

                MEDICARE MANAGED CARE CONTRACT REPORT
                    (DATA AS OF DECEMBER 01, 1989)

      ATTACHED FOR YOUR INFORMATION IS A SUMMARY OF STATISTICS REGARDING
      MEDICARE CONTRACTS WITH PREPAID ORGANIZATIONS.

      CURRENT CONTRACT SUMMARY:     NUMBER OF PLANS          ENROLLEES
      ------------------------      ---------------          ---------
         TOTAL PREPAID CONTRACTS         195                 1,842,554
             RISK (INCLUDES 5 DCGS)      131                 1,134,039
             OLD RISK                      2                    10,793
             COST                         23                   129,915
             OTHER DEMOS                   4                    16,681
             HCPPS                        35                   551,126

      PAYMENT STATISTICS:
      ------------------
         $362M    TOTAL PAYMENT MADE TO ALL PREPAID PLANS FOR DECEMBER 1989
         $1,090M   FISCAL YEAR TO DATE.

      ENROLLMENT STATISTICS
      ---------------------
             RISK ENROLLMENT CHANGED FROM  1,124,387 IN NOVEMBER
                  TO  1,134,039 IN DECEMBER OR 0.9% INCREASE.
             TOTAL ENROLLMENT CHANGED FROM  1,833,684 IN NOVEMBER
                   TO  1,842,554 IN DECEMBER OR 0.5% INCREASE.

      CHANGES SINCE NOVEMBER 01, 1989 REPORT:
      -------------------------------------


      PENDING APPLICATIONS
      --------------------
             5 RISK PLANS
             2 COST
             1 HCPPS

      PENDING SERVICE AREA EXPANSIONS
      -------------------------------
             1 NO PAYMENT BILL OPTION ASSIGNED

      THIS REPORT WILL BE UPDATED BY THE TENTH OF EACH MONTH.
      IF YOU HAVE ANY QUESTIONS, PLEASE CALL (410) 786-1111.
      PREPARED BY: OFFICE OF MANAGED CARE,
                   HEALTH CARE FINANCING ADMINISTRATION.

                                                  ENROLLMENT AND PAYMENT SUMMARY
                                                  ------------------------------
                                                      (AS OF  DECEMBER 01, 1989)

 MEDICARE HMO/CMP DATA
 ---------------------
                                                                   PAYMENT       DEC, 89     YR TO DATE     DEC, 89
                                                        DEC, 89    FISCAL YR     INTERIM       INTERIM      TOTAL
                              NUMBER OF   NUMBER OF     PAYMENT    TO DATE       PAYMENT       PAYMENT      PAYMENT
 TYPE OF CONTRACT             CONTRACTS   ENROLLEES   (MILLIONS)  (MILLIONS)*  (MILLIONS)**  (MILLIONS)   (MILLIONS)
 ----------------             ---------   ---------   ----------  ----------   ----------    ----------   ----------

      TEFRA RISK    1/           131      1,134,039       $301.7      $905.5         $0.5          $0.6       $302.2
      OLD RISK                     2         10,793          2.5         7.6         $0.5          $0.6       $302.2
      DEMOS                        4         16,681         $5.1       $15.5         $0.0          $0.0         $5.1
                                 ---      ---------       ------    --------      -------       -------      -------
        SUBTOTAL                 137      1,161,513       $309.3      $928.6         $0.5          $0.6       $307.3

      TEFRA COST    2/            23        129,915        $12.9       $39.1         $0.0          $5.3        $12.9
                                 ---      ---------       ------    --------      -------       -------      -------

        SUBTOTAL HMO/CMP         160      1,291,428       $322.2      $967.7         $0.5          $5.9       $320.2

      HCPP PART B   3/            35        551,126        $39.7      $122.1         $4.9         $23.0        $32.8
                                 ---      ---------       ------    --------      -------       -------      -------
 TOTAL                           195      1,842,554       $361.9    $1,089.8         $5.4         $28.9       $353.0


 _________________________________________________________________________________________________________________

 1/  INCLUDES 29 CONTRACTS WHICH HAVE BEEN SIGNED, BUT FOR WHICH NO PAYMENT HAS YET BEEN MADE FOR DECEMBER 1989.
     ALSO INCLUDES 5 DCGS.

