

                MEDICARE MANAGED CARE CONTRACT REPORT
                      (DATA AS OF DECEMBER 01, 1995)

      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         276                 3,812,770
             RISK (INCLUDES 0 DCGS)      183                 3,089,259
             COST                         32                   182,846
             OTHER DEMOS                   6                    18,863
             HCPPS                        55                   521,802

      PAYMENT STATISTICS:
      ------------------
         $1381M   TOTAL PAYMENT MADE TO ALL PREPAID PLANS FOR DECEMBER 1995
         $4037M   FISCAL YEAR TO DATE

      ENROLLMENT STATISTICS
      ---------------------
             RISK ENROLLMENT CHANGED FROM  3,030,159 IN NOVEMBER
                  TO  3,089,259 IN DECEMBER OR 2% INCREASE.
             TOTAL ENROLLMENT CHANGED FROM  3,760,892 IN NOVEMBER
                   TO  3,812,770 IN DECEMBER OR 1.4% INCREASE.

      CHANGES SINCE NOVEMBER 01, 1995 REPORT:
      -------------------------------------

             2 COST CONTRACTS WERE SIGNED:
               VIRGINIA MASON HEALTH PLAN, INC., SEATTLE,WA
               GROUP HEALTH NORTHWEST  WASHINGTON, SPOKANE,WA

             1 RISK CONTRACT WAS SIGNED:
               FIRST OPTION HEALTH PLAN OF NJ, INC, RED BANK,NJ

             8 PLANS EXPANDED THEIR SERVICE AREA:
               SCAN HEALTH PLAN , LONG BEACH, CA
               OPTIMUM CHOICE, INC. , ROCKVILLE, MD
               KAISER FOUNDATION HP OF CO , DENVER, CO
               AETNA HEALTH PLANS OF OHIO, INC. , CLEVELAND, OH
               NYLCARE HEALTH PLANS, INC. GREENBELT , GREENBELT, MD
               HEALTH NET , VAN NUYS, CA
               HUMANA HEALTH PLAN, INC. PHOENIX , PHOENIX, AZ
               COMPLETE HEALTH, INC. , BIRMINGHAM, AL

      PENDING APPLICATIONS
      --------------------
            10 RISK PLANS
             5 COST
             1 OTHER DEMOS
            79 NO PAYMENT BILL OPTION ASSIGNED

      PENDING SERVICE AREA EXPANSIONS
      -------------------------------
            43 RISK
             6 COST
             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, 1995)

 MEDICARE HMO/CMP DATA
 ---------------------
                                                                   PAYMENT       DEC, 95     YR TO DATE     DEC, 95
                                                        DEC, 95    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/           183      3,089,259     $1,268.5    $3,699.6         $0.0          $0.0     $1,268.5
      DEMOS                        6         18,863        $12.1       $33.0         $0.0          $0.0        $12.1
                                 ---      ---------       ------    --------      -------       -------      -------
        SUBTOTAL                 189      3,108,122     $1,280.6    $3,732.6         $0.0          $0.0     $1,280.6

      TEFRA COST    2/            32        182,846        $32.1       $96.6         $0.4          $1.7        $32.5
                                 ---      ---------       ------    --------      -------       -------      -------

        SUBTOTAL HMO/CMP         221      3,290,968     $1,312.7    $3,829.2         $0.4          $1.7     $1,313.1

      HCPP PART B   3/            55        521,802        $68.5      $208.1         $2.7          $7.4        $71.2
                                 ---      ---------       ------    --------      -------       -------      -------
 TOTAL                           276      3,812,770     $1,381.2    $4,037.3         $3.1          $9.1     $1,384.3


 _________________________________________________________________________________________________________________

 1/  INCLUDES 7 CONTRACTS WHICH HAVE BEEN SIGNED, BUT FOR WHICH NO PAYMENT HAS YET BEEN MADE FOR DECEMBER 1995.
     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 15 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, 1995)
                           -----------------------------------

