Exhibit
10.117


 


1998


 


FHS


 


PARTICIPATING PHYSICIAN GROUP


PROVIDER SERVICES AGREEMENT


 


PROSPECT MEDICAL GROUP


 


PRODUCTS


INCORPORATED


WITHIN:


A) STANDARD HMO


B) SMALL GROUP HMO


C) INDIVIDUAL HMO


D) A.I.M.


E) MEDICARE SUPPLEMENT


F) COMMERCIAL P.O.S.


G) MEDICARE


H) MEDICARE P.O.S.


I) P.P.O.


J) E.O.P.


K) CHAMPUS


L) WORKMENS COMP


 


 












*** Confidential Information omitted and filed separately with the
Securities and Exchange Commission.


 

















 


TABLE OF CONTENTS:


 


	
  RECITALS

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DEFINITIONS

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REPRESENTATIONS AND
  DUTIES OF PPG

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DUTIES OF FHS

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  COMPENSATION

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DELEGATION

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TERM
  AND TERMINATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  RECORDS,
  AUDITS AND REGULATORY REQUIREMENTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GENERAL
  PROVISIONS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ADDENDUM A

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Benefit
  Programs

  Affiliates

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ADDENDUM B COMMERCIAL HMO
  AND POS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  A.

  	
  General Reimbursement
  Provisions

  	
   

  	
   

  
	
   

  	
  B.

  	
  Standard HMO

  	
   

  	
   

  
	
   

  	
  C.

  	
  Small GroupHMO

  	
   

  	
   

  
	
   

  	
  D.

  	
  Individual HMO

  	
   

  	
   

  
	
   

  	
  E.

  	
  Access for
  Infants and Mothers

  	
   

  	
   

  
	
   

  	
  F.

  	
  Medicare
  Supplement

  	
   

  	
   

  
	
   

  	
  G.

  	
  Commercial POS

  	
   

  	
   

  
	
   

  	
  H.

  	
  Partnership
  Bonus

  	
   

  	
   

  
	
   

  	
  I.

  	
  QCIP

  	
   

  	
   

  
	
   

  	
  J.

  	
  Pharmacy Shared Risk
  Program

  	
   

  	
   

  
	
   

  	
  K.

  	
  Pharmacy
  Rebate Program

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ADDENDUM B.1

  	
  AGE, SEX AND BENEFIT
  PLAN FACTORS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ADDENDUM B.2

  	
  COMMERCIAL HMO and POS
  DIVISION OF FINANCIAL

  RESPONSIBILITY MATRIX

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ADDENDUM C

  	
  MEDICARE HMO AND POS

  	
   

  	
   

  
	
   

  	
  A.

  	
  Definitions

  	
   

  	
   

  
	
   

  	
  B.

  	
  Medicare HMO Benefit
  Program

  	
   

  	
   

  
	
   

  	
  C.

  	
  Medicare POS Benefit
  Program

  	
   

  	
   

  
	
   

  	
  D.

  	
  Administration
  Of Shared Risk Budgets For HMO and POS

  	
   

  	
   

  
	
   

  	
  E.

  	
  Other Services

  	
   

  	
   

  
						



 


ii

















 


	
  ADDENDUM C.1

  	
  SUPPLEMENTAL BENEFITS
  COSTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ADDENDUM C.2

  	
  PHARMACY SHARED RISK
  BUDGETS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ADDENDUM C.3

  	
  MEDICARE DIVISION OF
  FINANCIAL RESPONSIBILITY MATRIX

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ADDENDUM D

  	
  PPO, EPO AND POS

  	
   

  	
   

  
	
   

  	
  A.

  	
  Benefit Program
  Requirements

  	
   

  	
   

  
	
   

  	
  B.

  	
  PPO And EPO Benefit
  Programs

  	
   

  	
   

  
	
   

  	
  C.

  	
  POS Benefit Programs

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ADDENDUM E

  	
  FEE FOR SERVICE
  COMPENSATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ADDENDUM F

  	
  MEDI-CAL BENEFIT PROGRAM

  	
   

  	
   

  
	
   

  	
  A.

  	
  Definitions

  	
   

  	
   

  
	
   

  	
  B.

  	
  Compensation
  Provisions

  	
   

  	
   

  
	
   

  	
  C.

  	
  General
  Provisions

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ADDENDUM F.1

  	
  FEE-FOR-SERVICE
  COMPENSATION SCHEDULE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ADDENDUM F.2

  	
  CAPITATION
  COMPENSATION SCHEDULE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ADDENDUM F.3

  	
  SHARED RISK PROGRAM
  DISTRIBUTION MATRIX

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ADDENDUM F.4

  	
  DIVISION OF FINANCIAL
  RESPONSIBILITY

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ADDENDUM F.5

  	
  DISCLOSURE FORM

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ADDENDUM G

  	
  CHAMPUS/TRICARE

  	
   

  	
   

  
	
   

  	
  A.

  	
  Definitions

  	
   

  	
   

  
	
   

  	
  B.

  	
  Programs And
  Regulations

  	
   

  	
   

  
	
   

  	
  C.

  	
  Other Governmental Programs

  	
   

  	
   

  
	
   

  	
  D.

  	
  Provider
  Obligations

  	
   

  	
   

  
	
   

  	
  E.

  	
  CHAMPUS
  PRIME and EXTRA Benefit Programs

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ADDENDUM H

  	
  WORKERS COMPENSATION

  	
   

  	
   

  
	
   

  	
  A.

  	
  Compensation

  	
   

  	
   

  
	
   

  	
  B.

  	
  Other Duties

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ADDENDUM H.1

  	
  WORKERS’ COMPENSATION
  RATE SCHEDULE

  	
   

  	
   

  



 


iii

















 


PARTICIPATING PHYSICIAN GROUP

PROVIDER SERVICES AGREEMENT


 


This
Participating Physician Group Provider Services Agreement (“Agreement”) is made
and entered into by and between the Foundation Health Systems Affiliate(s)
(“FHS”) identified in Addendum A to this Agreement and Prospect Medical
Group. Inc., a Participating Physician Group (“PPG”), to be effective January
1, 1998.


 


RECITALS


 


A.            PPG is a medical group or individual
practice association that provides or arranges for the provision of
professional health care services, supplies, products or related services.


 


B.            FHS is one or more corporations that
have the legal authority to enter into this Agreement, and to perform the
obligations of FHS hereunder with respect to the Benefit Programs identified on
Addendum A.


 


C.            FHS desires to enter into this
Agreement to arrange for PPG to render Contracted Services to Members of the
various Benefit Programs identified on Addendum A.


 


D.            PPG desires to enter into this
Agreement to render Contracted Services to Members of the various Benefit
Programs identified on Addendum A.


 


AGREEMENT


 


NOW,
THEREFORE, in consideration of the above recitals and the covenants contained
herein, the parties hereby agree as follows:


 


I.             DEFINITIONS


 


Many
words and terms are capitalized throughout this Agreement to indicate that they
are defined as set forth in this Article I.


 


1.1            Affiliate.  An
entity in which Foundation Health Systems, Inc., a Delaware corporation, owns
51% or more of the voting stock, or which is managed by FHS or a FHS
subsidiary.  The Affiliates provide,
arrange for, or administer one or more Benefit Programs covered under this
Agreement.


 


1.2            Benefit
Program.  FHS’ obligation to pay for, provide, arrange
or administer Covered Services, provider networks, administrative or other
related services pursuant to a written agreement between an employer or other
entity or an individual and FHS.  The
Benefit Programs covered under this Agreement are listed on Addendum A.


 


1.3            Capitation.  The
compensation paid per Member per month (“PMPM”) for each HMO Member who has
selected or been assigned to PPG.


 


1.4            Commercial
HMO Member.  An HMO Member whose premium is fully paid
and enrolled in a commercial Benefit Program, including 1) a Benefit Program
offered to an employer other than a small group employer (“Standard HMO
Member”), 2) a Benefit Program offered to a small group employer as defined in
Section 1357(1) of the California Health and Safety Code (“Small Group HMO
Member”), 3) a Benefit Program offered to individuals (“Individual HMO
Member”), 4) a Benefit Program offered to an individual participating in


 


1

















 


the Access for Infants and
Mothers Program (“AIM Member”), 5) a Benefit Program which is fully or
partially self-funded (“Flexible Funded HMO Member”), or 6) a Benefit Program
offered to Members with primary coverage through Medicare and health care
coverage under an HMO or POS Plan (“Medicare Supplement Member”).


 


1.5            Contracted
Services.  Those Medically Necessary Covered Services
to be rendered by PPG to a Member in accordance with this Agreement.


 


1.6             Coordination
of Benefits.  The allocation of financial responsibility
between two or more payors of health care services, each with a legal duty to
pay for or provide Covered Services to a Member at the same lime.


 


1.7             Copayment.
 That portion of the cost of Covered Services
that a Member is obligated to pay under a particular Benefit Program, including
deductibles and coinsurance.


 


1.8             Coverage
Certificate or Certificate.  The document which describes
the benefits available to a Member in connection with a Benefit Program.


 


1.9             Covered
Services.  The health care services, products, supplies
or related services that are covered under an applicable Benefit Program.


 


1.10          Emergency.  A medical condition manifesting itself by acute symptoms of sufficient
severity such that a prudent layperson who possesses average knowledge of
health and medicine, could reasonably expect the absence of immediate medical
attention to result in:  (i) placing the
individual in serious jeopardy (and in the case of a pregnant woman, her health
or that of her unborn child); (ii) serious impairment to bodily functions; or
(iii) serious dysfunction of any bodily organ or part.  FHS shall have the final authority in
decisions regarding emergencies and emergency services.


 


1.11          HMO
Member.  A person who is eligible to receive Covered
Services under those Benefit Programs offered by an Affiliate which is a health
care service plan licensed under the Knox Keene Act, and whose premium has been
fully paid. An HMO Member shall be a person enrolled in a Medicare Benefit
Program as set forth in Addendum C (“Medicare HMO Member”), a person enrolled
in a Medicaid Benefit Program as set forth in Addendum F (“Medi-Cal HMO
Member”) or a person enrolled in a commercial Benefit Program as set forth in
Addendum B (“Commercial HMO Member”).


 


1.12          Insured
Services.  Contracted Services that are arranged or
provided and paid for by PPG but which are reimbursable by HMO in addition to
the Capitation paid.  Such Insured
Services are set forth in the applicable Addendum.


 


1.13          Interim
Period.  The six-month period, January 1st
through June 30th, used for the purpose of calculating an interim
settlement.


 


1.14          Medically
Necessary.  Those Covered Services which, under the
provision of this Agreement, are determined to be:


 


(a)           Appropriate and necessary for the
symptoms, diagnosis or treatment of a condition, illness or injury; and


 


(b)           Provided for the diagnosis or the
direct care and treatment of a medical condition, illness or injury; and


 


2

















 


(c)           Within the standards of good medical
practice within the organized medical community; and


 


(d)           Not primarily for the convenience of
the Member, or the Member’s physician or other Provider; and


 


(e)           The most appropriate supply or level
of service, including levels of acute care such as intensive care unit services
or regular acute medical and surgical services as determined by the clinical
status of the Member, which can safely be provided to the Member. For
hospitalization, this means that the Member requires acute care as an inpatient
due to the nature of the services the Member is receiving, or the severity of
the Member’s condition, and that safe and adequate care cannot be received as
an outpatient or at a less intensified medical setting such as a sub-acute unit
or skilled nursing facility.


 


Notwithstanding the above, Medically Necessary services for HMO Members
shall not differ from that defined in the Evidence of Coverage document
approved by the Department of Corporation.


 


1.15          Member. 
(Beneficiary) A person who is eligible to receive Covered Services under
a Benefit Program included in this Agreement by virtue of completing the
required enrollment process and whose premium has been fully paid. Member shall
include HMO Member.


 


1.16          Member
Physician.  A physician who practices medicine in the
capacity of a shareholder, partner, employee, subcontractor, locum tenens or
associate of PPG.


 


1.17          Operations
Manual.  All Operations Manuals, including medical
policy manuals, issued by FHS, as updated from time to time, which are
incorporated in this Agreement by this reference.  In the event that any provision in an Operations Manual or any
updates thereto are clearly inconsistent with the terms of this Agreement as
amended, the terms of this Agreement shall prevail.


 


1.18          Participating
Provider.  A hospital, physician, physician
organization, Participating Physician Group, Member Physician, other health
care practitioner or other organization which has a direct or indirect
contractual relationship with FHS or another Participating Provider to provide
Covered Services to Members.  In the
event PPG contracts with a health care provider to render Covered Services
under this Agreement, such provider is a Participating Provider.


 


1.19          Payor.  A
public or private entity contracted with FHS which funds, insures or is
responsible for paying Participating Providers for Covered Services rendered to
Members pursuant to the terms of this Agreement and as  stipulated on the Member’s identification
card.


 


1.20          Pharmacy
Budget.  The amount allocated per eligible Member per
month (“PEMPM”) for the cost of contracted pharmaceutical benefits established
by FHS as set forth in the applicable Addendum.


 


1.21          PPG
Capitated Services.  Contracted Services as described in an
Addendum to this Agreement for which PPG has accepted Capitation under the
applicable Benefit Programs to which the Addendum applies.


 


1.22          Preventive
Care.  Preventive Care is care which attempts to
remove or reduce disease risk factors and promotes early detection of disease
or precursor states.


 


1.23          Primary
Care Physician (PCP).  A Member Physician who is
responsible for providing and/or coordinating the delivery of Covered Services
to an HMO Member pursuant to the applicable Benefit Program. Primary Care
Physicians include general practitioners, family practitioners, internists,
pediatricians,


 


3

















 


obstetrician/gynecologists
and other specialists, if approved by FHS.


 


1.24          Prior
Authorization.  The written approval by FHS, Payor, PPG, or
other permitted entity, prior to admitting a Member to a hospital or a skilled
nursing facility, or to providing certain other Covered Services to a Member,
which approval is required under the Utilization Management Program of the applicable
Benefit Program as  described in
the Operations Manual.


 


1.25          Quality
Improvement Program.  A program to meet FHS standards, approved by
FHS, and designed to assure the provision of quality medical services, as
described more fully in the Operations Manual.


 


1.26          Reconciliation
Period.  The 12-month period, January 1st
through December 31st, used for the purpose of calculating Shared
Risk and Pharmacy Budget surpluses or deficits.  The first Reconciliation Period shall be the period beginning on
the date that HMO  Members are
first assigned to PPG under this Agreement through December 31st of
that calendar year.


 


1.27          Service
Area.  The geographic area in the continental
United States within a 30-air mile radius of an HMO Member’s PCP’s office
location for the purpose of determining in-area versus out-of-area services for
such Member as set forth in the Operations Manual.


 


1.28          Shared
Risk Budget.  The amount allocated per Member per month
(“PMPM”) for the cost of Shared Risk Services established by FHS as set forth
in the applicable Addendum.


 


1.29          Shared
Risk Reinsurance.  The program through which the PPG’s risk for
Shared Risk Claims shall be limited per assigned HMO Member in a Reconciliation
Period.


 


1.30          Shared
Risk Claims.  Shared Risk Claims shall include all claims
for Shared Risk Services including amounts for out of area services as set
forth in the applicable Addendum minus those amounts in excess of the Shared
Risk Reinsurance threshold which are payable under such program as set forth in
the applicable Addendum and minus any amounts received from third parties,
including but not limited to, Coordination of Benefits, workers’ compensation
and Copayments.


 


1.31          Shared
Risk Services.  The Covered Services set forth in the
attached matrix under the heading “Shared Risk Services”.


 


1.32          State.  The
State of California.


 


1.33          Surcharge.  An
additional fee which is charged to a Member for a Covered Service, but which is
not approved by the applicable State and federal regulatory authority, and is
neither disclosed nor provided for in a Coverage Certificate.


 


1.34          Urgently
Needed Services.  Covered Services required in order to
prevent a serious deterioration of an HMO Member’s health that results from an
unforeseen illness or injury if (i) such Member is temporarily absent from the
Service Area and (ii) receipt of the health care service cannot be delayed
until the Member’s return to the Service Area.


 


1.35          Utilization/Care
Management Program.  A program that meets FHS’ standards and is
approved by FHS and designed to review and manage the utilization of Covered
Services, as described more fully in the Operations Manual.


 


4

















 


II.            REPRESENTATIONS AND DUTIES OF PPG


 


2.1          Representation
of PPG.


 


(a)           PPG warrants that it has the
authority to contract on behalf of its Member Physicians and to bind them to
all of the terms and provisions of this Agreement.  PPG will notify Member Physicians of their rights and duties
under this Agreement, and of all amendments and modifications thereto.


 


(b)           PPG shall provide FHS, upon request,
with its written applicable policies and procedures and its bylaws and articles
of incorporation and any modifications thereto.


 


(c)           PPG represents that the terms of this
Agreement do not conflict with the terms of its agreements with Participating
Providers. PPG further represents that the terms of this Agreement shall apply
in any situation where there is an inconsistency or conflict with the terms of
any agreement between the Participating Provider and PPG or with respect to any
matter which is not addressed in any such agreement between the Participating
Provider and PPG. PPG shall be responsible to FHS for any such inconsistency or
conflict in terms. This provision shall supersede any similar provision in any
agreement between PPG and a Participating Provider.


 


2.2          PPG
Network.  PPG shall
provide FHS with a list of the names, practice locations, federal tax
identification numbers, professional practice name, the business hours and any
additional information as required in the Operations Manual for all Member
Physicians and Participating Providers that contract with PPG in a format
acceptable to FHS. If more than one such provider uses the same federal tax
identification number, PPG shall include the professional practice name
registered with such number.  FHS shall
notify PPG of all such Member Physicians and Participating Providers approved
by FHS. PPG shall provide FHS with at least a monthly list of additions,
deletions and address changes to such list and a complete listing annually.


 


PPG
shall take all reasonable and prudent steps to ensure that all Participating
Providers provide adequate personnel and facilities in order to perform the
duties and responsibilities associated with the proper administration of this
Agreement, including but not limited to, ensuring that all facilities utilized
by Participating Providers shall satisfy the standards for licensure and
certification, if applicable, by the appropriate governmental licensing agency
as well as applicable State and federal law. The Participating Provider assumes
the responsibility for supervision of all personnel associated with the
Participating Provider.


 


2.3          PPG
Contracts.  PPG shall not contract for the performance
of services under this Agreement without the consent of FHS.  Upon entering into any arrangements with a
Participating Provider as may be necessary to fulfill PPG’s obligations to
provide or arrange for the provision of Contracted Services and Covered
Services under this Agreement, PPG shall obtain written contracts with such
providers which include the following requirements:


 


(a)           Secure adherence by Participating
Providers to all the obligations of this Agreement which affect Participating
Providers, including but not limited to:


 


(1)           Accepting Members upon referral from
Member Physicians.


 


(2)           Collecting any Copayments due from
Member and accepting payment from PPG as payment-in-full for Contracted
Services rendered to Members referred to them, except for authorized Copayments,
and agree not to bill FHS or Members and shall hold them harmless for such
services regardless of whether or not payment is received from PPG or FHS.


 


(3)           Hospitalizing Members in accordance
with the applicable Benefit Program and the Operations Manual.


 


5

















 


(4)           Conforming to the drug dispensing
guidelines set forth in the Operations Manual or FHS’ drug formulary.


 


(5)           Maintaining in force adequate
professional liability insurance as set forth in this Agreement and in the
Operations Manual.


 


(6)           Conforming to all State, federal and
other government requirements regarding retention of and access to records, and
submission of reports.


 


(7)           Maintaining offices in a condition
which conforms to FHS’ standards for safety, appearance and accessibility of
services.


 


(8)           Accepting all HMO Members when
selected, assigned or transferred to PPG, provided PPG and its Participating
Providers have capacity to provide Contracted Services under this Agreement and
PPG and Member Physicians continue to accept new patients from any other health
care service plan.


 


(9)           Conforming to FHS’ processing of
retroactive eligibility changes as set forth in this Agreement.


 


(10)         Conforming with FHS’ guidelines for
rapid medical records review, response and resolution of Member complaints.


 


(b)           No agreement between PPG and a
Participating Provider shall contain any incentive plan that includes a
specific payment made, in any type or form, as an inducement to deny, reduce,
or limit Covered Services to a Member. PPG shall comply and shall cause its
Participating Providers to comply with State and federal law regarding
physician incentives and stop loss insurance requirements, where applicable.
PPG shall furnish FHS with all PPG’s contracting templates for FHS’ review and
approval upon request and at such time templates are changed.  Every PPG contract shall provide that it is
terminable with respect to Members by PPG upon FHS’ request.  PPG shall furnish FHS with copies of any
amendments to a contract with a Participating Provider within ten (10) days of
execution. In addition, any agreement or amendment between PPG and a Member
Physician shall not restrict the rights and obligations of Member Physician to
communicate freely with Members regarding their medical condition and treatment
alternatives.  In the event PPG enters
into a contract with a Participating Provider, PPG will provide FHS with
documentation thereof as set forth in the Operations Manual.


 


(c)           PPG shall assure through written
communication that all Member Physicians are aware of the appeals process
regarding any decision, policy, or practice of FHS or PPG which Member
Physician believes is not consistent with the provision of quality medical care
to Members.


 


(d)           As requested or required by FHS, PPG
shall maintain and make available to FHS, the California Department of Health
Services (“DHS”), the California Department of Corporations (“DOC”), the U.S.
Department of Justice (“DOJ”), the U.S. Department of Defense (“DOD”), the U.S.
Department of Health and Human Services (“DHHS”) and any other regulatory
agency having jurisdiction over FHS, copies of PPG’s policies and procedures
and all Participating Provider subcontracts and any amendments thereto.


 


2.4          Member
Physician Selection.  PPG shall be responsible for the selection
of Member Physicians, or other providers who provide Covered Services to
Members. Selection of Member Physicians shall be made by PPG with reference to
reasonable requirements and PPG procedures. PPG shall assist each HMO Member in
selecting a PCP when necessary.


 


6

















 


PPG
agrees to select Member Physician(s) to function in a liaison capacity with FHS
and serve, if requested, on Quality Committees or any specified committee
established by FHS.


 


In
the event PPG adds new or satellite facilities, except by acquisition or
merger, or a new Member Physician(s), PPG shall notify FHS in writing as
soon as possible but at least ninety (90) days before such addition is effective
with FHS.  PPG acknowledges and agrees
that FHS shall have the right to determine whether the new or satellite
facilities or the new Member Physician(s) are acceptable to FHS. PPG agrees
that no new satellite facility shall be added, or new Member Physician shall be
allowed to render Covered Services under this Agreement, until FHS has approved
such facility or Member Physician.  PPG
understands and agrees that FHS shall be free to deny participation under this
Agreement to any new or satellite facilities without any obligation to:


 


(a)           state a cause or provide an
explanation for denying such addition, or


 


(b)           provide the PPG with any right to
appeal or any other due process.  PPG
agrees that FHS’ decision regarding the foregoing shall be final and binding.


 


PPG
further understands and agrees that FHS may deny participation under this
Agreement to any new Member Physician(s). FHS shall afford Member Physician
such rights to appeal and due process, if any, as required by State and federal
law. In the event PPG acquires or merges with another participating physician
group, PPG shall offer and FHS has the right to accept any rates which are the
most favorable to FHS. Such rates shall be retroactive to the date of any
merger or acquisition.


 


2.5          Member
Physician Termination.  Whenever possible, PPG shall
notify FHS in writing at least ninety (90) days prior to any action by PPG to
terminate a Member Physician’s agreement with PPG, or if Member Physician
decides to close his or her medical practice or refuse to accept any additional
Members.  When ninety (90) days prior
written notice is not possible, PPG shall provide as much advance notice as
possible.  PPG shall immediately notify
FHS whenever a Member Physician fails to renew his or her agreement with PPG, whenever
PPG has reason to believe a Member Physician will fail to renew his or her
agreement with PPG, and whenever PPG knows of an occurrence giving rise to an
immediate termination of a Member Physician by PPG. In the event of a Member
Physician termination, PPG shall ensure that there is sufficient capacity in
the network to meet the access standards as set forth in the Operations Manual.


 


FHS
may request and PPG shall terminate any Member Physician from participation
under this Agreement, at any time, upon at least thirty (30) days prior written
notice from FHS to PPG; provided, however, that no such termination shall be
because a Member Physician is advocating on behalf of a Member for health care
services. Notwithstanding the foregoing, if a Member Physician is found guilty
of a criminal offense, is barred or sanctioned from participation under the
Medicare program, or if FHS makes a determination, at its sole discretion, that
treatment by a Member Physician may jeopardize the health and safety of any Member,
PPG, upon FHS’ request, shall immediately terminate such Member Physician from
participation under this Agreement.


 


2.6          Eligibility. 
Except in an Emergency, PPG shall verify the eligibility of Members
before providing Contracted Services. 
FHS shall make a good faith effort to confirm the eligibility of any
Member. When PPG has not made reasonable efforts to verify eligibility, PPG
shall not hold FHS financially responsible for Covered Services rendered to any
person who was not eligible for FHS benefits as determined by FHS.


 


2.7          Performance
Standards.  PPG shall comply with the performance
standards and indicators set forth in the Operations Manual. These standards
and indicators shall be monitored by PPG on an ongoing basis using mutually
agreeable measurements, and shall be reported to FHS on a regular basis as set
forth in the Operations Manual.  FHS
shall have the right, upon advance written notice, to audit PPG’s reported
performance.


 


7

















 


2.8          Provision
of Services.  PPG agrees to render, and to ensure that
Participating Providers render, Covered Services to Members in accordance with:


 


(a)           The terms and conditions of this
Agreement, and all laws, rules and regulations applicable to PPG, FHS, and Payors;


 


(b)           The Utilization/Care Management
Program, the Quality Improvement Program, the applicable Benefit Programs, the
Member’s Coverage Certificate and the Operations Manual;


 


(c)           The performance standards and
indicators that are established by FHS including, but not limited to, waiting
periods for appointments, waiting periods in a Member Physician’s office and
processing of prior authorizations;


 


(d)           The drug dispensing guidelines set
forth in FHS’ drug formulary and the Operations Manual;


 


(e)           The termination procedures outlined
in the Operations Manual when requesting termination of a Member. PPG shall not
request, demand, or require or otherwise seek, directly or indirectly, the
removal of any Member based on that Member’s need for, or utilization of,
Covered Services;


 


(f)            The Member selection or assignment
provisions of this Agreement.  PPG
agrees to accept any and all Members who select or are assigned to PPG.  PPG and Member Physicians shall maintain a
professional relationship with each Member to whom PPG or Member Physician
renders Contracted Services, and shall be solely responsible to such Member for
such services; and


 


(g)           The eligibility verification and
notification procedures as set forth in the Operations Manual.


 


2.9          Offices
and Hours.  Member Physician shall maintain offices,
equipment, and personnel as may be necessary to provide Contacted Services
under this Agreement, in accordance with State law and as reasonably requested
by FHS.  Member Physician shall provide
Contracted Services under this Agreement during normal business hours, and
shall be available to Members by telephone twenty-four (24) hours a day, seven
(7) days a week on an Emergency basis and for consultation.


 


2.10          Coverage.  In
the event of a Member Physician’s illness, vacation or other absence from his
or her practice, PPG shall arrange for coverage and shall ensure that such
coverage shall be by a Participating Provider.


 


2.11          Non-Discrimination.  PPG
and Member Physicians shall not discriminate against any Member in the
provision of Covered Services hereunder, on any basis including age, sex,
marital status, sexual orientation, race, color, religion, ancestry, national
origin, disability, handicap, health status, source of payment, utilization of
medical or mental health services or supplies, or other unlawful basis
including without limitation, the filing by such Member of any complaint,
grievance, appeal, or legal action against PPG. PPG and Member Physicians shall
provide Covered Services in the same manner, and with the same availability, as
services are rendered to its other patients.


 


2.12          Utilization/Care Management
Program.  PPG and Member Physicians agree to
participate in and cooperate fully with the provisions and all decisions
rendered in connection with FHS’ Utilization/Care Management Program.  PPG and Member Physician agrees to render
Covered Services at the most appropriate level of service (including levels of
acute care such as intensive care unit services or regular acute medical and
surgical services as determined by the clinical status of the Member) which can
safely be provided to the Member.


 


8

















 


For
hospitalization, this means that the Member requires acute care as an inpatient
due to the nature of the services the Member is receiving, or the severity of
the Member’s condition, and that safe and adequate care cannot be received as
an outpatient or at a less intensified medical setting. PPG and Member
Physicians also agree to provide such records and other information as may be required or requested under such
Utilization/Care Management Program as set forth in the Operations Manual. FHS
may, at its sole discretion, delegate certain Utilization/Care Management
Program activities. If so determined qualified and delegated by FHS, the
obligations of PPG for delegation shall be as set forth herein.


 


2.13        Prior
Authorization and Referrals.  PPG and Member Physicians agree
to comply with prior authorization and referral processes as required by the
particular Benefit Program or Utilization/Care Management Program as set forth
in the Operations Manual. In the event PPG agrees to participate in a program
offered by another health plan, preferred provider organization, managed care
organization, or insurer which includes an expedited process for referrals or
authorizations, PPG agrees to participate in and offer the same access for FHS
Members for any such program offered by FHS.


 


Prior
authorizations or referrals may be issued by FHS, PPG, a Participating Provider,
or Member Physician in accordance with the applicable Benefit Program. For
non-emergent services, PPG or Participating Provider agrees to obtain prior
authorization or a referral before providing or ordering Covered Services if
required by the applicable Benefit Program. In an Emergency, PPG agrees to
attempt to obtain prior authorization or a referral, by telephone if necessary,
before providing or ordering Covered Services. If prior authorization or a
referral cannot be obtained, PPG agrees to notify FHS and the appropriate
Participating Provider, as soon as possible, but no later than twenty-four (24)
hours after admission. In the even PPG fails to obtain an authorization or a
referral, PPG agrees not to seek payment from FHS or a Payor for Contracted Services
rendered to a Member unless prior authorization or a referral was obtained. FHS
shall retain the right to authorize Emergency services in accordance with the
Operations Manual.


 


2.14        Notification
of Institutional Services.  PPG shall notify FHS prior to
or at the time of each admission of a Member to a hospital or skilled nursing
facility whose admission is the financial responsibility of FHS. In the event
of an Emergency admission, PPG shall notify FHS regarding such Member within
twenty-four (24) hours.


 


2.15        Participating
Providers.  Except in an Emergency or as otherwise
required by law, PPG shall refer Members only to Participating Providers for
Covered Services unless such services are not reasonably available from
Participating Provider.  In the event
PPG or a Member Physician refers a Member to a non-Participating Provider, PPG
agrees to be responsible for payment of claims incurred for the Covered
Services rendered by such non-Participating Provider, and PPG agrees to hold
harmless the Member for such claims.


 


If
FHS is obligated to pay for services which FHS determines are the financial
responsibility of PPG or which it would not otherwise be obligated to pay, FHS
shall have the right to deduct the cost of such services from any amounts due to
PPG. FHS agrees not to deduct any amount as set forth in this Section without
first giving PPG ten (10) days prior written notice during which time PPG shall
have the opportunity to show cause why such amount should not be deducted by
FHS.


 


2.16        Catastrophic
Cases.  PPG shall actively participate with FHS in
managing Members with potentially catastrophic medical conditions including,
but not limited to, Acquired Immune Deficiency Syndrome (AIDS) cases, organ
transplantation, infants requiring intensive care, and burn cases. Such
participation includes, but is not limited to, prompt notification to FHS of
all known or suspected catastrophic cases, obtaining prior authorization from
FHS for organ transplantation evaluations and organ transplantations, and utilizing
regional centers designated by FHS for the purpose of delivering specialized
care.  PPG shall abide by the policies
and procedures for catastrophic case management as set forth in the Operations
Manual.


