Anthem Blue Cross 2008 Annual Report Download - page 3

WELLPOINT, INC. 32 WELLPOINT, INC.
In 2008, WellPoint faced both company-specific
and broader economic challenges. No industry,
including health care, was immune from the effects
of a slowing national economy. The economic
environment also placed increased pressure on our
customers to tighten their own budgets, including
their health care expenditures. Even in the midst of
these challenges, WellPoint remained a profitable
and financially strong company.
We took swift and decisive actions to manage
our own challenges as well as to address external
factors throughout the year. In particular, we signifi-
cantly reduced our claims inventory levels, refreshed
our information technology strategy, and strengthened
our financial reserves. We have continued to effectively
manage our administrative expense costs as a percent-
age of revenue while making investments to grow our
business for the future. These actions contributed
to positive results for our customers. As an example,
our Member TouchPoint Measure scores were up
4.5 points in 2008 and our customer service metrics
continue to improve.
Increasing Shareholder Value in 2009
As the largest health benefits company in America by
membership, WellPoint holds a unique position within
the health care marketplace. We are well-equipped to
address the current challenges and capitalize on the
opportunities presented by the economy. Now more than
ever our customers are looking to us to create more
value for their health care benefits. We will continue
to focus on excelling at day-to-day operations for our
customers and will strive to exceed our operational
commitments and financial expectations.
We expect earnings per share growth in 2009
through innovative product offerings, disciplined pricing,
effective medical cost management and efficient capi-
tal management. We will continue investing for future
growth by delivering services that will help improve the
quality and affordability of health care for our customers
and ultimately lower our administrative cost structure.
Our national breadth and diverse membership
position us well for the current economic downturn as
we have multiple sources of revenue. As a Blue Cross
and/or Blue Shield licensee in 14 states, we have the
most recognizable brand in our industry and offer our
members unparalleled access to 82 percent of all physi-
cians and 94 percent of all hospitals in the United States
through the BlueCard® program. Our brand, access to
broad provider networks across the country and leading
presence in our markets deliver sustainable competi-
tive advantages.
There is a unifying urgency associated with achieving
responsible health care reform in America. WellPoint is
a leading advocate for responsible health care reform
and is actively involved in the discussions to address
quality, cost and coverage. I encourage you to review
page 26 of this report, where you will find a summary
of the four cornerstones of reform that we believe will
help improve quality, eliminate waste and optimize
costs in the health care system we all share.
Angela F. Braly
President and Chief Executive Officer
TO OUR SHAREHOLDERS, CUSTOMERS AND COMMUNITIES
WellPoint remains a profitable and
financially strong company – well
positioned to address the challenges
of our current economy and capitalize
on future opportunities. Our Corporate
Promise, “to simplify the connection
between health, care and value,” is our
commitment to improving the lives of
the 35 million members in our affiliated
health plans as well as the health of
the communities we serve.
Health. Care. Value.
Last year’s accomplishments and this year’s outlook
are important to discuss, but we must never lose focus
on the most important reason we’ve become the nation’s
preeminent health benefits company: our customers.
We’ve organized this year’s report around our Corporate
Promise, “to simplify the connection between health, care
and value,” because it describes the three areas where
our health plans partner with our customers, doctors and
hospitals. Each section includes examples of the prod-
ucts, services and strategies that simplify the health
care experiences for the 1 in 9 Americans we serve.
When you read this report, I encourage you to pay
particular attention to the people, including: Christine
Rubio-Puente, who makes a difference in the Health
of our communities through our Community Resource
Centers; Maria Garcia, a nurse case manager who helps
to ensure the proper Care of our members; and Dr. Mark
DeFrancesco, a physician in Connecticut who sees Value
in providing incentives for better patient care. They are
among the many talented employees and partners
helping us fulfill our promise each and every day.
Health. Care. Value. represents the foundation of
our promise to our customers. As we simplify their
connection, WellPoint will continue to lead our industry
while improving the lives of the people we serve and
the health of our communities.