Blues Update: Building the Future

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Blues Update Building the Future
2007 Labor Healthcare ForumNational Labor
Office
July 25, 2007
Jennifer VachonMarketing and Business Strategy
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Agenda
The Future
State of the Blues
History ofthe Blues
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History of the Blues
1946

• Blue Shield Association established

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History of the Blues
Key Milestones

• 90s
• For-Profit Plans arrive
• Growth of managed care plans

• 50s
• Plan participation in National business
• 52 million members
• 40 million members

• 60s
• Medicare enacted in 1966
• HMOs introduced
• Federal Employee Health Benefit Program (FEHBP)
  created

• 80s
• Blue Plans become federally taxable
• BCBSA formed in 1982

• 40s
• 81 hospital Plans
• 44 medical Plans
• Unity of and Plans begins

• 70s
• andAssociations consolidate in 1978

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Agenda
The Future
State of the Blues
History ofthe Blues
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State of the Blues Covering America
Blue Plans cover every community in the nation

• Growing number of Fortune 500 National Accounts

• 39 Blue Cross and Blue Shield Plans

BCBSA

• Blues contract with 90 of U.S. hospitals, 80 of
  doctors

• 4.7 million members in FEP Program

• Blues Plans cover millions of labor members
  coast-to-coast

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State of the Blues Leading Brands
Blue Brands are 1 in awareness in healthcare
industry and 3 among top financial services
brands across the country
Insurer Brand Awareness
Financial Services Awareness
1
68
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State of the Blues Record Enrollment
Blues enrollment fast approaching 100 million
members
99.8
Customers (in millions)
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Agenda
The Future
State of the Blues
History ofthe Blues
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Consumers Are Center Stage in the Future
Picture a consumer-centric, information-driven
health system
Consumer
Health Plans
Physicians
Rx
Pharmacy
Financial services / tools
Labs
Health and Wellness
Other Providers (e.g. care managers)
Hospitals
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Building the Future Blue Health Intelligence
Participating Blue Plan BHI membership tops 80
million

• Launched August 2006
• 19 Blue Plans and FEP are participating
• 80 million Blue members
• Largest health/healthcare database in the
  country
  
• Medical claims, enrollment data, Rx and hospital
  quality Indicators
  
• Recently formed Physician and Employer Advisory
  Groups

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Building the Future Blue Healthcare Bank
Blue Healthcare Bank is offering Blue consumers
growing portfolio of integrated, easy-to-use
services nationwide

• Support growing number of Blue Plan products and
  services
  
• Officially launched January 2007
• Goal is easy-to-use, seamless and integrated
  consumer service
  
• Increasingly important with merger of healthcare
  and financial services
  
• Portfolio will expand over time to meet changing
  consumer needs

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Building the Future Blue Distinction
Collaborating with providers to improve quality
and affordability

• Collaborating with leading providers in Hospital
  Improvement programs
  
• Blue Centers for Bariatric Surgery, Cardiac Care
  and Transplantation
  
• Next Centers for Cancer
• Blue Plans also piloting transparency
• Good Housekeeping Seal of Approval

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Investing in Patient Quality and Safety
Example Partnership with Institute for
Healthcare Improvement

• Blues committed to 5 Million Lives Campaign
• Campaign aims to protect five million lives
  through
  
• Proven infection control practices
• Evidence-based practices for congestive heart
  failure
  
• Deployment of rapid response teams
• Reduction of adverse drug events

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Building the Future World Markets
Blues extending Brand into high-profile
international markets

• BlueCard Worldwide
• Worldwide medical assistance
• 7,000 physicians
• 1,000 hospitals
• Names and Marks registered in 165 countries
  across the globe
  
• BlueWorldwide Expat Program
• Exploring International opportunities
• Canadian Blue Cross Association is associate
  member of BCBSA

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Blues Update Building the Future
2007 Labor Healthcare ForumNational Labor
Office
July 25, 2007
Jennifer VachonMarketing and Business Strategy