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 beenF 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. At the time of his appointment, he had been with the company for 33 years. In fact, his career at Blue Cross gives new meaning to “starting at the bottom.” He first started doing odd jobs and cutting grass at the old Government Street offices of Blue Cross—where his HOUSE THAT BLUE father Howard worked—when he BUILT: Then- was 10 years old. Howard went on President and CEO to become president and CEO of the P.J. Mills broke company, and Mike went on to jobs ground for Blue’s in the warehouse, the mail room, new Customer Service Center at the sales, provider relations, marketing Bluebonnet campus and, finally, the CEO’s office. in March 1997. Mike’s tenure as the top official at Blue Cross has already been GROWING WITH LOUISIANA: Over the years, phenomenal shaped by two major challenges: growth in membership has meant new facilities, new the deepest recession since the products, new district offices and new people. We’ve grown Great Depression and the national from 50 employees in 1960 to 1,000 in 1997 to 1,700 today. debate over healthcare reform. But he believes Blue Cross is uniquely positioned to thrive in the environ- ment these powerful forces are shaping: ages 5 through 12. “Our founders insisted that we be incorporated as a pri- At Blue Cross and Blue Shield of Louisiana, we also continu- vate not-for-profit mutual company. As a mutual company, ally renew our commitment to giving something back to the we are owned by our policyholders. As a private company, we are not publicly traded and are not answerable to stock- Louisiana communities in which we work and live. The company holders. We have no need to create profits for investors. We itself supports more than 200 charitable organizations statewide operate for the benefit of our customers and consider our through donations, sponsorships and employee volunteer work. role as shepherd of their funds a sacred trust. Reitz says Blue Cross’ 1,700 employees across the state are “Even though we are not a charity, we are a nonprofit proud of the organization’s history of service. company, in the sense that we do not distribute earnings to “As a company, Blue Cross has long held a vision for a healthier our policyholders. Our excess earnings are placed in reserves Louisiana. As employees, each one of us is renewing our commit- to protect our policyholders from catastrophic events such ment to the health and well-being of our fellow Louisianians. Our as a flu pandemic or a Hurricane Katrina, Rita or Gustav. mission is just as strong today as it was back in 1934, and we will With this corporate structure, we are perfectly positioned to continue to commit ourselves to our state’s good health by pro- address affordability of healthcare and to serve the needs viding the products, technology, service and resources to help all of the citizens of Louisiana as no other health insurance company can. As I begin my presidency, I am, more than any- Louisianians live a high quality of life.” thing, thankful for that.”

NoveMber 2009 | www.bcbsla.com 5 Past Presidents of Blue Cross and Blue Shield of Louisiana

Howard L. Reitz elebrating 1967-1983 Cstrong leaders

even different people have led with physicians. Blue Cross and Blue Shield of Johnson says the greatest assets of Louisiana since the merger in Blue Cross are the employees and the 1975 doubled the size of the board of directors. Thanks to them, he John B. “Jerry” Johnson company. The first, Howard says, the company today is the strongest 1983-1989 Reitz,S began with Blue Cross of Baton it has ever been—in size, financial sta- Rouge in 1967 and saw the company bility and reputation. through the merger and beyond. We were able to speak to some of these past P.J. Mills leaders who faced unique challenges Now 75, Percy “P.J.” Mills is the and left their own special mark on our same age as Blue Cross. As president/ history. CEO, he took on the issue of restoring Aaron J. Johnston public confidence in Blue Cross and 1989-1993 Howard Reitz Blue Shield after the company had suf- No wonder they named a street after fered bad publicity due to questions him. In Howard Reitz’s time at Blue about financial stability. “We primarily Cross, he went from covering 50,000 campaigned in the media to stress the members to nearly one million. In 1975, strength of the company. We made it eight years into his 17-year stint as pres- real clear that the issues were regulatory P.J. Mills ident/CEO, Blue Cross of Baton Rouge things, and we corrected them. We were 1993-2000 and Blue Cross of Greater New Orleans successful in increasing the customer consolidated to form a statewide orga- base substantially from about 750,000 to nization: Blue Cross of Louisiana. The about 1.2 million,” Mills says. merger more than doubled the member- ship and gave them national accounts. Gery Barry But Reitz maintains there was nothing Katrina. This one word not only more noteworthy about his time leading represents the biggest issue of Gery Kathryn M. Sullivan the company than his workforce. “The Barry’s tenure, but also what he sees as 2000-2004 employees were excellent, excellent. Just his greatest achievement. “We kept pay- wonderful people,” he says. ing all the bills for members even if we weren’t getting premiums, and we made Jerry Johnson sure the insurance stayed in force even Jerry Johnson was president/CEO if the employer no longer existed,” Barry during what he calls “the beginning of says. Gery J. Barry diversification for the company.” He Other developments of the Barry 2004-2008 says, “We formed a life insurance com- years were a $100 million, multi-year IT pany, an HMO, a marketing company. system overhaul and a renewed dedica- We expanded our computer operations.” tion to helping the people of Louisiana His tenure saw the development of live healthier lives through the initiation the new headquarters at the current of the Louisiana 2 Step as well as health Bluebonnet location. Another milestone programs in schools. Michael H. Reitz was 1983, when the company became a “Our employees rallied to it, and they March 2009- member of the Blue Shield Association are all going in the same direction, fo- (Appointed Interim and became Blue Cross and Blue Shield, cused on customers and improving life CEO in August 2008) giving it the authority to deal directly in Louisiana,” Barry says.

