WellPoint Completes Acquisition of MethodistCare; Strengthens UNICARE Commitment to Growth in...

Business Editors & Health/Medical/Insurance

THOUSAND OAKS, Calif.--(BUSINESS WIRE)--April 30, 2002

WellPoint Health Networks Inc. (NYSE:WLP), one of the nation's largest publicly traded health care companies, today announced that it has completed its acquisition of MethodistCare,

Subject to regulatory approval, the MethodistCare HMO and POS plans will be renamed UNICARE Health Plans of Texas, Inc., and the health insurer, which offers PPO products, will be renamed UNICARE Health Insurance Company of Texas. With the completion of this transaction, UNICARE, WellPoint's national operating unit, will serve 422,300 members throughout Texas, and 215,540 members in the Metropolitan Houston area.

"This transaction significantly enhances our product portfolio in the Houston area and gives us an opportunity to build our UNICARE brand," said Leonard D. Schaeffer, WellPoint's chairman and chief executive officer. "This transaction also gives UNICARE members increased access to affordable, high-quality care by strengthening our relationship with Methodist Health Care System. Its flagship, Methodist, is recognized as one of the leading hospitals in the United States and is one of the top centers in numerous clinical areas."

WellPoint is committed to offering a range of products that deliver choice and flexibility and put members in control of their health care. "This acquisition enables UNICARE to expand its product line for all group market segments by offering HMO products along with other open access products," said Sandra Van Trease, UNICARE's president. "The combination of UNICARE's business with MethodistCare's comprehensive line of products will allow us to enhance and strengthen our presence in the Houston market."

WellPoint Health Networks Inc. serves the health care needs of more than 13 million medical members and approximately 42.6 million specialty members nationwide through Blue Cross of California, Blue Cross and Blue Shield of Georgia, Blue Cross and Blue Shield of Missouri, HealthLink and UNICARE. WellPoint offers a broad spectrum of quality network-based health products including open access PPO, POS and hybrid products, HMO and specialty products. Specialty products include pharmacy benefit management, dental, utilization management, vision, mental health, life and disability insurance, long-term care insurance, flexible spending accounts, COBRA administration and Medicare supplements.

Cautionary Statement: Certain statements contained in this press release are forward-looking statements. Actual results could differ materially due to, among other things, operational and other difficulties associated with integrating acquired businesses, business conditions and competition among managed care companies, rising health care costs, trends in medical loss ratios, health care reform and other regulatory issues, and the timing of receipt of regulatory, shareholder and other approvals. Additional risk factors are listed from time to time in the Company's various SEC reports, including, but not limited to, the Company's Annual Report on Form 10-K for the year ended December 31, 2001.