

                MEDICARE MANAGED CARE CONTRACT REPORT
                      (DATA AS OF DECEMBER 01, 1994)

      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         244                 3,055,598
             RISK (INCLUDES 0 DCGS)      154                 2,268,364
             COST                         29                   173,886
             OTHER DEMOS                   4                    22,342
             HCPPS                        57                   591,006

      PAYMENT STATISTICS:
      ------------------
         $1009M   TOTAL PAYMENT MADE TO ALL PREPAID PLANS FOR DECEMBER 1994
         $2988M   FISCAL YEAR TO DATE

      ENROLLMENT STATISTICS
      ---------------------
             RISK ENROLLMENT CHANGED FROM  2,225,745 IN NOVEMBER
                  TO  2,268,364 IN DECEMBER OR 1.9% INCREASE.
             TOTAL ENROLLMENT CHANGED FROM  3,019,439 IN NOVEMBER
                   TO  3,055,598 IN DECEMBER OR 1.2% INCREASE.

      CHANGES SINCE NOVEMBER 01, 1994 REPORT:
      -------------------------------------

             1 RISK CONTRACT WAS SIGNED:
               GENCARE HEALTH SYSTEMS, INC., ST. LOUIS,MO

             1 PLAN EXPANDED ITS SERVICE AREA
               PACIFICARE OF CALIFORNIA, INC. NORTHERN CALIFORNIA , SAN RAFAEL, CA

      PENDING APPLICATIONS
      --------------------
            25 RISK PLANS
             3 COST
             1 HCPP
             1 MIG DEMO
             1 NATIONWIDE DEMO (9 SITES)

      PENDING SERVICE AREA EXPANSIONS
      -------------------------------
            24 RISK
             5 COST

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

                                                  ENROLLMENT AND PAYMENT SUMMARY
                                                  ------------------------------
                                                      (AS OF  DECEMBER 01, 1994)

 MEDICARE HMO/CMP DATA
 ---------------------
                                                                   PAYMENT       DEC, 94     YR TO DATE     DEC, 94
                                                        DEC, 94    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/           154      2,268,364       $890.7    $2,632.8         $0.0          $0.0       $890.7
      DEMOS                        4         22,342        $11.6       $33.1         $0.0          $0.0        $11.6
                                 ---      ---------       ------    --------      -------       -------      -------
        SUBTOTAL                 158      2,290,706       $902.3    $2,665.9         $0.0          $0.0       $902.3

      TEFRA COST    2/            29        173,886        $30.8       $92.4         $1.8          $1.8        $32.6
                                 ---      ---------       ------    --------      -------       -------      -------

        SUBTOTAL HMO/CMP         187      2,464,592       $933.1    $2,758.3         $1.8          $1.8       $934.9

      HCPP PART B   3/            57        591,006        $75.8      $229.3        $17.8         $45.7        $93.6
                                 ---      ---------       ------    --------      -------       -------      -------
 TOTAL                           244      3,055,598     $1,008.9    $2,987.6        $19.6         $47.5     $1,028.5


 _________________________________________________________________________________________________________________

 1/  INCLUDES 8 CONTRACTS WHICH HAVE BEEN SIGNED, BUT FOR WHICH NO PAYMENT HAS YET BEEN MADE FOR DECEMBER 1994.
     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 14 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, 1994)
                           -----------------------------------

 TEFRA RISK CONTRACTS
 --------------------
                                NUMBER OF                NUMBER OF
                                CONTRACTS      (%)       ENROLLEES       (%)
                                ---------      ---       ---------       ---
      MODEL
      -----
          IPA                      106         69        1,191,845        53
          GROUP                     32         21          448,413        20
          STAFF                     16         10          628,106        27

      OWNERSHIP
      ---------
          PROFIT                   104         68        1,565,530        69
          NON PROFIT                50         32          702,834        31
 ___________________________________________________________________________

 TEFRA COST CONTRACTS*
 ---------------------
                                NUMBER OF                NUMBER OF
                                CONTRACTS      (%)       ENROLLEES       (%)
                                ---------      ---       ---------       ---
      MODEL
      -----
          IPA                       18         62          132,329        78
          GROUP                      3         10           12,063         7
          STAFF                      8         28           25,945        15

      OWNERSHIP
      ---------
          PROFIT                     9         31           34,728        20
          NON PROFIT                20         69          135,609        80


 *DOES NOT INCLUDE COST ENROLLEES REMAINING IN RISK PLANS.
                           SUMMARY OF RISK/COST/HCPP CONTRACTS
                                       BY CATEGORY
                                 (AS OF   DECEMBER 01, 1994)
                           -----------------------------------
 HCPP CONTRACTS
 --------------
                                NUMBER OF                NUMBER OF
                                CONTRACTS      (%)       ENROLLEES       (%)
                                ---------      ---       ---------       ---
      MODEL
      -----
          IPA                        9         16           69,003        19
          GROUP                     39         68          231,751        64
          STAFF                      5          9           38,181        11
          UNION                      1          2           14,731         4
          EMPLOYER GROUP             1          2            1,852         1
          MEDICAL GROUP              1          2            2,346         1
          PUBLIC HMO                 0          0                0         0
          STATE LICENSED HMO         0          0                0         0
          OTHER                      1          1            2,507         0

