Annual Report
Our Plan

Solving the rising cost of health care issue is a shared responsibility. And we are committed to doing our part. In 2010, our company refreshed our plan for the future, laying the foundation for our work to help reduce the cost of health care, while ensuring continued improvements in quality. Our plan includes:

  • Developing the next generation of health plans that will provide our members with more opportunities to choose a plan that provides value—high-quality care at an affordable price. These plans will engage our members in the health care decision-making process, while offering savings in both premiums and out-of-pocket costs when members choose to receive care from high-value providers.

  • Building on the success we have achieved in changing the way we pay for health care with our
    PDF Alternative Quality Contract (AQC), we will continue to encourage doctors and hospitals to take more responsibility and accountability for the cost of care they provide. The AQC encourages efficiency and helps eliminate unnecessary care. Instead of paying for more tests, more visits, and more procedures, this new contract rewards physicians and hospitals for efficiency, improved quality, and better patient outcomes. Early results from providers that have been operating under the AQC for at least a year, are promising.

  • We are implementing new initiatives that help our members make lifestyle choices that promote better health. These programs will encourage us, as well as providers and patients to act as true partners in the effort to improve the health of members who suffer from chronic conditions. Since 5 percent of our members with serious health issues account for 50 percent of our medical spending, these initiatives can help members live healthier, longer lives while conserving health care resources.

  • We are creating a member service experience that is easy-to-use, more meaningful, and more personal for our members. Using technology, we will offer our members new choices in how they do business with us. We will create new ways to educate and inform our members, helping them to understand and use our health plans to make better health care choices.

  • Finally, we will continue to be careful stewards of health care resources. Our ongoing efforts to cut costs, create efficiencies, and responsibly manage the premiums entrusted to us means just 10 cents of every premium dollar is used to pay for our administrative expenses and to ensure an adequate level of financial reserves. Ninety cents of every premium dollar is used to pay for the health care of our members.

Our course is clear, the strategy is in place, and you can expect to learn much more as we work to achieve our vision of making quality health care affordable.

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