WellPoint 2004 Annual Report Download

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2004 Summar y Annual Report
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Table of contents

  • Page 1
    quality care :: improved health :: access :: :: access affordability :: part of the solution 2004 Summar y Annual Repor t

  • Page 2
    ..., Inc. was launched on November 30, 2004, with the merger of Anthem, Inc. and WellPoint Health Networks Inc. We serve nearly 28 million medical members nationwide. WellPoint, Inc. is an independent licensee of the Blue Cross Blue Shield Association in 13 states. We also serve members through...

  • Page 3
    ...quality of care, resources strained by chronic disease and unhealthy lifestyles. WellPoint is part of the solution. We work to make quality health ... the full potential of our nation's health care system. In this report, we address questions related to key health care challenges: affordability, access...

  • Page 4
    What is the cause of rising health insurance premiums? Premiums฀have฀risen฀to฀keep฀pace฀with฀the฀growing฀ cost฀and฀use฀of฀health฀care฀services.฀Key฀drivers฀include฀ the฀growing฀health฀care฀needs฀of฀an฀aging฀population,฀ the฀cost฀of฀new...

  • Page 5
    What can be done to provide health insurance for Americans who aren't covered? Educate฀those฀who฀can฀afford฀insurance฀on฀the฀ importance฀of฀having฀coverage฀and฀the฀availability฀of฀ affordable฀options-and฀develop฀new฀products฀to฀meet฀ their฀needs.฀...

  • Page 6
    ... can we afford to improve health care quality? Quality฀care฀can,฀and฀usually฀does,฀cost฀less.฀That's฀ why฀WellPoint's฀quality฀programs฀can฀provide฀increased฀ reimbursement฀to฀hospitals฀and฀physicians฀based฀in฀part฀ on฀achieving฀improved฀quality...

  • Page 7
    ... offer health improvement programs that add to administrative costs? Yes.฀WellPoint's฀health฀improvement฀programs-such฀as฀ helping฀members฀manage฀chronic฀disease-contribute฀ to฀our฀members'฀health.฀And฀while฀they฀may฀increase฀ administrative฀costs,฀such...

  • Page 8
    ...7 percent of Gross Domestic Product (GDP) in 1970 to over 15 percent in 2004-during a period when GDP has grown more than any other time in our nation... reported in 2000 that medical errors cost an estimated $38 billion annually. By collaborating with hospitals, physicians and page 6 WellPoint, Inc.

  • Page 9
    ...new prescription for an eligible generic medication. Members who have continued to use the generic drug have saved an average of $26.86 per prescription. WellPoint is also offering Medicare discount drug cards throughout each of our states. As of January 2005, we issued over 338,000 cards, making us...

  • Page 10
    ... 1970 '80 '90 '00 '01 '02 '03 '04* 2010* *Projected Source: Centers for Medicare and Medicaid Services our part :: affordability. WellPoint฀members฀are฀saving฀money฀and฀ trips฀to฀the฀pharmacy฀by฀using฀our฀pharmacy฀benefit฀management฀services.฀We฀operate฀mail...

  • Page 11

  • Page 12
    ...Ensure that all Americans can get the care they need The Census Bureau reports that there were 45 million uninsured persons in the United States in 2003,...patients to make health care work better for all. our part :: What WellPoint is doing to expand access to health care Reaching more people with a ...

  • Page 13
    ... reasons to buy coverage, and by providing more affordable options to more people, we can reduce the number of uninsured Americans. In 2004, WellPoint companies provided new individual policies to an estimated 375,000 people who had previously been uninsured. Finding ways to provide coverage to low...

  • Page 14
    The uninsured are not all alike :: Persons Without Health Insurance in the United States, 2003 :: Low-to-moderate income, not eligible for existing programs 36% 16 Million 31% 14 Million Eligible for coverage under existing government programs(1) 33% 15 Million In households with income > $50...

  • Page 15

  • Page 16
    ...wide variation in the quality of care that individuals receive. WellPoint is working with physicians and other health professionals to help ... harmful. Closing this gap is a real opportunity to save lives. A report by the National Committee for Quality Assurance found that 70,000 lives could ...

  • Page 17
    ... of six health plans that awarded $50 million in bonus payments to 215 physician groups in 2004 based on clinical benchmarks. These types of programs have been expanded to other WellPoint companies. In general, we provide incentives based on clinical measures that are widely accepted, improve with...

  • Page 18
    ...฀health฀and฀patient฀satisfaction.฀The฀16฀hospitals฀that฀participated฀in฀the฀ first฀ year฀ of฀ Q-HIP฀ in฀ 2004฀ are฀ receiving฀ a฀ total฀ of฀ $6฀ million฀ for฀ actively฀ working฀ to฀ implement฀ nationally฀recognized฀care฀and฀safety...

