WellPoint Reports 2004 Second Quarter Earnings of $1.86 Per Diluted Share.THOUSAND OAKS Thousand Oaks, residential city (1990 pop. 104,352), Ventura co., S Calif., in a farm area; inc. 1964. Avocados, citrus, vegetables, strawberries, and nursery products are grown. , Calif. -- WellPoint Noun 1. wellpoint - a perforated tube driven into the ground to collect water from the surrounding area well point tube, tubing - conduit consisting of a long hollow object (usually cylindrical) used to hold and conduct objects or liquids or gases Health Networks Inc. (NYSE NYSE See: New York Stock Exchange :WLP WLP WebLogic Portal (Bea Systems) WLP Wafer Level Packaging WLP Women's Learning Partnership (Bethesda, MD) WLP Workplace Learning & Performance WLP World Library Partnership, Inc. ), the nation's second largest health insurer An individual or company who, through a contractual agreement, undertakes to compensate specified losses, liability, or damages incurred by another individual. An insurer is frequently an insurance company and is also known as an underwriter. , today announced that net income for the quarter ended June June: see month. 30, 2004 was $299.9 million, or $1.86 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. Net income for the second quarter of 2003 was $224.5 million, or $1.49 per diluted share. Medical membership was 15.5 million at June 30, 2004, compared with 14.1 million at June 30, 2003. The increase in membership was primarily the result of the acquisition of Cobalt Corporation on September September: see month. 24, 2003, strong sales in key geographies and growth in "host" members served through BlueCard--the Blue Cross Blue Shield Blue Shield A US not-for-profit health care insurer that is a reimbursement intermediary for physicians. Cf Blue Cross. Association national program for multi-state employers. Specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. membership increased by more than 350,000 during the second quarter of 2004 to 46.2 million at June 30, 2004. Specialty membership decreased by 3.2 million from June 30, 2003, primarily due to the loss of a pharmacy benefit management A Pharmacy Benefit Manager (PBM) is a third party administrator of prescription drug programs. They are primarily responsible for processing and paying prescription drug claims. account for which the Company provided limited services, partially offset by acquired members from Cobalt Corporation in September 2003. Highlights from the second quarter of 2004 include: --Revenues totaled $5.8 billion, up 17.0 percent from the second quarter of 2003 --Blue Cross of California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). paid $56.9 million in physician bonus incentives to 134 participating physician groups under its HMO HMO health maintenance organization. HMO n. A corporation that is financed by insurance premiums and has member physicians and professional staff who provide curative and preventive medicine within certain financial, Quality Scorecard --Blue Cross of California, Blue Cross Blue Shield of Missouri Missouri, state, United States Missouri (mĭz  r`ē, –ə), one of the midwestern states of the United States. and
UNICARE each announced that they have arranged to offer health savings
accounts A Health Savings Account (HSA) is a tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a High Deductible Health Plan (HDHP). The funds contributed to the account are not subject to federal income tax at the time of deposit. (HSAs) provided by JPMorgan through ARCUS Financial, a division
of ARCUS Enterprises, Inc., a wholly-owned subsidiary of WellPoint"WellPoint's continued success is driven by our ability to offer a broad array of innovative, choice-based products," said Leonard Leon·ard , Ray Charles Known as "Sugar Ray." Born 1956. American boxer who won the 1976 Olympic light welterweight title. He held five world titles as both a welterweight and middleweight between 1979 and 1987. Noun 1. D. Schaeffer Schaeffer can refer to:
"We also are especially pleased with the results of tying physician incentive payments to our Blue Cross of California 2003 HMO Quality Scorecard," continued Schaeffer. "Only in its second year, the 2003 payments increased by more than 30 percent compared with the 2002 bonuses of $43 million to almost 80 physician groups in California, providing additional incentives to physicians to improve the quality of care and service received by our members." "We are very pleased with these financial results, which exceeded prior guidance for the quarter by $0.04 per diluted share," said David C. Colby Colby may refer to: People
An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of guidance from $7.50 to $7.55. Operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. of $226.2 million more than doubled from the second quarter of last year, but was less than net income in the current quarter because of the timing of tax payments. Our medical claims payable rollforward schedule continues to show positive development, reflecting our consistent reserving methodology." Colby continued, "The magnitude magnitude, in astronomy, measure of the brightness of a star or other celestial object. The stars cataloged by Ptolemy (2d cent. A.D.), all visible with the unaided eye, were ranked on a brightness scale such that the brightest stars were of 1st magnitude and the of positive development in the first half of 2004 was negatively affected by higher flu season
When a person begins a civil lawsuit, the person enters into a process called litigation. reserves and an increase in our Physician Quality and Technology Initiative, which was expanded to certain safety net providers in the first quarter of 2004. Days in medical claims payable decreased by 2.1 days from the first quarter of 2004, primarily due to physicians bonus payments made in the quarter and faster claims payment cycle times. Finally, WellPoint's debt-to-total capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. ratio at June 30, 2004 decreased to 11.4 percent from March 31, 2004 as we paid off our outstanding commercial paper in anticipation The performance of an act or obligation before it is legally due. In patent law, the publication of the existence of an invention that has already been patented or has a patent pending, of the Company's merger with Anthem anthem [ultimately from antiphon], short nonliturgical choral composition used in Protestant services, usually accompanied and having an English text. The term is used in a broader sense for "national anthems" and for the Latin motets still used occasionally in , Inc." As previously disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). , on July July: see month. 23, 2004 the California Department of Insurance The California Department of Insurance (CDI), established in 1868, is the angency charged with overseeing the regulation of insurance regulations, enforcing statutes mandating consumer protections, educating consumers, and fostering the stability of insurance markets in the state (DOI (Digital Object Identifier) A method of applying a persistent name to documents, publications and other resources on the Internet rather than using a URL, which can change over time. ) informed the Company that it was disapproving dis·ap·prove v. dis·ap·proved, dis·ap·prov·ing, dis·ap·proves v.tr. 1. To have an unfavorable opinion of; condemn. 2. To refuse to approve; reject. v.intr. Anthem's application to acquire control of BC Life & Health Insurance Company, a WellPoint subsidiary. In response, David Frick, Anthem's executive vice president and chief legal and administrative officer has informed WellPoint that "Anthem has reviewed the DOI's written decision and will promptly prompt adj. prompt·er, prompt·est 1. Being on time; punctual. 2. Carried out or performed without delay: a prompt reply. tr.v. initiate INITIATE. A right which is incomplete. By the birth of a child, the husband becomes tenant by the curtesy initiate, but his estate is not consummate until the death of the wife. 2 Bouv. Inst. n. 1725. appropriate legal proceedings All actions that are authorized or sanctioned by law and instituted in a court or a tribunal for the acquisition of rights or the enforcement of remedies. to challenge it. In addition, we will consider other options that may be available to us in order to complete the merger." A conference call to discuss WellPoint's earnings for the quarter ended June 30, 2004 is scheduled to begin at approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 11:00 a.m. Eastern time on Wednesday Wednesday: see week. , July 28, 2004. To access the conference call, dial 888-285-8004 and reference "WellPoint's Earnings Call" approximately 10 minutes prior to the start of the call. International participants can access the call by dialing 706-643-1656 and referencing "WellPoint's Earnings Call." A replay of the call will be available after 1:30 p.m. Eastern time on July 28, 2004, until the end of the day on August 4, 2004. To access the replay, dial 800-642-1687 (International: 706-645-9291), and enter pass code 8535569. Information required to be presented with respect to non-GAAP financial measures as defined in the SEC rules will be available at least 10 minutes prior to the start of the call by visiting www.wellpoint.com and clicking on Investor Info>Financial Information>Supplementary Financial Information. Investors, analysts and the general public may also listen to a webcast of the call by visiting WellPoint's Web site at www.wellpoint.com and clicking on Investor Info>Events/Webcasts. To listen to the live webcast, please visit the WellPoint Web site at least 20 minutes early (to download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. and install any necessary audio software). Individuals who listen to the call will be presumed to have read WellPoint's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December December: see month. 31, 2003 and Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended March 31, 2004. WellPoint Health Networks Inc. serves the health care needs of 15.5 million medical members and 46.2 million specialty members nationwide through Blue Cross of California, Blue Cross Blue Shield of Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. , Blue Cross Blue Shield of Missouri, Blue Cross Blue Shield of Wisconsin Wisconsin, state, United States Wisconsin (wĭskŏn`sən, –sĭn), upper midwestern state of the United States. It is bounded by Lake Superior and the Upper Peninsula of Michigan, from which it is divided by the Menominee , HealthLink and UNICARE. Visit WellPoint on the web at www.wellpoint.com. Blue Cross of California, Blue Cross Blue Shield of Georgia, Blue Cross Blue Shield of Missouri and Blue Cross Blue Shield of Wisconsin are independent licensees of the Blue Cross and Blue Shield Association
Cautionary Statement: Certain statements contained in this release are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . Actual results could differ materially due to, among other things, operational and other difficulties associated with integrating acquired businesses, general business conditions, competition among managed care companies, rising health care costs, trends in medical care ratios, health care reform and other regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. issues. Additional risk factors are listed from time to time in WellPoint's various reports filed with the SEC, including, but not limited to, its annual report on Form 10-K for the year ended December 31, 2003, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. by Amendment No. 1 on Form 10-K/A.