 


9

















 


2.17        Quality
Improvement Program.  PPG agrees to participate in and cooperate
fully with the applicable Quality Improvement Program and to comply with
decisions rendered by FHS in connection with a Quality Improvement Program. The
quality of Contracted Services rendered to Members shall be monitored under the
Quality Improvement Program applicable to the particular Benefit Program.  PPG also agrees to provide medical and other
records within five (5) calendar days of receipt of written notice, and review
data and other information as may be required or requested under a Quality
Improvement Program, including reporting in accordance with, but not limited
to, the current Health Plan Employer Data and Information Set (HEDIS), or its
successor. In the event that PPG’s performance, including but not limited to,
its structures, processes or outcomes, is found to be unacceptable under any
Quality Improvement Program, FHS shall give written notice to PPG to correct
the specified deficiencies within the time period specified in the notice.  PPG shall correct such deficiencies within
that time period.


 


2.18        Preventive
Care and Health Education.  PPG shall provide quality
health promotion and disease prevention programs to Members in a manner which
meets specified criteria outlined in the Operations Manual.  Such program shall (a) stress healthy
lifestyles to minimize health risk factors and maximize health potential; (b)
focus on patient education as a part of the medical treatment plan directed by
physicians; (c) utilize an integrated and systematic approach to planning,
implementing, and evaluating programs including a physician advisory committee
and data collection of program usage and results; and, (d) delegate
responsibility for the program to an interested and qualified health care
professional who will coordinate the program for the PPG and act as liaison to
FHS.


 


2.19        Member
Grievance and Appeal Procedure.  PPG shall participate in and be
bound by the applicable Benefit Program, Member’s Certificate and the
applicable Member grievance and appeal procedure, as set forth in the
Operations Manual.


 


2.20        Credentialing
of PPG and/or Participating Providers.  PPG
shall submit to FHS the Credentials Application, as set forth in the Operations
Manual.  Such application shall be
completed on behalf of PPG, and/or on behalf of each Participating Provider
rendering Covered Services under this Agreement.  The submitted Credentials Application is construed to be a part
of this Agreement. If so permitted by State law, and required and delegated by
FHS, the obligations of PPG in Article V also shall apply.  PPG represents and warrants that each Member
Physician meets the credentialing and recredentialing standards adopted by FHS
set forth in the Operations Manual and that PPG shall perform credentialing and
recredentialing functions in accordance with the Operations Manual.


 


2.21        Notice of
Adverse Action.  PPG shall notify FHS in writing, within five
days of receiving any notice of any complaint, grievance, appeal, or adverse
action, including, without limitation, (i) any action against any license,
certification under Title XVIII or Title XIX or other applicable statute of the
Social Security Act or other State law, or DEA narcotic registration
certificate; (ii) any action which results in the filing of a report on a
Member Physician under California Business & Professions Code Section 805;
(iii) any action by an insurance carrier indicating that such carrier will
cancel or not renew the insurance coverage required to be carried by a Member
Physician as specified in this Agreement; (iv) any malpractice litigation or
settlement involving a Member Physician; and (v) any other event, occurrence or
situation which might materially interfere with, modify or alter performance of
any of PPG’s duties or obligations under this Agreement. PPG shall maintain a
written record of any Member complaint and provide such record to FHS promptly
upon request.


 


2.22        Insurance.  PPG
shall maintain appropriate insurance programs or policies as follows and in
accordance with the Operations Manual:


 


(a)           PPG agrees to maintain professional
liability insurance and managed care errors and


 


10

















 


omissions insurance, or other
risk protection program, in the amounts required by law but no less than One
Million Dollars ($1,000,000.00) per claim and Three Million Dollars
($3,000,000.00) annual aggregate and, where possible, shall name FHS as an
additional insured. Notification to FHS by PPG of cancellation or material
modification of the risk protection program shall be made to FHS at least
thirty (30) days prior to any cancellation. Certificates of Coverage or
documents evidencing professional liability insurance or other risk protection
required under this subsection shall be provided to FHS upon request.


 


(b)           PPG shall maintain a policy or
program of comprehensive general liability insurance (or other risk protection)
with minimum coverage including a Combined Single Limit Body Injury and
Property Damage Insurance of not less than One Million Dollars ($1,000,000.00)
per claim.


 


(c)           PPG’s employees shall be covered by
Workers’ Compensation Insurance in an amount and form meeting all requirements
of applicable provisions of the California Labor Code.


 


2.23        Conflict of
Interest.  PPG shall not, during the term of this
Agreement, acquire, or make any commitment to acquire a proprietary interest in
any organization which is licensed as a health care service plan or which has
submitted an application for such licensure except as to a health care service
plan with waivers.  This restriction
shall include any affiliated, subsidiary or parent organizations to which PPG
may belong in which thirty percent (30%) or more is under common ownership.
“Proprietary Interest”, as used herein, shall not be deemed to include:


 


(a)           participation as a provider of
services for any other health care service plan or system of prepaid health
care delivery; or


 


(b)           ownership of shares having a current
value of less than two hundred fifty thousand dollars ($250,000.00) in a
corporation whose shares are regularly traded in a public market.


 


2.24        Non-Solicitation.  PPG
and Member Physicians shall not, either during or after the term of this
Agreement, solicit any Member to enroll in any other health care service plan
or insurance program for the primary purpose of securing financial gain. FHS
shall have the right to review all correspondence or communications to Members
prior to dissemination or mailing.


 


2.25        Encounter
Reporting.  For HMO Members for which PPG receives
Capitation under this Agreement, PPG shall provide FHS encounter data in
accordance with the Operations Manual, via magnetic media for all Contracted
Services provided to HMO Members during a calendar month within thirty (30)
days of the end of the month in which such services are rendered.  PPG shall also promptly provide FHS with all
corrections to and revisions of such encounter data.  FHS and PPG shall work in good faith to eliminate hard copy
reports and transition to Electronic Data Interface (EDI) exchange of
information.


 


2.26        Regulatory
and Accreditation Surveys.  PPG shall participate in and
assist FHS with any review conducted by a regulatory agency or any
accreditation survey or study.


 


2.27        New or
Additional Benefit Plan Designs.  PPG agrees to accept any new or
additional benefit plan designs developed by FHS and shall provide Covered
Services pursuant hereto. FHS shall determine appropriate actuarial values,
consistent with existing actuarial assumptions, in order to compensate PPG.


 


III.           DUTIES OF FHS


 


3.1          Enrollment
List.  FHS shall periodically provide PPG with a
list of HMO Members assigned to


 


11

















 


PPG via electronic
transmission or magnetic media.  FHS
shall maintain a system to allow PPG and Member Physicians to make telephonic
or electronic inquiries regarding Member eligibility.


 


3.2          Administration.  FHS
shall perform, or have performed, all necessary administrative, accounting,
enrollment, and other functions appropriate for marketing and administration of
the Benefit Programs contained in this Agreement.


 


3.3          Member-Physician
Relationship.  FHS shall not interfere with the
professional relationship between any Member and his or her Member
Physician(s). In no event shall FHS interfere with the responsibilities or
legal right of Member Physicians or other licensed health care providers to
discuss with Members information relevant to such Members’ health care. Member
Physicians shall have the right to act as an advocate for and to communicate
freely with Members regarding their health care, including, but not limited to,
communications regarding diagnostic and treatment options.


 


3.4          Insurance.  FHS
shall maintain appropriate insurance programs or policies including a policy of
bodily injury and personal injury coverage which includes persons serving on
FHS committees as insured by definition. In the event that a policy or program
is terminated or the coverage of committee persons is materially changed, FHS
shall so notify PPG.


 


3.5          Timely
Assignment of Members.  FHS shall require Members to
select a PCP and/or a participating physician group at the time of enrollment
when required under a Benefit Program. 
FHS may assist Members in such selection by providing information, as
determined by FHS, regarding PCPs and physician groups. Nothing in this
Agreement shall be construed to require FHS to assign a minimum or maximum
number of Members to PPG or to utilize PPG for any Members in the Service Area.


 


3.6          Reporting
to Regulators.  FHS shall accept sole responsibility for
filing reports, obtaining approvals, and complying with the applicable laws and
regulations of State, federal, and other regulatory agencies having
jurisdiction over FHS; provided, however, that PPG agrees to cooperate in
providing FHS with any information and assistance reasonably required in
connection therewith.


 


3.7          Premiums. FHS shall collect all premiums, dues, Member
payments, and other items of revenue to which FHS is entitled, except for
Copayments and payments for non-Covered Services.


 


3.8          Out-of-Area
Services.  FHS shall manage and coordinate out-of-area
services.  PPG shall cooperate fully
with FHS and shall provide any information necessary to transfer Members back
into the Service Area, including but not limited to, notification to FHS of
known or suspected out-of-area services. 
PPG shall accept the prompt transfer of Member to the care of PPG and
its Participating Providers following the receipt of out-of-area services when
medically appropriate.


 


3.9          Operations
Manual.  FHS shall provide PPG with various
Operations Manuals which identify the methods of administration of this
Agreement, including grievance and appeal procedures, Utilization/Care
Management Programs, Quality Improvement Programs, encounter reporting
procedures, and billing and accounting of Covered Services rendered hereunder.
Updates to the Operations Manual will be made by FHS and, whenever possible,
shall be sent to PPG for review thirty (30) days prior to implementation. Such
updates shall not materially affect the compensation rates or financial
responsibility of PPG under this Agreement.


 


3.10        Marketing
Activities.  FHS shall make reasonable efforts to market
the Benefit Programs. Nothing in this Agreement shall require FHS to conduct
any specific marketing activities on behalf of PPG or to identify PPG in any
specific FHS marketing or informational materials.


 


12

















 


IV.           COMPENSATION


 


4.1          Compensation
Rates.  PPG and Member Physician shall accept as
payment in full for Contracted Services and all other services rendered to
Members under this Agreement the amounts payable by FHS or a Payor as set forth
in the applicable Addendum to this Agreement. Except when PPG is paid
Capitation, PPG may require Member Physicians to bill and accept compensation
as payment in full. PPG shall bill and accept payment for Contracted Services
rendered by Member Physicians, and be responsible for administering such funds
and compensating Member Physicians therefrom. When PPG is paid Capitation, FHS
reserves the right to create new benefit plans and to establish capitation
rates for new benefit plans based on actuarial assumptions that are consistent
with existing actuarial assumptions. FHS shall adjust the actuarial assumptions
which support the rates in the applicable Addenda on a periodic basis, and
shall advise PPG of any such adjustments in methodology. Capitation may also be
adjusted in the event benefits are added or deleted from PPG Capitated Services.


 


4.2             Performance
Incentives.  In consideration of PPG offering an approved
wellness program and their participation in the Quality of Care Improvement
Program, or its successor, as defined in the Operations Manual, FHS shall
reimburse PPG pursuant to the program set forth in the Operations Manual.


 


4.3             Billing
and Payment.


 


(a)           Billing.  PPG shall submit to FHS via FHS electronic
claims submission program or by hard copy, clean, complete and accurate claims
for Contracted Services in accordance with the Operations Manual and the
applicable Benefit Program, unless PPG is paid Capitation for such
services.  PPG shall submit claims
within sixty (60) days of rendering Contracted Services. Where FHS is the
secondary payor under Coordination of Benefits, such sixty (60) day period
shall commence immediately after the primary payor has paid or denied the
claim. In the event PPG is capitated and elects to purchase reinsurance from
FHS, PPG shall submit reinsurance claims within sixty (60) calendar days of the
end of the annual reinsurance period.


 


FHS
shall not be under any obligation to pay PPG for any claim not timely submitted
as set forth above. PPG shall not seek payment from any Member in the event FHS
does not pay PPG for a claim not timely submitted.


 


(b)           Payment.  Unless a claim is disputed, FHS or a Payor
shall pay PPG’s clean, complete, accurate and timely submitted claims for
Contracted Services rendered to a Member, in accordance with applicable State
and federal law.


 


(c)           Adjustments
and Appeals.  PPG or
Member Physicians shall submit requests for adjustments and/or appeals
regarding claim payments to FHS within sixty (60) calendar days after the date
of the payment of such claim to PPG or Member Physician.  In the event PPG or Member Physician fails
to appeal a claim within such time period, PPG or Member Physician shall not
have the right to appeal such claim.


 


(d)           Offsetting.  FHS shall have the right to offset any
amounts owed to FHS by PPG, including but not limited to, amounts owed by PPG
under loans guaranteed by FHS, errors, or FHS interim payment for Contracted
Services, including Capitation payments. Effective July 1, 1998 and
notwithstanding any other provision of this Agreement or any other contract to
the contrary, only deficits in the shared risk programs which provide financial
incentives for the control or management of Shared Risk Services’ expenses or
utilization will neither be collected from PPG by FHS nor offset against PPG
Capitation; provided however, that FHS shall not be restricted from (i)
offsetting such deficits against payments to PPG including, but not limited to,
surpluses from other shared risk programs, stop loss payments, bonus or other
incentive program payments; (ii) establishing reasonable withholds from
Capitation approved by DOC as set forth in the applicable Addendum to offset
PPG


 


13

















 


liability when the cost of
Shared Risk Services exceed the Shared Risk Budget (Withhold Fund); or (iii)
carrying forward such shared risk program deficits to be applied against future
year’s program surpluses and Withhold Fund. Each PPG numbered site shall be
calculated as a separate entity and any payments to or from PPG with multiple
sites shall be net amount due/owed from all sites.


 


(e)           Reciprocity.  PPG shall cooperate and develop arrangements
with FHS and Participating Providers to assure reciprocity of the rates for
Covered Services for Members who are not assigned to PPG. FHS shall, where
contractually available, provide reciprocity to FHS rates for Covered Services
provided to PPG’s assigned Members. FHS shall adjudicate and pay such referred
claims on behalf of PPG (at available reciprocity rates or, if reciprocity
rates are unavailable, at rates negotiated in consultation with PPG), shall
deduct the costs of such claims from PPG’s monthly Capitation, and shall
provide PPG an accounting thereof.


 


PPG
agrees that FHS may allow the compensation rates set forth in this Agreement to
be used by other Participating Providers who may from time to time be
responsible for compensating PPG for Covered Services rendered by PPG to a
Member.


 


4.4          Reconciliation
of Eligibility.  In the event of a retroactive cancellation
or addition of an HMO Member, FHS shall adjust Capitation accordingly. In the
event Contracted Services are provided to an individual who is not a Member,
based on an erroneous or delayed enrollment list or confirmation of enrollment
of said individual by FHS, FHS shall be financially responsible for all such
services provided by PPG prior to the time PPG received notice of that person’s
ineligibility, except when the individual is enrolled in another health care
service plan or insurance program from whom PPG or Participating Provider has
or may receive capitation or other payment for the individual.  In the event FHS is financially responsible,
FHS shall pay PPG at the fee-for-service rates in Addendum E when PPG supplies
FHS with evidence that it has unsuccessfully sought payment through two billing
cycles for all or a portion of such charges from the patient, or the person
having legal responsibility for the patient or the entity having financial
responsibility for such payment. In the event FHS pays PPG pursuant to this
Section, PPG shall have no further right and shall not attempt to collect any
additional payment from the patient for said services and PPG shall be deemed
to have transferred all legal rights of collection and Coordination of Benefits
for services to FHS.


 


4.5          Extension
of Benefit Members.  When PPG is capitated, PPG’s Capitation for
a Member who is or becomes eligible for coverage under the extension of
benefits provisions of the Member’s Coverage Certificate shall be equal to the
current amount for the plan type under which the Member is or was enrolled.  PPG shall provide services to any Member who
is totally disabled on the original date of the Member’s FHS coverage. In the
event payment for such Contracted Services is obtained by FHS from a prior
carrier as an extension of benefits, FHS shall reimburse PPG to the extent
payment is received from the prior carrier.


 


4.6          Collection
from Member.  PPG shall collect all Copayments due from
Members, and shall not waive or fail to pursue collection of Copayments from
Members.  PPG shall not charge a Member
any fees or Surcharges for Covered Services rendered pursuant to this
Agreement, except for authorized Copayments. 
In addition, PPG shall not collect a sales, use or other applicable tax
from Members for the sale or delivery of Covered Services.  If FHS receives notice of any additional
charge, FHS shall take appropriate action. 
PPG may bill a Member for non-Covered Services rendered by PPG to such
Member only if the Member is notified in advance that the services to be
provided are not covered under the Member’s Benefit Program, and the Member
requests in writing that PPG render the non-Covered Services, prior to PPG’s
rendition of such services.


 


4.7          Member
Held Harmless.  PPG agrees that in no event, including, but
not limited to, non-payment by FHS, insolvency of FHS, or breach of this
Agreement, shall PPG bill, charge, collect a deposit from, seek compensation,
remuneration, or reimbursement from, or have any recourse against Members, the
State, or persons other than FHS for Covered Services provided pursuant to this
Agreement.  This provision shall not


 


14

















 


prohibit
collection of Copayments or any amounts due for services which are determined
not to be Covered Services in accordance with the terms of the applicable Benefit
Program.


 


PPG
further agrees that: (a) this provision shall survive the termination of this
Agreement regardless of the cause giving rise to termination and shall be
construed to be for the benefit of Members; and (b) this provision supersedes
any oral or written contrary agreement existing or hereafter entered into
between PPG and Members or persons acting on their behalf. Any modification,
addition, or deletion of or to the provisions of this clause shall be effective
on a date no earlier than fifteen (15) days after the State regulatory agency
has received written notice of such proposed change and has approved such
change.


 


4.8          Coordination
of Benefits.  PPG agrees to conduct Coordination of
Benefits in accordance with the policies and procedures in the Operations
Manual, including but not limited to, the prompt notification to FHS of any
third party entity who may be responsible for payment and collection of
Copayments. PPG shall not bill Members for any portion of Contracted Services
not paid by the primary carrier when FHS is the secondary carrier, but shall
seek payment from FHS. When FHS is secondary under the Coordination of Benefit
rules, FHS shall pay PPG only those amounts which, when added to the amount
paid to PPG from other sources, equals the amount due to PPG under this
Agreement in the absence of other sources of payment.  Any legal right to collection of overpayments from FHS which may
occur under this Section shall be deemed to be transferred from PPG to FHS if
PPG has been paid in full according to the primary carrier’s contracted rate.
PPG shall report on a monthly basis, the nature and extent of all Coordination
of Benefits recoveries for services rendered by PPG under this Agreement. Such
recoveries shall be performed in accordance with the applicable Evidence of
Coverage and FHS’ policies set forth in the Operations Manual.


 


4.9          Third
Party Recoveries, Worker’s Compensation.  In
the event PPG provides services to FHS Members for injuries resulting from the
acts of third parties, or resulting from work related injuries, PPG shall have
the right to recover from any settlement, award, or recovery from any
responsible third-party the value of Covered Services rendered pursuant to the
applicable provisions of the Coverage Certificate except as specifically stated
otherwise in the Operations Manual. PPG shall notify FHS of any third party
payor and shall, upon request from FHS, provide FHS with an accounting of all
such sums recovered.


 


4.10        Audit of
Claims.  FHS shall have the right to review and audit
any claims and to reconcile any amounts accordingly.


 


4.11        Reinsurance.  For
selected Benefit Programs, FHS shall provide certain stop loss and reinsurance
programs designed to protect the PPG from excessive financial risk.  Such programs are specified in the
applicable Addendum.  FHS shall charge
PPG a premium in consideration for these programs. Notwithstanding any other
provision in this Agreement, FHS may adjust the premium and thresholds for such
programs by providing sixty (60) days prior written notice to PPG.


 


PPG
may elect not to participate in certain stop loss and reinsurance programs
effective the first day of any calendar year provided that PPG provides written
notice to FHS at least sixty (60) calendar days prior to the beginning of the
calendar year that PPG shall not participate in the stop loss program and
specifies the name of the third party insurance carrier and proposed effective
date, coverage levels and charges. In such event, PPG shall be required to
obtain stop loss coverage in the amounts required by FHS and State and federal
law from a third party insurance carrier acceptable to FHS. If FHS does not
object to such coverage in writing within fifteen (15) days of the date of the
notice, PPG shall be required to purchase such coverage as of the effective
date specified in the notice. If such notice is not received when due or if
coverage levels are not acceptable, FHS shall automatically enroll PPG in its
programs to afford protection effective on the first day of the calendar year.


 


PPG
shall submit claims under the applicable stop loss and reinsurance programs in
accordance


 


15

















 


with the procedures set forth
in the Operations Manual but no later than sixty (60) calendar days following
the end of the calendar year. For purposes of calculating stop loss and
reinsurance thresholds, the following shall apply: (i) for PPG and Member
Physicians, the compensation schedule set forth in Addendum E shall be
utilized; (ii) for any other Provider who is subcontracted to PPG, such
subcontract rates shall be utilized; (iii) for a Participating Provider who is
not subcontracted with PPG but is contracted with FHS.  FHS’ contract rate shall be utilized; or
(iv) the actual charges paid by PPG when none of the above applies. FHS shall
compensate PPG for claims in excess of the stop loss threshold at *** of the
fee-for-service rates in Addendum E unless otherwise provided for in an
applicable Addendum, less applicable Copayments, coinsurance, deductibles and
payments from third parties or Coordination of Benefits.


 


V.            DELEGATION


 


5.1          Delegation
of Certain Functions.  If qualified, as determined by
FHS, PPG shall accept delegation of and perform such utilization management,
quality improvement, credentialing and recredentialing, Member grievance and
appeal, medical record review, and capitation and claims adjudication
functions, in accordance with the performance standards and criteria of FHS as
set forth in the Operations Manual. PPG shall ensure the timely payment of
Covered Services rendered by referral health professionals and shall perform
such claims processing in accordance with applicable Benefit Program and
Operations Manual.


 


5.2          Termination
of Delegation.  FHS shall have the right to audit PPG’s
performance of utilization management, quality improvement, credentialing and
recredentialing, Member grievance and appeal, medical record review, and
capitation and claims adjudication functions from time to time. If FHS
determines that deficiencies exist in PPG’s performance, PPG shall accept
consulting assistance from FHS. Failure to cure any identified deficiencies
within a reasonable period of time as defined by FHS policies, or if FHS
determines PPG does not have the ability to perform delegated functions, or is
not effectively performing delegated functions, FHS may revoke delegation of
all or any of these functions in accordance with procedures set forth in the
Operations Manual and re-assume the performance of such functions itself.
Should it become necessary for FHS to reassume delegated functions, FHS shall
charge the following administrative fees: utilization management *** of PPG
Capitation; quality improvement *** of PPG Capitation; claims processing *** of
PPG Capitation.


 


VI.           TERM AND TERMINATION


 


6.1          Term.  The
term of this Agreement shall commence on the date set forth on the first page
of this Agreement and shall continue for a period of thirty six (36) months.
This Agreement shall automatically renew for successive one year periods on the
annual renewal date, unless terminated as set forth herein.  The term of this Agreement shall remain the
same for all Benefit Programs covered hereunder.


 


6.2          Without
Cause Termination.  Either party may terminate this Agreement at
the scheduled renewal date upon one hundred twenty (120) days prior written
notice to the other party.  In the event
FHS provides PPG with such notice, FHS may, at its option, begin to transition
Members immediately under this Agreement to another Participating Provider after
such notice.


 


6.3          Immediate
Termination.  FHS may terminate this Agreement immediately
upon notice to PPG, in the event of: (a) PPG’s violation of any applicable law,
rule or regulation; (b) PPG’s failure to maintain the professional liability
insurance coverage specified hereunder; (c) PPG’s failure to comply with the
terms, conditions


 


16

















 


or determinations of any
Utilization/Care Improvement Program or Quality Improvement Program, or Benefit
Program; or, (d) FHS’ determination that the health, safety or welfare of any
Member may be in jeopardy if this Agreement is not terminated.


 


6.4          Termination
for Failure to Pay.  In the event FHS fails to make payments to
PPG under the terms and conditions of this Agreement within the times set forth
herein, PPG may terminate this Agreement, but only if FHS has failed to make
such payments following ten (10) business days prior written notice from PPG.
PPG may not terminate this Agreement after giving such notice unless, PPG has
first made itself available to meet with FHS to attempt in good faith to
resolve the matter.


 


6.5          Termination
Due to Material Breach Other Than Non-Payment. 
Except as set forth in above, in the event that either PPG or FHS fails
to cure a material breach of this Agreement within thirty (30) days of receipt
of written notice of such breach from the other party, the non-defaulting party
may terminate this Agreement.  If the
breach is cured within such thirty (30) day period, or if the breach is one
which cannot reasonably be corrected within thirty (30) days, and the
non-defaulting party determines that the defaulting party is making substantial
and diligent progress toward correction during such thirty (30) day period,
this Agreement shall remain in full force and effect.


 


6.6          Termination
of an Affiliate.  In the event FHS ceases to own fifty-one
percent (51%) or more of the voting stock, or to manage or have a FHS
subsidiary manage, an entity, such entity shall cease being a FHS Affiliate
hereunder.  Effective on the date FHS
ceases to own fifty-one percent (51%) or manage, or an FHS subsidiary ceases to
manage, the entity, such entity shall no longer be a party to this Agreement
and the terms and conditions hereunder shall not apply to such entity.


 


6.7          Effect
of Termination.  In the event that a Member is receiving
Contracted Services at the time this Agreement terminates, PPG shall continue
to provide Contracted Services to the Member until the later of: (a) treatment
is completed; (b) the Member is discharged from an inpatient facility; (c) the
Member is assigned to another Participating Provider; or (d) the anniversary
date of the Member’s Coverage Certificate, if requested by FHS.  Compensation for such Contracted Services
shall be at the rates contained in the applicable Addendum. Termination of this
Agreement shall not affect any right or obligations hereunder which shall have
previously accrued, or shall thereafter arise with respect to any occurrence
prior to termination, and such rights and obligations shall continue to be
governed by the terms of this Agreement.


 


6.8          Termination
Withhold from Capitation.  In the event either party gives
the other party notice of termination as set forth in this Article, FHS may, at
its sole discretion, withhold up to one-third of each of the final three months
of Capitation due PPG. If FHS exercises its option to transition HMO Members
prior to the end of the termination notice period, FHS may withhold the entire
last month’s Capitation. FHS may use such funds to offset any PPG liability to
FHS or for payment of PPG Capitated Services on behalf of PPG.  FHS shall pay PPG simple interest on all
funds withheld as set forth in this Section at the interest rate per annum which
shall be the lower of *** or the prime interest rate, e.g. the base rate on
corporate loans posted by at least *** of the nation’s thirty largest banks, as
of the last business day in December of the prior contract year. PPG
understands and agrees that a decision by FHS to withhold any Capitation shall
not relieve PPG of its obligations to perform under this Agreement  All amounts withheld by FHS and all interest
accrued on such amounts as set forth in this Section shall be included in any
calculations regarding a final settlement between the parties.


 


Notwithstanding
any other provision of this Agreement, in the event FHS decides to withhold
Capitation from PPG as set forth in this Section, FHS may, upon three days
prior written notice to PPG, administer or oversee all or part of PPG Capitated
Services oh behalf of PPG. PPG agrees to fully cooperate with FHS in the
administration of such claims, including providing all necessary information,
and to take no action which may


 


17

















 


jeopardize the payment of
such claims.


 


6.9          Financial
Settlement Upon Termination.  Within one hundred eighty (180)
calendar days of the effective date of termination of this Agreement, an
accounting shall be made by FHS of the monies due and owing either party and
payment shall be forthcoming by the appropriate party to settle such balance
within thirty (30) calendar days of such accounting. PPG may request an
independent audit of such FHS accounting. Such audit may be performed by a
mutually acceptable independent certified public accountant and shall be paid
for solely by PPG. In the event such independent audit results in findings
different from FHS’s findings, the parties shall meet and confer to resolve
such differences.


 


VII.         RECORDS, AUDITS AND REGULATORY
REQUIREMENTS


 


7.1          Medical
and Other Records.  PPG shall prepare and maintain all medical
and other books and records required by law in accordance with the general
standards applicable. PPG shall maintain such records for at least seven (7)
years after the rendering of Contracted Services and records of a minor child
shall be kept for at least one (1) year after the minor has reached the age of
eighteen (18), but in no event less than seven (7) years. Additionally, PPG
shall maintain such financial, administrative and other records as may be
necessary for compliance by FHS with all applicable local, State, and federal
laws, rules and regulations. PPG agrees to submit upon request such reports and
financial information as is necessary for FHS to comply with regulatory requirements
to monitor the financial viability of PPG.


 


7.2          Access
to Records; Audits.  The records referred to above shall not be
removed or transferred from PPG except in accordance with applicable local,
State, and federal laws, rules and regulations.  Subject to applicable State and federal confidentiality or
privacy laws, FHS or its designated representatives, and designated
representatives of local, State, and federal regulatory agencies having
jurisdiction over FHS shall have access to PPG’s records, at PPG’s place of
business on request during normal business hours, to inspect and review and
make copies of such records.  Such
governmental agencies shall include, but not be limited to, when applicable to
the Benefit Programs identified on Addendum A, the DHS, the DHHS, the DOC, the
DOD and the DOJ.  When requested by FHS,
PPG shall produce copies of any such records at no cost. Additionally, PPG
agrees to permit FHS, and its designated representatives, accreditation
organizations, and designated representatives of local, State, and federal
regulatory agencies having jurisdiction over FHS or any Payor, to conduct site
evaluations and inspections of PPG’s offices and service locations.


 


7.3            Continuing
Obligation.  The obligations of PPG under this Article
shall not be terminated upon termination of this Agreement, whether by
rescission or otherwise. After termination of this Agreement, FHS and Payors
shall continue to have access to the other party’s records as necessary to
fulfill the requirements of this Agreement and to comply with all applicable
taws, rules and regulations.


 


VIII.        GENERAL PROVISIONS


 


8.1          Amendments. 
Except as provided herein, FHS and PPG may only amend this Agreement by
written mutual consent. Amendments required because of legislative, regulatory
or legal requirements do not require the consent of PPG or FHS and will be
effective immediately on the effective date thereof. Any amendment to this
Agreement requiring prior approval of or notice to any federal or State
regulatory agency shall not become effective until all necessary approvals have
been granted or all required notice periods have expired.


 


8.2            Separate
Obligations.  The rights and obligations of under this
Agreement shall apply to each Affiliate listed on Addendum A to this Agreement
only with respect to the Benefit Programs of such Affiliate. No


 


18

















 


such Affiliate shall be
responsible for the obligations of any other Affiliate under this Agreement
with respect to the other Affiliate’s Benefit Programs. The person executing
this Agreement has been duly authorized by each Affiliate to execute this
Agreement on such Affiliates behalf. In no event shall FHS or any FHS Affiliate
be responsible for any payment which is the financial responsibility of a Payor
and PPG shall seek compensation for such services only from Payor.


 


8.3          Assignment. 
Neither party shall assign its rights nor delegate its duties and
obligations hereunder without the prior written consent of the other party; provided,
however FHS shall have the right to automatically assign this Agreement to any
entity which controls, is controlled by, or is under common control with FHS.
PPG agrees to provide prior written notice to FHS of its intent to either sell,
transfer or convey its business assets to another entity or enter into a
management contract with a physician practice management entity which does not
manage PPG as of the effective date of this Agreement.


