

                MEDICARE MANAGED CARE CONTRACT REPORT
                      (DATA AS OF DECEMBER 01, 1993)

      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         198                 2,631,706
             RISK (INCLUDES 0 DCGS)      109                 1,811,453
             COST                         23                   157,243
             OTHER DEMOS                   4                    21,662
             HCPPS                        62                   641,348

      PAYMENT STATISTICS:
      ------------------
         $818M    TOTAL PAYMENT MADE TO ALL PREPAID PLANS FOR DECEMBER 1993
         $2415M   FISCAL YEAR TO DATE

      ENROLLMENT STATISTICS
      ---------------------
             RISK ENROLLMENT CHANGED FROM  1,778,439 IN NOVEMBER
                  TO  1,814,648 IN DECEMBER OR 2% INCREASE.
             TOTAL ENROLLMENT CHANGED FROM  2,594,870 IN NOVEMBER
                   TO  2,634,901 IN DECEMBER OR 1.5% INCREASE.

      CHANGES SINCE NOVEMBER 01, 1993 REPORT:
      -------------------------------------

             1 HCPPS CONTRACT WAS SIGNED:
               UNION PACIFIC RR EMPLOYES HEALTH SYS, SALT LAKE CITY,UT

             3 PLANS EXPANDED THEIR SERVICE AREA:
               QUALMED PLANS FOR HEALTH , OAKLAND, CA
               QUALMED PLANS FOR HEALTH , OAKLAND, CA
               PACIFICARE OF CALIFORNIA, INC. NORTHERN CALIFORNIA , SAN RAFAEL, CA

      PENDING APPLICATIONS
      --------------------
             NONE

      PENDING SERVICE AREA EXPANSIONS
      -------------------------------
            15 RISK
             1 COST
             1 OTHER DEMOS
             1 HCPPS

      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, 1993)

 MEDICARE HMO/CMP DATA
 ---------------------
                                                                   PAYMENT       DEC, 93     YR TO DATE     DEC, 93
                                                        DEC, 93    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/           109      1,811,453       $698.0    $2,054.3         $0.0          $0.1       $698.0
      DEMOS                        4         21,662         $9.7       $29.0         $0.0          $0.0         $9.7
                                 ---      ---------       ------    --------      -------       -------      -------
        SUBTOTAL                 114      1,833,115       $707.7    $2,083.3         $0.0          $0.1       $707.7

      TEFRA COST    2/            23        157,243        $24.9       $76.7         $1.7          $1.7        $26.6
                                 ---      ---------       ------    --------      -------       -------      -------

        SUBTOTAL HMO/CMP         137      1,993,553       $732.6    $2,160.0         $1.7          $1.8       $734.3

      HCPP PART B   3/            62        641,348        $85.3      $255.2        $39.2         $52.0       $124.5
                                 ---      ---------       ------    --------      -------       -------      -------
 TOTAL                           199      2,631,706       $817.9    $2,415.2        $40.9         $53.8       $858.8


 _________________________________________________________________________________________________________________

 1/  INCLUDES 4 CONTRACTS WHICH HAVE BEEN SIGNED, BUT FOR WHICH NO PAYMENT HAS YET BEEN MADE FOR DECEMBER 1993.
     ALSO INCLUDES 0 DCGS.

 2/  INCLUDES 4 PLANS WITH TEFRA RISK CONTRACTS WHICH HAVE ENROLLEES STILL BEING PAID UNDER THE COST METHODS.

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

 *   INCLUDES CURRENT MONTH.

 **  REPORTS SPECIAL, NON MONTHLY RECONCILIATION PAYMENTS

                           SUMMARY OF RISK/COST/HCPP CONTRACTS
                                       BY CATEGORY
                                 (AS OF   DECEMBER 01, 1993)
                           -----------------------------------

 TEFRA RISK CONTRACTS
 --------------------
                                NUMBER OF                NUMBER OF
                                CONTRACTS      (%)       ENROLLEES       (%)
                                ---------      ---       ---------       ---
      MODEL
      -----
          IPA                       77         70          890,685        49
          GROUP                     20         18          339,331        19
          STAFF                     13         12          584,632        32

      OWNERSHIP
      ---------
          PROFIT                    70         64        1,273,157        70
          NON PROFIT                40         36          541,491        30
 ___________________________________________________________________________

 TEFRA COST CONTRACTS*
 ---------------------
                                NUMBER OF                NUMBER OF
                                CONTRACTS      (%)       ENROLLEES       (%)
                                ---------      ---       ---------       ---
      MODEL
      -----
          IPA                       13         57          116,655        76
          GROUP                      3         13           11,874         8
          STAFF                      7         30           24,746        16

      OWNERSHIP
      ---------
          PROFIT                     6         26           32,514        21
          NON PROFIT                17         74          120,761        79