WELLPOINT
======================================================================
Medical Membership (a)(b)(c)(d)
June 30, March
------------- Percent Increase / 31,
2004 2003 (e) Change (Decrease) 2004
----------------------------------------------
California
Large Group 4,785,737 4,788,890 -0.1% (3,153) 4,772,760
Individual and
Small Group 1,658,805 1,626,412 2.0% 32,393 1,656,153
Senior 244,132 248,127 -1.6% (3,995) 244,031
----------- ----------- ---------------------
Total
California 6,688,674 6,663,429 0.4% 25,245 6,672,944
----------- ----------- ---------------------
Georgia
Large Group 1,658,383 1,642,594 1.0% 15,789 1,659,351
Individual and
Small Group 520,578 466,909 11.5% 53,669 511,588
Senior 55,220 69,154 -20.1% (13,934) 55,722
----------- ----------- ---------------------
Total Georgia 2,234,181 2,178,657 2.5% 55,524 2,226,661
----------- ----------- ---------------------
Central Region (f)
Missouri
Large Group 1,177,699 1,259,211 -6.5% (81,512) 1,177,183
Individual and
Small Group 242,395 240,480 0.8% 1,915 240,543
Senior 40,370 41,239 -2.1% (869) 40,465
----------- ----------- ---------------------
Total Missouri 1,460,464 1,540,930 -5.2% (80,466) 1,458,191
----------- ----------- ---------------------
Illinois
Large Group 575,904 596,577 -3.5% (20,673) 590,948
Individual and
Small Group 134,261 115,330 16.4% 18,931 128,241
Senior 13,162 12,401 6.1% 761 13,460
----------- ----------- ---------------------
Total Illinois 723,327 724,308 -0.1% (981) 732,649
----------- ----------- ---------------------
Texas
Large Group 266,537 287,875 -7.4% (21,338) 278,878
Individual and
Small Group 210,503 194,829 8.0% 15,674 202,583
Senior 9,288 2,710 N/A 6,578 8,244
----------- ----------- ---------------------
Total Texas 486,328 485,414 0.2% 914 489,705
----------- ----------- ---------------------
Other States
Large Group 1,894,992 1,632,267 16.1% 262,725 1,892,135
Individual and
Small Group 107,156 100,653 6.5% 6,503 104,637
Senior 34,638 26,056 32.9% 8,582 32,639
----------- ----------- ---------------------
Total Other
States 2,036,786 1,758,976 15.8% 277,810 2,029,411
----------- ----------- ---------------------
Wisconsin
Large Group 409,412 24,998 N/A 384,414 413,243
Individual and
Small Group 106,612 925 N/A 105,687 104,832
Senior 53,035 161 N/A 52,874 53,209
----------- ----------- ---------------------
Total Wisconsin 569,059 26,084 N/A 542,975 571,284
----------- ----------- ---------------------
Total Medical Members
Excluding BlueCard
Host
Members (g) 14,198,819 13,377,798 6.1% 821,021 14,180,845
Total BlueCard Host
Members (h) 1,269,000 743,897 70.6% 525,103 1,196,000
----------- ----------- ---------------------
Total Medical
Membership 15,467,819 14,121,695 9.5% 1,346,124 15,376,845
=========== =========== =====================
June 30,
--------------------- Percent Increase/ March 31,
2004 2003 (e) Change (Decrease) 2004
----------- ---------------------------------------
ASO Membership (i)
California 1,621,626 1,581,804 2.5% 39,822 1,609,412
Georgia 867,091 860,378 0.8% 6,713 871,220
Central Region
(f) 2,785,785 2,623,083 6.2% 162,702 2,839,187
Wisconsin 181,635 17,073 N/A 164,562 183,987
BlueCard Host
Members 1,269,000 743,897 70.6% 525,103 1,196,000
----------- ----------- ---------------------
Total ASO Membership 6,725,137 5,826,235 15.4% 898,902 6,699,806
----------- ----------- ---------------------
Risk Membership
California 5,067,048 5,081,625 -0.3% (14,577) 5,063,532
Georgia 1,367,090 1,318,279 3.7% 48,811 1,355,441
Central Region 1,921,120 1,886,545 1.8% 34,575 1,870,769
Wisconsin 387,424 9,011 N/A 378,413 387,297
----------- ----------- ---------------------
Total Risk
Membership 8,742,682 8,295,460 5.4% 447,222 8,677,039
----------- ----------- ---------------------
Total Medical
Membership 15,467,819 14,121,695 9.5%1,346,124 15,376,845
=========== =========== =====================
