Anthem Blue Cross 2013 Annual Report Download - page 4

2013 Annual Report
Company (continued)
CEO LETTER COMMUNITY FINANCIAL INFORMATION CORPORATE INFORMATION
STRATEGIC INVESTMENTS
We have entered a dynamic period in health care. The Aordable Care
Act is presenting challenges and opportunities for the industry, and
WellPoint has positioned itself to embrace this evolution by preparing
and investing for future growth across our company. We have invested
more than $150 million preparing for the new Health Insurance
Marketplace, studied preferences of tens of thousands of consumers
and businesses, and partnered with thousands of retail locations, local
agents and online channels to expand information and access. Our
geographic reach, which spans 14 states, includes more uninsured
people than any other health benefits company, particularly in rural
areas, which is essential to access.
An integral component of our strategy includes the continually growing
public and government programs market. WellPoint subsidiary
Amerigroup is now a fully integrated part of the company’s
Government Business Division and has bolstered its footprint. In 2013,
it expanded its Medicaid business in Florida, Georgia, Kansas, New
Jersey, Tennessee and Washington and our Medicaid business now
serves nearly 4.5 million beneficiaries in 19 states, making WellPoint the
nation’s leading provider of health care solutions for public programs.
Roughly two-thirds of the population in the primary states in which we
operate have incomes that make them eligible for either Aordable
Care Act subsidies or Medicaid. Our investment in Amerigroup and its
growth positions WellPoint for success in this market.
Additionally, WellPoint is one of the largest benefit providers for
seniors, and our National Government Services subsidiary continues
to be a trusted partner of the government, providing support services
for the federal Medicare program. While faced with challenges of
Medicare reimbursement, we are encouraged by the increasing num-
ber of baby boomers aging into the Medicare system.
SOLID FINANCIAL PERFORMANCE
In 2013, WellPoint reported four solid quarters of earnings and a con-
tinuation of positive business momentum developed across the orga-
nization. Operating revenue increased by $9.7 billion, or 16 percent,
during 2013 to $70.2 billion. Additionally, earnings per share grew
slightly on a GAAP basis and by 13 percent on an adjusted basis to
$8.52.* Our 2013 operating revenue and adjusted earnings per share
results are both all-time records for WellPoint. Our strong presence in
government business is also key to accelerating our core earnings
power. Annual government business revenues have grown from $22
billion in 2012 to approximately $31 billion in 2013, and now represent
almost 45 percent of our consolidated revenue base.
The strong financial foundation, an expanded government business
footprint, and a leader embracing the challenges of a changing health
care industry have positioned WellPoint for continued success as
America’s valued health partner.
*Refer to form 10-K for reconciliation of adjusted to GAAP EPS.
Company Culture Connections
WP  A R—page 3