Anthem
Annual Report 2017

Plain-text annual report

Anthem continues to invest in innovative solutions, including virtual care technologies such as LiveHealth Online, to meet the changing needs of our consumers— and all of the customers we’re privileged to serve HEALTHCARE CHANGES. ANTHEM LEADS. 2017 ANNUAL REPORT“Anthem has a significant opportunity to lead as we continue to unlock the full potential of our company. We are prioritizing investments, focusing on reducing costs, delivering innovative products and services to improve quality of care and outcomes, and creating a more agile, flexible organization that can quickly respond to the evolving needs of our consumers, customers, and the changing healthcare environment.” —Gail K. Boudreaux, President and CEO, Anthem We Lead By: Caring for the diverse needs of consumers More than 1 in 8 Americans is served by an Anthem affiliated health plan Building better outcomes Improving quality Innovative care programs to address the country’s most significant health challenges 70% of Medicare Advantage consumers in 4-Star plans or greater in 2018 Meeting the needs of our communities $40 million in Anthem Foundation- sponsored grants; 55,000 employee volunteer hours; $4.6 million raised through Associate Giving Program Creating value Tackling high drug costs More than 60% of healthcare spending in value-based care models New innovative pharmacy benefits management to reduce drug costs by $4 billion annually Driving innovation More than 35 million touch points by consumers using digital innovations such as LiveHealth Online, What’s My Status, and Anthem Engage Delivering strong 2017 financial performance $90 billion in revenue, more than 40% growth in 5 years; 56% increase in stock price; 8th consecutive year of dividend increases 2 Anthem 2017 Annual Report /To Our Shareholders: LETTER TO SHAREHOLDERS LETTER TO SHAREHOLDERS Letter from President and Chief Executive Officer To Our Shareholders: As we look at Anthem in 2017, we are proud of our results. Our ability to serve 40 million people— more consumers than ever before—along with strong performance in our businesses and a fifth year of increased operating revenue, positions us well to continue to deliver long-term, sustainable growth to our shareholders. But for me, 2017 was about more than the numbers. It was personal. I joined Anthem in November 2017 because amidst the rapidly changing landscape of healthcare, I saw a company ready to lead. I saw an organization of 56,000 employees, grounded in values I share and motivated to address some of the greatest challenges and opportunities our industry has ever faced. With each Anthem facility I visit and every employee I meet, I see examples and hear stories of the countless ways we are working and innovating to deliver a simpler, more affordable and more accessible healthcare experience for our consumers and their families. This report includes a collection of those stories—a window into the lives of the people we serve, the communities we impact and the future that is possible. Gail K. Boudreaux President and Chief Executive Officer Among them, you’ll read about our partnership with care providers at the Rocky Mountain Cancer Centers in Denver, where we are working to ensure that cancer patients receive the highest quality care by utilizing evidence-based treatment plans that also reduce side effects and hospitalizations. You’ll meet Jennifer, an Anthem Medicaid member and first-time mom, who was guided through a healthy pregnancy thanks to the support of two Anthem nurse case managers. And you’ll meet 94-year-old Barbara, who was one of the first consumers in Anthem’s pioneering “Togetherness Program,” which provides integrated healthcare, transportation, social activity and other services to address the growing issue of senior loneliness. We’ll tell you how our Anthem Foundation and employees lend a hand for communities in need. And you’ll read about how we’re impacting communities through bold advancements in addressing the opioid crisis and other chronic issues that impact health, like homelessness. Anthem 2017 Annual Report / 3 LETTER TO SHAREHOLDERS Just as importantly, we look ahead to a healthier future as we include some of the ways Anthem is collaborating with care providers to reward and enhance value-based, patient-centered care. And we share a window into the role of digital innovation in advancing greater access to care and a simpler, more personalized experience for consumers. For Anthem—and for me—each of these stories is part of something bigger. They point to what is possible. As healthcare reinvents itself, we have the ability, the vision and the values to redefine what’s possible. Building on our Anthem legacy, now is our opportunity to raise our performance, to execute relentlessly, to innovate boldly, and to deliver even greater impact on the affordability, accessibility, and quality of healthcare in America. Healthcare changes. And Anthem will lead. Gail K. Boudreaux President and Chief Executive Officer Anthem 2017 Annual Report / 4 LETTER TO SHAREHOLDERS Letter from George A. Schaefer, Jr., Lead Director Dear Fellow Anthem Shareholders, Thank you for your investment in Anthem and for trusting us to oversee your interests. Your Board’s mission is to represent the interests of all shareholders, not in the short term, but with a long-term perspective. We believe your interests are best served when the Company achieves sustainable results in a responsible manner. The Board is actively engaged in overseeing Anthem’s business strategies and performance to meet this objective. I am pleased to share specific actions that the Board has taken in the past year. Chief Executive Officer Succession & Independent Chair One of your Board’s most important responsibilities is to ensure an orderly and stable CEO succession process. To that end, in November 2017, we unanimously elected Gail K. Boudreaux to succeed Joseph R. Swedish as CEO and President, with Joe continuing to serve as Executive Chair of the Board until May 2018. The Board would like to recognize Joe for his significant contributions to the Company’s success over the past five years. We have determined that upon Joe’s retirement, the Board will be led once again by an independent Chair. In February 2018, we announced that Elizabeth E. Tallett, who is currently Chair of the Governance Committee, will assume the independent Chair of the Board position. Board Skills, Diversity & Refreshment Board succession planning is also essential to the Company’s success. As Lead Director, I have the privilege to work with a highly qualified and diverse group of Board colleagues who bring thought leadership, perspective and accountability to their roles in overseeing the talented executive team at Anthem. Refreshing your Board with new perspectives and ideas is critical to ensuring that it remains strategic and forward-looking. Over the past year, three new Directors have joined the Board and one Director has retired. In addition to Gail, who was appointed to the Board following her election as President and CEO, we are pleased to welcome new Board members Antonio Neri and Bahija Jallal, who both have extensive executive and financial experience, as well as Antonio’s information technology expertise and Bahija’s healthcare industry experience. Our Board is highly diverse in terms of background, expertise, nationality, ethnicity and gender, including four women directors and four directors from diverse