 


In
the event PPG (1) files a petition in bankruptcy, makes a general assignment
for the benefit of creditors or has a petition in bankruptcy filed against it,
a receiver or trustee appointed over its assets, or an attachment, seizure,
lien or levy made against a substantial portion of its assets; or (2) becomes otherwise
incapable, as determined by FHS of performing basic functions associated with
operating a medical group or performing its duties and responsibilities under
this Agreement, including but not limited to, claims payment, medical
management, and quality assurance then, PPG agrees to make full assignment (not
including any delegation of prior obligations) of its provider contracts to
FHS.  Nothing in this paragraph shall be
construed to mean that PPG cannot or shall not contract or re-contract with the
same physicians, medical groups and ancillary providers for other lines of
business and/or for the same lines of business with other health plans-which
rights are hereby expressly retained by PPG.


 


8.4          Confidentiality.  FHS
and PPG agree to hold all confidential or proprietary information or trade
secrets of each other in trust and confidence and agree that such information
shall be used only for the purposes contemplated herein, and not for any other
purpose.  Specifically, PPG acknowledges
that the names, addresses and other identifying information concerning Members
and employers and other groups contracting with FHS constitute confidential
information which derives independent economic value from not being generally
known or readily accessible to others who can obtain economic value from its
disclosure or use. FHS acknowledges that the names, contracts, addresses, and
other information concerning Member Physicians, employees and other providers
and other groups contracting with PPG constitute proprietary information of
PPG. FHS shall use such information only as necessary and appropriate for the
performance of its obligations under this Agreement. In the event FHS could
obtain such information from a source other than PPG, such information shall
not be proprietary to PPG. Neither PPG, a Member Physician, nor FHS shall
disclose the terms of this Agreement except as may be required by law;
provided, however, nothing herein shall prohibit PPG or a Member Physician from
disclosing to a Member any information the PPG or Member Physician determines
is relevant to the Member’s care including the basic method of reimbursement
and whether financial bonuses or incentives are used.


 


8.5          Provider
Dispute Resolution Procedure.  FHS has established a Provider
Dispute Resolution Procedure under which PPG may submit disputes to FHS.  The Provider Dispute Resolution Procedure
which contains the procedures for processing and resolving such disputes
including the location and telephone number where information regarding
disputes may be submitted, is set forth in the Operations Manual.  Any provider dispute which is not resolved
informally through the Provider Dispute Resolution Procedure may be submitted
for arbitration as provided in Section 8.6 below.


 


8.6          Binding
Arbitration.  PPG and FHS agree to meet and confer in good
faith to resolve any problems or disputes that may arise under this Agreement.
Such good faith meet and confer shall be a condition precedent to the filing of
any arbitration demand by either party. In addition, should the parties, prior
to submitting a dispute to arbitration, desire to utilize other impartial
dispute settlement techniques such as mediation


 


19

















 


or fact-finding, a joint
request for such services may be made to the American Arbitration Association
(“AAA”), Judicial Arbitration and Mediation Services (“JAMS”), or the parties
may initiate such other procedures as they may mutually agree upon at such
time. Notwithstanding the foregoing, nothing contained herein is intended to
require arbitration of disputes for medical malpractice between a Member and
the PPG.


 


The
parties further agree that any controversy or claim arising out of or relating
to this Agreement, or the breach thereof, whether involving a claim in tort,
contract, or otherwise, shall be settled by final and binding arbitration, upon
the motion of either party, to arbitration under the appropriate rules of the
AAA or JAMS, as agreed by the parties. The arbitration shall be conducted in
Sacramento, Los Angeles, or San Francisco, California by a single, neutral
arbitrator who is licensed to practice law. The written demand shall contain a
detailed statement of the matter and facts and include copies of all related
documents supporting the demand. Arbitration must be initiated within six (6)
months after the alleged controversy or claim occurred by submitting a written
demand to the other party. The failure to initiate arbitration within that
period shall mean the complaining party shall be barred forever from initiating
such proceedings.


 


All
such arbitration proceedings shall be administered by the AAA or JAMS, as
agreed by the parties; however, the arbitrator shall be bound by applicable
state and federal law, and shall issue a written opinion setting forth findings
of fact and conclusions of law. The parties agree that the decision of the
arbitrator shall be final and binding as to each of them. Judgment upon the
award rendered by the arbitrator may be entered in any court having
jurisdiction. The arbitrator shall have no authority to make material errors of
law or to award punitive damages or to add to, modify, or refuse to enforce any
agreements between the parties. The arbitrator shall make findings of fact and
conclusions of law and shall have no authority to make any award which could
not have been made by a court of law. The party against whom the award is
rendered shall pay any monetary award and/or comply with any other order of the
arbitrator within sixty (60) days of the entry of judgment on the award, or
take an appeal pursuant to the provisions of the California Civil Code. The
parties waive their right to a jury or court trial.


 


In
all cases submitted to arbitration, the parties agree to share equally the
administrative fee as well as the arbitrator’s fee, if any, unless otherwise
assessed by the arbitrator. The administrative fees shall be advanced by the
initiating party subject to final apportionment by the arbitrator in this
award.


 


8.7          Indemnification
of Parties.


 


(a)           PPG agrees to indemnify, defend, and
hold harmless FHS, its agents, officers, and employees from and against any and
all liability expense including defense costs and legal fees incurred in
connection with claims for damages of any nature whatsoever, including but not limited
to, bodily injury, death, personal injury, or property damage arising from
PPG’s performance or failure to perform its obligations hereunder.


 


(b)           FHS agrees to indemnify, defend, and
hold harmless PPG, its agents, officers, and employees from and against any and
all liability expense, including defense costs and legal fees incurred in
connection with claims for damages of any nature whatsoever, including but not
limited to, bodily injury, death, personal injury, or property damage arising
from FHS’ performance or failure to perform its obligations hereunder.


 


8.8          Status
as Independent Entities.  None of the provisions of this
Agreement is intended to create or shall be deemed or construed to create any
relationship between PPG and FHS other than that of independent entities
contracting with each other solely for the purpose of effecting the provisions
of this Agreement.  Neither PPG nor FHS,
nor any of their respective agents, employees, or representatives shall be
construed to be the agent, employee or representative of the other.


 


8.9          Cooperation
of Parties.  The parties shall cooperate in administering
and determining Member


 


20

















 


benefits under the applicable
Coverage Certificate in accordance with the Operations Manual and as agreed to
by the parties. PPG understands and agrees that PPG is not authorized to make
nor shall it make any variances, alterations, or exceptions to the provisions,
terms, and conditions of a Member’s Coverage Certificate. FHS shall have the
final decision-making authority between the parties for payment of claims for
Covered Services rendered to Members, determination of Covered Services,
including Medically Necessary Services, determination of eligibility and
determination of Members’ benefits under the applicable Benefit Program.
Notwithstanding the foregoing, PPG and Member Physicians shall be solely
responsible for providing Contracted Services to Members. The parties shall
refrain from unduly criticizing each other, especially in the presence of third
parties and shall attempt to resolve all issues in a cooperative and
professional manner.


 


8.10        Use of
Name.  Each party agrees that the other party may
not list the name, address, telephone number and other factual information of
the other party in its marketing and informational materials without such
party’s prior written consent, provided FHS shall be entitled to list PPG’s
information in any FHS provider directory.


 


8.11        Non-Exclusive
Contract.  This Agreement is non-exclusive and shall
not prohibit PPG or FHS from entering into agreements with other health care
providers or purchasers of health care services.


 


8.12        No Third
Party Beneficiary.  Nothing in this Agreement is intended to,
nor shall be deemed or construed to create, any rights or remedies in any third
party, including a Member. Nothing contained herein shall operate (or be
construed to operate) in any manner whatsoever to increase the rights of any
such Member or the duties or responsibilities of PPG or FHS with respect to
such Members.


 


8.13        Notice.  Any
notice required or desired to be given under this Agreement shall be in writing
and shall be sent by certified mail, return receipt requested, postage prepaid,
or overnight courier, or facsimile, addressed as follows:


 


FHS


C/O
Health Net


21600
Oxnard Street


Woodland Hills,
California 91367


Attention:
Senior Vice President, Provider Network Management


 


PPG:


Prospect
Medical Gorup


18200
Yorba Linda Blvd., Suite 409


Yorba
Linda, CA 92686


Attn:
Administrator / CEO


 


The addresses to which
notices are to be sent may be changed by written notice given in accordance
with this Section.


 


8.14        Severability.  If
any provision of this Agreement is rendered invalid or unenforceable by any
local, State, or federal law, rule or regulation, or declared null and void by
any court of competent jurisdiction, the remainder of this Agreement shall
remain in full force and effect.


 


8.15        Addenda.  Each
Addendum to this Agreement is made a part of this Agreement as though set forth
fully herein. Any provision of an Addendum that is in conflict with any
provision of this Agreement shall


 


21

















 


take precedence and supersede
the conflicting provision of this Agreement.


 


8.16        Regulatory
Approval.  If FHS has not been licensed to provide, or
provides services in connection with, a particular Benefit Program in a
particular State, or has not received all required regulatory approvals for use
of this Agreement with respect to the Benefit Program in the State prior to the
execution of this Agreement, this Agreement shall be deemed to be a binding
letter of intent with respect to such Benefit Program in the State. In such
event, this Agreement shall become effective with respect to any such Benefit
Program in the State on the date that the required licensure and regulatory
approvals are obtained. If FHS is unable to obtain such licensure or regulatory
approvals after due diligence, FHS shall notify PPG and both parties shall be
released from any liability under this Agreement with respect to the Benefit
Program in question in the applicable State; provided however, that if such
licensure or regulatory approval is conditioned upon amendment of this
Agreement, then this Agreement shall be amended automatically pursuant to this
Article.


 


8.17        Headings.  The
headings of articles and paragraphs contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.


 


8.18        Entire
Agreement.  Except as expressly provided in the
applicable Addendum, this Agreement including its Addendum supersedes any and
all other agreements, either oral or written, between the parties with respect
to the subject matter hereof, and no other agreement, statement or promise
relating to the subject matter of this Agreement shall be valid or binding.


 


8.19        Governing
Law.  This Agreement shall be governed by and
construed and enforced in accordance with the laws of the State, except to the
extent such laws conflict with or are preempted by any federal law, in which
case such federal law shall govern. 
Federal law shall also govern with respect to federal Benefit Programs.
In addition, FHS is subject to the requirements of Chapter 2.2 of Division 2 of
the California Health and Safety Code and of Subchapter 5.5 of Chapter 3 of
Title 10 of the California code of Regulations.  Any provision required to be in this Agreement by either of the
above shall bind the parties whether or not provided in this Agreement.


 


22

















 


IN WITNESS WHEREOF, the parties hereto have executed this Agreement by their officers duly
authorized to be effective on the date and year first written above.


 


 


 


	
  Participating Physician Group

  	
   

  	
  Foundation
  Health Systems Affiliates

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ James Wilcox

  	
   

  	
  /s/ Linda S. Pollnow

  	
   

  
	
  Signature

  	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  JAMES WILCOX

  	
   

  	
  Linda S. Pollnow

  	
   

  
	
  Print Name

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Senior Vice President

  	
   

  
	
  VICE PRESIDENT, CONTRACTING

  	
   

  	
  Provider Network Management

  	
   

  
	
  Title

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  5/14/98

  	
   

  	
  5-20-98

  	
   

  
	
  Date

  	
   

  	
  Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  33-021 9957

  	
   

  	
   

  	
   

  
	
  Federal Tax Identification Number

  	
   

  	
   

  	
   

  



 


PPG
acknowledges that it is contractually bound to the Operations Manual and any
updates or revisions to such to be issued to PPG by having a duly authorized
representative sign in the space provided below.


 


	
  Participating
  Physician Group

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ James Wilcox

  	
   

  
	
  Signature

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  JAMES WILCOX

  	
   

  
	
  Print Name

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  VICE PRESIDENT, CONTRACTING

  	
   

  
	
  Title

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  5/14/98

  	
   

  
	
  Date

  	
   

  



 


23

















 


ADDENDUM A


 


BENEFIT PROGRAMS AND AFFILIATES


 


I.              BENEFIT PROGRAMS


 


Benefit Program participation included under
this Agreement is as follows:


 


	
  BENEFIT PROGRAM

  	
   

  	
  ADDENDUM

  	
   

  	
  PPG

  PARTICIPATION

  	
   

  
	
  Standard HMO

  	
   

  	
  B

  	
   

  	
  YES

  	
   

  
	
  Flex Funded HMO

  	
   

  	
  B

  	
   

  	
  YES

  	
   

  
	
  Small Group HMO

  	
   

  	
  B

  	
   

  	
  YES

  	
   

  
	
  Individual HMO

  	
   

  	
  B

  	
   

  	
  YES

  	
   

  
	
  AIM

  	
   

  	
  B

  	
   

  	
  YES

  	
   

  
	
  Medicare Supplement

  	
   

  	
  B

  	
   

  	
  YES

  	
   

  
	
  Commercial POS

  	
   

  	
  B

  	
   

  	
  YES

  	
   

  
	
  Medicare HMO

  	
   

  	
  C

  	
   

  	
  YES

  	
   

  
	
  Medicare POS

  	
   

  	
  C

  	
   

  	
  YES

  	
   

  
	
  PPO/EPO/POS (out-of-network)

  	
   

  	
  D

  	
   

  	
  YES

  	
   

  
	
  Medi-Cal

  	
   

  	
  F

  	
   

  	
  NO

  	
   

  
	
  CHAMPUS

  	
   

  	
  G

  	
   

  	
  YES

  	
   

  
	
  Occupational Medicine

  	
   

  	
  H

  	
   

  	
  YES

  	
   

  



 


II.            AFFILIATES


 


Upon
execution of this Agreement, the Affiliates primarily using this Agreement
include, but are not limited to, the following: Health Net; Foundation Health,
a California Health Plan; Health Net Life Insurance Company; Qualmed Life and
Health Insurance Company; Foundation Health National Life Insurance Company;
Business Insurance Group. Inc.; Business Insurance Company; California
Compensation Insurance Company; Combined Benefits Insurance Company; Commercial
Compensation Insurance Company; Foundation Health Federal Services; Foundation
Health Medical Resource Management; Preferred Health Network Inc.; and
Foundation Health System Life and Health Insurance Company.  The Affiliates are defined in Section 1.1 of
this Agreement.


 


Notwithstanding
the foregoing. PPG agrees that any other Affiliate of FHS not listed above may
access the rates set forth in this Agreement and Addenda. This would include
Members of non-California based affiliates who may be treated by PPG.


 


24

















 


ADDENDUM B


 


COMMERCIAL
HEALTH MAINTENANCE ORGANIZATION (HMO) AND COMMERCIAL POINT OF SERVICE (POS)
BENEFIT PROGRAMS


 


A.            GENERAL REIMBURSEMENT PROVISIONS.


 


1.             PPG understands and agrees that the
obligations of FHS set forth in this Addendum are only the obligations of
Health Net (hereafter “HMO”) and not the obligations of FHS or any other
Affiliate of FHS.  PPG shall be
compensated according to this Addendum B and this Addendum shall be applicable
to only those Commercial HMO and Commercial POS Members listed on the
applicable Capitation remittance summaries. Pursuant to Section 8.18, Entire
Agreement, PPG understands and agrees that the compensation and provisions
under the agreement between PPG and the entity formerly known as Foundation
Health, a California Health Plan, are applicable to those Commercial HMO and
Commercial POS Members listed on the Foundation Health capitation remittance
summary, and that the Foundation Health agreement shall remain in full force
and effect for those Members until such time those Members are no longer
enrolled in Foundation Health Benefit Programs.


 


2.             Benefit
Programs. This
Addendum B is applicable to the following Benefit Programs:


 


•                  Commercial HMO


•                  Standard HMO


•                  Flex Funded HMO


•                  Small Group HMO


•                  Individual HMO


•                  AIM


•                  Medicare Supplement


•                  Commercial POS


 


3.             Compensation
for PPG Capitated Services.  As compensation for rendering
PPG Capitated Services, HMO shall pay PPG Capitation as set forth in this
Addendum B for each Commercial HMO and Commercial POS Member eligible to
receive services from PPG during any particular month. Capitation shall be
payable on a per Member per month (PMPM) basis. Capitation shall be computed on
the basis of the most current information available and shall be paid by HMO by
wire transfer on or before the fifteenth (15th) day of each month or the first
business day following the fifteenth if the fifteenth is a holiday or on a
weekend.  Each Capitation payment shall
be accompanied by a remittance summary. The remittance summary identifies the
total Capitation payable and those Commercial HMO and Commercial POS Members
for whom Capitation is being paid.  In
the event of a Capitation error, resulting in an overpayment or underpayment to
PPG, HMO shall adjust subsequent Capitation to offset such error.


 


4.             Compensation
to Other Providers of PPG Capitated Services.  PPG
shall compensate all providers who render PPG Capitated Services to Commercial
HMO and Commercial POS Members assigned to PPG. In the event that PPG does not
process and pay eligible claims submitted to PPG for Capitated Services within
applicable time limits, HMO may pay such claims at the lesser of HMO’s contract
rate with such provider, if any, PPG’s subcontract terms, or provider’s billed
charges. HMO shall deduct any such claim amounts paid from PPG’s Capitation, as
set forth in the Operations Manual.


 


5.             Contracted
Services.  PPG and Member Physicians shall render
Contracted Services which are not PPG Capitated Services to Members covered under
this Addendum B and shall be compensated on a fee-for- service basis at the
rates set forth in Addendum E. PPG shall submit claims in accordance with the
terms of this Agreement and State and federal law.


 


6.             Division
of Financial Responsibility Changes.  In
July 1998, HMO shall change the Division of Financial Responsibility. As a
result, PPG shall have a change in its Professional Capitation PMPM rates and
its


 


25

















 


Shared Risk Budgets; Hospital shall have a change in
its Capitation rates, if applicable.


 


7.             Shared Risk Budget.  In July 1998, PPGs Shared Risk Budgets shall
be converted from a flat PMPM amount to an age, sex and benefit plan adjusted
structure. Such conversion shall be revenue neutral (before Division of
Financial Responsibility change.


 


8.             Plan Wide Change of Age, Sex and
Benefit Plan Factors. 
In September 1998, HMO shall implement new age, sex and benefit plan
factors. Such implementation shall produce a change in the Professional and Institutional
Capitation rates and in Shared Risk Budgets. HMO shall commit to make such
conversion revenue neutral to PPG. 
After this September conversion, Capitation and Shared Risk Budgets
shall be based on the new normalized PMPM and new factors as set forth in
Addendum B.


 


B.            STANDARD HMO.


 


1.             Professional
Capitation Rates.


 


1.1          Capitation Rates.  PPG Capitation for Standard HMO Members
shall be determined on a monthly basis by multiplying the following normalized
PMPM rates by the age, sex and benefit plan factors set forth in Addendum B for
each assigned Member. Normalized rates represent the PMPM prior to the
adjustment for PPG’s assigned Members’ age, sex and benefit plan. Actual PPG
gross Capitation shall fluctuate from month to month to the extent that PPG’s
age, sex and benefit plan mix fluctuates.


 


	
  Period

  	
   

  	
  Standard

  HMO

  	
   

  
	
  January 1, 1998 to June 30, 1998

  	
   

  	
  $

  	
  *** PMPM

  	
   

  
	
  July 1, 1998 to August 31, 1998

  	
   

  	
  $

  	
  *** PMPM

  	
   

  
	
  September 1, 1998

  	
   

  	
  $ PMPM (See section

  A8 above)

  	
   

  



 


1.2          1999 and
2000 Capitation Rates.  PPG Capitation shall be
increased according to the normalized amounts set forth below for calendar
years 1999 and for 2000. Capitation increases for these years for Standard HMO
Members shall be based on the PPG’s Member satisfaction survey results.


 


HMO
shall conduct annual Member satisfaction surveys.  Survey results for the year shall be reported on or before
December 15th of each year and results arrayed for all participating
physician groups. PPG’s Capitation PMPM increase for Standard HMO Members shall
be determined by PPG’s performance relative to other physician groups. Three
performance tiers shall be established; each tier shall represent approximately
one-third of the HMO’s total Standard HMO Member population, provided, however,
that any physician group with assigned Standard HMO Members exceeding 600,000
annual Member months shall be excluded from tier determination, PPG’s
Capitation increase for 1999 and 2000 shall be based upon PPG’s tier ranking
for Member satisfaction as follows:


 


	
  Calendar

  Year

  	
   

  	
  Top 33%

  	
   

  	
  Middle 33%

  	
   

  	
  Lowest 33%

  	
   

  
	
  1999

  	
   

  	
  $

  	
   *** PMPM

  	
   

  	
  $

  	
   *** PMPM

  	
   

  	
  $

  	
  *** PMPM

  	
   

  
	
  2000

  	
   

  	
  $

  	
   *** PMPM

  	
   

  	
  $

  	
   *** PMPM

  	
   

  	
  $

  	
  *** PMPM

  	
   

  



 


Should
results for PPG be unavailable or should results not be statistically
meaningful, PPG shall receive the increase amount for the lowest tier. PPG
shall have the right to examine HMO’s calculation of the Member satisfaction
survey results, subject to the blinding of other participating physician
groups’ names.


 


26

















 


PPG
shall request any such examination within sixty (60) calendar days following
notification of survey results, tier ranking and PMPM increase.


 


2.             Professional
Stop Loss Program.


 


PPG
elects not to participate in the Professional Stop Loss Program. PPG shall
provide HMO with proof of Professional Stop Loss coverage.


 


3.             Shared
Risk Program.  PPG shall participate in an incentive
program for Shared Risk Services which shall reward PPG for effectively
coordinating such care. Under this Program, a budget shall be established for
Shared Risk Services, and the actual cost of such services shall be compared to
the budget. In 1998 HMO shall transition from flat Shared Risk Budgets to
budgets adjusted by age, sex and benefit plan.


 


3.1          Shared
Risk Budget.  Each month from January to June 1998, HMO
shall fund the Shared Risk Budget for Standard HMO Members, at the flat PMPM
rate as set forth below. Starting in July 1998, HMO shall fund the Shared Risk
Budget for Members, with normalized rates. These normalized rates shall be
adjusted for PPG’s assigned Members by the age, sex and benefit plan factors as
set forth in Addendum B. Actual Shared Risk Budget shall fluctuate from month
to month to the extent that PPG’s age, sex and benefit plan mix fluctuates.


 


	
  Period

  	
   

  	
  Standard
  HMO

  	
   

  
	
  January 1, 1998
  to June 30, 1998

  	
   

  	
  $

  	
  *** PMPM

  	
   

  
	
  July 1, 1998 to
  August 31, 1998

  	
   

  	
  $ PMPM

  (See Section A7 above)

  	
   

  
	
  September 1,
  1998

  	
   

  	
  $ PMPM

  (See Section A8 above)

  	
   

  
					



 


3.2          Shared
Risk Administration.  As a contingency for any PPG liability under
this Shared Risk Program, HMO shall deduct *** of PPG’s Capitation for Standard
HMO Members and place such amount in the Withhold Fund as described in the
Agreement.


 


In
the event the claims for Shared Risk Services exceed Shared Risk Revenue at the
interim settlement date., HMO may, at its sole discretion, deduct up to five
percent (5%) of PPG’s Capitation for Standard HMO Members and place such amount
in the Withhold Fund as described in this Agreement, and may continue such
withhold until the final Shared Risk settlement. The Withhold fund shall accrue
interest which shall be the lower of five percent (5%) or the prime interest
rate as stated in the Wall Street Journal, on the last business day in December
of the contract year.


 


If,
upon final Shared Risk settlement, (i) a Shared Risk gain exists, HMO shall
refund the Withhold Fund, plus accrued interest, to PPG together with the PPG’s
share of the gain , or (ii) a Shared Risk deficit exists, subject to Section
4.3, of the Agreement. HMO shall offset the Withhold Fund against PPG’s
outstanding liability or any other amounts payable to HMO. Any amount in the
Withhold Fund not offset against such PPG liability shall be refunded to PPG at
the final Risk Sharing settlement. However, as a contingency for any PPG liability
under this Shared Risk Program, HMO shall continue, at its sole discretion, to
deduct up to *** PPG’s Capitation for Standard HMO Members and place such
amount in the Withhold Fund as described in this Agreement.


 


Each
Reconciliation Period, HMO shall calculate Shared Risk Claims in accordance
with the Operations Manual and compare such claim cost to the corresponding
Shared Risk Budget.  HMO shall perform


 


27

















 


both an interim and final
settlement. In the event that such claims are less than the Shared Risk Budget
for the Interim Period, PPG’s share of the settlement shall be seventy-five
percent (75%), subject to Section 4.3 of this Agreement.


 


Shared
Risk Claims with dates of service within the Reconciliation Period and paid by
March 31 of the following year shall be used in the calculation. Shared Risk
Services incurred within the Reconciliation Period but paid after March 31 of
the following year will be included in the next Reconciliation Period calculation.
In the event any amounts remain in the Withhold Fund following the
reconciliation of any shared risk program, those excess funds shall be paid to
PPG by April 30 of the following year.


 


3.3          Shared
Risk Budget Surplus.  In the event of a Shared Risk Budget
surplus, PPG’s share of the surplus shall be limited to the lesser of (a) fifty
percent (50%) of the Shared Risk Budget surplus, or (b) an amount not to exceed
*** of the annual gross PPG Capitation. Subject to Section 4.3 of the
Agreement, the Shared Risk Budget surplus shall be offset against any amounts
payable by PPG.  Any surplus remaining
shall be paid to PPG by April 30 of the following year.


 


3.4          Shared
Risk Budget Deficit.  In the event of a Shared Risk Budget
deficit, PPG’s share of the deficit shall be limited to the lesser of (a) ***
of the Shared Risk Budget deficit, or (b) an amount not to exceed *** of the
annual gross PPG Capitation. Subject to Section 4.3, of the Agreement, any
amounts payable by PPG shall be offset against the Withhold Fund and any other
amounts payable by HMO.


 


3.5          Shared
Risk Reinsurance.  PPG shall participate in the Shared Risk
Reinsurance Program. The cost to PPG for such participation shall be calculated
as follows:


 


(a)           Out-of-Area Emergency and Urgently Needed
Services: 3.75% of Shared Risk Budget.


 


Out-of-Area
Emergency and Urgently Needed Services are reimbursed at eighty percent (80%)
of allowed amount, and the remaining twenty percent (20%) shall be charged
against the Shared Risk Budget.


 


(b)           In-Area Shared Risk Services: *** of
Shared Risk Budget.


 


The
cost of in-area Shared Risk services utilized by a Member in a Reconciliation
Period shall be charged against the Shared Risk Budget as  follows: *** of any amount over *** up to
*** and *** of any amount over ***.


 


4.             AIDS,
and Transplant Reinsurance Programs.  On a
network wide basis, reinsurance programs shall be established by HMO to cover
the cost of organ transplants for Members, the payment of expenses incurred in
the treatment of Members who have been diagnosed with Acquired Immune
Deficiency Syndrome (“AIDS Members”).


 


4.1          AIDS
Reinsurance.  Professional, institutional, and pharmacy
costs for AIDS Members shall be the financial responsibility of HMO, as set
forth in the Operations Manual. Additionally, the pharmacy cost for HIV drugs
shall be the financial responsibility of HMO under this Program. PPG shall
receive prior authorization from HMO for an elective inpatient admission of an
AIDS Member. In addition, PPG shall provide HMO with timely notification of any
urgent/emergent admission of any AIDS Member who is receiving anti-viral home
treatments, or of any AIDS Member who is receiving total parenteral nutrition.
For purposes of this paragraph, timely notification is within twenty-four (24)
hours of an admission or the initial treatment. In the event PPG fails to
notify HMO as set forth in this paragraph, AIDS related claims for such Members
shall not be


 


28

















 


eligible for payment under
this Program.


 


4.2          Transplant
Reinsurance.  Professional and institutional costs related
to organ transplantation shall be the financial responsibility of HMO, as set
forth in the Operations Manual. PPG shall refer Members to HMO’s designated
regional transplant centers to qualify for payment of the organ transplant
costs under this Program. In the event PPG refers a transplant case to a
facility that is not an HMO-designated regional transplant center, those claims
shall not be eligible for payment under this Program.


 


4.3          AIDS,
and Transplant Reinsurance Premium. The Reinsurance Program rates, as set forth
below, shall be deducted from PPG’s Capitation:


 


	
  •

  	
   

  	
  AIDS Reinsurance

  	
   

  	
  $*** PMPM

  
	
  •

  	
   

  	
  Transplant Reinsurance

  	
   

  	
  $*** PMPM

  



 


5.             Insured
Service(s).  In the event that a Member new to HMO is
assigned to PPG and gives birth within six (6) months of such assignment, HMO
shall pay PPG a flat fee of eight-hundred dollars ($800.00) for such Member’s
delivery.  This fee shall be in addition
to the Capitation for such Member, provided that the delivery services were
rendered by a contracted physician of PPG.


 


6.             Flex
Funded HMO.  Flex Funded HMO Members, (those enrolled in
a benefit program which is fully or partially self-funded) shall not be subject
to a Dual Risk Program nor to a Shared Risk Program.  PPG Capitation, Professional Stop Loss, Reinsurance Programs and
Insured Services shall be as set forth above.


 


C.            SMALL GROUP HMO.


 


1.             Professional
Capitation Rates.


 


1.1          Capitation
Rates.  PPG Capitation for Small Group HMO Members
shall be determined on a monthly basis by multiplying the following normalized
PMPM rates by the age, sex and benefit plan factors set forth in Addendum B for
each assigned Member. Normalized PMPM rates represent the PMPM prior to the
adjustment for PPG’s assigned Members’ age, sex and benefit plan. Actual PPG
gross Capitation shall fluctuate from month to month to the extent that PPG’s
age, sex and benefit plan mix fluctuates.


 


	
  Period

  	
   

  	
  Small
  Group

  HMO

  	
   

  
	
  January 1, 1998
  to June 30, 1998

  	
   

  	
  $

  	
   *** PMPM

  	
   

  
	
  July 1, 1998 to
  August 31, 1998

  	
   

  	
  $

  	
   *** PMPM

  	
   

  
	
  September 1,
  1998

  	
   

  	
  $

  	
   PMPM
 (See Section A8 above)

  	
   

  



 


2.             Professional
Stop Loss Program.


 


PPG
elects not to participate in the Professional Stop Loss Program. PPG shall
provide HMO with proof of Professional Stop Loss coverage.


 


3.             Shared
Risk Budget.  Each month from January to June 1998, HMO
shall fund the Shared Risk Budget for Small Group HMO Members, at the flat PMPM
rate as set forth below. Starting in July 1998, HMO shall fund the Shared Risk
Budget for Members, with normalized rates. These normalized rates shall be
adjusted for PPG’s assigned Members by the age, sex and benefit plan factors as
set forth in Addendum B. Actual Shared Risk Budget shall fluctuate from month
to month to the extent that PPG’s age, sex and benefit plan mix fluctuates.


 


29

















 


	
  Period

  	
   

  	
  Small Group

  HMO

  	
   

  
	
  January 1, 1998 to June 30, 1998

  	
   

  	
  $  *** PMPM

  	
   

  
	
  July 1,1998 to August 31, 1998

  	
   

  	
  $  PMPM

  (See Section A7 above)

  	
   

  
	
  September 1,1998

  	
   

  	
  $  PMPM

  (See Section A8 above)

  	
   

  



 


3.2          Shared
Risk Administration.  As a contingency for any PPG liability under
this Shared Risk Program, HMO shall deduct *** of PPG’s Capitation for Small
Group Members and place such amount in the Withhold Fund as described in the
Agreement.


