2 0 1 4 A N N U A L R E P O R T
REDEFINING
REINVENTING
REASSURING
REDEFINING REINVENTING REASSURING REDEFINING
Redefining Health Care
REINVENTING
Reinventing How We Do Business
REASSURING
Reassuring Our Customers
Anthem is working to transform health care with trusted and caring solutions. Our health plan
companies deliver quality products and services that give their members access to the care
they need. With more than 68 million people served by its affiliated companies, including more
than 37 million enrolled in its family of health plans, Anthem is one of the nation’s leading
health benefits companies.
We’re an independent licensee of the Blue Cross and Blue Shield Association. Anthem companies
serve members as the Blue Cross licensee for California, and as 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 the Blue Cross Blue
Shield licensee in 10 New York City metropolitan and surrounding counties and as the Blue
Cross or Blue Cross Blue Shield licensee in selected upstate counties only), Ohio, Virginia
(excluding the northern Virginia suburbs of Washington, D.C.), and Wisconsin. In most of these
service areas, our plans do business as Anthem Blue Cross, Anthem Blue Cross and Blue Shield,
Blue Cross and Blue Shield of Georgia and Empire Blue Cross Blue Shield, or Empire Blue Cross
(in the New York service areas). Anthem, Inc. subsidiaries Amerigroup, CareMore and Simply
Healthcare Holdings, Inc. also serve consumers in many states across the country.
Additional information about Anthem, Inc. is available at www.AnthemInc.com.
The Blue Cross and Blue Shield names and symbols and BlueCard are registered marks of the
Blue Cross and Blue Shield Association, an association of independent Blue Cross and/or Blue Shield Plans.
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ANTHEM REDEFINING REINVENTING REASSURING REDEFINING
We believe the consumer must be at the center of their health care experience, and our goal in
redefining how health care works is to make it better. This means changing what consumers
expect from their health plan and building a system that invests in patient-centered care,
eliminates inefficiencies and empowers consumers.
Today, consumers are looking for more than just value from their health plans. They want a trusted partner to
help them make better decisions for themselves and their family. Earning that trust requires acting as a true
resource by providing easy-to-use solutions and quantifiable cost savings amidst a confusing health landscape.
Redefining health care starts with consumer-centered solutions.
Vivity
Traditionally, health plan and consumer interaction occurs solely at the point
of benefit review or payment. At Anthem, we believe a health plan should
support and empower the consumer throughout their personal health
journey. That’s why our California plan, Anthem Blue Cross, created the Vivity
benefit plan. Vivity combines the expertise of our health plan with a provider
network that includes seven Los Angeles and Orange County hospitals and
their affiliated medical groups. Together, Vivity aligns care and improves the consumer experience. This moves
away from fee-for-service payment to true financial risk- and gain-sharing that rewards providers for activities
that keep patients healthy.
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ANTHEM REDEFINING REINVENTING REASSURINGREDEFINING REDEFINING
The hospitals are paid according to the rates in their Anthem Blue Cross provider contracts, but they now
have the opportunity to earn shared savings. The risk-sharing arrangement is structured to incentivize the
participating hospital systems to focus on sustainable costs and favorable outcomes for members. Each of
these hospital systems holds the others accountable for high-quality, affordable care and each must satisfy
certain quality metrics before receiving any shared savings. Consumers benefit through simplified access to
care and more predictable costs.
Enhanced Personal Health Care
Consumers deeply value the patient-doctor relationship that is at the heart of health care, and Anthem is
working to strengthen it. The U.S. health care payment system has not always succeeded in reinforcing this
connection. That’s why our affiliated health plans developed Enhanced Personal Health Care to support
providers as they work to improve the overall health of plan members by offering personalized, coordinated
and proactive care.
Enhanced Personal Health Care providers are empowered in three ways: with payment that rewards high-quality,
efficient care; access to useful information that can help guide improved care; and support and guidance
as they adopt or expand the patient-centered care model. When these three things come together both
consumers and Anthem benefit from improved outcomes, time savings and lower costs.
More than one-third of primary care providers in Anthem’s affiliated health plan networks participate in
Enhanced Personal Health Care. Early results show cost savings of between $5 and $11 per member, per month
for members under the care of participating providers. At the same time, clinical quality measures such as
diabetes care improve, avoidable emergency room visits drop and patients report that their providers are
more accessible, spend enough time with them and listen to them.
Image Cost & Quality Program
Anthem is also putting cost choices in the hands of consumers. As consumers embrace health benefit plans
with lower premiums and higher deductibles, out-of-pocket costs per procedure or service are expected to
rise. However, it’s not easy for consumers to recognize when they’re getting the best value. And we all know
that higher cost doesn’t always guarantee higher quality.
That’s why Anthem subsidiary AIM Specialty Health is helping consumers find imaging services at the best
price—providing information on providers and out-of-pocket costs anticipated by each consumer. By engaging
and educating the consumer about variations in cost for non-urgent imaging procedures, such as MRIs,
consumers now have the information and power to make an informed choice on the best value.
