EXHIBIT 10.1

**ARIZONA HEALTH CARE COST CONTAINMENT SYSTEM ADMINISTRATION**DIVISION OF BUSINESS AND FINANCE**CONTRACT AMENDMENT**

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| 1. AMENDMENT NUMBER:     06                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  | 2.  CONTRACT NO.:      YH04-0001-06 |  | 3.  EFFECTIVE DATE OF MODIFICATION:      October 1, 2003 |  | 4.  PROGRAM:      DHCM-Acute |
| 5. CONTRACTOR/PROVIDER NAME AND ADDRESS:

Phoenix Health Plan/Community Connection 1209 South 7th Avenue Phoenix, Arizona  85007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 6. PURPOSE:  To revise capitation rates contained in Section B.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 7.  THE CONTRACT REFERENCED ABOVE IS AMENDED AS FOLLOWS:      A.   The rates contained in the existing Section B are deleted and replaced with the attached revised capitation rates.  The purpose of this              amendment is to adjust for premium tax that had not been included in previous rate schedules.      *NOTE:  Please sign, date and return one original to:          Gary L. Callahan, Contract Management Supervisor                                                                                                AHCCCS Contracts and Purchasing                                                                                                701 E Jefferson Street, MD5700                                                                                                Phoenix, AZ  85034* |
| 8. EXCEPT AS PROVIDED FOR HEREIN, ALL TERMS AND CONDITIONS OF THE ORIGINAL CONTRACT NOT HERETOFORE CHANGED AND/OR AMENDED REMAIN UNCHANGED AND IN FULL EFFECT. IN WITNESS WHEREOF THE PARTIES HERETO SIGN THEIR NAMES IN AGREEMENT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 9. NAME OF CONTRACTOR:     Phoenix Health Plan/Community Connection                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 10. ARIZONA HEALTH CARE COST CONTAINMENT SYSTEM |
| SIGNATURE OF AUTHORIZED INDIVIDUAL:/s/ Nancy Novick                                    NANCY NOVICK CHIEF EXECUTIVE OFFICER                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |         | SIGNATURE:/s/ Michael Veit                                        MICHAEL VEIT CONTRACTS & PURCHASING ADMINISTRATOR |
| DATE:  11/10/03                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |      | DATE:  OCTOBER 31, 2003 |

****

| **Final Awarded Rate – CYE04 Phoenix Health Plan: GSA 8 (Effective 10/01/03)**    |
|-----------------------------------------------------------------------------------------|
| **PERCENT CHANGE DUE TO PROGRAMMATIC ADJUSTMENTS**                                      |
| **PMPMs & PROGRAMMATIC ADJUSTMENTS**                                                | **TANF & KC <1 M&F** | **TANF & KC 1-13 M&F** | **TANF & KC 14 - 44 F 1** | **TANF & KC 14 - 44 M 1** | **TANF 45+ M&F** | **SSI w/ Medicare** | **SSI w/o Medicare** | **Extended Family Planning Services** | **Maternity Delivery Payment** | **AIDS / HIV Supplemental Payment** | **Non-MED Prior Period Coverage** | **Non-MED Prospective** | **MED Prior Period Coverage** | **MED Prospective** | **MED Hospitalized Supplemental** |
| Originally Awarded PMPM                                                                 | **$362.11** | **$89.55** | **$156.04** | **$107.93** | **$307.78** | **$230.10** | **$463.50** | **$14.38** | **$5,617.75** | **$740.35** | **$531.41** | **$387.36** | **$1,521.38** | **$738.34** | **$9,108.27** |
| Outpatient & Emergency Room Adjustment                                              | 1.46% | 2.79% | 3.22% | 3.71% | 3.14% | 2.00% | 2.94% | 0.00% | -0.73% | 0.00% | 2.77% | 2.77% | 2.65% | 2.65% | 1.39% |
| Cost Sharing Proposal Adjustment                                                        | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | -4.41% | 0.00% | -5.09% | 0.00% |
| Reinsurance Incorporating Catastrophic and Transplant Data Adjustment                   | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Hospital Inpatient DRI Trend Update Adjustment - (4.0% estimate changed to 3.8% actual) | -0.10% | -0.02% | -0.05% | -0.03% | -0.05% | -0.02% | -0.04% | -0.02% | -0.09% | 0.00% | -0.06% | -0.06% | -0.06% | -0.06% | -0.23% |