6 www.bcbsla.com | NoveMBeR 2009 We asked two longtime Blue for Blue Cross employees to share their Working perspective on the experience. ternally: “No it’s not a fad, it How has your job changed over really will work, it is a good the years? use of our money ... ” I’ve gone from a direct support to an indirect support. I’m more behind What’s the era you the scenes now. And the service desk look back on with the evolved over time. We’ve gone from most nostalgia? writing notes down on paper, to send- The ’70s ... it was crazy ing e-mails, to where we are now. The Former CEO no matter where you were change has been all for the good, that’s Howard Reitz or what you were doing. for sure. We have caught up with the showed up to congratulate We had a lot of fun, and times. We are more proactive than reac- Crockett we worked very hard. I tive now. on her 35th can remember working anniversary. on cases in the anti-fraud Why have you stayed with Blue unit. At one in the morning Cross all these years? Dorothy Crockett we’d realize we’d been here all day and It’s been a wonderful experience. I Plan Performance night, order a pizza, keep working. It’s met my wife here—she works here. I Started at Blue Cross: 1974 wonderful when you actually love what have a lot of you do. Everybody came to work pretty pride in my What did you start out doing for much like they were going to church. work. Ev- Blue Cross? Gentlemen wearing suits, ladies wearing erything I’ve It was a job that involved pulling dresses. It was a sense of pride. We were done has been staples out of paper claims and sorting going somewhere, and we had to dress to the best of them to go be microfilmed ... I don’t up for it. my ability. I think any phase of that job is here today. used to travel I also taped up torn claims. It was called You’ve been here for 35 years. a lot at first. I document preparation or something Why so dedicated? got to go out similar. Two reasons. I absolutely love what I’m and visit and doing. And our customers are the best. I work with What has it been like watching know this from working in customer ser- the client at the technology change? vice, face to face, over the phone, through the provider’s Stanley Wood in 2009. When I came, it was a very manual their letters. I know that what I’m doing location and support them in a way that process. We didn’t have anything elec- is important and that people appreciate it, a whole lot of people didn’t get to see tronic at the time. We would literally and we appreciate the people who choose or didn’t know existed. The people have receive shoe boxes with folks’ drug re- us for their healthcare provider. Also, I meant a lot to me. It’s been about earn- ceipts in them that we had to sort out. love the diversity, and that’s grown over ing their trust. Our IT Department had three people in the years too. it. The computer was a huge clunky ma- What about challenges? chine with cards that had to be punched. Stanley Wood The most difficult part was to sup- The older people didn’t trust it. This IT port the provider in times of emergency. newfangled electronic system would get Started at Blue Cross: 1981 There was a little hospital up in Olla, La. us in trouble down the road, they said. They had a storm. Leaked all over our I remember an older gentleman call- What do you do? equipment. Little places like this relied ing who was trying to visualize what we I am a service desk lead, a computer on us. They called me [saying], “We had meant when we said the “computer was technician by trade. I have eight co- a disaster, we’re down, we’ve got to get down.” workers who are service desk personnel. this equipment up.” I was up before day- “I need you to pull me up on that They take calls from the clients and help break. I had equipment in there up and radar or whatever y’all are using over them over the phone. If they can’t figure running before they even got there. We there,” he said. “Why did y’all even get it out, they come to me. If I can’t help, I bend over [backward] for those people those things?” find the person who can. because they’re our paying clients. We It took convincing externally and in- drop what we’re doing to serve them.

