welcome
president and ceo's message
financial highlights
2000 milestones
leadershipour promiseprogress
service
balanceCareFirst in brief

photo: grandmother and grandchild

Progress
The challenges ahead for CareFirst are rooted in change and focus - how does the company respond to the shifting winds that continue to alter the course of medicine and the economics of health care? And how does it remain focused on maintaining long traditions of care and service, in a competitive atmosphere that demands greater efficiency and costly new technology?
The year just completed provided several significant examples that demonstrate CareFirst's capacity to accommodate change while, at the same time, respecting its commitment to remain focused on the needs of our members:Throughout 2000, we made substantial investments in new technology and information management, essential for CareFirst to be competitive in the emerging world of e-commerce. In March, we completed the affiliation with Blue Cross Blue Shield of Delaware. In July and September, faced with untenable financial losses in our public sector programs, difficult decisions were made to withdraw from the Medicare market and limit our participation in the Medicaid markets in 2001. In November, we completed the acquisition of The Preferred Health Network of Maryland (PHN), adding 85,500 new members to the CareFirst family and an innovative The company already is recognizing significant benefits from its affiliation with Blue Cross Blue Shield of Delaware. Projected membership growth in Delaware and additional synergies of that business combination are expected to add nearly $4 million to CareFirst's net income in 2001. CareFirst also continues to benefit from its dominant market position among Federal employees as a result of the 1998 affiliation of the Maryland and Washington-area Blue Cross and Blue Shield plans.Most importantly, CareFirst is building on a firm financial base - 33 consecutive quarters of profitable operations through year-end 2000. With a market share that represents 40 percent of the insurable population in the CareFirst service area, the company's financial stability is deeply rooted in its membership base.

chart graphic: enrollment by product total 2,997,312photo: woman at computer