WellPoint Unveils Plan for Covering America's Uninsured

Nation’s Largest Health Benefits Provider Calls for Universal Coverage of Children, Pledges to Reach out to the Uninsured with New Products and Charitable Donations

January 8, 2007

Indianapolis, IN - WellPoint, Inc. (NYSE: WLP), the nation’s largest health care benefits provider, today unveiled a comprehensive plan to help address the growing ranks of the uninsured. The WellPoint plan is a blend of public and private initiatives aimed at ensuring universal coverage for children and providing new and more attractive options for the working uninsured. This plan is a part the company’s mission to improve the lives of the people it serves and the health of its communities.

“Together, we can take steps now that will make it possible for more Americans than ever before to have access to health coverage, while also ensuring that people get the preventive care they need,” said Larry C. Glasscock, chairman, president and chief executive officer of WellPoint. “A core focus of our company’s strategy is to reduce the rate of the uninsured and under-served. The plan we’ve developed will broaden the reach of our health care system to include those who need it most.”

Over 46 million Americans under the age of 65 did not have health insurance in 2005. Approximately 45 percent of these individuals are either eligible for public programs and not enrolled or voluntarily choose not to purchase coverage, while the remaining 55 percent simply cannot afford private insurance.

To improve access to health care for children, WellPoint supports the expansion of state health care programs to cover more of the 9 million American children who went without coverage last year. Specifically, WellPoint urges states to expand their programs to cover children in families that earn up to 300 percent of the federal poverty level (FPL) which means that for a family of four, they can earn up to $60,000. The plan also includes a call for improved outreach to enroll the majority of uninsured children—up to 70 percent—who are already eligible for public programs.

In addition to opening up public programs to more children, the WellPoint plan also calls for the expansion of state health care programs to include parents in families that earn up to 200 percent of FPL (a family of four could earn up to $40,000) and for childless adults who earn up to 100 percent of FPL ($9,800 for a single adult). If adopted by all states, the proposed expansion of public programs, coupled with a successful outreach campaign, could provide coverage to 25 million people who are currently uninsured. To help pay for the changes to these programs, WellPoint will support an increase in tobacco taxes.

The WellPoint plan also lays out a number of innovative public-private partnership opportunities that can create a bridge to self-sufficiency for individuals who do not qualify for public programs. For example, WellPoint supports the expansion of premium assistance programs for families that may need extra help paying for their private insurance, as well as state high risk pools to help provide coverage for those who have difficulty purchasing insurance in the individual market.

Beyond partnering with the federal and state governments, WellPoint is also committed to continue bringing innovative products to the marketplace that are tailored specifically to groups that have traditionally forgone health insurance. Products designed for young Americans who are either unable or disinclined to purchase traditional health insurance, innovative products aimed at small businesses that have historically been incapable of offering coverage to its employees, and a suite of products aimed at Hispanics, have created new and affordable health care options and are currently in the process of being expanded to new markets.

“In 2006 approximately 380,000 previously uninsured individuals found health care security for the first time through one of our company’s individual products. We will continue to develop innovative and affordable products that appeal to individuals and small businesses and continue to help reduce the ranks of the uninsured,” said Jude Thompson, senior vice president of Individual Business for WellPoint. “But we recognize that additional measures are required to provide that same health security to all Americans.”

WellPoint’s plan also includes a financial commitment from the company’s charitable foundation of at least $30 million over the next three years to support community and state-based programs related to the company’s uninsured initiatives across the country that are helping to provide access to care.

About WellPoint, Inc.
WellPoint’s mission is to improve the lives of the people it serves and the health of its communities. WellPoint, Inc. is the largest care health benefits company in terms of commercial membership in the United States. Through its nationwide networks, the company delivers a number of leading health benefit solutions through a broad portfolio of integrated health care plans and related services, along with a wide range of specialty products such as life and disability insurance benefits, pharmacy benefit management, dental, vision, behavioral health benefit services, as well as long term care insurance and flexible spending accounts. Headquartered in Indianapolis, Indiana, WellPoint is an independent licensee of the Blue Cross and Blue Shield Association and serves its members as the Blue Cross licensee for California; the Blue Cross and Blue Shield licensee for Colorado, Connecticut, Georgia, Indiana, Kentucky, Maine, Missouri (excluding 30 counties in the Kansas City area), Nevada, New Hampshire, New York (as Blue Cross Blue Shield in 10 New York City metropolitan and surrounding counties and as Blue Cross or Blue Cross Blue Shield in selected upstate counties only), Ohio, Virginia (excluding the Northern Virginia suburbs of Washington, D.C.), Wisconsin; and through UniCare. Additional information about WellPoint is available at www.wellpoint.com.