Known then as the Associated Hospital Service of Philadelphia, theorganization opened its doors November 7, 1938, under the leadership of E. A.Van Steenwyk, who founded Blue Cross Blue Shield of Minnesota and came toPhiladelphia to expand the Blue Cross brand. In rented quarters at 1429 WalnutStreet, Van Steenwyk and four associates comprised the entire original staff.They sat at desks borrowed from the University of Pennsylvania and used officeequipment bought with a small portion of a $30,000 loan from the CommunityChest, now the United Way, to finance a new health plan. At the close of itsfirst year, the health plan had 170,000 members.

Today, 70 years later, IBC and its affiliates insure nearly 3.4 millionmembers nationwide and employ 8,300 people throughout the region. Today, thecompany offers dozens of different health insurance plans, a complete range ofwellness programs, and groundbreaking initiatives to save customers money.What hasn't changed is IBC's continued commitment to innovation, focus onkeeping members healthy, and deep dedication to the community. Today, IBCcontinues to evolve as the health care industry is further redefined by theInternet, the aging Baby Boomer population, remarkable advances in medicine,steadily rising health care costs, an increasing number of uninsured, and evermore informed consumers.

"At Independence Blue Cross there is an overwhelming passion forexcellence and innovation to improve the health of its members and strengthenthe well-being of our community," said M. Walter D'Alessio, chair of IBC'sboard. "IBC's impact grew enormously under Fred DiBona, who led the companythrough the early 1990s managed care revolution and strengthened IBC'scommitment to serving its customers and community. That commitment moved to aneven higher level under current President and CEO Joe Frick, who is leadingthe company as the country faces a possible second revolution in health care.After 70 years, the company's success continues to be driven by its dedicationto responding swiftly to meet the needs of customers, members, physician andhospital partners, and associates."

Said Joseph A. Frick, president and CEO of IBC: "Providing access to highquality, affordable health care is what we do every day because the health andwell-being of our members and our community is our number one priority."

"Our dedicated associates work each and every day to identify new cuttingedge ways to improve the ease and speed of doing business with us, deliverinnovative initiatives that enable members to take control of their ownhealth, and help our customer hold the line on health care costs," said Frick."I'm proud to be part of an organization with outstanding associates who havebuilt on our rich history and are moving us forward toward a promising futurewith active engagement in our community as a hallmark of who we are."

IBC: More than a health insurer

Health care has evolved dramatically since 1938, and IBC has led the wayas a health insurer and advocate for quality care at an affordable price. Tomeet the changing needs of its customers and members during its 70-yearhistory, IBC has achieved many significant milestones, including:

-- Expanding access to care throughout the region. In 1946, IBC'senrollment eclipsed 1 million.

-- Banning smoking. In 1989, the American Lung Association honored IBC forimplementing one of the area's first stringent no-smoking policies in itsoffices, demonstrating IBC's dedication to the health of its employees.

-- Providing health insurance for children in low-income families. In1990, IBC created the Independence Blue Cross and Pennsylvania Blue ShieldCaring Foundation, a commitment to providing low-cost or free health insuranceto disadvantaged children.

-- Offering a new product design. In 1991, IBC merged its three existingHMOs and introduced Keystone Health Plan East. By 1993, Keystone was the thirdlargest and the fastest growing Blue HMO in the nation.

-- Encouraging healthy living. In 1992, IBC's Healthy Lifestyles(SM)program began encouraging healthy behaviors among members by givingreimbursements for active participation in exercise, weight loss, and smokingcessation.

-- Introducing a special plan for seniors. In 1993, IBC introducedKeystone 65, its first move into Medicare.

-- Improving maternity/infant care. In 1993, IBC began offering BabyBluePrints(R), a maternity program that provides case management and more tokeep expectant mothers healthy during their pregnancies.

-- Moving into the Internet Age. In 1996, IBC became one of the first Blueplans in the nation to introduce a website, ibx.com.

Addressing chronic diseases. In 2003, IBC enhanced its Connections(SM)Health Management Program by offering Health Coaches to help members managechronic illness like asthma, diabetes and heart disease.

Saving customers money on prescriptions. In 2006, IBC launchedFutureScripts, an independent pharmacy benefit company dedicated to loweringdrug costs.

Encouraging members to take prescribed drugs and save money with generics.In 2007, IBC introduced No Pay Copay, a creative program that waived copays ongeneric medications for one year to encourage members to switch from branddrugs to equally effective and much less costly generics, resulting in anincrease from 47% to 62% today in the use of generics.

-- Supporting the well-being of its community. Throughout its history, IBChas built the health and well-being of its community. In 2007, IBC contributedmore than $55 million to community activities, organizations, and outreachinitiatives, and associates devoted more than 12,080 volunteer hours,predominantly through the corporate volunteer program, the Blue Crew. IBC'skey outreach initiatives include:

The Nurse Scholars Program. Founded in 2004, this program helps improvethe quality of care and reduce health care costs by addressing the criticalshortage of nurses in our region by giving scholarships for nursing studentsto 29 local nursing schools.

The Charitable Medical Care Grant Program. Launched in 2003, this programexpands access to quality, affordable health care by funding 31 clinics insurrounding communities that provide free or low-cost care to more than 90,000uninsured and underinsured.

Summer internship program. In 2008 alone, IBC welcomed 54 high schoolinterns and 52 college interns to help prepare the students for futurecareers.

Sponsorship of large-scale community events. IBC sponsors the followingevents to build the health of its community:

-- United Way Day of Caring, sponsored since 1995. -- Blue Cross Broad Street Run, the event's title sponsor since 1997. -- One Book One Philadelphia, sponsored since 2003. -- National Walk at Lunch Day, sponsored for the first time in 2008. -- Step Out: Walk to Fight Diabetes, sponsored for the first time in 2008. About Independence Blue Cross

Independence Blue Cross is a leading health insurer in SoutheasternPennsylvania. IBC and its affiliates provide coverage to nearly 3.4 millionpeople nationwide. For 70 years, Independence Blue Cross has offered high-quality health care coverage tailored to meet the changing needs of members,employers, and health care professionals. Independence Blue Cross is anindependent licensee of the Blue Cross Blue Shield Association, an associationof independent Blue Cross and Blue Shield Plans.

SOURCE Independence Blue Cross