Filed by RightCHOICE Managed Care, Inc.
Pursuant to Rule 425 under the Securities Act of 1933
Subject Company: RightCHOICE Managed Care, Inc.
Commission File No. 333-34750
Caution Concerning Forward-Looking Statements
The following communications include "forward-looking
statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements are based
on management's current expectations and are naturally
subject to uncertainty and changes in circumstances. Actual
results may vary materially from the expectations described
above. Investors should not view these forward-looking
statements as guarantees of future performance. The risks
and uncertainties that could cause actual results to differ
materially are detailed in the company's filings with the
Securities and Exchange Commission, including its most
recent Quarterly Report on Form 10-Q and Annual Report on
Form 10-K. RightCHOICE is not under any obligation, and
expressly disclaims any obligation, to update or alter its
forward-looking statements whether as a result of new
information, future events or otherwise.
Important Information about Proposed Reorganization
RightCHOICE Managed Care, Inc., a Delaware corporation,
referred to below as New RightCHOICE, together with
RightCHOICE Managed Care, Inc., a Missouri corporation,
referred to below as RightCHOICE, has filed with the
Securities and Exchange Commission a definitive proxy
statement/prospectus and other documents regarding the
proposed settlement and reorganization transaction referred
to above. You are urged to read the definitive proxy
statement/prospectus and other documents because they
contain important information. You may obtain a free copy
of the definitive proxy statement/prospectus and other
documents filed by New RightCHOICE (as well as by
RightCHOICE) with the SEC at the SEC's web site at
www.sec.gov. The definitive proxy statement/prospectus and
these other documents may also be obtained for free by
RightCHOICE shareholders by directing a request to:
RightCHOICE Managed Care, Inc., 1831 Chestnut Street, St.
Louis, Missouri, 63103, Attn: Investor Relations, telephone
number (314) 923-4831; e-mail: [email protected].
RightCHOICE and its respective officers, directors,
employees and agents may be deemed to be participants in the
solicitation of proxies from their shareholders with respect
to the reorganization transaction. Information concerning
the participants in the solicitation is set forth in the
definitive proxy statement/prospectus.
RightCHOICE Managed Care, Inc.
1831 Chestnut Street
St. Louis, MO 63103-2275
PaineWebber Health Care
Analyst Presentation
11/14/00
Sales and Marketing Overview - Michael Fulk, SVP, Chief
Marketing Officer
Product Portfolio
HMO, POS, PPO, and Indemnity
Ancillary Products (MGA)
Funding Alternatives (Insured, Net Cost, Minimum
Premium, and ASO)
Market Segments
Individual Products (< 65 and > 65)
Small Markets (2 - 25)
Emerging Markets (26 - 99)
Large Markets (100 - 499)
Strategic Markets (500+)
Taft Hartley
Self-Insured
TPA/Carrier
Distribution Strategy
Broker/Consultants
Direct Response
Small Group Unit
Account Executive/Consultive Sales
Employer Focused Marketing
Competition
United HealthCare
Coventry (GHP)
Aetna
Cigna
Provider Sponsored Organizations
New Product Designs
3 tier Pharmacy with $250 Deductible
$20 Copay for Physicians
In Network Deductibles and Expanded Copays
Evaluating Defined Contribution
BCBS National Network Strategy
Blue Card PPO
Blue Card POS
Blue Card HMO
BCBS Branding Strategy
Local/National
Medical Management - John Seidenfeld, M.D., Corporate Medical Officer,
Slide 1: Medical Management Overview
ABCBS Managed Care; Vision
Value
Variability
Prevention
Ethical Care
Slide 2: Utilization Management
Local Dialogue
Reduce hassle
Physicians' manage care (PGPP - registered trademark)
Review and educate outliers
Concentrate on care management
Slide 3: Management Strategy
Medical Blueprint
Physician Input; PCC & ICC
Peer review and discussion
Minimize pre-authorization; cosmetic, etc.
Concurrent review
Care management
Slide 4: Medical Variability
[X-Y axis bar graph: x-axis represents cath/1000 males 45-64
and y-axis represents cities/states, an average of those
cities, the US average, and the west/ north central region
average - data below]
Chart title: Cath/1000 Males 45-64
Boston 11.92
California 8.45
Denver 7.34
Indianapolis 13.99
Minneapolis 9.22
Rochester 14.8
St. Louis 17.64
Seattle 15.7
Avg 12.38
US Avg 16.43
Avg West North Central Region 16.18
Slide 5: Medical Variability [cont'd.]
[x-y axis bar graph: x-axis represents CABG/1000 males 45-64
and y-axis represents cities/states, an average of those
cities, the US average, and the west/ north central region
average - data below]
Chart Title: CABG/1000 Males 45-64
Boston 3.1
California 2.66
Denver 4.85
Indianapolis 3.9
Minneapolis 3.37
Rochester 3.35
St. Louis 6.68
Seattle 4.69
Avg 4.08
US Avg 5.11
Avg West North Central Region 6.77
Slide 6: Summary
Relationships are important
Help physicians make good decisions (palm technology,
PGPP)
Better understand trend drivers
Care management
Client Services - Stuart Campbell, SVP
Slide 1: Strategies for Superior Service
Client-focused culture
Mindset of continuous improvement - "do it right the first time"
Employee empowerment
Employee satisfaction/retention
Slide 2: Strategies for Superior Service
FACETS
Internet
CAQH
Proactive member communications
Individual Considerations Committee
Slide 3: Service Level Indicators - PPO
99Q3 00Q3
Enrollment Accuracy 96.8% 98.5%
Enrollment Timeliness 75.8% 97.8%
Claims Dollar Accuracy 96.2% 98.4%
Claims Timeliness (days) 5.3 6.8
Inquiry Accuracy 92.4% 95.0%
Abandoned calls 6.3% 7.8%
SOURCE: MTM/NMIS Reports filed with Blue Cross Blue Shield Association
Slide 4: Service Level Indicators - HMO
99Q3 00Q3
Enrollment Accuracy 91.1% 97.4%
Enrollment Timeliness 47.4% 97.9%
Claims Dollar Accuracy 91.0% 97.5%
Claims Timeliness (days) 17.8 9.7
Inquiry Accuracy 94.9% 95.7%
Abandoned calls 13.0% 6.5%
SOURCE: MTM/NMIS Reports filed with Blue Cross Blue Shield Association
Slide 5: BlueCard Claims Timeliness
Product is key to growth in membership
BlueCard Index above BCBSA benchmark of 80 points for
28 of last 29 months
Index above 90 points for 23 of 29 months
In 1999 G&A savings were over $900,000
