costs as a percentage of revenue, while
improving service to our customers. The selling, general and administrative (SG&A)
expense ratio improved to 16.3 percent for the full year 2005, from 17.0 percent in
2004, with a goal of 15.7 percent for 2006. Initiatives such as our “One Touch Service”
program in Virginia and Georgia have increased customer loyalty, satisfaction and value,
while reducing calls and thus costs.
our merger with wellchoice
We completed the acquisition of WellChoice on December 28, 2005. With this
acquisition we strengthen our leadership in providing health benefits to national
accounts, large employers with multi-state operations. This transaction gives us a
strategic presence in New York City, the headquarters of more Fortune 500 companies
than any other U.S. city. With Blue Cross or Blue Cross Blue Shield plans now in
14 states, we can offer large national employers our leading local presence in more
markets than any other health benefits company.
To our shareholders, customers
and communities: