

                MEDICARE MANAGED CARE CONTRACT REPORT
                      (DATA AS OF DECEMBER 01, 1991)

      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         172                 2,156,936
             RISK (INCLUDES 1 DCGS)       93                 1,389,401
             COST                         25                   136,200
             OTHER DEMOS                   4                    17,869
             HCPPS                        50                   613,466

      PAYMENT STATISTICS:
      ------------------
         $533M    TOTAL PAYMENT MADE TO ALL PREPAID PLANS FOR DECEMBER 1991
         $1585M   FISCAL YEAR TO DATE

      ENROLLMENT STATISTICS
      ---------------------
             RISK ENROLLMENT CHANGED FROM  1,375,176 IN NOVEMBER
                  TO  1,389,401 IN DECEMBER OR 1% INCREASE.
             TOTAL ENROLLMENT CHANGED FROM  2,145,009 IN NOVEMBER
                   TO  2,156,936 IN DECEMBER OR 0.6% INCREASE.

      CHANGES SINCE NOVEMBER 01, 1991 REPORT:
      -------------------------------------

             1 PLAN EXPANDED ITS SERVICE AREA
               QUALMED PLANS FOR HEALTH VALLEY DIVISION , SACRAMENTO, CA

      PENDING APPLICATIONS
      --------------------
            14 RISK PLANS

      PENDING SERVICE AREA EXPANSIONS
      -------------------------------
             9 RISK

      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, 1991)

 MEDICARE HMO/CMP DATA
 ---------------------
                                                                   PAYMENT       DEC, 91     YR TO DATE     DEC, 91
                                                        DEC, 91    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/            93      1,389,401       $442.2    $1,310.7         $0.1          $0.4       $442.3
      DEMOS                        4         17,869         $6.4       $19.1         $0.0          $0.0         $6.4
                                 ---      ---------       ------    --------      -------       -------      -------
        SUBTOTAL                  97      1,407,270       $448.6    $1,329.8         $0.1          $0.4       $448.7

      TEFRA COST    2/            25        136,200        $19.3       $59.8         $9.1         $14.9        $28.4
                                 ---      ---------       ------    --------      -------       -------      -------

        SUBTOTAL HMO/CMP         122      1,543,470       $467.9    $1,389.6         $9.2         $15.3       $477.1

      HCPP PART B   3/            50        613,466        $65.2      $195.2         $0.2          $2.7        $65.4
                                 ---      ---------       ------    --------      -------       -------      -------
 TOTAL                           172      2,156,936       $533.1    $1,584.8         $9.4         $18.0       $542.5


 _________________________________________________________________________________________________________________

 1/  INCLUDES 2 CONTRACTS WHICH HAVE BEEN SIGNED, BUT FOR WHICH NO PAYMENT HAS YET BEEN MADE FOR DECEMBER 1991.
     ALSO INCLUDES 1 DCGS.

 2/  INCLUDES 4 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, 1991)
                           -----------------------------------

 TEFRA RISK CONTRACTS
 --------------------
                                NUMBER OF                NUMBER OF
                                CONTRACTS      (%)       ENROLLEES       (%)
                                ---------      ---       ---------       ---
      MODEL
      -----
          IPA                       57         61          609,164        44
          GROUP                     22         24          281,064        20
          STAFF                     14         15          499,173        36

      OWNERSHIP
      ---------
          PROFIT                    53         57          870,690        63
          NON PROFIT                40         43          518,711        37
 ___________________________________________________________________________

 TEFRA COST CONTRACTS*
 ---------------------
                                NUMBER OF                NUMBER OF
                                CONTRACTS      (%)       ENROLLEES       (%)
                                ---------      ---       ---------       ---
      MODEL
      -----
          IPA                        7         28           72,770        55
          GROUP                      8         32           15,120        11
          STAFF                     10         40           43,981        34

      OWNERSHIP
      ---------
          PROFIT                     8         32           52,291        40
          NON PROFIT                17         68           79,580        60


 *DOES NOT INCLUDE COST ENROLLEES REMAINING IN RISK PLANS.
                           SUMMARY OF RISK/COST/HCPP CONTRACTS
                                       BY CATEGORY
                                 (AS OF   DECEMBER 01, 1991)
                           -----------------------------------
 HCPP CONTRACTS
 --------------
                                NUMBER OF                NUMBER OF
                                CONTRACTS      (%)       ENROLLEES       (%)
                                ---------      ---       ---------       ---
      MODEL
      -----
          IPA                        8         16           62,662        12
          GROUP                     35         71          417,639        82
          STAFF                      6         13           28,124         6
          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                    18         37           85,093        17
          NON PROFIT                31         63          423,332        83