According to an AIM study, consumers who chose less expensive MRIs after receiving AIM’s price information
helped save $220 per test in total health system costs. The study also found increased price awareness was
linked to a shift in consumer behavior, decreasing the use of high-cost hospital-based MRIs and ultimately
reducing price variation between hospital and non-hospital facilities for all consumers.1
Anthem takes the trust of consumers seriously, and its plans work with providers and consumers to provide
the best value and access to quality services. We are reinforcing our commitment to redefining health care
by helping consumers make informed decisions and strengthening their relationships with their health
care providers.
1 Hussey PS, Wertheimer S, Mehrota A. The association between health care quality and cost: a systematic review. Ann Intern Med.
2013;158(1):27–34
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ANTHEM REDEFINING REINVENTING REASSURING REINVENTING
There are medical advancements every day, and our health care system must evolve to accom-
modate those advancements. Anthem is tackling complex areas of health care, collaborating
with industry experts and creating information-sharing opportunities. These are just a few
of the ways we are helping reinvent the way providers, payers, academic institutes and others
work together to improve our health care system.
There are medical advancements every day and the health care system has undergone significant change over
the past few years. Anthem is at the forefront of changes to the health care system. By reinventing how health
care is administered with innovative changes in treatment plans, research advancements and the exchange of
information, our plans are giving providers the tools they need to give consumers the best care possible.
Cancer Care Quality Program
Thanks to medical innovation, there are more cancer treatment options than
ever before. Survival rates for many types of cancer have reached all-time
highs. But research shows that there’s a lot of variation in treatment practice
patterns and quality of care; and costs have never been higher.
To tackle these quality and cost issues for chemotherapy treatment of cancer,
Anthem worked with its subsidiary AIM Specialty Health to develop the
Cancer Care Quality Program.
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ANTHEM REDEFINING REINVENTING REASSURINGREINVENTING REINVENTING
The Cancer Care Quality Program identifies certain cancer treatment pathways based upon current medical
evidence, peer-reviewed published literature, consensus guidelines and Anthem’s clinical policies in order to
support oncologists in identifying cancer treatment therapies that are highly effective and provide greater
value. The program also provides oncologists who are in-network for a member’s health benefit plan with
enhanced reimbursement to offset the lower fees they receive when prescribing less expensive drugs.
Anthem is trying to shift the paradigm on cancer quality and how our plans pay for cancer care. By reimbursing
for treatment planning and care coordination, it helps to weaken the link between drug margin and practice
revenue. Our hope is that this program will result in improved quality and less variation regardless of the drug
reimbursement.
HealthCore Collaborations
Anthem, Inc. and its subsidiaries are also working with leaders in the pharmaceutical industry to transform
disconnected data sets into real world results. This is the kind of research that will advance traditional
thinking and translate into better treatment outcomes for consumers.
Just this year, a five-year research collaboration between Boehringer Ingelheim, Anthem and Anthem subsidiary
HealthCore seeks to generate real-world evidence and develop health economics and outcomes data to
inform the development and evaluation of new medicines, guidelines and interventions. Of initial interest are
aims to identify gaps in non-valvular atrial fibrillation research, development and treatment.
Similarly, Anthem and HealthCore are working with Eli Lilly and Company to jointly develop and conduct
research projects in health outcomes and real-world evidence in areas of mutual interest.
Together, the companies plan to explore issues related to appropriate use of existing and new therapies and
interventions, and the impact these have on clinical and economic outcomes that matter the most to patients.
It’s collaborations like these with trusted experts in their fields that will result in true advancements in care
and therapies—closing gaps by creating new strategies.
Cal INDEX
Anthem knows that gaps also exist for consumers when they receive health care from various doctors at
different health care systems—doctors aren’t getting a true, holistic view of the care that consumers have
received if their treatment information isn’t shared. Often, when consumers are being treated by more than
one doctor, those professionals cannot see the treatments and tests the others are prescribing, particularly if
they work in different health care systems. Fortunately, this is changing.
In California, Anthem Blue Cross is a founding member of Cal INDEX, a new statewide health information
exchange. Through Cal INDEX, participating doctors, nurses and hospitals across systems and offices can
access patients’ health records so they can provide better, more cost-effective care. When a consumer receives
services from a participating doctor or hospital, their health record is updated so other Cal INDEX participants
can see a more complete view of their patient’s health history. This not only helps avoid duplicative procedures
and potential drug interactions, but also makes health information available in emergency situations so care
can be delivered more effectively.
Anthem is facilitating the creation of complete health records, fostering research collaborations and utilizing
evidence-based cancer treatment pathways. Imagine a more educated physician armed with the best medical
data to treat the patient—this is how Anthem is reinventing health care.
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ANTHEM REDEFINING REINVENTING REASSURING REASSURING
Anthem, Inc. and its affiliated health plans have decades of experience providing health
benefits and services. We have seen change and adapted to it. We know what works, we are
sharing our expertise with others and we are providing reassuring support in moving health
care forward.
Anthem, Inc. is committed to being there for our consumers, business partners and communities. We know
change will not come to our health care system overnight, which is why we are working in a caring manner to
help everyone take the next steps toward a healthier future.
