POLITICAL CONTRIBUTIONS & 201RELATED ACTIVITY REPORT5 Elements 6.4 Flag line and frame combinations Can be used horizontally to emphasize text. 2015Board of Directors CARTER BECK GLORIA MCCARTHY SVP & Counsel EVP & Chief Administrative Officer LEANN BEHRENS President, Medicaid MIKE MELLOH West Region VP, Learn & Development & Chief Learning Officer JEFF FUSILE President, GA Commercial DEB MOESSNER President, KY Commercial JULIE GOON SVP, Public Affairs PAM PERRY Anthem PAC Chairman RVP, State Affairs Can be used horizontally to JOHN JESSER DOUG WENNERS emphasize large titles. VP, Provider Engagement President, East Region/ISG Strategy KEVIN RIORDAN MICHAEL KAPP RVP, Federal Affairs President, Federal Anthem PAC Treasurer Government Solutions TRACY WINN DAVID KRETSCHMER Manager, Public Affairs SVP, Treasurer & Chief Anthem PAC Assistant Investment Officer Treasurer & Executive Director 2 2014 Anthem Contributions to Elements Federal Candidates by State 6.4 Flag line and frame combinations Can be used horizontally to emphasize text. 2015From the Chairman As the health care system changes, Anthem is leading the way to help improve coverage and make health care services more affordable and easier for consumers to access and use. One element of the changing environment is the increasing role that our government plays in health care delivery. Government regulation and legislation not only impacts how we do business, but also determines how we develop trusted and caring solutions for the consumer. Anthem remains committed to taking an active role in the public policy process at the federal, state and local levels. We do this by executing a public affairs strategy that is designed to educate federal, state and local officials on Can be used the issues that are core to our company and our customers. This includes: horizontally to l Conducting advocacy outreach that supports Anthem’s position on emphasize large titles. the complicated issues that affect our company and members; l Making PAC and corporate contributions where legally permissible; and, l Engaging with others in our industry, trade associations, patient advocates and the broader business community to help advance our efforts. In 2015, Anthem PAC was supported by more than 2,000 dedicated Anthem associates who, once again, played a critical role in ensuring Anthem’s perspective was a part of the public policy conversation. Their voluntary contributions allowed the PAC to make $698,500 in contributions to federal candidates and $190,538 to state candidates. We are grateful for our associates’ commitment to Anthem and to our customers and for the important role they play in helping connect decision-makers to Anthem’s priority issues. Transparency is important to Anthem. In the following pages, you will find a detailed financial accounting, as well as complete lists of the candidates and political committees that received Anthem PAC support and the permissible corporate political contributions made by Anthem. In addition, this report can serve as a helpful guide in understanding how Anthem participates in the public policy process and how Anthem makes contribution decisions. As we enter into the homestretch of the 2016 election cycle, Anthem will continue to build quality relationships with lawmakers and potential lawmakers at the federal, state and local levels, and communicate how we at Anthem are working to transform health care with trusted and caring solutions. Julie Goon Senior Vice President, Public Affairs 2016 Anthem PAC Chair 3 Policy on Participation in the Public Policy Process POLICY ON PARTICIPATION IN CORE PRINCIPLES FOR THE PUBLIC POLICY PROCESS PARTICIPATION As a health benefits company, Anthem @@ Anthem engages on public policy issues is committed to advocating public policy that are core to our business and generally solutions that benefit our customers, avoids engaging on non-enterprise related stakeholders, associates, communities and issues. the general public. Anthem believes that @@ Anthem works with members of participation in the public policy process is government, legislative and executive critical to our core business because legislative branch, others in our industry, the broader and regulatory health care decisions made business community, our customers and at the federal and state levels of government the general public to advocate public have a direct impact on our ability to serve our policies that support our customers’ customers and compete in the marketplace. interests and our business goals. The Our active participation in the political and company’s public policy positions and public policy process and our advocacy on agenda are guided each year by our both legislative and regulatory proposals is company’s Mission, Objectives and Values. an important means of maintaining a viable @@ In general, Anthem is supportive of public operating environment, enhancing shareholder policies that promote competition and value, and better serving our customers’ and free markets in health care delivery and business’ interests by creating a more informed financing, that promote a role for the policymaking process. private sector in public programs, and that Anthem participates in the public policy are in the best long-term interest for our process in several ways including executing customers, shareholders and Anthem. a public and government affairs strategy @@ Anthem supports the implementation of designed to inform elected and appointed reforms necessary for the sustainability officials of key public policy issues related of the health care delivery and financing to the company’s business; political giving system that promote free market through associate-funded federal and state principles and advance the interests of our political action committees; corporate political customers. giving where legally allowed; and membership @@ Political spending by Anthem, both with in health industry and business trade corporate dollars and through our political associations which help to advance our overall action committees, reflects the company’s business objectives. interests and is used to further our public Anthem’s participation in the process is policy positions and agenda and not the guided by a set of core principles that govern personal agenda of individual officers, our corporate policies on lobbying, political directors or associates. spending and general engagement in the public @@ Anthem will not make political contri- policy process. butions based upon party affiliation, positions taken on other, non-enterprise related issues, contributions made in previous election cycles or client pressure. No campaign contribution will be given 4 Policy on Participation in the Public Policy Process in anticipation of, in recognition of or in CORPORATE POLITICAL return for an official act. CONTRIBUTIONS Anthem adheres to all federal, state and local While federal law prohibits Anthem from laws and regulations governing the public making corporate contributions to federal policy process, including communications candidates, Anthem makes direct contributions with elective federal and state officials, agency to support state candidates, political parties, officials, or other legislative and regulatory political action committees and ballot officials for the purpose of influencing measures in those states where such corporate legislative or administrative action, and has contributions are allowed by law and may established internal policies and procedures to make in-kind contributions, such as hosting a ensure compliance with these requirements. reception and paying expenses associated with @@ Anthem discloses contributions made and the event. received in reports filed with the Federal Certain criteria are considered in making Election Commission and the various state corporate political contributions, including campaign finance offices, as required by the following which have been endorsed by law. Anthem’s Board of Directors: @@ Management of Anthem’s participation @@ Supports public policy that promotes in the public policy process is the private competition, choice and free responsibility of the senior vice president markets in the delivery and financing of of Public Affairs in accordance with health care; Anthem’s enterprise risk management @@ Voting record or announced positions framework. This position reports directly on issues important to Anthem and its to Anthem’s Chief Executive Officer. Public customers; Affairs updates are provided regularly to Anthem’s Board of Directors. @@ Demonstrated leadership on key commit- tees of importance to our business; @@ The Audit Committee of Anthem’s Board of Directors reviews, at least annually, the @@ Impact of contribution in a state or district Company’s political strategy, contributions where Anthem has a large concentration of and activities and oversees compliance with employees and/or customers; the Company’s policies and procedures @@ Impact of contribution on the campaign. regarding political contributions and Throughout the year, members of Anthem’s activities. The risks associated with political public affairs organization make recommenda- and lobbying activities are managed in tions for corporate contributions. The senior accordance with Anthem’s enterprise risk vice president of Public Affairs of the company management framework. In addition, must approve each corporate contribution. Anthem’s Internal Audit Department Other members of the public affairs organiza- assesses the risk related to political