 


In
the event the claims for Shared Risk Services exceed Shared Risk Revenue at the
interim settlement date., HMO may, at its sole discretion, deduct up to five
percent (5%) of PPG’s Capitation for Small Group HMO Members and place such amount
in the Withhold Fund as described in this Agreement, and may continue such
withhold until the final Shared Risk settlement. The Withhold fund shall accrue
interest which shall be the lower of five percent (5%) or the prime interest
rate as stated in the Wall Street Journal, on the last business day in December
of the contract year.


 


If,
upon final Shared Risk settlement, (i) a Shared Risk gain exists, HMO shall
refund the Withhold Fund, plus accrued interest, to PPG together with the PPG’s
share of the gain, or (ii) a Shared Risk deficit exists, subject to Section
4.3, of the Agreement, HMO shall offset the Withhold Fund against PPG’s
outstanding liability or any other amounts payable to HMO. Any amount in the
Withhold Fund not offset against such PPG liability shall be refunded to PPG at
the final Risk Sharing settlement. However, as a contingency for any PPG
liability under this Shared Risk Program, HMO shall continue, at its sole
discretion, to deduct up to five percent (5%) of PPG’s Capitation for Small
Group HMO Members and place such amount in the Withhold Fund as described in
this Agreement.


 


Each
Reconciliation Period, HMO shall calculate Shared Risk Claims in accordance
with the Operations Manual and compare such claim cost to the corresponding
Shared Risk Budget. HMO shall perform both an interim and final settlement. In
the event that such claims are less than the Shared Risk Budget for the Interim
Period, PPG’s share of the settlement shall be seventy-five percent (75%),
subject to Section 4.3 of this Agreement.


 


Shared
Risk Claims with dates of service within the Reconciliation Period and paid by
March 31 of the following year shall be used in the calculation. Shared Risk
Services incurred within the Reconciliation Period but paid after March 31 of
the following year will be included in the next Reconciliation Period
calculation. In the event any amounts remain in the Withhold Fund following the
reconciliation of any shared risk program, those excess funds shall be paid to
PPG by April 30 of the following year.


 


3.3          Shared Risk Budget Surplus.  In
the event of a Shared Risk Budget surplus, PPG’s share of the surplus shall be
limited to the lesser of (a) fifty percent (50%) of the Shared Risk Budget
surplus, or (b) an amount not to exceed *** of the annual gross PPG Capitation.
Subject to Section 4.3 of the Agreement, the Shared Risk Budget surplus shall
be offset against any amounts payable by PPG. Any surplus remaining shall be
paid to PPG by April 30 of the following year.


 


3.4          Shared
Risk Budget Deficit.  In the event of a Shared Risk Budget
deficit, PPG’s share of the deficit shall be limited to the lesser of (a) ***
of the Shared Risk Budget deficit, or (b) an


 


30

















 


amount
not to exceed *** of the annual gross PPG Capitation. Subject to Section 4.3,
of the Agreement, any amounts payable by PPG shall be offset against the
Withhold Fund and any other amounts payable by HMO.


 


3.5          Shared
Risk Reinsurance.  PPG shall participate in the Shared Risk Reinsurance
Program. The cost to PPG for such participation shall be calculated as follows:


 


(a)           Out-of-Area Emergency and Urgently
Needed Services: *** of Shared Risk Budget.


 


Out-of-Area
Emergency and Urgently Needed Services are reimbursed at *** of allowed amount,
and the remaining *** shall be charged against the Shared Risk Budget.


 


(b)           In-Area Shared Risk Services: *** %
of Shared Risk Budget.


 


The
cost of in-area Shared Risk services utilized by a Member in a Reconciliation
Period shall be charged against the Shared Risk Budget as follows: *** of any
amount over *** up to *** and *** of any amount over ***.


 


4.             AIDS,
and Transplant Reinsurance Premium.  As
further defined in Section B.4 of this Addendum B, the Reinsurance Program rates, as set forth below, shall be
deducted from PPG’s Capitation:


 


	
  •

  	
   

  	
  AIDS Reinsurance

  	
   

  	
  $ *** PMPM

  
	
  •

  	
   

  	
  Transplant Reinsurance

  	
   

  	
  $ *** PMPM

  



 


5.             Insured
Service(s).  In the event that a Member new to HMO is
assigned to PPG and gives birth within six (6) months of such assignment, HMO
shall pay PPG a flat fee of eight hundred dollars ($800.00) for such Member’s
delivery. This fee shall be in addition to the Capitation for such Member,
provided that the delivery services were rendered by a contracted physician of
the PPG.


 


D.                          INDIVIDUAL HMO.


 


1.             Professional
Capitation Rates.


 


1.1          Capitation
Rates.  PPG Capitation for Individual HMO Members
shall be determined on a monthly basis by multiplying the following normalized
PMPM rates by the age, sex and benefit plan factors set forth in Addendum B for
each assigned Member.  Normalized PMPM
rates represent the PMPM prior to the adjustment for PPG’s assigned Members’
age, sex and benefit plan. Actual PPG gross Capitation shall fluctuate from
month to month to the extent that PPG’s age, sex and benefit plan mix
fluctuates.


 


	
  Period

  	
   

  	
  Individual

  HMO

  	
   

  
	
  January 1, 1998 to June 30, 1998

  	
   

  	
  $

  	
   *** PMPM

  	
   

  
	
  July 1, 1998 to August 31, 1998

  	
   

  	
  $

  	
   *** PMPM

  	
   

  
	
  September 1, 1998

  	
   

  	
  $  PMPM

  (See Section A8 above)

  	
   

  



 


31

















 


2.             Professional
Stop Loss Program.


 


PPG
elects not to participate in the Professional Stop Loss Program. PPG shall
provide HMO with proof of Professional Stop Loss coverage.


 


3.             Shared
Risk Program.  PPG shall participate in an incentive
program for Shared Risk Services which shall reward PPG for effectively
coordinating such care. Under this Program, a budget shall be established for
Shared Risk Services, and the actual cost of such services shall be compared to
the budget. In 1998 HMO shall transition from flat Shared Risk Budgets to
budgets adjusted by age, sex and benefit plan.


 


3.1          Shared
Risk Budget. Each
month from January to June 1998, HMO shall fund the Shared Risk Budget for
Individual HMO Members, at the flat PMPM rate as set forth below. Starting in
July 1998, HMO shall fund the Shared Risk Budget for Members, with normalized
rates. These normalized rates shall be adjusted for PPG’s assigned Members by
the age, sex and benefit plan factors as set forth in Addendum B. Actual Shared
Risk Budget shall fluctuate from month to month to the extent that PPG’s age,
sex and benefit plan mix fluctuates.


 


	
  Period

  	
   

  	
  Individual

  HMO

  	
   

  
	
  January 1, 1998
  to June 30, 1998

  	
   

  	
  $  *** PMPM

  	
   

  
	
  July 1, 1998 to
  August 31,1998

  	
   

  	
  $  PMPM

  (See Section A7 above)

  	
   

  
	
  September 1,
  1998

  	
   

  	
  $  PMPM

  (See Section A8 above)

  	
   

  



 


3.2          Shared
Risk Administration.  As a contingency for any PPG liability under
this Shared Risk Program, HMO shall deduct zero percent (0 %) of PPG’s
Capitation for Individual Members and place such amount in the Withhold Fund as
described in the Agreement.


 


In
the event the claims for Shared Risk Services exceed Shared Risk Revenue at the
interim settlement date., HMO may, at its sole discretion, deduct up to *** of
PPG’s Capitation for Individual HMO Members and place such amount in the
Withhold Fund as described in this Agreement, and may continue such withhold
until the final Shared Risk settlement. The Withhold fund shall accrue interest
which shall be the lower of *** the prime interest rate as stated in the Wall
Street Journal, on the last business day in December of the contract year.


 


If,
upon final Shared Risk settlement, (i) a Shared Risk gain exists, HMO shall
refund the Withhold Fund, plus accrued interest, to PPG together with the PPG’s
share of the gain, or (ii) a Shared Risk deficit exists, subject to Section
4.3, of the Agreement, HMO shall offset the Withhold Fund against PPG’s
outstanding liability or any other amounts payable to HMO. Any amount in the
Withhold Fund not offset against such PPG liability shall be refunded to PPG at
the final Risk Sharing settlement. However, as a contingency for any PPG
liability under this Shared Risk Program, HMO shall continue, at its sole
discretion, to deduct up to *** of PPG’s Capitation for Individual HMO Members
and place such amount in the Withhold Fund as described in this Agreement.


 


Each
Reconciliation Period, HMO shall calculate Shared Risk Claims in accordance
with the Operations Manual and compare such claim cost to the corresponding
Shared Risk Budget. HMO shall perform both an interim and final settlement. In
the event that such claims are less than the Shared Risk Budget for the Interim
Period, PPG’s share of the settlement shall be *** subject to Section 4.3 of
this Agreement.


 


Shared
Risk Claims with dates of service within the Reconciliation Period and paid by
March 31


 


32

















 


of
the following year shall be used in the calculation. Shared Risk Services
incurred within the Reconciliation Period but paid after March 31 of the
following year will be included in the next Reconciliation Period calculation.
In the event any amounts remain in the Withhold Fund following the
reconciliation of any shared risk program, those excess funds shall be paid to
PPG by April 30 of the following year.


 


3.3          Shared
Risk Budget Surplus.  In the event of a Shared Risk Budget
surplus, PPG’s share of the surplus shall be limited to the lesser of (a) ***
of the Shared Risk Budget surplus, or (b) an amount not to exceed *** of the
annual gross PPG Capitation. Subject to Section 4.3 of the Agreement, the
Shared Risk Budget surplus shall be offset against any amounts payable by PPG.
Any surplus remaining shall be paid to PPG by April 30 of the following year.


 


3.4          Shared
Risk Budget Deficit.  In the event of a Shared Risk Budget
deficit, PPG’s share of the deficit shall be limited to the lesser of (a) fifty
percent (50%) of the Shared Risk Budget deficit, or (b) an amount not to exceed
*** of the annual gross PPG Capitation. Subject to Section 4.3, of the
Agreement, any amounts payable by PPG shall be offset against the Withhold Fund
and any other amounts payable by HMO.


 


3.5          Shared
Risk Reinsurance.  PPG shall participate in the Shared Risk
Reinsurance Program. The cost to PPG for such participation shall be calculated
as follows:


 


(a)           Out-of-Area Emergency and Urgently
Needed Services: *** Shared Risk Budget.


 


Out-of-Area
Emergency and Urgently Needed Services are reimbursed at *** of allowed amount,
and the remaining *** shall be charged against the Shared Risk Budget.


 


(b)           In-Area Shared Risk Services: ***
Shared Risk Budget.


 


The
cost of in-area Shared Risk services utilized by a Member in a Reconciliation
Period shall be charged against the Shared Risk Budget as follows:   *** of any amount over *** up to ***; and
*** any amount over ***


 


4.             AIDS,
and Transplant Reinsurance Premium.  As
further defined in Section B.4 of this Addendum B, the Reinsurance Program
rates, as set forth below, shall be deducted from PPG’s Capitation:


 


	
  •

  	
   

  	
  AIDS Reinsurance

  	
   

  	
  $  ***  PMPM

  
	
  •

  	
   

  	
  Transplant Reinsurance

  	
   

  	
  $  ***  PMPM

  



 


5.             Insured
Service(s).  In the event that a Member new to HMO is
assigned to PPG and gives birth within six (6) months of assignment, HMO shall
pay PPG a flat fee of eight-hundred dollars ($800.00) for such Member’s
delivery. This fee shall be payable in addition to the Capitation for such
Member provided the delivery services were rendered by a contracted physician
of the PPG.


 


E.             ACCESS FOR INFANTS AND MOTHERS.  The
Access for Infants and Mothers (“AIM”) Program provides health care coverage to
low-income women, pursuant to state law, who are pregnant but without insurance
for  such pregnancy. The AIM
Program is funded by the State through Proposition 99 Cigarette and Tobacco Tax
Revenue. At such time PPG is certified by the State for participation in the
AIM Program, PPG shall provide Covered Services for AIM Members as set forth in
the Operations Manual.


 


1.             Compensation.  HMO
shall pay PPG a flat fee of ***


 


33

















 


(***) for each adult AIM
Member to cover the professional services related to the birth of an infant. In
addition to this flat fee, HMO shall pay PPG *** PMPM for each adult AIM Member
enrolled in the AIM Program. HMO shall pay PPG *** PMPM during the first year
of life for each infant AIM Member and *** PMPM during the second year of life.


 


2.             Reinsurance
Programs.  PPG’s professional stop loss level shall be
*** per AIM Member. The professional stop loss level shall be provided to the
PPG for AIM Members at no cost. All other terms and conditions of the Agreement
regarding Professional Stop Loss shall apply to AIM Members.


 


AIM
Members shall not be included in the AIDS Reinsurance Program, the Transplant
Reinsurance Program, or the Transfer Reinsurance Program.


 


3.             Shared
Risk Programs.  HMO shall be solely responsible for all
Shared Risk services and for pharmacy benefit costs of AIM Members.


 


F.             MEDICARE SUPPLEMENT. The Medicare Supplement Benefits Programs are
provided to Members who have primary coverage through Medicare. Capitation for
Members enrolled in such Benefit Programs compensates PPG for Copayments that
would be normally a Member’s responsibility under Medicare.


 


1.             Capitation
Rates.  PPG Capitation rates for Medicare Supplement
Members shall be at the following PMPM levels, subject to age, sex and benefit
plan factors set forth in Addendum B:


 


	
  Period

  	
   

  	
  Medicare
  Supplement

  HMO

  	
   

  	
  Medicare
  Supplement

  POS

  	
   

  
	
  January 1, 1998 to June 30, 1998

  	
   

  	
  $  *** PMPM

  	
   

  	
  $  *** PMPM

  	
   

  
	
  July 1, 1998 to August 31, 1998

  	
   

  	
  $  *** PMPM

  	
   

  	
  $  *** PMPM

  	
   

  
	
  September 1, 1998

  	
   

  	
  $  PMPM

  (See Section A8 above)

  	
   

  	
  $  PMPM

  (See Section A8 above)

  	
   

  



 


2.             Reinsurance
Programs.  Medicare Supplement Members shall not be
included in the Professional Stop Loss Program, the AIDS Reinsurance Program,
and the Transplant Reinsurance Program.


 


3.             Shared
Risk Program.  HMO shall be solely responsible for all
Shared Risk services and for pharmacy benefit costs of Medicare Supplement
Members.


 


G.            COMMERCIAL POS.


 


1.             Commercial
POS Benefit Program.  Under a POS Benefit Program, Members may elect, at the time of obtaining each Covered
Service, to utilize: (i) HMO coverage through PPG; (ii) coverage by
self-referring to any PPO Provider; or (iii) indemnity coverage for
self-referring to non-Participating Providers in accordance with Benefit
Program requirements. Standard HMO Members, Small Group HMO Members, Individual
HMO Members, and Flex Funded HMO Members may be eligible for Commercial POS
Benefit Programs.


 


2.             Definitions.


 


2.1          In-Network
Services.  PPG Capitated Services and Shared Risk
Services provided or


 


34

















 


arranged through PPG.


 


2.2          Out-of-Network
Services.  In accordance with Benefit Program
requirements, Covered Services provided as a result of a Member’s self-referral
to a PPG or HMO Provider or to a non-Participating Provider. Out-of-Network
Services may be provided in area or out of area.


 


3.             Compensation. 
Compensation to PPG for Commercial POS Members shall include: a) PPG
professional Capitation for In-Network professional services, b) any surplus
resulting from the Professional Out-of-Network Shared Risk Program, and c) any
surplus resulting from the Institutional In-Network and Out-of-Network Shared
Risk Program.


 


4.             Professional
Capitation Rate.  In 1998, PPG shall be compensated for
rendering professional In-Network Services to Commercial POS Members at the
PMPM amounts set forth for Commercial HMO Members, less a *** withhold
(Professional Capitation). This Withhold shall partially fund the Professional
Out-of-Network Budget.


 


5.             Professional
Out-of-Network Risk Sharing Program.  The
budget for this Program shall be equal to the sum of the following two
components: 1) The Professional Out-of-Network Withhold as described in Section
4 above, and 2) an amount equal to *** of the Commercial POS Professional
Capitation prior to withhold.


 


Each
year, HMO shall settle the risk sharing program by calculating the difference
between the budget and the actual claims. If a surplus remains, PPG’s share
shall be *** subject to Section 4.3. PPG shall not be subject to any downside.


 


6.             Institutional Shared Risk
Program.


 


6.1          POS
Shared Risk Budgets.
The budgets shall be determined for each Commercial POS population: Standard
POS, Small Group POS and, at a later date, Individual POS Members. Each Budget
shall cover In-Network, Out-of-Network and Out-of-Area Shared Risk Services.
The Shared Risk Budgets effective January 1, 1998 shall be a flat amount. Each
of the Shared Risk Budgets shall be equal to the HMO Shared Risk Budget, or
institutional capitation PMPM, if applicable, and multiplied by ***.


 


	
  Period

  	
   

  	
  Standard
  HMO Shared

  Risk

  + 10%

  	
   

  	
  Small
  Group HMO

  Shared Risk

  + 10%

  	
   

  	
  Individual
  HMO

  Shared Risk

  + 10%

  	
   

  
	
  January 1, 1998
  to June 30, 1998

  	
   

  	
  $  *** PMPM

  	
   

  	
  $  *** PMPM

  	
   

  	
  $  ***PMPM

  	
   

  
	
  July 1, 1998 to
  August 31, 1998

  	
   

  	
  $  PMPM

  (See Section A7 above)

  	
   

  	
  $  PMPM

  (See Section A7 above)

  	
   

  	
  $  PMPM

  (See Section A7 above)

  	
   

  
	
  September 1,
  1998

  	
   

  	
  $  PMPM

  (See Section A8 above)

  	
   

  	
  $  PMPM

  (See Section A8 above)

  	
   

  	
  $  PMPM

  (See Section A8 above)

  	
   

  



 


6.2          POS
Shared Risk Administration. Each Reconciliation Period, HMO shall calculate Shared Risk Claims in
accordance with the Operations Manual and compare such claim cost to the
corresponding Shared Risk Budget. HMO shall perform both an interim and final
settlement. In the event any amounts remain in the Withhold Fund following the
reconciliation of any shared risk program, those excess funds shall be paid to
PPG by April 30 of the following year. In the event that such claims are less
than the Shared Risk Budget for the Interim Period, PPG’s share of the
settlement shall be ***, subject to Section 4.3 of this Agreement.


 


Shared
Risk Claims with dates of service within the Reconciliation Period and paid by
March 31


 


35

















 


of the following year shall
be used in the calculation.  Shared Risk
Services incurred within the Reconciliation Period but paid after March 31 of
the following year will be included in the next Reconciliation Period
calculation.


 


6.3          POS
Shared Risk Budget Surplus.  In the event of a POS Shared
Risk Budget surplus, PPG’s share of the surplus shall be of *** or an amount
not to exceed *** of the annual gross PPG Capitation.


 


6.4          POS
Shared Risk Budget Deficit.  In the event of a POS Shared
Risk Budget deficit, PPG shall not be liable for the deficit.


 


6.5          POS
Shared Risk Reinsurance.  PPG shall participate in the
POS Shared Risk Reinsurance Program which provides reinsurance for In-Network
and Out-of-Network services. The cost to PPG for the POS Shared Risk
Reinsurance Program shall be calculated as follows:


 


(a)           Out-of-Area Emergency and Urgently
Needed Services: *** of POS Shared Risk Budget.


 


Out-of-Area
Emergency and Urgently Needed Services shall be reimbursed at *** of cost, and
the remaining *** of the cost shall be charged against the POS Shared Risk
Budget.


 


(b)           In-Network and Out-of-Network POS
Shared Risk Services: 1.6 % of POS Shared Risk Budget.


 


The
cost of In-Network and Out-of-Network POS Shared Risk Services during the
Reconciliation Period shall be charged against the POS Shared Risk Budget as
follows:  *** of any amount over *** up
to *** and *** of any amount over ***.


 


7.             Professional
Stop Loss Program.  The Professional Stop Loss Program includes
coverage for In- Network Services, an optional program, as well as for
Out-of-Network Services, a program in which PPG’s participation is required.


 


(a)           In-Network Professional Stop Loss.


 


PPG elects not to participate
in the Professional Stop Loss Program. 
PPG shall provide HMO with proof of Professional Stop Loss coverage.


 


(b)           Out-of-Network Professional Stop
Loss.  PPG’s Out-of-Network Professional
Stop Loss threshold shall be *** per Commercial POS Member during the calendar
year. The cost to PPG for the Out-of-Network Professional Stop Loss program
shall be $ *** PMPM, which, shall be deducted from PPG’s Out-of-Network Risk
Sharing Budget.


 


8.             AIDS
and Transplant Reinsurance.  As further defined in Section
B.4 of this Addendum, the 1998 AIDS Reinsurance rate shall be $ *** PMPM, which
shall be deducted from PPG’s Capitation and $ 0.19 PMPM shall be deducted from
PPG’s Professional Out-of-Network Risk Sharing Budget. For the subsequent
years, these deductions shall fluctuate to correspond with the Professional
Out-of-Network Withhold percentage change. The 1998 Transplant Reinsurance
Program rate shall be $ *** MPM, which, shall be deducted from PPG’s Capitation
and $ *** PMPM shall be deducted from PPG’s Professional Out-of-Network Risk
Sharing Budget. The Transplant Reinsurance Program’s deductions for subsequent
years shall also fluctuate to correspond with the Professional Out-of-Network
Withhold percentage change.


 


36

















 


H.            Partnership Bonus.  PPG
shall receive a Partnership Bonus in the calendar years 1999 and 2000 if HMO
achieves profitability levels defined below. Such Partnership Bonus shall be in
the form of a lump sum payment, payable no later than May 31,1999 and May 31,
2000.


 


HMO
shall report to the Department of Corporations (“DOC”) HMO’s calendar year-end
financial results no later than April 30th of each year for the prior calendar
year.  HMO’s Net After Tax Income PMPM
from the most recent year-end shall be compared with that from the preceding
year. Calculation of the Partnership Bonus shall be determined as follows:


 


(a)           “Net Income” for the most recent
year-end and the preceding year-end as reported on Line 31 of DOC Report #2,
Statement of Revenue, Expenses and Net Worth (“Report 2”) shall be used.


 


(b)           Net Income for each year shall be
divided by the applicable annual Member months as reported on Report 2 to
derive Net After Tax Income PMPM.


 


(c)           When HMO’s Net After Tax Income PMPM
of the most recent year is more than five percent (5%) greater than HMO’s Net
After Tax Income PMPM of the preceding year (as calculated to the fourth
decimal point), HMO shall fund the Partnership Bonus equal to twenty-five
percent (25%) of the incremental Net After Tax Income PMPM of the most recent year.


 


(d)           This bonus PMPM multiplied by PPG’s
annual Member months for all Commercial HMO and Commercial POS Members shall
equal PPG’s lump sum payment.


 


In
the event year-end data is inconsistent or incomparable due to, but not limited
to, changes in reporting requirements, extraordinary items, or future margin
activity, HMO reserves the right to adjust the methodology to ensure
comparability. Such adjustments, when necessary, shall be reviewed and approved
by an external financial auditor selected by HMO (“Independent Opinion”). HMO
shall provide PPG information supporting the above calculation and, when
applicable, an Independent Opinion by May 31, 1999 and May 31, 2000.


 


I.              Quality of Care Improvement Program
(QCIP).  QCIP, as further described in the Operations
Manual, rewards PPG for meeting and exceeding quality standards and Member
satisfaction levels. PPG shall be eligible for a lump sum award, if performance
is achieved in all categories. The PMPM award set forth below shall be
multiplied by PPG’s Member months for Standard HMO, Small Group HMO, Individual
HMO and Flex Funded Benefit Programs. The lump sum award shall be payable in
September following the calendar year in which the measurements were taken.


 




	
  Calendar
  Year

  	
   

  	
  Award

  	
   

  
	
  1998

  	
   

  	
  Up to $*** PMPM

  	
   

  
	
  1999

  	
   

  	
  Up to $*** PMPM

  	
   

  
	
  2000

  	
   

  	
  Up to $***PMPM

  	
   

  






 


The
Aim for Wellness Program, shall be a component of QCIP. The above PMPM award
includes funding for the Aim for Wellness Program. In 1998, Compensation for
the Aim for Wellness Program shall be payable at $*** PMPM and shall be
distributed to PPG monthly with Capitation. HMO reserves the right to alter
components and measurements of QCIP annually.


 


J.             Pharmacy Shared Risk Program.  The
Pharmacy Shared Risk Program shall be applicable to the following Members:
Standard HMO, Flex Funded HMO, Small Group HMO, and Individual HMO.


 


37

















 


1.             Pharmacy
Budget.  In accordance with the formula outlined in
Section 2 below, PPG’s Pharmacy Budget shall be the percent as set forth below
of the difference between PPG’s actual normalized pharmacy costs and the actual
pharmacy costs experienced by those participating physician group.  Physician groups comprising the top third of
lowest PEMPM normalized costs.  For
eligible Commercial HMO Members, each month, HMO shall fund the 1998 Pharmacy
Budget at $ 13.36 per eligible Member per month (“PEMPM”) subject to the age,
sex and benefit plan factors set forth in Addendum B.


 


2.               1999
and 2000 Pharmacy Budget.  Each year the Pharmacy Budget
shall be adjusted according to the aggregate PEMPM dollar change experience by
those participating physician groups comprising the top third of the lowest
PEMPM normalized pharmacy costs and the percentage set forth below. Such
adjustment shall occur prior to calculating the final settlement for the
Pharmacy Reconciliation, as set forth in this Addendum. Any Calculation of the
normalized pharmacy costs shall be based upon actual claims. The top third
calculation shall be weighed by eligible Member months.


 




	
  Pharmacy Budget

  Year

  	
   

  	
  Percent
  Difference

  	
   

  
	
  1998

  	
   

  	
  ***

  	
   

  
	
  1999

  	
   

  	
  ***

  	
   

  
	
  2000

  	
   

  	
  ***

  	
   

  






 


3.             Pharmacy
Reconciliation For Commercial HMO Members.  For
each Reconciliation Period, HMO shall calculate pharmacy claims subject this
Program as outlined in the Operations Manual. HMO shall compare such claims to
the corresponding Pharmacy Budget.  In
the event pharmacy claims are less than the Pharmacy Budget, PPG’s share of the
Pharmacy Budget surplus shall be fifty percent (50%). In the event pharmacy
claims exceed the Pharmacy Budget, PPG’s share of the Pharmacy Budget deficit
shall be fifty percent (50%).


 


HMO
shall perform an interim and final settlement for the Pharmacy Risk Sharing
Program. The timing of these settlements shall correspond to the interim and
final settlements of other risk sharing programs. Subject to Section 4.3 of
this Agreement, any Pharmacy Budget deficit shall be offset against any amounts
payable by HMO, or any amounts remaining in the Withhold Fund, or shall be
offset against Capitation.


 


K.            Pharmacy Rebate Program.  The
Pharmacy Rebate Program, as set forth in the Operations Manual, permits the
sharing of calendar year pharmaceutical rebates (“Annual Rebates”).


 


HMO
shall multiply the Annual Rebates by an annually-determined percentage (“Rebate
Percentage”) to establish the Rebate Fund. HMO shall divide the Rebate Fund by
the total number of Commercial HMO Members eligible for a pharmacy benefit to
determine the Rebate PEMPM. On or before December 15th of each year,
HMO shall notify PPG of the Rebate Percentage.


 


PPG
is eligible for a lump sum award as determined and identified below. Such sum
is payable in April following the calendar year of the Rebate Fund, beginning
April 1999.  PPG’s PEMPM award shall be
determined by PPG’s cost performance relative to other participating physician
groups. Cost performance shall be determined by the normalized pharmacy cost
for each calendar year for each participating physician groups. Three
performance tiers shall be established; each tier shall represent approximately
one-third of the total Commercial HMO Members, provided, however, that any
participating physician group with assigned Commercial HMO Members less than
*** or exceeding  *** annual Member months
shall be excluded from the tier determination. PPG’s PEMPM award for eligible
Commercial HMO Members shall be as follows based upon PPG’s tier ranking:


 


	
  Tier

  	
   

  	
  Award

  	
   

  
	
  Lowest
  Normalized Pharmacy Costs

  	
   

  	
  ***
  of Rebate PEMPM  

  	
   

  
	
  Middle
  Normalized Pharmacy Costs  

  	
   

  	
  ***
  of Rebate PEMPM  

  	
   

  
	
  Highest
  Normalized Pharmacy Costs  

  	
   

  	
  ***
  of Rebate PEMPM  

  	
   

  



 


38

















 


 


ADDENDUM B.1


 


AGE, SEX AND BENEFIT PLAN FACTORS


 


The
age, sex and benefit plan factors shall be developed by HMO based upon
actuarial assumptions consistent with existing actuarial assumptions and HMO’s
utilization experience. Such factors, as updated approximately every three
years to reflect changing demographic and utilization patterns, shall be
forwarded to PPG and are incorporated into this Agreement by reference.