ethnicities. The average director tenure is approximately six years. Anthem 2017 Annual Report / 5 LETTER TO SHAREHOLDERS Corporate Responsibility Anthem believes that corporate responsibility is embedded in our purpose and helps define us as an organization that is committed to creating a healthcare experience that is simpler, more accessible and more affordable for the consumers we serve. We are focused on living out this purpose through the work of our associates, through the philanthropic efforts of the Anthem Foundation, through our diversity and inclusion initiatives, and by implementing environmentally responsible business practices. In recognition of the importance of corporate responsibility, the Board’s Governance Committee is charged with monitoring the Company’s corporate social responsibility and environmental sustainability initiatives, to ensure they are effective and timely. On behalf of the Board, thank you for investing in Anthem. George A. Schaefer, Jr. Lead Director April 2, 2018 Anthem 2017 Annual Report / 6 PEOPLE WE SERVE Anthem’s HealthSun Medicare Advantage plan offers a unique, integrated approach to high- quality care for consumers. Here, care providers, consumers and employees stand together outside of one of our HealthSun clinics ENSURING QUALITY CANCER CARE LEADING THE WAY IN CARING FOR NEW MOTHERS MEETING THE CHANGING NEEDS OF SENIORS HELPING SOLVE INDUSTRY CHALLENGE THROUGH INNOVATIVE PARTNERSHIP Caring for the health of millions is a daunting responsibility. As a company devoted to delivering the best possible healthcare experience for all Americans, Anthem understands the complexity and enormity of that challenge. We are in the middle of an extraordinary period of change for the healthcare system, from one focused on the process of care delivery, to one that rewards the outcomes of care. We are already leading that change. Our groundbreaking work with care providers, through a wide variety of collaborative partnerships, is resulting in better patient outcomes. Our focus on the consumer has translated into equipping them with innovative programs, tools and resources that help meet their desire and the need to play a more active role in their own healthcare decisions. We are tackling head-on critical barriers to care, such as rising costs. And we are finding creative and even transformative ways to utilize our vast repositories of data to yield better clinical outcomes. We recognize that we are in a unique position to leverage our broad scope of experience to meet the challenges of this changing healthcare industry. And our 56,000 employees care deeply about making a difference in the lives of the people we have the privilege to serve and making healthcare more affordable and simpler to navigate. The stories that follow show how Anthem is leading the way toward a better healthcare experience, today and in the future. 7 Anthem 2017 Annual Report /PEOPLE WE SERVE Marcus Garcia, Director of Network Management at Rocky Mountain Cancer Centers Delivering Breakthrough Approaches to Ensure Quality Cancer Care One of the biggest issues in treating cancer today is that, thanks to enormous strides in pharmaceutical research and medical practice, there are more cancer treatment options than ever before. And these advances are saving lives: More than 15 million Americans—nearly one in 20—are survivors of cancer—and the number is growing steadily. Experts estimate that there will be 26 million cancer survivors by 2040. These new approaches also bring new challenges. About one in three people treated with chemotherapy does not receive a treatment plan that is consistent with current medical evidence and best practices. And patients are often hospitalized during treatment because of side effects that could be avoided by using less toxic regimens and more appropriate supportive care options. To address these challenges for our Commercial customers, we took an innovative leadership approach by creating The Cancer Care Quality Program, the first of its kind. Through the program, physicians have access to cancer treatment pathways that are fully based on medical evidence, peer-reviewed published literature, consensus guidelines and Anthem’s own well- established and researched clinical policies. These pathways are selected based on the clinical benefit they provide, their side effect profile, the strength of existing national guidelines and cost, which is considered after all other factors are assessed. And the impact of The Cancer Quality Care Program on the lives of patients has been substantial. The treatment pathways are focused on promoting the use of more effective and less toxic drug regimens, which has reduced inpatient hospital admissions by 18 percent and inpatient days in the intensive care unit by 14 percent, giving patients a better quality of life and more time at home with loved ones instead of in a hospital setting. Anthem 2017 Annual Report / 8 PEOPLE WE SERVE Providers are also welcoming the program. Last year, Anthem participating network oncologists chose the Cancer Care Quality Program treatments for 67 percent of their Anthem patients. “We feel like this is the right approach, and the correct direction to go,” says Marcus Garcia, Director of Network Management at Denver-based Rocky Mountain Cancer Centers. “Our doctors have always promoted evidence- based measures as we look at reducing treatment toxicity while enhancing the efficacy of care for our patients. Eliminating waste and unnecessary costs are a part of that. Anthem’s program supports us in all those efforts and it brings all the right people to the table to discuss and take advantage of important changes in developing more effective approaches to cancer care.” Anthem nurse manager, Felicia Watson Dandridge, with Amaris, daughter of an Anthem Medicaid Member Leading the Way in Caring for New Mothers The United States has the worst rate of infant deaths in the developed world and nearly 60 percent of these deaths are preventable. With Medicaid plans in 20 states, and nearly one out of every 10 babies born in the U.S. to Anthem consumers, Anthem is focused on addressing the healthcare challenges of all populations. Anthem 2017 Annual Report / 9 PEOPLE WE SERVE Della Gehl, an Anthem affiliated Medicare Advantage consumer and recent surgical patient, stays active thanks to her plan’s fitness benefit Meeting the Changing Needs of Seniors with Industry-Leading Quality Care Plans Every day, more than 11,000 Americans turn 65 and become eligible for Medicare, and that number continues to grow. Seniors—perhaps more than any group—are actively engaged in making decisions about their healthcare benefits, and able to assess the marketplace and select new coverage each year. The quality of the plan is one of the main factors consumers consider when making a Medicare Advantage choice. But, just two years ago, only a little more than 20 percent of consumers in Anthem’s affiliated Medicare Advantage health plans were in plans rated either four Stars or better in quality ratings, with five being the best possible score, from the Centers for Medicare & Medicaid Services (CMS). So, in order to meet and exceed the needs of this active and engaged population, Anthem had some work to do. Over the past several years, Anthem has been intensely focused on increasing the quality of and improving its plan offerings, and this effort has achieved impressive results. Now, more than 70 percent of Medicare Advantage consumers in