| Fee-for-Service Schedule Change (Referral Physician and Lab & X-Ray COS)            | -0.17% | -0.06% | -0.16% | -0.30% | -0.41% | -0.09% | -0.38% | 0.00% | 0.04% | 0.00% | -0.38% | -0.38% | -0.49% | -0.49% | -0.49% |
| Premium Tax Implementation Adjustment                                                   | 2.04% | 2.04% | 2.04% | 2.04% | 2.04% | 2.04% | 2.04% | 2.04% | 2.04% | 2.04% | 2.04% | 2.04% | 2.04% | 2.04% | 2.04% |
| Total Adjustment Impacting Base PMPM 2                                                  | **3.25%** | **4.80%** | **5.11%** | **5.47%** | **4.77%** | **3.97%** | **4.60%** | **2.02%** | **1.24%** | **2.04%** | **4.41%** | **-0.20%** | **4.17%** | **-1.13%** | **2.72%** |
| Adjusted Awarded PMPM for Plans Electing the $20k Reinsurance Deductible                | $373.88 | $93.85 | $164.01 | $113.84 | $322.45 | $239.24 | $484.80 | $14.67 | $5,687.46 | $755.46 | $554.83 | $386.59 | $1,584.83 | $730.00 | $9,355.58 |
| Impact of Electing the $50k Reinsurance Deductible 3                                    | 6.08% | 0.55% | 1.31% | 1.40% | 0.87% | 0.20% | 3.47% | 0.00% | -0.30% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Premium Tax Adjustment of Electing the $50k Reinsurance Deductible 3                    | 2.04% | 2.04% | 2.04% | 2.04% | 2.04% | 2.04% | 2.04% | 0.00% | 2.04% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Adjusted Awarded PMPM for Plans Electing the $50k Reinsurance Deductible                | **$397.06** | **$94.37** | **$166.19** | **$115.46** | **$325.30** | **$239.74** | **$501.95** | **$14.67** | **$5,669.95** | **$755.46** | **$554.83** | **$386.59** | **$1,584.83** | **$730.00** | **$9,355.58** |
| **PERCENT CHANGE DUE TO PROGRAMMATIC ADJUSTMENTS**                                      |
|-----------------------------------------------------------------------------------------|
| **PMPMs & PROGRAMMATIC ADJUSTMENTS**                                                | **PPC Rural TANF & KC <1 M&F** | **PPC Rural TANF & KC 1-13 M&F** | **PPC Rural TANF & KC 14 - 44 F 1** | **PPC Rural TANF & KC 14 - 44 M 1** | **PPC Rural TANF 45+ M&F** | **PPC Rural SSI w/ Medicare** | **PPC Rural SSI w/o Medicare** | **PPC Urban TANF & KC <1 M&F** | **PPC Urban TANF & KC 1-13 M&F** | **PPC Urban TANF & KC 14 - 44 F 1** | **PPC Urban TANF & KC 14 - 44 M 1** | **PPC Urban TANF 45+ M&F** | **PPC Urban SSI w/ Medicare** | **PPC Urban SSI w/o Medicare** |
| Originally Awarded PMPM                                                                 | **$714.74** | **$37.84** | **$143.67** | **$116.05** | **$269.14** | **$37.03** | **$82.34** | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** |
| Outpatient & Emergency Room Adjustment                                              | 1.46% | 2.79% | 3.22% | 3.71% | 3.14% | 2.00% | 2.94% | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Cost Sharing Proposal Adjustment                                                        | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Reinsurance Incorporating Catastrophic and Transplant Data Adjustment                   | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Hospital Inpatient DRI Trend Update Adjustment - (4.0% estimate changed to 3.8% actual) | -0.10% | -0.02% | -0.05% | -0.03% | -0.05% | -0.02% | -0.04% | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Fee-for-Service Schedule Change (Referral Physician and Lab & X-Ray COS)            | -0.17% | -0.06% | -0.16% | -0.30% | -0.41% | -0.09% | -0.38% | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Premium Tax Implementation Adjustment                                                   | 2.04% | 2.04% | 2.04% | 2.04% | 2.04% | 2.04% | 2.04% | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Adjustment Impacting Base PMPM 2                                                  | **3.25%** | **4.80%** | **5.11%** | **5.47%** | **4.77%** | **3.97%** | **4.60%** | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** |
| Adjusted Awarded PMPM for Plans Electing the $20k Reinsurance Deductible                | $737.97 | $39.66 | $151.00 | $122.40 | $281.97 | $38.50 | $86.12 | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Impact of Electing the $50k Reinsurance Deductible                                      | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Adjusted Awarded PMPM for Plans Electing the $50k Reinsurance Deductible                | **$737.97** | **$39.66** | **$151.00** | **$122.40** | **$281.97** | **$38.50** | **$86.12** | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** |
