Launches Elder Care Discount Program

FOR YOUR EMPLOYEES

SpecialOffers@Anthem Launches

Elder Care Discount Program

SpecialOffers@Anthem, our suite of online discounts on health-related products and services, now features a program designed to help your employees address the growing problem of elder care. The new program offers members a 20 percent discount on a range of services from Seniorlink — the leading provider of elder care solutions for aging adults, family caregivers and employers.

What does SpecialOffers@Anthem and Seniorlink have to offer?

Seniorlink’s discounted services are available to all Anthem members when they log on to the SpecialOffers@Anthem page of our Web site, anthem.com. Employees can use Seniorlink’s services for themselves, a spouse, parent(s) or grandparent(s). Discounted services include:

• Free and unlimited care advisory services. Seniorlink’s elder care professionals are available to discuss families’ elder care concerns — such as where to find the best home health care services, how to evaluate long-term care facilities and what support is available for a parent with Alzheimer’s. By calling (866) 797-2336, caregivers take the first step toward getting supported care.

• A 20 percent discount on care management services. The goal of Seniorlink’s care management services is to help seniors live safely and independently. Members are eligible for discounts on an in-home assessment of a senior’s needs done by a credentialed elder care specialist, a written report outlining care options, family telephone consultations and the ongoing coordination of services to support a senior at home.

• American Medical Alert Response Service. A personal emergency response system offers peace of mind for seniors living alone and their family caregivers. Anthem members receive free installation of the HelpLink

Emergency Response System, plus the first 90 days of service at no cost. HelpLink is a product of

the American Medical Alert Corp.

One in four employees in the U.S. cares for an adult age 65 or older.1_{It is}

estimated that each employee who is involved in elder caregiving costs an employer $3,000 per year in lost productivity associated with absenteeism, workday interruptions and replacement costs.2

Seniorlink’s care managers help families with everything from coordinating in-home services to selecting long-term care providers. For more information about Seniorlink, call (866) 797-2336 or visit www.Seniorlink.com.

5

1 Based on a 1998 study from the Families and Work Institute.

EmployerN

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Editor: JoAnn Boyd (513) 336-2374 or e-mail: [email protected] Address change? Call (800) 542-7988. For more information, visit

anthem.com.

The information contained in this newsletter is intended to be a brief outline of the products and services available and is not intended to be a legal contract. Additionally

, benefits may change depending on the plan design chosen.

Life and disability products are underwritten by Anthem Life Insurance Company

. In Indiana: Anthem Blue Cross and Blue Shield

is the trade name of Anthem Insurance Companies, Inc. In Kentucky: Anthem Blue Cross and Blue Shield is the trade name of Anthe

m

Health Plans of Kentucky

, Inc. In Ohio: Anthem Blue Cross and Blue Shield is the trade name of Community Insurance Company

.

Independent licensees of the Blue Cross and Blue Shield Association. ® Registered marks Blue Cross and Blue Shield Association.

4361 Irwin Simpson Road Mason, Ohio 45040-9498

FOR YOUR EMPLOYEES

A New Way to Help Control the Rising Cost

of Prescription Drugs

On June 1, 2004, Anthem kicked off its new Medicare-approved drug discount card program* for Medicare beneficiaries (members and non-members) in the nine states we serve. Anthem’s drug discount card program projects discounts of 10 to 25 percent off retail prices at Anthem network pharmacies. Additionally, a credit of up to $600 from Medicare is available to participants that meet certain requirements, including income level.

Program participants can enjoy:

• access to Anthem’s wide pharmacy network (retail and independent pharmacies) • competitive discounts on prescription drugs

• fast and convenient delivery through Anthem Rx Direct mail service • an annual enrollment fee of $14.95

While members can purchase the Medicare-approved drug discount card and still have access to any complimentary discount programs offered through Anthem, they may only

receive one discount per prescription. Individuals will have to choose which discount card

to use on each prescription, based on their specific needs. Employees with questions about the drug discount card program should call (888) 730-2804. ASA/AMP members should call (800) 467-1199.

*This program, a result of the Medicare Prescription Drug Improvement and Modernization Act of 2003 (MMA), will be replaced in 2006 by the new Part D drug benefit under Medicare.

EmployerNews

In this issue ...