 


A. Age, Sex and Benefit Plan Factors for PPG Capitation and
Shared Risk Budgets:


A.1
Age, Sex Factors for PPG Capitation and Hospital Capitation Shared Risk Budgets
Effective January 1, 1998 through


 


39

















 


August 31,1998


 




	
  Sex

  	
   

  	
  Age

  	
   

  	
  Prof

  Factor

  	
   

  	
  Inst

  Factor

  	
   

  
	
  Female

  	
   

  	
  0

  	
   

  	
  1.774

  	
   

  	
  3.843

  	
   

  
	
   

  	
   

  	
  1

  	
   

  	
  0.664

  	
   

  	
  0.463

  	
   

  
	
   

  	
   

  	
  2 - 4

  	
   

  	
  0.493

  	
   

  	
  0.370

  	
   

  
	
   

  	
   

  	
  5 - 9

  	
   

  	
  0.436

  	
   

  	
  0.382

  	
   

  
	
   

  	
   

  	
  10 - 14

  	
   

  	
  0.399

  	
   

  	
  0.390

  	
   

  
	
   

  	
   

  	
  15 - 19

  	
   

  	
  0.421

  	
   

  	
  0.418

  	
   

  
	
   

  	
   

  	
  20 - 24

  	
   

  	
  0.902

  	
   

  	
  0.999

  	
   

  
	
   

  	
   

  	
  25 - 29

  	
   

  	
  1.525

  	
   

  	
  1.664

  	
   

  
	
   

  	
   

  	
  30 - 34

  	
   

  	
  1.543

  	
   

  	
  1.478

  	
   

  
	
   

  	
   

  	
  35 - 39

  	
   

  	
  1.547

  	
   

  	
  1.281

  	
   

  
	
   

  	
   

  	
  40 - 44

  	
   

  	
  1.567

  	
   

  	
  1.272

  	
   

  
	
   

  	
   

  	
  45 - 49

  	
   

  	
  1.630

  	
   

  	
  1.293

  	
   

  
	
   

  	
   

  	
  50 - 54

  	
   

  	
  1.712

  	
   

  	
  1.448

  	
   

  
	
   

  	
   

  	
  55 - 59

  	
   

  	
  1.982

  	
   

  	
  1.927

  	
   

  
	
   

  	
   

  	
  60 - 64

  	
   

  	
  2.161

  	
   

  	
  2.260

  	
   

  
	
   

  	
   

  	
  65 +

  	
   

  	
  2.251

  	
   

  	
  2.025

  	
   

  
	
   

  	
   

  	
  Medicare Eligible

  	
   

  	
  1.000

  	
   

  	
  1.000

  	
   

  
	
  Male

  	
   

  	
  0

  	
   

  	
  1.774

  	
   

  	
  3.843

  	
   

  
	
   

  	
   

  	
  1

  	
   

  	
  0.664

  	
   

  	
  0.463

  	
   

  
	
   

  	
   

  	
  2 - 4

  	
   

  	
  0.493

  	
   

  	
  0.370

  	
   

  
	
   

  	
   

  	
  5 - 9

  	
   

  	
  0.436

  	
   

  	
  0.382

  	
   

  
	
   

  	
   

  	
  10 - 14

  	
   

  	
  0.399

  	
   

  	
  0.390

  	
   

  
	
   

  	
   

  	
  15 - 19

  	
   

  	
  0.421

  	
   

  	
  0.418

  	
   

  
	
   

  	
   

  	
  20 - 24

  	
   

  	
  0.432

  	
   

  	
  0.447

  	
   

  
	
   

  	
   

  	
  25 - 29

  	
   

  	
  0.492

  	
   

  	
  0.486

  	
   

  
	
   

  	
   

  	
  30 - 34

  	
   

  	
  0.569

  	
   

  	
  0.536

  	
   

  
	
   

  	
   

  	
  35 - 39

  	
   

  	
  0.667

  	
   

  	
  0.673

  	
   

  
	
   

  	
   

  	
  40 - 44

  	
   

  	
  0.780

  	
   

  	
  0.800

  	
   

  
	
   

  	
   

  	
  45 - 49

  	
   

  	
  0.933

  	
   

  	
  0.975

  	
   

  
	
   

  	
   

  	
  50 - 54

  	
   

  	
  1.251

  	
   

  	
  1.415

  	
   

  
	
   

  	
   

  	
  55 - 59

  	
   

  	
  1.625

  	
   

  	
  1.998

  	
   

  
	
   

  	
   

  	
  60 - 64

  	
   

  	
  2.177

  	
   

  	
  2.928

  	
   

  
	
   

  	
   

  	
  65 +

  	
   

  	
  2.276

  	
   

  	
  2.658

  	
   

  
	
   

  	
   

  	
  Medicare Eligible

  	
   

  	
  1.000

  	
   

  	
  1.000

  	
   

  






 


40

















 


A.2 Age,
Sex Factors for PPG Capitation and Hospital Capitation/Shared Risk Budgets


Effective
September 1, 1998


 




	
  Sex

  	
   

  	
  Age

  	
   

  	
  Prof

  Factor

  	
   

  	
  Inst

  Factor

  	
   

  
	
  Child

  	
   

  	
  0

  	
   

  	
  2.008

  	
   

  	
  5.228

  	
   

  
	
   

  	
   

  	
  1

  	
   

  	
  1.075

  	
   

  	
  0.644

  	
   

  
	
   

  	
   

  	
  2 - 4

  	
   

  	
  0.598

  	
   

  	
  0.406

  	
   

  
	
   

  	
   

  	
  5 - 9

  	
   

  	
  0.439

  	
   

  	
  0.296

  	
   

  
	
   

  	
   

  	
  10 - 14

  	
   

  	
  0.418

  	
   

  	
  0.338

  	
   

  
	
   

  	
   

  	
  15 - 19

  	
   

  	
  0.590

  	
   

  	
  0.607

  	
   

  
	
  Female

  	
   

  	
  20 - 24

  	
   

  	
  1.195

  	
   

  	
  1.066

  	
   

  
	
   

  	
   

  	
  25 - 29

  	
   

  	
  1.653

  	
   

  	
  1.431

  	
   

  
	
   

  	
   

  	
  30 - 34

  	
   

  	
  1.509

  	
   

  	
  1.315

  	
   

  
	
   

  	
   

  	
  35 - 39

  	
   

  	
  1.378

  	
   

  	
  1.143

  	
   

  
	
   

  	
   

  	
  40 - 44

  	
   

  	
  1.322

  	
   

  	
  1.031

  	
   

  
	
   

  	
   

  	
  45 - 49

  	
   

  	
  1.386

  	
   

  	
  1.102

  	
   

  
	
   

  	
   

  	
  50 - 54

  	
   

  	
  1.551

  	
   

  	
  1.338

  	
   

  
	
   

  	
   

  	
  55 - 59

  	
   

  	
  1.794

  	
   

  	
  1.741

  	
   

  
	
   

  	
   

  	
  60 - 64

  	
   

  	
  2.090

  	
   

  	
  2.313

  	
   

  
	
   

  	
   

  	
  65 +

  	
   

  	
  2.414

  	
   

  	
  2.907

  	
   

  
	
   

  	
   

  	
  Medicare Eligible

  	
   

  	
  1.000

  	
   

  	
  1.000

  	
   

  
	
  Male

  	
   

  	
  20 - 24

  	
   

  	
  0.398

  	
   

  	
  0.477

  	
   

  
	
   

  	
   

  	
  25 - 29

  	
   

  	
  0.477

  	
   

  	
  0.486

  	
   

  
	
   

  	
   

  	
  30 - 34

  	
   

  	
  0.546

  	
   

  	
  0.506

  	
   

  
	
   

  	
   

  	
  35 - 39

  	
   

  	
  0.626

  	
   

  	
  0.589

  	
   

  
	
   

  	
   

  	
  40 - 44

  	
   

  	
  0.734

  	
   

  	
  0.768

  	
   

  
	
   

  	
   

  	
  45 - 49

  	
   

  	
  0.890

  	
   

  	
  1.087

  	
   

  
	
   

  	
   

  	
  50 - 54

  	
   

  	
  1.139

  	
   

  	
  1.580

  	
   

  
	
   

  	
   

  	
  55 - 59

  	
   

  	
  1.516

  	
   

  	
  2.203

  	
   

  
	
   

  	
   

  	
  60 - 64

  	
   

  	
  2.009

  	
   

  	
  2.880

  	
   

  
	
   

  	
   

  	
  65 +

  	
   

  	
  2.561

  	
   

  	
  3.586

  	
   

  
	
   

  	
   

  	
  Medicare Eligible

  	
   

  	
  1.000

  	
   

  	
  1.000

  	
   

  






 


41

















 


A.3
Benefit Plan Factors for PPG Capitation and Hospital Capitation Effective
January 1,1998


 


	
  Standard
  HMO

  	
   

  
	
  Plan

  	
   

  	
  Prof

  Factor

  	
   

  	
  Inst

  Factor

  	
   

  
	
  HA

  	
   

  	
  1.0740

  	
   

  	
  0.9697

  	
   

  
	
  A1

  	
   

  	
  1.0857

  	
   

  	
  0.9751

  	
   

  
	
  A2

  	
   

  	
  1.0740

  	
   

  	
  0.9806

  	
   

  
	
  A3

  	
   

  	
  1.0831

  	
   

  	
  0.9846

  	
   

  
	
  A4

  	
   

  	
  1.0740

  	
   

  	
  0.9806

  	
   

  
	
  A5

  	
   

  	
  1.0857

  	
   

  	
  0.9782

  	
   

  
	
  A6

  	
   

  	
  1.0039

  	
   

  	
  0.9697

  	
   

  
	
  A7

  	
   

  	
  0.9459

  	
   

  	
  0.9320

  	
   

  
	
  A8

  	
   

  	
  1.0885

  	
   

  	
  1.0408

  	
   

  
	
  A9

  	
   

  	
  1.0411

  	
   

  	
  1.0408

  	
   

  
	
  HB

  	
   

  	
  1.0039

  	
   

  	
  0.8702

  	
   

  
	
  BB

  	
   

  	
  1.0039

  	
   

  	
  0.8709

  	
   

  
	
  B1

  	
   

  	
  0.9007

  	
   

  	
  0.8262

  	
   

  
	
  B2

  	
   

  	
  0.9007

  	
   

  	
  0.8259

  	
   

  
	
  B3

  	
   

  	
  0.9007

  	
   

  	
  0.8262

  	
   

  
	
  B4

  	
   

  	
  0.9027

  	
   

  	
  0.8252

  	
   

  
	
  B5

  	
   

  	
  0.9007

  	
   

  	
  0.8371

  	
   

  
	
  B6

  	
   

  	
  1.0039

  	
   

  	
  0.8812

  	
   

  
	
  B7

  	
   

  	
  0.9732

  	
   

  	
  1.0271

  	
   

  
	
  B8

  	
   

  	
  0.9607

  	
   

  	
  1.0165

  	
   

  
	
  B9

  	
   

  	
  0.9646

  	
   

  	
  1.0408

  	
   

  
	
  HC

  	
   

  	
  1.0840

  	
   

  	
  1.0122

  	
   

  
	
  C1

  	
   

  	
  1.0769

  	
   

  	
  1.0122

  	
   

  
	
  C2

  	
   

  	
  1.0954

  	
   

  	
  1.0238

  	
   

  
	
  C3

  	
   

  	
  1.0067

  	
   

  	
  1.0122

  	
   

  
	
  C6

  	
   

  	
  1.0095

  	
   

  	
  1.0408

  	
   

  
	
  C7

  	
   

  	
  1.0840

  	
   

  	
  1.0232

  	
   

  
	
  C8

  	
   

  	
  0.9459

  	
   

  	
  0.9755

  	
   

  
	
  C9

  	
   

  	
  0.9047

  	
   

  	
  1.0408

  	
   

  
	
  HD

  	
   

  	
  1.1158

  	
   

  	
  1.0232

  	
   

  
	
  D1

  	
   

  	
  1.0769

  	
   

  	
  1.0232

  	
   

  
	
  D2

  	
   

  	
  1.0249

  	
   

  	
  1.0290

  	
   

  
	
  D3

  	
   

  	
  0.9007

  	
   

  	
  0.8259

  	
   

  
	
  D4

  	
   

  	
  0.9493

  	
   

  	
  0.8696

  	
   

  
	
  D5

  	
   

  	
  0.9575

  	
   

  	
  0.9806

  	
   

  
	
  D6

  	
   

  	
  0.9459

  	
   

  	
  0.9548

  	
   

  
	
  D7

  	
   

  	
  0.9655

  	
   

  	
  1.0326

  	
   

  
	
  D8

  	
   

  	
  1.0274

  	
   

  	
  1.0220

  	
   

  
	
  D9

  	
   

  	
  1.0456

  	
   

  	
  1.0442

  	
   

  
	
  HE

  	
   

  	
  1.0320

  	
   

  	
  1.0417

  	
   

  
	
  E1

  	
   

  	
  1.0166

  	
   

  	
  0.9761

  	
   

  
	
  E2

  	
   

  	
  0.9860

  	
   

  	
  1.0408

  	
   

  
	
  E3

  	
   

  	
  1.0067

  	
   

  	
  0.9806

  	
   

  
	
  E4

  	
   

  	
  0.9487

  	
   

  	
  0.9934

  	
   

  
	
  E5

  	
   

  	
  1.0522

  	
   

  	
  1.0439

  	
   

  
	
  E6

  	
   

  	
  0.9587

  	
   

  	
  0.9761

  	
   

  
	
  E7

  	
   

  	
  0.9942

  	
   

  	
  1.0439

  	
   

  
	
  E8

  	
   

  	
  1.0178

  	
   

  	
  1.0238

  	
   

  
	
  E9

  	
   

  	
  0.9735

  	
   

  	
  0.9806

  	
   

  
	
  EA

  	
   

  	
  0.9715

  	
   

  	
  1.0372

  	
   

  
	
  EB

  	
   

  	
  0.9036

  	
   

  	
  0.8192

  	
   

  
	
  EC

  	
   

  	
  0.9607

  	
   

  	
  1.0408

  	
   

  
	
  ED

  	
   

  	
  1.0053

  	
   

  	
  0.9940

  	
   

  
	
  EE

  	
   

  	
  1.0078

  	
   

  	
  0.9831

  	
   

  
	
  EF

  	
   

  	
  1.0479

  	
   

  	
  1.0442

  	
   

  
	
  EG

  	
   

  	
  0.9999

  	
   

  	
  1.0442

  	
   

  
	
  EH

  	
   

  	
  0.9490

  	
   

  	
  1.0226

  	
   

  
	
  EI

  	
   

  	
  0.9914

  	
   

  	
  0.9794

  	
   

  
	
  EJ

  	
   

  	
  1.0578

  	
   

  	
  1.0499

  	
   

  
	
  EK

  	
   

  	
  0.9180

  	
   

  	
  1.0408

  	
   

  
	
  EL

  	
   

  	
  1.0522

  	
   

  	
  0.9779

  	
   

  
	
  EM

  	
   

  	
  0.9490

  	
   

  	
  1.0475

  	
   

  
	
  EN

  	
   

  	
  0.9797

  	
   

  	
  0.9767

  	
   

  
	
  EO

  	
   

  	
  0.9749

  	
   

  	
  0.9961

  	
   

  
	
  EP

  	
   

  	
  0.9334

  	
   

  	
  0.9764

  	
   

  
	
  EQ

  	
   

  	
  0.9769

  	
   

  	
  1.0274

  	
   

  
	
  ES

  	
   

  	
  0.9729

  	
   

  	
  1.0436

  	
   

  
	
  HF

  	
   

  	
  0.9618

  	
   

  	
  1.0071

  	
   

  
	
  F1

  	
   

  	
  1.0161

  	
   

  	
  1.0095

  	
   

  
	
  F2

  	
   

  	
  1.0166

  	
   

  	
  0.9779

  	
   

  
	
  F3

  	
   

  	
  1.0070

  	
   

  	
  0.9806

  	
   

  
	
  F4

  	
   

  	
  0.9808

  	
   

  	
  1.0332

  	
   

  
	
  F5

  	
   

  	
  1.0218

  	
   

  	
  0.9812

  	
   

  
	
  F6

  	
   

  	
  1.0070

  	
   

  	
  1.0408

  	
   

  
	
  F7

  	
   

  	
  1.1087

  	
   

  	
  0.9925

  	
   

  
	
  F8

  	
   

  	
  0.9050

  	
   

  	
  0.9697

  	
   

  
	
  F9

  	
   

  	
  1.0522

  	
   

  	
  1.0445

  	
   

  
	
  FA

  	
   

  	
  1.0269

  	
   

  	
  1.0341

  	
   

  
	
  FB

  	
   

  	
  1.0277

  	
   

  	
  1.0487

  	
   

  
	
  FC

  	
   

  	
  1.0164

  	
   

  	
  1.0372

  	
   

  
	
  FD

  	
   

  	
  1.0309

  	
   

  	
  1.0366

  	
   

  
	
  FE

  	
   

  	
  0.9635

  	
   

  	
  1.0341

  	
   

  
	
  FF

  	
   

  	
  0.9703

  	
   

  	
  1.0396

  	
   

  
	
  FG

  	
   

  	
  0.9635

  	
   

  	
  1.0016

  	
   

  
	
  FH

  	
   

  	
  0.9712

  	
   

  	
  1.0341

  	
   

  
	
  FI

  	
   

  	
  0.9749

  	
   

  	
  1.0341

  	
   

  
	
  FJ

  	
   

  	
  0.9203

  	
   

  	
  1.0341

  	
   

  
	
  FK

  	
   

  	
  0.9749

  	
   

  	
  0.9885

  	
   

  
	
  FL

  	
   

  	
  0.9203

  	
   

  	
  0.9572

  	
   

  
	
  HG

  	
   

  	
  1.0039

  	
   

  	
  0.9697

  	
   

  
	
  G1

  	
   

  	
  0.9459

  	
   

  	
  0.9697

  	
   

  
	
  G2

  	
   

  	
  1.0039

  	
   

  	
  0.9806

  	
   

  
	
  G3

  	
   

  	
  1.0155

  	
   

  	
  0.9806

  	
   

  
	
  G4

  	
   

  	
  0.9459

  	
   

  	
  0.9806

  	
   

  
	
  G5

  	
   

  	
  0.8965

  	
   

  	
  0.9694

  	
   

  
	
  G6

  	
   

  	
  1.0164

  	
   

  	
  1.0211

  	
   

  
	
  G9

  	
   

  	
  1.0039

  	
   

  	
  0.9806

  	
   

  
	
  I3

  	
   

  	
  0.9644

  	
   

  	
  1.0442

  	
   

  
	
  I4

  	
   

  	
  0.9007

  	
   

  	
  0.8377

  	
   

  
	
  I5

  	
   

  	
  0.9553

  	
   

  	
  1.0113

  	
   

  
	
  I6

  	
   

  	
  1.0448

  	
   

  	
  0.9551

  	
   

  
	
  I7

  	
   

  	
  1.0513

  	
   

  	
  1.0411

  	
   

  
	
  I8

  	
   

  	
  0.9573

  	
   

  	
  1.0268

  	
   

  
	
  I9

  	
   

  	
  0.9891

  	
   

  	
  1.0408

  	
   

  
	
  J3

  	
   

  	
  1.0294

  	
   

  	
  0.9879

  	
   

  
	
  J4

  	
   

  	
  1.0294

  	
   

  	
  0.9879

  	
   

  
	
  J5

  	
   

  	
  1.0130

  	
   

  	
  0.9809

  	
   

  
	
  J6

  	
   

  	
  0.9766

  	
   

  	
  0.9800

  	
   

  
	
  J7

  	
   

  	
  0.9806

  	
   

  	
  1.0305

  	
   

  
	
  J8

  	
   

  	
  0.9729

  	
   

  	
  0.9852

  	
   

  
	
  J9

  	
   

  	
  1.1604

  	
   

  	
  1.0667

  	
   

  
	
  HK

  	
   

  	
  1.0840

  	
   

  	
  1.0411

  	
   

  
	
  K1

  	
   

  	
  1.0138

  	
   

  	
  1.0411

  	
   

  
	
  K2

  	
   

  	
  0.9720

  	
   

  	
  0.9806

  	
   

  
	
  K3

  	
   

  	
  1.0237

  	
   

  	
  1.0414

  	
   

  
	
  K4

  	
   

  	
  1.0956

  	
   

  	
  1.0411

  	
   

  
	
  K6

  	
   

  	
  0.9698

  	
   

  	
  1.0420

  	
   

  
	
  K7

  	
   

  	
  0.9905

  	
   

  	
  1.0180

  	
   

  
	
  K8

  	
   

  	
  0.9584

  	
   

  	
  1.0223

  	
   

  
	
  K9

  	
   

  	
  0.9459

  	
   

  	
  0.9548

  	
   

  
	
  KI

  	
   

  	
  0.9635

  	
   

  	
  1.0347

  	
   

  
	
  KJ

  	
   

  	
  1.0269

  	
   

  	
  1.0347

  	
   

  
	
  KK

  	
   

  	
  0.9749

  	
   

  	
  0.9894

  	
   

  
	
  KL

  	
   

  	
  0.9632

  	
   

  	
  1.0098

  	
   

  
	
  KM

  	
   

  	
  0.9317

  	
   

  	
  1.0347

  	
   

  
	
  L1

  	
   

  	
  0.9939

  	
   

  	
  1.0442

  	
   

  
	
  L2

  	
   

  	
  0.9587

  	
   

  	
  0.9806

  	
   

  
	
  L3

  	
   

  	
  0.9601

  	
   

  	
  0.9806

  	
   

  
	
  L4

  	
   

  	
  0.9081

  	
   

  	
  0.9803

  	
   

  
	
  L5

  	
   

  	
  0.9459

  	
   

  	
  0.9818

  	
   

  
	
  L6

  	
   

  	
  1.0039

  	
   

  	
  0.9818

  	
   

  
	
  L7

  	
   

  	
  1.0334

  	
   

  	
  0.9809

  	
   

  
	
  L8

  	
   

  	
  1.0192

  	
   

  	
  0.9697

  	
   

  
	
  L9

  	
   

  	
  0.9558

  	
   

  	
  1.0411

  	
   

  
	
  HM

  	
   

  	
  1.1684

  	
   

  	
  1.0609

  	
   

  
	
  M1

  	
   

  	
  0.9791

  	
   

  	
  1.0417

  	
   

  
	
  M2

  	
   

  	
  1.1834

  	
   

  	
  1.0609

  	
   

  
	
  M3

  	
   

  	
  1.0070

  	
   

  	
  1.0414

  	
   

  
	
  M4

  	
   

  	
  1.0070

  	
   

  	
  1.0408

  	
   

  
	
  M5

  	
   

  	
  1.0246

  	
   

  	
  1.0268

  	
   

  
	
  M6

  	
   

  	
  0.9584

  	
   

  	
  0.9666

  	
   

  
	
  M7

  	
   

  	
  0.9493

  	
   

  	
  0.8754

  	
   

  
	
  M8

  	
   

  	
  1.0164

  	
   

  	
  1.0320

  	
   

  
	
  M9

  	
   

  	
  1.0769

  	
   

  	
  1.0411

  	
   

  
	
  HN

  	
   

  	
  1.0067

  	
   

  	
  1.0408

  	
   

  
	
  N1

  	
   

  	
  1.0218

  	
   

  	
  1.0427

  	
   

  
	
  N2

  	
   

  	
  1.0124

  	
   

  	
  1.0408

  	
   

  
	
  N3

  	
   

  	
  1.0161

  	
   

  	
  1.0420

  	
   

  
	
  N4

  	
   

  	
  1.0067

  	
   

  	
  1.0232

  	
   

  
	
  N5

  	
   

  	
  1.0067

  	
   

  	
  1.0232

  	
   

  
	
  N6

  	
   

  	
  1.0184

  	
   

  	
  1.0232

  	
   

  
	
  N7

  	
   

  	
  1.0184

  	
   

  	
  1.0408

  	
   

  
	
  N8

  	
   

  	
  1.0357

  	
   

  	
  1.0387

  	
   

  
	
  N9

  	
   

  	
  1.0124

  	
   

  	
  1.0259

  	
   

  
	
  HO

  	
   

  	
  0.9487

  	
   

  	
  1.0408

  	
   

  
	
  O1

  	
   

  	
  0.9604

  	
   

  	
  1.0408

  	
   

  
	
  O2

  	
   

  	
  0.9604

  	
   

  	
  1.0031

  	
   

  
	
  O3

  	
   

  	
  0.9581

  	
   

  	
  1.0420

  	
   

  
	
  O4

  	
   

  	
  1.0184

  	
   

  	
  1.0031

  	
   

  
	
  O5

  	
   

  	
  0.9487

  	
   

  	
  1.0080

  	
   

  
	
  O6

  	
   

  	
  1.0380

  	
   

  	
  1.0539

  	
   

  
	
  O7

  	
   

  	
  1.0402

  	
   

  	
  1.0393

  	
   

  
	
  O8

  	
   

  	
  1.0053

  	
   

  	
  0.9761

  	
   

  
	
  O9

  	
   

  	
  0.9752

  	
   

  	
  1.0420

  	
   

  
	
  HP

  	
   

  	
  1.0064

  	
   

  	
  1.0122

  	
   

  
	
  P1

  	
   

  	
  1.0161

  	
   

  	
  1.0156

  	
   

  
	
  P2

  	
   

  	
  0.9081

  	
   

  	
  0.9426

  	
   

  
	
  P3

  	
   

  	
  0.9516

  	
   

  	
  0.9806

  	
   

  
	
  P4

  	
   

  	
  1.0070

  	
   

  	
  1.0518

  	
   

  
	
  P5

  	
   

  	
  0.8965

  	
   

  	
  0.9755

  	
   

  
	
  P6

  	
   

  	
  1.1008

  	
   

  	
  0.9867

  	
   

  
	
  P7

  	
   

  	
  1.0243

  	
   

  	
  1.0408

  	
   

  
	
  P8

  	
   

  	
  0.9789

  	
   

  	
  0.9882

  	
   

  
	
  P9

  	
   

  	
  1.0155

  	
   

  	
  0.9855

  	
   

  
	
  HR

  	
   

  	
  1.1684

  	
   

  	
  1.0624

  	
   

  
	
  R1

  	
   

  	
  1.0252

  	
   

  	
  1.0265

  	
   

  
	
  R2

  	
   

  	
  0.9502

  	
   

  	
  1.0439

  	
   

  
	
  R3

  	
   

  	
  0.9644

  	
   

  	
  1.0408

  	
   

  
	
  R4

  	
   

  	
  0.8976

  	
   

  	
  0.8985

  	
   

  
	
  R5

  	
   

  	
  1.0053

  	
   

  	
  0.9806

  	
   

  
	
  R6

  	
   

  	
  1.0053

  	
   

  	
  0.9429

  	
   

  
	
  R7

  	
   

  	
  0.8965

  	
   

  	
  0.9043

  	
   

  
	
  R8

  	
   

  	
  0.9672

  	
   

  	
  1.0265

  	
   

  
	
  R9

  	
   

  	
  0.9019

  	
   

  	
  0.8262

  	
   

  
	
  HS

  	
   

  	
  1.0956

  	
   

  	
  1.0238

  	
   

  
	
  S1

  	
   

  	
  1.1428

  	
   

  	
  1.0685

  	
   

  
	
  S2

  	
   

  	
  1.0303

  	
   

  	
  1.0296

  	
   

  
	
  S3

  	
   

  	
  1.0559

  	
   

  	
  1.0530

  	
   

  
	
  S4

  	
   

  	
  0.9459

  	
   

  	
  0.9332

  	
   

  
	
  S5

  	
   

  	
  0.9007

  	
   

  	
  0.8377

  	
   

  
	
  S6

  	
   

  	
  1.0840

  	
   

  	
  1.0232

  	
   

  
	
  S7

  	
   

  	
  1.0260

  	
   

  	
  1.0211

  	
   

  
	
  S8

  	
   

  	
  1.0169

  	
   

  	
  0.9806

  	
   

  
	
  S9

  	
   

  	
  1.0169

  	
   

  	
  0.9429

  	
   

  
	
  HT

  	
   

  	
  1.0769

  	
   

  	
  1.0408

  	
   

  
	
  T1

  	
   

  	
  1.0826

  	
   

  	
  1.0408

  	
   

  
	
  T2

  	
   

  	
  1.0885

  	
   

  	
  1.0408

  	
   

  
	
  T3

  	
   

  	
  1.0192

  	
   

  	
  1.0235

  	
   

  
	
  T4

  	
   

  	
  1.0147

  	
   

  	
  1.0214

  	
   

  
	
  T5

  	
   

  	
  1.0115

  	
   

  	
  1.0417

  	
   

  
	
  T7

  	
   

  	
  0.9257

  	
   

  	
  0.9867

  	
   

  
	
  T8

  	
   

  	
  1.0144

  	
   

  	
  0.9855

  	
   

  
	
  T9

  	
   

  	
  1.0388

  	
   

  	
  1.0278

  	
   

  
	
  TA

  	
   

  	
  0.9797

  	
   

  	
  0.9879

  	
   

  
	
  TB

  	
   

  	
  0.9914

  	
   

  	
  0.9767

  	
   

  
	
  TC

  	
   

  	
  1.0076

  	
   

  	
  0.9770

  	
   

  
	
  HU

  	
   

  	
  1.0365

  	
   

  	
  1.0503

  	
   

  
	
  U1

  	
   

  	
  1.0243

  	
   

  	
  0.9937

  	
   

  
	
  U2

  	
   

  	
  0.9590

  	
   

  	
  0.9429

  	
   

  
	
  U3

  	
   

  	
  0.9590

  	
   

  	
  0.9697

  	
   

  
	
  U4

  	
   

  	
  1.0863

  	
   

  	
  1.0256

  	
   

  
	
  U5

  	
   

  	
  0.9490

  	
   

  	
  1.0442

  	
   

  
	
  U6

  	
   

  	
  0.9584

  	
   

  	
  1.0326

  	
   

  
	
  U7

  	
   

  	
  0.9772

  	
   

  	
  1.0299

  	
   

  
	
  U8

  	
   

  	
  1.0277

  	
   

  	
  1.0442

  	
   

  
	
  U9

  	
   

  	
  1.0320

  	
   

  	
  1.0524

  	
   

  
	
  HV

  	
   

  	
  1.0925

  	
   

  	
  1.0454

  	
   

  
	
  HW

  	
   

  	
  1.0536

  	
   

  	
  0.9697

  	
   

  
	
  W1

  	
   

  	
  1.0442

  	
   

  	
  0.9697

  	
   

  
	
  W2

  	
   

  	
  1.0232

  	
   

  	
  1.0214

  	
   

  
									



 


42

















 


	
  Standard
  HMO

  	
   

  
	
  Plan

  	
   

  	
  Prof

  Factor

  	
   

  	
  Inst

  Factor

  	
   

  
	
  W3

  	
   

  	
  0.9493

  	
   

  	
  1.0487

  	
   

  
	
  W4

  	
   

  	
  0.9328

  	
   

  	
  0.9910

  	
   

  
	
  W5

  	
   

  	
  1.0371

  	
   

  	
  1.0329

  	
   

  
	
  W6

  	
   

  	
  0.9516

  	
   

  	
  0.9840

  	
   

  
	
  W7

  	
   

  	
  0.9760

  	
   

  	
  1.0156

  	
   

  
	
  W8

  	
   

  	
  1.0002

  	
   

  	
  1.0408

  	
   

  
	
  W9

  	
   

  	
  0.9021

  	
   

  	
  1.0408

  	
   

  
	
  HX

  	
   

  	
  0.9459

  	
   

  	
  0.9320

  	
   

  
	
  X1

  	
   

  	
  0.9493

  	
   

  	
  0.8699

  	
   

  
	
  X2

  	
   

  	
  0.9575

  	
   

  	
  0.9320

  	
   

  
	
  X3

  	
   

  	
  0.9459

  	
   

  	
  0.9429

  	
   

  
	
  X4

  	
   

  	
  0.9581

  	
   

  	
  0.9426

  	
   

  
	
  X5

  	
   

  	
  1.0164

  	
   

  	
  1.0320

  	
   

  
	
  X6

  	
   

  	
  1.0127

  	
   

  	
  1.0408

  	
   

  
	
  X7

  	
   

  	
  0.8965

  	
   

  	
  0.9803

  	
   

  
	
  X8

  	
   

  	
  1.0155

  	
   

  	
  0.9809

  	
   

  
	
  X9

  	
   

  	
  0.8965

  	
   

  	
  0.9645

  	
   

  
	
  HY

  	
   

  	
  0.8965

  	
   

  	
  0.8934

  	
   

  
	
  Y1

  	
   

  	
  0.8993

  	
   

  	
  0.9627

  	
   

  
	
  Y2

  	
   

  	
  0.8965

  	
   

  	
  0.9317

  	
   

  
	
  Y3

  	
   

  	
  0.8965

  	
   

  	
  1.0028

  	
   

  
	
  Y4

  	
   

  	
  0.9081

  	
   

  	
  1.0028

  	
   

  
	
  Y5

  	
   

  	
  0.9487

  	
   

  	
  0.9630

  	
   

  
	
  Y6

  	
   

  	
  0.8965

  	
   

  	
  0.9426

  	
   

  
	
  Y7

  	
   

  	
  1.0107

  	
   

  	
  0.9806

  	
   

  
	
  Y8

  	
   

  	
  1.0252

  	
   

  	
  1.0408

  	
   

  
	
  Y9

  	
   

  	
  1.0260

  	
   

  	
  1.0211

  	
   

  
	
  ZA

  	
   

  	
  1.0499

  	
   

  	
  0.9654

  	
   

  
	
  ZB

  	
   

  	
  0.9797

  	
   

  	
  0.8660

  	
   

  
	
  ZC

  	
   

  	
  1.0499

  	
   

  	
  0.9654

  	
   

  
	
  ZG

  	
   

  	
  0.9797

  	
   

  	
  0.9654

  	
   

  
	
  ZK

  	
   

  	
  1.0499

  	
   

  	
  0.9764

  	
   

  
	
  ZM

  	
   

  	
  1.1005

  	
   

  	
  0.9882

  	
   

  
	
  ZN

  	
   

  	
  0.9797

  	
   