| 1. The KidsCare age cohort includes individuals 14 to 18 years of age, while the TANF rate cell includes 14 - 44.                                                                                                                                                                                                                                                                       |  |  |  |  |  |  |  |  |  |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|--|--|--|--|--|
| 2. The adjustment is multiplicative, not additive.                                                                                                                                                                                                                                                                                                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| 3. The Maternity Delivery Payment does not have a reinsurance component built directly into the rate. However, it is indirectly affected by choosing a different deductible     level because the TANF 14-44 female rate is applied as an 8-month offset to the Maternity Delivery Payment, and the female rate is directly affected by a new reinsurance election. |  |  |  |  |  |
| **Final Awarded Rate - CYE04 Phoenix Health Plan: GSA 8 (Effective 10/01/03)**          |
|-----------------------------------------------------------------------------------------|
| **PMPM CHANGE DUE TO PROGRAMMATIC ADJUSTMENTS**                                         |
| **PMPMs & PROGRAMMATIC ADJUSTMENTS**                                                | **TANF & KC <1 M&F** | **TANF & KC 1-13 M&F** | **TANF & KC 14 - 44 F 1** | **TANF & KC 14 - 44 M 1** | **TANF 45+ M&F** | **SSI w/ Medicare** | **SSI w/o Medicare** | **Extended Family Planning Services** | **Maternity Delivery Payment** | **AIDS / HIV Supplemental Payment** | **Non-MED Prior Period Coverage** | **Non-MED Prospective** | **MED Prior Period Coverage** | **MED Prospective** | **MED Hospitalized Supplemental** |
| Originally Awarded PMPM                                                                 | **$362.11** | **$89.55** | **$156.04** | **$107.93** | **$307.78** | **$230.10** | **$463.50** | **$14.38** | **$5,617.75** | **$740.35** | **$531.41** | **$387.36** | **$1,521.38** | **$738.34** | **$9,108.27** |
| Outpatient & Emergency Room Adjustment                                              | $5.29 | $2.49 | $5.03 | $4.00 | $9.68 | $4.61 | $13.60 | $0.00 | ($40.74) | $0.00 | $14.71 | $10.72 | $40.31 | $19.56 | $126.36 |
| Cost Sharing Proposal Adjustment                                                        | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | ($17.56) | $0.00 | ($38.56) | $0.00 |
| Reinsurance Incorporating Catastrophic and Transplant Data Adjustment                   | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Hospital Inpatient DRI Trend Update Adjustment - (4.0% estimate changed to 3.8% actual) | ($0.38) | ($0.02) | ($0.08) | ($0.04) | ($0.15) | ($0.04) | ($0.19) | ($0.00) | ($5.29) | $0.00 | ($0.31) | ($0.21) | ($0.91) | ($0.42) | ($21.01) |
| Fee-for-Service Schedule Change   (Referral Physician and Lab & X-Ray COS)     | ($0.62) | ($0.06) | ($0.26) | ($0.34) | ($1.31) | ($0.21) | ($1.81) | $0.00 | $1.99 | $0.00 | ($2.07) | ($1.45) | ($7.65) | ($3.52) | ($45.15) |
| Premium Tax Implementation Adjustment                                                   | $7.48 | $1.88 | $3.28 | $2.28 | $6.45 | $4.78 | $9.70 | $0.29 | $113.75 | $15.11 | $11.10 | $7.73 | $31.70 | $14.60 | $187.11 |
| Total Adjustment Impacting Base PMPM                                                    | **$11.77** | **$4.30** | **$7.97** | **$5.91** | **$14.67** | **$9.14** | **$21.30** | **$0.29** | **$69.71** | **$15.11** | **$23.42** | **($0.77)** | **$63.45** | **($8.34)** | **$247.32** |
| Adjusted Awarded PMPM for Plans Electing the $20k Reinsurance Deductible                | $373.88 | $93.85 | $164.01 | $113.84 | $322.45 | $239.24 | $484.80 | $14.67 | $5,687.46 | $755.46 | $554.83 | $386.59 | $1,584.83 | $730.00 | $9,355.58 |