CareMore Emory Agreement
Anthem recognizes the need to focus on improved health outcomes while
reducing health care costs. In Georgia, CareMore Health System, a subsidiary
of Anthem, is working with Emory Healthcare to better manage the health
needs of Medicare patients and create both value-based reimbursement
models and risk-based payment arrangements. This partnership ensures
consumers are getting more preventive and coordinated care to avoid costly
emergency events—getting and keeping the patient healthy.
Under the agreement, the Emory Healthcare Network’s 1,800 physicians, five hospitals and 200 care locations
will continue to provide services to patients of many different Medicare Advantage plans and incorporate
CareMore’s nationally recognized clinical care model. The CareMore care model provides interactive care and
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ANTHEM REDEFINING REINVENTING REASSURINGREASSURING REASSURING
tailored treatment plans for Emory Healthcare Network patients, beginning with the Medicare Advantage
(MA) population. Additionally, Emory Healthcare will add CareMore-like comprehensive care centers—clinics
where patients get the preventive care they need.
LiveHealth Online
While the CareMore model focuses on preventive care, LiveHealth Online* helps consumers when they are
sick by providing access to more convenient, cost-effective care through on-demand, secure video conversa-
tions with doctors.
Colds, sore throats and rashes don’t always appear during doctors’ regular office hours. That’s where
LiveHealth Online comes in. With LiveHealth Online, consumers can use their smart phone, tablet or computer
to have a live video visit with a US-based, board certified doctor 24/7 anywhere they have internet access.
Doctors using LiveHealth Online can provide a diagnosis, treatment and even a prescription if needed.
Since its launch to large employers in 2013, visits by doctors using LiveHealth Online are now a covered
benefit for the majority of Anthem-affiliated health plan members, including health insurance marketplace
members. Doctors are available 24 hours, 365 days a year, including holidays. Consumers can choose Spanish-
speaking doctors in our California market. This is yet another way we are making health care convenient and
accessible to all.
Medicaid Expansion
Anthem plans are also providing convenience and accessibility for our nation’s most vulnerable population—
those served by publicly funded health programs. Anthem’s Government Business Division provides best-in-
class services to Medicaid programs and consumers across the country, and our commitment to serving this
population continues to grow.
Our plans earned new contracts in Florida and Washington that will further expand our presence in the
Medicaid market and allow us to bring care coordination models to additional Americans. We are also working
collaboratively with state governments to implement cost-saving emergency room diversion programs and to
strengthen foster care. Anthem’s wholly-owned subsidiaries are helping educate millions of Americans on how
to most effectively use the health care system and achieve improved health.
Our expansion of plans to service the Medicaid population, innovation providing convenience to consumers
and collaboration with top providers shows our commitment to improving health care. This is how we reassure
consumers and providers that we are evolving and creating a better health care delivery model.
*LiveHealth Online is the trade name of Anthem’s subsidiary Health Management Corporation
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ANTHEM REDEFINING REINVENTING REASSURING ADVANCING CARE
In 2014 we focused on improving access and affordability
to provide quality health care to our customers.
To Our Shareholders, Customers and Communities:
Organizations have two choices when facing change: stand idly and endure it, or actively embrace it as a
springboard to success. Anthem’s exceptional performance in 2014 represents our choice to make a calculated
and concerted effort to transform our company and lead change across our nation’s health care system.
By redefining our strategy and reinventing the way we do business, we reassured our shareholders of both
our strong position for the future and our unified vision to be America’s valued health partner. Anthem truly
embraced the challenge of change last year and as a result we thrived. We are pleased to share our success
and the pride of our many achievements with all of you.
At our Investor Day in March 2014, we clarified our long-term goals and strategy, and realigned our company
around three core strategic pillars—provider collaboration, affordability through managing the total cost of
care and consumer centricity. These pillars reflect the changing dynamics of our markets and our response to
the evolving needs and challenges of our customers, our network providers and our federal and state health
care program partners. Under this strategic framework, we invested heavily in developing and enhancing
programs and capabilities that are generating visible and significant results.
We are leading the industry in provider collaboration, with nearly $50 billion in provider reimbursement tied
to better quality, value and health outcomes for our members. Our ground-breaking relationships across the
country are advancing innovative approaches to sharing risk, exchanging clinical information and managing
population health with unprecedented levels of provider-payer teamwork.
We’re also laser-focused on affordability and ensuring that high quality, high value health care remains accessible
and affordable for all of our members. Programs launched last year in complex clinical areas like oncology,
specialty pharmaceuticals and chronic disease management are achieving these goals by promoting better
informed decision-making by patients and physicians.
Health care consumers are more engaged and empowered than ever, and their expectations are growing
based on experiences with industries outside of health care. This is why we believe becoming a more
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ANTHEM REDEFINING REINVENTING REASSURINGADVANCING CARE PRESIDENT’S LETTER
consumer-centric company is a mandate, not a choice. It is also one of the driving forces behind our decision
to change our name to Anthem, the name by which consumers know us best. The Anthem name is an important
expression of our commitment to our members and our communities, and will keep us focused on a common
company culture while improving alignment between our operations and operating brands.
