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Anthem to Acquire America's 1st Choice

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Anthem, Inc. (NYSE:ANTM) today announced that the company has entered
into an agreement to acquire America's 1st Choice, a
privately‐held for‐profit Medicare Advantage organization that offers
HMO products, including Chronic Special Needs Plans (C-SNP) and
Dual-Eligible Special Needs Plans under its Freedom Health and Optimum
brands in Florida. The company also operates America's 1st
Choice of South Carolina.

"Over the last four years, Anthem has made a commitment to improve the
performance and quality of our Medicare platform, ensuring we provide
greater access to high-quality, affordable health care," said Joseph R.
Swedish, Chairman, President and Chief Executive Officer, Anthem. "As
we look ahead, we will continue to maintain a diligent focus on
innovating our Medicare Advantage product portfolio. The acquisition
of America's 1st Choice, which has strong technology
tools and expertise designing and implementing engagement programs, fits
well with our growth objective and will also enhance our ability
to deliver a broad variety of cost-effective high quality plans to meet
the diverse needs of the Medicare population."

America's 1st Choice has grown to become one of Florida's
preferred Medicare Advantage plans and a leading C-SNP in Florida. The
company currently serves approximately 130,000 members through its
Medicare Advantage plans in 25 Florida and three South Carolina
counties. Its proprietary technology tools, managerial processes and
member engagement programs help the company deliver efficient,
cost-effective health care services to its members. Additionally,
America's 1st Choice provides clinical and administrative
support that enables its broad network of providers to better manage
care for members in a high quality and cost-effective manner. Its health
plans were rated by The Centers for Medicare and Medicaid (CMS) as 5.0
and 4.0 in their Star Ratings for 2018.

"This acquisition further demonstrates our commitment to capitalize on
new opportunities in our Government Business Division that help expand
our presence and improve our capabilities to help serve the needs of the
most vulnerable populations, which includes Medicare, dual eligible as
well as those living with chronic conditions," said Peter D. Haytaian,
Executive Vice President, President, Government Business Division,
Anthem.

Financial terms of the transaction were not disclosed. The acquisition
is expected to close in the first quarter of 2018 and is subject to
approvals from state and federal regulatory authorities, standard
closing conditions and customary approvals required under the
Hart-Scott-Rodino Antitrust Improvements Act. The transaction is
expected to be slightly accretive to earnings in 2018.

Anthem's financial advisor is Centerview Partners LLC and its legal
advisor is White & Case LLP. Moelis & Company served as financial
advisor and Foley & Lardner LLP served as legal advisor to America's 1st
Choice and its investors.

Anthem management will be available to discuss this announcement during
the company's 3rd quarter conference call and webcast at 8:30
a.m. Eastern Daylight Time on October 25th.

About Anthem, Inc.

Anthem is working to transform health care with trusted and caring
solutions. Our health plan companies deliver quality products and
services that give their members access to the care they need. With over
74 million people served by its affiliated companies, including more
than 40 million within its family of health plans, Anthem is one of the
nation's leading health benefits companies. For more information about
Anthem's family of companies, please visit www.antheminc.com/companies.

Forward-Looking Statements

This document contains certain forward-looking information about us
that is intended to be covered by the safe harbor for "forward-looking
statements" provided by the Private Securities Litigation Reform Act of
1995. Forward-looking statements are generally not historical facts.
Words such as "expect," "feel," "believe," "will," "may," "should,"
"anticipate," "intend," "estimate," "project," "forecast," "plan" and
similar expressions are intended to identify forward-looking statements.
These statements include, but are not limited to: financial projections
and estimates and their underlying assumptions; statements regarding
plans, objectives and expectations with respect to future operations,
products and services; and statements regarding future performance. Such
statements are subject to certain risks and uncertainties, many of which
are difficult to predict and generally beyond our control, that could
cause actual results to differ materially from those expressed in, or
implied or projected by, the forward-looking statements. These risks and
uncertainties include: those discussed and identified in our public
filings with the U.S. Securities and Exchange Commission, or SEC;
increased government participation in, or regulation or taxation of
health benefits and managed care operations, including, but not limited
to, the impact of the Patient Protection and Affordable Care Act and the
Health Care and Education Reconciliation Act of 2010, or Health Care
Reform, and the impact of any future modification, repeal or replacement
of Health Care Reform; trends in health care costs and utilization
rates; our ability to secure sufficient premium rates including
regulatory approval for and implementation of such rates; our
participation in federal and state health insurance exchanges under
Health Care Reform, which have experienced and continue to experience
challenges due to implementation of initial and phased-in provisions of
Health Care Reform, and which entail uncertainties associated with the
mix and volume of business, particularly in our Individual and Small
Group markets, that could negatively impact the adequacy of our premium
rates and which may not be sufficiently offset by the risk apportionment
provisions of Health Care Reform; the ultimate outcome of litigation
between Cigna Corporation ("Cigna") and us related to the merger
agreement between the parties, including our claim for damages against
Cigna, Cigna's claim for payment of a termination fee and other damages
against us, and the potential for such litigation to cause us to incur
substantial costs, materially distract management and negatively impact
our reputation and financial positions; our ability to contract with
providers on cost-effective and competitive terms; competitor pricing
below market trends of increasing costs; reduced enrollment, as well as
a negative change in our health care product mix; risks and
uncertainties regarding Medicare and Medicaid programs, including those
related to non-compliance with the complex regulations imposed thereon
and funding risks with respect to revenue received from participation
therein; a downgrade in our financial strength ratings; increases in
costs and other liabilities associated with increased litigation,
government investigations, audits or reviews; medical malpractice or
professional liability claims or other risks related to health care
services provided by our subsidiaries; our ability to repurchase shares
of our common stock and pay dividends on our common stock due to the
adequacy of our cash flow and earnings and other
considerations; non-compliance by any party with the Express Scripts,
Inc. pharmacy benefit management services agreement, which could result
in financial penalties; our inability to meet customer demands, and
sanctions imposed by governmental entities, including the Centers for
Medicare and Medicaid Services; events that result in negative publicity
for us or the health benefits industry; failure to effectively maintain
and modernize our information systems; events that may negatively affect
our licenses with the Blue Cross and Blue Shield Association; state
guaranty fund assessments for insolvent insurers; possible impairment of
the value of our intangible assets if future results do not adequately
support goodwill and other intangible assets; intense competition to
attract and retain employees; unauthorized disclosure of member or
employee sensitive or confidential information, including the impact and
outcome of investigations, inquiries, claims and litigation related to
the cyber attack we reported in February 2015; changes in economic and
market conditions, as well as regulations that may negatively affect our
investment portfolios and liquidity; possible restrictions in the
payment of dividends by our subsidiaries and increases in required
minimum levels of capital and the potential negative effect from our
substantial amount of outstanding indebtedness; general risks associated
with mergers, acquisitions and strategic alliances; various laws and
provisions in our governing documents that may prevent or discourage
takeovers and business combinations; future public health epidemics and
catastrophes; and general economic downturns. Readers are cautioned not
to place undue reliance on these forward-looking statements that speak
only as of the date hereof. We do not undertake to update or revise any
forward-looking statements, except as required by applicable securities
laws. Investors are also advised to carefully review and consider the
various risks and other disclosures discussed in our SEC reports.

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