Delivering best-in-class service and solutions. - United Concordia

2008
Delivering best-in-class service and solutions.
2008 ANNUAL REPORT

Our Mission
We are a national dental insurance company
providing high-quality, cost-effective dental benefit
programs. Our mission is to create superior value
for our stakeholders: customers, participating
dentists, employees, our owners and the
communities we serve.
Our Vision
Our vision is to be the dental industry leader by
providing our customers with the best value in
dental benefit programs through:
• Comprehensive dental networks and
access to care
• Innovative products and services
• Competitive and
fair pricing
• Outstanding service
delivered by highly
committed employees
• Commitment to
improving members’
oral health
Table of
Contents
1 Leadership Message
2 Overview
3 Best-In-Class Service
4 Best-In-Class Solutions
5 Focusing on Wellness
Saving Time
6 Making a Difference
7 Financials
8 Senior Management Team

Leadership Message
To each of you who made
2008 such a successful
year—our members, our
clients, our network providers,
our producers, our business
partners and especially the
United Concordia Dental
team—we thank you.
1
2008 was another solid year for United Concordia Dental.
We continued to increase our membership base; exceed our
benchmarks for service, satisfaction and network growth; and
develop new programs designed to sustain our success into
2009 and beyond.
Revenue approached $1.4 billion with a pre-tax profit of
more than $61 million.We invested in our people, our
operational capabilities and our systems infrastructure. Of
particular note,we began to lay the groundwork for new
online capabilities that will complement personal interaction,
allowing our various stakeholders to communicate with us
when and how they choose.
In 2008, we were awarded the new Active Duty Dental
Program (ADDP), with an effective date of August 1, 2009.
We will provide a network of over 50,000 dentists for an
expected 100,000 active duty service members (ADSMs)
annually.We also implemented the NCFlex dental program
for the State of North Carolina, and saw a doubling of
subscribers in our Federal Employee Dental and Vision
Program (FEDVIP) offering.We exceeded our goal for
network growth, adding nearly 2,200 new dentists to our
networks.We also introduced a new product enhancement,
Preventive Incentive ® , which extends a member’s benefit
dollars by exempting covered diagnostic and preventive
services from counting against the annual maximum.
Best-in-class service continues to be our hallmark.Whether
it is measured in the prompt, accurate payment of more than
13 million claims; a friendly, knowledgeable response to one
of nearly 10 million phoned, written or e-mailed inquiries;
or the flawlessly executed implementation of a new client,
we work hard to exceed expectations. And it’s reflected not
only in our financial success, but also in our client,
membership and network-provider retention.
While we expect to continue to grow in 2009, we know that
our success depends very much on how we adapt to the
breadth and depth of these challenging economic times.We
intend to manage through this period by being prudent
managers of both time and expenses, while also recognizing
and supporting the needs of our clients.We’ve already
implemented some expense-control measures as part of our
ongoing repositioning and are prepared to take other actions
should they be warranted.
Despite the ambiguities in the economy and the
uncertainties surrounding health care reform’s effect on our
industry, we are looking to our future.We are investing in
crucial elements within our company in order to position
ourselves to take advantage of the opportunities that will
arise when the economy recovers.We are investing in our
people through improved communications, leadership
training, job shadowing and recognition programs, and the
implementation of new core competencies, known as PACE
(passionate, accountable, collaborative and ethical).We are
investing in our infrastructure through a multi-year eBusiness
initiative.We are investing in our growth through new
product initiatives, cross-sales with our parent company and
sister subsidiaries, and new strategic relationships. Finally, we
are investing in our communities, with a minimum of 50
dental clinics to assist underserved individuals, and a greater
emphasis on volunteerism and outreach.
To each of you who made 2008 such a successful year—our
members, our clients, our network providers, our producers,
our business partners and especially the United Concordia
Dental team—we thank you.
Daniel J. Lebish
Chairman and CEO
F. G. “Chip” Merkel, III
President and COO