The strategy we set and the investments made to support it produced very strong results that exceeded
investors’ expectations and surpassed the very high bar we set for ourselves. In 2014, we grew membership
by 1.8 million new medical members, including more than 700,000 members from the Public Exchanges, and
surpassed 5 million members in our Medicaid business. Our year-end operating revenue stood at $73 billion,
an increase of nearly $3 billion over the previous year. In addition, we made and are continuing to make
substantial investments in new capabilities that better serve our members and will help drive future growth.
We’re confident that by remaining disciplined, consistent and accountable for delivering results, we will
achieve our goals.
Translating change into success was a meaningful accomplishment for our company in 2014, but is no cause for
complacency. The health care landscape continues to rapidly evolve, and with it, the needs and expectations
of our many stakeholders. We remain inspired by the changing market dynamics around us, motivated by the
challenges that lie ahead and confident we’ve built a framework, a culture and a team of associates that position
us for long-term growth and success.
We acknowledge, however, that even more important than strong financial and operational results, is main-
taining the trust and confidence of our members. Safeguarding our members’ personal, financial and medical
information is one of our top priorities, and we would like to apologize to our current and former members
whose information was accessed during the recent external cyber attack on Anthem. We continue to work
around the clock in coordination with law enforcement, regulators and our cybersecurity partners to mitigate
the potential impact of this attack on our members. You have my personal commitment that we are doing
everything in our power to enhance our systems and security processes and make them more secure, and we
hope that we can earn back our members’ trust and confidence in Anthem.
Thank you to our associates for leading the change across our company and our health care system, and thank
you for your continued support of our company. Together, as Anthem, we will continue to lead the charge in
“transforming health care with trusted and caring solutions.”
Sincerely,
Joseph R. Swedish
President and CEO
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ANTHEM REDEFINING REINVENTING REASSURING COMMUNITY
Corporate Responsibility
Helping to address some the most pressing health needs of our communities continues to underscore the
commitment of the Anthem Foundation, the charitable arm of Anthem, Inc. And as the needs of our commu-
nities grow and change over time, so has the way in which the Foundation, together with Anthem, Inc., has
refined opportunities to support our associates who also want to make a difference in the communities where
we live, work and serve.
Through its Healthy Generations grant program in 2014, the Anthem Foundation built on its signature
approach to funding strategic initiatives that improve public health—from programs such as the American
Heart Association’s Hands-Only™ CPR training that has taught more than 3 million people across the country
how keeping a simple beat can help save a life, to the Boys & Girls Clubs of America’s innovative Triple Play
program aimed at helping kids stay active and healthy.
With a multigenerational focus on heart health, cancer prevention, prenatal care, diabetes prevention and
active lifestyles, the Anthem Foundation partnered with thousands of national and local organizations that
not only share our vision for a healthier future, but have also set the standard for developing innovative and
interactive programs that engage and empower our local communities to take charge of their health.
To support our associates who want to make a difference in their own communities, the Foundation matched
associate donations in its year-round Giving Program at 50 percent, and encouraged and augmented community
service through the company’s Dollars for Doers program and Volunteer Time Off benefit. Finally, Anthem, its
Foundation and its associates support each other and our communities in times of need through our disaster
relief efforts including the Anthem Cares Fund.
Total Giving
National
$49.7
Million
Total Giving
$38.8 Million
Foundation Grants
$5.6 Million
Associate Programs*
$5.3 Million
Community Relations**
* Total Associate Giving pledges plus Foundation Matches, Dollars for Doers Grants plus associated value for volunteering, Director’s Fund pledges, and Anthem Cares Fund grants
** Community Relations includes $1.5 million corporate contribution to American Lung Association
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ANTHEM REDEFINING REINVENTING REASSURINGCOMMUNITY
Total Revenues
80
70
Total Revenues
(In Billions)
60
50
FINANCIAL
COMMUNITY
INFORMATION
Creating a Healthier Future