  	
  0.9764

  	
   

  
	
  ZO

  	
   

  	
  0.9217

  	
   

  	
  0.9764

  	
   

  
	
  ZS

  	
   

  	
  1.0615

  	
   

  	
  0.9770

  	
   

  
	
  ZZ

  	
   

  	
  0.9922

  	
   

  	
  0.9770

  	
   

  
	
  1A

  	
   

  	
  0.9987

  	
   

  	
  1.0198

  	
   

  
	
  1B

  	
   

  	
  1.0343

  	
   

  	
  1.0232

  	
   

  
	
  1C

  	
   

  	
  1.0385

  	
   

  	
  1.0256

  	
   

  
	
  1D

  	
   

  	
  0.9709

  	
   

  	
  1.0423

  	
   

  
	
  1E

  	
   

  	
  1.0348

  	
   

  	
  1.0271

  	
   

  
	
  1F

  	
   

  	
  1.0348

  	
   

  	
  1.0232

  	
   

  
	
  1G

  	
   

  	
  1.0348

  	
   

  	
  1.0220

  	
   

  
	
  1H

  	
   

  	
  1.0348

  	
   

  	
  0.9469

  	
   

  
	
  1J

  	
   

  	
  1.0348

  	
   

  	
  1.0393

  	
   

  
	
  1K

  	
   

  	
  1.0198

  	
   

  	
  1.0271

  	
   

  
	
  1L

  	
   

  	
  1.0368

  	
   

  	
  0.9803

  	
   

  
	
  1M

  	
   

  	
  1.0274

  	
   

  	
  1.0083

  	
   

  
	
  1N

  	
   

  	
  1.0274

  	
   

  	
  1.0423

  	
   

  
	
  1P

  	
   

  	
  1.0243

  	
   

  	
  0.9803

  	
   

  
	
  1Q

  	
   

  	
  1.0274

  	
   

  	
  0.9469

  	
   

  
	
  1R

  	
   

  	
  1.0996

  	
   

  	
  1.0423

  	
   

  
	
  1S

  	
   

  	
  0.9709

  	
   

  	
  1.0049

  	
   

  
	
  1T

  	
   

  	
  0.9627

  	
   

  	
  1.0049

  	
   

  
	
  U

  	
   

  	
  0.9271

  	
   

  	
  1.0031

  	
   

  
	
  1V

  	
   

  	
  1.0232

  	
   

  	
  1.0214

  	
   

  
	
  1W

  	
   

  	
  0.9678

  	
   

  	
  0.9803

  	
   

  
	
  1X

  	
   

  	
  1.0243

  	
   

  	
  0.9803

  	
   

  
	
  1Y

  	
   

  	
  1.0956

  	
   

  	
  1.0423

  	
   

  
	
  1Z

  	
   

  	
  1.0192

  	
   

  	
  1.0049

  	
   

  
	
  2A

  	
   

  	
  0.9709

  	
   

  	
  0.9469

  	
   

  
	
  2B

  	
   

  	
  1.1377

  	
   

  	
  1.0074

  	
   

  
	
  2C

  	
   

  	
  1.1377

  	
   

  	
  1.0074

  	
   

  
	
  2D

  	
   

  	
  0.9405

  	
   

  	
  1.0056

  	
   

  
	
  2E

  	
   

  	
  1.0956

  	
   

  	
  1.0423

  	
   

  
	
  2F

  	
   

  	
  1.0235

  	
   

  	
  1.0214

  	
   

  
	
  6A

  	
   

  	
  1.0615

  	
   

  	
  0.9709

  	
   

  
	
  6G

  	
   

  	
  0.9217

  	
   

  	
  0.9654

  	
   

  
	
  6H

  	
   

  	
  0.9797

  	
   

  	
  0.9764

  	
   

  
	
  6R

  	
   

  	
  0.9334

  	
   

  	
  0.9764

  	
   

  
	
  6S

  	
   

  	
  0.9334

  	
   

  	
  0.9387

  	
   

  
	
  6T

  	
   

  	
  0.9217

  	
   

  	
  0.9764

  	
   

  
	
  6V

  	
   

  	
  0.9217

  	
   

  	
  0.9615

  	
   

  
	
  6W

  	
   

  	
  0.9700

  	
   

  	
  0.9797

  	
   

  
	
  6Z

  	
   

  	
  0.9252

  	
   

  	
  0.8657

  	
   

  
	
  7C

  	
   

  	
  0.9811

  	
   

  	
  0.9764

  	
   

  
	
  7E

  	
   

  	
  0.9854

  	
   

  	
  0.9770

  	
   

  
	
  7F

  	
   

  	
  0.8723

  	
   

  	
  0.9000

  	
   

  
	
  7G

  	
   

  	
  1.0499

  	
   

  	
  0.9764

  	
   

  
	
  7H

  	
   

  	
  0.9217

  	
   

  	
  0.9079

  	
   

  
	
  7I

  	
   

  	
  0.9854

  	
   

  	
  0.9770

  	
   

  
	
  7J

  	
   

  	
  0.8723

  	
   

  	
  0.9000

  	
   

  
	
  7K

  	
   

  	
  0.9811

  	
   

  	
  0.9764

  	
   

  
	
  7L

  	
   

  	
  1.0053

  	
   

  	
  0.9882

  	
   

  
	
  7M

  	
   

  	
  0.9797

  	
   

  	
  0.9764

  	
   

  
	
  7N

  	
   

  	
  0.9794

  	
   

  	
  0.9764

  	
   

  
	
  7O

  	
   

  	
  0.8723

  	
   

  	
  0.9761

  	
   

  
	
  7Q

  	
   

  	
  0.9217

  	
   

  	
  0.9764

  	
   

  
	
  7R

  	
   

  	
  0.9797

  	
   

  	
  0.9764

  	
   

  
	
  7S

  	
   

  	
  0.8723

  	
   

  	
  0.9384

  	
   

  
	
  7T

  	
   

  	
  0.9217

  	
   

  	
  0.9466

  	
   

  
	
  7U

  	
   

  	
  0.9618

  	
   

  	
  0.9764

  	
   

  
	
  7V

  	
   

  	
  0.9811

  	
   

  	
  0.9387

  	
   

  
	
  7W

  	
   

  	
  0.9232

  	
   

  	
  0.9387

  	
   

  
	
  7X

  	
   

  	
  1.1155

  	
   

  	
  0.9882

  	
   

  
	
  7Y

  	
   

  	
  1.0363

  	
   

  	
  0.9882

  	
   

  
	
  7Z

  	
   

  	
  0.9217

  	
   

  	
  0.9764

  	
   

  
	
  9A

  	
   

  	
  0.9797

  	
   

  	
  0.9764

  	
   

  
	
  9B

  	
   

  	
  0.9914

  	
   

  	
  0.9764

  	
   

  
	
  9C

  	
   

  	
  0.9735

  	
   

  	
  0.9764

  	
   

  
	
  9E

  	
   

  	
  0.9968

  	
   

  	
  0.9770

  	
   

  
	
  9F

  	
   

  	
  1.0615

  	
   

  	
  0.9764

  	
   

  
	
  9G

  	
   

  	
  0.9945

  	
   

  	
  0.9764

  	
   

  
	
  9H

  	
   

  	
  0.9530

  	
   

  	
  0.9764

  	
   

  
	
  9I

  	
   

  	
  0.9820

  	
   

  	
  0.9764

  	
   

  
	
  9J

  	
   

  	
  0.8766

  	
   

  	
  0.8313

  	
   

  
	
  9M

  	
   

  	
  0.9928

  	
   

  	
  0.9764

  	
   

  
	
  9N

  	
   

  	
  0.9334

  	
   

  	
  0.9387

  	
   

  
	
  9O

  	
   

  	
  0.9368

  	
   

  	
  0.9764

  	
   

  
	
  9P

  	
   

  	
  1.0007

  	
   

  	
  0.9785

  	
   

  
	
  9Q

  	
   

  	
  0.9914

  	
   

  	
  0.9764

  	
   

  
	
  9R

  	
   

  	
  0.9959

  	
   

  	
  0.9837

  	
   

  
	
  9S

  	
   

  	
  0.9914

  	
   

  	
  0.9764

  	
   

  
	
  9T

  	
   

  	
  0.9797

  	
   

  	
  0.9767

  	
   

  
	
  9U

  	
   

  	
  0.9789

  	
   

  	
  0.9803

  	
   

  
	
  9W

  	
   

  	
  0.9217

  	
   

  	
  0.9566

  	
   

  
	
  9X

  	
   

  	
  0.8840

  	
   

  	
  0.9764

  	
   

  



 


43

















 


A.3
Benefit Plan Fators for PPG Capitation and Hospital Capitation Effective
January 1, 1998


 




	
  Small Group HMO

  	
   

  
	
  Plan

  	
   

  	
  Prof

  Factor

  	
   

  	
  Inst

  Factor

  	
   

  
	
  C4

  	
   

  	
  0.7692

  	
   

  	
  0.7857

  	
   

  
	
  C5

  	
   

  	
  0.6886

  	
   

  	
  0.7740

  	
   

  
	
  Q1

  	
   

  	
  0.9857

  	
   

  	
  0.9697

  	
   

  
	
  Q2

  	
   

  	
  0.9285

  	
   

  	
  0.9315

  	
   

  
	
  Q3

  	
   

  	
  0.8792

  	
   

  	
  0.8692

  	
   

  
	
  Q4

  	
   

  	
  0.8447

  	
   

  	
  0.8206

  	
   

  
	
  Q5

  	
   

  	
  1.0160

  	
   

  	
  1.0230

  	
   

  
	
  Q6

  	
   

  	
  0.9095

  	
   

  	
  1.0076

  	
   

  
	
  Q7

  	
   

  	
  0.8447

  	
   

  	
  0.8206

  	
   

  
	
  Q8

  	
   

  	
  0.9285

  	
   

  	
  0.9697

  	
   

  
	
  QT

  	
   

  	
  0.7737

  	
   

  	
  0.7841

  	
   

  
	
  QU

  	
   

  	
  0.6971

  	
   

  	
  0.7709

  	
   

  
	
  QV

  	
   

  	
  0.6903

  	
   

  	
  0.7302

  	
   

  
	
  QW

  	
   

  	
  0.6903

  	
   

  	
  0.7302

  	
   

  
	
  QX

  	
   

  	
  0.7237

  	
   

  	
  0.7808

  	
   

  
	
  QY

  	
   

  	
  0.7617

  	
   

  	
  0.7864

  	
   

  
	
  QZ

  	
   

  	
  0.7617

  	
   

  	
  0.7864

  	
   

  
	
  V1

  	
   

  	
  1.0104

  	
   

  	
  0.9940

  	
   

  
	
  V2

  	
   

  	
  0.9409

  	
   

  	
  0.9853

  	
   

  
	
  V3

  	
   

  	
  0.8406

  	
   

  	
  0.9783

  	
   

  






 




	
  Individual
  HMO

  	
   

  
	
  Plan

  	
   

  	
  Prof

  Factor

  	
   

  
	
  Shasta 5

  	
   

  	
  0.9886

  	
   

  
	
  Shasta 7

  	
   

  	
  0.9639

  	
   

  
	
  HMO Advantage 10

  	
   

  	
  0.9124

  	
   

  
	
  Shasta 15

  	
   

  	
  0.8616

  	
   

  
	
  Shasta Classic

  	
   

  	
  0.8054

  	
   

  






 




	
  Medicare
  Supplement HMO

  
	
  Plan

  	
   

  	
  Prof

  Factor

  
	
  Medicare Conversion Plan J

  	
   

  	
  1.2467

  
	
  Medicare COB $0 Copay

  	
   

  	
  1.1604

  
	
  Medicare COB $5 and up Copay

  	
   

  	
  0.6676

  






 




	
  Medicare
  Supplement POS

  	
   

  
	
  Plan

  	
   

  	
  Prof

  Factor

  	
   

  
	
  POS Medicare COB
  $0 Copay

  	
   

  	
  1.1604

  	
   

  
	
  POS Medicare COB
  $5 and up Copay

  	
   

  	
  0.6676

  	
   

  






 


44

















 


A.4
Benefit Plan Factors for PPG Capitation and Hospital Capitation/Shared Risk
Budgets


Effective
July 1, 1998


 


	
  Standard HMO

  	
   

  
	
  Plan

  	
   

  	
  Prof

  Factor

  	
   

  	
  Inst

  Factor

  	
   

  
	
  HA

  	
   

  	
  1.0754

  	
   

  	
  0.9716

  	
   

  
	
  A1

  	
   

  	
  1.0869

  	
   

  	
  0.9752

  	
   

  
	
  A2

  	
   

  	
  1.0754

  	
   

  	
  0.9791

  	
   

  
	
  A3

  	
   

  	
  1.0843

  	
   

  	
  0.9830

  	
   

  
	
  A4

  	
   

  	
  1.0754

  	
   

  	
  0.9791

  	
   

  
	
  A5

  	
   

  	
  1.0869

  	
   

  	
  0.9782

  	
   

  
	
  A6

  	
   

  	
  1.0042

  	
   

  	
  0.9716

  	
   

  
	
  A7

  	
   

  	
  0.9457

  	
   

  	
  0.9345

  	
   

  
	
  A8

  	
   

  	
  1.0901

  	
   

  	
  1.0387

  	
   

  
	
  A9

  	
   

  	
  1.0420

  	
   

  	
  1.0387

  	
   

  
	
  HB

  	
   

  	
  1.0042

  	
   

  	
  0.8737

  	
   

  
	
  BB

  	
   

  	
  1.0042

  	
   

  	
  0.8746

  	
   

  
	
  B1

  	
   

  	
  0.8999

  	
   

  	
  0.8303

  	
   

  
	
  B2

  	
   

  	
  0.8999

  	
   

  	
  0.8300

  	
   

  
	
  B3

  	
   

  	
  0.8999

  	
   

  	
  0.8303

  	
   

  
	
  B4

  	
   

  	
  0.9019

  	
   

  	
  0.8291

  	
   

  
	
  B5

  	
   

  	
  0.8999

  	
   

  	
  0.8377

  	
   

  
	
  B6

  	
   

  	
  1.0042

  	
   

  	
  0.8812

  	
   

  
	
  B7

  	
   

  	
  0.9745

  	
   

  	
  1.0285

  	
   

  
	
  B8

  	
   

  	
  0.9607

  	
   

  	
  1.0163

  	
   

  
	
  B9

  	
   

  	
  0.9647

  	
   

  	
  1.0387

  	
   

  
	
  HC

  	
   

  	
  1.0855

  	
   

  	
  1.0139

  	
   

  
	
  C1

  	
   

  	
  1.0783

  	
   

  	
  1.0139

  	
   

  
	
  C2

  	
   

  	
  1.0967

  	
   

  	
  1.0252

  	
   

  
	
  C3

  	
   

  	
  1.0071

  	
   

  	
  1.0139

  	
   

  
	
  C6

  	
   

  	
  1.0103

  	
   

  	
  1.0387

  	
   

  
	
  C7

  	
   

  	
  1.0855

  	
   

  	
  1.0211

  	
   

  
	
  C8

  	
   

  	
  0.9457

  	
   

  	
  0.9758

  	
   

  
	
  C9

  	
   

  	
  0.9042

  	
   

  	
  1.0387

  	
   

  
	
  HD

  	
   

  	
  1.1174

  	
   

  	
  1.0211

  	
   

  
	
  D1

  	
   

  	
  1.0783

  	
   

  	
  1.0211

  	
   

  
	
  D2

  	
   

  	
  1.0255

  	
   

  	
  1.0303

  	
   

  
	
  D3

  	
   

  	
  0.9002

  	
   

  	
  0.8300

  	
   

  
	
  D4

  	
   

  	
  0.9492

  	
   

  	
  0.8731

  	
   

  
	
  D5

  	
   

  	
  0.9575

  	
   

  	
  0.9791

  	
   

  
	
  D6

  	
   

  	
  0.9457

  	
   

  	
  0.9570

  	
   

  
	
  D7

  	
   

  	
  0.9659

  	
   

  	
  1.0306

  	
   

  
	
  D8

  	
   

  	
  1.0316

  	
   

  	
  1.0199

  	
   

  
	
  D9

  	
   

  	
  1.0466

  	
   

  	
  1.0456

  	
   

  
	
  HE

  	
   

  	
  1.0325

  	
   

  	
  1.0431

  	
   

  
	
  E1

  	
   

  	
  1.0226

  	
   

  	
  0.9746

  	
   

  
	
  E2

  	
   

  	
  0.9860

  	
   

  	
  1.0387

  	
   

  
	
  E3

  	
   

  	
  1.0071

  	
   

  	
  0.9791

  	
   

  
	
  E4

  	
   

  	
  0.9486

  	
   

  	
  0.9920

  	
   

  
	
  E5

  	
   

  	
  1.0587

  	
   

  	
  1.0417

  	
   

  
	
  E6

  	
   

  	
  0.9639

  	
   

  	
  0.9746

  	
   

  
	
  E7

  	
   

  	
  0.9999

  	
   

  	
  1.0417

  	
   

  
	
  E8

  	
   

  	
  1.0183

  	
   

  	
  1.0235

  	
   

  
	
  E9

  	
   

  	
  0.9734

  	
   

  	
  0.9791

  	
   

  
	
  EA

  	
   

  	
  0.9716

  	
   

  	
  1.0350

  	
   

  
	
  EB

  	
   

  	
  0.9033

  	
   

  	
  0.8215

  	
   

  
	
  EC

  	
   

  	
  0.9607

  	
   

  	
  1.0386

  	
   

  
	
  ED

  	
   

  	
  1.0056

  	
   

  	
  0.9926

  	
   

  
	
  EE

  	
   

  	
  1.0079

  	
   

  	
  0.9811

  	
   

  
	
  EF

  	
   

  	
  1.0482

  	
   

  	
  1.0419

  	
   

  
	
  EG

  	
   

  	
  1.0002

  	
   

  	
  1.0419

  	
   

  
	
  EH

  	
   

  	
  0.9490

  	
   

  	
  1.0204

  	
   

  
	
  EI

  	
   

  	
  0.9916

  	
   

  	
  0.9775

  	
   

  
	
  EJ

  	
   

  	
  1.0582

  	
   

  	
  1.0477

  	
   

  
	
  EK

  	
   

  	
  0.9179

  	
   

  	
  1.0386

  	
   

  
	
  EL

  	
   

  	
  1.0528

  	
   

  	
  0.9760

  	
   

  
	
  EM

  	
   

  	
  0.9490

  	
   

  	
  1.0489

  	
   

  
	
  EN

  	
   

  	
  0.9799

  	
   

  	
  0.9748

  	
   

  
	
  EO

  	
   

  	
  0.9762

  	
   

  	
  0.9978

  	
   

  
	
  EP

  	
   

  	
  0.9333

  	
   

  	
  0.9745

  	
   

  
	
  EQ

  	
   

  	
  0.9782

  	
   

  	
  1.0253

  	
   

  
	
  ES

  	
   

  	
  0.9730

  	
   

  	
  1.0413

  	
   

  
	
  HF

  	
   

  	
  0.9618

  	
   

  	
  1.0088

  	
   

  
	
  F1

  	
   

  	
  1.0169

  	
   

  	
  1.0112

  	
   

  
	
  F2

  	
   

  	
  1.0172

  	
   

  	
  0.9764

  	
   

  
	
  F3

  	
   

  	
  1.0074

  	
   

  	
  0.9791

  	
   

  
	
  F4

  	
   

  	
  0.9820

  	
   

  	
  1.0345

  	
   

  
	
  F5

  	
   

  	
  1.0284

  	
   

  	
  0.9788

  	
   

  
	
  F6

  	
   

  	
  1.0077

  	
   

  	
  1.0387

  	
   

  
	
  F7

  	
   

  	
  1.1102

  	
   

  	
  0.9908

  	
   

  
	
  F8

  	
   

  	
  0.9041

  	
   

  	
  0.9727

  	
   

  
	
  F9

  	
   

  	
  1.0532

  	
   

  	
  1.0423

  	
   

  
	
  FA

  	
   

  	
  1.0285

  	
   

  	
  1.0356

  	
   

  
	
  FB

  	
   

  	
  1.0313

  	
   

  	
  1.0501

  	
   

  
	
  FC

  	
   

  	
  1.0199

  	
   

  	
  1.0386

  	
   

  
	
  FD

  	
   

  	
  1.0345

  	
   

  	
  1.0380

  	
   

  
	
  FE

  	
   

  	
  0.9647

  	
   

  	
  1.0356

  	
   

  
	
  FF

  	
   

  	
  0.9716

  	
   

  	
  1.0410

  	
   

  
	
  FG

  	
   

  	
  0.9647

  	
   

  	
  1.0032

  	
   

  
	
  FH

  	
   

  	
  0.9725

  	
   

  	
  1.0356

  	
   

  
	
  FI

  	
   

  	
  0.9762

  	
   

  	
  1.0356

  	
   

  
	
  FJ

  	
   

  	
  0.9213

  	
   

  	
  1.0356

  	
   

  
	
  FK

  	
   

  	
  0.9762

  	
   

  	
  0.9902

  	
   

  
	
  FL

  	
   

  	
  0.9213

  	
   

  	
  0.9588

  	
   

  
	
  HG

  	
   

  	
  1.0042

  	
   

  	
  0.9716

  	
   

  
	
  G1

  	
   

  	
  0.9457

  	
   

  	
  0.9716

  	
   

  
	
  G2

  	
   

  	
  1.0042

  	
   

  	
  0.9791

  	
   

  
	
  G3

  	
   

  	
  1.0160

  	
   

  	
  0.9791

  	
   

  
	
  G4

  	
   

  	
  0.9457

  	
   

  	
  0.9791

  	
   

  
	
  G5

  	
   

  	
  0.8956

  	
   

  	
  0.9713

  	
   

  
	
  G6

  	
   

  	
  1.0172

  	
   

  	
  1.0226

  	
   

  
	
  G9

  	
   

  	
  1.0042

  	
   

  	
  0.9791

  	
   

  
	
  I3

  	
   

  	
  0.9645

  	
   

  	
  1.0455

  	
   

  
	
  I4

  	
   

  	
  0.9004

  	
   

  	
  0.8366

  	
   

  
	
  I5

  	
   

  	
  0.9553

  	
   

  	
  1.0108

  	
   

  
	
  I6

  	
   

  	
  1.0451

  	
   

  	
  0.9548

  	
   

  
	
  I7

  	
   

  	
  1.0516

  	
   

  	
  1.0425

  	
   

  
	
  I8

  	
   

  	
  0.9573

  	
   

  	
  1.0247

  	
   

  
	
  I9

  	
   

  	
  0.9893

  	
   

  	
  1.0386

  	
   

  
	
  J3

  	
   

  	
  1.0301

  	
   

  	
  0.9896

  	
   

  
	
  J4

  	
   

  	
  1.0301

  	
   

  	
  0.9896

  	
   

  
	
  J5

  	
   

  	
  1.0134

  	
   

  	
  0.9794

  	
   

  
	
  J6

  	
   

  	
  0.9765

  	
   

  	
  0.9818

  	
   

  
	
  J7

  	
   

  	
  0.9806

  	
   

  	
  1.0318

  	
   

  
	
  J8

  	
   

  	
  0.9783

  	
   

  	
  0.9869

  	
   

  
	
  J9

  	
   

  	
  1.1627

  	
   

  	
  1.0642

  	
   

  
	
  HK

  	
   

  	
  1.0855

  	
   

  	
  1.0390

  	
   

  
	
  K1

  	
   

  	
  1.0146

  	
   

  	
  1.0390

  	
   

  
	
  K2

  	
   

  	
  0.9719

  	
   

  	
  0.9791

  	
   

  
	
  K3

  	
   

  	
  1.0247

  	
   

  	
  1.0393

  	
   

  
	
  K4

  	
   

  	
  1.0973

  	
   

  	
  1.0390

  	
   

  
	
  K6

  	
   

  	
  0.9699

  	
   

  	
  1.0399

  	
   

  
	
  K7

  	
   

  	
  0.9941

  	
   

  	
  1.0196

  	
   

  
	
  K8

  	
   

  	
  0.9584

  	
   

  	
  1.0205

  	
   

  
	
  K9

  	
   

  	
  0.9457

  	
   

  	
  0.9570

  	
   

  
	
  KI

  	
   

  	
  0.9647

  	
   

  	
  1.0362

  	
   

  
	
  KJ

  	
   

  	
  1.0285

  	
   

  	
  1.0362

  	
   

  
	
  KK

  	
   

  	
  0.9762

  	
   

  	
  0.9911

  	
   

  
	
  KL

  	
   

  	
  0.9633

  	
   

  	
  1.0114

  	
   

  
	
  KM

  	
   

  	
  0.9327

  	
   

  	
  1.0362

  	
   

  
	
  L1

  	
   

  	
  0.9941

  	
   

  	
  1.0420

  	
   

  
	
  L2

  	
   

  	
  0.9587

  	
   

  	
  0.9791

  	
   

  
	
  L3

  	
   

  	
  0.9598

  	
   

  	
  0.9791

  	
   

  
	
  L4

  	
   

  	
  0.9074

  	
   

  	
  0.9788

  	
   

  
	
  L5

  	
   

  	
  0.9460

  	
   

  	
  0.9803

  	
   

  
	
  L6

  	
   

  	
  1.0045

  	
   

  	
  0.9803

  	
   

  
	
  L7

  	
   

  	
  1.0345

  	
   

  	
  0.9800

  	
   

  
	
  L8

  	
   

  	
  1.0201

  	
   

  	
  0.9716

  	
   

  
	
  L9

  	
   

  	
  0.9558

  	
   

  	
  1.0390

  	
   

  
	
  HM

  	
   

  	
  1.1708

  	
   

  	
  1.0585

  	
   

  
	
  M1

  	
   

  	
  0.9794

  	
   

  	
  1.0396

  	
   

  
	
  M2

  	
   

  	
  1.1857

  	
   

  	
  1.0585

  	
   

  
	
  M3

  	
   

  	
  1.0077

  	
   

  	
  1.0393

  	
   

  
	
  M4

  	
   

  	
  1.0077

  	
   

  	
  1.0423

  	
   

  
	
  M5

  	
   

  	
  1.0252

  	
   

  	
  1.0246

  	
   

  
	
  M6

  	
   

  	
  0.9584

  	
   

  	
  0.9659

  	
   

  
	
  M7

  	
   

  	
  0.9492

  	
   

  	
  0.8755

  	
   

  
	
  M8

  	
   

  	
  1.0172

  	
   

  	
  1.0300

  	
   

  
	
  M9

  	
   

  	
  1.0783

  	
   

  	
  1.0390

  	
   

  
	
  HN

  	
   

  	
  1.0074

  	
   

  	
  1.0387

  	
   

  
	
  N1

  	
   

  	
  1.0226

  	
   

  	
  1.0405

  	
   

  
	
  N2

  	
   

  	
  1.0131

  	
   

  	
  1.0387

  	
   

  
	
  N3

  	
   

  	
  1.0169

  	
   

  	
  1.0399

  	
   

  
	
  N4

  	
   

  	
  1.0071

  	
   

  	
  1.0211

  	
   

  
	
  N5

  	
   

  	
  1.0074

  	
   

  	
  1.0211

  	
   

  
	
  N6

  	
   

  	
  1.0189

  	
   

  	
  1.0211

  	
   

  
	
  N7

  	
   

  	
  1.0192

  	
   

  	
  1.0387

  	
   

  
	
  N8

  	
   

  	
  1.0365

  	
   

  	
  1.0366

  	
   

  
	
  N9

  	
   

  	
  1.0131

  	
   

  	
  1.0240

  	
   

  
	
  HO

  	
   

  	
  0.9489

  	
   

  	
  1.0387

  	
   

  
	
  O1

  	
   

  	
  0.9604

  	
   

  	
  1.0387

  	
   

  
	
  O2

  	
   

  	
  0.9604

  	
   

  	
  1.0016

  	
   

  
	
  O3

  	
   

  	
  0.9581

  	
   

  	
  1.0399

  	
   

  
	
  O4

  	
   

  	
  1.0189

  	
   

  	
  1.0016

  	
   

  
	
  O5

  	
   

  	
  0.9486

  	
   

  	
  1.0064

  	
   

  
	
  O6

  	
   

  	
  1.0388

  	
   

  	
  1.0516

  	
   

  
	
  O7

  	
   

  	
  1.0411

  	
   

  	
  1.0372

  	
   

  
	
  O8

  	
   

  	
  1.0056

  	
   

  	
  0.9746

  	
   

  
	
  O9

  	
   

  	
  0.9754

  	
   

  	
  1.0399

  	
   

  
	
  HP

  	
   

  	
  1.0068

  	
   

  	
  1.0139

  	
   

  
	
  P1

  	
   

  	
  1.0166

  	
   

  	
  1.0172

  	
   

  
	
  P2

  	
   

  	
  0.9071

  	
   

  	
  0.9417

  	
   

  
	
  P3

  	
   

  	
  0.9515

  	
   

  	
  0.9791

  	
   

  
	
  P4

  	
   

  	
  1.0077

  	
   

  	
  1.0495

  	
   

  
	
  P5

  	
   

  	
  0.8956

  	
   

  	
  0.9740

  	
   

  
	
  P6

  	
   

  	
  1.1025

  	
   

  	
  0.9866

  	
   

  
	
  P7

  	
   

  	
  1.0252

  	
   

  	
  1.0387

  	
   

  
	
  P8

  	
   

  	
  0.9800

  	
   

  	
  0.9899

  	
   

  
	
  P9

  	
   

  	
  1.0175

  	
   

  	
  0.9872

  	
   

  
	
  HR

  	
   

  	
  1.1708

  	
   

  	
  1.0600

  	
   

  
	
  R1

  	
   

  	
  1.0258

  	
   

  	
  1.0243

  	
   

  
	
  R2

  	
   

  	
  0.9503

  	
   

  	
  1.0417

  	
   

  
	
  R3

  	
   

  	
  0.9647

  	
   

  	
  1.0387

  	
   

  
	
  R4

  	
   

  	
  0.8967

  	
   

  	
  0.8980

  	
   

  
	
  R5

  	
   

  	
  1.0056

  	
   

  	
  0.9791

  	
   

  
	
  R6

  	
   

  	
  1.0056

  	
   

  	
  0.9420

  	
   

  
	
  R7

  	
   

  	
  0.8956

  	
   

  	
  0.9039

  	
   

  
	
  R8

  	
   

  	
  0.9670

  	
   

  	
  1.0243

  	
   

  
	
  R9

  	
   

  	
  0.9010

  	
   

  	
  0.8300

  	
   

  
	
  HS

  	
   

  	
  1.0973

  	
   

  	
  1.0220

  	
   

  
	
  S1

  	
   

  	
  1.1445

  	
   

  	
  1.0660

  	
   

  
	
  S2

  	
   

  	
  1.0324

  	
   

  	
  1.0309

  	
   

  
	
  S3

  	
   

  	
  1.0569

  	
   

  	
  1.0507

  	
   

  
	
  S4

  	
   

  	
  0.9457

  	
   

  	
  0.9357

  	
   

  
	
  S5

  	
   

  	
  0.8999

  	
   

  	
  0.8380

  	
   

  
	
  S6

  	
   

  	
  1.0872

  	
   

  	
  1.0211

  	
   

  
	
  S7

  	
   

  	
  1.0267

  	
   

  	
  1.0208

  	
   

  
	
  S8

  	
   

  	
  1.0175

  	
   

  	
  0.9791

  	
   

  
	
  S9

  	
   

  	
  1.0175

  	
   

  	
  0.9420

  	
   

  
	
  HT

  	
   

  	
  1.0783

  	
   