 2/  INCLUDES 8 PLANS WITH TEFRA RISK CONTRACTS WHICH HAVE ENROLLEES STILL BEING PAID UNDER THE COST METHODS.

 3/  INCLUDES ENROLLMENT FROM 11 HCPPS WHICH HAVE SIGNED RISK CONTRACTS.

 *   INCLUDES CURRENT MONTH.

 **  REPORTS SPECIAL, NON MONTHLY RECONCILIATION PAYMENTS

                           SUMMARY OF RISK/COST/HCPP CONTRACTS
                                       BY CATEGORY
                                 (AS OF   DECEMBER 01, 1989)
                           -----------------------------------

 TEFRA RISK CONTRACTS
 --------------------
                                NUMBER OF                NUMBER OF
                                CONTRACTS      (%)       ENROLLEES       (%)
                                ---------      ---       ---------       ---
      MODEL
      -----
          IPA                       84         64          485,752        43
          GROUP                     30         23          246,486        22
          STAFF                     17         13          401,801        35

      OWNERSHIP
      ---------
          PROFIT                    80         61          620,831        55
          NON PROFIT                51         39          513,208        45
 ___________________________________________________________________________

 TEFRA COST CONTRACTS*
 ---------------------
                                NUMBER OF                NUMBER OF
                                CONTRACTS      (%)       ENROLLEES       (%)
                                ---------      ---       ---------       ---
      MODEL
      -----
          IPA                        9         39           77,997        64
          GROUP                      7         30           11,058         9
          STAFF                      7         31           32,855        27

      OWNERSHIP
      ---------
          PROFIT                     8         35           46,992        39
          NON PROFIT                15         65           74,918        61


 *DOES NOT INCLUDE COST ENROLLEES REMAINING IN RISK PLANS.

                           SUMMARY OF RISK/COST/HCPP CONTRACTS
                                       BY CATEGORY
                                 (AS OF   DECEMBER 01, 1989)
                           -----------------------------------
 HCPP CONTRACTS
 --------------
                                NUMBER OF                NUMBER OF
                                CONTRACTS      (%)       ENROLLEES       (%)
                                ---------      ---       ---------       ---
      MODEL
      -----
          IPA                        1          3            1,886         0
          GROUP                     27         79          399,053        96
          STAFF                      6         18           16,328         4
          UNION                      0          0                0         0
          EMPLOYER GROUP             0          0                0         0
          MEDICAL GROUP              0          0                0         0
          PUBLIC HMO                 0          0                0         0
          STATE LICENSED HMO         0          0                0         0
          OTHER                      0          0                0         0

      OWNERSHIP
      ---------
          PROFIT                    11         32           66,750        16
          NON PROFIT                23         68          350,517        84

                             MEDICARE PREPAID OPERATIONS
                             ---------------------------

                                      POST-TEFRA
                                  (AS OF  DEC 1989)
                                  -----------------

 RUN DATE: 09/16/96

                                       # PLANS                   # ENROLLEES
                                       -------                   -----------

 TEFRA RISK                              131                       1,134,039

 OLD RISK                                  2                          10,793

 COST BASIS                               23                         113,821

 DEMO                                      4                          16,681
                                         ---                      ----------

   TOTAL HMO                             160                       1,275,334


 HCPPS & GPPPS                            28                         567,220
                                         ---                      ----------

   TOTAL PREPAID                         188                       1,842,554

     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1989



                                                                                                    TEFRA RISK
                                 TOTAL         MEDICARE        MEDICARE        TEFRA RISK            ENROLLEES
                               POPULATION        BENES           BENES         ENROLLEES              AS % OF
                               IN THOUS.       IN THOU         PERCENT          DECEMBER              MEDICARE
     STATE                     12/31/95 *      01/01/95        TOTAL POP         1989                   BENES
     ---------------------------------------------------------------------------------------------------------