A publication

for Anthem

employer groups

I s s u e 2 , 2 0 0 4

MIDWEST HEALTH SAVINGS ACCOUNT

Anthem ByDesign

_{HSA — Offering}

Savings, Choices and Flexibility

What innovative, new funding option can help you save money and gain financial predictability, while allowing you to continue to offer the quality benefits your employees have come to rely on? Anthem ByDesign HSA — the option that gives your employees control of their health care spending and the flexibility to plan for future health care expenses.

Anthem ByDesign HSA includes two components:

• High Deductible Health Plan (HDHP). An HSA must be paired with an HDHP. Anthem’s HDHP is called Blue AccessSM_{for Health Savings Account. Like}

other Blue Access plans, it offers generous coverage and large networks.

• Health Savings Account (HSA). This tax-advantaged savings account is suppled by Chase and permits an employee to roll over unused funds. It’s portable, so it moves with the employee. Distributions for qualified medical expenses are tax-free, while other distributions are subject to taxes and penalties.

How it works

1. An HSA is supplied by Chase and is coupled with an HDHP.

2. The employee uses a debit card to pay for eligible heath care services. 3. When the deductible is met, the health plan kicks in.

4. Any account balance rolls over from year to year.

Anthem ByDesign HSA continued, p. 2

2

MIDWEST HEALTH SAVINGS ACCOUNT

Anthem ByDesign

_HSA

(continued from cover)

Two industry leaders join forces

Anthem has aligned with Chase, who will supply the actual savings account and provide custodial services for employees. Chase brings a range of services giving them the capacity to provide all the necessary financial components, including Visa debit cards.

Solutions to suit your needs

This is the newest addition to the Anthem ByDesign portfolio, which includes multiple buy-up and PCA options. These innovative solutions can help you better manage costs, while giving your employees more control of their health care decisions.

INFORMATION YOU NEED

It’s Not Too Late to Get the Employer

Health Care Cost Toolkit

How can you educate your employees on the factors that increase health care costs and communicate the value of making wise health care choices? Here’s how: log on to

www.anthem.com/healthcarecosts, fill out our simple online subscription form to

receive our no-cost-to-you Employer Health Care Cost Toolkit by e-mail. The kit includes:

• a health care cost bulletin summarizing why costs are rising and ways your employees can offset them

• a customizable employee letter to distribute to your employees

• ongoing employee educational campaigns on

generics medications, exercising, heart health and more

• payroll stuffers and facility posters

Think Generics Program Lowers Employees

Prescription Costs

If the rising cost of prescription drugs has you and your employees searching for ways to lower your pharmacy bills, then the Think Generics Program may be able to help.

How can Think Generics help my employees save money?

Through Think Generics, Anthem members can obtain a sample request card in the mail or from their doctors for a complimentary, first-time supply of a generic medication (up to $10 in value). By allowing members to talk with their doctor(s) about trying a generic in place of a brand-name drug, Anthem is hoping to educate members on the quality and affordability of generic drugs. And, if an employee’s physician decides to continue the generic therapy, it may save future out-of-pocket costs for your employees and control premiums for you.

MyAnthem Employer

Hosts Online Employer

Services and More

anthem.com to get acquainted

with MyAnthem™ Employer — your new host for Online Employer Services (formerly Employer Self-service) and more.

MyAnthem Employer gives you

easy access to personalized employer services and

information, including new online services* allowing you

to view an employee’s:

• claim status (billing amounts, payment date, provider and date-of-service)

• benefits

• Coordination of Benefit (COB) statements

• primary care physician (PCP)

Check out these other

MyAnthem Employer

quick links.

• Employer support links to the Online Provider Directory, Employer Health Care Cost Toolkit, Online Pharmacy Services and more • Links to your commonly

used contacts

• User guides and tutorials for Online Employer Services • Health-related news and

publications for Midwest employers

• Links to commonly used applications and forms

THE INDUSTRY

Factors Contributing to Rising Health Care Costs — Part 4:

Additional Issues

3

In the final part of our series on the Factors

Contributing to Rising Health Care Costs, we’ll briefly

address three additional issues that impact health care costs, as identified from a PricewaterhouseCoopers study, and review some solutions Anthem offers to help stabilize them.