November 2009 | www.bcbsla.com 7 1948 The Baton Rouge, 75 years Alexandria and Shreveport hospital service plans 1965 consolidated to form The Medicare and 1929 1939 the Louisiana Hospital Medicaid programs were Sparked by the hardships of the Physician groups were Service. It was approved created, facilitated by the Great Depression, hospitals began beginning to take by the American Hospital established infrastructure banding together to offer prepaid note of the success Association as a Blue of Blue Cross and Blue coverage for hospital care. The of Blue Cross plans, Cross Plan and began Shield plans, which began prototype was the “Blue Cross Plan” and they began to doing business as Blue processing many of the offered by Baylor University Hospital offer companion Blue Cross of Baton Rouge. claims. in Dallas to a group of teachers. Shield plans.

1925 1930 1935 1940 1945 1950 1955 1960 1965

1934 1955 Representatives of six hospitals formed the Hospital 1940 Nearly 70% of Americans had health coverage. 1958 Service Association of New Orleans. The Mutual The U.S. Hospital Hospital Service of Shreveport was economy was Service formed later that year. emerging from Association of the Depression, New Orleans E.A. van Steenwyk, head of what but less than became would later be known as Blue Cross 10% of the licensed as of Minnesota, commissioned a U.S. population Blue Cross of poster with the Blue Cross symbol was covered Greater New on it. This was the first time the Blue by health Orleans. Cross symbol was used. insurance.

Customer ou might not think of 1934 as a voiceshappened: Blue Cross and Blue Shield of back on our own 75-year history, we particularly notable year in world Louisiana was born, Louisianian Mary thought it would be fun to meet one history, but from our perspective Rish was born and Louisianian Lillian member who is the same age as we are— Yat least three important things Leblanc turned 36 years old. As we look and another who is considerably older! Name: Mary Rish Name: Lillian Leblanc Year of birth: 1934 Year of birth: 1898 Current home: Baton Rouge Current home: Opelousas Joined Blue Cross: 2004 Joined Blue Cross: 1963 Keys to health: Exercise, eat right, Early life: Lillian grew up on a farm in eat healthy. “You have to have a good Port Barre. Her father had a syrup mill, and outlook on life. You can’t just sit on your they sold and distributed syrup all over St. rear and do nothing all day just because Landry Parish. They farmed cotton, corn, you’re retired!” potatoes and cattle. Experience with Blue Cross: “I love Health history: Lillian is 110 years old it! I have no problem whatsoever. I’ve and has never had surgery in her life, never had occasion to have to deal with though chronic stomach problems kept her anyone except a sales representative from being what she considers a “healthy” (Matthew Scoggins), and he is very nice. He always calls me back person. Growing up, she always had a medical doctor, but she also remembers immediately. He’s easy to talk to, easy to get in touch with. I like a lot of home remedies. Blue Cross because I can go to whatever doctor I want to, and I can Home remedy she remembers most: “Castor oil!! They would make the go to whatever hospital I want to. I like them being right here, where tea, then put the castor oil in the hot tea.” I can go to their office and talk to someone if I ever need to. I love Experience with Blue Cross: Lillian is our oldest member! Blue Cross was Blue Cross. I’ll stick with them as long as I can.” her first and only health insurance carrier. “That was the only insurance we knew of at that time for health in our area. The plan fits. And it’s still one of the only plans available in Opelousas.”

8 www.bcbsla.com | November 2009 of growth 2009 Blue Cross celebrated 1975 its 75th 1995 anniversary with Blue Cross of Baton Rouge and Membership reaches 400,000. Blue Cross of Greater New Orleans a new brand consolidated to form a statewide promise: Your organization, Louisiana Health Service 2004 Health. Our & Indemnity Co., doing business as Membership reaches 1 million. Commitment. Blue Cross of Louisiana.

1970 1975 1980 1985 1990 1995 2000 2005 2010

1983 2008 Company becomes a Construction was member of the Blue Cross completed on the new and Blue Shield Association. Operations Center, 1987 designed to bring all Baton Blue Cross moved Rouge-area employees into a new home with together to enhance the completion of collaboration, improve construction at our new efficiency and save Bluebonnet campus. administrative costs.

Dear Blue Cross ... Thanks!

