Wellpoint Competitor Analysis

1. Wellpoint Competitor Analysis July 2013 Tom, Lori, Gail, Heath

2. WELLPOINT – Who are they? Joseph R. Swedish CEO About: Headquartered in Indianapolis 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 counties and as Blue Cross, Blue Shield 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. COMPANY HISTORY WellPoint, Inc. was formed when WellPoint Health Networks Inc. and Anthem, Inc. merged in 2004 to become the nation's leading health benefits company. WellPoint, Inc. is one of the largest health benefits companies in the United States. Through its networks nationwide, 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, dental, vision, behavioral health benefit services, as well as long term care insurance and flexible spending accounts.WellPoint is one of the nation’s largest health benefits companies, with more than 36 million members in its affiliated health plans and nearly 67 million individuals served through its subsidiaries.

3. Wellpoint – Products and Services PRODUCTS & SERVICES With a reputation for innovation, WellPoint is committed to establishing a relationship with customers, physicians, hospitals and other health care clinicians as trusted partners.Consumers want a choice of products and health care professionals, and they want more control over their health care decisions. Employers also want the maximum amount of cost control while also being sensitive to employee needs.WellPoint and its affiliated health plans have created a variety of PPOs, HMOs, various hybrid and specialty network-based dental and health care services that combine the attributes consumers find attractive with effective cost control techniques. Employer groups and individual members can select from basic as well as comprehensive plans to meet their specific needs. Also available are a wide range of related specialty products and other services including flexible spending accounts and COBRA administration. SPECIALITY PRODUCTS WellPoint offers a broad array of specialty products including, behavioral Health, Life, Disability, Dental and Vision, products which provide administrative efficiency and enhanced product value. Innovations at WellPoint WellPoint is committed to finding new and improved ways to provide real-world solutions that simplify health care processes and improve health care quality. IBM Watson WellPoint and IBM have announced an agreement to create the first commercial applications that utilize IBM Watson technology to help improve the delivery of quality, evidence-based health care. IBM Watson has the ability to analyze the meaning and context of natural language, and rapidly process information to find precise responses to questions. In recent years, few areas have advanced as rapidly as health care. For physicians, incorporating hundreds of thousands of articles into practice and applying them to patient care is a significant challenge. IBM Watson can sift through an equivalent of about 1 million books or roughly 200 million pages of data, and analyze this information to provide precise responses in less than three seconds. This capability is expected to enable physicians to engage IBM Watson to coordinate medical data programmed into Watson with specific patient factors, to help medical professionals identify the most likely treatment options and perhaps refine diagnoses in complex cases.

4. CareMore:a WellPoint subsidiary that operates Medicare Advantage plans, provides innovative solutions to the complex problems of aging and chronic conditions. CareMore’s entire model is centered around the patient and does what our industry and our health care system have historically not done well: simplify access, communication, prevention and treatment. CareMore’s Neighborhood Care Centers deliver a wide range of services and are staffed with physicians, nurse practitioners, medical assistants, podiatrists, physical therapists, nutritionists, psychologists and case managers. Patient-Centered Medical Home -At WellPoint, we believe health care should be measured by outcomes, not by repetitions. That’s why WellPoint’s affiliated health plans are piloting Patient Centered Medical Home (PCMH) programs nationwide to change our health care system from one that embraces quantity to one that rewards quality. Pay for Performance (P4P)Through innovative pay-for-performance programs WellPoint’s health plans encourage physicians and hospitals to provide the highest quality care. Patient Safety FirstWellPoint’s affiliated health plan in California, along with California’s three regional Hospital Associations, and the National Health Foundation, joined together in a three-year, $6 million effort to improve the quality and consistency of care Californians receive. Patient Safety First… Early data suggest the Patient Safety First initiative in California has already resulted in a cost-avoidance of over $11 million. Emergency Room Utilization ManagementWellPoint's affiliated health plans have launched an emergency room program and education campaign incorporating Google Maps to make it easier to find and use retail health clinics and urgent care centers for non-emergency conditions when regular physicians are not available.Member Health Index/State Health Index WellPoint is committed to providing members of our affiliated health plans with innovative programs and services to help them lead healthier lives and better manage their health. And WellPoint’s two health improvement indices are powerful benchmarks of our performance. The Member Health Index (MHI) measures how we’re improving the lives of health plan members and is a cornerstone of our efforts to track and improve the quality of care members receive. The MHI uses metrics to assess members’ overall health and what we are doing to encourage healthy behaviors and promote quality care, and it tracks our performance over time. Journey Forward WellPoint, the National Coalition for Cancer Survivorship, UCLA Cancer Survivorship Center and Genentech, collaborated to develop the Journey Forward program, which provides doctors and patients with tools for more productive and coordinated discussions about the physical and emotional steps involved in being a cancer survivor. Wellpoint’s Key Competencies and Strengths

5. Healthy, engaged employees and a healthy bottom line We believe better health is the sustainable way to lower health care costs. We can help you improve health and productivity. Cigna offers companies of different sizes a range of products and services. Health Assessment and Health CoachesHealth assessments help employees identify the health issues they need to improve. Health coaching gives employees the consultation and tools they need to achieve their health-related goals, from losing weight and quitting tobacco, to reducing stress and getting a better night's sleep. 24/7 AssistanceWe were the first national carrier to move to 24/7 live phone service. Our customers can talk with a representative whenever it's convenient for them. My Cigna ConnectionsCustomer representatives are dedicated to helping employees find the wellness programs and health services that work for them. My Personal ChampionA single point of contact coordinates information and services for employees who need a higher level of attention. Online AssistanceOur personalized website helps employees make more informed decisions about their health and health spending. On-site HealthOffering on-site wellness programs is one of the most convenient, effective ways a company can help employees understand their health risks and make better choices. Care Management ProgramsFor employees who need special assistance for chronic or acute health conditions, we recommend the care management programs that can help them improve their health. Cigna Care Management includes programs that help: Individuals with chronic health conditions, such as heart disease and diabetes, improve their health and lower their related costs, cancer and pregnancy. Cigna’s Competencies and Strengths

6. Wellpoint vs Cigna - Snapshot YE 2012

7. Key Drivers • 2012 Focus leaned to increasing Profit • Strengthening financial outlook, as represented by the #1 promise to shareholders of meeting financial and operational objectives • Goal was marginally met, reflected by a profit increase of $361M over 2011 • Ongoing focus on Growth • Reflected in significant acquisitions starting in 2005 and including Amerigroup in 2012, which increased enrollment by 2.7 million • Significant focus on Medicare/Medicaid Segment • .6% increase in Revenue • Additional focus on People • Addition of top talent from acquisitions with current staff to create a powerful leadership team • Retention is also a focus because they have been through some challenges over the past few years and are focusing on keeping key operating talent • Support the current membership population Cigna’s focus is more on growth and that is reflected in the difference between the companies 2012 financial reports Revenue Growth 1.6% 32.7% Net Income Growth .003% 28.8% Earnings per Share Growth 12.8% 22%

8. Stock Drivers