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

                                      POST-TEFRA
                                  (AS OF  DEC 1991)
                                  -----------------

 RUN DATE: 07/12/96

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

 TEFRA RISK                               93                       1,389,401

 OLD RISK                                  0                               0

 COST BASIS                               22                         131,369

 DEMO                                      4                          17,869
                                         ---                      ----------

   TOTAL HMO                             119                       1,538,639


 HCPPS & GPPPS                            40                         618,297
                                         ---                      ----------

   TOTAL PREPAID                         159                       2,156,936

     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1991



                                                                                                    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         1991                   BENES
     ---------------------------------------------------------------------------------------------------------

     ALABAMA                      4,253             655            15                   0                  0
     ALASKA                         604              35             6                   0                  0
     ARIZONA                      4,218             613            15              64,909                 11
     ARKANSAS                     2,484             431            17                   0                  0
     CALIFORNIA                  31,589           3,701            12             466,059                 13
     COLORADO                     3,747             431            12              30,122                  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             281,257                 11
     GEORGIA                      7,201             851            12                   0                  0
     HAWAII                       1,187             152            13              11,978                  8
     IDAHO                        1,163             153            13                   0                  0
     ILLINOIS                    11,830           1,645            14              46,920                  3
     INDIANA                      5,803             838            14               6,716                  1
     IOWA                         2,842             482            17                   0                  0
     KANSAS                       2,565             390            15                   0                  0
     KENTUCKY                     3,860             600            16               6,203                  1
     LOUISIANA                    4,342             591            14                   0                  0
     MAINE                        1,241             206            17                   0                  0
     MARYLAND                     5,042             613            12                 619                  0
     MASSACHUSETTS                6,074             949            16              24,345                  3
     MICHIGAN                     9,549           1,373            14              10,796                  1
     MINNESOTA                    4,610             642            14              57,563                  9
     MISSISSIPPI                  2,697             406            15                   0                  0
     MISSOURI                     5,324             848            16              11,818                  1
     MONTANA                        870             132            15                   0                  0
     NEBRASKA                     1,637             253            15               4,327                  2
     NEVADA                       1,530             198            13              12,562                  6
     NEW HAMPSHIRE                1,148             159            14                   0                  0
     NEW JERSEY                   7,945           1,189            15                   0                  0
     NEW MEXICO                   1,685             216            13              14,258                  7
     NEW YORK                    18,136           2,685            15              49,121                  2
     NORTH CAROLINA               7,195           1,050            15                   0                  0
     NORTH DAKOTA                   641             105            16                   0                  0
     OHIO                        11,151           1,696            15              12,218                  1
     OKLAHOMA                     3,278             496            15               2,510                  1
     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1991



                                                                                                    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         1991                   BENES
     ---------------------------------------------------------------------------------------------------------

     OREGON                       3,141             476            15              68,708                 14
     PENNSYLVANIA                12,072           2,104            17              17,823                  1
     RHODE ISLAND                   990             171            17               7,117                  4
     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              29,481                  1
     UTAH                         1,951             191            10                   0                  0
     VERMONT                        585              85            15                   0                  0
     VIRGINIA                     6,618             835            13                  52                  0
     WASHINGTON                   5,431             701            13              53,686                  8
     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           1,291,168                  3


     * DATA FROM THE U.S. DEPARTMENT OF COMMERCE

     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1991



                                                                                                        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          1991                  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               1,183                  0
     COLORADO                     3,747             431            12               8,749                  2
     CONNECTICUT                  3,275             511            16               7,908                  2
     DELAWARE                       717             103            14                   0                  0
     DISTRICT OF COLUMBIA           554              79            14                   0                  0
     FLORIDA                     14,166           2,667            19               1,134                  0
     GEORGIA                      7,201             851            12                   0                  0
     HAWAII                       1,187             152            13              19,432                 13
     IDAHO                        1,163             153            13                   0                  0
     ILLINOIS                    11,830           1,645            14               5,769                  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              13,724                  1
     NEW MEXICO                   1,685             216            13                   0                  0
     NEW YORK                    18,136           2,685            15               6,080                  0
     NORTH CAROLINA               7,195           1,050            15                   0                  0
     NORTH DAKOTA                   641             105            16                 602                  1
     OHIO                        11,151           1,696            15               1,200                  0
     OKLAHOMA                     3,278             496            15                   0                  0
     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1991



