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elebrating75 years of service 1934C Blue Cross and Blue- Shield 2009 of Louisiana To Our Customers and Friends: We are very pleased to present this special publication to the people of Louisiana as Blue Cross and Blue Shield of Louisiana celebrates its Diamond Jubilee. This is a very challenging time for Blue Cross, for our state and for our nation. A lot has changed since this company was founded in a one-room office in New Orleans back in 1934. The big movie stars that year were Clark Gable and Claudette Colbert. And that one little room held just two employees. As our state’s population has grown, so have we. Now we’ve got more than 1,700 employees at our Baton Rouge headquarters and in our eight district offices throughout the state. Undoubtedly, the healthcare industry has become more complex, but one thing that will never change is our commitment to the health and well-being of all Louisianians. Our mission statement says it all: to improve the lives of Louisianians by providing health guidance and affordable access to quality care. Like you, we are concerned about the rising costs of healthcare. We’ve taken a leadership role in support of meaningful national healthcare reform. Here at home, we work hard to create affordable insurance products, to provide value-added wellness services and to keep our administrative costs as low as possible. In fact, we spend only 7 cents of each premium dollar on administrative costs. Fully 85 cents goes to reimburse doctors and hospitals for our customers’ medical care. You can read more about these efforts in the pages of this publication. As our nation and state struggle for ways to deal with the rising price of medical services, we at Blue Cross are doing our part to provide the best possible healthcare protection at the most reasonable cost. That’s been our mission for 75 years … and it will remain our mission for many, many years to come. Thank you for your support. Sincerely, Mike Reitz President & CEO District Office photos on pages 1, 10 and 11 by Jason Cohen, www.jasoncohenphoto.com 2 www.bcbsla.com | November 2009 ounded in 1934 in New Orleans, Blue Cross and Blue Shield of Louisiana is the state’s oldest and largest health insurer. For 75 years, we have Fbeen committed to improving the lives of Louisiana residents by providing health guidance and affordable access to quality care. The company was born in February 1934, when representatives of six hospi- nity Co., doing business as Blue Cross of Louisiana. On Jan. 1, 1985, the company began C75elebrating years of service doing business as Blue Cross and Blue Shield of Louisiana to reflect the fact that both hospital and physician cover- tals got together in a one-room office in In November 1934, the Mutual Hos- age were provided by one plan. New Orleans and formed the Hospital pital Service of Shreveport was formed. As a consolidated statewide organiza- Service Association of New Orleans, a An Alexandria organization, the Hos- tion, Blue Cross soon outgrew the small nonprofit, mutual insurer that offered a pital Service Association of Alexandria, building on Florida Street where it had form of pre-paid hospital care. Families was formed in August 1938. And in made its home in Baton Rouge since were fighting The Great Depression, 1938, a group of physicians and business 1968. Under then-CEO Howard Reitz, a Huey Long was in the U.S. Senate, leaders organized the Hospital Service search for suitable property began, and Bonnie and Clyde were on the run in Association of Baton Rouge. Blue Cross purchased 102 acres near north Louisiana—and the organization In 1948, the Baton Rouge, Alexandria Bluebonnet Boulevard and Interstate 10 that would become Blue Cross and Blue and Shreveport plans consolidated to in 1978. Construction began on the IT Shield of Louisiana housed two employ- form the Louisiana Hospital Service. At section in 1983, and the company’s new ees in a small one-room office. that time, it was approved by the Ameri- headquarters was completed in 1987. can Hospital Association as The campus in Baton Rouge was ex- a Blue Cross Plan and began panded in 1998 with the addition of the doing business as Blue Cross state-of-the-art Customer Service Cen- of Baton Rouge. In 1958, the ter, an 82,000-square-foot building care- Hospital Service Associa-Associa fully designed with the needs of both tion of New Orleans became employees and customers in mind. licensed as Blue Cross of The 1980s and 1990s were also a time Greater New Orleans. of dramatic technological change and diversification. The company created Merger and growth Southern National Life Insurance Com- Blue Cross of Baton Rouge pany Inc., a wholly owned subsidiary, in and Blue Cross of Greater 1994. In 1996, it reactivated its subsid- New Orleans remained sepa-sepa iary HMO