The solution to rising costs? Wellness
Dear customers, colleagues, and community members,
Almost every day on the news and around the dinner table, we hear worried talk about the cost of health care. It’s second only to the economy among the issues that we Americans worry about most. According to national surveys, 70 percent of Americans believe that our health care system is broken.
Our concern is justified. As a nation, it is estimated that we will spend more than $4 trillion on health care annually by 2017 — or one out of every five dollars spent in our country. We have an enormous opportunity and a deep responsibility to reform our health care system to provide affordable, high-quality health care for all Americans. That sense of urgent responsibility fuels the national focus on health care reform.
That same urgent responsibility fuels our mission at Independence Blue Cross: Building the health of our members and strengthening the well-being of our community by improving access to affordable, quality health care. In 2008, we worked tirelessly to hold down costs and raise quality in health care by focusing on keeping members well. Our research shows that nearly 85 percent of area employers believe that taking better care of ourselves is the most effective way to lower the cost of health insurance. Federal data shows that wellness programs offer a $3 return for each $1 spent.
In 2008, we expanded our efforts to strengthen the health of our members and our customers’ bottom line. We doubled the number of hospitals in our pay-for-performance program, which rewards top-notch care. We welcomed 228 businesses as Wellness Partners®, providing their employees with customized wellness programs and events. And, in this report, you will read about other innovative ways we’re inviting members to join us on the road to wellness, such as Baby BluePrints®, our award-winning prenatal care program, which enrolled almost 20,000 moms-to-be this year, and ConnectionsSM Health Management Program, which provided more than 2.6 million educational and reminder cards, letters, and telephone calls to members.
You will also learn about our ongoing commitment to community fitness, demonstrated by our new sponsorships of National Walk@Lunch Day and Step Out: Walk to Fight Diabetes, and by the continued success of our Blue Cross Broad Street Run — events that inspired more than 26,000 people to get out and get moving along the road to wellness.
We were disappointed that our consolidation with Highmark Inc. did not take place. However, the detailed analysis of our business that we undertook yielded invaluable insights that will lead to more efficiencies and innovation for our customers. And, throughout the review process, our dedicated associates continued to focus passionately on our customers and introduce new capabilities, such as the cost-effective individual health plans we’re offering and the Clinical Alerts we’re sending a physician if a patient has not received the doctor’s recommended care.
Our company ended 2008 financially sound, but we were not immune to the impact of the historic stock market decline. We reported $11.4 billion in revenue and $111.2 million in net operating income. Although our investment and other income was positive for the year, like most companies, we saw significant fluctuation in our long-term investments. This resulted in a net income loss of $78.7 million.
As the nation’s financial uncertainty continues in 2009, we and the 38 other independent Blue health plans in the Blue Cross and Blue Shield Association strongly support reform so our health care system can provide affordable, high-quality coverage for all Americans. We believe the public will be best served by reform that builds upon employer-based coverage and focuses on affordability, wellness, prevention, safety, quality, universality, and portability — the same core principles set forth by the Obama administration and many in Congress. However, the issues facing health care are complex, and our company cannot on its own address the forces that drive up costs, drive down quality, and limit access. Working with physicians, hospitals, employers, brokers, and other key health care stakeholders, we have joined this important national discussion and stand ready to do our part.
Having battled colon cancer in 2007, I committed in 2008 to making health and fitness a personal priority. Getting on the treadmill was my first “meeting” every day. When I went out of town, I packed gym clothes, even if I had to leave something else behind. I am proud to say that on May 4, at age 55, I participated for the first time in the 10-mile 2008 Blue Cross Broad Street Run. Yes, countless runners flashed by me, but I finished. At the 2009 race, I’m determined to pass a few people myself.
I look forward to meeting you on the road to wellness.
