William L. Jews
President and Chief Executive Officer

Dan A. Colussy
Chairman of the Board

An important milestone was reached in 1997 when regulatory approval was granted to allow Blue Cross and Blue Shield of Maryland to combine operations with those of Blue Cross and Blue Shield of the National Capital Area under a new holding company, CareFirst, Inc.


Combining operations brings both companies closer to their strategic objectives in a demanding regional market. Together, Blue Cross and Blue Shield of Maryland and Blue Cross and Blue Shield of the National Capital Area deliver greater health care value through expanded hospital and physician networks that better serve members living in one area and working in another. CareFirst will realize greater economies of scale through streamlined operations which will avoid duplicative spending. For you, our customers, we will provide greater access to health care resources, expanded product lines and increasing value over time.

We are grateful for the loyalty and support of our customers as we enter this new phase of our regional corporate expansion. We also appreciate the understanding and encouragement provided by the administrators and brokers who represent us in the marketplace and by the medical professionals who, through Blue Cross and Blue Shield of Maryland's expansive networks, share our commitment to quality health care.

We are pleased to report to you that, during 1997, the Company saw:

  • 100,000 new members–boosting total membership to 1.5 million.
  • New products and services introduced–including the triple option, point-of-service product lines of the Preferred Health Network.
  • For the first time, revenues surpassed the $2 billion mark.
  • Creative new partnerships and alliances–with The Guilford Group for workers’ compensation and Genesis Health Ventures for home care services.
  • Participation in Maryland’s Medicaid managed care initiative, through a unique partnership with providers called CarePartners, Inc., a medical services organization.

Our associates–the term we now use for our employees at Blue Cross and Blue Shield of Maryland–are to be commended because throughout this challenging year they maintained the same high standards of service that our customers have come to expect. We thank them, for without them no service is possible.

We are confident that the financial strength of Blue Cross and Blue Shield of Maryland, together with the competence and dedication of our associates and the expanded opportunities within our market, have positioned CareFirst, Inc. for future growth. We look forward to serving you.


William L. Jews
President & Chief Executive Officer


Dan A. Colussy
Chairman of the Board