REPORT ON EXAMINATION

http://www.ins.state.ny.us/exam_rpt/55107f03.pdf


REPORT ON EXAMINATION
OF
EXCELLUS HEALTH PLAN, INC.
AS OF
DECEMBER 31, 2003


Excellus Health Plan, Inc. is a not-for-profit health service corporation organized
and licensed under Article 43 of the New York Insurance Law. The Plan also holds a
Certificate of Authority under Article 44 of the New York Public Health Law as a health
maintenance organization. The Plan operates using two assumed names, Excellus Blue
Cross and Blue Shield and Univera HealthCare.
At the examination date, Excellus, Inc. was the sole member of Excellus Health
Plan, Inc. Excellus Inc. changed its name on January 23, 2004 to Lifetime Healthcare,
Inc. d/b/a The Lifetime Healthcare Companies. Excellus Health Plan, Inc. is the
surviving entity resulting from the mergers of the Blue Cross/Blue Shield Plans in the
Rochester, Central New York, and Utica-Watertown regions and HMOs in Central and
Western New York including HMO-CNY and Univera Healthcare of Central and
Western New York.


The Plan’s mission, as cited in its internal website, and as ratified by the
board of directors at its October 1, 2004 meeting, is quoted in part as follows:
“Being responsible stewards of our communities’ health care premiums
and health care resources.”

Within its strategy statement, also cited within the internal website, the Plan notes
the following as a value:
“Reducing unnecessary, wasteful expense is essential.”


As of December 31, 2003 health care services were provided to 1,890,430
members. The following chart shows annual membership changes by number and
percentage:
1998 1999 2000 2001 2002 2003
Members 1,909,220 1,858,024 2,293,291 1,893,224 2,001,806 1,890,430
Change % -2.7% +23.4% -17.5% +5.7% - 5.6%
It is noted that the increase during calendar year 2000 was due, in large part, to a
restatement of membership associated with the 2001 merger with Univera, Inc. The
subsequent decrease during 2001 was the result of a change in treatment of the Plan’s
minimum premium/premium credit business.

Parent company
Lifetime Healthcare, Inc.* non for profit but the company under area many for profit have about 25 division ? companies