State-Sponsored
Programs (j) June 30,
---------------------- Percent Increase/ March 31,
2004 2003 Change (Decrease) 2004
----------- --------------------------------------
Medi-Cal/Medicaid
California 837,210 836,788 0.1% 422 847,156
Virginia 53,355 44,187 20.7% 9,168 52,025
Puerto
Rico 255,424 269,918 -5.4% (14,494) 260,749
Other 60,616 98,008 -38.2% (37,392) 43,819
----------- ----------- ---------------------
Total 1,206,605 1,248,901 -3.4% (42,296) 1,203,749
Healthy Families 267,443 271,316 -1.4% (3,873) 270,413
MRMIP / AIM /
IHRP 14,237 18,396 -22.6% (4,159) 13,676
California Kids 11,880 20,122 -41.0% (8,242) 13,587
----------- ----------- ---------------------
Total 1,500,165 1,558,735 -3.8% (58,570) 1,501,425
=========== =========== =====================
(a) Membership numbers are approximate and include some estimates
based upon the number of contracts at the relevant date and an
actuarial estimate of the number of members represented by the
contract.
(b) Classification between states for employer groups is
determined by the zip code of the subscriber.
(c) Medical membership includes management services and network
services members, which are primarily included in Large Group for each
state.
(d) Senior membership includes members covered under both Medicare
risk and Medicare supplement products.
(e) Membership numbers as of June 30, 2003 have been reclassified
to reflect the zip code of the subscriber of HealthLink's commercial
insurer accounts. These members were previously included in the
commercial insurers' state of domicile. As of June 30, 2003, Missouri
and Illinois members would have been higher by 14,079 and 25,631,
respectively, while Georgia, Texas and Other States would have been
lower by 514, 5,870 and 33,326, respectively.
(f) Central Region - Large Group membership includes network
access services members, primarily from HealthLink, of 1,286,972,
1,385,823 and 1,277,580 as of June 30, 2004, June 30, 2003 and March
31, 2003, respectively. As of December 31, 2003, the Company revised
its methodology of calculating the number of medical members
represented by each subscriber contract within the Company's rental
networks and a Missouri joint venture. The weighted average factor
changed from approximately 2.4 members to 2.1 members per subscriber.
The impact of this change as of each quarter end during the year ended
December 31, 2003 is to reduce membership as follows:
As of Illinois Missouri Other Total
States
-------- --------- --------- ------- --------
March 31, 2003 35,999 111,008 15,314 162,321
June 30, 2003 35,083 108,097 14,925 158,105
September 30, 2003 34,990 104,614 14,885 154,489
December 31, 2003 34,377 103,013 14,624 152,014
Membership data as of June 30, 2003 shown in the Medical Membership
table have not been revised to reflect this change in methodology.
(g) Total medical members as of June 30, 2004 and March 31, 2004
include 662,705 and 663,274 medical members, respectively, from the
Cobalt acquisition.
(h) The Company has revised its medical membership counting
methodology to include estimated "host" members using the national
BlueCard program. Host members are generally members who reside in a
state in which a WellPoint subsidiary is the Blue Cross and/or Blue
Shield licensee and who are covered under an employer-sponsored health
plan issued by a non-WellPoint controlled Blue Cross Blue Shield
licensee. Host members are computed using, among other things, an
estimate of the average number of BlueCard claims received per member
per month. Total BlueCard host members as of each quarter end during
the year ended December 31, 2003 were as follows:
As of BlueCard
Members
-------- -----------
March 31, 2003 748,490
June 30, 2003 743,897
September 30, 2003 1,009,900
December 31, 2003 1,002,113
Membership data shown in the Medical Membership table reflect this
change in methodology.