Anthem’s affiliated health plans are in plans that have achieved either four Stars or better. In addition, Anthem is now the only national healthcare company to offer five five-Star plans. To achieve top ratings, Anthem health plans work closely with care providers to ensure that individuals who are enrolled in the plans receive the kind of care that improves their everyday lives. For instance, in one year, 73 percent of consumers enrolled in Anthem’s Medicare plan in Texas received assessments to see how well they are able to do daily activities, such as dressing, eating, and bathing— a 13 percentage point increase from the previous year. And Anthem Blue Cross and Blue Shield’s Medicare plan in Indiana nearly doubled the number of female consumers who, after experiencing a bone Anthem 2017 Annual Report / 10 PEOPLE WE SERVE We care about prevention. For 2017,* for consumers in Anthem affiliated Medicare Advantage plans: 68% 65% 94% 94% of women had a mammogram to screen for breast cancer of consumers had a screening for colon cancer of consumers received a body mass index assessment of consumers with diabetes received a kidney function test *Percentages are from 2017 Rating Year, which is based on consumers' plan experience in 2015 fracture, were enrolled in programs to manage their osteoporosis—either through bone density testing or prescription treatment. While measuring our progress in numbers and Star ratings is important, ultimately, it is about helping each consumer to get the care they need. Della Gehl, a retired New York City communications professional, is enrolled in one of Anthem’s affiliated health plans with high Star ratings and has witnessed firsthand the benefits of Anthem’s increased focus on quality. “Anthem has supported me in my health journey—before, during, and after my recent surgery—especially in helping me maintain an active lifestyle,” she says. “That’s why I don’t hesitate to tell my friends about Anthem when they ask for a recommendation regarding a Medicare Advantage plan.” “All the doctors I see—from my primary care provider to my specialists—are covered so I’ve never had to go out-of-network,” she says. “And I enjoy many other benefits, including the SilverSneakers® fitness program. What’s more, I’ve never had to wait long when I’ve reached out for assistance.” HealthSun Medicare Advantage consumer, Candida Domenech and HealthSun optometrist, Dr. Jessica Blanco; Candida credits HealthSun’s transportation, clinical, and customer services for saving her eyesight An Integrated Approach to Medicare: HealthSun In 2017, Anthem acquired America’s 1st Choice and HealthSun health plans. Both are based in South Florida and have a heritage of deep connectivity and engagement with the physician community and a focus on strong customer satisfaction. For example, America’s 1st Choice (which also operates in South Carolina), offers health plans with four and five Star ratings that serve chronic special needs consumers and plans for consumers who are “dual-eligible” for both Medicare and Medicaid. HealthSun offers an integrated care delivery model that provides pharmacy support, transportation services, a dedicated network of physician specialists, and integrated medical cost management. HealthSun’s health plans were rated 4.5 Stars in both 2017 and 2018. Take a tour of HealthSun’s special approach to integrated care here. Anthem 2017 Annual Report / 11 PEOPLE WE SERVE Cedars-Sinai Health System President and CEO Thomas M. Priselac Better Together: Innovative Partnership Helps Solve Industry Challenge For more than two decades, Cedars-Sinai Health System in Los Angeles and Anthem have shared a history of innovative and collaborative efforts. Cedars-Sinai partners with Anthem, first, in its role as a major healthcare provider for a large and diverse southern California patient population, and second, as an employer and Anthem Commercial customer, with Anthem’s California plan affiliate providing health coverage for 27,000 hospital employees and their families. “Anthem leads in innovation here in California and Cedars-Sinai is also known for innovation when it comes to medical care and its delivery,” says Cedars-Sinai Health System President and CEO Thomas M. Priselac. “So we have shared values with Anthem with regard to their role in the healthcare system.” Last year, when Cedars-Sinai noticed that an increasing number of its own employees were seeking care in its Emergency Department (ED) for conditions that could best be treated in a primary care or walk-in setting, they turned to their Anthem team for help. Together, Cedars-Sinai and Anthem worked to identify the causes of the ED visit increase and gain insights that could help them to continue to meet the needs of their own employees while addressing what has become an industry-wide problem—how ERs are utilized by patients when there are better and more cost-efficient alternatives. To find what was driving their employees to the ED, the hospital formed a multi-disciplinary committee to review their own data, as well as data provided by Anthem, which allowed the team to analyze usage trends at a much deeper level than they could on their own, including tracking time of day and reason for the visits. The committee discovered that a significant amount of the increased ED use was from overnight hospital employees who finished work at 7 a.m. and went to the ED because the Cedars-Sinai outpatient urgent care center didn’t open until 12 p.m. Additionally, based on usage trends, the committee hypothesized that employees were not aware of all available options they could pursue prior to going to the ED for treatment. Anthem 2017 Annual Report / 12 PEOPLE WE SERVE The team decided to take several actions. First, they established an employee walk-in clinic to serve employees coming off shift between 7 a.m. and 9 a.m. Second, they developed an education campaign to help employees understand other available care options and when and how to best use them. Also, Cedars-Sinai decided to offer Anthem’s LiveHealth Online telehealth service, to employees at no-cost. Within a few months, claims for ED visits among Cedars-Sinai employees fell by more than 30 percent. Laura Clapper, MD, Anthem Medical Director for Provider Enablement, worked with the project team at Cedars-Sinai. “One of the things that’s really special about working in collaboration is that we could do much more together as partners than we could if either one of us worked on it separately,” she says. Thomas believes, “A program like the (Cedar-Sinai) Emergency Department project can certainly be applied to other hospital settings and has the potential to be applied to other business settings as well. To succeed, those of us on the provider side as well as our colleagues on the health plan side and our friends at Anthem all have to play a key role. Collaboration is essential more than ever.” Anthem 2017 Annual Report / 13 COMMUNITIES WE IMPACT Anthem creates healthier communities by tackling big issues that impact health like childhood obesity, opioid use disorder and homelessness A HELPING HAND FOR THOSE IN NEED A UNIQUE APPROACH TO HOMELESSNESS AND BETTER HEALTH ADDRESSING NATIONAL OPIOID EPIDEMIC At Anthem, one of our priorities is to have a national impact on healthcare. But we are also a company that focuses on the communities we serve and where our employees live and work. We donate our time and our funds for causes that matter through the Anthem Foundation, one of our country’s