One word describes CareFirst BlueCross BlueShield’s (CareFirst’s) performance in 2004 — “focused.” By resolutely remaining focused on serving the needs of all of our customers, we faced the year’s many challenges and emerged an even stronger company — customer-centered, financially secure, and more determined than ever to continue a tradition of community outreach that dates back more than 70 years.

We go forward with confidence that we can build on 2004’s solid results — through serving our policy holders with products supported by the company’s strongest financial performance ever. We are equally confident that, by embracing new technologies, CareFirst will further enhance efficiency, while improving the satisfaction of customers, be they members, accounts, health care providers or brokers. Even with that, we are not satisfied with our record of paying 99 percent of the 41.7 million claims submitted last year within 30 days. Our target for 2005 is to continue improving our service metrics for our customers.

By offering a comprehensive portfolio of products and services that provide an array of options for individuals, families and employers, CareFirst continues to be a leader in an increasingly competitive marketplace. Responding to the demands of our customers, we moderated pricing and introduced new products, including innovative, cost-effective consumer-directed health plans. To provide more coordinated services for our customers, CareFirst contracted with Davis Vision, a nationally recognized provider of vision services, and purchased The Dental Network, offering members an even broader choice of dental providers.

While providing an array of product options is important, ensuring the quality of those products was another area where CareFirst focused in 2004. CareFirst’s BlueChoice HMO and BluePreferred PPO received the highest possible accreditation from the National Committee for Quality Assurance.

We also focused on technological improvements — better serving members, providers and brokers. Through the “My Account” link on our www.carefirst.com Web site, customers have 24-hour, 7-day-a-week access to view the status of their claims, change personal information or select a provider. They can even send emails directly to our customer service department. Through “CareFirst Direct,” physicians and other health care professionals can check the status of claims they submitted on behalf of our members, view eligibility status of their patients, and check their patients’ benefits. The new “Broker Express” offers brokers a Web-based tool to develop, price and track proposals to their accounts.

As we celebrated our 70th year of serving the health care coverage needs of our members in Delaware, Maryland, Washington, D.C. and Northern Virginia, we also focused on strengthening and enhancing our outreach to all of the communities we serve. Embracing our mission as a not-for-profit
health care plan, we focused on strategies for delivering the best value to customers while increasing affordability of coverage, and on partnerships promoting quality and safety, preventing disease and injury, and restraining spiraling health care costs. Finally, much of our charitable giving was directed to innovative health and wellness initiatives, including nearly $500,000 to a dozen groups to address the crisis of obesity facing our communities.

Looking forward, we remain firmly committed — and focused — on fulfilling our mission to provide quality, affordable and accessible health care coverage to the more than 3.3 million members who depend on us to be there when needed while expanding the health care resources in the communities in which we operate.

Sincerely,

William L. Jews
President and Chief Executive Officer