 *DOES NOT INCLUDE COST ENROLLEES REMAINING IN RISK PLANS.
                           SUMMARY OF RISK/COST/HCPP CONTRACTS
                                       BY CATEGORY
                                 (AS OF   DECEMBER 01, 1993)
                           -----------------------------------
 HCPP CONTRACTS
 --------------
                                NUMBER OF                NUMBER OF
                                CONTRACTS      (%)       ENROLLEES       (%)
                                ---------      ---       ---------       ---
      MODEL
      -----
          IPA                        9         15           73,215        13
          GROUP                     41         67          440,193        79
          STAFF                      7         11           41,836         8
          UNION                      1          2                0         0
          EMPLOYER GROUP             1          2            1,945         0
          MEDICAL GROUP              1          2                0         0
          PUBLIC HMO                 0          0                0         0
          STATE LICENSED HMO         0          0                0         0
          OTHER                      1          1            2,443         0

      OWNERSHIP
      ---------
          PROFIT                    19         32           94,223        17
          NON PROFIT                41         68          462,966        83

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

                                      POST-TEFRA
                                  (AS OF  DEC 1993)
                                  -----------------

 RUN DATE: 07/12/96

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

 TEFRA RISK                              110                       1,814,648

 OLD RISK                                  0                               0

 COST BASIS                               22                         157,243

 DEMO                                      4                          21,662
                                         ---                      ----------

   TOTAL HMO                             136                       1,993,553


 HCPPS & GPPPS                            51                         641,348
                                         ---                      ----------

   TOTAL PREPAID                         187                       2,634,901

     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1993



                                                                                                    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         1993                   BENES
     ---------------------------------------------------------------------------------------------------------

     ALABAMA                      4,253             655            15                   0                  0
     ALASKA                         604              35             6                   0                  0
     ARIZONA                      4,218             613            15             128,965                 21
     ARKANSAS                     2,484             431            17                   0                  0
     CALIFORNIA                  31,589           3,701            12             705,109                 19
     COLORADO                     3,747             431            12              36,410                  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             327,855                 12
     GEORGIA                      7,201             851            12                   0                  0
     HAWAII                       1,187             152            13              12,670                  8
     IDAHO                        1,163             153            13                   0                  0
     ILLINOIS                    11,830           1,645            14              56,099                  3
     INDIANA                      5,803             838            14               2,480                  0
     IOWA                         2,842             482            17                   0                  0
     KANSAS                       2,565             390            15                   0                  0
     KENTUCKY                     3,860             600            16               2,630                  0
     LOUISIANA                    4,342             591            14                   0                  0
     MAINE                        1,241             206            17                   0                  0
     MARYLAND                     5,042             613            12                 757                  0
     MASSACHUSETTS                6,074             949            16              29,048                  3
     MICHIGAN                     9,549           1,373            14               6,857                  0
     MINNESOTA                    4,610             642            14              56,333                  9
     MISSISSIPPI                  2,697             406            15                   0                  0
     MISSOURI                     5,324             848            16              14,704                  2
     MONTANA                        870             132            15                   0                  0
     NEBRASKA                     1,637             253            15               3,321                  1
     NEVADA                       1,530             198            13              27,023                 14
     NEW HAMPSHIRE                1,148             159            14                   0                  0
     NEW JERSEY                   7,945           1,189            15                 447                  0
     NEW MEXICO                   1,685             216            13              18,287                  8
     NEW YORK                    18,136           2,685            15              75,852                  3
     NORTH CAROLINA               7,195           1,050            15                   0                  0
     NORTH DAKOTA                   641             105            16                   0                  0
     OHIO                        11,151           1,696            15              15,340                  1
     OKLAHOMA                     3,278             496            15               6,234                  1
     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1993



                                                                                                    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         1993                   BENES
     ---------------------------------------------------------------------------------------------------------

     OREGON                       3,141             476            15              84,710                 18
     PENNSYLVANIA                12,072           2,104            17              31,233                  1
     RHODE ISLAND                   990             171            17              12,861                  8
     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              48,739                  2
     UTAH                         1,951             191            10                   0                  0
     VERMONT                        585              85            15                   0                  0
     VIRGINIA                     6,618             835            13                 351                  0
     WASHINGTON                   5,431             701            13              59,181                  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           1,763,496                  5


     * DATA FROM THE U.S. DEPARTMENT OF COMMERCE

     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1993



                                                                                                        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          1993                  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               1,180                  0
     COLORADO                     3,747             431            12              10,245                  2
     CONNECTICUT                  3,275             511            16               8,817                  2
     DELAWARE                       717             103            14                   0                  0
     DISTRICT OF COLUMBIA           554              79            14                   0                  0
     FLORIDA                     14,166           2,667            19               1,550                  0
     GEORGIA                      7,201             851            12                   0                  0
     HAWAII                       1,187             152            13              25,540                 17
     IDAHO                        1,163             153            13                   0                  0
     ILLINOIS                    11,830           1,645            14               5,517                  0
     INDIANA                      5,803             838            14               3,736                  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              24,345                  2
     NEW MEXICO                   1,685             216            13                   0                  0
     NEW YORK                    18,136           2,685            15              26,260                  1
     NORTH CAROLINA               7,195           1,050            15                   0                  0
     NORTH DAKOTA                   641             105            16                 679                  1
     OHIO                        11,151           1,696            15               1,005                  0
     OKLAHOMA                     3,278             496            15                   0                  0
     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1993



