

                MEDICARE MANAGED CARE CONTRACT REPORT
                      (DATA AS OF DECEMBER 01, 1992)

      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         177                 2,357,060
             RISK (INCLUDES 0 DCGS)       95                 1,565,659
             COST                         26                   136,550
             OTHER DEMOS                   4                    21,852
             HCPPS                        52                   632,999

      PAYMENT STATISTICS:
      ------------------
         $636M    TOTAL PAYMENT MADE TO ALL PREPAID PLANS FOR DECEMBER 1992
         $1898M   FISCAL YEAR TO DATE

      ENROLLMENT STATISTICS
      ---------------------
             RISK ENROLLMENT CHANGED FROM  1,544,741 IN NOVEMBER
                  TO  1,565,659 IN DECEMBER OR 1.4% INCREASE.
             TOTAL ENROLLMENT CHANGED FROM  2,334,669 IN NOVEMBER
                   TO  2,357,060 IN DECEMBER OR 1% INCREASE.

      CHANGES SINCE NOVEMBER 01, 1992 REPORT:
      -------------------------------------

             1 RISK CONTRACT WAS SIGNED:
               CIGNA HEALTHCARE OF ARIZONA, INC.  PHOENIX, PHOENIX,AZ

             7 PLANS EXPANDED THEIR SERVICE AREA:
               INTERGROUP PREPAID HLTH SERV OF AZ INC , TUCSON, AZ
               AETNA HP OF CALIFORNIA INC , SAN BERNARDINO, CA
               PACIFICARE OF CA, INC LOS ANGELES/ORANGE , CYPRESS, CA
               FHP OF NEW MEXICO, INC. NEW MEXICO , ALBUQUERQUE, NM
               FHP OF NEW MEXICO, INC. NEW MEXICO , ALBUQUERQUE, NM
               MAXICARE INDIANA, INC. INDIANAPOLIS , INDIANAPOLIS, IN
               FHP, INC. CALIFORNIA , CERRITOS, CA

      PENDING APPLICATIONS
      --------------------
            17 RISK PLANS
             1 COST PLAN
             3 HCPPS

      PENDING SERVICE AREA EXPANSIONS
      -------------------------------
            12 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, 1992)

 MEDICARE HMO/CMP DATA
 ---------------------
                                                                   PAYMENT       DEC, 92     YR TO DATE     DEC, 92
                                                        DEC, 92    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/            95      1,565,659       $530.7    $1,576.0         $0.0          $0.0       $530.7
      DEMOS                        4         21,852         $8.6       $25.2         $0.0          $0.0         $8.6
                                 ---      ---------       ------    --------      -------       -------      -------
        SUBTOTAL                 100      1,587,511       $539.3    $1,601.2         $0.0          $0.0       $539.3

      TEFRA COST    2/            26        136,550        $21.6       $64.6         $0.4          $3.4        $22.0
                                 ---      ---------       ------    --------      -------       -------      -------

        SUBTOTAL HMO/CMP         125      1,724,061       $560.9    $1,665.8         $0.4          $3.4       $561.3

      HCPP PART B   3/            52        632,999        $75.6      $232.3         $1.0          $8.2        $76.6
                                 ---      ---------       ------    --------      -------       -------      -------
 TOTAL                           177      2,357,060       $636.5    $1,898.1         $1.4         $11.6       $637.9


 _________________________________________________________________________________________________________________

 1/  INCLUDES 0 CONTRACTS WHICH HAVE BEEN SIGNED, BUT FOR WHICH NO PAYMENT HAS YET BEEN MADE FOR DECEMBER 1992.
     ALSO INCLUDES 0 DCGS.

 2/  INCLUDES 5 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, 1992)
                           -----------------------------------

 TEFRA RISK CONTRACTS
 --------------------
                                NUMBER OF                NUMBER OF
                                CONTRACTS      (%)       ENROLLEES       (%)
                                ---------      ---       ---------       ---
      MODEL
      -----
          IPA                       61         64          722,060        46
          GROUP                     21         22          308,592        20
          STAFF                     14         14          535,007        34

      OWNERSHIP
      ---------
          PROFIT                    60         63        1,034,157        66
          NON PROFIT                36         37          531,502        34
 ___________________________________________________________________________

 TEFRA COST CONTRACTS*
 ---------------------
                                NUMBER OF                NUMBER OF
                                CONTRACTS      (%)       ENROLLEES       (%)
                                ---------      ---       ---------       ---
      MODEL
      -----
          IPA                        9         36           73,048        63
          GROUP                      8         32           15,434        13
          STAFF                      8         32           27,348        24

      OWNERSHIP
      ---------
          PROFIT                     6         24           32,645        28
          NON PROFIT                19         76           83,185        72


