Your Mind, Your Body, Your Spirit, Your Health

welcome
president and ceo's message
chairman's messagefinancial highlights
2000 milestones
leadership
our promise
CareFirst in brief
photo: William L. Jews

Message from the President and Chief Exeutive Officer
CareFirst today is a different company from the one reviewed in our report 12 months ago. The year just past was one of significant change as CareFirst grew stronger in the marketplace, prepared for the age of e-commerce and adopted a more flexible strategy for providing our members with quality health care that is both affordable and accessible.
In focusing on the future, we see the pace of change in health care accelerating. For that reason alone, our ability to accept new ways of doing business, to meet higher standards of performance, and to be a leader in putting customers first will ultimately define how successful we will be in the years just ahead.
Faced with similar challenges in the past, CareFirst associates have responded remarkably well. Through their efforts in 2000, the company again posted significant gains in membership, revenues and reserves, improved the efficiency of administrative operations and for the fourth year in a row won the prestigious Blue Cross and Blue Shield Association's
As we move forward in 2001 to address the changing demands of our regional marketplace, CareFirst is realizing the anticipated benefits and synergies of the business affiliations that brought together the Blue Cross and Blue Shield plans in Washington, D.C. and Maryland. We anticipate that the affiliation with Blue Cross Blue Shield of Delaware in 2000 will continue to provide opportunities to support our customers throughout the region. Ultimately, we will realize our goal of offering our members a regional network of health care resources - physicians, hospitals and other medical professionals. We also continued our efforts to empower our members, working with their physicians, to assume greater control over decisions affecting their health care.
As CareFirst expands into new markets, we take with us a long tradition of community involvement. We are especially proud of our comprehensive awareness and education programs to encourage childhood immunization and control asthma, diabetes and breast cancer. The company also introduced in 2000 a new prescription program for seniors in rural areas. CareFirst will continue to be an active citizen in the communities we serve, helping those with whom we live and work to understand and use the most effective means possible to achieve and maintain good health.
As suggested by the theme of this report, we accept that responsibility in the broadest possible context - encompassing the Mind, the Body, the Spirit, and the Health of the members we serve. We also accept the reality that new challenges and greater demands will confront CareFirst as we move forward. Whatever those challenges and uncertainties, we will continue to support our members - always protecting their interests as we make it easier for them to access and to understand their health care.The many achievements of CareFirst associates in 2000 are evidence of this commitment. I remain sincerely grateful for their support and that of the governing board for the company's record of outstanding performance.
William L. Jews
William L. Jews, President and Chief Executive Officer