

                MEDICARE MANAGED CARE CONTRACT REPORT
                      (DATA AS OF DECEMBER 01, 1990)

      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         166                 2,017,593
             RISK (INCLUDES 3 DCGS)       96                 1,263,547
             COST                         26                   140,527
             OTHER DEMOS                   4                    17,292
             HCPPS                        40                   596,227

      PAYMENT STATISTICS:
      ------------------
         $467M    TOTAL PAYMENT MADE TO ALL PREPAID PLANS FOR DECEMBER 1990
         $1386M   FISCAL YEAR TO DATE

      ENROLLMENT STATISTICS
      ---------------------
             RISK ENROLLMENT CHANGED FROM  1,260,413 IN NOVEMBER
                  TO  1,263,547 IN DECEMBER OR 0.2% INCREASE.
             TOTAL ENROLLMENT CHANGED FROM  2,015,654 IN NOVEMBER
                   TO  2,017,593 IN DECEMBER OR 0.1% INCREASE.

      CHANGES SINCE NOVEMBER 01, 1990 REPORT:
      -------------------------------------

             2 PLANS EXPANDED THEIR SERVICE AREA:
               FALLON COMMUNITY HEALTH PLAN, INC. , WEST BOYLSTON, MA
               FHP, INC. CALIFORNIA , CERRITOS, CA

      PENDING APPLICATIONS
      --------------------
            13 RISK PLANS
             1 HCPPS

      PENDING SERVICE AREA EXPANSIONS
      -------------------------------
            10 RISK
             2 COST

      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, 1990)

 MEDICARE HMO/CMP DATA
 ---------------------
                                                                   PAYMENT       DEC, 90     YR TO DATE     DEC, 90
                                                        DEC, 90    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/            96      1,263,547       $394.1    $1,166.7         $0.0          $0.6       $394.1
      DEMOS                        4         17,292         $5.9       $17.3         $0.0          $0.0         $5.9
                                 ---      ---------       ------    --------      -------       -------      -------
        SUBTOTAL                 100      1,280,839       $400.0    $1,184.0         $0.0          $0.6       $400.0

      TEFRA COST    2/            26        140,527        $15.8       $48.2         $0.4          $2.1        $16.2
                                 ---      ---------       ------    --------      -------       -------      -------

        SUBTOTAL HMO/CMP         126      1,421,366       $415.8    $1,232.2         $0.4          $2.7       $416.2

      HCPP PART B   3/            40        596,227        $51.0      $153.7        $10.0         $24.7        $61.0
                                 ---      ---------       ------    --------      -------       -------      -------
 TOTAL                           166      2,017,593       $466.8    $1,385.9        $10.4         $27.4       $477.2


 _________________________________________________________________________________________________________________

 1/  INCLUDES 2 CONTRACTS WHICH HAVE BEEN SIGNED, BUT FOR WHICH NO PAYMENT HAS YET BEEN MADE FOR DECEMBER 1990.
     ALSO INCLUDES 3 DCGS.

 2/  INCLUDES 6 PLANS WITH TEFRA RISK CONTRACTS WHICH HAVE ENROLLEES STILL BEING PAID UNDER THE COST METHODS.

 3/  INCLUDES ENROLLMENT FROM 10 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, 1990)
                           -----------------------------------

 TEFRA RISK CONTRACTS
 --------------------
                                NUMBER OF                NUMBER OF
                                CONTRACTS      (%)       ENROLLEES       (%)
                                ---------      ---       ---------       ---
      MODEL
      -----
          IPA                       57         59          538,394        43
          GROUP                     26         27          269,169        21
          STAFF                     13         14          455,984        36

      OWNERSHIP
      ---------
          PROFIT                    50         52          763,275        60
          NON PROFIT                46         48          500,272        40
 ___________________________________________________________________________

 TEFRA COST CONTRACTS*
 ---------------------
                                NUMBER OF                NUMBER OF
                                CONTRACTS      (%)       ENROLLEES       (%)
                                ---------      ---       ---------       ---
      MODEL
      -----
          IPA                        8         31           77,586        57
          GROUP                      8         31           12,656         9
          STAFF                     10         38           45,449        34

      OWNERSHIP
      ---------
          PROFIT                     9         35           53,680        40
          NON PROFIT                17         65           82,011        60


