INScompanies Blog

New consumer-driven health products to provide the information and incentives needed to improve health 

Indianapolis, Ind. —Aug. 22, 2006—Anthem Blue Cross and Blue Shield in Indiana, Kentucky, Ohio, Missouri and Wisconsin will soon offer new, innovative health plan options for employers and individuals that will change the way consumers think about health care, helping them to lead healthier lives while also helping them gain control over the rising cost of care. 

These consumer-driven health plans and services will be available starting January 1, 2007 (subject to regulatory approval):
 
Lumenos® Health Reimbursement Account
 
Lumenos Health Savings Account
 
Lumenos Health Incentive Account
 
Lumenos Health Incentive Account Plus

Although Anthem began offering high deductible health plans a few years ago, this new suite of Lumenos products will empower consumers as never before with health information, support tools, incentives and financial accounts to help them improve and maintain their health and wellness and better manage their health care costs. 

For example, when members complete an online health assessment, enroll in a program with a health coach, successfully complete a smoking cessation program or make other healthy lifestyle choices, they will receive tangible incentives and rewards under these health plans. These unique features, combined with Anthem’s network strength, innovative provider partnerships, local presence and powerful brand name will provide unparalleled value to consumers.

Anthem’s new consumer-driven health plan options combine an employee- and/or employer-funded health account with traditional PPO health coverage. Each is paired with powerful online decision support tools and personal health coaching that consumers can use to learn more about their health care treatment and cost options. This will create more informed, empowered consumers more directly involved in health care decisions. 

“Our goal with these new consumer-driven health plans and services is to improve the health of our members, which will also improve the efficiency of the health care system,” said Dennis Casey, president of Anthem Blue Cross and Blue Shield in Indiana. “This puts consumers in control of their health care dollars and gives them an incentive to spend wisely and demand better health care quality and value. This consumer movement, which is sweeping through all parts of the health care industry, represents a major change in the way we will interact with our customers.”

Research indicates consumers have a limited understanding of the cost of medical care. Six out of ten people, surveyed by Harris Interactive, who had received treatment for a serious health issue in the last two years did not know the cost until after treatment was received. 

“Anthem’s new consumer-driven products, which will be available to large and small businesses as well as to individuals (subject to regulatory approval), will make quality and cost data more accessible in order to create millions of better informed, more engaged health care consumers,” said Casey. 

Anthem is teaming up with Lumenos to offer these health plan options. Lumenos is a pioneer in the field of consumer-driven health products, with clients in all business sectors, including a growing number of Fortune 500 companies. 

Anthem Blue Cross and Blue Shield in Indiana is a subsidiary of WellPoint, Inc. (NYSE: WLP). WellPoint’s mission is to improve the lives of the people it serves and the health of its communities.  WellPoint, Inc. is the largest health benefits company in terms of commercial membership in the United States.  Through its nationwide networks, the company delivers a number of leading health benefit solutions through a broad portfolio of integrated health care plans and related services, along with a wide range of specialty products such as life and disability insurance benefits, pharmacy benefit management, dental, vision, behavioral health benefit services, as well as long term care insurance and flexible spending accounts.  Headquartered in Indianapolis, Indiana, WellPoint is an independent licensee of the Blue Cross and Blue Shield Association and serves its members as the Blue Cross licensee for California; the Blue Cross and Blue Shield licensee for Colorado, Connecticut, Georgia, Indiana, Kentucky, Maine, Missouri (excluding 30 counties in the Kansas City area), Nevada, New Hampshire, New York (as Blue Cross Blue Shield in 10 New York City metropolitan and surrounding counties and as Blue Cross or Blue Cross Blue Shield in selected upstate counties only), Ohio, Virginia (excluding the Northern Virginia suburbs of Washington, D.C.), Wisconsin; and through UniCare.  Additional information about WellPoint is available at www.wellpoint.com. 

For Immediate Release: August 22, 2006
Media contact: Tony Felts, 317-287-6036
Tony.Felts@anthem.com

Newly Combined Company Expands Role in Creating Affordable Quality Care

Indianapolis, IN and New York City, NY – December 28, 2005 – WellPoint, Inc. (NYSE: WLP) and WellChoice, Inc. (NYSE: WC) announced the completion of their merger today. The companies’ agreement to merge was announced September 27, 2005. Under the terms of the agreement, WellChoice stockholders will receive $38.25 in cash and WellPoint stock at a fixed exchange ratio of .5191 of a share of WellPoint stock for each share of WellChoice stock. The value of the transaction as of September 26, 2005, was approximately $6.5 billion.

“Our focus as a combined company is to become the most trusted choice for consumers and a leader in affordable quality care,” said Larry C. Glasscock, chairman, president and chief executive officer of WellPoint, Inc. “We will accomplish this through continuous innovation and investment in our products and services that enable consumers to make better informed health decisions and through working collaboratively with health care professionals in order to improve the safety and quality of care patients receive.”

Michael Stocker, M.D., president and chief executive officer of WellChoice, now serves as president and chief executive officer of the newly formed East Region of WellPoint. He has responsibility for business operations in New York, Connecticut, Georgia, Maine, New Hampshire and Virginia. He will also serve on WellPoint’s Executive Leadership Team and report to Glasscock.

“The completion of this merger is very good news for all of our constituencies as WellPoint is uniquely positioned to become the most valued company in our industry,” said Michael Stocker, M.D., president and chief executive officer of WellPoint’s East Region. “Our objective, within the new East Region and across our company, is to further build a highly customer-focused and efficient organization, based upon our local market expertise and our regional and enterprise best practices.”

WellPoint, Inc. now serves approximately 34 million medical members through its Blue Cross or Blue Cross and Blue Shield operations in 14 states and its non-Blue branded operations in other states. The company now has over 42,000 associates nationwide.

John E. Zuccotti, who served on the WellChoice Board of Directors, will now join the WellPoint Board. Zuccotti is currently the Chairman of Brookfield Financial Properties and Of Counsel at Weil, Gotshal & Manges LLP. A significant portion of his career has been in public service roles including serving as the First Deputy Mayor of the City of New York under Mayor Abraham D. Beame.

“We are delighted that John Zuccotti will be joining the WellPoint Board. We look forward to benefiting from his keen insights, deep track record of leadership and public service experience,” added Glasscock.

WellPoint, Inc. expects earnings in 2006 to reach approximately $4.51 per share. Approximately $25 million in synergies are expected to be realized in 2006 from the merger and at least $125 million in annual synergies are expected to be realized beginning in 2010. This transaction is expected to be neutral to 2006 earnings per share and accretive thereafter. Further details on 2006 guidance reflecting the impact of the WellChoice merger will be provided during the company’s fourth quarter earnings conference call.

Contacts:
Investor Relations
Tami Durle, (317) 488-6390
Media
Ed West, (317) 488-6100
Deborah Loeb Bohren, (212) 476-3552