Category Archives: Health Care: Insurance and Managed Care

WellPoint – Locations and Subsidiaries

Head Office

WellPoint Inc

120 Monument Circle



Indiana 46204


P:1 317 532 6000

F:1 317 488 6260

Other Locations and Subsidiaries

Cerulean Companies, Inc.

Blue Cross of California

3350 Peachtree Rd.

1 WellPoint Way

North East Atlanta

Thousand Oaks

Georgia 30326

California 91362-5035



Blue Cross and Blue Shield of Georgia

UNICARE Life & Health Insurance Company

3350 Peachtree Road N.E.

1350 Main St Ste 13



Georgia 30326

Massachusetts 01103-1664



WellPoint – Company View

A statement by Larry C Glasscock, Chairman of Wellpoint is given below. The statement has been taken from the company’s 2006 annual report.

One in every 10 Americans is a member of a WellPoint health plan. For us, that’s a tremendous privilege and responsibility.

We realize that each of those 34 million members — and every consumer we provide with vision and dental benefits, pharmacy benefit management, or other services — is an individual with unique health care needs. And we know that, as the nation’s leading health benefits company, we can take a lead role in making health care better.

In my letter last year, I introduced our comprehensive strategy to transform health care. As part of that strategy, we identified six aspirations for the future health care system, and those aspirations provide the framework for this report.What you can see in this report is that we have moved beyond aspiration to action, with initiatives well under way to achieve each of these goals. What you should also know is that we are tracking our progress with specific measures and annual targets — we are that committed to achieving our vision for a vastly improved health care system.

2006 performance highlights Our dedication to making WellPoint the most trusted choice for consumers and the leader in affordable quality care produced very good results in 2006 for customers and shareholders.

We achieved continued strong growth in our Anthem National Accounts business, which serves large, multi-state employers. We successfully introduced Medicare Part D products, reaching 1.6 million members by year-end. We also added to our leadership position in Medicaid managed care services, winning five new state contracts covering 500,000 people.

Earnings per share were $4.82 in 2006, a 22 percent increase over 2005. We also continued to make significant progress in reducing administrative costs as a percentage of revenue while improving service to our customers.

Innovative choices for health care consumers As you will read in the pages that follow, in 2006 we also launched innovative products and services that will help shape the future of health care. We are the first health benefits company to roll out an integrated portfolio of consumer-driven health plans (or CDHPs) across the country in all segments of the market, from individuals to large employers.

Consumers want to take a more active role in their health care, and we’re working to empower consumers in all of our products — not just our CDHP offerings.That includes providing information that’s understandable and useful to consumers about the cost and quality of their health care options. For example, we launched a comprehensive hospital cost comparison program in Dayton, Ohio.

Our members can compare total costs, including physicians’ fees, and quality measures for nearly 40 different procedures at 10 area hospitals.

Empowering consumers also means offering a trusted source of information and support to help them take better care of themselves. In 2006, we launched 360� Health, the industry’s most comprehensive approach to addressing health education, preventive care, well-being, health improvement and care coordination.

We reorganized our company in late 2006 around a nationwide, customer-focused strategy. We created a structure that capitalizes on WellPoint’s unique competitive advantage — the scale and scope to develop innovative products and programs for consumers, and the local leadership and knowledge to adapt those innovations to local markets across the country.

This approach will allow us to offer consumers from coast to coast an unparalleled choice of health care plans, and a full range of benefits and services — including specialty products such as life insurance and dental, vision and behavioral health benefits. It will also allow us to engage health care professionals in communities across the country in innovative programs to improve quality and reduce costs.

Transforming Health Care

Today, we’re well-positioned for future growth. But we’re focused on an even larger goal: to play a leading role in transforming health care in this country.

We believe that Americans want a health care system that offers them choices. And we believe that dramatically improving the public-private framework provides the best structure for meeting American consumers’ expectations for a vastly improved health care system and providing access for all Americans to quality health care.

My WellPoint colleagues and I have been working closely with partners in both the public and private sectors to find solutions to our nation’s health care challenges. We have met with the President, members of Congress, governors, and state and federal regulatory officials on such key issues as transparency, health information technology, health care quality, and the uninsured.