2
At United Concordia, our
company-wide dedication to
delivering best-in-class products
and services is evident in the
design, implementation,
administration and servicing of
our dental benefit programs.This
focus, along with our position as
one of the nation’s largest dental
insurers, enabled us to achieve
solid financial results for 2008.
United Concordia...
m Serves nearly 8 million members worldwide 1
m Covers more than 1.8 million active duty service family
members and National Guard Reservists and their
families as the selected dental carrier for the Department
of Defense’s TRICARE Dental Program 1
m Holds DIACAP 3 certification
m Has nearly 40 years of dental expertise 1
m Posted revenues of $1.4 billion in 2008 2
m Offers the only dental plans endorsed by the American
Hospital Association 4
m Maintains an A- (Excellent) A.M. Best rating 5
m Owns Advantage Plus, the largest discounted PPO
network in the nation, with 67,600 dentists at nearly
130,000 total locations 1 , and offering a 27% discount 6
m Retained 96% of members over the past 5 years 2
m Means satisfied members: more than 9 out of 10
members are satisfied with their United Concordia
Dental program 7
m Processed more than 13.3 million claims in 2008 2
m 97.9% within 14 days 2
m 99.9% within 30 days 2
m Handled over 50% of claims and over 70% of inquiry
transactions electronically as of 12/08
m Resolves 95% of telephone inquiries on first-contact 1
m Documents 100% of all member-inquiry calls
m Provides automated access to information 24/7, through
our Internet-based services and Interactive Voice
Response (IVR) system
1. Based on United Concordia internal research & reports, 4/09. 2. Based on United
Concordia internal research & reports, 12/08. 3. Department of Defense Information
Assurance Certification and Accreditation Process since 02/08. 4.AHA-solutions.org,
02/09. 5.A.M. Best Insurance Reports, 06/09.Applies to United Concordia
Companies, Inc., United Concordia Insurance Company, United Concordia Insurance
Company of NY and United Concordia Life and Health for overall financial strength and
ability to meet ongoing obligations to policyholders. 6. Discounts based on national average,
04/08. 7. United Concordia survey, members utilizing provider network, 2006.
More than 9 out of 10 members are satisfied with their United Concordia Dental program. 7

Best-in-Class Service
Service excellence has been and continues to be our
hallmark.Whether it is measured in the prompt, accurate
payment of more than 13 million claims; a friendly,
knowledgeable response to one of nearly 10 million
inquiries from members, dentists and group administrators;
or a flawlessly executed implementation of a new client,
we work hard to exceed expectations. And it’s reflected not
only in our financial success, but also in our client,
membership and network-provider retention.
Our commitment to service and quality is affirmed in
many ways. United Concordia’s members express their
satisfaction year after year in the surveys we conduct, both
among our membership base as a whole and for specific
clients. 2008 was no exception. In fact, we achieved our
highest member-satisfaction scores to date
in our annual national PPO member survey.
New clients and members provide another
measurement. Our growth came from the
public and private sectors, from clients large
and small, from 46 states across the nation.
And it’s expressed in persistency of current
clients and members.That we were awarded
the new Active Duty Dental Program for
August 1, 2009 implementation,
implemented a new state dental program
and renewed two others demonstrates the
success of our collaborative approach in
delivering value and service to our clients
and their members.
Our claims staff receives initial and ongoing
training, and with an average tenure of nine
years, there’s little that they haven’t already
seen and handled efficiently.They work as a
team with our customer service
representatives to resolve inquiries quickly.
Our customer service personnel receive
extensive training as well, to ensure that
’’
’’
’’
they can deliver fast and accurate service to our
members, group administrators and dentists. Not a day
goes by without letters, phone calls and emails thanking
us for our dedication and commitment to them and
their needs.
We are also very proud to serve more than 1.8 million
active duty service family members and National Guard
and Reservists and their families as the selected dental
carrier for the Department of Defense’s TRICARE
Dental Program.We appreciate the challenges our
military service members and their families face each day
and we’re dedicated to ensuring that they receive the
extra care and attention they deserve.
…is excellent! He is professional, polite – he
went above and beyond for me. Customer Service
like this is few and far between.
’’
~ Member, North Carolina
... went above and beyond to help me. She is a
very, very good customer service representative.
[She] is top notch!
’’ ~ Member, Hawaii
The TDP rep was wonderful and answered all my
questions. I wish United Concordia handled the
medical claims as well.
’’ ~ Military Spouse, California
3