  	
  1.0387

  	
   

  
	
  T1

  	
   

  	
  1.0840

  	
   

  	
  1.0387

  	
   

  
	
  T2

  	
   

  	
  1.0901

  	
   

  	
  1.0387

  	
   

  
	
  T3

  	
   

  	
  1.0198

  	
   

  	
  1.0232

  	
   

  
	
  T4

  	
   

  	
  1.0152

  	
   

  	
  1.0211

  	
   

  
	
  T5

  	
   

  	
  1.0123

  	
   

  	
  1.0396

  	
   

  
	
  T7

  	
   

  	
  0.9264

  	
   

  	
  0.9887

  	
   

  
	
  T8

  	
   

  	
  1.0160

  	
   

  	
  0.9872

  	
   

  
	
  T9

  	
   

  	
  1.0408

  	
   

  	
  1.0291

  	
   

  
	
  TA

  	
   

  	
  0.9799

  	
   

  	
  0.9860

  	
   

  
	
  TB

  	
   

  	
  0.9916

  	
   

  	
  0.9748

  	
   

  
	
  TC

  	
   

  	
  1.0079

  	
   

  	
  0.9784

  	
   

  
	
  HU

  	
   

  	
  1.0376

  	
   

  	
  1.0486

  	
   

  
	
  U1

  	
   

  	
  1.0252

  	
   

  	
  0.9926

  	
   

  
	
  U2

  	
   

  	
  0.9590

  	
   

  	
  0.9420

  	
   

  
	
  U3

  	
   

  	
  0.9590

  	
   

  	
  0.9716

  	
   

  
	
  U4

  	
   

  	
  1.0878

  	
   

  	
  1.0238

  	
   

  
	
  U5

  	
   

  	
  0.9492

  	
   

  	
  1.0456

  	
   

  
	
  U6

  	
   

  	
  0.9584

  	
   

  	
  1.0306

  	
   

  
	
  U7

  	
   

  	
  0.9771

  	
   

  	
  1.0312

  	
   

  
	
  U8

  	
   

  	
  1.0284

  	
   

  	
  1.0420

  	
   

  
	
  U9

  	
   

  	
  1.0327

  	
   

  	
  1.0501

  	
   

  
	
  HV

  	
   

  	
  1.0941

  	
   

  	
  1.0432

  	
   

  
	
  HW

  	
   

  	
  1.0546

  	
   

  	
  0.9716

  	
   

  
	
  W1

  	
   

  	
  1.0454

  	
   

  	
  0.9716

  	
   

  
	
  W2

  	
   

  	
  1.0238

  	
   

  	
  1.0211

  	
   

  
	
  W3

  	
   

  	
  0.9495

  	
   

  	
  1.0465

  	
   

  
	
  W4

  	
   

  	
  0.9322

  	
   

  	
  0.9929

  	
   

  
	
  W5

  	
   

  	
  1.0379

  	
   

  	
  1.0342

  	
   

  
	
  W6

  	
   

  	
  0.9515

  	
   

  	
  0.9824

  	
   

  
	
  W7

  	
   

  	
  0.9763

  	
   

  	
  1.0154

  	
   

  



 


45

















 


	
  Standard HMO

  	
   

  
	
  Plan

  	
   

  	
  Prof

  Factor

  	
   

  	
  Inst

  Factor

  	
   

  
	
  W8

  	
   

  	
  1.0007

  	
   

  	
  1.0390

  	
   

  
	
  W9

  	
   

  	
  0.9013

  	
   

  	
  1.0390

  	
   

  
	
  HX

  	
   

  	
  0.9457

  	
   

  	
  0.9345

  	
   

  
	
  X1

  	
   

  	
  0.9492

  	
   

  	
  0.8734

  	
   

  
	
  X2

  	
   

  	
  0.9572

  	
   

  	
  0.9345

  	
   

  
	
  X3

  	
   

  	
  0.9457

  	
   

  	
  0.9420

  	
   

  
	
  X4

  	
   

  	
  0.9584

  	
   

  	
  0.9420

  	
   

  
	
  X5

  	
   

  	
  1.0172

  	
   

  	
  1.0300

  	
   

  
	
  X6

  	
   

  	
  1.0134

  	
   

  	
  1.0387

  	
   

  
	
  X7

  	
   

  	
  0.8956

  	
   

  	
  0.9788

  	
   

  
	
  X8

  	
   

  	
  1.0160

  	
   

  	
  0.9794

  	
   

  
	
  X9

  	
   

  	
  0.8956

  	
   

  	
  0.9665

  	
   

  
	
  HY

  	
   

  	
  0.8956

  	
   

  	
  0.8965

  	
   

  
	
  Y1

  	
   

  	
  0.8985

  	
   

  	
  0.9618

  	
   

  
	
  Y2

  	
   

  	
  0.8956

  	
   

  	
  0.9342

  	
   

  
	
  Y3

  	
   

  	
  0.8956

  	
   

  	
  1.0013

  	
   

  
	
  Y4

  	
   

  	
  0.9074

  	
   

  	
  1.0013

  	
   

  
	
  Y5

  	
   

  	
  0.9489

  	
   

  	
  0.9620

  	
   

  
	
  Y6

  	
   

  	
  0.8956

  	
   

  	
  0.9417

  	
   

  
	
  Y7

  	
   

  	
  1.0111

  	
   

  	
  0.9791

  	
   

  
	
  Y8

  	
   

  	
  1.0258

  	
   

  	
  1.0387

  	
   

  
	
  Y9

  	
   

  	
  1.0264

  	
   

  	
  1.0208

  	
   

  
	
  ZA

  	
   

  	
  1.0509

  	
   

  	
  0.9674

  	
   

  
	
  ZB

  	
   

  	
  0.9800

  	
   

  	
  0.8695

  	
   

  
	
  ZC

  	
   

  	
  1.0509

  	
   

  	
  0.9674

  	
   

  
	
  ZG

  	
   

  	
  0.9800

  	
   

  	
  0.9674

  	
   

  
	
  ZK

  	
   

  	
  1.0509

  	
   

  	
  0.9749

  	
   

  
	
  ZM

  	
   

  	
  1.1022

  	
   

  	
  0.9863

  	
   

  
	
  ZN

  	
   

  	
  0.9800

  	
   

  	
  0.9749

  	
   

  
	
  ZO

  	
   

  	
  0.9215

  	
   

  	
  0.9749

  	
   

  
	
  ZS

  	
   

  	
  1.0627

  	
   

  	
  0.9755

  	
   

  
	
  ZZ

  	
   

  	
  0.9924

  	
   

  	
  0.9788

  	
   

  
	
  1A

  	
   

  	
  1.0022

  	
   

  	
  1.0214

  	
   

  
	
  1B

  	
   

  	
  1.0382

  	
   

  	
  1.0246

  	
   

  
	
  1C

  	
   

  	
  1.0428

  	
   

  	
  1.0270

  	
   

  
	
  1D

  	
   

  	
  0.9742

  	
   

  	
  1.0438

  	
   

  
	
  1E

  	
   

  	
  1.0388

  	
   

  	
  1.0285

  	
   

  
	
  1F

  	
   

  	
  1.0388

  	
   

  	
  1.0246

  	
   

  
	
  1G

  	
   

  	
  1.0388

  	
   

  	
  1.0235

  	
   

  
	
  1H

  	
   

  	
  1.0388

  	
   

  	
  0.9498

  	
   

  
	
  1J

  	
   

  	
  1.0391

  	
   

  	
  1.0408

  	
   

  
	
  1K

  	
   

  	
  1.0258

  	
   

  	
  1.0285

  	
   

  
	
  1L

  	
   

  	
  1.0445

  	
   

  	
  0.9818

  	
   

  
	
  1M

  	
   

  	
  1.0316

  	
   

  	
  1.0100

  	
   

  
	
  1N

  	
   

  	
  1.0316

  	
   

  	
  1.0438

  	
   

  
	
  1Q

  	
   

  	
  1.0316

  	
   

  	
  0.9498

  	
   

  
	
  1R

  	
   

  	
  1.1048

  	
   

  	
  1.0438

  	
   

  
	
  1S

  	
   

  	
  0.9742

  	
   

  	
  1.0067

  	
   

  
	
  1T

  	
   

  	
  0.9659

  	
   

  	
  1.0067

  	
   

  
	
  1U

  	
   

  	
  0.9299

  	
   

  	
  1.0052

  	
   

  
	
  1V

  	
   

  	
  1.0273

  	
   

  	
  1.0235

  	
   

  
	
  1W

  	
   

  	
  0.9711

  	
   

  	
  0.9818

  	
   

  
	
  1X

  	
   

  	
  1.0284

  	
   

  	
  0.9818

  	
   

  
	
  1Y

  	
   

  	
  1.1004

  	
   

  	
  1.0438

  	
   

  
	
  1Z

  	
   

  	
  1.0232

  	
   

  	
  1.0073

  	
   

  
	
  2A

  	
   

  	
  0.9742

  	
   

  	
  0.9498

  	
   

  
	
  2B

  	
   

  	
  1.1465

  	
   

  	
  1.0088

  	
   

  
	
  2C

  	
   

  	
  1.1465

  	
   

  	
  1.0088

  	
   

  
	
  2D

  	
   

  	
  0.9431

  	
   

  	
  1.0085

  	
   

  
	
  2E

  	
   

  	
  1.1004

  	
   

  	
  1.0438

  	
   

  
	
  2F

  	
   

  	
  1.0275

  	
   

  	
  1.0229

  	
   

  
	
  6A

  	
   

  	
  1.0627

  	
   

  	
  0.9710

  	
   

  
	
  6G

  	
   

  	
  0.9215

  	
   

  	
  0.9674

  	
   

  
	
  6H

  	
   

  	
  0.9803

  	
   

  	
  0.9749

  	
   

  
	
  6R

  	
   

  	
  0.9330

  	
   

  	
  0.9749

  	
   

  
	
  6S

  	
   

  	
  0.9330

  	
   

  	
  0.9378

  	
   

  
	
  6T

  	
   

  	
  0.9215

  	
   

  	
  0.9749

  	
   

  
	
  6V

  	
   

  	
  0.9215

  	
   

  	
  0.9603

  	
   

  
	
  6W

  	
   

  	
  0.9702

  	
   

  	
  0.9779

  	
   

  
	
  6Z

  	
   

  	
  0.9250

  	
   

  	
  0.8692

  	
   

  
	
  7C

  	
   

  	
  0.9814

  	
   

  	
  0.9749

  	
   

  
	
  7E

  	
   

  	
  0.9858

  	
   

  	
  0.9755

  	
   

  
	
  7F

  	
   

  	
  0.8714

  	
   

  	
  0.8998

  	
   

  
	
  7G

  	
   

  	
  1.0509

  	
   

  	
  0.9749

  	
   

  
	
  7H

  	
   

  	
  0.9215

  	
   

  	
  0.9069

  	
   

  
	
  7I

  	
   

  	
  0.9858

  	
   

  	
  0.9755

  	
   

  
	
  7J

  	
   

  	
  0.8714

  	
   

  	
  0.8998

  	
   

  
	
  7K

  	
   

  	
  0.9814

  	
   

  	
  0.9749

  	
   

  
	
  7L

  	
   

  	
  1.0062

  	
   

  	
  0.9863

  	
   

  
	
  7M

  	
   

  	
  0.9800

  	
   

  	
  0.9749

  	
   

  
	
  7N

  	
   

  	
  0.9797

  	
   

  	
  0.9749

  	
   

  
	
  7O

  	
   

  	
  0.8714

  	
   

  	
  0.9746

  	
   

  
	
  7Q

  	
   

  	
  0.9215

  	
   

  	
  0.9749

  	
   

  
	
  7R

  	
   

  	
  0.9800

  	
   

  	
  0.9749

  	
   

  
	
  7S

  	
   

  	
  0.8711

  	
   

  	
  0.9375

  	
   

  
	
  7T

  	
   

  	
  0.9215

  	
   

  	
  0.9456

  	
   

  
	
  7U

  	
   

  	
  0.9621

  	
   

  	
  0.9749

  	
   

  
	
  7V

  	
   

  	
  0.9814

  	
   

  	
  0.9378

  	
   

  
	
  7W

  	
   

  	
  0.9229

  	
   

  	
  0.9378

  	
   

  
	
  7X

  	
   

  	
  1.1172

  	
   

  	
  0.9863

  	
   

  
	
  7Z

  	
   

  	
  0.9215

  	
   

  	
  0.9782

  	
   

  
	
  9A

  	
   

  	
  0.9800

  	
   

  	
  0.9749

  	
   

  
	
  9B

  	
   

  	
  0.9918

  	
   

  	
  0.9749

  	
   

  
	
  9C

  	
   

  	
  0.9739

  	
   

  	
  0.9749

  	
   

  
	
  9E

  	
   

  	
  0.9970

  	
   

  	
  0.9788

  	
   

  
	
  9F

  	
   

  	
  1.0627

  	
   

  	
  0.9749

  	
   

  
	
  9G

  	
   

  	
  0.9950

  	
   

  	
  0.9749

  	
   

  
	
  9H

  	
   

  	
  0.9535

  	
   

  	
  0.9746

  	
   

  
	
  9I

  	
   

  	
  0.9823

  	
   

  	
  0.9749

  	
   

  
	
  9J

  	
   

  	
  0.8757

  	
   

  	
  0.8318

  	
   

  
	
  9M

  	
   

  	
  0.9933

  	
   

  	
  0.9749

  	
   

  
	
  9N

  	
   

  	
  0.9330

  	
   

  	
  0.9378

  	
   

  
	
  9O

  	
   

  	
  0.9365

  	
   

  	
  0.9749

  	
   

  
	
  9P

  	
   

  	
  1.0010

  	
   

  	
  0.9803

  	
   

  
	
  9Q

  	
   

  	
  0.9918

  	
   

  	
  0.9782

  	
   

  
	
  9R

  	
   

  	
  0.9961

  	
   

  	
  0.9854

  	
   

  
	
  9S

  	
   

  	
  0.9918

  	
   

  	
  0.9782

  	
   

  
	
  9T

  	
   

  	
  0.9800

  	
   

  	
  0.9752

  	
   

  
	
  9U

  	
   

  	
  0.9791

  	
   

  	
  0.9788

  	
   

  
	
  9W

  	
   

  	
  0.9215

  	
   

  	
  0.9552

  	
   

  
	
  9X

  	
   

  	
  0.8836

  	
   

  	
  0.9745

  	
   

  
	
  9Y

  	
   

  	
  1.0449

  	
   

  	
  0.9597

  	
   

  



 


46

















 


	
  IP

  	
   

  	
  1.0284

  	
   

  	
  0.9818

  	
   

  
	
  7Y

  	
   

  	
  1.0371

  	
   

  	
  0.9863

  	
   

  



 


A.4 Benefit Plan Factors for PPG Capitation and Hospital
Capitation/Shared Risk Budgets Effective July 1, 1998


 




	
  Small Group HMO

  	
   

  
	
  Plan

  	
   

  	
  Prof

  Factor

  	
   

  	
  Inst

  Factor

  	
   

  
	
  C4

  	
   

  	
  0.7696

  	
   

  	
  0.7841

  	
   

  
	
  C5

  	
   

  	
  0.6881

  	
   

  	
  0.7728

  	
   

  
	
  Q1

  	
   

  	
  0.9862

  	
   

  	
  0.9700

  	
   

  
	
  Q2

  	
   

  	
  0.9282

  	
   

  	
  0.9324

  	
   

  
	
  Q3

  	
   

  	
  0.8783

  	
   

  	
  0.8711

  	
   

  
	
  Q4

  	
   

  	
  0.8430

  	
   

  	
  0.8233

  	
   

  
	
  Q5

  	
   

  	
  1.0165

  	
   

  	
  1.0212

  	
   

  
	
  Q6

  	
   

  	
  0.9088

  	
   

  	
  1.0059

  	
   

  
	
  Q7

  	
   

  	
  0.8430

  	
   

  	
  0.8233

  	
   

  
	
  Q8

  	
   

  	
  0.9282

  	
   

  	
  0.9700

  	
   

  
	
  QT

  	
   

  	
  0.7766

  	
   

  	
  0.7825

  	
   

  
	
  QU

  	
   

  	
  0.6991

  	
   

  	
  0.7696

  	
   

  
	
  QV

  	
   

  	
  0.6922

  	
   

  	
  0.7325

  	
   

  
	
  QW

  	
   

  	
  0.6922

  	
   

  	
  0.7325

  	
   

  
	
  QX

  	
   

  	
  0.7261

  	
   

  	
  0.7823

  	
   

  
	
  QY

  	
   

  	
  0.7647

  	
   

  	
  0.7876

  	
   

  
	
  QZ

  	
   

  	
  0.7647

  	
   

  	
  0.7876

  	
   

  
	
  V1

  	
   

  	
  1.0111

  	
   

  	
  0.9926

  	
   

  
	
  V2

  	
   

  	
  0.9421

  	
   

  	
  0.9829

  	
   

  
	
  V3

  	
   

  	
  0.8417

  	
   

  	
  0.9762

  	
   

  






 




	
  Individual BMO

  	
   

  
	
  Plan

  	
   

  	
  Prof

  Factor

  	
   

  	
  Inst

  Factor

  	
   

  
	
  Shasta 5

  	
   

  	
  0.9656

  	
   

  	
  0.8895

  	
   

  
	
  Shasta 7

  	
   

  	
  0.9412

  	
   

  	
  0.8810

  	
   

  
	
  HMO Advantage 10

  	
   

  	
  0.8901

  	
   

  	
  0.8872

  	
   

  
	
  Shasta 15

  	
   

  	
  0.8399

  	
   

  	
  0.8644

  	
   

  
	
  Shasta Classic

  	
   

  	
  0.7842

  	
   

  	
  0.7665

  	
   

  






 




	
  Medicare Supplement HMO

  	
   

  
	
  Plan

  	
   

  	
  Prof

  Factor

  	
   

  
	
  Medicare
  Conversion Plan J

  	
   

  	
  1.2513

  	
   

  
	
  Medicare COB $0
  Copay

  	
   

  	
  1.1627

  	
   

  
	
  Medicare COB $5
  and up Copay

  	
   

  	
  0.6580

  	
   

  






 




	
  Medicare Supplement POS

  	
   

  
	
  Plan

  	
   

  	
  Prof

  Factor

  	
   

  
	
  POS Medicare COB $0 Copay

  	
   

  	
  1.1627

  	
   

  
	
  POS Medicare COB $5 and up

  Copay

  	
   

  	
  0.6580

  	
   

  






 


47

















 


 


A.5 Benefit Plan Factors for PPG Capitation and Hospital
Capitation/Shared Risk Budgets Effective


September
1, 1998


 


	
  Standard HMO

  
	
  Plan

  	
   

  	
  Prof

  Factor

  	
   

  	
  Inst

  Factor

  	
   

  
	
  HA

  	
   

  	
  1.0595

  	
   

  	
  0.9673

  	
   

  
	
  A1

  	
   

  	
  1.0628

  	
   

  	
  0.9725

  	
   

  
	
  A2

  	
   

  	
  1.0595

  	
   

  	
  0.9776

  	
   

  
	
  A3

  	
   

  	
  1.0619

  	
   

  	
  0.9810

  	
   

  
	
  A4

  	
   

  	
  1.0595

  	
   

  	
  0.9776

  	
   

  
	
  A5

  	
   

  	
  1.0628

  	
   

  	
  0.9752

  	
   

  
	
  A6

  	
   

  	
  1.0047

  	
   

  	
  0.9673

  	
   

  
	
  A7

  	
   

  	
  0.9500

  	
   

  	
  0.9295

  	
   

  
	
  A8

  	
   

  	
  1.0776

  	
   

  	
  1.0076

  	
   

  
	
  A9

  	
   

  	
  1.0257

  	
   

  	
  1.0076

  	
   

  
	
  HB

  	
   

  	
  1.0047

  	
   

  	
  0.8655

  	
   

  
	
  BB

  	
   

  	
  1.0047

  	
   

  	
  0.8655

  	
   

  
	
  B1

  	
   

  	
  0.9198

  	
   

  	
  0.8254

  	
   

  
	
  B2

  	
   

  	
  0.9198

  	
   

  	
  0.8252

  	
   

  
	
  B3

  	
   

  	
  0.9198

  	
   

  	
  0.8254

  	
   

  
	
  B4

  	
   

  	
  0.9198

  	
   

  	
  0.8460

  	
   

  
	
  B5

  	
   

  	
  0.9198

  	
   

  	
  0.8357

  	
   

  
	
  B6

  	
   

  	
  1.0047

  	
   

  	
  0.8758

  	
   

  
	
  B7

  	
   

  	
  0.9743

  	
   

  	
  1.0085

  	
   

  
	
  B8

  	
   

  	
  0.9644

  	
   

  	
  0.9941

  	
   

  
	
  B9

  	
   

  	
  0.9690

  	
   

  	
  1.0076

  	
   

  
	
  HC

  	
   

  	
  1.0639

  	
   

  	
  0.9919

  	
   

  
	
  C1

  	
   

  	
  1.0613

  	
   

  	
  0.9919

  	
   

  
	
  C2

  	
   

  	
  1.0668

  	
   

  	
  1.0032

  	
   

  
	
  C3

  	
   

  	
  1.0066

  	
   

  	
  0.9919

  	
   

  
	
  C6

  	
   

  	
  1.0162

  	
   

  	
  1.0076

  	
   

  
	
  C7

  	
   

  	
  1.0639

  	
   

  	
  1.0022

  	
   

  
	
  C8

  	
   

  	
  0.9463

  	
   

  	
  0.9695

  	
   

  
	
  C9

  	
   

  	
  0.9243

  	
   

  	
  1.0076

  	
   

  
	
  HD

  	
   

  	
  1.0807

  	
   

  	
  1.0031

  	
   

  
	
  D1

  	
   

  	
  1.0613

  	
   

  	
  1.0022

  	
   

  
	
  D2

  	
   

  	
  1.0182

  	
   

  	
  1.0041

  	
   

  
	
  D3

  	
   

  	
  0.9327

  	
   

  	
  0.8259

  	
   

  
	
  D4

  	
   

  	
  0.9638

  	
   

  	
  0.8651

  	
   

  
	
  D5

  	
   

  	
  0.9599

  	
   

  	
  0.9776

  	
   

  
	
  D6

  	
   

  	
  0.9566

  	
   

  	
  0.9521

  	
   

  
	
  D7

  	
   

  	
  0.9897

  	
   

  	
  1.0074

  	
   

  
	
  D8

  	
   

  	
  1.0189

  	
   

  	
  1.0056

  	
   

  
	
  D9

  	
   

  	
  1.0319

  	
   

  	
  1.0076

  	
   

  
	
  HE

  	
   

  	
  1.0286

  	
   

  	
  1.0105

  	
   

  
	
  E1

  	
   

  	
  1.0137

  	
   

  	
  0.9737

  	
   

  
	
  E2

  	
   

  	
  0.9836

  	
   

  	
  1.0050

  	
   

  
	
  E3

  	
   

  	
  1.0064

  	
   

  	
  0.9776

  	
   

  
	
  E4

  	
   

  	
  0.9584

  	
   

  	
  0.9706

  	
   

  
	
  E5

  	
   

  	
  1.0403

  	
   

  	
  1.0037

  	
   

  
	
  E6

  	
   

  	
  0.9656

  	
   

  	
  0.9737

  	
   

  
	
  E7

  	
   

  	
  0.9905

  	
   

  	
  1.0037

  	
   

  
	
  E8

  	
   

  	
  1.0180

  	
   

  	
  0.9985

  	
   

  
	
  E9

  	
   

  	
  0.9690

  	
   

  	
  0.9801

  	
   

  
	
  EA

  	
   

  	
  0.9755

  	
   

  	
  1.0033

  	
   

  
	
  EB

  	
   

  	
  0.9023

  	
   

  	
  0.8278

  	
   

  
	
  EC

  	
   

  	
  0.9604

  	
   

  	
  1.0076

  	
   

  
	
  ED

  	
   

  	
  1.0061

  	
   

  	
  0.9805

  	
   

  
	
  EE

  	
   

  	
  0.9951

  	
   

  	
  0.9793

  	
   

  
	
  EF

  	
   

  	
  1.0307

  	
   

  	
  1.0063

  	
   

  
	
  EG

  	
   

  	
  1.0307

  	
   

  	
  1.0063

  	
   

  
	
  EH

  	
   

  	
  0.9585

  	
   

  	
  1.0018

  	
   

  
	
  EI

  	
   

  	
  0.9966

  	
   

  	
  0.9805

  	
   

  
	
  EJ

  	
   

  	
  1.0329

  	
   

  	
  1.0118

  	
   

  
	
  EK

  	
   

  	
  0.9310

  	
   

  	
  1.0050

  	
   

  
	
  EL

  	
   

  	
  1.0481

  	
   

  	
  0.9786

  	
   

  
	
  EM

  	
   

  	
  0.9714

  	
   

  	
  1.0135

  	
   

  
	
  EN

  	
   

  	
  0.9934

  	
   

  	
  0.9778

  	
   

  
	
  EO

  	
   

  	
  0.9727

  	
   

  	
  0.9633

  	
   

  
	
  EP

  	
   

  	
  0.9486

  	
   

  	
  0.9777

  	
   

  
	
  EQ

  	
   

  	
  0.9740

  	
   

  	
  1.0035

  	
   

  
	
  ES

  	
   

  	
  0.9796

  	
   

  	
  1.0076

  	
   

  
	
  HF

  	
   

  	
  0.9682

  	
   

  	
  0.9875

  	
   

  
	
  F1

  	
   

  	
  1.0230

  	
   

  	
  0.9893

  	
   

  
	
  F2

  	
   

  	
  1.0084

  	
   

  	
  0.9737

  	
   

  
	
  F3

  	
   

  	
  1.0071

  	
   

  	
  0.9776

  	
   

  
	
  F4

  	
   

  	
  0.9731

  	
   

  	
  1.0074

  	
   

  
	
  F5

  	
   

  	
  1.0087

  	
   

  	
  0.9780

  	
   

  
	
  F6

  	
   

  	
  1.0195

  	
   

  	
  1.0076

  	
   

  
	
  F7

  	
   

  	
  1.0804

  	
   

  	
  0.9903

  	
   

  
	
  F8

  	
   

  	
  0.8346

  	
   

  	
  0.8083

  	
   

  
	
  F9

  	
   

  	
  1.0350

  	
   

  	
  1.0037

  	
   

  
	
  FA

  	
   

  	
  1.0203

  	
   

  	
  1.0008

  	
   

  
	
  FB

  	
   

  	
  1.0213

  	
   

  	
  1.0145

  	
   

  
	
  FC

  	
   

  	
  1.0234

  	
   

  	
  1.0039

  	
   

  
	
  FD

  	
   

  	
  1.0241

  	
   

  	
  1.0023

  	
   

  
	
  FE

  	
   

  	
  0.9727

  	
   

  	
  1.0008

  	
   

  
	
  FF

  	
   

  	
  0.9709

  	
   

  	
  1.0062

  	
   

  
	
  FG

  	
   

  	
  0.9694

  	
   

  	
  0.9858

  	
   

  
	
  FH

  	
   

  	
  0.9708

  	
   

  	
  1.0008

  	
   

  
	
  FI

  	
   

  	
  0.9727

  	
   

  	
  1.0008

  	
   

  
	
  FJ

  	
   

  	
  0.9260

  	
   

  	
  1.0008

  	
   

  
	
  FK

  	
   

  	
  0.9727

  	
   

  	
  0.9581

  	
   

  
	
  FL

  	
   

  	
  0.9260

  	
   

  	
  0.9633

  	
   

  
	
  HG

  	
   

  	
  1.0047

  	
   

  	
  0.9673

  	
   

  
	
  G1

  	
   

  	
  0.9566

  	
   

  	
  0.9673

  	
   

  
	
  G2

  	
   

  	
  1.0047

  	
   

  	
  0.9776

  	
   

  
	
  G3

  	
   

  	
  1.0080

  	
   

  	
  0.9776

  	
   

  
	
  G4

  	
   

  	
  0.9566

  	
   

  	
  0.9776

  	
   

  
	
  G5

  	
   

  	
  0.9095

  	
   

  	
  0.9671

  	
   

  
	
  G6

  	
   

  	
  1.0231

  	
   

  	
  0.9967

  	
   

  
	
  G9

  	
   

  	
  1.0047

  	
   

  	
  0.9776

  	
   

  
	
  I3

  	
   

  	
  0.9909

  	
   

  	
  1.0106

  	
   

  
	
  I4

  	
   

  	
  0.9198

  	
   

  	
  0.8442

  	
   

  
	
  I5

  	
   

  	
  0.9677

  	
   

  	
  1.0044

  	
   

  
	
  I6

  	
   

  	
  1.0338

  	
   

  	
  0.9745

  	
   

  
	
  I7

  	
   

  	
  1.0022

  	
   

  	
  1.0076

  	
   

  
	
  I8

  	
   

  	
  0.9746

  	
   

  	
  0.9916

  	
   

  
	
  I9

  	
   

  	
  0.9851

  	
   

  	
  1.0037

  	
   

  
	
  J3

  	
   

  	
  1.0165

  	
   

  	
  0.9849

  	
   

  
	
  J4

  	
   

  	
  1.0108

  	
   

  	
  0.9849

  	
   

  
	
  J5

  	
   

  	
  1.0071

  	
   

  	
  0.9778

  	
   

  
	
  J6

  	
   

  	
  0.9714

  	
   

  	
  0.9783

  	
   

  
	
  J7

  	
   

  	
  0.9756

  	
   

  	
  1.0085

  	
   

  
	
  J8

  	
   

  	
  0.9666

  	
   

  	
  0.9839

  	
   

  
	
  J9

  	
   

  	
  1.1169

  	
   

  	
  1.0283

  	
   

  
	
  HK

  	
   

  	
  1.0784

  	
   

  	
  1.0076

  	
   

  
	
  K1

  	
   

  	
  1.0236

  	
   

  	
  1.0076

  	
   

  
	
  K2

  	
   

  	
  0.9663

  	
   

  	
  0.9801

  	
   

  
	
  K3

  	
   

  	
  1.0255

  	
   

  	
  1.0080

  	
   

  
	
  K4

  	
   

  	
  1.0817

  	
   

  	
  1.0076

  	
   

  
	
  K6

  	
   

  	
  0.9782

  	
   

  	
  1.0054

  	
   

  
	
  K7

  	
   

  	
  0.9845

  	
   

  	
  0.9966

  	
   

  
	
  K8

  	
   

  	
  0.9749

  	
   

  	
  0.9844

  	
   

  
	
  K9

  	
   

  	
  0.9566

  	
   

  	
  0.9521

  	
   

  
	
  KI

  	
   

  	
  0.9727

  	
   

  	
  1.0010

  	
   

  
	
  KJ

  	
   

  	
  1.0203

  	
   

  	
  1.0010

  	
   

  
	
  KK

  	
   

  	
  0.9727

  	
   

  	
  0.9583

  	
   

  
	
  KL

  	
   

  	
  0.9763

  	
   

  	
  0.9864

  	
   

  
	
  KM

  	
   

  	
  0.9260

  	
   

  	
  1.0010

  	
   

  
	
  L1

  	
   

  	
  0.9825

  	
   

  	
  1.0061

  	
   

  
	
  L2

  	
   

  	
  0.9599

  	
   

  	
  0.9777

  	
   

  
	
  L3

  	
   

  	
  0.9566

  	
   

  	
  0.9777

  	
   

  
	
  L4

  	
   

  	
  0.9128

  	
   

  	
  0.9774

  	
   

  
	