 *DOES NOT INCLUDE COST ENROLLEES REMAINING IN RISK PLANS.
                           SUMMARY OF RISK/COST/HCPP CONTRACTS
                                       BY CATEGORY
                                 (AS OF   DECEMBER 01, 1992)
                           -----------------------------------
 HCPP CONTRACTS
 --------------
                                NUMBER OF                NUMBER OF
                                CONTRACTS      (%)       ENROLLEES       (%)
                                ---------      ---       ---------       ---
      MODEL
      -----
          IPA                       10         19           77,803        14
          GROUP                     34         65          423,014        78
          STAFF                      7         13           36,244         8
          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                      1          3            2,380         0

      OWNERSHIP
      ---------
          PROFIT                    17         33           89,585        17
          NON PROFIT                34         67          447,476        83

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

                                      POST-TEFRA
                                  (AS OF  DEC 1992)
                                  -----------------

 RUN DATE: 07/12/96

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

 TEFRA RISK                               96                       1,565,659

 OLD RISK                                  0                               0

 COST BASIS                               21                         129,010

 DEMO                                      4                          21,852
                                         ---                      ----------

   TOTAL HMO                             121                       1,716,521


 HCPPS & GPPPS                            44                         640,539
                                         ---                      ----------

   TOTAL PREPAID                         165                       2,357,060

     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1992



                                                                                                    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         1992                   BENES
     ---------------------------------------------------------------------------------------------------------

     ALABAMA                      4,253             655            15                   0                  0
     ALASKA                         604              35             6                   0                  0
     ARIZONA                      4,218             613            15              88,390                 14
     ARKANSAS                     2,484             431            17                   0                  0
     CALIFORNIA                  31,589           3,701            12             561,405                 15
     COLORADO                     3,747             431            12              32,389                  8
     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             305,887                 11
     GEORGIA                      7,201             851            12                   0                  0
     HAWAII                       1,187             152            13              12,342                  8
     IDAHO                        1,163             153            13                   0                  0
     ILLINOIS                    11,830           1,645            14              52,064                  3
     INDIANA                      5,803             838            14               2,637                  0
     IOWA                         2,842             482            17                   0                  0
     KANSAS                       2,565             390            15                   0                  0
     KENTUCKY                     3,860             600            16               3,214                  1
     LOUISIANA                    4,342             591            14                   0                  0
     MAINE                        1,241             206            17                   0                  0
     MARYLAND                     5,042             613            12                 689                  0
     MASSACHUSETTS                6,074             949            16              26,572                  3
     MICHIGAN                     9,549           1,373            14               6,902                  1
     MINNESOTA                    4,610             642            14              55,212                  9
     MISSISSIPPI                  2,697             406            15                   0                  0
     MISSOURI                     5,324             848            16              13,780                  2
     MONTANA                        870             132            15                   0                  0
     NEBRASKA                     1,637             253            15               3,342                  1
     NEVADA                       1,530             198            13              16,405                  8
     NEW HAMPSHIRE                1,148             159            14                   0                  0
     NEW JERSEY                   7,945           1,189            15                   0                  0
     NEW MEXICO                   1,685             216            13              16,286                  8
     NEW YORK                    18,136           2,685            15              63,274                  2
     NORTH CAROLINA               7,195           1,050            15                   0                  0
     NORTH DAKOTA                   641             105            16                   0                  0
     OHIO                        11,151           1,696            15              13,766                  1
     OKLAHOMA                     3,278             496            15               4,868                  1
     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1992



                                                                                                    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         1992                   BENES
     ---------------------------------------------------------------------------------------------------------

     OREGON                       3,141             476            15              79,249                 17
     PENNSYLVANIA                12,072           2,104            17              20,778                  1
     RHODE ISLAND                   990             171            17               9,950                  6
     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              32,383                  2
     UTAH                         1,951             191            10                   0                  0
     VERMONT                        585              85            15                   0                  0
     VIRGINIA                     6,618             835            13                 248                  0
     WASHINGTON                   5,431             701            13              55,457                  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           1,477,489                  4


     * DATA FROM THE U.S. DEPARTMENT OF COMMERCE

     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1992



                                                                                                        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          1992                  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               1,258                  0
     COLORADO                     3,747             431            12               9,470                  2
     CONNECTICUT                  3,275             511            16               8,240                  2
     DELAWARE                       717             103            14                   0                  0
     DISTRICT OF COLUMBIA           554              79            14                   0                  0
     FLORIDA                     14,166           2,667            19               1,364                  0
     GEORGIA                      7,201             851            12                   0                  0
     HAWAII                       1,187             152            13              21,996                 14
     IDAHO                        1,163             153            13                   0                  0
     ILLINOIS                    11,830           1,645            14               5,667                  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              14,130                  1
     NEW MEXICO                   1,685             216            13                   0                  0
     NEW YORK                    18,136           2,685            15               6,608                  0
     NORTH CAROLINA               7,195           1,050            15                   0                  0
     NORTH DAKOTA                   641             105            16                 637                  1
     OHIO                        11,151           1,696            15               1,136                  0
     OKLAHOMA                     3,278             496            15                   0                  0
     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1992