“This morning I came down with a cold/flu, “Ms. Daniels demonstrated the and I called to set up an appointment with a “Today I had the most wonderful highest level of professionalism when experience of dealing with one of your we first met through her teaching physician, and I was told that if I didn’t have strategies and how she organized my insurance card or something proving my employees. Never have I been treated and reorganized the methods and identity with my insurance information I would so kindly and courteously. I feel I am techniques to present for my health have to pay for services up front. I called and inadequate in expressing her compassionate improvement. Ms. Daniels was effective Jennifer picked up the phone. She was beyond disposition. You truly have an asset in this in communicating to me her knowledge helpful!! I explained my situation to her and of diabetes and the course of action she went right to work. Every question I young lady. I thank you for having the to get access to her so she can be had she had an answer and was two steps pleasure of being served by her.” responsive and proactive to my medical ahead of me about what my next step should situation at hand. Based on my over 40 —letter to Special Accounts manager be. She took down my information and within years of dealing with diverse people in various capacities and occupations, 30 minutes e-mailed me a detailed letter Our thanks to Nurse Leslie Daniels, especially dealing with those in proving my coverage on your letterhead. I was Disease Management, Baton Rouge; education and the healthcare profession, amazed and thankful for how quickly she got Jennifer Trichell, Sales & Marketing, Nurse Daniels is exceptional.” everything together.” Shreveport; Thressa Dunn, Special —Disease Management patient —satisfied member in Shreveport Accounts, Baton Rouge; and all of our other great employees who make it so easy to measure customer satisfaction.

November 2009 | www.bcbsla.com 9 Four employees and four preferred agents work in Blue Cross' Alexandria district office, one of eight local offices statewide where customers can get help face to face.

healthcare standards organizations, including accreditation for meeting pri- vacy and quality standards.

How we’re connected Blue Cross and Blue Shield of Louisi- ana is one of 39 independent Blue Cross and Blue Shield Plans across the nation. Each Plan is connected only through its membership in the national Blue Cross and Blue Shield Association. Each is an independent company, licensed by its own state government and run by its own board of directors. What happens at one company does not affect another. The Blues connection gives our cus- tomers many advantages. Like the Blue- Card® program, a provider network with access to doctors and hospitals in more than 200 countries across the globe. We’ve also joined the other indepen- dent Blues in taking a leadership role Our home, in healthcare reform. The Blue Cross and Blue Shield Association gives Blues lue Cross and Blue Shield Louisiataxes, community sponsorships, na salaries Plans across the nation a consolidated of Louisiana was born in and local investments. And as Louisi- voice in Washington, tackling health- Louisiana, and we serve only ana’s largest domestic health insurer, care affordability head-on and working Louisianians. As Louisiana’s Blue Cross and Blue Shield of Louisiana toward true reform. As our nation ad- oldest and largest health is also the largest contributor to the dresses these critical issues, Blue Cross Binsurer, our company provides health state’s high-risk pool. and Blue Shield of Louisiana customers coverage, employment and community have both knowledgeable local people support in every section of the state. We Financially strong and stable and strong national resources to work in are proud partners in the communities Our company maintains a reserves their best interest. we serve, supporting more than 200 fund to protect our policyholders from All of this goes to say that Blue Cross charitable organizations. And we do the effects of a natural disaster or na- and Blue Shield of Louisiana will con- serve every community—from Baton tional economic downturn. We have tinue to be here, working for you, when Rouge to Bunkie and from Monroe to received 12 consecutive “A” ratings for you need us. This is the commitment Morgan City. financial strength from national rating we make each and every day—in good Our mission is to improve the lives of service Standard & Poor’s. We also hold times and in bad—because this is our Louisianians by providing health guid- five accreditations from top national home … Louisiana. ance and affordable access to quality care. And we can focus on that mission because we don’t have to answer to Wall Working with doctors and hospitals Street. Blue Cross is a nonprofit, fully Strong provider relationships play a key role in our and unparalleled access to quality care. taxed, mutual insurer owned solely by customer service strategy. Broad provider networks, • We consistently rank in the top five among all Blues our policyholders—not shareholders. effective provider contracting and negotiated reim- plans nationwide for provider satisfaction, based Blue Cross and Blue Shield of Louisi- bursements all give us a competitive advantage. The on an annual survey of BlueCard® provider office ana covers one out of every four Louisi- company’s reputation for accessibility, exceptional staff. Blue Cross set a record by ranking No. 1 in ana residents. We have members in ev- service levels and prompt payments keep provider this survey for four straight years. ery parish in the state and district offices satisfaction high: • Our membership in the Blue Cross and Blue in eight major cities. And we employ • Nearly 9 out of every 10 doctors in Louisiana Shield Association, a group of 39 independent nearly 1,700 Louisianians. We keep our belong to a Blue Cross network. plans that collectively cover more than 100 • Our member hospital network includes every full- million people, means members can take their business here and make a $3.5 billion service acute care hospital in Louisiana. healthcare benefits with them across the country impact on the state’s economy through • Network discounts mean savings to our customers and to 200 countries around the world.