      OWNERSHIP
      ---------
          PROFIT                    15         27           85,923        24
          NON PROFIT                41         73          271,941        76

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

                                      POST-TEFRA
                                  (AS OF  DEC 1994)
                                  -----------------

 RUN DATE: 07/12/96

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

 TEFRA RISK                              154                       2,268,364

 OLD RISK                                  0                               0

 COST BASIS                               28                         173,886

 DEMO                                      4                          22,342
                                         ---                      ----------

   TOTAL HMO                             186                       2,464,592


 HCPPS & GPPPS                            49                         591,006
                                         ---                      ----------

   TOTAL PREPAID                         235                       3,055,598

     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1994



                                                                                                    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         1994                   BENES
     ---------------------------------------------------------------------------------------------------------

     ALABAMA                      4,253             655            15               1,630                  0
     ALASKA                         604              35             6                   0                  0
     ARIZONA                      4,218             613            15             154,939                 25
     ARKANSAS                     2,484             431            17                   0                  0
     CALIFORNIA                  31,589           3,701            12             912,922                 25
     COLORADO                     3,747             431            12              49,469                 11
     CONNECTICUT                  3,275             511            16                 193                  0
     DELAWARE                       717             103            14                   0                  0
     DISTRICT OF COLUMBIA           554              79            14                   0                  0
     FLORIDA                     14,166           2,667            19             376,613                 14
     GEORGIA                      7,201             851            12                   0                  0
     HAWAII                       1,187             152            13              13,044                  9
     IDAHO                        1,163             153            13                   0                  0
     ILLINOIS                    11,830           1,645            14              62,669                  4
     INDIANA                      5,803             838            14               2,549                  0
     IOWA                         2,842             482            17                   0                  0
     KANSAS                       2,565             390            15                   0                  0
     KENTUCKY                     3,860             600            16               2,705                  0
     LOUISIANA                    4,342             591            14               2,344                  0
     MAINE                        1,241             206            17                   0                  0
     MARYLAND                     5,042             613            12               1,823                  0
     MASSACHUSETTS                6,074             949            16              39,152                  4
     MICHIGAN                     9,549           1,373            14               6,964                  1
     MINNESOTA                    4,610             642            14              56,421                  9
     MISSISSIPPI                  2,697             406            15                   0                  0
     MISSOURI                     5,324             848            16              15,793                  2
     MONTANA                        870             132            15                   0                  0
     NEBRASKA                     1,637             253            15               3,285                  1
     NEVADA                       1,530             198            13              35,873                 18
     NEW HAMPSHIRE                1,148             159            14                   0                  0
     NEW JERSEY                   7,945           1,189            15               4,449                  0
     NEW MEXICO                   1,685             216            13              27,939                 13
     NEW YORK                    18,136           2,685            15             100,421                  4
     NORTH CAROLINA               7,195           1,050            15                   0                  0
     NORTH DAKOTA                   641             105            16                   0                  0
     OHIO                        11,151           1,696            15              17,735                  1
     OKLAHOMA                     3,278             496            15               7,919                  2
     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1994



                                                                                                    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         1994                   BENES
     ---------------------------------------------------------------------------------------------------------

     OREGON                       3,141             476            15              96,896                 20
     PENNSYLVANIA                12,072           2,104            17              56,004                  3
     RHODE ISLAND                   990             171            17              11,437                  7
     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              82,685                  4
     UTAH                         1,951             191            10                   0                  0
     VERMONT                        585              85            15                   0                  0
     VIRGINIA                     6,618             835            13               1,306                  0
     WASHINGTON                   5,431             701            13              67,524                 10
     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           2,212,703                  6


     * DATA FROM THE U.S. DEPARTMENT OF COMMERCE

     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1994



                                                                                                        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          1994                  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               1,063                  0
     COLORADO                     3,747             431            12              14,516                  3
     CONNECTICUT                  3,275             511            16               8,984                  2
     DELAWARE                       717             103            14                   0                  0
     DISTRICT OF COLUMBIA           554              79            14                   0                  0
     FLORIDA                     14,166           2,667            19               1,851                  0
     GEORGIA                      7,201             851            12                   0                  0
     HAWAII                       1,187             152            13              28,576                 19
     IDAHO                        1,163             153            13                   0                  0
     ILLINOIS                    11,830           1,645            14               5,087                  0
     INDIANA                      5,803             838            14               3,705                  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              24,215                  2
     NEW MEXICO                   1,685             216            13                   0                  0
     NEW YORK                    18,136           2,685            15              28,214                  1
     NORTH CAROLINA               7,195           1,050            15                   0                  0
     NORTH DAKOTA                   641             105            16                 720                  1
     OHIO                        11,151           1,696            15                 949                  0
     OKLAHOMA                     3,278             496            15                   0                  0
     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1994