(i) ASO membership represents members for which the Company
provides administrative services only and does not assume full
insurance risk.
(j) Medi-Cal (the California Medicaid program) membership is
included in California - Large Group. Medicaid membership for
Virginia, Puerto Rico and Other are included in Other States - Large
Group. Healthy Families, MRMIP (Major Risk Medical Insurance Program)
/ AIM (Access for Infants and Mothers) / IHRP (Interim High Risk
Program) and California Kids membership are included in California -
Large Group.
Specialty
Membership June 30,
-------------------------- Percent Increase/ March 31,
2004 (A) 2003 Change (Decrease) 2004 (A)
----------- ----------- ------- ----------- -----------
Pharmacy
Benefits
Management 31,521,156 35,980,533 -12.4% (4,459,377) 31,019,850
Dental 3,243,208 2,880,224 12.6% 362,984 3,218,669
Life 3,056,673 2,810,903 8.7% 245,770 3,082,614
Disability 565,135 499,970 13.0% 65,165 573,297
Behavioral
Health (B) 7,832,916 7,262,131 7.9% 570,785 7,962,848
----------- ----------- ----------- -----------
Total 46,219,088 49,433,761 -6.5% (3,214,673) 45,857,278
=========== =========== =========== ===========
(A) Specialty membership as of June 30, 2004 and March 31, 2004
includes 639,229 and 644,006 specialty members, respectively, from the
Cobalt acquisition.
(B) Effective as of January 1, 2004, the Company began including
HealthLink members who receive certain behavioral health services in
its behavioral health membership. As of June 30, 2004 and March 31,
2004, the Company had approximately 529,000 and 482,000 such members,
respectively.
WELLPOINT
Consolidated
Income
Statements
(Unaudited)
======================================================================
(In thousands, Quarter Ended June 30, Six Months Ended June 30,
except earnings
per share)
----------------------- -------------------------
2004 (A) 2003 2004 (A) 2003
----------- ----------- ------------ ------------
Revenues:
Premium revenue $5,407,984 $4,654,854 $10,664,287 $9,203,159
Management
services and
other revenue 303,901 221,466 610,077 447,637
Investment
income 68,532 64,037 152,193 130,352
----------- ----------- ------------ ------------
5,780,417 4,940,357 11,426,557 9,781,148
Operating Expenses:
Health care
services and
other benefits 4,364,370 3,769,667 8,551,721 7,487,167
Selling expense 223,400 201,237 440,522 393,234
General and
administrative
expense 670,010 578,000 1,395,733 1,167,669
----------- ----------- ------------ ------------
5,257,780 4,548,904 10,387,976 9,048,070
----------- ----------- ------------ ------------
Operating Income 522,637 391,453 1,038,581 733,078
Interest
expense 12,967 12,689 25,210 25,463
Other expense,
net 9,778 4,646 21,444 11,650
----------- ----------- ------------ ------------
Income before
Provision for
Income Taxes 499,892 374,118 991,927 695,965
Provision for
income taxes 199,957 149,649 396,771 278,443
----------- ----------- ------------ ------------
Net Income $299,935 $224,469 $595,156 $417,522
=========== =========== ============ ============
Earnings Per Share:
Basic $1.92 $1.54 $3.84 $2.87
=========== =========== ============ ============
Diluted $1.86 $1.49 $3.71 $2.79
=========== =========== ============ ============
Weighted Average
Number of Shares
Outstanding 155,823 145,711 154,881 145,662
=========== =========== ============ ============
Weighted Average
Number of Shares
Outstanding
Including Common
Stock Equivalents 161,163 150,217 160,280 149,697
=========== =========== ============ ============
(A) Results of operations for the quarter ended June 30, 2004
include premium revenue of $339.8 million, management services and
other revenue of $50.1 million, investment income of $1.6 million,
health care services and other benefits of $276.1 million, selling,
general and administrative expense of $85.8 million, interest expense
of $0.4 million, other expense, net of $3.3 million and net income of
$15.5 million attributable to the acquired Cobalt business for the
quarter ended June 30, 2004. Results of operations for the six months
ended June 30, 2004 include premium revenue of $676.9 million,
management services and other revenue of $101.3 million, investment
income of $6.4 million, health care services and other benefits of
$561.4 million, selling, general and administrative expense of $176.2
million, interest expense of $0.9 million, other expense, net of $6.4
million and net income of $23.9 million attributable to the acquired
Cobalt business for the six months ended June 30, 2004. The Company
acquired Cobalt Corporation on September 24, 2003. The transaction was
effective as of September 30, 2003 for accounting purposes.