 TEFRA RISK CONTRACTS
 --------------------
                                NUMBER OF                NUMBER OF
                                CONTRACTS      (%)       ENROLLEES       (%)
                                ---------      ---       ---------       ---
      MODEL
      -----
          IPA                      129         70        1,817,058        59
          GROUP                     37         20          594,862        19
          STAFF                     17         10          677,339        22

      OWNERSHIP
      ---------
          PROFIT                   126         69        2,089,759        68
          NON PROFIT                57         31          999,500        32
 ___________________________________________________________________________

 TEFRA COST CONTRACTS*
 ---------------------
                                NUMBER OF                NUMBER OF
                                CONTRACTS      (%)       ENROLLEES       (%)
                                ---------      ---       ---------       ---
      MODEL
      -----
          IPA                       19         61          140,153        79
          GROUP                      3         10           11,384         6
          STAFF                      9         29           25,475        15

      OWNERSHIP
      ---------
          PROFIT                    10         31           31,357        18
          NON PROFIT                22         69          145,655        82


 *DOES NOT INCLUDE COST ENROLLEES REMAINING IN RISK PLANS.
                           SUMMARY OF RISK/COST/HCPP CONTRACTS
                                       BY CATEGORY
                                 (AS OF   DECEMBER 01, 1995)
                           -----------------------------------
 HCPP CONTRACTS
 --------------
                                NUMBER OF                NUMBER OF
                                CONTRACTS      (%)       ENROLLEES       (%)
                                ---------      ---       ---------       ---
      MODEL
      -----
          IPA                        8         15           66,025        19
          GROUP                     37         67          210,986        62
          STAFF                      5          9           39,552        12
          UNION                      2          4           14,400         4
          EMPLOYER GROUP             1          2            2,188         1
          MEDICAL GROUP              1          2            4,781         1
          PUBLIC HMO                 0          0                0         0
          STATE LICENSED HMO         0          0                0         0
          OTHER                      1          1            2,459         1

      OWNERSHIP
      ---------
          PROFIT                    14         26           68,842        20
          NON PROFIT                40         74          269,090        80

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

                                      POST-TEFRA
                                  (AS OF  DEC 1995)
                                  -----------------

 RUN DATE: 07/12/96

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

 TEFRA RISK                              183                       3,089,259

 OLD RISK                                  0                               0

 COST BASIS                               31                         182,846

 DEMO                                      6                          18,863
                                         ---                      ----------

   TOTAL HMO                             220                       3,290,968


 HCPPS & GPPPS                            48                         521,802
                                         ---                      ----------

   TOTAL PREPAID                         268                       3,812,770

     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1995



                                                                                                    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         1995                   BENES
     ---------------------------------------------------------------------------------------------------------

     ALABAMA                      4,253             655            15              11,868                  2
     ALASKA                         604              35             6                   0                  0
     ARIZONA                      4,218             613            15             182,205                 30
     ARKANSAS                     2,484             431            17                   0                  0
     CALIFORNIA                  31,589           3,701            12           1,153,180                 31
     COLORADO                     3,747             431            12              73,113                 17
     CONNECTICUT                  3,275             511            16               2,438                  0
     DELAWARE                       717             103            14                   0                  0
     DISTRICT OF COLUMBIA           554              79            14               4,352                  6
     FLORIDA                     14,166           2,667            19             469,688                 18
     GEORGIA                      7,201             851            12                   0                  0
     HAWAII                       1,187             152            13              13,555                  9
     IDAHO                        1,163             153            13                   0                  0
     ILLINOIS                    11,830           1,645            14              75,917                  5
     INDIANA                      5,803             838            14               3,311                  0
     IOWA                         2,842             482            17                   0                  0
     KANSAS                       2,565             390            15                   0                  0
     KENTUCKY                     3,860             600            16               5,177                  1
     LOUISIANA                    4,342             591            14              32,511                  6
     MAINE                        1,241             206            17                   0                  0
     MARYLAND                     5,042             613            12              10,965                  2
     MASSACHUSETTS                6,074             949            16              79,387                  8
     MICHIGAN                     9,549           1,373            14               7,408                  1
     MINNESOTA                    4,610             642            14              58,974                  9
     MISSISSIPPI                  2,697             406            15                   0                  0
     MISSOURI                     5,324             848            16              32,939                  4
     MONTANA                        870             132            15                   0                  0
     NEBRASKA                     1,637             253            15               3,626                  1
     NEVADA                       1,530             198            13              46,679                 24
     NEW HAMPSHIRE                1,148             159            14                   0                  0
     NEW JERSEY                   7,945           1,189            15              19,989                  2
     NEW MEXICO                   1,685             216            13              31,480                 15
     NEW YORK                    18,136           2,685            15             159,342                  6
     NORTH CAROLINA               7,195           1,050            15                   0                  0
     NORTH DAKOTA                   641             105            16                   0                  0
     OHIO                        11,151           1,696            15              31,010                  2
     OKLAHOMA                     3,278             496            15              17,179                  3
     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1995