largest corporate foundations, which supports thousands of organizations and millions of people, young and old. In 2017, Anthem Foundation’s $40 million in grants benefitted a variety of community-focused, and sometimes ground-breaking efforts. But it takes more than just a foundation and its philanthropic activities to make a difference. It takes a willingness to tackle the big challenges on many levels. In addressing a national health crisis like the opioid epidemic, we were among the first to use our expertise in drug prescribing and care delivery to find effective ways to impact overprescribing. It takes a willingness to address chronic issues that continue to plague our society, like addiction, homelessness and the challenges of growing old alone. The stories that follow describe some of the ways we are leading in using our resources to help the communities where we live and work. 14 Anthem 2017 Annual Report /COMMUNITIES WE IMPACT Anthem Foundation-supported Volunteer Day at the Indiana School for the Blind and Visually Impaired in Indianapolis Anthem Lends Helping Hand for Those in Need The Anthem Foundation, one of the largest corporate foundations in the United States, allows us to lead the way and lend a helping hand—to make an enormous impact in communities across America. The Anthem Foundation awarded more than $40 million in 2017, and more than $165 million in total grants since 2000, to organizations and programs that not only directly impact good health, but also address issues that are related to healthy minds, bodies and spirits. During 2017, Anthem Foundation funding: 6.5 million Trained more than 6.5 million Americans in Hands-Only CPR 7,500 Engaged more than 7,500 women in programs that reduce preterm births 46,442 Provided 46,442 cancer screenings at low or no cost 10 million Connected with more than 10 million kids through healthy, active lifestyle programs 4,500 Helped 4,500 Americans quit smoking 1,500 Provided adaptive sports opportunities for 1,500 youths with disabilities, as well as wounded warriors 12 Funded 12 state-of-the-art fitness centers in U.S. schools 10,000+ Proveded disaster relief to tens of thousands of individuals and families across the U.S. Anthem 2017 Annual Report / 15 COMMUNITIES WE IMPACT In addition, Anthem’s own employees help to extend the reach of the Foundation efforts through financial contributions. Year-round, Anthem employees give generously to health-related nonprofit organizations across the country through our Associate Giving Program, with a match from the Anthem Foundation. In 2017, employees gave $2.7 million through the program, which when paired with matching donations, rose to $4.6 million. Anthem employees also donate their own personal time to volunteer in the communities in which they live and work. Anthem employee at a shelter in Dallas, Texas, helping the community prepare for oncoming storms during Hurricane Harvey A Different Approach to Hurricane Relief Last year, Anthem employees logged more than 55,000 hours volunteering at food banks, Image Caption blood drives and numerous other volunteer services in their local communities, including disaster relief efforts, especially when Hurricane Harvey hit Texas hard in the late summer of 2017. During and immediately after the hurricane, while other organizations told the organizers of a Dallas Mega Shelter (where many Houston residents were temporarily housed), “Here’s what we can do.”; Anthem’s community relations representative, Yulandor Plater asked, “What can we do to help? What can we do for you?” In addition to helping the Dallas Mega Shelter, the Anthem Foundation provided grants and donations in other areas that were hit by the hurricane, and Anthem employees made sure food and medical supplies were delivered to at-risk consumers. Anthem 2017 Annual Report / 16 COMMUNITIES WE IMPACT Clyde, an early participant in Anthem’s Blue Triangle program, in his new home A Unique Approach to Homelessness and Better Health As a healthcare leader, Anthem understands that improving health involves more than just access to care. More than a half million people across the United States experience homelessness on any given night. It is a national issue and one that affects many of the communities Anthem serves. That is why, in May 2017, Anthem Blue Cross and Blue Shield in Indiana, in collaboration with the City of Indianapolis and Partners in Housing and Adult & Child, launched the innovative Blue Triangle program. This novel program addresses issues related to homelessness, healthcare, criminal justice and housing. The program provides participants with sustainable and secure housing that supports autonomy and offers connections to wrap-around services and access to healthcare which improve both health and quality of life. Since Blue Triangle launched, Anthem’s Indiana team has worked directly with nearly 90 participants and has helped to place 20 individuals in permanent housing. Clyde is one of those people. When he first came to Blue Triangle, Clyde had been homeless for nearly three years, shuttling back and forth between living on the streets and in homeless shelters. Suffering from a schizoaffective disorder, arthritis and substance abuse, Clyde encountered numerous barriers that affected his ability to find permanent housing and to manage his health. Today, he says that before Blue Triangle his life was “hectic,” because he was surrounded by fighting, robberies and drugs—all hindering his ability to get better. Once he arrived at Blue Triangle, things began to change. Clyde started receiving medications on a regular basis, gained access to a steady food source and obtained new clothing. With these changes, his opportunities for employment and housing also expanded. In October 2017, Clyde graduated the Blue Triangle program and moved into his own permanent home. Clyde now says he no longer has to worry about the chaos that once surrounded him. His life is much better. “I’m very happy to have my own place and a place to call home,” Clyde says. “Without the Blue Triangle program I would not have had access to the types of assistance I needed to start moving my life forward in a positive direction. I’m extremely grateful for the help I’ve received and feel like I’m on the path to achieving my goals and dreams.” Anthem 2017 Annual Report / 17 COMMUNITIES WE IMPACT Educational material from “What’s Up With Opioids?” a free online toolkit, funded by Anthem Foundation and the National Urban League Anthem Addresses National Opioid Epidemic The nation’s opioid crisis continued to escalate in 2017, with data revealing that there were 17 percent more deaths from drug overdoses between May 2016 and May 2017, compared to the previous year. It is one of the biggest health crises facing our country, killing more Americans under age 50 than any other cause. As one of the nation’s largest healthcare companies, Anthem is in a unique position to help treat those addicted to opioids and stop new generations from misusing these medications. “We have a scary new epidemic and it is devastating our communities,” says Craig Samitt, MD, Anthem’s Executive Vice President and President, Diversified Business Group. “At Anthem, we’re seeking to play a leadership role and make a difference in impacting the outcomes of care for those affected.” We reduced prescribed opioids filled at pharmacies by 30% over the past five years, two years ahead of our goal Anthem has taken a comprehensive approach to addressing the