for Children, Adults and Seniors
$60.7
$58.7
$61.5
10
20
30
40
0
2010 2011 2012 2013 2014
‘10
‘11
‘12
‘13
$71.0
$73.9
‘14
100
80
60
40
20
0
20
15
10
5
0
2010 2011 2012 2013 2014
Benefits Expense Ratio
2010 2011 2012 2013 2014
80
70
60
50
40
30
20
10
0
100
80
60
40
20
0
20
15
10
5
0
Benefits Expense Ratio
Customer Base
Customer Base
Total Revenues
(In Billions)
Benefit Expense Ratio
Customer Base
Customer Base
Total Revenues
80
70
60
50
40
30
20
10
0
100
80
60
40
20
0
$73.9
$71.0
$58.7
$60.7
$61.5
83.2% 85.1% 85.3% 85.1% 83.1%
61% Self-Funded
39% Fully-Insured
61% Self-Funded
39% Fully-Insured
2010 2011 2012 2013 2014
‘10
‘11
‘12
‘13
‘14
2010 2011 2012 2013 2014
‘10
‘11
‘12
‘13
‘14
39%
39%
Fully-Insured
Fully-Insured
61%
61%
Self-Funded
Self-Funded
Diluted Net Income Per Share
(In Whole Dollars)
Diluted Net Income Per Share
(In Whole Dollars)
Total Revenues
Benefits Expense Ratio
Selling, General, And Administrative Expence Ration
Benefit Expense Ratio
Diluted Net Income Per Share
(In Whole Dollars)
Diluted Net Income Per Share
(In Whole Dollars)
10
Selling, General and
Administrative Expense Ratio
10
83.2% 85.1% 85.3% 85.1% 83.1%
8
15.1%
2014
14.1% 14.3% 14.2%
2014
16.1%
$6.94
$6.94
$7.25
$7.25
$8.99
$8.99
$8.18
$8.18
$8.20
$8.20
Total Revenues
(In Billions)
$58.7
$60.7
$61.5
20
$73.9
$71.0
15
10
5
0
8
6
6
4
4
2
2
0
0
‘10
2010 2011 2012 2013 2014
‘11
‘12
‘13
‘14
2010 2011 2012 2013 2014
‘10
‘11
‘12
Benefit Expense Ratio
Customer Base
Selling, General, And Administrative Expence Ration
2014 Medical Membership
(In Millions)
Total Medical Membership (in millions)
Customer Base
Selling, General and
Administrative Expense Ratio
40
35
Total Medical Membership (in millions)
40
‘13
2010 2011 2012 2013 2014
‘14
‘10
‘11
2010 2011 2012 2013 2014
‘12
‘13
‘14
‘10
‘10
‘11
‘11
‘12
‘12
‘13
‘13
‘14
‘14
Total Medical Membership
(In Millions)
Total Medical Membership
(In Millions)
36.1
36.1
35.7
35.7
37.5
37.5
33.3
33.3
34.3
34.3
35
40%
30
30
25
5%
25
20
19%
20
15
14.1% 14.3% 14.2%
16.1%
Local Group
83.2% 85.1% 85.3% 85.1% 83.1%
15.137
Individual
National Accounts
BlueCard®
Medicare
1.793
15.1%
7.155
5.279
1.404
Medicaid
‘11
‘10
‘12
61% Self-Funded
‘13
‘14
39% Fully-Insured
5.193
15
14%
10
10
5
4%
5
0
14%
0
2010 2011 2012 2013 2014
Federal Employee
1.538
‘10
‘11
4%
‘12
2010 2011 2012 2013 2014
2010 2011 2012 2013 2014
‘13
Fully-Insured
‘14
39%
61%
Self-Funded
‘10
‘10
‘11
‘11
‘12
‘12
‘13
‘13
‘14
‘14
Diluted Net Income Per Share
(In Whole Dollars)
$8.99
$8.18
$8.20
2014
$6.94
$7.25
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Selling, General, And Administrative Expence Ration
Selling, General and
Administrative Expense Ratio
Diluted Net Income Per Share
(In Whole Dollars)
10
15.1%
14.1% 14.3% 14.2%
16.1%
8
6
4
2
0
40
35
30
25
20
15
10
5
0
2010 2011 2012 2013 2014
‘10
‘11
‘12
‘13
‘14
2010 2011 2012 2013 2014
‘10
‘11
‘12
‘13
‘14
Total Medical Membership (in millions)
Total Medical Membership
(In Millions)
36.1
35.7
37.5
33.3
34.3
2010 2011 2012 2013 2014
‘10
‘11
‘12
‘13
‘14
ANTHEM REDEFINING REINVENTING REASSURINGCOMMUNITYFINANCIALINFORMATION FINANCIALS CONTINUED
Financial and Membership Highlights
The information presented below is as reported in Anthem’s 2014 Annual Report on Form 10-K.
(Dollars in millions, except per share data)
2014
2013
2012
OPERATING RESULTS
Total operating revenue
Total revenue
Net income
EARNINGS PER SHARE
Basic net income
Diluted net income
Dividends per share (In whole dollars)
BALANCE SHEET INFORMATION
Total assets
Total liabilities
Total shareholders’ equity
MEDICAL MEMBERSHIP (000s)
Commercial and Specialty Business
Government Business
Total medical membership
CUSTOMER TYPE
Local Group
Individual
National:
National Accounts
BlueCard®
Total National
Medicare
Medicaid
FEP
Total medical membership by customer type
FUNDING ARRANGEMENT
Self-Funded
Fully-Insured
Total medical membership by funding arrangement
OTHER MEMBERSHIP
Life and Disability Members
Dental Members
Dental Administration Members
Vision Members
Medicare Advantage Part D Members
Medicare Part D Standalone Members
$ 73,021.7
73,874.1
2,569.7
$ 70,191.4
71,023.5
2,489.7
$ 60,514.0
61,497.2
2,655.5
$
$
9.31
8.99
1.75
8.34
8.20
1.50
$
8.26
8.18
1.15
$ 62,065.0
37,813.7
24,251.3
$ 59,574.5
34,809.3
24,765.2
$ 58,955.4
35,152.7
23,802.7
29,364
8,135
37,499
15,137
1,793
7,155
5,279
12,434
1,404
5,193
1,538
37,499
22,800
14,699
37,499
4,762
4,995
4,918
5,096
690
467
28,307
7,346
35,653
14,725
1,755
6,777
5,050
11,827
1,441
4,378
1,527
35,653
20,294
15,359
35,653
4,819
4,895
4,886
4,743
628
474
28,552
7,578
36,130
14,681
1,855
7,000
5,016
12,016
1,538
4,520
1,520
36,130
20,176
15,954
36,130
4,838
4,863
4,103
4,519
734
574
Note 1: The information presented above should be read in conjunction with the audited consolidated financial statements and accompanying notes and
Management’s Discussion and Analysis of Financial Condition and Results of Operations included in Anthem’s 2014 Annual Report on Form 10-K.