Louisiana Inc., which offers rate until 1975, when the two managed care products. companies consolidated to Blue Cross made its home on Government Street form a statewide plan—Loui-plan—Loui Blue Cross today in Baton Rouge from the early 1950s to 1968. siana Health Service & Indem- Today, Blue Cross and Blue Shield of November 2009 | www.bcbsla.com 3 Our commitment to a healthy and diverse workforce was recognized by the Governor’s Office of Disability Affairs, which named Blue Cross Employer of the Year, and by the Louisiana Health Care Alliance, which has given us its Well Workplace Award for large employers two years in a row. Louisiana provides group and individual ability coverage. Reitz adds. “That means we are owned health insurance plans, life and disabil- Blue Cross has regional offices in by our policyholders, not shareholders, ity insurance and group voluntary prod- Alexandria, Houma, Lafayette, Lake and we work to keep healthcare costs ucts to more than 1.1 million Louisian- Charles, Monroe, New Orleans and down for their benefit.” ians. One out of every four Louisianians Shreveport—and our Bluebonnet is a Blue Cross member. All told, we campus has just grown again with the Commitment to Louisiana have a $3.5 billion impact on the state’s completion of a new operations center In January, we launched a new cam- economy through taxes, community in December 2008. paign with what we call a “brand prom- sponsorships and, most prominently, “Our customers today are never far ise”: Your Health. Our Commitment. reimbursement for the medical claims from a local office,” says current Presi- “A brand promise is much more than of our customers. On average, 85 cents dent and CEO Mike Reitz, Howard’s son an advertising slogan,” Reitz says. “It’s a of each premium dollar goes to pay cus- and a 30-year veteran of the company. way to strongly communicate the value CHANGING TECHNOLOGY: In 1975, the IT Department consisted of three people and a A SIMPLER TIME: Blue Cross’ mobile enrollment office circa 1964, single huge computer that received information through punch cards. By the 1980s, when the average insurance contract was only six pages long. Blue Cross headquarters was served by a single IBM mainframe and a handful of PCs. Today, the company is powered by 2,300 desktops, 300 laptops and 700 servers. tomers’ claims. “That ability to give face-to-face cus- of Blue to our customers by demonstrat- Blue Cross offers a full line of health tomer service is one thing that sets us ing to them that we understand their insurance products for both individuals apart from our competitors.” needs and are deeply committed to and groups, including: Plus, Blue Cross is an independent li- meeting them.” • both fully insured and self-insured censee of the Blue Cross and Blue Shield The new campaign describes more (administrative services only) prod- Association governed by a board of di- than 40 wellness tools and services we ucts for groups; rectors made up of Louisiana residents. offer our members, many through our • a high-deductible policy that is com- “Many people don’t realize that we’re a Web site at bcbsla.com. One example patible with a tax-favored health sav- not-for-profit, mutually held company,” is the personal health record, or PHR, ings account (HSA); • a full line of Medicare supplement An elementary school in Bossier City that used Blue Cross’ plans and Medicare prescription drug coverage; Smart Bodies program won the 2007 School Health Award • life insurance; and • a suite of voluntary group benefit op- sponsored by BESE, the Louisiana Department of Education tions, including life, dental and dis- and the Pennington Biomedical Research Center. 4 www.bcbsla.com | November 2009 Blue Cross and Blue Shield of Louisiana received a 2007 Brand Excellence Award from the national Blue Cross and Blue Shield Association for our achievement in membership retention. which lets customers keep track of their doctor visits, lab test re- sults and prescription medicines, plus add personal information about allergies, emergency contacts and more. “The PHR is ac- cessible through the Internet, so customers can reach their health information in an emergency from any location,” Reitz says. Our commitment to health extends to the whole state in the The right company for form of the Louisiana 2 Step campaign and our Smart Bodies program for kids, designed to combat obesity by promoting today’s challenges healthier lifestyle choices. The free Louisiana2Step.com Web site offers information and interactive tools to help visitors “eat right ike Reitz was appointed president and CEO in March and move more.” A kid-friendly companion Web site, 2Step- 2009 after serving in an interim capacity for eight 4Kids.com, teaches and rewards healthy behavior for children Mmonths.

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