                                                                                                    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         1995                   BENES
     ---------------------------------------------------------------------------------------------------------

     OREGON                       3,141             476            15             110,950                 23
     PENNSYLVANIA                12,072           2,104            17             163,902                  8
     RHODE ISLAND                   990             171            17              15,416                  9
     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             152,249                  7
     UTAH                         1,951             191            10                   0                  0
     VERMONT                        585              85            15                   0                  0
     VIRGINIA                     6,618             835            13               5,010                  1
     WASHINGTON                   5,431             701            13              95,649                 14
     WEST VIRGINIA                1,828             335            18                   0                  0
     WISCONSIN                    5,123             775            15                 493                  0
     WYOMING                        480              62            13                   0                  0


     TOTAL                      262,754          37,428            14           3,069,962                  8


     * DATA FROM THE U.S. DEPARTMENT OF COMMERCE

     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1995



                                                                                                        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          1995                  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                 990                  0
     COLORADO                     3,747             431            12              15,025                  3
     CONNECTICUT                  3,275             511            16               8,962                  2
     DELAWARE                       717             103            14                   0                  0
     DISTRICT OF COLUMBIA           554              79            14                   0                  0
     FLORIDA                     14,166           2,667            19               2,227                  0
     GEORGIA                      7,201             851            12                   0                  0
     HAWAII                       1,187             152            13              28,879                 19
     IDAHO                        1,163             153            13                   0                  0
     ILLINOIS                    11,830           1,645            14               4,860                  0
     INDIANA                      5,803             838            14               3,656                  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               2,540                  1
     NEW HAMPSHIRE                1,148             159            14                   0                  0
     NEW JERSEY                   7,945           1,189            15              20,739                  2
     NEW MEXICO                   1,685             216            13                   0                  0
     NEW YORK                    18,136           2,685            15              30,826                  1
     NORTH CAROLINA               7,195           1,050            15                   0                  0
     NORTH DAKOTA                   641             105            16                 729                  1
     OHIO                        11,151           1,696            15                 962                  0
     OKLAHOMA                     3,278             496            15                   0                  0
     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1995



                                                                                                        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          1995                  BENES
     ---------------------------------------------------------------------------------------------------------

     OREGON                       3,141             476            15              39,349                  8
     PENNSYLVANIA                12,072           2,104            17                   0                  0
     RHODE ISLAND                   990             171            17               2,593                  2
     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                 713                  1
     VIRGINIA                     6,618             835            13                   0                  0
     WASHINGTON                   5,431             701            13               5,573                  1
     WEST VIRGINIA                1,828             335            18               7,733                  2
     WISCONSIN                    5,123             775            15                   0                  0
     WYOMING                        480              62            13                   0                  0