Note 2: Certain prior year amounts have been reclassified to conform to current year presentation.
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ANTHEM REDEFINING REINVENTING REASSURING FINANCIALS CONTINUED
Consolidated Balance Sheets
(In millions, except share data)
ASSETS
Current assets:
Cash and cash equivalents
Investments available-for-sale, at fair value:
Fixed maturity securities (amortized cost of $17,120.4 and $16,826.7)
Equity securities (cost of $1,303.7 and $1,168.5)
Other invested assets, current
Accrued investment income
Premium and self-funded receivables
Other receivables
Income taxes receivable
Securities lending collateral
Deferred tax assets, net
Other current assets
Assets held for sale
Total current assets
Long-term investments available-for-sale, at fair value:
Fixed maturity securities (amortized cost of $500.7 and $455.9)
Equity securities (cost of $27.0 and $27.4)
Other invested assets, long-term
Property and equipment, net
Goodwill
Other intangible assets
Other noncurrent assets
TOTAL ASSETS
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Current liabilities:
Policy liabilities:
Medical claims payable
Reserves for future policy benefits
Other policyholder liabilities
Total policy liabilities
Unearned income
Accounts payable and accrued expenses
Security trades pending payable
Securities lending payable
Short-term borrowings
Current portion of long-term debt
Other current liabilities
Liabilities held for sale
Total current liabilities
Long-term debt, less current portion
Reserves for future policy benefits, noncurrent
Deferred tax liabilities, net
Other noncurrent liabilities
TOTAL LIABILITIES
Commitments and contingencies—Note 13
SHAREHOLDERS’ EQUITY
Preferred stock, without par value, shares authorized—100,000,000;
shares issued and outstanding—none
Common stock, par value $0.01, shares authorized—900,000,000;
shares issued and outstanding—268,109,932 and 293,273,830
Additional paid-in capital
Retained earnings
Accumulated other comprehensive income
TOTAL SHAREHOLDERS’ EQUITY
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
December 31
2014
2013
$ 2,151.7
$ 1,582.1
17,467.4
1,906.6
20.2
161.4
4,825.5
2,117.0
308.9
1,515.2
280.4
1,474.6
—
17,038.2
1,735.5
16.3
168.8
3,968.7
1,063.3
235.7
969.8
383.0
1,677.5
906.9
32,228.9
29,745.8
504.4
31.5
1,695.9
1,944.3
17,082.0
7,958.1
619.9
449.9
31.3
1,542.6
1,801.5
16,917.2
8,441.0
645.2
$ 62,065.0
$ 59,574.5
$ 6,861.2
68.1
2,626.5
$ 6,127.2
63.1
2,073.2
9,555.8
1,078.1
3,651.8
66.2
1,515.3
400.0
625.0
1,861.2
—
18,753.4
14,127.2
671.3
3,226.0
1,035.8
8,263.5
822.7
3,426.3
95.2
969.7
400.0
518.0
1,674.7
181.4
16,351.5
13,573.6
723.0
3,325.2
836.0
37,813.7
34,809.3
—
—
2.7
10,062.3
14,014.4
171.9
2.9
10,765.2
13,813.9
183.2
24,251.3
24,765.2
$ 62,065.0
$ 59,574.5
The information presented above should be read in conjunction with the audited financial statements and accompanying notes included in Anthem’s 2014
Annual Report on Form 10-K.