     ALABAMA                      4,253             655            15                   0                  0
     ALASKA                         604              35             6                   0                  0
     ARIZONA                      4,218             613            15              26,868                  4
     ARKANSAS                     2,484             431            17                   0                  0
     CALIFORNIA                  31,589           3,701            12             332,743                  9
     COLORADO                     3,747             431            12              26,268                  6
     CONNECTICUT                  3,275             511            16                   0                  0
     DELAWARE                       717             103            14                   0                  0
     DISTRICT OF COLUMBIA           554              79            14                   0                  0
     FLORIDA                     14,166           2,667            19             202,879                  8
     GEORGIA                      7,201             851            12                   0                  0
     HAWAII                       1,187             152            13              11,217                  7
     IDAHO                        1,163             153            13                   0                  0
     ILLINOIS                    11,830           1,645            14              43,762                  3
     INDIANA                      5,803             838            14               7,076                  1
     IOWA                         2,842             482            17                   0                  0
     KANSAS                       2,565             390            15                   0                  0
     KENTUCKY                     3,860             600            16               1,387                  0
     LOUISIANA                    4,342             591            14                   0                  0
     MAINE                        1,241             206            17                   0                  0
     MARYLAND                     5,042             613            12                 427                  0
     MASSACHUSETTS                6,074             949            16              24,155                  3
     MICHIGAN                     9,549           1,373            14              12,262                  1
     MINNESOTA                    4,610             642            14              57,001                  9
     MISSISSIPPI                  2,697             406            15                   0                  0
     MISSOURI                     5,324             848            16                   0                  0
     MONTANA                        870             132            15                   0                  0
     NEBRASKA                     1,637             253            15               3,861                  2
     NEVADA                       1,530             198            13               9,296                  5
     NEW HAMPSHIRE                1,148             159            14                   0                  0
     NEW JERSEY                   7,945           1,189            15                   0                  0
     NEW MEXICO                   1,685             216            13              10,375                  5
     NEW YORK                    18,136           2,685            15              32,204                  1
     NORTH CAROLINA               7,195           1,050            15                   0                  0
     NORTH DAKOTA                   641             105            16                   0                  0
     OHIO                        11,151           1,696            15               9,067                  1
     OKLAHOMA                     3,278             496            15                   0                  0
     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1989



                                                                                                    TEFRA RISK
                                 TOTAL         MEDICARE        MEDICARE        TEFRA RISK            ENROLLEES
                               POPULATION        BENES           BENES         ENROLLEES              AS % OF
                               IN THOUS.       IN THOU         PERCENT          DECEMBER              MEDICARE
     STATE                     12/31/95 *      01/01/95        TOTAL POP         1989                   BENES
     ---------------------------------------------------------------------------------------------------------

     OREGON                       3,141             476            15              57,402                 12
     PENNSYLVANIA                12,072           2,104            17              14,028                  1
     RHODE ISLAND                   990             171            17               1,392                  1
     SOUTH CAROLINA               3,673             520            14                   0                  0
     SOUTH DAKOTA                   729             118            16                   0                  0
     TENNESSEE                    5,256             787            15                   0                  0
     TEXAS                       18,724           2,124            11              12,844                  1
     UTAH                         1,951             191            10                   0                  0
     VERMONT                        585              85            15                   0                  0
     VIRGINIA                     6,618             835            13                   0                  0
     WASHINGTON                   5,431             701            13              46,764                  7
     WEST VIRGINIA                1,828             335            18                   0                  0
     WISCONSIN                    5,123             775            15                   0                  0
     WYOMING                        480              62            13                   0                  0


     TOTAL                      262,754          37,428            14             943,278                  3


     * DATA FROM THE U.S. DEPARTMENT OF COMMERCE

     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1989



                                                                                                        COST
                                 TOTAL         MEDICARE        MEDICARE           COST               ENROLLEES
                               POPULATION        BENES           BENES          ENROLLEES             AS % OF
                               IN THOUS.       IN THOU         PERCENT           DECEMBER             MEDICARE
     STATE                     12/31/95 *      01/01/95        TOTAL POP          1989                  BENES
     ---------------------------------------------------------------------------------------------------------