                                                                                                        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          1992                  BENES
     ---------------------------------------------------------------------------------------------------------

     OREGON                       3,141             476            15              13,444                  3
     PENNSYLVANIA                12,072           2,104            17                   0                  0
     RHODE ISLAND                   990             171            17               4,630                  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               4,817                  1
     WEST VIRGINIA                1,828             335            18               8,198                  2
     WISCONSIN                    5,123             775            15                   0                  0
     WYOMING                        480              62            13                   0                  0


     TOTAL                      262,754          37,428            14             101,595                  0


     * DATA FROM THE U.S. DEPARTMENT OF COMMERCE

     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1992



                                                                                                        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          1992                  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             254,466                  7
     COLORADO                     3,747             431            12               1,567                  0
     CONNECTICUT                  3,275             511            16               2,486                  0
     DELAWARE                       717             103            14                   0                  0
     DISTRICT OF COLUMBIA           554              79            14               8,106                 10
     FLORIDA                     14,166           2,667            19               6,018                  0
     GEORGIA                      7,201             851            12                   0                  0
     HAWAII                       1,187             152            13               3,592                  2
     IDAHO                        1,163             153            13                   0                  0
     ILLINOIS                    11,830           1,645            14              25,089                  2
     INDIANA                      5,803             838            14               5,130                  1
     IOWA                         2,842             482            17               9,705                  2
     KANSAS                       2,565             390            15              10,155                  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               4,465                  1
     MASSACHUSETTS                6,074             949            16               6,688                  1
     MICHIGAN                     9,549           1,373            14                 532                  0
     MINNESOTA                    4,610             642            14              72,804                 11
     MISSISSIPPI                  2,697             406            15                   0                  0
     MISSOURI                     5,324             848            16              15,259                  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              64,715                  2
     NORTH CAROLINA               7,195           1,050            15               3,090                  0
     NORTH DAKOTA                   641             105            16                   0                  0
     OHIO                        11,151           1,696            15              10,184                  1
     OKLAHOMA                     3,278             496            15                   0                  0
     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1992



                                                                                                        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          1992                  BENES
     ---------------------------------------------------------------------------------------------------------

     OREGON                       3,141             476            15                   0                  0
     PENNSYLVANIA                12,072           2,104            17                  35                  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               2,829                  0
     UTAH                         1,951             191            10               6,223                  3
     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               9,151                  1
     WYOMING                        480              62            13                   0                  0

     UMW (90091)                262,754          37,428            14              94,227                  0


     TOTAL                      262,754          37,428            14             616,516                  1


     GRAND TOTAL                262,754          37,428            14           2,195,600                  6


     * DATA FROM THE U.S. DEPARTMENT OF COMMERCE

                                                  BENEFIT AND PREMIUM SUMMARY - PLAN COUNTS
                                                             TEFRA RISK HMOS AND CMPS
                                                             (AS OF DECEMBER 01, 1992)

                                                                                                                            EXTEND.
                       ROUTINE             HEALTH    OUTPAT.    FOOT      EYE                 EAR      HEARING              MENTAL
                       PHYSICALS  IMMUM    ED.       DRUGS      CARE      EXAMS    LENSES     EXAMS    AIDS      DENTAL     HEALTH
                       ---------  -----    ------    -------    ----      -----    ------     -----    -------   ------     ------
 NUMBER AND               94       94       91        91        86        90       19         85         5        84       NO DATA
 PERCENT OF PLANS
 OFFERING ADDITIONAL
 BENEFITS IN THESE
 CATEGORIES IN BASIC
 OPTION PACKAGE

                       (100.00%) (100.00%) (96.81%)  (96.81%)  (91.49%)  (95.74%)  (20.21%)  (90.43%)  (5.32%)   (89.36%)
 ----------------------------------------------------------------------------------------------------------------------------------

 PLANS CHARGING COPAYS FOR BASIC PACKAGE: 79 YES (84.04%) 15 NO (15.96%)

 PLANS OFFERING HIGH OPTION PACKAGE: 22 OR (23.40%)

 BASIC PREMIUM RANGE:

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

                                           22                   $ 0               23.40
                                            9                   $ 0.01 - $19.99    9.57
                                           13                   $20.00 - $39.99   13.83
                                           22                   $40.00 - $59.99   23.40
                                           21                   $60.00 - $79.99   22.34
                                            7                   ABOVE $80.00       7.45

 AVERAGE BASIC PREMIUM = $39.42     HIGHEST BASIC PREMIUM = $97.00      MEDIAN BASIC PREMIUM = $55.50