| Impact of Electing the $50k Reinsurance Deductible 2                                    | $22.72 | $0.52 | $2.14 | $1.59 | $2.79 | $0.49 | $16.81 | $0.00 | ($17.16) | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Premium Tax Adjustment of Electing the $50k Reinsurance Deductible 3                    | $0.46 | $0.01 | $0.04 | $0.03 | $0.06 | $0.01 | $0.34 | $0.00 | ($0.35) | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Adjusted Awarded PMPM for Plans Electing the $50k Reinsurance Deductible                | **$397.06** | **$94.37** | **$166.19** | **$115.46** | **$325.30** | **$239.74** | **$501.95** | **$14.67** | **$5,669.95** | **$755.46** | **$554.83** | **$386.59** | **$1,584.83** | **$730.00** | **$9,355.58** |
| **PMPM CHANGE DUE TO PROGRAMMATIC ADJUSTMENTS**                                         |
|-----------------------------------------------------------------------------------------|
| **PMPMs & PROGRAMMATIC ADJUSTMENTS**                                                | **PPC Rural TANF & KC <1 M&F** | **PPC Rural TANF & KC 1-13 M&F** | **PPC Rural TANF & KC 14 - 44 F 1** | **PPC Rural TANF & KC 14 - 44 M 1** | **PPC Rural TANF 45+ M&F** | **PPC Rural SSI w/ Medicare** | **PPC Rural SSI w/o Medicare** | **PPC Urban TANF & KC <1 M&F** | **PPC Urban TANF & KC 1-13 M&F** | **PPC Urban TANF & KC 14 - 44 F 1** | **PPC Urban TANF & KC 14 - 44 M 1** | **PPC Urban TANF 45+ M&F** | **PPC Urban SSI w/ Medicare** | **PPC Urban SSI w/o Medicare** |
| Originally Awarded PMPM                                                                 | **$714.74** | **$37.84** | **$143.67** | **$116.05** | **$269.14** | **$37.03** | **$82.34** | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** |
| Outpatient & Emergency Room Adjustment                                              | $10.44 | $1.05 | $4.63 | $4.30 | $8.46 | $0.74 | $2.42 | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Cost Sharing Proposal Adjustment                                                        | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Reinsurance Incorporating Catastrophic and Transplant Data Adjustment                   | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Hospital Inpatient DRI Trend Update Adjustment - (4.0% estimate changed to 3.8% actual) | ($0.75) | ($0.01) | ($0.07) | ($0.04) | ($0.13) | ($0.01) | ($0.03) | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Fee-for-Service Schedule Change (Referral Physician and Lab & X-Ray COS)            | ($1.23) | ($0.02) | ($0.24) | ($0.36) | ($1.15) | ($0.03) | ($0.32) | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Premium Tax Implementation Adjustment                                                   | $14.76 | $0.79 | $3.02 | $2.45 | $5.64 | $0.77 | $1.72 | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Adjustment Impacting Base PMPM                                                    | **$23.23** | **$1.82** | **$7.33** | **$6.35** | **$12.83** | **$1.47** | **$3.78** | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** |
| Adjusted Awarded PMPM for Plans Electing the $20k Reinsurance Deductible                | $737.97 | $39.66 | $151.00 | $122.40 | $281.97 | $38.50 | $86.12 | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Impact of Electing the $50k Reinsurance Deductible                                      | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Adjusted Awarded PMPM for Plans Electing the $50k Reinsurance Deductible                | **$737.97** | **$39.66** | **$151.00** | **$122.40** | **$281.97** | **$38.50** | **$86.12** | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** |
| 1. The KidsCare age cohort covers individuals 14 - 18 years of age while the TANF rate cell includes 14 – 44.                                                                                                                                                                                                                                                                     |  |  |  |  |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| 2. The Maternity Delivery Payment does not have a reinsurance component built directly into the rate. However, it is indirectly affected by choosing a different deductible     level because the TANF 14-44 female rate is applied as an 8-month offset to the Maternity Delivery Payment, and the female rate is directly affected by a new reinsurance election. |