In the past two years, more than 750,000 previously uninsured Americans found health care security through one of our company’s individual products, but we recognize that a majority of the uninsured are currently unable to get coverage through the private market. In January 2007 we proposed a comprehensive, public-private partnership to help address this issue. The WellPoint Action Plan for the Uninsured aims to ensure universal coverage for children and provide new and more attractive options for the working uninsured. This plan reflects WellPoint’s mission to improve the lives of the people we serve and the health of our communities.

Leadership Transition

In February, I announced my decision to retire from the day-to-day operations of WellPoint, so that I can attend to the needs of my family. I will continue to serve as the Chairman of WellPoint’s Board of Directors.

I am very pleased that Angela Braly will become our new President and CEO, effective June 1. We are fortunate to have a leader of Angela’s caliber ready to assume the President and CEO position. Angela has been a trusted and valued colleague, partnering with me on many strategic initiatives undertaken by the company over the past two years. She brings the right combination of intellect, health policy knowledge, business experience and strategic vision.

In selecting Angela, the Board has demonstrated its faith in WellPoint’s strategy, performance, culture and leadership team. I want to thank the Board of Directors for their strategic vision and guidance.

I also want to thank our entire management team for their outstanding performance in serving our customers and building our company, and for their strong expression of support for Angela.

I’m thankful to our dedicated associates for their loyalty, spirit and commitment to excellence. And I’m grateful to our customers, shareholders, and business and community partners for their support over the years.

I have had the privilege of working as a WellPoint associate since 1998, and as the CEO since 1999. Our company has a very bright future with an excellent strategic road map to help us achieve our vision of transforming health care and becoming the most valued company in our industry. We are well on our way to achieving this vision.

Our goals for WellPoint are to be recognized as the most trusted choice for consumers and the leader in affordable quality care.

We know that achieving these goals will not be easy, and that there is still a great deal of work to do. But we believe that realizing our vision is possible. And we believe that a responsible industry leader should strive for nothing less.

WellPoint – Top Competitors

The following companies are the major competitors of WellPoint Inc.

  • Aetna Incorporated
  • Catholic Healthcare West
  • CIGNA Corporation
  • Health Net, Inc.
  • Kaiser Foundation Health Plan, Inc.
  • Oxford Health Plans, Inc.
  • Pacific Mutual Holding Company
  • PacifiCare Health Systems, Inc.
  • Humana Inc
  • Sierra Health Services
  • Guardian Life Ins. Co. of America
  • First Health Group Corp.
  • Coventry Health Care, Inc.
  • WellCare Health Plans, Inc
  • UnitedHealth Group
  • BioScrip, Inc
  • Express Scripts

WellPoint – Key Employees


Job Title


Angela F Braly

President and Chief Executive Officer

Executive Board

Larry C Glasscock


Non Executive Board

Lenox D Baker


Non Executive Board

Susan B Bayh


Non Executive Board

Sheila P Burke


Non Executive Board

William H T Bush


Non Executive Board

Julie A Hill


Non Executive Board

Warren Y Jobe


Non Executive Board

Victor S Liss


Non Executive Board

William G Mays


Non Executive Board

Ramiro G Peru


Non Executive Board

Jane G Pisano


Non Executive Board

Donald W Riegle


Non Executive Board

William J Ryan


Non Executive Board

George A Schaefer


Non Executive Board

Jackie M Ward


Non Executive Board

John E Zuccotti


Non Executive Board

Mark L Boxer

Executive Vice President and Chief Information Officer

Senior Management

Randy L Brown

Senior Vice President and Human Resources

Senior Management

Wayne S DeVeydt

President and Chief Executive Officer, West Region

Senior Management

Joan E Herman

President and Chief Executive Officer Specialty, Senior and State-Sponsored SBU

Senior Management

Randall J Lewis

Executive Vice President Internal Audit and Chief Compliance Officer

Senior Management

WellPoint – History

Wellpoint was formed in 2004 as a result of the merger between Wellpoint Health Networks (WHN) and Anthem. Anthem was the outgrowth of two Indianapolis-based corporations formed in 1944 and 1946 as mutual insurance companies, commonly known as Blue Cross of Indiana and Blue Shield of Indiana. Wellpoint Health Networks was formed in 1996 through the merger of former Wellpoint and Blue Cross of California into a single stockholder-owned company.