WELLPOINT
======================================================================
Condensed Consolidated Balance Sheets
(In thousands) June 30, December 31,
2004 2003 (a)
------------ ------------
(Unaudited)
ASSETS
Current Assets:
Cash and investments $7,801,032 $7,757,129
Securities lending collateral 846,991 914,173
Receivables, net 1,522,361 1,356,107
Other current assets 745,107 613,698
------------ ------------
Total Current Assets 10,915,491 10,641,107
Property and equipment, net 463,090 441,936
Goodwill and intangible assets, net 3,223,091 3,272,162
Long-term investments, at market value 196,812 161,784
Other non-current assets 254,996 271,689
------------ ------------
Total Assets $15,053,480 $14,788,678
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Medical claims payable $2,649,916 $2,747,074
Reserves for future policy benefits 108,337 129,135
Unearned premiums 690,965 629,831
Accounts payable and accrued expenses 1,398,428 1,411,391
Experience rated and other refunds 255,226 267,382
Income taxes payable 187,389 241,979
Security trades pending payable 146,006 27,456
Securities lending payable 846,991 914,173
Other current liabilities 731,520 712,273
------------ ------------
Total Current Liabilities 7,014,778 7,080,694
Reserves for future policy
benefits, non-current 313,825 288,197
Long-term debt 803,294 1,238,267
Other non-current Liabilities 705,038 751,571
------------ ------------
Total Liabilities 8,836,935 9,358,729
Total Stockholders' Equity 6,216,545 5,429,949
------------ ------------
Total Liabilities and
Stockholders' Equity $15,053,480 $14,788,678
============ ============
Days in Medical Claims Payable (b) (c)
2004 2003
----------- -------------------------
June March December 31 September 30
30 31
----- ----- ------------ ------------
55.3 57.4 60.9 66.8
(a) Certain amounts as of December 31, 2003 have been reclassified
to conform to the current period presentation.
(b) Days in medical claims payable is a calculation of medical
claims payable at the end of the period divided by average health care
services and other benefits per calendar day for such period.
(c) Excluding medical claims payable of $157.0 million and health
care services and other benefits of $276.1 million attributable to the
acquired Cobalt business as of and for the quarter ended June 30,
2004, days in claims payable would have been 55.5 for the quarter
ended June 30, 2004. Excluding medical claims payable of $162.9
million and health care services and other benefits of $285.3 million
attributable to the acquired Cobalt business as of and for the quarter
ended March 31, 2004, days in claims payable would have been 57.8 for
the quarter ended March 31, 2004. Excluding medical claims payable of
$168.1 million and health care services and other benefits of $299.0
million attributable to the acquired Cobalt business as of and for the
quarter ended December 31, 2003, days in claims payable would have
been 61.6 for the quarter ended December 31, 2003. Excluding medical
claims payable of $244.2 million attributable to the acquired Cobalt
business as of and for the quarter ended September 30, 2003, days in
medical claims payable would have been 60.9 for the quarter ended
September 30, 2003. Results of operations for the year ended December
31, 2003 include Cobalt operating results from October 1, 2003 to
December 31, 2003.
WELLPOINT
Medical
Claims
Payable
Rollforward
(Unaudited)
======================================================================
Six Months Ended June 30,
------------------------------------
(In thousands) 2004 2003 2002
----------- ----------- ------------
Medical claims payable as of
January 1 $2,747,074 $2,422,331 $1,934,620
Medical claims reserves from
businesses acquired during the
period - 188 177,836
Health care claim expenses
incurred during period:
Related to current year 8,606,540 7,676,702 6,454,580
Related to prior years (241,639) (339,250) (339,295)
----------- ----------- ------------
Total Incurred 8,364,901 7,337,452 6,115,285
Health care services payments
during period:
Related to current year 6,587,644 5,727,790 4,820,689
Related to prior years 1,874,415 1,513,797 1,094,349
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Total Payments 8,462,059 7,241,587 5,915,038
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Medical claims payable as of June
30 $2,649,916 $2,518,384 $2,312,703
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