                                                                                                        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          1994                  BENES
     ---------------------------------------------------------------------------------------------------------

     OREGON                       3,141             476            15              33,464                  7
     PENNSYLVANIA                12,072           2,104            17                   0                  0
     RHODE ISLAND                   990             171            17               5,065                  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               5,254                  1
     WEST VIRGINIA                1,828             335            18               7,980                  2
     WISCONSIN                    5,123             775            15                   0                  0
     WYOMING                        480              62            13                   0                  0


     TOTAL                      262,754          37,428            14             169,643                  0


     * DATA FROM THE U.S. DEPARTMENT OF COMMERCE

     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1994



                                                                                                        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          1994                  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             192,969                  5
     COLORADO                     3,747             431            12               1,702                  0
     CONNECTICUT                  3,275             511            16               2,639                  1
     DELAWARE                       717             103            14                   0                  0
     DISTRICT OF COLUMBIA           554              79            14               7,848                 10
     FLORIDA                     14,166           2,667            19               5,916                  0
     GEORGIA                      7,201             851            12               2,751                  0
     HAWAII                       1,187             152            13               3,433                  2
     IDAHO                        1,163             153            13                   0                  0
     ILLINOIS                    11,830           1,645            14              25,594                  2
     INDIANA                      5,803             838            14               5,366                  1
     IOWA                         2,842             482            17               9,356                  2
     KANSAS                       2,565             390            15               9,589                  2
     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               6,165                  1
     MASSACHUSETTS                6,074             949            16              20,268                  2
     MICHIGAN                     9,549           1,373            14                 807                  0
     MINNESOTA                    4,610             642            14              62,160                 10
     MISSISSIPPI                  2,697             406            15                   0                  0
     MISSOURI                     5,324             848            16              16,065                  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              52,282                  2
     NORTH CAROLINA               7,195           1,050            15               3,739                  0
     NORTH DAKOTA                   641             105            16                   0                  0
     OHIO                        11,151           1,696            15               9,779                  1
     OKLAHOMA                     3,278             496            15                   0                  0
     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1994



                                                                                                        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          1994                  BENES
     ---------------------------------------------------------------------------------------------------------

     OREGON                       3,141             476            15                   0                  0
     PENNSYLVANIA                12,072           2,104            17                  20                  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               7,399                  0
     UTAH                         1,951             191            10              29,289                 15
     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              10,553                  1
     WYOMING                        480              62            13                   0                  0

     UMW (90091)                262,754          37,428            14              86,023                  0


     TOTAL                      262,754          37,428            14             571,712                  1


     GRAND TOTAL                262,754          37,428            14           2,954,058                  8


     * DATA FROM THE U.S. DEPARTMENT OF COMMERCE

                                                  BENEFIT AND PREMIUM SUMMARY - PLAN COUNTS
                                                             TEFRA RISK HMOS AND CMPS
                                                             (AS OF DECEMBER 01, 1994)

                                                                                                                            EXTEND.
                       ROUTINE             HEALTH    OUTPAT.    FOOT      EYE                 EAR      HEARING              MENTAL
                       PHYSICALS  IMMUM    ED.       DRUGS      CARE      EXAMS    LENSES     EXAMS    AIDS      DENTAL     HEALTH
                       ---------  -----    ------    -------    ----      -----    ------     -----    -------   ------     ------
 NUMBER AND              140      130       43        54        45       120       29         98         9        40       NO DATA
 PERCENT OF PLANS
 OFFERING ADDITIONAL
 BENEFITS IN THESE
 CATEGORIES IN BASIC
 OPTION PACKAGE

                       (97.22%)  (90.28%)  (29.86%)  (37.50%)  (31.25%)  (83.33%)  (20.14%)  (68.06%)  (6.25%)   (27.78%)
 ----------------------------------------------------------------------------------------------------------------------------------

 PLANS CHARGING COPAYS FOR BASIC PACKAGE: 137 YES (95.14%) 7 NO (4.86%)

 PLANS OFFERING HIGH OPTION PACKAGE: 47 OR (32.64%)

 BASIC PREMIUM RANGE:

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

                                           47                   $ 0               32.64
                                           10                   $ 0.01 - $19.99    6.94
                                           28                   $20.00 - $39.99   19.44
                                           36                   $40.00 - $59.99   25.00
                                           16                   $60.00 - $79.99   11.11
                                            7                   ABOVE $80.00       4.86

 AVERAGE BASIC PREMIUM = $32.00     HIGHEST BASIC PREMIUM = $111.00     MEDIAN BASIC PREMIUM = $49.00
