According to the National Coalition on Health Care, premiums for employer based health insurance rose 11.2 percent in 2004, the fourth consecutive year of double-digit increases. While CareFirst can't control all the factors affecting health care costs, as a not-for-profit insurer we take seriously our responsibility to keep health care affordable and accessible. That's why ensuring the affordability of care is a big part of CareFirst Commitment.

In 2005, CareFirst dramatically reduced its projected earnings to stabilize the cost of health care coverage for members. In addition, CareFirst continues to make administrative and care management improvements to make sure our members get the most for their health care dollar.

To provide more options to the uninsured, CareFirst has focused on developing a variety of low-cost, flexible products. These products are designed primarily for individuals under the age of 65 - many of whom are young and healthy and opt to go uninsured. These products and options include:

• BlueChoice Saver, a no-deductible HMO product that features lower monthly premiums in exchange for higher physician and specialist co-pays.
• BluePreferred Saver, a low-cost Preferred Provider Organization that offers lower monthly premiums with higher deductibles.

Also new is BlueFund, a Consumer Directed Health Plan that helps consumers more effectively manage health care dollars by combining a CareFirst health plan with an employer-funded Health Reimbursement Arrangement (HRA) or a Health Savings Account (HSA).