10 www.bcbsla.com | NovemBer 2009 Getting serious about Our customer service cOre here’s no doubt that Blue Cross “Our district offices values and Blue Shield of Louisiana is represent our commitment a unique place to work. Anyone of taking service to our can see from our mission and members. They represent collaboration vision that each one of us takes the fact that Blue Cross This or her job seriously. Blue Cross is is visible and prepared to excellence unique in our industry because—unlike serve in every area of the our competitors—we are a mutually held state.” —James Bustillo, Regional Integrity company, owned by our policyholders. Director, Group Marketing, Each one of our customers is our “boss,” Shreveport respect and we take that seriously, too. One of our major corporate initiatives is called eCe (exceptional Customer experience) “When a caller or visitor demands to speak with a man- and represents our commitment to ager, it’s ‘game on.’ I know I’ll win him over, not only exceed customer expectations. with the strength of our products and services, but with my sincere desire to solve his problem. Opportunities like that are extremely fulfilling, and they help refine “Customer service my skills as a CSR. My title may be Manager of Office means getting the job Administration, but my calling is Customer Service.” done, no matter what. —Bonnie Martin, Manager of Office Administration, It means that when Shreveport ‘the rules’ say we can’t do exactly what the customer is asking us “For myself, after 25 years to do, we think outside with the company, customer the box to accomplish service is still what it was the same goal and still from day one. Treat your live within ‘the rules.’ ” customers the same way —Kim Alderman, you’d want someone to treat Manager of Office Ad- your own family. Through the ministration, Lafayette years customers and brokers have become just that … family.” —Lorrie E. DeVillier, Group Services Specialist, Lafayette “I think the local offices are important because it gives the customers a face to put with the Blue Cross name. A lot of times the people who come in are people I see every “Being an account manager and serving more than month, sometimes a couple 1,500 small groups ranging from two to 25 employ- of times a month, so you get ees, I try to place myself in their shoes—because I to know them. It gives them am a customer as well. I ask myself, what would this a familiar face and someone mean to me? I have ‘mom-and-pop’ businesses that that they talk to. They know I am very personable with. I think this is important to “Customer service means making sure all of our customers we are on their side and will them, knowing they have a friend in me.” understand their policies and know they can always depend do what we can to help.” —Monica Decker, Marketing Account Manager, on someone locally to take care of their issues.” —Krystal L. Webb, Marketing New Orleans —Judy Foote, Group Services Specialist, Monroe (left) Support Specialist, Alexandria

