Date

Dear Valued Group:

Re:Important Changes To Your Health Coverage

We understand you have choices and we thank you for choosing Anthem Blue Cross for your company’s health care coverage. Our mission is to improve the lives of the people we serve and the health of our communities. We appreciate your continued trust and loyalty as we strive to achieve these goals.

What’s changingand what you need to do.

Effective with your renewal, we will be increasingpremium rates for all small group plans. Some clients may also experience a change in their current rating areas as we attempt to better align our rates with the costs of medical services in different regions of the state. This adjustment may increase, decrease or not impact the size of any rate change applied to your current plan(s).

Certain plans are also receiving benefit changes and/or legislative updates. Please take a close look at the enclosures in this renewal packet. They detail the changes to your group’s current plans and rates. We have also provided easy-to-use tools to help you explore your options at renewal. Inside you will find:

  • A Monthly Premium Comparison that includes newly-added dependent information that gives you a “snapshot” of how employee rates will be affected.
  • An Estimated Monthly Rate Optionsform that lets you see alternative health plan options. It’s also an easy form to use if your group changes plans. Just make your selection on the form, sign it and fax it to us.
  • A Plan Benefit Comparisonto help you make fully-informed decisions based on both rates and benefits.It shows the benefits for several popular options compared to some of the plans you currently offer to your employees.
  • (If applicable) Benefit Change Sheets that highlight the benefit changes and legislative updates to your employees’ current plans.

We’ve also enclosed packets for your employees that containrenewal letters and any applicable information on updates to their plan benefits. Updated Evidence of Coverage & Disclosure Forms/Certificates will be sent for your employees in a separate package.

If you want to renew with your current plan(s), you don’t have to do anything.

If you want to make any changes to your group’s coverage, please see the How to Request Changes grid online atanthem.com/easyrenew and follow the detailed instructions on the left-hand side of the grid.

If you have any questions after you have reviewed your renewal packet, please contact your agent or call us at

(800) 627-8797. Our Customer Service Representatives are here to help you between 8:30 a.m. and 7 p.m. PST,

Monday through Friday. Additional information, including forms, how-to guidelines, applications and brochures,

is available online at anthem.com/easyrenew.

Remember…you have choices.

We have new plan options available; please contact your agent for details. Your product portfolio gives you convenient choices and distinct advantages – all with you and your employees in mind. It offers a wide range of price options and benefit designs,including plans that allow you to share costs withyour employees. And remember to review your contribution options with your agentto make sure your choice isstill the right fit for your budget and your business.

If you don’t already offer dental, vision or life coverage to your employees through another carrier, you may want to consider our specialty products. With our Total Benefit Solution, you get simplified administration with one consolidated bill, along with these savings opportunities:

  • 1% health savings – When you purchase $25,000 or more in life coverage along with health coverage, you’ll save 1% on your health premium.*
  • 6% life savings plus 6% dental savings – When you purchase both $25,000 or more in life coverage and any of our insured dental plans at the same time, you’ll save 6% on both your life and dental premiums.

Keeping your employees healthy all year long.

The rising cost of quality care is a topic the whole health care industry has been struggling to solve – from doctors and hospitals to patients and ultimately businesses who offer health care coverage to their employees. A wide range of factors are driving the cost of health care, including;

  • Rising obesity rates and increases in related conditions of diabetes, high cholesterol and heart disease.
  • Aging of our population.
  • Legislation mandates and regulations.
  • Prescription drug costs.
  • Access to new technologies and treatments.
  • Cost shifting from under funded MediCal and Medicare programs.

Though rising healthcare costs are a reality we have to face, we can work together to manage those costs.All of our plans give your employees easy, practical ways to improve and manage their health.With 360° HEALTH,® our comprehensive suite of programs and services, you have a way to help your employees be as healthy as they can be and potentially reduce your costs in the process. 360° HEALTHgives your employees access to:

  • Online resources (including helpful decision-making tools)
  • Interactive health programs, including Healthy Living powered by WebMD®
  • Personal guidance
  • Savings on health-related products

Your employees will also appreciate the personalized programs designed to help manage and coordinate care for more than 40 chronic conditions. 360° HEALTH can help them at all stages of their lives, and wherever they are along the health spectrum. Be sure to visit our Website at anthem.com/ca to learn more about 360° HEALTH.

Introducing our Language Assistance Program.

If you or your employees need help understanding documents from Anthem Blue Cross that are in English, our language assistance program may help you. The program, effective January 1, 2009, provides free oral interpretations in many languages, as well as free written translations of vital documents for Spanish, Chinese, Tagalog, Korean and Vietnamese speakers. Just call Customer Service toll-free at (800) 627-8797 and a language representative will help you. You will not be charged any additional amount for using our language assistance program.

Let our solutions work for you.

As part of the largest health benefits company in the country (and as America’s Most Admired Health Care Company according to Fortune magazine), we have the experience, strength and stability to create – and stand by – solutions that work for you and your employees. Thank you again for choosing Anthem Blue Cross. We’re proud to work with you now and as your business grows.

Sincerely,

Joseph Ruiz

Vice President & General Manager,

Small Group Business

Anthem Blue Cross

Enclosures

*Lowest RAF possible is .90. RAF is guaranteed for one year. Your savings reflect administrative savings resulting from multi-line purchases.

Health care plans provided by Anthem Blue Cross. Insurance plans provided by Anthem Blue Cross Life and Health Insurance Company.Anthem Blue Cross is the trade name of Blue Cross of California. Independent licensees of the Blue Cross Association. ®ANTHEM, Lumenos and 360° HEALTH are registered trademarks.® The Blue Cross name and symbol are registered marks of the Blue Cross Association. The WebMD website is owned and operated by WebMD Health Corp. WebMD Health is solely responsible for its website and is not affiliated with Anthem Blue Cross or any affiliate of Anthem Blue Cross.

ECALT1800CEN 4/09G4