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Network: Anthem and SCIPPA Form 1st ACO for PPO Members

Aug 22, 2011

Press Release
August 10, 2011

Anthem Blue Cross and Individual Practice Association Medical Group of Santa Clara
County to Form First ACO for PPO Members in Northern California

Agreement includes direct contract with an IPA for Anthem Prudent Buyer member population

WOODLAND HILLS, Calif., and FOSTER CITY, Calif. —August 10, 2011— Anthem Blue Cross and
Individual Practice Association Medical Group of Santa Clara County (SCCIPA), today announced
they are launching an Accountable Care Organization (ACO) program to provide coordinated,
seamless medical care to Anthem PPO members in the Silicon Valley. The ACO is the first of its
kind in Northern California, and includes a direct contract agreement between Anthem and the IPA.

Anthem Blue Cross expects that initially tens of thousands of PPO members whose physicians
participate in the SCCIPA network will benefit from the care coordination, chronic disease
management, increased provider accountability, and improved availability of medical information for
patient decision-making that are hallmarks of the ACO model. SCCIPA’s network includes 284
primary care physicians, 550 specialists and ten acute care facilities throughout Santa Clara County.
Members will be included in the program if they have received the majority of their medical care
from these same treating physicians in the past and where there is already a strong
physician/patient relationship.

“We are pleased to expand our relationship with SCCIPA to include both a direct provider group
contract and the launch of an ACO model,” said Pam Kehaly, president of Anthem Blue Cross.
“Individuals who receive coordinated, patient-centered care through a collaborative partnership with
their physicians can better navigate their options and more effectively manage their health care
needs. SCCIPA’s investment in its innovative coordinated care IT platform and demonstrated quality
clinical and administrative management performance across its electronically integrated network,
make them an ideal partner to offer our first ACO model in northern California.”

J. Kersten Kraft, MD, a practicing urologist and president of SCCIPA notes, “We continue to refine
our coordinated care model to deliver a better-quality member experience through enhanced
communication, better compliance, optimal utilization of in-network providers and generic
medications, and reduction of unnecessary procedures, hospital admissions and readmissions.
We’re looking forward to the opportunity to serve the needs of Anthem Blue Cross Prudent Buyer
members through our new ACO structure.”

About Anthem Blue Cross
Anthem Blue Cross is the trade name of Blue Cross of California. Anthem Blue Cross and Anthem
Blue Cross Life and Health Insurance Company are independent licensees of the Blue Cross
Association. ® ANTHEM is a registered trademark of Anthem Insurance Companies, Inc. The Blue
Cross names and symbols are registered marks of the Blue Cross Association. Also follow us on
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With its roots in the heart of the Silicon Valley, the Individual Practice Association Medical Group of
Santa Clara County Inc., (SCCIPA) integrates a network of more than 800 physicians and ten
hospitals throughout Santa Clara County. SCCIPA cares for more than 65,000 health plan members
who can choose from 284 primary care physicians (family practice, internal medicine and pediatrics)
and 550 specialists. SCCIPA operates like a clinic without walls, linking patients and health plans
electronically with an established network of physicians, hospitals, lab, x-ray, physical therapy and
other providers.
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