many facets of the opioid crisis. Given the complexity of this epidemic, our strategy is similarly multifaceted: We focus on prevention, treatment and recovery, and deterrence. The first part of Anthem’s strategy, focused on prevention, was to set what seemed like an ambitious goal. We targeted a 30 percent reduction by 2019 for prescribed opioids filled at pharmacies. When we reached that goal two years ahead of schedule, at the end of 2017, we moved the goalposts, setting a new 35 percent reduction target by 2019. Anthem 2017 Annual Report / 18 COMMUNITIES WE IMPACT The company’s affiliated individual, employer-sponsored and Medicaid health plans were among the first in the nation to limit coverage for first-time prescription fills of short-acting opioid medications to seven days for all consumers we cover. This change has meant significantly fewer pills are ending up unused in consumers’ medicine cabinets, where they could be potentially abused or sold on the black market. Anthem also operates a Pharmacy Home program for a number of our consumers, which makes it easier to monitor if a patient has received multiple prescriptions for opioids and other controlled substances. These programs have reduced hospital and emergency room admissions and increased the number of individuals in substance use treatment. “Providing access to opioid use disorder treatment and recovery is just as important as prevention,” adds Dr. Samitt. “Currently, only a small percentage of members who suffer from opioid use disorder receive behavioral health treatments, so Anthem set another ambitious target: to double the number of Anthem consumers who receive behavioral health services along with what is called Medication-Assisted Treatment for opioid addiction by the end of 2019. And we are deploying a variety of innovative programs to meet this need and address the mental and behavioral components of addiction through innovative partnerships and uniquely-tailored addiction treatment such as interventions available to individuals in the convenience of their own homes.” The final part of Anthem’s strategy, focused on deterrence, uses innovative data mining and analytic capabilities to uncover potential system abuses by providers and consumers, aiming to avoid potential addiction before it begins. Anthem 2017 Annual Report / 19 A HEALTHIER FUTURE Anthem employee Joyzelle Davis uses a LiveHealth Online kiosk at work. LiveHealth Online enables consumers to access care when and where it works best for them through their mobile devices and at their workplace INNOVATION IN HOW WE PAY FOR CARE APPLYING AN INTEGRATED APPROACH TO IMPROVE HEALTH AND REDUCE DRUG COSTS LOOKING AT HEALTH FROM A DIFFERENT PERSPECTIVE MAKING HEALTHCARE SIMPLER THROUGH DIGITAL INNOVATION LIVE HEALTHCARE IS JUST A CLICK AWAY At Anthem, we work hard each day to help consumers and customers navigate a complex and changing healthcare system, but we also work hard to build something better—for tomorrow. Anthem reaches one in every eight Americans through our affiliated health plans. And because we touch people’s lives so directly and so often, we recognize how much more we can and must accomplish. We know we can create a simpler, more affordable and more accessible healthcare system. We are already working on it. We have led the industry in focusing on outcomes that matter to consumers, while reining in costs that promise to otherwise put a significant burden on our economy. Beyond innovating in how healthcare is paid for, we are also innovating in how it’s delivered: We are accelerating healthcare offerings that leverage current and emerging technologies. And we are developing and enhancing our own digital and technology-based innovations. Our aim is to expand how healthcare is delivered to consumers, not only in traditional settings, but in their homes, workplaces and wherever and whenever they need access to care. Delivering the best possible healthcare, in the best possible way, is an opportunity to seize and imagine a better future. The stories that follow suggest some of those possibilities. 20 Anthem 2017 Annual Report / A HEALTHIER FUTURE Riverdale Family Practice in Bronx, NY Innovation in How We Pay for Care Anthem was one of the first to fully embrace the need to shift to a value-based model and we are continuing to lead the industry in developing innovative, integrated, community-based, value-based care solutions. More than 60 percent of all Anthem dollars spent on healthcare are in value-based arrangements, which reward value for delivering improved outcomes, quality and reduced costs. When we include efforts underway in collaboration with our BlueCross BlueShield Association partners, Anthem has value-based models in more states, with more care providers and benefitting more consumers than anyone else in the industry. One of Anthem’s most successful value-based care programs is called Enhanced Personal Health Care. Since its launch in 2012, the model has set the industry standard, supporting patient-centered primary care with millions invested in enabling and rewarding high-quality, efficient total care. And, it continues to grow. Last year, participation rose to 77,000 care providers and 9 million consumers across all lines of Anthem business. James Kesler, MD, a physician at Associates in Family Medicine, in Fort Collins, Colorado, is one of those participating healthcare providers. “For the longest period of time it’s been fee-for-service,” he says. “You come to the doctor, and you have a problem; we solve your problem; ‘Next.’ Now I think that we’re doing a better job of keeping people healthy. That paradigm shift—it’s a huge deal.” Providers who participate in Enhanced Personal Health Care receive up-front clinical coordination payments to offset required investments in clinical quality staff and population health management tools and can also earn a performance bonus in recognition of high-quality, efficient care. For many, this payment arrangement has been crucial to their growth and success. One such medical group, Riverdale Family Practice in the Bronx, N.Y, has gone from caring for 800 patients under Enhanced Personal Health Care in its first year to managing the health of 2,400 patients today while adding two physicians, and two more employees working on quality of care. “All in all, I think it’s been a great, successful program,” says Riverdale physician Frank Maselli, MD. What really makes participation worthwhile for providers isn’t just what it does for their practices, however—it’s the way it has helped their patients through a team-based approach to care. Participating providers leverage Enhanced Personal Health Care tools to access to a range of clinical and performance reports that support them in targeting costly gaps in care, waste and overuse, while also delivering evidence-based preventive care to patients. “I really think it gave us a vehicle to actually practice the type of medicine that we see makes a difference,” Dr. Kesler adds about Enhanced Personal Health Care. “It’s very simple. It’s made my job easier, and it’s kept my patients healthier.” Anthem 2017 Annual Report / 21 A HEALTHIER FUTURE In Anthem’s newly launched PBM, comprehensive drug management strategies will improve outcomes Applying an Integrated Approach to Improve Health and Reduce Drug Costs One of the biggest challenges for Anthem and our consumers is the rising costs of prescription drugs. Drug spend is the fastest growing area of healthcare costs—and