4
Best-in-Class Solutions
As soon as a new client decides to move to United
Concordia, one of our experienced teams of
implementation specialists immediately begins
working directly with the client to get their United
Concordia dental plans up and running in a very
timely manner.Then an account service team is
assigned to the client to ensure that day-to-day needs
are met.
To support both small businesses and the producers
who represent them, we created the Small Business
Unit (SBU).The SBU is a team of experienced sales
and service representatives who are experts in
handling the needs of small businesses (group size 2 -
50).The SBU team is available to brokers and group
administrators to address their questions and concerns.
In late 2008, United Concordia began offering free
continuing-education classes for the producer
community and will expand the initiative in 2009.
Producers must attend continuing-education classes on
an annual basis in order to keep their insurance
licenses up to date.While many producers prefer to
take these classes in person, they are often deterred by
either lack of availability and/or cost considerations.
Our goal is to offer classes that are convenient and at
no cost for producers.These classes promote a
common knowledge of industry trends, terminology,
requirements and specifications, thus benefiting not
only the attendees, but carriers and clients
as well.
recruiting and retaining our dentist networks. Our
professional relations representatives not only
recruit dentists into the network, but also serve as
their advocates within United Concordia. Our
National Dental Advisory Council, comprised of
11 practicing dentists, is another way we ensure
that dentists’ concerns and needs are met.
We value each of our stakeholders highly, and
dedicate ourselves to exceeding expectations.We
work to understand each stakeholder’s unique
needs and to tailor solutions to meet those needs.
Access to care remains a key element in our
success.This goes beyond ensuring that
there are enough network dental providers
in the right locations to serve our
members—a key element in member
satisfaction. Provider satisfaction with
United Concordia is equally important in
’’
The implementation team was great. I enjoyed
working with everyone in setting up the account.
(The Implementation Manager) was very detailed
and kept us abreast of any and all changes.
’’
~ Lori Carson, Cubic Corporation
’’
Everyone involved in the implementation of the dental plan…were on
top of their game in regards to issues needing addressing.This was the
easiest implementation I have ever experienced.
’’
~ Phyllis L. Perry, State of North Carolina
Flex Program

Focusing on Wellness
In recent years, researchers have found that poor oral health is
associated with a range of health problems, including
cardiovascular disease, low-birthweight and preterm births,
diabetes, respiratory disease, and certain types of cancer.And
the list is growing. In order to help our members maintain
good oral health, we offer benefit plan features and information
that encourage our members to obtain preventive care, thereby
reducing their risk of developing more serious oral and overall
health problems.
In 2008, we launched a new benefit feature, Preventive
Incentive ® , which enables members’ benefits dollars to go
farther.With Preventive Incentive, all covered Class I
Diagnostic and Preventive dental services are exempted from
applying against a member’s annual plan maximum.These
Saving Time
Time is a precious resource for all of our stakeholders.We
continue to design and offer new solutions that make it easier
to do business with us, as well as save time and money for those
whom we serve and with whom we work.
Benefits administrators today wear many hats.We introduced
our secure online eBill system during 2008. eBill is a convenient
tool that clients can use to review and pay their bill quickly and
easily, whether it be premium or administrative fees and claims
reimbursement. In 2009 we will introduce eReporting, which
will enable them to run standard reports whenever they want.
Making it easy for producers to sell United Concordia’s
products is an ongoing goal for us.We work to provide them
with the resources they need to quickly and efficiently address
their clients’ dental benefits needs.Toward that end, in February
2008, United Concordia released ConcordiaConnect, an online
support tool for producers.This new technology allows brokers
and consultants to instantly issue standard proposals and rates,
request quotes for experience-rated groups, view and export
services may include cleanings, exams, x-rays, palliative
treatment, and fluoride treatments and sealants for dependent
children.
The Smile for Health ® Maternity Dental Benefit is a standard
benefit feature that provides pregnant women with an
additional dental cleaning during pregnancy.This extra cleaning
can help reduce the risk of periodontal (gum) disease which
has been linked to premature and low-birthweight babies, as
well as help control pregnancy gingivitis.
Our online Smile for Health ® Dental Health Center provides
members with information on the possible connection
between oral health and overall health, details on proper dental
care throughout life, oral health videos and a kids’ corner to
keep tots through teens interested in their dental health.
detailed commission payment reports, reference updated
product information and news, as well as review current and
request new state appointments.
Dentists’ offices are busy places.With our online tools, provider
offices can check on claims and payment status. Using My
Patients’ Benefits, office staff can confirm a patient’s eligibility
and see plan specifics, instantly.Approximately 50% of claims
that we receive are submitted electronically, speeding the
adjudication process…and helping the environment.
Members will have access to a cost estimator tool through
My Dental Benefits. In 2008 we introduced the ability for
members to sign up for paperless explanation of benefits
statements.This builds on the enthusiastic acceptance of My
Dental Benefits as a means of making available certificates of
coverage to our members.This not only is more convenient
for them, but it also helps all of us be more environmentally
conscious.
5
’’
The future of dentistry is very exciting, and will include evidence-based advancements
in dental technology that will better meet the needs of dental patients. In addition, we
will likely have the ability to tailor dental benefit programs to an individual’s unique
needs based on health status and life stage.
’’
~ Paul Manos, DDS, United Concordia California Dental Director