Medical errors

Despite everyone’s best efforts, consumer costs associated with medical errors in lost income, disability and health

care are estimated at $29 billion annually.1

• Anthem’s IRIS Care Collaboration Program uses technology and professional expertise to identify potential medical problems before they become dangerous, costly situations. The results: healthier employees and lower health care costs. • Our Hospital Quality Program (HQP) also helps address the

problem of medical errors. For example, if a hospital can reduce the rate of infection among its patients, then the hospital demonstrates an increase in patient safety and good quality care practices. Our contracted hospitals are recognized for this type of performance by correlating financial

reimbursement and good practices.

Fraud

Fraud costs Americans $33 million to $55 million annually.2

• Phantom billing, doctor shopping, and providing unnecessary care — just a few examples of health care fraud. Anthem works to combat fraud by employing professionals to investigate it and pursue prosecution. Because fraud can contribute to higher premiums, our efforts to fight it may ultimately help keep your costs down and protect you and your employees from becoming victims of the effects of fraud.

Lifestyle factors

Lifestyle factors such as inactivity, obesity and smoking, place additional demands on the health care system. For example, obesity costs every American an average of $732

more in health care dollars annually.3_{We encourage}

members to lead healthy lifestyles and offer a variety of support programs and education tools to help.

• Anthem’s Health Promotion and Disease Management programs work with members to help them understand the importance of preventive care and manage chronic conditions.

Anthem also provides healthy lifestyle information through:

• MyHealth@Anthem® _{• Healthy Solutions member newsletter} • SpecialOffers@AnthemSM _{• Subimo’s Healthcare Advisor™}

Other simple lifestyle changes your employees can make to help keep health care affordable

• Spend health care dollars responsibly. Make informed choices of when, how and from whom medical care is received. • Save money by requesting generic medications. Generic

medications have the same ingredients, strength and dosage as brand-name drugs. In addition, they are FDA-approved and cost a fraction of the price of the brand-name medication. • Eat smart and exercise. Help avoid serious health problems

like heart disease and type 2 diabetes by exercising regularly, eating a balanced diet, managing stress and quitting smoking. • Keep the word “emergency” in the emergency room. Modern

emergency services are invaluable in life-threatening

situations, but they are inefficient for routine care. For example, a treatment that costs $60 in a doctor’s office could cost as much as $383 in the emergency room.

1 Quality Interagency Coordination Task Force, Doing What Counts for Patient Safety: Federal Action to Reduce Medical Errors and Their Impact. Executive Summary and page 2.

2 NewsUSA, Top 10 Things to Know about Healthcare Fraud 2002.

3 North American Association for the Study of Obesity, NAASO Responds to Recent Harris Poll on Obesity, March 6, 2002.

How does Think Generics work?

By analyzing our pharmacy data, Anthem identifies our members who are currently using one of the brand-name medications whose generic equivalents are available through the Think Generics program. Once identified, these members receive a letter, sample request card and a brochure explaining how generic medications can help them save money on prescriptions.

FOR YOUR EMPLOYEES

‘Cool Tools’ on MyHealth@Anthem

MyHealth@Anthem, Anthem’s web-based resource for health information, now features updates and new “cool tools” that help your employees access up-to-date facts on important health issues and conditions useful for enhancing their own well-being. When employees use this information to better their own health, it can ultimately help to keep your health care costs down, and productivity up.

The first update employees will notice is the simplified newsletter registration process. Other features from our Cool Tools page include:

• Fitness Finder — an assessment that helps determine fitness goals based on personality and environment.

• Personal Trainer — an animated guide that helps develop a personalized fitness program.

• The new Blood Alcohol Estimator calculator — helps determine estimated blood alcohol level after drinking alcohol and its effects on the ability to function.

• Nutrition Toolbox — information for more than 30,000 foods, including fast-food items and brand-name groceries.

Additionally, there are new quizzes, book reviews and content on health topics like fitness and nutrition, ills and conditions, emotional health, and occupational health categories.

Encourage your employees to visit the MyHealth@Anthem page on our web site, anthem.com.

Subimo’s Healthcare Advisor™ Helps

Employees Find the Care That’s Right for

Them

When it comes to making important health care decisions, knowledge is power. Subimo’s Healthcare Advisor is an online tool designed to empower employees, so they can make better health care choices. Accessed through anthem.com, Healthcare Advisor helps employees*:

• learn what to expect when facing an illness

• find information about different treatment options

• ask the right questions when talking with a doctor

• know what to expect before having a surgery

• find the most appropriate hospital for a certain health need

• determine which hospitals have met leading standards for patient safety

*This tool is not available to some national accounts, including Kroger.