/ P13
ANTHEM REDEFINING REINVENTING REASSURING
FINANCIALS CONTINUED
Consolidated Statements of Income
(In millions, except per share data)
REVENUES
Premiums
Administrative fees
Other revenue
Total operating revenue
Net investment income
Net realized gains on investments
Other-than-temporary impairment losses on investments:
Total other-than-temporary impairment losses on investments
Portion of other-than-temporary impairment losses recognized
in other comprehensive income
Other-than-temporary impairment losses recognized in income
Total revenues
EXPENSES
Benefit expense
Selling, general and administrative expense:
Selling expense
General and administrative expense
Total selling, general and administrative expense
Interest expense
Amortization of other intangible assets
Loss on extinguishment of debt
Total expenses
Income from continuing operations before income tax expense
Income tax expense
Income from continuing operations
Income (loss) from discontinued operations, net of tax
NET INCOME
Basic net income (loss) per share:
Basic—continuing operations
Basic—discontinued operations
Basic net income per share
Diluted net income (loss) per share:
Diluted—continuing operations
Diluted—discontinued operations
Diluted net income per share
Dividends per share
Years Ended December 31
2013
2014
2012
$ 68,389.8
4,590.6
41.3
73,021.7
724.4
177.0
$ 66,119.1
4,031.9
40.4
70,191.4
659.1
271.9
$ 56,496.7
3,934.1
83.2
60,514.0
686.1
334.9
(56.2)
(100.6)
(41.2)
7.2
1.7
3.4
(49.0)
(98.9)
(37.8)
73,874.1
71,023.5
61,497.2
56,854.9
56,237.1
48,213.6
1,490.1
10,258.3
11,748.4
600.7
220.9
81.1
1,526.9
8,426.0
9,952.9
602.7
245.3
145.3
1,586.9
7,093.6
8,680.5
511.8
233.0
—
69,506.0
67,183.3
57,638.9
4,368.1
1,808.0
2,560.1
9.6
3,840.2
1,205.9
2,634.3
(144.6)
3,858.3
1,207.3
2,651.0
4.5
$ 2,569.7
$ 2,489.7
$ 2,655.5
$
$
$
$
$
9.28
0.03
9.31
8.96
0.03
8.99
1.75
$
$
$
$
$
8.83
(0.49)
8.34
8.67
(0.47)
8.20
1.50
$
$
$
$
$
8.25
0.01
8.26
8.17
0.01
8.18
1.15
The information presented above should be read in conjunction with the audited financial statements and accompanying notes included in Anthem’s 2014
Annual Report on Form 10-K.
/ P14
ANTHEM REDEFINING REINVENTING REASSURING
FINANCIALS CONTINUED
Consolidated Statements of Comprehensive Income
(In millions)
NET INCOME
Other comprehensive (loss) income, net of tax:
Change in net unrealized gains/losses on investments
Change in non-credit component of other-than-temporary
impairment losses on investments
Change in net unrealized gains/losses on cash flow hedges
Change in net periodic pension and postretirement costs
Foreign currency translation adjustments
Other comprehensive (loss) income
Total comprehensive income
Years Ended December 31
2013
2014
2012
$ 2,569.7
$ 2,489.7
$ 2,655.5
118.6
(294.7)
189.9
(3.9)
(3.6)
(118.1)
(4.3)
1.7
3.0
172.7
1.4
4.5
0.1
(10.9)
0.6
(11.3)
(115.9)
184.2
$ 2,558.4
$ 2,373.8
$ 2,839.7
The information presented above should be read in conjunction with the audited financial statements and accompanying notes included in Anthem’s 2014
Annual Report on Form 10-K.
/ P15
ANTHEM REDEFINING REINVENTING REASSURING
FINANCIALS CONTINUED
Consolidated Statements of Cash Flows
(In millions)
OPERATING ACTIVITIES
Net income
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized gains on investments
Other-than-temporary impairment losses recognized in income
Loss on extinguishment of debt
(Gain) loss on disposal from discontinued operations
(Gain) loss on disposal of assets
Deferred income taxes
Amortization, net of accretion
Depreciation expense
Impairment of property and equipment
Share-based compensation
Excess tax benefits from share-based compensation
Changes in operating assets and liabilities:
Receivables, net
Other invested assets
Other assets
Policy liabilities
Unearned income
Accounts payable and accrued expenses
Other liabilities
Income taxes
Other, net
Years Ended December 31
2013
2012
2014
$ 2,569.7
$ 2,489.7
$ 2,655.5
(177.0)
49.0
81.1
(3.2)
(1.7)
30.7
744.5
106.5
7.9
168.9
(46.4)
(1,899.7)
(21.7)
405.5
1,240.6
255.1
(14.4)
(7.9)
(34.0)
(84.2)
(271.9)
98.9
145.3
221.8
3.9
59.1
800.9
107.9
47.7
146.0
(30.1)
(418.3)
(15.1)
(33.6)
(345.8)
(73.8)
303.6
(154.6)
9.3
(38.6)
(334.9)
37.8
—
—
4.7
127.5
633.6
107.1
66.8
146.5
(28.8)
189.9
(38.9)
79.2
(53.7)
(193.7)
(406.5)
(132.8)
(73.9)
(40.8)
Net cash provided by operating activities
3,369.3
3,052.3
2,744.6
INVESTING ACTIVITIES
Purchases of fixed maturity securities
Proceeds from fixed maturity securities:
Sales
Maturities, calls and redemptions
Purchases of equity securities
Proceeds from sales of equity securities
Purchases of other invested assets