November 2009 | www.bcbsla.com 11 Responding2005: to a crisis lue Cross is a family, and we embrace every one of our cus- tomers as members of the fam- ily. In 2005, our response to the tragic devastation of hurri- Bcanes Katrina and Rita truly showed the level of commitment and caring Blue Katrina hero risks Cross’ board of directors, management and employees feel toward the state we life to save others call home. We helped facilitate the loan of a CareVan by one of our provider contracting rep for Blue Cross Our emergency-support programs for sister Blue Plans to provide mobile medical care in the in Lafayette, John Hunsucker (above, by our customers, employees and business areas hit hard by Katrina. Amotor) is also trained as an EMT. Two partners were extraordinary, helping days after Katrina struck, he drove to New them manage operationally and finan- Helping our customers and Orleans and offered his help to the owner of cially through the ravages of Katrina business partners a large airboat. They were directed by Wildlife and Rita. In the wake of the storms, Blue BCBSLA took a number of very un- and Fisheries officials to Memorial Medical Cross and Blue Shield of Louisiana pro- usual steps to help our customers, pro- Center. The situation at Memorial was truly vided recognized industry leadership. viders and other business partners after desperate. The hospital had lost main and We created and supported collaborative the hurricanes. Many of the business backup power and had no running water responses to the unique challenges faced decisions we made, such as continuing and little food for hundreds of patients, by the affected communities in terms of to pay our customers’ claims even if they employees, family members and pets. John healthcare supply and access. weren’t able to pay their premiums, were and his boat, along with a handful of smaller later required of all health insurers by airboats, worked all day to evacuate more Helping local communities the Louisiana Department of Insurance. than 800 patients from the hospital to dry • We contributed $1 million to local Even then, some of our actions exceeded ground. relief efforts for Hurricane Katrina— their requirements. Every time they came back to the hospital including $500,000 to the Louisiana It may be hard for those outside the after bringing a load of patients to relative Capital Area Chapter of the American insurance industry to grasp how ex- safety, the doctors would say, “Okay, we only have about 100 more patients.” John Red Cross. ceptional some of these decisions were, and the other rescuers quickly realized • The Blue Cross and Blue Shield even in the wake of such an enormous that the doctors were afraid they would get Association collected more than disaster. discouraged and leave if they really knew $4.2 million for hurricane relief. A few examples of the steps we took how many patients needed help. More than These funds were donated to the to offer some relief: 1,000 people were eventually brought out of American Red Cross specifically to • Offered all customers an extended Memorial by volunteers in small boats. help victims along the Gulf Coast. premium grace period; The rescuers worked until dark that first • Employees collected hundreds of • Paid claims as usual during the grace night, but then it became too dangerous to go pounds of food and supplies to donate period, which exceeded regulatory on. They were unable to see to navigate their to shelters and nonprofit agencies. requirements; boats, John says, and looting got worse after These were delivered to local hospi- • Relaxed network restrictions; dark. Even so, it was difficult to stop with patients still waiting on the improvised dock tals, shelters and other recipients. • Eased pre-authorization require- to be evacuated. • Employees held food and toy drives ments; John and his team worked on the Memorial in the fall to assist local charitable • Helped members fill their prescrip- evacuation for nearly two days, finally groups and gave hundreds of hours tions more easily; returning exhausted to Lafayette in the early of volunteer time to shelters, agencies • Hand-delivered checks totaling ap- morning of Sept. 1. Incredibly, he returned and groups all over the state. proximately $1.7 million to providers Sept. 3 to locate the family of a Blue Cross • Our Human Resources Department in the New Orleans area to help keep co-worker and brought several more stranded staff partnered with each of the em- their cash flowing; and, storm victims out of the city. ployees displaced by Katrina and Rita • Developed a special, affordable indi- When asked why he did it, John pauses for and assigned them a mentor to “touch vidual health plan for members who a long while, almost as if he doesn’t have a base” every day, offering support, en- lost coverage because their employers clear answer. “I would hope,” he says finally, “someone would do the same for me.” couragement and assistance. closed up shop or laid off staff.

12 www.bcbsla.com | NovemBer 2009 Giving back At Camp J.A.M., a weekend retreat for children with juvenile arthritis and their families, kids can swim, ride to our communities horses, do arts and crafts and participate in other fun activities. Camp J.A.M. was funded in part in 2009 by t Blue Cross and Blue Shield of Louisiana, we are a grant from the Blue Cross Foundation to the Arthritis committed—in everything we do—to the health of our Association of Louisiana. Blue Cross supports more than communities. And an important part of that commitment 200 community organizations in Louisiana. is our Foundation. Through charitable giving, employee volunteerism and other kinds of community outreach, the BlueA Cross Foundation is building a healthier Louisiana.

Since 1995, the Blue Cross Foundation has presented the annual Angel Award to outstand- ing volunteers throughout the state who improve the quality of life for Louisiana’s children. Each award includes a $20,000 grant to the honoree’s charity, including such programs as after-school enrichment, safe houses and shelters, and drug and alcohol outreach. Louisi- ana First Lady Supriya Jindal was the guest speaker at the 2008 Angel Award Ceremony.