     TOTAL                      262,754          37,428            14             176,356                  0


     * DATA FROM THE U.S. DEPARTMENT OF COMMERCE

     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1995



                                                                                                        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          1995                  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             134,291                  4
     COLORADO                     3,747             431            12               1,672                  0
     CONNECTICUT                  3,275             511            16               2,745                  1
     DELAWARE                       717             103            14                   0                  0
     DISTRICT OF COLUMBIA           554              79            14               6,776                  9
     FLORIDA                     14,166           2,667            19               4,447                  0
     GEORGIA                      7,201             851            12               2,923                  0
     HAWAII                       1,187             152            13               3,291                  2
     IDAHO                        1,163             153            13                   0                  0
     ILLINOIS                    11,830           1,645            14              25,893                  2
     INDIANA                      5,803             838            14               5,420                  1
     IOWA                         2,842             482            17               9,281                  2
     KANSAS                       2,565             390            15               9,460                  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               6,766                  1
     MASSACHUSETTS                6,074             949            16              21,629                  2
     MICHIGAN                     9,549           1,373            14                 891                  0
     MINNESOTA                    4,610             642            14              60,443                  9
     MISSISSIPPI                  2,697             406            15                   0                  0
     MISSOURI                     5,324             848            16              15,724                  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              48,703                  2
     NORTH CAROLINA               7,195           1,050            15               4,024                  0
     NORTH DAKOTA                   641             105            16                   0                  0
     OHIO                        11,151           1,696            15               9,827                  1
     OKLAHOMA                     3,278             496            15                   0                  0
     MEDICARE ENROLLEE DISTRIBUTION BY STATE AS OF DECEMBER 01, 1995



                                                                                                        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          1995                  BENES
     ---------------------------------------------------------------------------------------------------------

     OREGON                       3,141             476            15                   0                  0
     PENNSYLVANIA                12,072           2,104            17               1,151                  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               7,195                  0
     UTAH                         1,951             191            10              30,733                 16
     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              10,928                  1
     WYOMING                        480              62            13                   0                  0

     UMW (90091)                262,754          37,428            14              81,829                  0


     TOTAL                      262,754          37,428            14             506,042                  1


     GRAND TOTAL                262,754          37,428            14           3,752,360                 10


     * DATA FROM THE U.S. DEPARTMENT OF COMMERCE

                                                  BENEFIT AND PREMIUM SUMMARY - PLAN COUNTS
                                                             TEFRA RISK HMOS AND CMPS
                                                             (AS OF DECEMBER 01, 1995)

                                                                                                                            EXTEND.
                       ROUTINE             HEALTH    OUTPAT.    FOOT      EYE                 EAR      HEARING              MENTAL
                       PHYSICALS  IMMUM    ED.       DRUGS      CARE      EXAMS    LENSES     EXAMS    AIDS      DENTAL     HEALTH
                       ---------  -----    ------    -------    ----      -----    ------     -----    -------   ------     ------
 NUMBER AND              166      148       41        86        57       154        8        125         6        61       NO DATA
 PERCENT OF PLANS
 OFFERING ADDITIONAL
 BENEFITS IN THESE
 CATEGORIES IN BASIC
 OPTION PACKAGE

                       (96.51%)  (86.05%)  (23.84%)  (50.00%)  (33.14%)  (89.53%)  (4.65%)   (72.67%)  (3.49%)   (35.47%)
 ----------------------------------------------------------------------------------------------------------------------------------

 PLANS CHARGING COPAYS FOR BASIC PACKAGE: 163 YES (94.77%) 9 NO (5.23%)

 PLANS OFFERING HIGH OPTION PACKAGE: 69 OR (40.12%)

 BASIC PREMIUM RANGE:

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

                                           88                   $ 0               51.16
                                           12                   $ 0.01 - $19.99    6.98
                                           31                   $20.00 - $39.99   18.02
                                           20                   $40.00 - $59.99   11.63
                                           15                   $60.00 - $79.99    8.72
                                            6                   ABOVE $80.00       3.49

 AVERAGE BASIC PREMIUM = $21.05     HIGHEST BASIC PREMIUM = $111.00     MEDIAN BASIC PREMIUM = $39.37