| **Final Awarded Rate – CYE04 Phoenix Health Plan: GSA 12 (Effective 10/01/03)**  |
|----------------------------------------------------------------------------------------|
| **PERCENT CHANGE DUE TO PROGRAMMATIC ADJUSTMENTS**                                     |
| **PMPMs & PROGRAMMATIC ADJUSTMENTS**                                               | **TANF & KC <1 M&F** | **TANF & KC 1-13 M&F** | **TANF & KC 14 - 44 F 1** | **TANF & KC 14 - 44 M 1** | **TANF 45+ M&F** | **SSI w/ Medicare** | **SSI w/o Medicare** | **Extended Family Planning Services** | **Maternity Delivery Payment** | **AIDS / HIV Supplemental Payment** | **Non-MED Prior Period Coverage** | **Non-MED Prospective** | **MED Prior Period Coverage** | **MED Prospective** | **MED Hospitalized Supplemental** |
| Originally Awarded PMPM                                                                | **$352.43** | **$88.86** | **$151.56** | **$108.07** | **$318.52** | **$222.78** | **$454.21** | **$15.46** | **$5,599.72** | **$740.35** | **$516.02** | **$405.62** | **$1,509.89** | **$742.57** | **$9,000.32** |
| Outpatient & Emergency Room Adjustment                                             | 1.46% | 2.79% | 3.22% | 3.71% | 3.14% | 2.00% | 2.94% | 0.00% | -0.73% | 0.00% | 2.77% | 2.77% | 2.65% | 2.65% | 1.39% |
| Cost Sharing Proposal Adjustment                                                       | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | -4.41% | 0.00% | -5.09% | 0.00% |
| Reinsurance Incorporating Catastrophic and Transplant Data Adjustment                  | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Hospital Inpatient DRI Trend Update Adjustment- (4.0% estimate changed to 3.8% actual) | -0.10% | -0.02% | -0.05% | -0.03% | -0.05% | -0.02% | -0.04% | -0.02% | -0.09% | 0.00% | -0.06% | -0.06% | -0.06% | -0.06% | -0.23% |
| Fee-for-Service Schedule Change (Referral Physician and Lab & X-Ray COS)           | -0.17% | -0.06% | -0.16% | -0.30% | -0.41% | -0.09% | -0.38% | 0.00% | 0.04% | 0.00% | -0.38% | -0.38% | -0.49% | -0.49% | -0.49% |
| Premium Tax Implementation Adjustment                                                  | 2.04% | 2.04% | 2.04% | 2.04% | 2.04% | 2.04% | 2.04% | 2.04% | 2.04% | 2.04% | 2.04% | 2.04% | 2.04% | 2.04% | 2.04% |
| Total Adjustment Impacting Base PMPM 2                                                 | **3.25%** | **4.80%** | **5.11%** | **5.47%** | **4.77%** | **3.97%** | **4.60%** | **2.02%** | **1.24%** | **2.04%** | **4.41%** | **-0.20%** | **4.17%** | **-1.13%** | **2.72%** |
| Adjusted Awarded PMPM for Plans Electing the $20k Reinsurance Deductible               | $363.88 | $93.13 | $159.30 | $113.99 | $333.70 | $231.63 | $475.09 | $15.77 | $5,669.20 | $755.46 | $538.76 | $404.81 | $1,572.86 | $734.18 | $9,244.71 |
| Impact of Electing the $50k Reinsurance Deductible 3                                   | 6.14% | 0.54% | 1.32% | 1.36% | 0.82% | 0.21% | 3.47% | 0.00% | -0.30% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Premium Tax Adjustment of Electing the $50k Reinsurance Deductible 3                   | 2.04% | 2.04% | 2.04% | 2.04% | 2.04% | 2.04% | 2.04% | 0.00% | 2.04% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Adjusted Awarded PMPM for Plans Electing the $50k Reinsurance Deductible               | **$386.68** | **$93.64** | **$161.44** | **$115.57** | **$336.49** | **$232.12** | **$491.93** | **$15.77** | **$5,652.03** | **$755.46** | **$538.76** | **$404.81** | **$1,572.86** | **$734.18** | **$9,244.71** |
| **PERCENT CHANGE DUE TO PROGRAMMATIC ADJUSTMENTS**                                      |
|-----------------------------------------------------------------------------------------|
| **PMPMs & PROGRAMMATIC ADJUSTMENTS**                                                | **PPC Rural TANF & KC <1 M&F** | **PPC Rural TANF & KC 1-13 M&F** | **PPC Rural TANF & KC 14 - 44 F 1** | **PPC Rural TANF & KC 14 - 44 M 1** | **PPC Rural TANF 45+ M&F** | **PPC Rural SSI w/ Medicare** | **PPC Rural SSI w/o Medicare** | **PPC Urban TANF & KC <1 M&F** | **PPC Urban TANF & KC 1-13 M&F** | **PPC Urban TANF & KC 14 - 44 F 1** | **PPC Urban TANF & KC 14 – 44 M 1** | **PPC Urban TANF 45+ M&F** | **PPC Urban SSI w/ Medicare** | **PPC Urban SSI w/o Medicare** |
