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Political Contributions & Related Activity Report 2012 CARTER BECK JACKIE MACIAS ALAN ALBRIGHT SVP & Counsel VP & General Manager Legal Counsel to WellPAC Medicaid JOHN JESSER VP, Provider Engagement & GLORIA MCCARTHY JOHN WILLEY COC EVP, Enterprise Execution & Sr. Director, Efciency Government Relations 2012 WellPAC DAVID KRETSCHMER WellPAC Treasurer SVP, Treasurer & Chief MIKE MELLOH Investment Ofcer VP, Human Resources TRACY WINN Board of Directors Manager, Public Affairs ANDREW MORRISON DEB MOESSNER WellPAC Assistant Treasurer & SVP, Public Affairs President & General Manager Executive Director WellPAC Chairman KY 1 from the Chairman America’s health care system is in the midst of transformative change, and WellPoint is leading the way by making it easier for consumers to access and use it while improving the health of the people we serve. In this new post-reform era, WellPoint’s Public Affairs function is more important than ever as the government expands its regulatory scope into our key lines of business. By 2015, almost 66 percent of the company’s revenue will be paid either in part or entirely by the federal and state government. For this reason, we continue to play an active role in the political process through our Public Affairs efforts, industry memberships and WellPAC, our political action committee. More than 1,875 WellPoint associates provided voluntary nancial support to WellPAC in 2012. Their generosity allowed our PAC to make contributions of more than $780,000 to federal campaigns and $140,000 to state and local campaigns on both sides of the political aisle in 2012. Our participation in the political process helps us develop good working relationships with Members of Congress, as well as key state legislators, in order to communicate WellPoint’s perspective on a range of issues including the cost and quality of today’s health care, the establishment of insurance exchanges and the expansion of Medicaid. How we perform on these issues will be a signicant factor in our ability to meet and exceed our goals in the future. We deeply appreciate the commitment WellPoint associates have made to political involvement. This partnership ensures our voice is heard and makes a signicant impact on the success of our company and the people we serve. Andrew Morrison SVP, Public Affairs, WellPAC Chairman 2 Policy on Participation in the Public Policy Process POLICY ON PARTICIPATION IN WellPoint’s participation in the committees, will reflect the process is guided by a set of core company’s interests and be THE PUBLIC POLICY PROCESS principles that govern our corporate used to further our public policy As one of the nation’s largest health policies on lobbying, political positions and agenda and not benefits company, WellPoint can play spending and general engagement in the personal agenda of individual a key role advocating national health the public policy process. officers, directors or associates. care policy and practices to benefit @@ WellPoint will not make political our customers and the general CORE PRINCIPLES FOR contributions based upon party public. Health care is an increasingly affiliation, positions taken on regulated and legislated industry PARTICIPATION other, non-enterprise related both at the federal and state level. @@ WellPoint engages on public issues, contributions made Elected and appointed officials make policy issues that are core to our in previous election cycles or decisions that directly affect our business and generally avoids client pressure. No campaign ability to make quality health care engaging on non-enterprise contribution will be given in coverage affordable and to improve related issues. anticipation of, in recognition of the health of the communities we @@ WellPoint works with members or in return for an official act. serve. Our active participation in of government, others in our @@ WellPoint adheres to all the political process is essential industry, the broader business to ensure that we have a voice in federal, state and local laws community, our customers and and regulations governing the those decisions. At WellPoint, we the general public to advocate are committed to advocating public public policy process and has public policies that support our established internal policies and policy solutions that best serve our customers’ interests and our customers, our stakeholders, our procedures to ensure compliance business goals. The company’s with these requirements. associates and our communities. public policy positions and WellPoint believes that participation agenda are guided each year @@ WellPoint discloses contributions in the public policy process is critical by our company’s Mission, made and received in reports to our core business because Objectives and Values. filed with the Federal Election legislative and regulatory health Commission and the various care decisions made at the federal @@ In general, WellPoint is state campaign finance offices, and state levels of government have supportive of public policies that as required by law. a direct impact on our ability to promote competition and free @@ Management of WellPoint’s serve our customers and compete markets in health care delivery participation in the public policy in the marketplace. Advocacy is an and financing and that is in the process is the responsibility important means of maintaining a best long-term interest for our of the senior vice president of viable operating environment and customers, shareholders and Public Affairs in accordance enhancing shareholder value, and we WellPoint. with WellPoint’s enterprise believe it better serves our business @@ WellPoint supports the risk management framework. interests by creating a more informed implementation of health care Subject to change with new CEO policymaking process. reform and believes reforms are structure, this position reports necessary for the sustainability WellPoint participates in the public directly to WellPoint’s executive of the health care delivery and policy process in several ways: vice president, General Counsel financing system. However, that executing a public affairs strategy and Chief of Public Affairs does not mean that WellPoint designed to inform elected and Officer who reports to the Chief supports all public policies appointed officials of key public Executive Officer. Public Affairs deemed as health care reform. policy issues related to the updates are provided regularly to The test for us is whether company’s business; political giving WellPoint’s Board of Directors. those public policies meet through associate-funded federal and the definition of free market @@ The Audit Committee of state political action committees; principles and advance the WellPoint’s Board of Directors corporate political giving where interests of our customers. reviews, at least annually, the legally allowed; and membership in Company’s political strategy, health industry and business trade @@ Political spending by WellPoint, contributions and activities associations which help to advance both with corporate dollars and oversees compliance with our overall business objectives. and through our political action 3 Policy on Participation in the Public Policy Process the Company’s policies and large concentration of employees about WellPAC’s contributions may procedures regarding political and/or customers. be found on the Federal Election contributions and activities. @@ Impact of contribution on the Commission’s website. The risks associated with campaign. political and lobbying activities When participating in the political are managed in accordance Throughout the year, members of process, WellPoint associates must with WellPoint’s enterprise risk WellPoint’s Public Affairs organization comply with the company’s ethics and management framework. In make recommendations for compliance requirements identified addition, WellPoint’s Internal Audit corporate contributions. The senior in the “Standards of Ethical Business Department assesses the risk vice president of Public Affairs of Conduct,” which is available on related to political giving within its the company must approve each our website. This document sets annual risk assessment process, corporate contribution. Other forth appropriate associate conduct has performed reviews in the members of the Public Affairs relating to political activity and past, and will perform additional organization involved with political contributions, as well as interaction reviews as deemed appropriate. contributions include the vice with government officials and president of State Affairs, the vice agencies. CORPORATE POLITICAL president of Federal Affairs and their direct reports. In making corporate WELLPOINT TRADE ASSOCIATION CONTRIBUTIONS contributions, WellPoint complies MEMBERSHIPS While federal law prohibits WellPoint with all disclosure requirements as from making corporate contributions prescribed by state and federal law. Like most major corporations, to federal candidates, WellPoint WellPoint is a member of a number makes direct contributions to support WELLPOINT POLITICAL ACTION of national and state industry state candidates, political parties, and business trade associations political action committees and ballot COMMITTEE CONTRIBUTIONS (organized under section 501(c)(6) of measures in those states where WellPoint provides an opportunity the Internal Revenue Code) to help such corporate contributions are for eligible WellPoint associates, as advance our public policy agenda and allowed by law and may make
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