     ALABAMA                      4,253             655            15                   0                  0
     ALASKA                         604              35             6                   0                  0
     ARIZONA                      4,218             613            15                   0                  0
     ARKANSAS                     2,484             431            17                   0                  0
     CALIFORNIA                  31,589           3,701            12               1,261                  0
     COLORADO                     3,747             431            12               7,916                  2
     CONNECTICUT                  3,275             511            16                   0                  0
     DELAWARE                       717             103            14                   0                  0
     DISTRICT OF COLUMBIA           554              79            14                   0                  0
     FLORIDA                     14,166           2,667            19                 921                  0
     GEORGIA                      7,201             851            12                   0                  0
     HAWAII                       1,187             152            13              18,790                 12
     IDAHO                        1,163             153            13                   0                  0
     ILLINOIS                    11,830           1,645            14                   0                  0
     INDIANA                      5,803             838            14                   0                  0
     IOWA                         2,842             482            17                   0                  0
     KANSAS                       2,565             390            15                   0                  0
     KENTUCKY                     3,860             600            16                   0                  0
     LOUISIANA                    4,342             591            14                   0                  0
     MAINE                        1,241             206            17                   0                  0
     MARYLAND                     5,042             613            12                   0                  0
     MASSACHUSETTS                6,074             949            16                   0                  0
     MICHIGAN                     9,549           1,373            14                   0                  0
     MINNESOTA                    4,610             642            14                   0                  0
     MISSISSIPPI                  2,697             406            15                   0                  0
     MISSOURI                     5,324             848            16                   0                  0
     MONTANA                        870             132            15                   0                  0
     NEBRASKA                     1,637             253            15                   0                  0
     NEVADA                       1,530             198            13                   0                  0
     NEW HAMPSHIRE                1,148             159            14                   0                  0
     NEW JERSEY                   7,945           1,189            15              11,137                  1
     NEW MEXICO                   1,685             216            13                   0                  0
     NEW YORK                    18,136           2,685            15               2,307                  0
     NORTH CAROLINA               7,195           1,050            15                   0                  0
     NORTH DAKOTA                   641             105            16                 465                  0
     OHIO                        11,151           1,696            15               1,498                  0
     OKLAHOMA                     3,278             496            15                   0                  0
     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1989



                                                                                                        COST
                                 TOTAL         MEDICARE        MEDICARE           COST               ENROLLEES
                               POPULATION        BENES           BENES          ENROLLEES             AS % OF
                               IN THOUS.       IN THOU         PERCENT           DECEMBER             MEDICARE
     STATE                     12/31/95 *      01/01/95        TOTAL POP          1989                  BENES
     ---------------------------------------------------------------------------------------------------------

     OREGON                       3,141             476            15              19,384                  4
     PENNSYLVANIA                12,072           2,104            17                   0                  0
     RHODE ISLAND                   990             171            17                 451                  0
     SOUTH CAROLINA               3,673             520            14                   0                  0
     SOUTH DAKOTA                   729             118            16                   0                  0
     TENNESSEE                    5,256             787            15                   0                  0
     TEXAS                       18,724           2,124            11                   0                  0
     UTAH                         1,951             191            10                   0                  0
     VERMONT                        585              85            15                   0                  0
     VIRGINIA                     6,618             835            13                   0                  0
     WASHINGTON                   5,431             701            13               4,311                  1
     WEST VIRGINIA                1,828             335            18               7,659                  2
     WISCONSIN                    5,123             775            15                   0                  0
     WYOMING                        480              62            13                   0                  0


     TOTAL                      262,754          37,428            14              76,100                  0


     * DATA FROM THE U.S. DEPARTMENT OF COMMERCE

     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1989



                                                                                                        HCPP
                                 TOTAL         MEDICARE        MEDICARE           HCPP               ENROLLEES
                               POPULATION        BENES           BENES          ENROLLEES             AS % OF
                               IN THOUS.       IN THOU         PERCENT           DECEMBER             MEDICARE
     STATE                     12/31/95 *      01/01/95        TOTAL POP          1989                  BENES
     ---------------------------------------------------------------------------------------------------------