that trend is predicted to continue over the next decade. Focusing on pharmacy costs alone versus the overall health of consumers addresses just one component of rising costs. That is why, in late 2017, Anthem announced the launch of its own pharmacy benefits manager (PBM) to help lead the industry forward by bringing to the market a holistic, integrated approach that leverages both medical and pharmacy data to reduce drug costs, identify gaps in care and improve medication adherence and outcomes. “With a total view of pharmacy and medical drug spend, we can prevent unnecessary utilization, and give care providers a more complete picture of their patients’ health, thus enabling more informed care,” says Brian Griffin, Executive Vice President and CEO of Anthem’s PBM. “Through an integrated approach using data analytics, we will break down silos and connect information together to know what provides high-quality care, not just more affordable care. We’ll also be able to help our customers by identifying and sharing opportunities to impact their health and provide them with a simplified experience.” The PBM, which will become fully operational in 2020, will leverage Anthem’s already existing integrated pharmacy and medical approach, improve affordability, and achieve greater than $4 billion annually in gross savings. “We are excited about the opportunity to not only lead the industry, but also to make a difference for our customers by zeroing in on the right member, right drug, right time, right setting, right duration, right dosage, and right benefit,” Brian says. Anthem 2017 Annual Report / 22 A HEALTHIER FUTURE Barbara Emery, 94, one of the early participants in CareMore Health’s Togetherness Program, along with Armando Contreras, her CareMore Togetherness Program Connector Looking at Health from a Different Perspective In 2017, Anthem’s CareMore Health introduced the Togetherness Program, a first-of-its-kind approach to tackling loneliness, a condition that impacts the health of seniors and affects more than 40 percent of those over 65. The program is one example of Anthem’s leadership in delivering benefits and better care to serve the needs of a growing and often vulnerable population Anthem 2017 Annual Report / 23 A HEALTHIER FUTURE Anthem Engage, an integrated digital health platform designed to create a personalized consumer experience Making Healthcare Simpler through Innovation For the more than 40 million consumers in Anthem affiliated health plans, the way they shop for groceries, watch television or listen to music has changed dramatically during the past few years. Today, almost 80 percent of Americans own a smartphone and spend up to five hours per day “virtually” on their mobile devices. In a world that has become much more on demand and rapid delivery, Anthem’s challenge is to create a healthcare experience that provides the same convenience and simplicity. With this in mind, in 2017, Anthem launched Engage—a robust digital platform that combines information about a consumer’s health plan, care provider network and personalized tools for health and well-being in one application. “Consumers are busy, on-the-go people, and we want to streamline their health management so it fits seamlessly into their lifestyle,” explains Tim Skeen, Anthem Senior Vice President and Chief Information Officer. “What’s revolutionary about Engage is that it is the only app that covers in one place the full spectrum of an individual’s health—from personal tools to manage wellness, to cost and quality information, and resources to manage specific health conditions. Engage essentially works as a personalized digital healthcare assistant.” Anthem 2017 Annual Report / 24 A HEALTHIER FUTURE Engage operates from a simple principle—individuals should be empowered to make decisions about their health and their healthcare that are right for them. Engage provides consumers with cost and quality information on care providers, in addition to details about their specific healthcare coverage, medical claims status, prescriptions, Health Savings Account balances, and employer benefits. Consumers can also access a wide range of Anthem programs and resources through the app, and can synchronize the app with fitness and health monitors to conveniently track exercise, food and sleep data to gain better insight into their overall health. More than 800,000 Anthem consumers are already using Engage, and we expect that number to double in 2018. Shane Hornbuckle, an Atlanta-based Anthem consumer and father of three, credits Engage with saving him time and keeping his family’s healthcare information organized. “Looking for healthcare after hours or checking on the status of health claims used to require a call to customer service or trying to remember how to access my account online,” says Shane. “With the Engage app, I can easily find a care provider and access my coverage information. There’s a sense of security that comes with knowing where everything is and having it at my fingertips anytime I need it.” Anthem recently introduced several other digital innovations with the same goal in mind—making the healthcare experience simpler. They include Pay My Bills, mobile bill-pay capabilities that allow consumers to pay premiums directly from their mobile device quickly and conveniently; What’s My Status, which provides consumers with real- time updates on their claims; and No More Cards, which eliminates the need for a physical ID card by providing a digital card accessible through a consumer’s mobile device. Consumers appreciate the convenience of these digital innovations, with nearly 195,000 premium payments processed to-date through Pay My Bills. “The digital innovations that we launched in 2017 have been really well received by consumers,” said Tim. “As the digital world around us continues to evolve and become more complex, we need to work even harder to deliver even more innovative solutions that exceed consumers’ needs and lead our industry.” While digital innovation can be complex, the benefit for consumers is fairly simple. As Shane says, “receiving a text message notifying me that my claim is taken care of while at my child’s track meet, allows me to cross that off my list of concerns and focus on what matters most. Anticipating and understanding my needs really sends an underlying message that Anthem cares.” Anthem 2017 Annual Report / 25 A HEALTHIER FUTURE Elementary school teacher Charlene Hinshaw, one of more than 20 million consumers who had access to LiveHealth Online in 2017 through their Anthem affiliated health plan Live Healthcare is just a Click Away While technology innovations in healthcare have typically been focused on efficiency improvements for care providers—such as Electronic Medical Records (EMRs), online appointment scheduling, and bill payment systems— at Anthem, it also includes enabling consumers to access care in a way that works best for them, emphasizing accessibility in an on-demand, app-driven climate, through innovations like LiveHealth Online, a video healthcare service. Charlene Hinshaw, who teaches coding to young students at Carrollton Elementary School in Virginia—and therefore is well versed in the value of technology—has experienced the benefits of video healthcare visits. “Being a teacher,” she says, “my hours are not really conducive to getting doctor’s appointments.” It was the end of the summer and she was in class busy preparing for the start of school when she began to feel sick. “I