| Originally Awarded PMPM                                                                 | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** | **$1,158.74** | **$37.84** | **$149.42** | **$120.69** | **$279.90** | **$29.06** | **$77.68** |
| Outpatient & Emergency Room Adjustment                                              | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 1.46% | 2.79% | 3.22% | 3.71% | 3.14% | 2.00% | 2.94% |
| Cost Sharing Proposal Adjustment                                                        | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Reinsurance Incorporating Catastrophic and Transplant Data Adjustment                   | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Hospital Inpatient DRI Trend Update Adjustment - (4.0% estimate changed to 3.8% actual) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | -0.10% | -0.02% | -0.05% | -0.03% | -0.05% | -0.02% | -0.04% |
| Fee-for-Service Schedule Change (Referral Physician and Lab & X-Ray COS)            | N/A | N/A | N/A | N/A | N/A | N/A | N/A | -0.17% | -0.06% | -0.16% | -0.30% | -0.41% | -0.09% | -0.38% |
| Premium Tax Implementation Adjustment                                                   | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 2.04% | 2.04% | 2.04% | 2.04% | 2.04% | 2.04% | 2.04% |
| Total Adjustment Impacting Base PMPM 2                                                  | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** | **3.25%** | **4.80%** | **5.11%** | **5.47%** | **4.77%** | **3.97%** | **4.60%** |
| Adjusted Awarded PMPM for Plans Electing the $20k Reinsurance Deductible                | N/A | N/A | N/A | N/A | N/A | N/A | N/A | $1,196.40 | $39.66 | $157.05 | $127.30 | $293.24 | $30.21 | $81.25 |
| Impact of Electing the $50k Reinsurance Deductible                                      | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Adjusted Awarded PMPM for Plans Electing the $50k Reinsurance Deductible                | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** | **$1,196.40** | **$39.66** | **$157.05** | **$127.30** | **$293.24** | **$30.21** | **$81.25** |
| 1. The KidsCare age cohort includes individuals 14 to 18 years of age, while the TANF rate cell includes 14 - 44.                                                                                                                                                                                                                                                                       |  |  |  |  |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| 2. The adjustment is multiplicative, not additive.                                                                                                                                                                                                                                                                                                                                      |  |  |  |  |  |  |  |  |  |
| 3. The Maternity Delivery Payment does not have a reinsurance component built directly into the rate. However, it is indirectly affected by choosing a different deductible     level because the TANF 14-44 female rate is applied as an 8-month offset to the Maternity Delivery Payment, and the female rate is directly affected by a new reinsurance election. |
| **Final Awarded Rate- CYE04 Phoenix Health Plan: GSA 12 (EFFECTIVE 10/01/03)**          |
|-----------------------------------------------------------------------------------------|
| **PMPM CHANGE DUE TO PROGRAMMATIC ADJUSTMENTS**                                         |
| **PMPMs & PROGRAMMATIC ADJUSTMENTS**                                                | **TANF & KC <1 M&F** | **TANF & KC 1-13 M&F** | **TANF & KC 14 - 44 F 1** | **TANF & KC 14 - 44 M 1** | **TANF 45+ M&F** | **SSI w/ Medicare** | **SSI w/o Medicare** | **Extended Family Planning Services** | **Maternity Delivery Payment** | **AIDS / HIV Supplemental Payment** | **Non-MED Prior Period Coverage** | **Non-MED Prospective** | **MED Prior Period Coverage** | **MED Prospective** | **MED Hospitalized Supplemental** |