 *DOES NOT INCLUDE COST ENROLLEES REMAINING IN RISK PLANS.
                           SUMMARY OF RISK/COST/HCPP CONTRACTS
                                       BY CATEGORY
                                 (AS OF   DECEMBER 01, 1990)
                           -----------------------------------
 HCPP CONTRACTS
 --------------
                                NUMBER OF                NUMBER OF
                                CONTRACTS      (%)       ENROLLEES       (%)
                                ---------      ---       ---------       ---
      MODEL
      -----
          IPA                        3          8           42,074         9
          GROUP                     30         75          410,903        86
          STAFF                      7         17           23,213         5
          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                    13         33           65,597        14
          NON PROFIT                27         67          410,593        86

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

                                      POST-TEFRA
                                  (AS OF  DEC 1990)
                                  -----------------

 RUN DATE: 07/12/96

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

 TEFRA RISK                               96                       1,263,547

 OLD RISK                                  0                               0

 COST BASIS                               22                         123,237

 DEMO                                      4                          17,292
                                         ---                      ----------

   TOTAL HMO                             122                       1,404,076


 HCPPS & GPPPS                            33                         613,517
                                         ---                      ----------

   TOTAL PREPAID                         155                       2,017,593

     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1990



                                                                                                    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         1990                   BENES
     ---------------------------------------------------------------------------------------------------------

     ALABAMA                      4,253             655            15                   0                  0
     ALASKA                         604              35             6                   0                  0
     ARIZONA                      4,218             613            15              46,242                  8
     ARKANSAS                     2,484             431            17                   0                  0
     CALIFORNIA                  31,589           3,701            12             396,033                 11
     COLORADO                     3,747             431            12              28,610                  7
     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             249,963                  9
     GEORGIA                      7,201             851            12                   0                  0
     HAWAII                       1,187             152            13              11,677                  8
     IDAHO                        1,163             153            13                   0                  0
     ILLINOIS                    11,830           1,645            14              45,436                  3
     INDIANA                      5,803             838            14               6,827                  1
     IOWA                         2,842             482            17                   0                  0
     KANSAS                       2,565             390            15                   0                  0
     KENTUCKY                     3,860             600            16               4,180                  1
     LOUISIANA                    4,342             591            14                   0                  0
     MAINE                        1,241             206            17                   0                  0
     MARYLAND                     5,042             613            12                 462                  0
     MASSACHUSETTS                6,074             949            16              25,736                  3
     MICHIGAN                     9,549           1,373            14              11,743                  1
     MINNESOTA                    4,610             642            14              59,100                  9
     MISSISSIPPI                  2,697             406            15                   0                  0
     MISSOURI                     5,324             848            16              11,166                  1
     MONTANA                        870             132            15                   0                  0
     NEBRASKA                     1,637             253            15               4,347                  2
     NEVADA                       1,530             198            13              11,180                  6
     NEW HAMPSHIRE                1,148             159            14                   0                  0
     NEW JERSEY                   7,945           1,189            15                   0                  0
     NEW MEXICO                   1,685             216            13              12,454                  6
     NEW YORK                    18,136           2,685            15              42,460                  2
     NORTH CAROLINA               7,195           1,050            15                   0                  0
     NORTH DAKOTA                   641             105            16                   0                  0
     OHIO                        11,151           1,696            15              10,786                  1
     OKLAHOMA                     3,278             496            15                   0                  0
     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1990



                                                                                                    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         1990                   BENES
     ---------------------------------------------------------------------------------------------------------

     OREGON                       3,141             476            15              62,020                 13
     PENNSYLVANIA                12,072           2,104            17              14,419                  1
     RHODE ISLAND                   990             171            17               4,403                  3
     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              22,926                  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              52,221                  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           1,134,391                  3


     * DATA FROM THE U.S. DEPARTMENT OF COMMERCE

     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1990



                                                                                                        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          1990                  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               1,158                  0
     COLORADO                     3,747             431            12               8,482                  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               1,039                  0
     GEORGIA                      7,201             851            12                   0                  0
     HAWAII                       1,187             152            13              18,871                 12
     IDAHO                        1,163             153            13                   0                  0
     ILLINOIS                    11,830           1,645            14               6,159                  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              13,411                  1
     NEW MEXICO                   1,685             216            13                   0                  0
     NEW YORK                    18,136           2,685            15               5,874                  0
     NORTH CAROLINA               7,195           1,050            15                   0                  0
     NORTH DAKOTA                   641             105            16                 539                  1
     OHIO                        11,151           1,696            15               1,327                  0
     OKLAHOMA                     3,278             496            15                   0                  0
     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1990



                                                                                                        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          1990                  BENES
     ---------------------------------------------------------------------------------------------------------