tried to get a doctor appointment but that didn’t work. Since it wasn’t an emergency, I thought, ‘Oh well, I’ll just let it go.’” Charlene’s husband encouraged her to try LiveHealth Online instead. “It’s so hard to take time off. You have to take a half or a whole day to go to the doctor. But you can do LiveHealth Online on your 30-minute lunch break if you needed to. I tell everybody I know about it and I would do it again and again.” LiveHealth Online allows consumers to connect via video with healthcare professionals who can provide immediate diagnosis and treatment of acute but non-urgent medical conditions. The visit cost is often less than an office visit and is available 24/7. In addition to primary care physicians, LiveHealth Online also offers access to some specialty care providers. For instance, consumers can schedule visits with licensed therapists, psychologists and board- certified psychiatrists to discuss behavioral health conditions such as anxiety, depression, stress, relationships or family issues. In 2017, Anthem also expanded LiveHealth Online services to provide postpartum care for moms via online visits with a lactation consultant, counselor or registered dietitian. These professionals offer guidance on nursing positions, low milk production, formula feeding, proper nutrition when breastfeeding and introducing solids. LiveHealth Online also launched the first telehealth platform to a full Spanish Language service, called Cuidado Médico in 2017. With more than 41 million native Spanish speakers and an additional 11.6 million bilingual consumers in the United States, Cuidado Médico is helping to reduce the language disparity for this often-underserved community while at the same time, increasing their access to care. Anthem 2017 Annual Report / 26 Financial Information 27 Anthem 2017 Annual Report /Financial and Membership Highlights (dollars in millions, except per share data) 2017 2016 2015 Operating Results Total operating revenue Total revenue Net income Net Income Per Share Basic Diluted Dividends per share Balance Sheet Information Total assets Total liabilities Total shareholders’ equity Medical Membership (000s) Commercial & Specialty Business Government Business Total Medical Membership Customer Type Local Group Individual National: National Accounts BlueCard® Total National Medicare Medicaid FEP® Total Medical Membership Funding Arrangement Self-Funded Fully-Insured Total Medical Membership Other Membership Life and Disability Members Dental Members Dental Administration Members Vision Members Medicare Advantage Part D Members Medicare Part D Standalone Members $89,061.2 90,039.4 3,842.8 $ 14.70 14.35 2.70 $70,540.0 44,037.1 26,502.9 30,662 9,582 40,244 15,870 1,588 7,683 5,521 13,204 1,545 6,475 1,562 40,244 24,966 15,278 40,244 4,700 5,864 5,342 6,867 702 318 $84,194.0 84,863.0 2,469.8 $ 9.39 9.21 2.60 $65,083.1 39,982.7 25,100.4 30,384 9,535 39,919 15,429 1,664 7,741 5,550 13,291 1,438 6,527 1,570 39,919 24,688 15,231 39,919 4,732 5,846 5,294 6,388 629 350 $78,404.8 79,156.5 2,560.0 $ 9.73 9.38 2.50 $61,717.8 38,673.7 23,044.1 29,678 8,921 38,599 15,241 1,675 7,355 5,407 12,762 1,439 5,914 1,568 38,599 23,666 14,933 38,599 4,849 5,206 5,282 5,641 622 371 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 2017 Annual Report on Form 10-K. 28 Anthem 2017 Annual Report /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 $17,054.4 and $16,991.8) Equity securities (cost of $3,098.1 and $1,076.1) Other invested assets, current Accrued investment income Premium and self-funded receivables Other receivables Income taxes receivable Securities lending collateral Other current assets Total current assets Long-term investments available-for-sale, at fair value: Fixed maturity securities (amortized cost of $556.0 and $524.6) Equity securities (cost of $26.7 and $27.2) 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 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 December 31, 2017 December 31, 2016 $ 3,608.9 $ 4,075.3 17,377.3 3,599.2 17.2 162.5 6,184.9 2,266.5 341.9 455.1 2,249.3 36,262.8 560.8 32.8 3,343.8 2,174.9 19,231.2 8,368.4 565.3 17,163.1 1,468.5 15.8 164.5 5,860.8 2,536.6 168.7 1,079.8 1,781.8 34,314.9 524.4 31.4 2,240.5 1,977.9 17,561.2 7,964.9 467.9 $70,540.0 $65,083.1 $ 7,991.5 69.9 2,950.3 11,011.7 860.3 5,024.4 112.6 454.4 1,275.0 1,274.6 3,343.0 23,356.0 17,382.2 647.3 1,726.5 925.1 44,037.1 $ 7,892.6 71.8 2,221.1 10,185.5 971.9 4,014.9 93.5 1,078.9 440.0 928.4 3,581.3 21,294.4 14,358.5 666.1 2,779.9 883.8 39,982.7 (continued) 29 Anthem 2017 Annual Report /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—256,084,913 and 263,747,395 Additional paid-in capital Retained earnings Accumulated other comprehensive loss Total shareholders’ equity Total liabilities and shareholders’ equity — — 2.6 8,547.4 18,054.4 (101.5) 26,502.9 $ 70,540.0 2.6 8,805.1 16,560.6 (267.9) 25,100.4 $65,083.1 The information presented above should be read in conjunction with the audited consolidated financial statements and accompanying notes included in Anthem’s 2017 Annual Report on Form 10-K. 30 Anthem 2017 Annual Report /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 financial instruments 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 (loss) 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 (gain) loss on extinguishment of debt Total expenses Income before income tax expense Income tax expense Net income Net income per share Basic Diluted Dividends per share Years Ended December 31 2017 2016 2015 $ 83,647.7 5,380.4 33.1 89,061.2 866.5 144.8 (34.7) 1.6 (33.1) $ 78,860.1 5,298.8 35.1 84,194.0 779.5 4.9 (147.1) 31.7 (115.4) $ 73,385.1 4,976.6 43.1 78,404.8 677.6 157.5 (99.9) 16.5 (83.4) 90,039.4 84,863.0 79,156.5 72,236.2 66,834.4 61,116.9 1,395.5 11,254.1 12,649.6 739.0 168.4 282.4 86,075.6 3,963.8 121.0 1,391.5 11,166.4 12,557.9 723.0 192.3 — 80,307.6 4,555.4 2,085.6 1,441.1 11,093.7 12,534.8 653.0 230.1 (9.3) 74,525.5 4,631.0 2,071.0 $ 3,842.8 $ 2,469.8 $ 2,560.0 $ $ $ 14.70 14.35 2.70 $ $ $ 9.39 9.21 2.60 $ $ $ 9.73 9.38 2.50 The information presented above should be read in conjunction with the audited financial statements and accompanying notes included in Anthem’s 2017 Annual Report on Form 10-K. 31 Anthem 2017 Annual Report / Consolidated Statements of Comprehensive Income (In millions) Net income Other comprehensive income (loss), 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 income (loss) Total comprehensive income Years Ended December 31 2017 $3,842.8 2016 2015 $2,469.8 $2,560.0 172.5 4.4 (64.6) 51.3 2.8 166.4 117.9 5.4 (87.3) (13.4) 2.1 24.7 (384.3) (5.6) (45.2) (26.0) (3.4) (464.5) $4,009.2 $2,494.5 $2,095.5 The information presented above should be read in conjunction with the audited financial statements and accompanying notes included in Anthem’s 2017 Annual Report on Form 10-K. 32 Anthem 2017 Annual Report / 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 financial instruments Other-than-temporary impairment losses recognized in income Loss (gain) on extinguishment of debt 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 Net cash provided by operating activities 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 Changes in collateral and settlement of non-hedging derivatives Changes in securities lending collateral Purchases of subsidiaries, net of cash acquired Purchases of property and equipment Proceeds from sales of property and equipment Other, net Net cash used in investing activities Financing activities