“Blue Cross has been a sponsor of Special Olympics Louisiana for several years. They continue to give financially to the Healthy Ath- letes Program and provide volun- teers at the state events. Thanks to their support we have been able to screen hundreds of athletes and provide them with the needed medical and dental advice. The program has grown bigger and better each year because of the generosity of Blue Cross.” —Special Olympics Louisiana

Wilma Byrd, Membership and Bill- ing, is one of several Blue Cross Whether it’s United Way’s Day of Caring, Baton Rouge’s employees who volunteer as a Corporate Cup 10K, or a walk supporting the March of Court Appointed Special Advocate Dimes, Blue Cross employees have a long history of high participation in community and civic events. One of Giving back to the community is part of the culture at Blue (CASA). Byrd helps abused and Cross. So much so that the Foundation coordinates a league neglected kids achieve normalcy the most popular is Junior Achievement’s Bowl-A-Thon fundraiser, where the Blue Cross team was the Top Per- of enthusiastic employee volunteers, called Team Blue, who and stability in their lives. Most donate their time and talents to nonprofits and schools recently, she was appointed to as- former in 2009. Over the years we’ve sent approximately 40 teams and more than 200 bowlers to this event. across the state. Here, Team Blue builds a playground at sist a 17-year-old girl. “The biggest Jefferson Terrace Elementary in Baton Rouge. issue these kids have is trust,” says Byrd. “It makes me happy to see her grow and trust again.”

November 2009 | www.bcbsla.com 13 Where does your Blue Cross premium dollar go?

Makingof sense healthcare costs he United States continues to istrative costs “are not a key driver of cal professionals include board-certified spend more on healthcare than health insurance premiums.” medical directors, pharmacists and a full other nations, but there are Nationally, health insurance compa- staff of registered nurses who serve our some positive indicators on the nies use only about 14 cents of every customers. We’re also continually striv- horizon. As healthcare leaders in premium dollar for administrative costs, ing to help pharmacists and members Tthe United States, Blue Cross and Blue commissions, taxes and contributions find the most affordable options for pre- Shield companies continue working to reserve funds for emergencies. At scription drugs and to help employers hard to keep healthcare quality-driven, Blue Cross and Blue Shield of Louisiana, manage their costs. accessible and affordable. that number is even lower—less than 10 A new website published by the Blue For the fourth year in a row, growth cents. Cross and Blue Shield Association pro- in health insurance premiums declined To learn more, you can download vides details on these and other solu- across the nation in 2007. According to the 2008 Medical Cost Reference Guide tions from Blue Cross plans across the a report prepared by Pricewaterhouse- from the Blue Cross and Blue Shield As- country. The site at www.BlueAdvocacy. Coopers for America’s Health Insurance sociation website at www.bcbs.com. org allows visitors to search by plan/ Plans, the rate of growth is currently at state or to search for programs in one of its lowest level in seven years. Focusing on affordability five “solution” categories: The Centers for Medicare and Medi- Today, more than ever, Blue Cross and • Encourage Research on What Works caid Services reports that, nationwide, Blue Shield of Louisiana is focused on • Change Incentives to Promote Better about 75 percent of every private health affordability. There is no “silver bullet” Care insurance premium dollar goes to pay to reducing healthcare costs, but rather • Empower Consumers and Providers the costs of hospitals, physician services many solutions that can work together • Promote Health and Wellness and prescription drugs. Here at Blue by improving access, promoting well- • Foster Public-Private Solutions Cross and Blue Shield of Louisiana, that ness, increasing efficiencies and empow- These categories are the five parts of figure is even greater: 85 percent of each ering consumers and providers. BCBSA’s “Pathway to Covering Amer- premium dollar goes to pay claims. That’s why we’ve created and sup- ica” plan—a set of detailed recommen- Hospital stays, physician services ported wellness programs such as dations to improve the quality and value and prescription drug costs continue to the Louisiana 2 Step. And why we’ve of our healthcare system, while simulta- increase faster than any other health- focused on case management work neously expanding access and coverage related expense. oriented toward a lifelong continuum to all Americans. Dental costs, nursing home costs and of care, from wellness education and Download a PDF version of the full home health account for another 11 per- preventive services through disease report at www.BlueAdvocacy.org. cent of healthcare expenditures. management for members with acute or PwC’s analysis concludes that admin- chronic conditions. Our in-house medi-

