4th Annual Investor Conference

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4th Annual Investor Conference
Jay Gellert President and CEO

• May 16, 2001

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Key Questions

• Have We Resolved Our Past Issues?
• Can We Show Earnings Visibility into the Future?
• Can We Avoid the Historical Cyclicality of the
  Health Plan Business?

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Key Questions

• Can the Government/Specialty Business be a Stable
  Contributor?
• Can We Demonstrate a Positive Impact on the
  Quality and Cost Effectiveness of Care?
• Will Business Transformation Contribute
  Demonstrably to our Future?

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General Long-Term Targets

• Double-Digit Health Plan Revenue Growth
• Pricing and Enrollment Growth
• But Not at the Expense of Margin
• Flat To Lower Health Plan MCR
• SGA Down by at Least 100 Bps Over 3-Year Period
• Debt-to-Total Capital Below 30 Percent by 2003
• Consistent ROE of 20 Percent by 2003

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01 Priorities

• Settle Past Issues Florida and Arizona
• Control Costs
• Stabilize Government/Specialty Business

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02 Priorities

• Pricing and Benefits Ahead of Medical Costs
• Continue SGA Savings
• Stable Government/Specialty Performance
• Profitable Growth

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03 Priorities

• Pricing and Benefits Ahead of Medical Costs
• Demonstrate a Clear Value Equation to Purchasers
  and Members
• Gain Real Productivity Savings
• Make Wise Use of Capital

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Challenges

• Legal/Regulatory/Legislative
• Lack of Discipline
• Unrealistic Expectations
• New Entrants/New Approaches

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Opportunities

• Growth/Consolidation
• Provider Relationships
• Government/Specialty Opportunities
• Business Transformation