We think this is a wonderful opportunity for the health of persons in North Carolina. We believe this new partnership between the Blue Cross and Blue Shield Foundation and the North Carolina Medical Society Foundation will make a real difference in the lives of North Carolinians.

The results of our 2004 program were so successful that we are extending it to a six-month period this year. Using generics when appropriate cuts members' out-of-pocket expenses, but it also helps hold down overall medical costs. Since prescription-drug costs are a key driver of rising medical costs, the long-term increased use of generics impacts future premiums to the benefit of our customers.

We believe so strongly that it will improve prescription accuracy and lower prescription drug costs for all North Carolinians, that we are investing in its adoption among the medical practices most likely to benefit from it.

If you can imagine getting the flu and having to drive an hour to the nearest doctor or health care provider, or imagine having a sick child with no insurance and no resources to pay for the doctor visit. These are very real things in a lot of areas of North Carolina.

Partnering with the Community Practitioner Program is an important step we can take today to have an immediate and direct impact. The program will also improve the delivery of preventive care, which we consider essential to managing overall health care costs more effectively.

We believe Bridges to Excellence will raise the quality of care for our members and State Health Plan members, as well as make a difference in the fight to reduce health-care costs.

Our company's financial stability has afforded us the opportunity to invest in initiatives for our members and our state that will bear long-term results in moderating health-care costs.