Yes, baby carrots are washed in a dilute chlorine bleach solution to clean them, but the chlorine evaporates fairly quickly leaving just water. Also, the amount of chlorine used is similar to that in public drinking water and poses no health risk.
Vitamins A and C and beta-carotene are naturally found in carrots. When it comes to cooking, vitamin A (a fat soluble vitamin) is not affected, while vitamin C (a water soluble vitamin) is depleted. Steaming carrots makes the beta-carotene more readily available. Check out our article on the Versatile Carrot and our Fruit & Veggie Recipe Database for more ways to cook with carrots.