                                                                                                        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          1991                  BENES
     ---------------------------------------------------------------------------------------------------------

     OREGON                       3,141             476            15              17,717                  4
     PENNSYLVANIA                12,072           2,104            17                   0                  0
     RHODE ISLAND                   990             171            17               4,513                  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               4,635                  1
     WEST VIRGINIA                1,828             335            18               8,162                  2
     WISCONSIN                    5,123             775            15                   0                  0
     WYOMING                        480              62            13                   0                  0


     TOTAL                      262,754          37,428            14             100,808                  0


     * DATA FROM THE U.S. DEPARTMENT OF COMMERCE

     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1991



                                                                                                        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          1991                  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             251,899                  7
     COLORADO                     3,747             431            12               1,552                  0
     CONNECTICUT                  3,275             511            16               2,083                  0
     DELAWARE                       717             103            14                   0                  0
     DISTRICT OF COLUMBIA           554              79            14               7,956                 10
     FLORIDA                     14,166           2,667            19               8,406                  0
     GEORGIA                      7,201             851            12                   0                  0
     HAWAII                       1,187             152            13               3,469                  2
     IDAHO                        1,163             153            13                   0                  0
     ILLINOIS                    11,830           1,645            14              23,447                  1
     INDIANA                      5,803             838            14               4,976                  1
     IOWA                         2,842             482            17               9,683                  2
     KANSAS                       2,565             390            15              10,308                  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               3,747                  1
     MASSACHUSETTS                6,074             949            16               1,947                  0
     MICHIGAN                     9,549           1,373            14                  19                  0
     MINNESOTA                    4,610             642            14              60,725                  9
     MISSISSIPPI                  2,697             406            15                   0                  0
     MISSOURI                     5,324             848            16              15,121                  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              68,751                  3
     NORTH CAROLINA               7,195           1,050            15               1,070                  0
     NORTH DAKOTA                   641             105            16                   0                  0
     OHIO                        11,151           1,696            15              10,709                  1
     OKLAHOMA                     3,278             496            15                   0                  0
     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1991



                                                                                                        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          1991                  BENES
     ---------------------------------------------------------------------------------------------------------

     OREGON                       3,141             476            15                   0                  0
     PENNSYLVANIA                12,072           2,104            17                  41                  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                 443                  0
     UTAH                         1,951             191            10               2,516                  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               8,447                  1
     WYOMING                        480              62            13                   0                  0

     UMW (90091)                262,754          37,428            14              98,334                  0


     TOTAL                      262,754          37,428            14             595,649                  1


     GRAND TOTAL                262,754          37,428            14           1,987,625                  5


     * DATA FROM THE U.S. DEPARTMENT OF COMMERCE

                                                  BENEFIT AND PREMIUM SUMMARY - PLAN COUNTS
                                                             TEFRA RISK HMOS AND CMPS
                                                             (AS OF DECEMBER 01, 1991)

                                                                                                                            EXTEND.
                       ROUTINE             HEALTH    OUTPAT.    FOOT      EYE                 EAR      HEARING              MENTAL
                       PHYSICALS  IMMUM    ED.       DRUGS      CARE      EXAMS    LENSES     EXAMS    AIDS      DENTAL     HEALTH
                       ---------  -----    ------    -------    ----      -----    ------     -----    -------   ------     ------
 NUMBER AND               80       70       40        30        30        76       28         59        11        25          7
 PERCENT OF PLANS
 OFFERING ADDITIONAL
 BENEFITS IN THESE
 CATEGORIES IN BASIC
 OPTION PACKAGE

                       (86.96%)  (76.09%)  (43.48%)  (32.61%)  (32.61%)  (82.61%)  (30.43%)  (64.13%)  (11.96%)  (27.17%)  (7.61%)

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

 PLANS CHARGING COPAYS FOR BASIC PACKAGE: 75 YES (81.52%) 17 NO (18.48%)

 PLANS OFFERING HIGH OPTION PACKAGE: 7 OR (7.87%)

 BASIC PREMIUM RANGE:

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

                                           22                   $ 0               24.72
                                            5                   $ 0.01 - $19.99    5.62
                                           10                   $20.00 - $39.99   11.24
                                           33                   $40.00 - $59.99   37.08
                                           16                   $60.00 - $79.99   17.98
                                            6                   ABOVE $80.00       6.74

 AVERAGE BASIC PREMIUM = $41.64     HIGHEST BASIC PREMIUM = $108.69     MEDIAN BASIC PREMIUM = $54.29