     OREGON                       3,141             476            15              18,474                  4
     PENNSYLVANIA                12,072           2,104            17                   0                  0
     RHODE ISLAND                   990             171            17               4,409                  3
     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               4,551                  1
     WEST VIRGINIA                1,828             335            18               8,225                  2
     WISCONSIN                    5,123             775            15                   0                  0
     WYOMING                        480              62            13                   0                  0


     TOTAL                      262,754          37,428            14              92,519                  0


     * DATA FROM THE U.S. DEPARTMENT OF COMMERCE

     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1990



                                                                                                        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          1990                  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             253,492                  7
     COLORADO                     3,747             431            12               1,613                  0
     CONNECTICUT                  3,275             511            16               1,838                  0
     DELAWARE                       717             103            14                   0                  0
     DISTRICT OF COLUMBIA           554              79            14               7,518                 10
     FLORIDA                     14,166           2,667            19               9,918                  0
     GEORGIA                      7,201             851            12                   0                  0
     HAWAII                       1,187             152            13               3,486                  2
     IDAHO                        1,163             153            13                   0                  0
     ILLINOIS                    11,830           1,645            14              22,373                  1
     INDIANA                      5,803             838            14               4,763                  1
     IOWA                         2,842             482            17               7,911                  2
     KANSAS                       2,565             390            15              10,943                  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               1,725                  0
     MICHIGAN                     9,549           1,373            14                   0                  0
     MINNESOTA                    4,610             642            14              45,728                  7
     MISSISSIPPI                  2,697             406            15                   0                  0
     MISSOURI                     5,324             848            16              14,618                  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              90,992                  3
     NORTH CAROLINA               7,195           1,050            15                 987                  0
     NORTH DAKOTA                   641             105            16                   0                  0
     OHIO                        11,151           1,696            15              11,246                  1
     OKLAHOMA                     3,278             496            15                   0                  0
     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1990



                                                                                                        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          1990                  BENES
     ---------------------------------------------------------------------------------------------------------

     OREGON                       3,141             476            15                   0                  0
     PENNSYLVANIA                12,072           2,104            17                  42                  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                 467                  0
     UTAH                         1,951             191            10               1,086                  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               8,359                  1
     WYOMING                        480              62            13                   0                  0

     UMW (90091)                262,754          37,428            14             101,815                  0


     TOTAL                      262,754          37,428            14             600,920                  1


     GRAND TOTAL                262,754          37,428            14           1,827,830                  5


     * DATA FROM THE U.S. DEPARTMENT OF COMMERCE

                                                  BENEFIT AND PREMIUM SUMMARY - PLAN COUNTS
                                                             TEFRA RISK HMOS AND CMPS
                                                             (AS OF DECEMBER 01, 1990)

                                                                                                                            EXTEND.
                       ROUTINE             HEALTH    OUTPAT.    FOOT      EYE                 EAR      HEARING              MENTAL
                       PHYSICALS  IMMUM    ED.       DRUGS      CARE      EXAMS    LENSES     EXAMS    AIDS      DENTAL     HEALTH
                       ---------  -----    ------    -------    ----      -----    ------     -----    -------   ------     ------
 NUMBER AND               83       73       29        33        27        79       11         51         1        21          3
 PERCENT OF PLANS
 OFFERING ADDITIONAL
 BENEFITS IN THESE
 CATEGORIES IN BASIC
 OPTION PACKAGE

                       (87.37%)  (76.84%)  (30.53%)  (34.74%)  (28.42%)  (83.16%)  (11.58%)  (53.68%)  (1.05%)   (22.11%)  (3.16%)

 ----------------------------------------------------------------------------------------------------------------------------------

 PLANS CHARGING COPAYS FOR BASIC PACKAGE: 76 YES (80.00%) 19 NO (20.00%)

 PLANS OFFERING HIGH OPTION PACKAGE: 4 OR (4.21%)

 BASIC PREMIUM RANGE:

                                    NUMBER OF PLANS             RANGE            (%)
                                    ---------------             -----             -

                                           17                   $ 0               17.89
                                            8                   $ 0.01 - $19.99    8.42
                                           27                   $20.00 - $39.99   28.42
                                           32                   $40.00 - $59.99   33.68
                                            9                   $60.00 - $79.99    9.47
                                            1                   ABOVE $80.00       1.05

 AVERAGE BASIC PREMIUM = $35.48     HIGHEST BASIC PREMIUM = $93.09      MEDIAN BASIC PREMIUM = $42.32