Net proceeds from (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 call options Proceeds from sale of put options Repurchase and retirement of common stock Change in collateral and settlements of debt-related derivatives Years Ended December 31 2017 2016 2015 $ 3,842.8 $ 2,469.8 $ 2,560.0 (144.8) 33.1 282.4 13.0 (1,272.1) 779.7 110.7 2.5 169.6 — (22.2) (35.5) (629.0) 731.6 (120.1) 921.8 (120.2) (193.9) (164.6) 4,184.8 (4.9) 115.4 — 4.5 126.9 807.8 104.0 44.8 164.6 (53.5) (1,380.5) (19.4) (127.7) 321.7 (173.6) 182.3 605.7 178.8 (96.5) 3,270.2 (157.5) 83.4 (9.3) 16.0 (65.9) 802.1 105.8 1.8 148.2 (95.8) (42.9) 5.9 33.8 193.0 33.9 (123.4) 686.4 41.5 (5.1) 4,211.9 (9,794.6) (10,157.7) (9,792.0) 7,931.7 1,847.6 (5,416.3) 3,462.5 (1,163.8) 219.0 64.9 624.5 (2.079.6) (799.5) 9.3 11.9 (5,082.4) 174.6 5,457.8 (2,815.1) 5,835.0 (5,000.0) (624.5) 71.0 — 0.9 (1,997.7) (149.0) 8,636.0 1,418.6 (1,476.3) 1,592.8 (433.1) 304.9 (34.5) 222.0 — (583.6) — (3.0) (513.9) (53.2) — — 2,400.0 (2,500.0) (222.0) 513.8 — — — (360.4) 8,909.2 1,313.6 (1,561.4) 1,471.1 (505.8) 85.9 (36.5) 214.4 (638.9) (638.2) 35.3 (8.2) (1,151.5) (682.2) 1,226.5 (2,697.2) 2,760.0 (2,620.0) (214.4) (243.8) (16.7) 16.6 (1,515.8) — (continued) 33 Anthem 2017 Annual Report / Cash dividends Proceeds from issuance of common stock under employee stock plans Taxes paid through withholding of common stock under employee stock plans Excess tax benefits from share-based compensation Net cash provided by (used in) 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 (704.9) 225.3 (46.5) — 426.9 4.3 (466.4) 4,075.3 (684.0) 119.4 (65.7) 53.5 (798.6) 4.1 1,961.8 2,113.5 (656.6) 186.0 (95.9) 95.8 (3,093.3) (5.3) (38.2) 2,151.7 $ 3,608.9 $ 4,075.3 $ 2,113.5 The information presented above should be read in conjunction with the audited financial statements and accompanying notes included in Anthem’s 2017 Annual Report on Form 10-K. 34 Anthem 2017 Annual Report /Common Stock Our common stock, par value $0.01 per share, is listed on the NYSE under the symbol “ANTM.” On February 9, 2018, the closing price on the NYSE was $231.71. As of February 9, 2018, there were 63,695 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. 2017 First Quarter Second Quarter Third Quarter Fourth Quarter 2016 First Quarter Second Quarter Third Quarter Fourth Quarter High Low $170.79 194.94 198.98 236.39 $144.69 148.00 143.18 148.26 $140.50 163.87 179.40 182.31 $115.63 122.91 122.52 114.85 35 Anthem 2017 Annual Report /2017 Corporate Information Anthem is working to transform health care with trusted and caring solutions. Our health plan companies deliver quality products and services that give members access to the care they need. With over 73 million people served by our affiliated companies, including more than 40 million enrolled in our family of health plans, we are one of the nation’s leading health benefits companies. We are an independent licensee of the Blue Cross and Blue Shield Association. We serve our members as the Blue Cross licensee for California and as the Blue Cross and Blue Shield, or BCBS, licensee for Colorado, Connecticut, Georgia, Indiana, Kentucky, Maine, Missouri (excluding 30 counties in the Kansas City area), Nevada, New Hampshire, New York (in varying counties as BCBS, Blue Cross or Empire BlueCross BlueShield HealthPlus), Ohio, Virginia (excluding the Northern Virginia suburbs of Washington, D.C.) and Wisconsin. We also conduct business through arrangements with other BCBS licensees in Louisiana, South Carolina and western New York. Through our subsidiaries, we also serve customers in over 15 states across the country as America’s 1st Choice, Amerigroup, CareMore, Freedom Health, HealthLink, HealthSun, Optimum HealthCare, Simply Healthcare and/or Unicare. We are licensed to conduct insurance operations in all 50 states and the District of Columbia through our subsidiaries. To find out more about us, go to www.antheminc.com. Corporate Headquarters Anthem, Inc. 120 Monument Circle Indianapolis, Indiana 46204-4903 www.antheminc.com 2017 Account Questions Our transfer agent, Computershare, can help you with a variety of shareholder-related services, including:  • Account status  • Sale of purchase of shares  • Change of address  • Transfer of stock Account Questions You can call Computershare toll-free at: (866) 299-9628 Monday through Friday, excluding holidays, from 8:00 a.m. to 8:00 p.m. Eastern Time. Written correspondence can be sent to: Anthem Shareholder Services c/o Computershare Trust Company, N.A. P.O. Box 43037 Providence, Rhode Island 02940-3037 Please include your name, address and telephone number or e-mail address with all correspondence. E-mail correspondence can be sent to antheminc@computershare.com. 36 Anthem 2017 Annual Report /CORPORATE INFORMATION Executive Leadership Joseph R. Swedish* Executive Chairman Gail K. Boudreaux President and Chief Executive Officer John E. Gallina Executive Vice President and Chief Financial Officer Brian T. Griffin Executive Vice President and CEO, PBM Peter D. Haytaian Executive Vice President and President, Commercial and Specialty Business Division Executive Leadership titles as of March 2018. Gloria McCarthy Executive Vice President and Chief Administrative Officer Craig Samitt, M.D. Executive Vice President and President, Diversified Business Group Jacquelyn H. Wolf Executive Vice President and Chief Human Resource Officer Thomas C. Zielinski Executive Vice President and General Counsel *Mr. Swedish served as Chairman, CEO and President until November 2017. He will serve as Executive Chairman until May 2018. Board of Directors Gail K. Boudreaux Lewis Hay, II3, 5, 6 Antonio F. Neri3, 4 Joseph R. Swedish1 1Executive Chairman 2Lead Director Information as of March 2018. R. Kerry Clark3, 4 Julie A. Hill3, 4 Ramiro G. Peru3,4 Elizabeth E. Tallett3, 5, 6 3Independent Director 4Audit Committee Robert L. Dixon, Jr.3, 5, 6 Bahija Jallal3, 5, 6 George A. Schaefer, Jr.2, 3, 4 5Compensation Committee 6Governance Committee Anthem 2017 Annual Report / 37 CORPORATE INFORMATION Awards & Corporate Recognition                   Adam Smith Awards, Treasury Today, best AR Aster Awards Honoring Excellence in Healthcare Advertising, gold, silver and bronze awards in six categories Best Companies for Women, Comparably Best Places to Work for LGBT Equality, Corporate Equality Index Human Rights Campaign, 2015–2018 CEO Cancer Gold Standard, 2013–2017 Corporate Champion, Women’s Corporate Forum of New York Corporate Inclusion Index, Hispanic Association on Corporate Responsibility, 2011–2017 Disability Equality Index, Best Places to Work, 2015–2017 (founding partner) Excellence Award for Care Management Strategies for the “Opioid Overutilization Management Program,” Pharmacy Benefit Management Institute (PBMI) Leading Disability Employer Seal, National Organization on Disability, 2016-2017 Military Spouse Friendly Employers, MilitaryFriendly.com, 2010–2018 Multicultural Health Care Distinction Award, National Committee for Quality Assurance Silver Stevie Award, Insurance Category, anthem.com Top Companies for Executive Women, National Association for Female Executives (NAFE) 2009–2013, 2017 Top 50 Companies for Diversity, DiversityInc Magazine, 2008–2017 (#20) Top 50 Companies Hiring for Flexible Jobs, FlexJobs.com, 2017 Top 100 Military Friendly Employers, MilitaryFriendly.com, 2010–2017 Training Top 125, Training Magazine, 2016–2017 Anthem 2017 Annual Report / 38 

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