Political Contributions & Related Activity Report 2011 CARTER BECK JOHN JESSER DAVID KRETSCHMER SVP & Counsel VP, Provider Engagement & COC SVP, Treasurer & Chief Investment Officer ANDREW LANG LISA LATTS SVP, Chief Information Officer Staff VP, Public Health Policy JACKIE MACIAS VP & General Manager MIKE MELLOH DEB MOESSNER State Sponsored Business 2011 WellPAC VP, Human Resources President & General Manager KY TRACY WINN Board of Directors JOHN WILLEY ANDREW MORRISON Manager, Public Affairs Director, Government Relations SVP, Public Affairs WellPAC Assistant Treasurer & WellPAC Treasurer WellPAC Chairman Executive Director ALAN ALBRIGHT Legal Counsel to WellPAC 1 from the Chairman One way WellPoint is capitalizing on new opportunities to drive growth for the company is by helping to shape the changing marketplace—and this extends to the public policy arena as well. Public policy decisions have a significant impact on our customers and on our operating environment, and that’s why we are committed to playing an active role in discussions that affect the health insurance marketplace. We also regularly seek to help elect candidates to federal and state office who will participate in that dialogue with us through direct advocacy, policy development, lawful corporate contributions and the sponsorship of WellPAC, the non-partisan political action committee of WellPoint associates. What makes WellPAC’s success possible is the voluntary financial support of more than 1,875 WellPoint associates. Our donations enable WellPAC to give contributions directly to the campaigns of state and federal candidates to express our positions. Our Public Affairs team has been actively engaged with lawmakers and candidates at the federal level and in our 14 core business states throughout 2011. In addition, WellPAC contributed more than $440,000 to federal candidates, political parties and committees and more than $155,000 to candidates and committees at the state and local levels. The core WellPoint value of integrity extends throughout all the work we do—including our work in the political arena. This report offers further detail about the political contributions and lobbying activities conducted in 2011 as well as the core principles that guide these activities. The 2012 elections will provide a critical opportunity for our associates to join together and make their voices heard for our customers, our investors, each other, and the communities we serve. Andrew Morrison SVP, Public Affairs, WellPAC Chairman 2 Policy on Participation in the Public Policy Process and appointed officials of key does not mean that WellPoint public policy issues related to the supports all public policies company’s business; political giving deemed as health care reform. through associate-funded federal The test for us is whether and state political action commit- those public policies meet tees; corporate political giving where the definition of free market legally allowed; and membership in principles and advance the health industry and business trade interests of our customers. associations which help to advance @@ Political spending by WellPoint, our overall business objectives. As the nation’s leading health both with corporate dollars benefits company, WellPoint can play WellPoint’s participation in the and through our political action a key role advocating national health process is guided by a set of core committees, will reflect the care policy and practices to benefit principles that govern our corporate company’s interests and be our customers and the general policies on lobbying, political used to further our public policy public. Health care is an increasingly spending and general engagement positions and agenda and not regulated and legislated industry in the public policy process. the personal agenda of individual both at the federal and state level. officers, directors or associates. Elected and appointed officials make CORE PRINCIPLES FOR @@ WellPoint will not make political decisions that directly affect our PARTICIPATION contributions based upon party ability to make quality health care affiliation, positions taken on coverage affordable and to improve @@ WellPoint engages on public other, non-enterprise related the health of the communities we policy issues that are core to our issues, contributions made serve. Our active participation in business and generally avoids in previous election cycles or the political process is essential engaging on non-enterprise client pressure. No campaign to ensure that we have a voice in related issues. contribution will be given in those decisions. At WellPoint, we anticipation of, in recognition of @@ WellPoint works with members are committed to advocating public or in return for an official act. of government, others in our policy solutions that best serve our industry, the broader business @@ WellPoint adheres to all customers, our stakeholders, our community, our customers and federal, state and local laws associates and our communities. the general public to advocate and regulations governing the WellPoint believes that participation public policies that support our public policy process and has in the public policy process is critical customers’ interests and our established internal policies and to our core business as legislative business goals. The company’s procedures to ensure compliance and regulatory health care decisions public policy positions and with these requirements. made at the federal and state levels agenda are guided each year of government have a direct impact @@ WellPoint discloses contributions by our company’s Mission, on our ability to serve our customers made and received in reports Objectives and Values. and compete in the marketplace. It is filed with the Federal Election an important means of maintaining @@ In general, WellPoint is Commission and the various a viable operating environment and supportive of public policies that state campaign finance offices, enhancing shareholder value, and we promote competition and free as required by law. believe it better serves our business markets in health care delivery @@ Management of WellPoint’s interests by creating a more informed and financing. participation in the public policy policymaking process. @@ WellPoint supports the process is the responsibility of the senior vice president of WellPoint participates in the public implementation of health care Public Affairs. This position policy process in several ways reform and believes reforms are reports directly to WellPoint’s including executing a public affairs necessary for the sustainability executive vice president, General strategy designed to inform elected of the health care delivery and financing system. However, that Counsel, Corporate Secretary 3 Policy on Participation in the Public Policy Process and Chief of Public Affairs Officer state or district where WellPoint company. WellPAC operates pursuant who reports to the Chairman, has a large concentration of to all relevant state and federal President and Chief Executive employees and/or customers? laws, and complies with all public Officer. Public Affairs updates are @@ Would WellPoint’s contribution disclosure requirements. Information provided regularly to WellPoint’s have an impact on the about WellPAC’s contributions may Board of Directors. candidate’s campaign? be found on the Federal Election @@ WellPoint’s corporate political Commission’s website. contributions, both direct Throughout the year, members of WellPoint’s public affairs organization When participating in the political and indirect,and its lobbying process, WellPoint associates must expenditures are included in its make recommendations for corporate contributions. The senior comply with the company’s ethics and total annual fiscal budget, which compliance requirements identified is subject to the approval and vice president of Public Affairs of the company must approve each in the “Standards of Ethical Business oversight of WellPoint’s Board of Conduct,” which is available on our Directors. In addition, a copy of corporate contribution. Other members of the public affairs website. This document sets forth this report is made available to appropriate associate conduct relating WellPoint’s Board of Directors. organization involved with political contributions include the vice to political activity and contributions, CORPORATE POLITICAL president of State Affairs, the vice as well as interaction with government president of Federal Affairs and their officials and agencies. CONTRIBUTIONS direct reports. In making corporate While federal law prohibits WellPoint contributions, WellPoint complies WELLPOINT TRADE from making corporate contributions with all disclosure requirements as ASSOCIATION MEMBERSHIPS to federal candidates, WellPoint prescribed by state and federal law. Like most major corporations, makes direct contributions to support WellPoint is a member of a number state candidates in those states WELLPOINT POLITICAL ACTION of national and state industry where such corporate contributions and business trade associations are allowed by law and may make COMMITTEE CONTRIBUTIONS (organized under section 501(c)(6) of indirect contributions, such as WellPoint provides an opportunity the Internal Revenue Code) to help hosting a reception and paying for eligible WellPoint associates, as advance our public policy agenda and expenses associated with the defined by federal law, to participate related business goals. WellPoint event. Certain criteria are used