Young and Uninsured: Closing the Gap for the Invincible and the Ineligible Steve Northrup Vice President, Federal Affairs, WellPoint, Inc National Health Policy Conference Capital Hilton, Washington, D.C. February 4, 2008

1/30/ Agenda Young Adult Characteristics Initial Perceptions and Misconceptions The Reality How They View Health Insurance Why They Aren’t Buying Health Insurance Anthem Solutions for Young Adults Why TONIK ® ? TONIK Benefits The TONIK Experience Consumer-Friendly Solutions Cost and Quality Transparency Innovative Consumer Tools Our Uninsured Action Plan Lessons Learned

1/30/ Young Adult Characteristics Initial Perceptions and Misconceptions Young invincibles Don’t want and can’t afford health insurance Willing to live on the edge and take a chance Not worried about the future Indestructible Irresponsible

1/30/ Young Adult Characteristics The Reality Men and women years old - post college/pre-marriage Want to be seen as independent and responsible $30K+ annual income Heavy internet users Want a consumer-friendly product that is affordable and simple to apply for, use, and manage

1/30/ Young Adult Characteristics How They View Health Insurance Sign of being mature Offers security and peace of mind Why They Aren’t Buying Health Insurance Too expensive Too confusing Insurance companies don’t offer products to fit their needs and lifestyle Procrastination

1/30/ Anthem Solutions for Young Adults Why TONIK? Extensive market research led to products designed to provide what young adults want Most plans under $100/month with some premiums as low as $69/month Plans cover medical, dental, vision, and pharmacy First-dollar coverage for preventive benefits Automated payment option Straightforward, conversational communication style 3 plans with only 2 variables Simplified online application, 20 minute process Instant, downloadable ID cards

1/30/ Anthem Solutions for Young Adults BenefitsThrill Seeker Part-Time Daredevil Calculated Risk Taker Annual Deductible/Out of Pocket Max $5,000$3,000$1,500 Doctor Visit Copay Deductible waived $20 4 visits/year $30 4 visits/year $40 Unlimited visits Inclusive of all services received in office, including x-ray, lab, etc. In/Outpatient Hospital $0 after deductible Prescription Generic Only $10 Dental $25 Deductible $0 Cleanings, Exams, X-rays 20% Fillings Vision$50 for Exam, Glasses, Contacts

1/30/ Anthem Solutions for Young Adults The TONIK Experience More than 80,000 individual enrollees (most in California where TONIK was introduced at end of 2004) 78% previously uninsured Majority of members are years old Six current markets: CA, CO, NV, NH, CT, GA Planned expansion to all 14 states in which Anthem or one of its affiliates is the Blue Cross or Blue Cross and Blue Shield licensee All plans purchased online Has expanded insured market by introducing the importance of insurance to a new segment

1/30/ Consumer-Friendly Solutions Cost and Quality Transparency Efforts Anthem Care Compare – Hospital and surgical center cost and volume information Zagat Online Physician Rating Tool – Allows members to view other members’ ratings of physicians, percentage of members who recommend that physician, and member comments. Physicians rated in four categories: Trust Communication Availability Environment Blue Precision Physician cost and quality information

1/30/ Consumer-Friendly Solutions Innovative Consumer Tools 360° HEALTH ® Program An integrated suite of resources and health programs designed to give members the information and support they need to reach their highest possible level of wellness. Includes web-based solutions like a health risk assessment, Daily Health Tips, Online Preventive Guidelines. Also offers Healthy Newsletters, Wellness Materials, 24/7 Audio Tape Library, 24/7 Nurse Line, Diet/Nutrition resources. MyHealth Record TM Secure internet access to self- and claims-populated health information, customized health management tools, clinical alerts for medication safety and gaps in care, and a Secure Message Center to allow consumers to communicate virtually with customer service representatives. E-Prescribing To enhance patient safety, quality of care and health care affordability and spur more widespread adoption of health information technology tools. Combination of local initiatives and sponsorship of the National Electronic Prescribing Patient Safety Initiative (NEPSI).

1/30/ Uninsured Action Plan When $100/month is too much… Our plan to reduce the number of uninsured: Universal coverage for children Public programs for children in families up to 300% FPL Private products designed to appeal to families with previously uninsured children Improving and expanding public programs for the most needy Public program coverage for parents up to 200% FPL and childless adults up to 100% FPL Providing a bridge to self-sufficiency for the working poor Premium assistance programs for all individuals and families up to 300% FPL

1/30/ Lessons Learned Moving Forward Legislative and regulatory flexibility enable innovative, affordable products Consumers can determine the type and benefits of health insurance coverage best suited to their individual situations Third-party benefit review panels can provide insight into fiscal impact of proposed or enacted mandates Educating consumers on the value of health insurance is a key part of outreach