| Originally Awarded PMPM                                                                 | **$352.43** | **$88.86** | **$151.56** | **$108.07** | **$318.52** | **$222.78** | **$454.21** | **$15.46** | **$5,599.72** | **$740.35** | **$516.02** | **$405.62** | **$1,509.89** | **$742.57** | **$9,000.32** |
| Outpatient & Emergency Room Adjustment                                              | $5.15 | $2.48 | $4.88 | $4.01 | $10.01 | $4.47 | $13.33 | $0.00 | ($40.61) | $0.00 | $14.28 | $11.23 | $40.00 | $19.67 | $124.86 |
| Cost Sharing Proposal Adjustment                                                        | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | ($18.39) | $0.00 | ($38.78) | $0.00 |
| Reinsurance Incorporating Catastrophic and Transplant Data Adjustment                   | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Hospital Inpatient DRI Trend Update Adjustment - (4.0% estimate changed to 3.8% actual) | ($0.37) | ($0.02) | ($0.07) | ($0.04) | ($0.15) | ($0.04) | ($0.18) | ($0.00) | ($5.27) | $0.00 | ($0.30) | ($0.22) | ($0.90) | ($0.42) | ($20.76) |
| Fee-for-Service Schedule Change (Referral Physician and Lab & X-Ray COS)            | ($0.61) | ($0.06) | ($0.26) | ($0.34) | ($1.36) | ($0.21) | ($1.77) | $0.00 | $1.98 | $0.00 | ($2.01) | ($1.51) | ($7.59) | ($3.54) | ($44.61) |
| Premium Tax Implementation Adjustment                                                   | $7.28 | $1.86 | $3.19 | $2.28 | $6.67 | $4.63 | $9.50 | $0.32 | $113.38 | $15.11 | $10.78 | $8.10 | $31.46 | $14.68 | $184.89 |
| Total Adjustment Impacting Base PMPM                                                    | **$11.45** | **$4.27** | **$7.74** | **$5.92** | **$15.18** | **$8.85** | **$20.88** | **$0.31** | **$69.48** | **$15.11** | **$22.74** | **($0.81)** | **$62.97** | **($8.38)** | **$244.39** |
| Adjusted Awarded PMPM for Plans Electing the $20k Reinsurance Deductible                | $363.88 | $93.13 | $159.30 | $113.99 | $333.70 | $231.63 | $475.09 | $15.77 | $5,669.20 | $755.46 | $538.76 | $404.81 | $1,572.86 | $734.18 | $9,244.71 |
| Impact of Electing the $50k Reinsurance Deductible 2                                    | $22.34 | $0.51 | $2.10 | $1.55 | $2.74 | $0.48 | $16.50 | $0.00 | ($16.83) | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Premium Tax Adjustment of Electing the $50k Reinsurance Deductible 3                    | $0.46 | $0.01 | $0.04 | $0.03 | $0.06 | $0.01 | $0.34 | $0.00 | ($0.34) | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Adjusted Awarded PMPM for Plans Electing the $50k Reinsurance Deductible                | **$386.68** | **$93.64** | **$161.44** | **$115.57** | **$336.49** | **$232.12** | **$491.93** | **$15.77** | **$5,652.03** | **$755.46** | **$538.76** | **$404.81** | **$1,572.86** | **$734.18** | **$9,244.71** |
| **PMPM CHANGE DUE TO PROGRAMMATIC ADJUSTMENTS**                                         |
|-----------------------------------------------------------------------------------------|
| PMPMs & PROGRAMMATIC ADJUSTMENTS                                                    | **PPC Rural TANF & KC <1 M&F** | **PPC Rural TANF & KC 1-13 M&F** | **PPC Rural TANF & KC 14 -   44 F 1** | **PPC Rural TANF & KC 14 - 44 M 1** | **PPC Rural TANF 45+ M&F** | **PPC Rural SSI w/ Medicare** | **PPC Rural SSI w/o Medicare** | **PPC Urban TANF & KC <1 M&F** | **PPC Urban TANF & KC 1-13 M&F** | **PPC Urban TANF & KC 14 -   44 F 1** | **PPC Urban TANF & KC 14 -   44 M 1** | **PPC Urban TANF 45+ M&F** | **PPC Urban SSI w/ Medicare** | **PPC Urban SSI w/o Medicare** |
| Originally Awarded PMPM                                                                 | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** | **$1,158.74** | **$37.84** | **$149.42** | **$120.69** | **$279.90** | **$29.06** | **$77.68** |
| Outpatient & Emergency Room Adjustment                                              | N/A | N/A | N/A | N/A | N/A | N/A | N/A | $16.93 | $1.05 | $4.81 | $4.48 | $8.80 | $0.58 | $2.28 |
