2017 Annual Report

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Caring for the diverse needs of consumers

More than 1 in 8 Americans is served by an Anthem affiliated health plan

Building better outcomes

Innovative care programs to address the countryâ??s most significant health challenges

Improving quality

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

More than 60% of healthcare spending in value-based care models

Tackling high drug costs

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, Whatâ??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

Letter from President and Chief Executive Officer

To Our Shareholders:

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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.

THOR MAX-10 ESC for Brushless Motor (RC-WillPower) TeamMagic E5,President and Chief Executive Officer

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.

Among them, youâ??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. Youâ??ll meet Jennifer, an Anthem Medicaid member and first-time mom, who was guided through aSPMSS6260 Spektrum RC S6260 Digital High Speed Low Profile Servo (High Voltage), healthy pregnancy thanks to the support of two Anthem nurse case managers. And youâ??ll meet 94-year-old Barbara, who was one of the first consumers in Anthemâ??s pioneering â??Togetherness Program,â?? which provides integrated healthcare, transportation, social activity and other services to address the growing issue of senior loneliness.

Weâ??ll tell you how our Anthem Foundation and employees lend a hand for communities in need. And youâ??ll read about how weâ??re impacting communities through bold advancements in addressing the opioid crisis and other chronic issues that impact health, like homelessness.

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.

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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 whatâ??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.


Stealth Flyer II Micro wireless Helicopter - bluee - New in Box,President and Chief Executive Officer
Letter from George A. Schaefer, Jr., Lead Director

Thank you for your investment in Anthem and for trusting us to oversee your interests. Your Boardâ??s mission is to represent the interests of all shareholders, not in the short term, but with a long-term perspective.

Read the Letter

People we
Serve

People we
Serve

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.


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.

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.

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.

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.

Communities we
Impact

Communities we
Impact

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 Thomas and Friends Tank Engine bluee Red Water Tower Tank Wooden Railway Train, 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.

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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.

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.

Clyde, an early participant in Anthemâ??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.

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.

A Healthier
Future

A Healthier
Future

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 peopleâ??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 itâ??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.

Financials

Financial Highlights


Total Revenue(In Billions)
Total Medical Membership(In Millions)
Customer Base
38%Fully-Insured
62%Self-Funded
Customer Base
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Financial Information
View 2017 Financial Tables
Corporate

2017 Corporate Information

Executive Leadership and Board of Directors