Blue Cross of California was founded in 1982 with the consolidation of Blue Cross of Northern California (established in 1936) and Blue Cross of Southern California (established in 1937).

In 1993, Blue Cross of California spun off its managed care business into a separate publicly traded entity, Wellpoint Health Networks (WHN). In the same year, Anthem merged with Blue Cross and Blue Shield of Kentucky, the first cross-state merger of two strong Blue plans. Two years later, Anthem merged with Community Mutual, a Blue Cross and Blue Shield plan in Ohio.

Blue Cross of California completed the conversion of all its business to for-profit status, resulting in a restructuring that designated WHN as the parent organization in 1996. WHN acquired the Group Life and Health Subsidiary of Massachusetts Mutual Life Insurance Company in the same year.

In 1997, Anthem merged with Blue Cross and Blue Shield of Connecticut and WHN acquired a substantial portion of the group benefit operations of the John Hancock Mutual Life Insurance Company and CostCare.

Anthem acquired Blue Cross and Blue Shield of New Hampshire and Blue Cross and Blue Shield of Colorado and Nevada in 1999. A year later, Anthem acquired Blue Cross and Blue Shield of Maine and WHN acquired Rush Prudential Health Plans of Illinois and PrecisionRx, a mail service pharmacy fulfillment center in Texas.

WHN’s expansion continued in 2001 with the acquisition of Cerulean Companies, the parent company of Blue Cross and Blue Shield of Georgia. In 2001, Anthem conducted an initial public offering of common stock.

In 2002 Anthem acquired Trigon Healthcare of Virginia, a Blue Cross and Blue Shield plan, in Virginia. WHN acquired RightCHOICE, the parent company of Blue Cross and Blue Shield of Missouri and HealthLink, in the same year. Later in the same year, WHN also acquired MethodistCare, a health maintenance organization (HMO) in Texas.

WHN acquired Golden West Dental and Vision in Camarillo, California and Cobalt Corporation and its family of companies, including Blue Cross and Blue Shield United of Wisconsin in 2003.

Anthem and WHN merged to form Wellpoint in 2004 for around $16.5 billion. Wellpoint acquired Lumenos, a pioneer and market leader in consumer-driven health programs, in June 2005.Wellpoint and Wellchoice jointly signed a definitive merger agreement in September 2005, whereby Wellchoice would operate as a wholly owned subsidiary of Wellpoint. Subsequently, the acquisition was completed in December 2005.

Wellpoint’s subsidiary, AdminaStar Federal, was awarded the Durable Medical Equipment Medicare Administrative Contract (DME MAC) for geographic jurisdiction B (Illinois, Indiana, Kentucky, Michigan, Minnesota, Ohio, and Wisconsin) in early 2006.This contract was for the administration of Medicare claims from suppliers of durable medical equipment, prosthetics, orthotics and supplies. Wellpoint entered into an agreement to acquire the Medicaid plan from QualChoice Health Plan (QualChoice), an Ohio- based managed care organization, in April 2006.

In the third Quarter of 2006 the company revised its reportable segments to be reported from first quarter of 2007. Eventually new segments were formed namely commercial and consumer business (CCB); specialty, senior and state-sponsored business (4SB); and other replacing the old segments namely health care, specialty and other.

In August 2006, WellPoint acquired QualChoice Select, and Medicaid plan from QualChoice Health Plan, an Ohio- based managed care organization.

WellPoint partnered with CVS/pharmacy as a part of its efforts to help educate seniors about Medicare Part D options during the upcoming Medicare Part D open enrollment period in October 2006.

In August 2007, WellPoint acquired American Imaging Management (AIM), a leading radiology benefit management and technology company. In the same month American Imaging Management (AIM), announced that it has been selected by Blue Cross and Blue Shield of Florida, to deliver imaging network information and transparency services through AIM’s OptiNet program.