14 www.bcbsla.com | November 2009 OurYour Commitment. Health. arlier this year we launched for getting healthy At a kickoff event at LSU’s Lab a new branding campaign, and staying healthy, School, kids march to a song about the complete with new TV and but registered importance of exercise and good nutrition. radio ads and a comprehensive members have ac- new website section, all cess to a wide variety of free interactive siana should be applauded for its efforts designedE to promote our company’s tools and motivational support. Organi- to improve the quality of healthcare for brand promise: Your Health. Our zations, families, companies and other consumers,” said Scott P. Serota, BCBSA Commitment. groups can also sign up as teams and set president and CEO. A brand promise is more than just an team goals to help motivate one another. The goal of the Smart Bodies program advertising slogan. It’s a way to strongly Other features of the Louisiana 2 Step is to promote lifelong healthy eating communicate that we understand our website include: patterns and a physically active lifestyle customers’ needs and are deeply com- • Interactive trackers to help members to children in Louisiana and their fami- mitted to meeting them. As a health record their weight, daily activity, lies. We helped launch the program in guidance company, we take your health calories consumed, key lab test results 2005 with a five-year grant. By the end and wellness very seriously, and we’ve and more of 2007, Smart Bodies had been imple- designed the Your Health. Our Commit- • Exercise tips and guides mented in 52 of Louisiana’s 64 parishes, ment. campaign to give you information • Lists of healthy foods and snacks with the goal to reach every parish by and tools to live a healthier life and to • Healthy recipes and a nutrition guide the end of 2009. manage your healthcare benefits effec- • A calendar of health- and wellness- tively. related events statewide • Health news My Health More than 40 wellness • Bonus programs, such as discounts Commitment programs on Jenny Craig memberships and the n exciting feature of the Your Health. Our goal for this campaign is to Junior League of Baton Rouge’s cook- Our Commitment. campaign was the educate our customers about the more book River Road Recipes III: A Healthy A launch of My Health Commitment, our than 40 value-added wellness programs, Collection new customized health and wellness program health tools and services we offer. Our offered to all of our customers at no extra website at www.bcbsla.com is the foun- Smart Bodies charge. dation of our efforts, giving visitors Through an award-winning educa- For employers, My Health Commitment more detailed information about our tional program called Smart Bodies, provides a workplace wellness solution. It’s coverage plans, preventive medicine the Blue Cross Foundation is helping a way to help our group customers manage their business’ healthcare costs while and care management programs, online reduce childhood obesity by teaching helping their employees become healthier health tools, personal health records and elementary school children and their and more productive. My Health Commitment walking programs. Please visit the web- families about healthy eating and exer- is also available for individual customers of site to learn more and call or write us if cise. In partnership with LSU, this pro- Blue Cross and HMO Louisiana. you have any questions. gram combines classroom activities and The program works whether a person is hands-on learning to teach the impor- managing a chronic condition, moderately Louisiana 2 Step tance of nutrition and physical activity. healthy or at the peak of good health. It all The Louisiana 2 Step program was Smart Bodies, developed by the starts with a personal health assessment developed by Blue Cross and Blue Foundation and the LSU AgCenter, was (PHA), which customers can access online Shield of Louisiana and the Pennington recognized as a 2008 winner of the Blue through our website, www.bcbsla.com. Biomedical Research Center to help Works program. Blue Works is a unique The core offering of My Health Commitment includes healthy lifestyle educate and inspire Louisianians to im- collaboration between the Blue Cross resources, online wellness trackers, discount prove their health by making two small and Blue Shield Association and the programs and access to regional wellness changes in their daily routines: eating Harvard Medical School Department of workshops being scheduled all over the state. right and moving more. Health Care Policy, honoring success- We’ve designed the program to coordinate More than 13,500 users have regis- ful approaches to improving health and with other Blue Cross resources to provide a tered with the Louisiana 2 Step website. wellness for members and consumers. true total health management approach to All website visitors can find resources “Blue Cross and Blue Shield of Loui- serving our customers.

NovEmbEr 2009 | www.bcbsla.com 15 Live the life you have imagined. Henry David Thoreau

It’s true that great achievements start with a great imagination. At Blue Cross and Blue Shield of Louisiana and HMO Louisiana, we believe in the power of the possible. That’s why we offer our customers the tools to improve their health and wellbeing.

My Health Commitment, our new health and wellness program, is included in all of our insurance plans at no extra charge. Whether you’re managing a chronic illness or at the peak of health, My Health Commitment gives you the tools to live the best and healthiest life possible.

My Health Commitment offers: • A Regional Wellness Coordinator who provides community education and training • Online services such as: - Personal health assessments - Healthy lifestyle resources - Wellness trackers - Listings of the healthy resources in your area • Discount programs • And more!

Make Your Commitment to Good Health Today. Great achievements can also start with a simple step. Go online today at www.bcbsla.com and take your Personal Health Assessment or PHA. It’s the first step on your personal journey to better health.

Blue Cross and Blue Shield of Louisiana incorporated as Louisiana Health Service & Indemnity Company

01MK4198 10/09 www.bcbsla.com