Proceeds from sales of other invested assets
Settlement of non-hedging derivatives
Changes in securities lending collateral
Purchases of subsidiaries, net of cash acquired
Proceeds from sale of subsidiary, net of cash sold
Purchases of property and equipment
Proceeds from sales of property and equipment
Other, net
Net cash used in investing activities
(9,613.4)
(13,704.5)
(15,040.4)
8,066.0
1,318.7
(912.0)
746.5
(205.7)
124.7
(67.4)
(545.6)
—
740.0
(714.6)
88.0
(0.1)
10,977.9
1,836.8
(820.3)
721.0
(251.5)
127.1
(109.8)
(405.1)
—
—
(646.5)
39.2
1.3
13,675.9
1,781.5
(232.8)
422.7
(303.7)
35.5
(59.8)
307.9
(4,597.0)
—
(544.9)
0.4
3.1
(974.9)
(2,234.4)
(4,551.6)
(continued)
/ P16
ANTHEM REDEFINING REINVENTING REASSURING
FINANCIALS CONTINUED
Consolidated Statements of Cash Flows (continued)
(In millions)
FINANCING ACTIVITIES
Net repayments of commercial paper borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from short-term borrowings
Repayments of short-term borrowings
Changes in securities lending payable
Changes in bank overdrafts
Premiums paid on equity options
Repurchase and retirement of common stock
Cash dividends
Proceeds from issuance of common stock under employee stock plans
Excess tax benefits from share-based compensation
Net cash (used in) provided by financing activities
Effect of foreign exchange rates on cash and cash equivalents
Change in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Less cash and cash equivalents of discontinued operations at end of year
CASH AND CASH EQUIVALENTS OF CONTINUING OPERATIONS
AT END OF YEAR
Years Ended December 31
2013
2012
2014
$ (379.2)
2,700.0
(1,730.1)
2,050.0
(2,050.0)
545.6
173.0
—
(2,998.8)
(480.7)
301.3
46.4
(1,822.5)
(7.1)
564.8
1,586.9
2,151.7
—
$
(191.7)
1,250.0
(1,801.9)
1,100.0
(950.0)
405.0
9.9
(25.8)
(1,620.1)
(448.0)
524.7
30.1
(1,717.8)
2.2
(897.7)
2,484.6
1,586.9
(4.8)
$
(229.0)
6,468.9
(1,251.3)
642.0
(492.0)
(307.8)
(17.6)
—
(2,496.8)
(367.1)
110.8
28.8
2,088.9
1.1
283.0
2,201.6
2,484.6
(9.3)
$ 2,151.7
$ 1,582.1
$ 2,475.3
The information presented above should be read in conjunction with the audited financial statements and accompanying notes included in Anthem’s 2014
Annual Report on Form 10-K.
/ P17
ANTHEM REDEFINING REINVENTING REASSURING FINANCIALS CONTINUED
Market Price of Common Stock
Our common stock, par value $0.01 per share, is listed on the NYSE under the symbol “ANTM.” On February 5,
2015, the closing price on the NYSE was $137.23. As of February 5, 2015, there were 74,717 shareholders of
record of our common stock. The following table presents high and low sales prices for our common stock on
the NYSE for the periods indicated.
2014
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
2013
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
High
Low
$ 102.56
110.03
124.58
129.96
$ 81.84
90.75
106.52
108.92
$ 66.62
82.33
90.00
94.36
$ 58.75
65.82
80.75
83.13
/ P18
ANTHEM REDEFINING REINVENTING REASSURING CORPORATE
INFORMATION
Board of Directors
George A. Schaefer, Jr. 1 2 4 5 6
Chairman, Anthem, Inc.
Former Chairman and CEO,
Fifth Third Bank
R. Kerry Clark 2 3
Former Chairman and Chief Executive
Officer, Cardinal Health, Inc.
Robert L. Dixon, Jr. 2 4 6
Senior Vice President and Global Chief
Information Officer, PepsiCo, Inc.
Lewis Hay, III 2 4 5
Former Chairman and CEO,
NextEra Energy, Inc.
Julie A. Hill 2 3 6
Owner of the Hill Company
Ramiro G. Peru 2 3 5
Former Executive Vice President and
Chief Financial Officer,
Phelps Dodge Corporation
William J. Ryan 2 4 5 6
Former Chairman and CEO,
TD Banknorth Inc.
Joseph R. Swedish 5
President and Chief Executive Officer,
Anthem, Inc.
Elizabeth E. Tallett 2 3 6
Former Principal, Hunter Partners LLC
1–Chairman of the Board
4–Compensation Committee
2–Independent Director
5–Executive Committe
3–Audit Committee
6–Governance Committee
Executive Leadership Team
Joseph R. Swedish
President and Chief Executive Officer
Wayne S. DeVeydt
Executive Vice President and
Chief Financial Officer
Kenneth R. Goulet
Executive Vice President, President,
Commercial and Specialty Division
Peter D. Haytaian
Executive Vice President, President,
Government Business Division
Gloria M. McCarthy
Executive Vice President and
Chief Administrative Officer
Martin B. Silverstein, M.D.
Executive Vice President and
Chief Strategy Officer
Jose Tomas
Executive Vice President and
Chief Human Resources Officer
Samuel R. Nussbaum, M.D.
Executive Vice President, Clinical Health
Policy, and Chief Medical Officer
Thomas C. Zielinski
Executive Vice President and
General Counsel
/ P19
ANTHEM REDEFINING REINVENTING REASSURINGCORPORATE INFORMATION