Making a Difference
6
’’
We take very seriously our responsibility to help the
communities we serve.We believe that strategic, socially
responsible initiatives create strong and vibrant
communities and help enhance our performance.
Through various program objectives, including corporate
giving, community outreach, outreach to military service
members and their families, and providing oral health
care to underserved individuals, United Concordia works
with groups and organizations to offer professional
development, education and health service opportunities.
Employee involvement is the cornerstone of United
Concordia’s community involvement, as it reflects the
high priority United Concordia places on being a good
corporate citizen in the communities in which we live
and work.
Harrisburg Area Community College (HACC) Dental Hygiene Program appreciates the support
and interest that United Concordia has shown to our program.We have partnered together to provide
dental care to underserved children in the Harrisburg area through United Concordia’s annual Free
Day of Care at our clinic.These children have been the recipients of free dental services provided by
United Concordia volunteer dentists and HACC dental hygiene students.These volunteer
opportunities enable our students to provide preventive services in a “real world” setting and encourage
them to “give back” to their community.This year, United Concordia has also shown support of our
students in the form of $5,000.00 in scholarship aid to first year dental hygiene students.
’’
~ Sandra Z. Zagar, RDH, MSA, Dental Hygiene Program Director, Harrisburg Area Community College
Free Dental Clinics
During 2008, we sponsored 30 free dental clinics,
providing more than $100,000 of free dental services
to nearly 2,500 individuals without dental insurance.
We are deeply appreciative of the volunteer dentists,
hygienists and others in the community who staff the
clinics.We work with our parent company,
Highmark Inc., and sister subsidiaries to sponsor some of
the clinics; others are the result of collaborations with
dental schools and community dental clinics.
Dental services performed at these clinics vary by
location and include screenings, cleanings, x-rays,
restorative treatments and sealants. Patients also learn
about proper oral hygiene and receive a
packet containing a toothbrush, floss and
oral health education information.
Through March 2009, United
Concordia has sponsored 19 clinics,
providing nearly $100,000 in free dental
services.This puts us well on the path to
our goal of at least 50 clinics across the
country this year.
’’
United Concordia is at the top of a short list of truly community
minded corporations that look at the big picture of service to others
and the greater good.
’’ ~ Rex Law, DDS, Chair,Texas Oral Health Coalition

Financials
CONSOLIDATED BALANCE SHEETS
As of December 31, 2008 2008 2007
(in thousands)
Assets
Cash and cash equivalents $ 231,052 $ 245,449
Investments 206,681 142,967
Receivables 145,270 138,211
Other Assets 47,618 47,127
Total Assets $ 630,621 $ 573,754
Liabilities and Stockholders’ Equity
Claims outstanding $ 106,382 $ 117,829
Unearned subscription income 73,316 78,115
Other payables and accrued expenses 100,502 77,818
Total Liabilities 280,200 273,762
Stockholders’ equity 350,421 299,992
Total Liabilities and Stockholders’ Equity $ 630,621 $ 573,754
7
CONSOLIDATED STATEMENTS OF OPERATIONS
For the year ended December 31, 2008 2008 2007
(in thousands)
Revenue $ 1,408,923 $ 1,310,009
Dental care expenses 1,093,376 1,019,288
Administrative and other expenses 221,718 204,841
Total Expenses 1,315,094 1,224,129
Income before taxes 93,829 85,880
Provision for income taxes 32,787 28,958
Net Income $ 61,042 $ 56,922
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the year ended December 31, 2008 2008 2007
(in thousands)
Net income $ 61,042 $ 56,922
Adjustments to reconcile net income to cash flows
provided by operating activities (12,121) 5,871
Net cash provided by operating activities 48,921 62,793
Net cash provided by (used in) investing activities (66,745) 24,232
Net cash provided by (used in) financing activities 3,427 (11,231)
Net (decrease) increase in cash and
cash equivalents (14,397) 75,794
Cash and cash equivalents at beginning of year 245,449 169,655
Cash and Cash Equivalents at End of Year $ 231,052 $ 245,449