| Cost Sharing Proposal Adjustment                                                        | N/A | N/A | N/A | N/A | N/A | N/A | N/A | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Reinsurance Incorporating Catastrophic and Transplant Data Adjustment                   | N/A | N/A | N/A | N/A | N/A | N/A | N/A | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Hospital Inpatient DRI Trend Update Adjustment - (4.0% estimate changed to 3.8% actual) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ($1.21) | ($0.01) | ($0.07) | ($0.04) | ($0.13) | ($0.01) | ($0.03) |
| Fee-for-Service Schedule Change (Referral Physician and Lab & X-Ray COS)            | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ($1.99) | ($0.02) | ($0.25) | ($0.37) | ($1.19) | ($0.03) | ($0.30) |
| Premium Tax Implementation Adjustment                                                   | N/A | N/A | N/A | N/A | N/A | N/A | N/A | $23.93 | $0.79 | $3.14 | $2.55 | $5.86 | $0.60 | $1.63 |
| Total Adjustment Impacting Base PMPM                                                    | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** | **$37.66** | **$1.82** | **$7.63** | **$6.61** | **$13.34** | **$1.15** | **$3.57** |
| Adjusted Awarded PMPM for Plans Electing the $20k Reinsurance Deductible                | N/A | N/A | N/A | N/A | N/A | N/A | N/A | $1,196.40 | $39.66 | $157.05 | $127.30 | $293.24 | $30.21 | $81.25 |
| Impact of Electing the $50k Reinsurance Deductible                                      | N/A | N/A | N/A | N/A | N/A | N/A | N/A | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Adjusted Awarded PMPM for Plans Electing the $50k Reinsurance Deductible                | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** | **$1,196.40** | **$39.66** | **$157.05** | **$127.30** | **$293.24** | **$30.21** | **$81.25** |
| 1. The KidsCare age cohort covers individuals 14 - 18 years of age while the TANF rate cell includes 14 - 44.                                                                                                                                                                                                                                                                           |  |  |  |  |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| 2. The Maternity Delivery Payment does not have a reinsurance component built directly into the rate. However, it is indirectly affected by choosing a different deductible     level because the TANF 14-44 female rate is applied as an 8-month offset to the Maternity Delivery Payment, and the female rate is directly affected by a new reinsurance election. |
| **Arizona Health Care Cost Containment System HIFA Capitation Rates CYE ‘04 Effective 10/1/03** |
|-------------------------------------------------------------------------------------------------------|
| Phoenix Health Plan                                                                                   | ** ** | ** ** | ** ** | ** ** |
| ** **                                                                                            |   |   |   |   |
| **HIFA Parent Rates**                                                                                 |  |  |  |  |
| ** **                                                                                            | ** ** | ** ** | ** ** | ** ** |
| **GSA**                                                                                               |  | **14-44F** | **14-44M** | **45+** |
| 2                                                                                                     | Yuma, La Paz |  |  |  |
| 4                                                                                                     | Mohave, Coconino, Apache, Navajo |  |  |  |
| 6                                                                                                     | Yavapai |  |  |  |
| 8                                                                                                     | Pinal, Gila | $182.60 | $126.84 | $357.54 |
| 10                                                                                                    | Pima, Santa Cruz |  |  |  |
| 12                                                                                                    | Maricopa | $177.38 | $126.98 | $369.86 |
| 14                                                                                                    | Graham, Greenlee, Cochise |  |  |  |