  • Page 19

  • Page 20
    ... from an aging population, chronic diseases and unhealthy lifestyles. WellPoint is addressing these challenges by providing members with information and support...demand for health care resources. The Federal Administration on Aging reports that individuals over 65 are hospitalized at over three times ...

  • Page 21
    ... of gifts-thermometer, helmet set, car seat, or heavy-duty first aid kit-for taking their children to annual doctor visits and getting recommended immunizations. The WellPoint family of companies offers programs and online tools to help members take control of their health. Anthem Healthy Solutions...

  • Page 22
    ...UniCare,฀in฀partnership฀with฀the฀state฀Department฀ of฀Education. WellPoint฀ developed฀ the฀ guide฀ with฀ the฀ American฀...฀ to฀ a฀ federal฀ government฀study฀that฀reported฀a฀"communication฀shortfall"฀between฀physicians฀and฀families฀creates฀ ...

  • Page 23

  • Page 24
    To our shareholders, customers and communities: WellPoint, Inc. was launched on November 30, 2004, when we completed the merger of Anthem, Inc. and WellPoint Health Networks Inc. Now we are moving forward to achieve our full potential as the nation's leading health benefits company. We are building...

  • Page 25
    ... of products, which is featured in this report. Approximately 70 percent of Tonik members are in... Our Blue Access Economy plan, introduced in December 2004, is designed to provide a solid foundation of basic...Information to Transform Health Care In the new WellPoint, we wanted to create a company that...

  • Page 26
    ... our data indicate that for our members age 40 and older, the use of COX-2 drugs shows an increased risk of a heart attack or stroke. WellPoint has shared this information with the Food and Drug Administration. We have also sent letters with this information to members and physicians. This study...

  • Page 27
    ... contributed more than $14 million in our communities in 2004. We will continue to make investments that drive change ...re very pleased with how well our new team has come together. More than 38,000 WellPoint associates have remained focused on serving our customers through the past year and a half as...

  • Page 28
    ... insurance benefits; workers' compensation; and long-term care insurance. WellPoint is the nation's second-largest Medicare contractor. In 2004, our combined operations handled more than 113 million Medicare claims. WellPoint companies administer Medicaid and children's health programs in a number...

  • Page 29
    ... Highlights The information presented below is as reported in WellPoint's 2004 Annual Report on Form 10-K. On November 30, 2004, Anthem, Inc. acquired WellPoint Health Networks Inc., and Anthem, Inc. changed its name to WellPoint, Inc. Accordingly, 2004 financial results include operations of the...

  • Page 30
    ... Total liabilities and shareholders' equity The฀information฀presented฀above฀should฀be฀read฀in฀conjunction฀with฀the฀audited฀consolidated฀financial฀statements฀and฀accompanying฀notes฀included฀in฀ WellPoint's฀2004฀Annual฀Report฀on฀Form฀10-K. page 28...

  • Page 31
    ... per share Basic Diluted The฀information฀presented฀above฀should฀be฀read฀in฀conjunction฀with฀the฀audited฀consolidated฀financial฀statements฀and฀accompanying฀notes฀included฀in฀ WellPoint's฀2004฀Annual฀Report฀on฀Form฀10-K. WellPoint, Inc. page 29

  • Page 32
    ... (8.3) 2,063.4 992.7 464.5 $ 1,457.2 The฀information฀presented฀above฀should฀be฀read฀in฀conjunction฀with฀the฀audited฀consolidated฀financial฀statements฀and฀accompanying฀notes฀included฀in฀ WellPoint's฀2004฀Annual฀Report฀on฀Form฀10-K.฀ page 30...

  • Page 33
    ...the NYSE for the periods indicated. 2004 First Quarter Second Quarter Third Quarter...WellPoint's Annual Report to Shareholders). WellPoint's Summary Annual Report and other information are also available on WellPoint's Investor Relations website at www.wellpoint.com. To request a Summary Annual Report...

  • Page 34
    ... Specialty, Senior and State-Sponsored Business and Corporate Executive Vice President (1) Appointment effective April 1, 2005 (2) Retirement effective July 1, 2005 (3) Retirement effective April 1, 2005 page 32 WellPoint, Inc.

  • Page 35
    ...Ph.D. President and Director The Natural History Museum of Los Angeles County Larry฀C.฀Glasscock President and Chief Executive Officer WellPoint, Inc. Warren฀Y.฀Jobe Former Senior Vice President Southern Company Senator฀Donald฀W.฀Riegle,฀Jr. Chairman APCO Government Affairs Lenox...

  • Page 36
    120 Monument Circle Indianapolis, IN 46204 www.wellpoint.com WLP-AR-05