Senior Management Team
8
Daniel J. Lebish *
Chairman and Chief Executive Officer
F. G. “Chip” Merkel, III*
President and Chief Operating Officer
Jon K. Seltenheim
Senior Vice President, Customer Service Operations
Daniel J. Wright
Senior Vice President, Finance
Lawrence D. McKinley, DDS
Corporate Vice President,TRICARE Dental Program
Harlon L. Robinson
Corporate Vice President, Human Resources and
Administration
Karen A. Whitesel
Corporate Vice President, Professional Relations
Richard P. Klich, DMD
Vice President and National Dental Director
Sandra F. Stefanic *
Vice President, Dental Enterprise Information Services
Richard J. Enterline *
Vice President and Deputy General Counsel
From left to right: Daniel Wright; Jon Seltenheim; Richard Klich, DMD; Lawrence McKinley, DDS; Harlon Robinson; Karen Whitesel.
*Not pictured

Office Locations
CORPORATE HEADQUARTERS
United Concordia
4401 Deer Path Road
Harrisburg, PA 17110
1-800-972-4191
REGIONAL OFFICES
400 Vestavia Parkway
Suite 205
Birmingham, AL 35216
Phone: 205-824-1235
Toll Free: 800-554-6155
2198 East Camelback Road
Suite 260
Phoenix, AZ 85016
Phone: 602-667-2200
Toll Free: 800-998-8224
516 West Shaw Avenue
Suite 200, Office #17
Fresno, CA 93704
Phone: 559-221-9400
Toll Free: 888-308-8224
4900 Hopyard Road
Suite 100
Pleasanton, CA 94588
Phone: 925-463-4845
4370 La Jolla Village Drive
Suite 429
San Diego, CA 92122
Phone: 858-646-3041
21700 Oxnard Street
Suite 500
Woodland Hills, CA 91367
Phone: 818-710-5181
Toll Free: 800-876-6432
999 18th Street
Suite 3000
Denver, CO 80202
Phone: 303-357-2388
1408 N.Westshore Blvd.
Suite 512
Tampa, FL 33607
Phone: 813-287-1823
Toll Free: 888-441-8585
2500 Northwinds Parkway
Suite 360
Alpharetta, GA 30009
Phone: 678-893-8650
Toll Free: 888-340-2001
849 West Maple Avenue
Suite 903
Homewood, IL 60430
Phone: 708-957-5320
309 International Circle
Suite 130
Hunt Valley, MD 21030
Phone: 443-886-9500
3250 W. Big Beaver
Suite 327
Troy, MI 48084
Phone: 248-458-1580
390 South Woods Mill Road
Suite 175
Chesterfield, MO 63017
Phone: 314-205-9605
4775 Indian School Rd. NE
Suite 310
Albuquerque, NM 87110
Phone: 505-353-5523
159 Express Street
Plainview, NY 11803
Phone: 516-827-6720
420 Fifth Avenue, 3rd Floor
New York, NY 10018
Phone: 212-921-0394
2601 Weston Parkway
Suite 103
Cary, NC 27513
Phone: 919-678-8060
Toll Free: 888-303-8224
525 North Tryon Street
Suite 1600
Charlotte, NC 28202
Phone: 704-331-6571
7000 S. Edgerton Road
Suite 106
Brecksville, OH 44141
Phone: 216-838-0431
121 Southwest Salmon Street
Suite 1132
Portland, OR 97204
Phone: 503-471-1466
Toll Free: 888-815-8224
120 5th Avenue
Suite P2503
Pittsburgh, PA 15222
Phone: 412-544-3650
1000 First Avenue
Suite 403
King of Prussia, PA 19406
Phone: 610-878-2260
Toll Free: 800-555-1825
175 Pine Street
Suite 205
Williamsport, PA 17701
Phone: 570-321-5124
8214 Westchester Drive
Suite 600
Dallas, TX 75225
Phone: 214-378-6410
11200 Westheimer
Suite 820
Houston, TX 77042
Phone: 713-787-0138
Toll Free: 888-828-6432
8000 IH 10 West
Suite 606
San Antonio, TX 78230
Phone: 210-524-7753
11350 Random Hills Road
Suite 842
Fairfax,VA 22030
Phone: 703-279-6563
4860 Cox Road
Suite 200
Glen Allen,VA 23060
Phone: 804-217-8336
Toll Free: 800-454-3224
2200 Sixth Avenue
Suite 804
Seattle, WA 98121
Phone: 206-374-0937
Toll Free: 888-245-8224

www.unitedconcordia.com