Patricia E. Scipio, CIA, CPA Vice President, Auditing Wellchoice, Inc.

1. Patricia E. Scipio, CIA, CPA Vice President, Auditing Wellchoice, Inc. Empire Blue Cross Blue Shield

2. WellChoice, Inc. • Parent Company of Empire Blue Cross Blue Shield • Largest Health Insurance Company in New York • Serves over 4.6 Million Members • Began Trading on New York Stock Exchange on 11/8/02 • #1 Market Share & Largest Provider Network in Metro NYC • Revenues of $4.6 Billion in 2001 • Highest Physician Auto-adjudication Rates Industry-wide • Approximately 5,700 Employees

3. WellChoice, Inc. - Corporate Audit • VP Auditing Reports Functionally to Chairman of the Board, Administratively to Chief Executive Officer • 3 Groups • Corporate Performance • Customer Audit Services • Internal Audit Services • Internal Audit Services Outsourced • Coordinates with External Auditors

4. Disclosure Controls & Procedures • Form a Disclosure Review Committee • Obtain Meaningful Input from Outside Experts • Evaluate Disclosure Controls & Procedures • Read the Reports • Review with Audit Committee • Document Actions Taken • Address Problems Promptly

5. Disclosure Review Committee • Under the Supervision of the CEO & CFO • Membership • Principal Accounting Officer or Controller • General Counsel or Other Senior Legal Official • Principal Risk Management Officer • Chief Investor Relations Officer • Responsibilities & Procedures • Confirm Adherence to Policies & Procedures • Review SEC Rules • Implement Sub-certification Process • Review SEC Filings and Other Documents for Accuracy and Completeness

6. Internal Auditing’s Role • Ex Officio Member of Disclosure Review Committee • Review and Evaluate Disclosure Controls & Procedures • Review all SEC Filings & Other Documents • Coordinate Internal Control Reporting under Section 404