     ALABAMA                      4,253             655            15                   0                  0
     ALASKA                         604              35             6                   0                  0
     ARIZONA                      4,218             613            15                   0                  0
     ARKANSAS                     2,484             431            17                   0                  0
     CALIFORNIA                  31,589           3,701            12             251,391                  7
     COLORADO                     3,747             431            12               1,645                  0
     CONNECTICUT                  3,275             511            16               1,675                  0
     DELAWARE                       717             103            14                   0                  0
     DISTRICT OF COLUMBIA           554              79            14               7,335                  9
     FLORIDA                     14,166           2,667            19               9,001                  0
     GEORGIA                      7,201             851            12                   0                  0
     HAWAII                       1,187             152            13               3,568                  2
     IDAHO                        1,163             153            13                   0                  0
     ILLINOIS                    11,830           1,645            14              21,884                  1
     INDIANA                      5,803             838            14               4,800                  1
     IOWA                         2,842             482            17               9,444                  2
     KANSAS                       2,565             390            15              10,748                  3
     KENTUCKY                     3,860             600            16                   0                  0
     LOUISIANA                    4,342             591            14                   0                  0
     MAINE                        1,241             206            17                   0                  0
     MARYLAND                     5,042             613            12                   0                  0
     MASSACHUSETTS                6,074             949            16               1,467                  0
     MICHIGAN                     9,549           1,373            14                   0                  0
     MINNESOTA                    4,610             642            14               1,299                  0
     MISSISSIPPI                  2,697             406            15                   0                  0
     MISSOURI                     5,324             848            16              14,270                  2
     MONTANA                        870             132            15                   0                  0
     NEBRASKA                     1,637             253            15                   0                  0
     NEVADA                       1,530             198            13                   0                  0
     NEW HAMPSHIRE                1,148             159            14                   0                  0
     NEW JERSEY                   7,945           1,189            15                   0                  0
     NEW MEXICO                   1,685             216            13                   0                  0
     NEW YORK                    18,136           2,685            15              94,239                  4
     NORTH CAROLINA               7,195           1,050            15                   0                  0
     NORTH DAKOTA                   641             105            16                   0                  0
     OHIO                        11,151           1,696            15              11,894                  1
     OKLAHOMA                     3,278             496            15                   0                  0
     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1989



                                                                                                        HCPP
                                 TOTAL         MEDICARE        MEDICARE           HCPP               ENROLLEES
                               POPULATION        BENES           BENES          ENROLLEES             AS % OF
                               IN THOUS.       IN THOU         PERCENT           DECEMBER             MEDICARE
     STATE                     12/31/95 *      01/01/95        TOTAL POP          1989                  BENES
     ---------------------------------------------------------------------------------------------------------

     OREGON                       3,141             476            15                   0                  0
     PENNSYLVANIA                12,072           2,104            17                  52                  0
     RHODE ISLAND                   990             171            17                   0                  0
     SOUTH CAROLINA               3,673             520            14                   0                  0
     SOUTH DAKOTA                   729             118            16                   0                  0
     TENNESSEE                    5,256             787            15                   0                  0
     TEXAS                       18,724           2,124            11               1,232                  0
     UTAH                         1,951             191            10               1,138                  1
     VERMONT                        585              85            15                   0                  0
     VIRGINIA                     6,618             835            13                   0                  0
     WASHINGTON                   5,431             701            13                   0                  0
     WEST VIRGINIA                1,828             335            18                   0                  0
     WISCONSIN                    5,123             775            15               8,990                  1
     WYOMING                        480              62            13                   0                  0

     UMW (90091)                262,754          37,428            14             105,205                  0


     TOTAL                      262,754          37,428            14             561,277                  1


     GRAND TOTAL                262,754          37,428            14           1,580,655                  4


     * DATA FROM THE U.S. DEPARTMENT OF COMMERCE

                                                  BENEFIT AND PREMIUM SUMMARY - PLAN COUNTS
                                                             TEFRA RISK HMOS AND CMPS
                                                             (AS OF DECEMBER 01, 1989)

                                                                                                                            EXTEND.
                       ROUTINE             HEALTH    OUTPAT.    FOOT      EYE                 EAR      HEARING              MENTAL
                       PHYSICALS  IMMUM    ED.       DRUGS      CARE      EXAMS    LENSES     EXAMS    AIDS      DENTAL     HEALTH
                       ---------  -----    ------    -------    ----      -----    ------     -----    -------   ------     ------





               NO RECORDS EXIST FOR CRITERIA SELECTED
