CareFirst BlueCross BlueShield (CareFirst) stands on the threshold of a new generation of health care. Medical technology, innovation, the health care needs of our members and the changing nature of the marketplace are redefining what health care means and how it is provided. Hardly a day passes without a report of some new medical discovery, groundbreaking health practice or updated health plan strategy. Why so much activity? Why so much change?

The answer is simple. A new generation of health care is rising. Innovative medical procedures, miracle drugs and tools of technology are making health care more effective, but also more complex and more expensive. This new generation of health care forges a link between good health and good life. It celebrates one’s sense of well being and active involvement — regardless of age — and rewards us with strength, security and confidence about the future.

CareFirst is changing, too — in fact, redefining itself — to be a part of this new generation. The transformation requires that we build upon the firm foundation of our past, preserving the consumer trust and security long identified with the Blue Cross and Blue Shield brand. Beyond that, we must commit substantial resources to accommodate the future, adopt new ways of doing business and offer new products and services to a market with heightened expectations. Most importantly, however, this challenge requires CareFirst to remain clearly focused on the needs of our customer accounts, our members and the communities we serve.

That focus is the core strategy driving CareFirst’s growth and underlies the achievements of 2001 as proudly set forth in this report.