                                                                                                        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          1993                  BENES
     ---------------------------------------------------------------------------------------------------------

     OREGON                       3,141             476            15              29,409                  6
     PENNSYLVANIA                12,072           2,104            17                   0                  0
     RHODE ISLAND                   990             171            17               4,799                  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               5,025                  1
     WEST VIRGINIA                1,828             335            18               8,130                  2
     WISCONSIN                    5,123             775            15                   0                  0
     WYOMING                        480              62            13                   0                  0


     TOTAL                      262,754          37,428            14             156,237                  0


     * DATA FROM THE U.S. DEPARTMENT OF COMMERCE

     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1993



                                                                                                        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          1993                  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             255,245                  7
     COLORADO                     3,747             431            12               1,682                  0
     CONNECTICUT                  3,275             511            16               2,476                  0
     DELAWARE                       717             103            14                   0                  0
     DISTRICT OF COLUMBIA           554              79            14               8,228                 10
     FLORIDA                     14,166           2,667            19               5,586                  0
     GEORGIA                      7,201             851            12               2,560                  0
     HAWAII                       1,187             152            13               3,507                  2
     IDAHO                        1,163             153            13                   0                  0
     ILLINOIS                    11,830           1,645            14              25,676                  2
     INDIANA                      5,803             838            14               5,323                  1
     IOWA                         2,842             482            17               9,575                  2
     KANSAS                       2,565             390            15               9,944                  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               5,272                  1
     MASSACHUSETTS                6,074             949            16              18,738                  2
     MICHIGAN                     9,549           1,373            14                 780                  0
     MINNESOTA                    4,610             642            14              67,362                 10
     MISSISSIPPI                  2,697             406            15                   0                  0
     MISSOURI                     5,324             848            16              15,734                  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              58,662                  2
     NORTH CAROLINA               7,195           1,050            15               3,445                  0
     NORTH DAKOTA                   641             105            16                   0                  0
     OHIO                        11,151           1,696            15              10,012                  1
     OKLAHOMA                     3,278             496            15                   0                  0
     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1993



                                                                                                        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          1993                  BENES
     ---------------------------------------------------------------------------------------------------------

     OREGON                       3,141             476            15                   0                  0
     PENNSYLVANIA                12,072           2,104            17                  26                  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               2,911                  0
     UTAH                         1,951             191            10              11,903                  6
     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               9,770                  1
     WYOMING                        480              62            13                   0                  0

     UMW (90091)                262,754          37,428            14              90,468                  0


     TOTAL                      262,754          37,428            14             624,885                  1


     GRAND TOTAL                262,754          37,428            14           2,544,618                  7


     * DATA FROM THE U.S. DEPARTMENT OF COMMERCE

                                                  BENEFIT AND PREMIUM SUMMARY - PLAN COUNTS
                                                             TEFRA RISK HMOS AND CMPS
                                                             (AS OF DECEMBER 01, 1993)

                                                                                                                            EXTEND.
                       ROUTINE             HEALTH    OUTPAT.    FOOT      EYE                 EAR      HEARING              MENTAL
                       PHYSICALS  IMMUM    ED.       DRUGS      CARE      EXAMS    LENSES     EXAMS    AIDS      DENTAL     HEALTH
                       ---------  -----    ------    -------    ----      -----    ------     -----    -------   ------     ------
 NUMBER AND              103       95       36        34        28        90        5         69         1        26       NO DATA
 PERCENT OF PLANS
 OFFERING ADDITIONAL
 BENEFITS IN THESE
 CATEGORIES IN BASIC
 OPTION PACKAGE

                       (96.26%)  (88.79%)  (33.64%)  (31.78%)  (26.17%)  (84.11%)  (4.67%)   (64.49%)  (0.93%)   (24.30%)
 ----------------------------------------------------------------------------------------------------------------------------------

 PLANS CHARGING COPAYS FOR BASIC PACKAGE: 100 YES (93.46%) 7 NO (6.54%)

 PLANS OFFERING HIGH OPTION PACKAGE: 30 OR (28.04%)

 BASIC PREMIUM RANGE:

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

                                           27                   $ 0               25.23
                                            6                   $ 0.01 - $19.99    5.61
                                           23                   $20.00 - $39.99   21.50
                                           25                   $40.00 - $59.99   23.36
                                           20                   $60.00 - $79.99   18.69
                                            6                   ABOVE $80.00       5.61

 AVERAGE BASIC PREMIUM = $37.05     HIGHEST BASIC PREMIUM = $104.00     MEDIAN BASIC PREMIUM = $51.50