  L5

  	
   

  	
  0.9695

  	
   

  	
  0.9776

  	
   

  
	
  L6

  	
   

  	
  1.0177

  	
   

  	
  0.9776

  	
   

  
	
  L7

  	
   

  	
  1.0424

  	
   

  	
  0.9756

  	
   

  
	
  L8

  	
   

  	
  1.0243

  	
   

  	
  0.9673

  	
   

  
	
  L9

  	
   

  	
  0.9755

  	
   

  	
  1.0076

  	
   

  
	
  HM

  	
   

  	
  1.1360

  	
   

  	
  1.0225

  	
   

  
	
  M1

  	
   

  	
  0.9825

  	
   

  	
  1.0061

  	
   

  
	
  M2

  	
   

  	
  1.1361

  	
   

  	
  1.0225

  	
   

  
	
  M3

  	
   

  	
  1.0195

  	
   

  	
  1.0108

  	
   

  
	
  M4

  	
   

  	
  1.0195

  	
   

  	
  1.0076

  	
   

  
	
  M5

  	
   

  	
  1.0124

  	
   

  	
  1.0054

  	
   

  
	
  M6

  	
   

  	
  0.9749

  	
   

  	
  0.9175

  	
   

  
	
  M7

  	
   

  	
  0.9671

  	
   

  	
  0.8754

  	
   

  
	
  M8

  	
   

  	
  1.0231

  	
   

  	
  1.0074

  	
   

  
	
  M9

  	
   

  	
  1.0743

  	
   

  	
  1.0078

  	
   

  
	
  HN

  	
   

  	
  1.0195

  	
   

  	
  1.0076

  	
   

  
	
  N1

  	
   

  	
  1.0246

  	
   

  	
  1.0076

  	
   

  
	
  N2

  	
   

  	
  1.0211

  	
   

  	
  1.0076

  	
   

  
	
  N3

  	
   

  	
  1.0230

  	
   

  	
  1.0076

  	
   

  
	
  N4

  	
   

  	
  1.0066

  	
   

  	
  1.0022

  	
   

  
	
  N5

  	
   

  	
  1.0082

  	
   

  	
  1.0022

  	
   

  
	
  N6

  	
   

  	
  1.0099

  	
   

  	
  1.0022

  	
   

  
	
  N7

  	
   

  	
  1.0228

  	
   

  	
  1.0076

  	
   

  
	
  N8

  	
   

  	
  1.0294

  	
   

  	
  1.0033

  	
   

  
	
  N9

  	
   

  	
  1.0207

  	
   

  	
  0.9916

  	
   

  
	
  HO

  	
   

  	
  0.9714

  	
   

  	
  1.0076

  	
   

  
	
  O1

  	
   

  	
  0.9747

  	
   

  	
  1.0076

  	
   

  
	
  O2

  	
   

  	
  0.9714

  	
   

  	
  0.9676

  	
   

  
	
  O3

  	
   

  	
  0.9749

  	
   

  	
  1.0076

  	
   

  
	
  O4

  	
   

  	
  1.0195

  	
   

  	
  0.9676

  	
   

  
	
  O5

  	
   

  	
  0.9584

  	
   

  	
  0.9864

  	
   

  
	
  O6

  	
   

  	
  1.0327

  	
   

  	
  1.0149

  	
   

  
	
  O7

  	
   

  	
  1.0317

  	
   

  	
  1.0033

  	
   

  
	
  O8

  	
   

  	
  1.0050

  	
   

  	
  0.9733

  	
   

  
	
  O9

  	
   

  	
  0.9822

  	
   

  	
  1.0076

  	
   

  
	
  HP

  	
   

  	
  1.0049

  	
   

  	
  0.9919

  	
   

  
	
  P1

  	
   

  	
  1.0121

  	
   

  	
  0.9949

  	
   

  
	
  P2

  	
   

  	
  0.9030

  	
   

  	
  0.9396

  	
   

  
	
  P3

  	
   

  	
  0.9649

  	
   

  	
  0.9776

  	
   

  
	
  P4

  	
   

  	
  1.0195

  	
   

  	
  1.0186

  	
   

  
	
  P5

  	
   

  	
  0.9095

  	
   

  	
  0.9731

  	
   

  
	
  P6

  	
   

  	
  1.0823

  	
   

  	
  0.9838

  	
   

  
	
  P7

  	
   

  	
  1.0273

  	
   

  	
  1.0076

  	
   

  
	
  P8

  	
   

  	
  0.9614

  	
   

  	
  0.9828

  	
   

  
	
  P9

  	
   

  	
  1.0165

  	
   

  	
  0.9833

  	
   

  
	
  HR

  	
   

  	
  1.1304

  	
   

  	
  1.0233

  	
   

  
	
  R1

  	
   

  	
  1.0121

  	
   

  	
  1.0052

  	
   

  
	
  R2

  	
   

  	
  0.9749

  	
   

  	
  1.0076

  	
   

  
	
  R3

  	
   

  	
  0.9909

  	
   

  	
  1.0076

  	
   

  
	
  R4

  	
   

  	
  0.9003

  	
   

  	
  0.9029

  	
   

  
	
  R5

  	
   

  	
  1.0047

  	
   

  	
  0.9777

  	
   

  
	
  R6

  	
   

  	
  1.0047

  	
   

  	
  0.9399

  	
   

  
	
  R7

  	
   

  	
  0.8997

  	
   

  	
  0.9025

  	
   

  
	
  R8

  	
   

  	
  0.9640

  	
   

  	
  1.0052

  	
   

  
	
  R9

  	
   

  	
  0.9198

  	
   

  	
  0.8412

  	
   

  
	
  HS

  	
   

  	
  1.0817

  	
   

  	
  1.0022

  	
   

  
	
  S1

  	
   

  	
  1.0973

  	
   

  	
  1.0283

  	
   

  
	
  S2

  	
   

  	
  1.0259

  	
   

  	
  1.0091

  	
   

  
	
  S3

  	
   

  	
  1.0485

  	
   

  	
  1.0156

  	
   

  
	
  S4

  	
   

  	
  0.9629

  	
   

  	
  0.9295

  	
   

  
	
  S5

  	
   

  	
  0.9198

  	
   

  	
  0.8442

  	
   

  
	
  S6

  	
   

  	
  1.0658

  	
   

  	
  1.0022

  	
   

  
	
  S7

  	
   

  	
  1.0085

  	
   

  	
  1.0000

  	
   

  
	
  S8

  	
   

  	
  1.0080

  	
   

  	
  0.9777

  	
   

  
	
  S9

  	
   

  	
  1.0080

  	
   

  	
  0.9399

  	
   

  
	
  HT

  	
   

  	
  1.0743

  	
   

  	
  1.0076

  	
   

  
	
  T1

  	
   

  	
  1.0759

  	
   

  	
  1.0076

  	
   

  
	
  T2

  	
   

  	
  1.0776

  	
   

  	
  1.0076

  	
   

  
	
  T3

  	
   

  	
  1.0187

  	
   

  	
  0.9985

  	
   

  
	
  T4

  	
   

  	
  1.0156

  	
   

  	
  0.9985

  	
   

  
	
  T5

  	
   

  	
  1.0212

  	
   

  	
  1.0078

  	
   

  
	
  T7

  	
   

  	
  0.9229

  	
   

  	
  0.9673

  	
   

  
	
  T8

  	
   

  	
  1.0086

  	
   

  	
  0.9833

  	
   

  
	
  T9

  	
   

  	
  1.0245

  	
   

  	
  1.0079

  	
   

  
	
  TA

  	
   

  	
  0.9966

  	
   

  	
  0.9894

  	
   

  
	
  TB

  	
   

  	
  0.9929

  	
   

  	
  0.9778

  	
   

  
	
  TC

  	
   

  	
  1.0104

  	
   

  	
  0.9780

  	
   

  
	
  HU

  	
   

  	
  1.0443

  	
   

  	
  1.0165

  	
   

  
	
  U1

  	
   

  	
  1.0260

  	
   

  	
  0.9805

  	
   

  
	
  U2

  	
   

  	
  0.9599

  	
   

  	
  0.9399

  	
   

  
	
  U3

  	
   

  	
  0.9599

  	
   

  	
  0.9673

  	
   

  
	
  U4

  	
   

  	
  1.0778

  	
   

  	
  1.0022

  	
   

  
	
  U5

  	
   

  	
  0.9714

  	
   

  	
  1.0106

  	
   

  
	
  U6

  	
   

  	
  0.9750

  	
   

  	
  1.0074

  	
   

  
	
  U7

  	
   

  	
  0.9731

  	
   

  	
  1.0085

  	
   

  
	
  U8

  	
   

  	
  1.0263

  	
   

  	
  1.0080

  	
   

  
	
  U9

  	
   

  	
  1.0210

  	
   

  	
  1.0141

  	
   

  
	
  HV

  	
   

  	
  1.0907

  	
   

  	
  1.0107

  	
   

  
	
  HW

  	
   

  	
  1.0524

  	
   

  	
  0.9681

  	
   

  
	
  W1

  	
   

  	
  1.0542

  	
   

  	
  0.9681

  	
   

  
	
  W2

  	
   

  	
  1.0067

  	
   

  	
  1.0000

  	
   

  



 


48

















 


	
  Standard HMO

  	
   

  
	
  Plan

  	
   

  	
  Prof

  Factor

  	
   

  	
  Inst

  Factor

  	
   

  
	
  W3

  	
   

  	
  0.9715

  	
   

  	
  1.0128

  	
   

  
	
  W4

  	
   

  	
  0.9287

  	
   

  	
  0.9680

  	
   

  
	
  W5

  	
   

  	
  1.0266

  	
   

  	
  1.0095

  	
   

  
	
  W6

  	
   

  	
  0.9649

  	
   

  	
  0.9806

  	
   

  
	
  W7

  	
   

  	
  0.9839

  	
   

  	
  0.9941

  	
   

  
	
  W8

  	
   

  	
  1.0162

  	
   

  	
  0.9776

  	
   

  
	
  W9

  	
   

  	
  0.9112

  	
   

  	
  0.9774

  	
   

  
	
  HX

  	
   

  	
  0.9500

  	
   

  	
  0.9295

  	
   

  
	
  X1

  	
   

  	
  0.9638

  	
   

  	
  0.8651

  	
   

  
	
  X2

  	
   

  	
  0.9533

  	
   

  	
  0.9295

  	
   

  
	
  X3

  	
   

  	
  0.9500

  	
   

  	
  0.9398

  	
   

  
	
  X4

  	
   

  	
  0.9821

  	
   

  	
  0.9058

  	
   

  
	
  X5

  	
   

  	
  1.0231

  	
   

  	
  1.0074

  	
   

  
	
  X6

  	
   

  	
  1.0240

  	
   

  	
  1.0076

  	
   

  
	
  X7

  	
   

  	
  0.9095

  	
   

  	
  0.9774

  	
   

  
	
  X8

  	
   

  	
  1.0043

  	
   

  	
  0.9779

  	
   

  
	
  X9

  	
   

  	
  0.9095

  	
   

  	
  0.9627

  	
   

  
	
  HY

  	
   

  	
  0.8997

  	
   

  	
  0.8921

  	
   

  
	
  Y1

  	
   

  	
  0.9145

  	
   

  	
  0.9280

  	
   

  
	
  Y2

  	
   

  	
  0.8997

  	
   

  	
  0.9293

  	
   

  
	
  Y3

  	
   

  	
  0.9145

  	
   

  	
  0.9674

  	
   

  
	
  Y4

  	
   

  	
  0.9178

  	
   

  	
  0.9674

  	
   

  
	
  Y5

  	
   

  	
  0.9714

  	
   

  	
  0.9282

  	
   

  
	
  Y6

  	
   

  	
  0.8997

  	
   

  	
  0.9396

  	
   

  
	
  Y7

  	
   

  	
  1.0047

  	
   

  	
  0.9776

  	
   

  
	
  Y8

  	
   

  	
  1.0228

  	
   

  	
  1.0076

  	
   

  
	
  Y9

  	
   

  	
  0.9985

  	
   

  	
  1.0000

  	
   

  
	
  ZA

  	
   

  	
  1.0481

  	
   

  	
  0.9673

  	
   

  
	
  ZB

  	
   

  	
  0.9934

  	
   

  	
  0.8655

  	
   

  
	
  ZC

  	
   

  	
  1.0481

  	
   

  	
  0.9673

  	
   

  
	
  ZG

  	
   

  	
  0.9934

  	
   

  	
  0.9673

  	
   

  
	
  ZK

  	
   

  	
  1.0481

  	
   

  	
  0.9776

  	
   

  
	
  ZM

  	
   

  	
  1.0941

  	
   

  	
  0.9903

  	
   

  
	
  ZN

  	
   

  	
  0.9934

  	
   

  	
  0.9776

  	
   

  
	
  ZO

  	
   

  	
  0.9452

  	
   

  	
  0.9776

  	
   

  
	
  ZS

  	
   

  	
  1.0514

  	
   

  	
  0.9776

  	
   

  
	
  ZZ

  	
   

  	
  0.9870

  	
   

  	
  0.9780

  	
   

  
	
  1A

  	
   

  	
  0.9803

  	
   

  	
  0.9966

  	
   

  
	
  1B

  	
   

  	
  1.0012

  	
   

  	
  1.0012

  	
   

  
	
  1C

  	
   

  	
  1.0311

  	
   

  	
  1.0012

  	
   

  
	
  1D

  	
   

  	
  0.9805

  	
   

  	
  1.0064

  	
   

  
	
  1E

  	
   

  	
  1.0186

  	
   

  	
  1.0056

  	
   

  
	
  1F

  	
   

  	
  1.0152

  	
   

  	
  1.0012

  	
   

  
	
  1G

  	
   

  	
  1.0149

  	
   

  	
  1.0004

  	
   

  
	
  1H

  	
   

  	
  1.0152

  	
   

  	
  0.9228

  	
   

  
	
  1J

  	
   

  	
  1.0295

  	
   

  	
  1.0064

  	
   

  
	
  1K

  	
   

  	
  1.0138

  	
   

  	
  1.0056

  	
   

  
	
  1L

  	
   

  	
  1.0292

  	
   

  	
  1.0021

  	
   

  
	
  1M

  	
   

  	
  1.0152

  	
   

  	
  0.9854

  	
   

  
	
  1N

  	
   

  	
  1.0295

  	
   

  	
  1.0064

  	
   

  
	
  1P

  	
   

  	
  1.0152

  	
   

  	
  1.0012

  	
   

  
	
  1Q

  	
   

  	
  1.0152

  	
   

  	
  0.9228

  	
   

  
	
  1R

  	
   

  	
  1.0863

  	
   

  	
  1.0064

  	
   

  
	
  1S

  	
   

  	
  0.9661

  	
   

  	
  0.9820

  	
   

  
	
  1T

  	
   

  	
  0.9629

  	
   

  	
  0.9820

  	
   

  
	
  1U

  	
   

  	
  0.9208

  	
   

  	
  0.9617

  	
   

  
	
  1V

  	
   

  	
  1.0337

  	
   

  	
  0.9678

  	
   

  
	
  1W

  	
   

  	
  0.9661

  	
   

  	
  1.0012

  	
   

  
	
  1X

  	
   

  	
  1.0187

  	
   

  	
  1.0012

  	
   

  
	
  1Y

  	
   

  	
  1.0710

  	
   

  	
  1.0012

  	
   

  
	
  1Z

  	
   

  	
  1.0119

  	
   

  	
  0.9582

  	
   

  
	
  2A

  	
   

  	
  0.9661

  	
   

  	
  0.9228

  	
   

  
	
  2B

  	
   

  	
  1.0963

  	
   

  	
  1.0053

  	
   

  
	
  2C

  	
   

  	
  1.0963

  	
   

  	
  1.0053

  	
   

  
	
  2D

  	
   

  	
  0.9181

  	
   

  	
  0.9228

  	
   

  
	
  2E

  	
   

  	
  1.0710

  	
   

  	
  1.0012

  	
   

  
	
  2F

  	
   

  	
  1.0091

  	
   

  	
  1.0000

  	
   

  
	
  6A

  	
   

  	
  1.0514

  	
   

  	
  0.9725

  	
   

  
	
  6G

  	
   

  	
  0.9452

  	
   

  	
  0.9673

  	
   

  
	
  6H

  	
   

  	
  1.0047

  	
   

  	
  0.9776

  	
   

  
	
  6R

  	
   

  	
  0.9485

  	
   

  	
  0.9776

  	
   

  
	
  6S

  	
   

  	
  0.9452

  	
   

  	
  0.9398

  	
   

  
	
  6T

  	
   

  	
  0.9452

  	
   

  	
  0.9776

  	
   

  
	
  6V

  	
   

  	
  0.9452

  	
   

  	
  0.9625

  	
   

  
	
  6W

  	
   

  	
  0.9851

  	
   

  	
  0.9819

  	
   

  
	
  6Z

  	
   

  	
  0.9524

  	
   

  	
  0.8651

  	
   

  
	
  7C

  	
   

  	
  0.9934

  	
   

  	
  0.9776

  	
   

  
	
  7E

  	
   

  	
  0.9987

  	
   

  	
  0.9776

  	
   

  
	
  7F

  	
   

  	
  0.8921

  	
   

  	
  0.9025

  	
   

  
	
  7G

  	
   

  	
  1.0481

  	
   

  	
  0.9776

  	
   

  
	
  7H

  	
   

  	
  0.9452

  	
   

  	
  0.9319

  	
   

  
	
  7I

  	
   

  	
  0.9988

  	
   

  	
  0.9776

  	
   

  
	
  7J

  	
   

  	
  0.8921

  	
   

  	
  0.9025

  	
   

  
	
  7K

  	
   

  	
  0.9934

  	
   

  	
  0.9777

  	
   

  
	
  7L

  	
   

  	
  1.0334

  	
   

  	
  0.9903

  	
   

  
	
  7M

  	
   

  	
  0.9934

  	
   

  	
  0.9777

  	
   

  
	
  7N

  	
   

  	
  0.9836

  	
   

  	
  0.9779

  	
   

  
	
  7O

  	
   

  	
  0.8981

  	
   

  	
  0.9774

  	
   

  
	
  7Q

  	
   

  	
  0.9452

  	
   

  	
  0.9776

  	
   

  
	
  7R

  	
   

  	
  0.9934

  	
   

  	
  0.9777

  	
   

  
	
  7S

  	
   

  	
  0.8884

  	
   

  	
  0.9396

  	
   

  
	
  7T

  	
   

  	
  0.9452

  	
   

  	
  0.9474

  	
   

  
	
  7U

  	
   

  	
  0.9934

  	
   

  	
  0.9776

  	
   

  
	
  7V

  	
   

  	
  0.9934

  	
   

  	
  0.9399

  	
   

  
	
  7W

  	
   

  	
  0.9452

  	
   

  	
  0.9399

  	
   

  
	
  7X

  	
   

  	
  1.0942

  	
   

  	
  0.9903

  	
   

  
	
  7Y

  	
   

  	
  1.0334

  	
   

  	
  0.9903

  	
   

  
	
  7Z

  	
   

  	
  0.9452

  	
   

  	
  0.9776

  	
   

  
	
  9A

  	
   

  	
  0.9934

  	
   

  	
  0.9776

  	
   

  
	
  9B

  	
   

  	
  0.9967

  	
   

  	
  0.9776

  	
   

  
	
  9C

  	
   

  	
  0.9967

  	
   

  	
  0.9776

  	
   

  
	
  9E

  	
   

  	
  0.9908

  	
   

  	
  0.9780

  	
   

  
	
  9F

  	
   

  	
  1.0514

  	
   

  	
  0.9776

  	
   

  
	
  9G

  	
   

  	
  1.0012

  	
   

  	
  0.9776

  	
   

  
	
  9H

  	
   

  	
  0.9967

  	
   

  	
  0.9805

  	
   

  
	
  9I

  	
   

  	
  0.9934

  	
   

  	
  0.9777

  	
   

  
	
  9J

  	
   

  	
  0.9084

  	
   

  	
  0.8363

  	
   

  
	
  9M

  	
   

  	
  0.9967

  	
   

  	
  0.9777

  	
   

  
	
  9N

  	
   

  	
  0.9485

  	
   

  	
  0.9398

  	
   

  
	
  9O

  	
   

  	
  0.9560

  	
   

  	
  0.9776

  	
   

  
	
  9P

  	
   

  	
  0.9876

  	
   

  	
  0.9795

  	
   

  
	
  9Q

  	
   

  	
  0.9967

  	
   

  	
  0.9776

  	
   

  
	
  9R

  	
   

  	
  0.9970

  	
   

  	
  0.9849

  	
   

  
	
  9S

  	
   

  	
  0.9967

  	
   

  	
  0.9776

  	
   

  
	
  9T

  	
   

  	
  0.9934

  	
   

  	
  0.9778

  	
   

  
	
  9U

  	
   

  	
  0.9866

  	
   

  	
  0.9811

  	
   

  
	
  9W

  	
   

  	
  0.9460

  	
   

  	
  0.9592

  	
   

  
	
  9X

  	
   

  	
  0.9014

  	
   

  	
  0.9776

  	
   

  
	
  9Y

  	
   

  	
  1.0327

  	
   

  	
  0.9334

  	
   

  



 


49

















 


A.5
Benefit Plan Factors for PPG Capitation and Hospital Capitation/Shared Risk
Budgets Effective


September
1, 1998


 




	
  Small Group HMO

  	
   

  
	
  Plan

  	
   

  	
  Prof

  Factor

  	
   

  	
  Inst

  Factor

  	
   

  
	
  C4

  	
   

  	
  0.9958

  	
   

  	
  1.0075

  	
   

  
	
  C5

  	
   

  	
  0.9016

  	
   

  	
  0.9893

  	
   

  
	
  Q1

  	
   

  	
  0.9877

  	
   

  	
  0.9749

  	
   

  
	
  Q2

  	
   

  	
  0.9350

  	
   

  	
  0.9367

  	
   

  
	
  Q3

  	
   

  	
  0.8834

  	
   

  	
  0.8703

  	
   

  
	
  Q4

  	
   

  	
  0.8346

  	
   

  	
  0.8179

  	
   

  
	
  Q5

  	
   

  	
  0.9958

  	
   

  	
  1.0103

  	
   

  
	
  Q6

  	
   

  	
  0.9016

  	
   

  	
  0.9921

  	
   

  
	
  Q7

  	
   

  	
  0.8346

  	
   

  	
  0.8179

  	
   

  
	
  Q8

  	
   

  	
  0.9350

  	
   

  	
  0.9747

  	
   

  
	
  QT

  	
   

  	
  0.9867

  	
   

  	
  1.0057

  	
   

  
	
  QU

  	
   

  	
  0.8977

  	
   

  	
  0.9898

  	
   

  
	
  QV

  	
   

  	
  0.9001

  	
   

  	
  0.9297

  	
   

  
	
  QW

  	
   

  	
  0.9001

  	
   

  	
  0.9297

  	
   

  
	
  QX

  	
   

  	
  0.9476

  	
   

  	
  0.9927

  	
   

  
	
  QY

  	
   

  	
  0.9960

  	
   

  	
  1.0086

  	
   

  
	
  QZ

  	
   

  	
  0.9960

  	
   

  	
  1.0086

  	
   

  
	
  V1

  	
   

  	
  0.9926

  	
   

  	
  0.9833

  	
   

  
	
  V2

  	
   

  	
  0.9291

  	
   

  	
  0.9335

  	
   

  
	
  V3

  	
   

  	
  0.8135

  	
   

  	
  0.8226

  	
   

  






 




	
  Individual HMO

  	
   

  
	
  Plan

  	
   

  	
  Prof

  Factor

  	
   

  	
  Inst

  Factor

  	
   

  
	
  Shasta 5

  	
   

  	
  0.9656

  	
   

  	
  0.8895

  	
   

  
	
  Shasta 7

  	
   

  	
  0.9412

  	
   

  	
  0.8810

  	
   

  
	
  HMO Advantage 10

  	
   

  	
  0.8901

  	
   

  	
  0.8872

  	
   

  
	
  Shasta 15

  	
   

  	
  0.8399

  	
   

  	
  0.8644

  	
   

  
	
  Shasta Classic

  	
   

  	
  0.7842

  	
   

  	
  0.7665

  	
   

  






 




	
  Medicare Supplement HMO

  	
   

  
	
  Plan

  	
   

  	
  Prof

  Factor

  	
   

  
	
  Medicare
  Conversion Plan J

  	
   

  	
  1.2018

  	
   

  
	
  Medicare COB $0
  Copay

  	
   

  	
  1.1169

  	
   

  
	
  Medicare COB $5
  and up

  Copay

  	
   

  	
  0.6326

  	
   

  






 




	
  Medicare Supplement POS

  	
   

  
	
  Plan

  	
   

  	
  Prof

  Factor

  	
   

  
	
  POS Medicare COB
  $0 Copay

  	
   

  	
  1.1169

  	
   

  
	
  POS Medicare COB
  $5 and up

  Copay

  	
   

  	
  0.6326

  	
   

  






 


50

















 


A.6
Benefit Plan Factors for PPG Standard POS Capitation Effective January 1, 1998


 


	
  Standard POS

  	
   

  
	
  Plan

  	
   

  	
  Prof

  Factor

  	
   

  
	
  AA

  	
   

  	
  0.9217

  	
   

  
	
  AD

  	
   

  	
  0.9217

  	
   

  
	
  AG

  	
   

  	
  0.8723

  	
   

  
	
  AH

  	
   

  	
  0.9217

  	
   

  
	
  AJ

  	
   

  	
  0.8723

  	
   

  
	
  AW

  	
   

  	
  0.9217

  	
   

  
	
  BA

  	
   

  	
  0.9357

  	
   

  
	
  BC

  	
   

  	
  0.9644

  	
   

  
	
  BD

  	
   

  	
  0.9334

  	
   

  
	
  BE

  	
   

  	
  0.9459

  	
   

  
	
  BF

  	
   

  	
  0.8723

  	
   

  
	
  BG

  	
   

  	
  0.8965

  	
   

  
	
  BH

  	
   

  	
  0.9334

  	
   

  
	
  BI

  	
   

  	
  0.9607

  	
   

  
	
  BJ

  	
   

  	
  0.9607

  	
   

  
	
  BK

  	
   

  	
  1.0184

  	
   

  
	
  BL

  	
   

  	
  0.9942

  	
   

  
	
  BM

  	
   

  	
  1.0036

  	
   

  
	
  BN

  	
   

  	
  0.8965

  	
   

  
	
  BO

  	
   

  	
  0.9629

  	
   

  
	
  BP

  	
   

  	
  0.8965

  	
   

  
	
  BQ

  	
   

  	
  0.9820

  	
   

  
	
  BR

  	
   

  	
  0.9820

  	
   

  
	
  BS

  	
   

  	
  0.9348

  	
   

  
	
  BT

  	
   

  	
  0.8854

  	
   

  
	
  BU

  	
   

  	
  0.9607

  	
   

  
	
  BV

  	
   

  	
  0.9030

  	
   

  
	
  BW

  	
   

  	
  0.9655

  	
   

  
	
  BX

  	
   

  	
  0.9220

  	
   

  
	
  BY

  	
   

  	
  0.9612

  	
   

  
	
  BZ

  	
   

  	
  0.9553

  	
   

  
	
  CA

  	
   

  	
  1.0004

  	
   

  
	
  CB

  	
   

  	
  1.0121

  	
   

  
	
  CC

  	
   

  	
  0.9763

  	
   

  
	
  CD

  	
   

  	
  0.9879

  	
   

  
	
  CE

  	
   

  	
  0.9425

  	
   

  
	
  CF

  	
   

  	
  0.9541

  	
   

  
	
  CG

  	
   

  	
  0.9183

  	
   

  
	
  CH

  	
   

  	
  0.9300

  	
   

  
	
  CI

  	
   

  	
  0.8916

  	
   

  
	
  CJ

  	
   

  	
  0.9033

  	
   

  
	
  CK

  	
   

  	
  0.8675

  	
   

  
	
  CL

  	
   

  	
  0.8791

  	
   

  
	
  CM

  	
   

  	
  0.8499

  	
   

  
	
  CN

  	
   

  	
  0.8615

  	
   

  
	
  CO

  	
   

  	
  0.8257

  	
   

  
	
  CP

  	
   

  	
  0.8374

  	
   

  
	
  DA

  	
   

  	
  0.9459

  	
   

  
	
  DB

  	
   

  	
  0.9607

  	
   

  
	
  DC

  	
   

  	
  0.9459

  	
   

  
	
  DD

  	
   

  	
  0.8965

  	
   

  
	
  DE

  	
   

  	
  0.9490

  	
   

  
	
  DF

  	
   

  	
  0.9490

  	
   

  
	
  DG

  	
   

  	
  0.8996

  	
   

  
	
  DH

  	
   

  	
  0.9459

  	
   

  
	
  DI

  	
   

  	
  0.9459

  	
   

  
	
  DJ

  	
   

  	
  0.8965

  	
   

  
	
  DK

  	
   

  	
  0.8965

  	
   

  
	
  DL

  	
   

  	
  0.9490

  	
   

  
	
  DM

  	
   

  	
  0.8965

  	
   

  
	
  DN

  	
   

  	
  0.8541

  	
   

  
	
  DO

  	
   

  	
  0.9658

  	
   

  
	
  DP

  	
   

  	
  0.9897

  	
   

  
	
  DQ

  	
   

  	
  0.9729

  	
   

  
	
  DR

  	
   

  	
  0.9334

  	
   

  
	
  DS

  	
   

  	
  0.9607

  	
   

  
	
  DT

  	
   

  	
  0.9081

  	
   

  
	
  DU

  	
   

  	
  0.8840

  	
   

  
	
  DV

  	
   

  	
  0.9851

  	
   

  
	
  DW

  	
   

  	
  0.9607

  	
   

  
	
  DX

  	
   

  	
  0.9220

  	
   

  
	
  DY

  	
   

  	
  0.9459

  	
   

  
	
  DZ

  	
   

  	
  1.0024

  	
   

  
	
  FN

  	
   

  	
  0.9928

  	
   

  
	
  FO

  	
   

  	
  0.9928

  	
   

  
	
  FP

  	
   

  	
  0.9436

  	
   

  
	
  FQ

  	
   

  	
  0.9436

  	
   

  
	
  FR

  	
   

  	
  0.9902

  	
   

  
	
  FS

  	
   

  	
  0.9851

  	
   

  
	
  FT

  	
   

  	
  0.9843

  	
   

  
	
  FU

  	
   

  	
  0.9939

  	
   

  
	
  FV

  	
   

  	
  0.9825

  	
   

  
	
  FW

  	
   

  	
  0.9885

  	
   

  
	
  FX

  	
   

  	
  0.9806

  	
   

  
	
  FY

  	
   

  	
  0.9516

  	
   

  
	
  FZ

  	
   

  	
  0.9567

  	
   

  
	
  GA

  	
   

  	
  0.9334

  	
   

  
	
  GB

  	
   

  	
  0.8965

  	
   

  
	
  GK

  	
   

  	
  0.9459

  	
   

  
	
  KA

  	
   

  	
  0.9939

  	
   

  
	
  KB

  	
   

  	
  0.9610

  	
   

  
	
  KC

  	
   

  	
  1.0027

  	
   

  
	
  LA

  	
   

  	
  0.9487

  	
   

  
	
  LB

  	
   

  	
  0.9459

  	
   

  
	
  LC

  	
   

  	
  0.9459

  	
   

  
	
  LD

  	
   

  	
  0.9487

  	
   

  
	
  LE

  	
   

  	
  0.9487

  	
   

  
	
  LF

  	
   

  	
  0.9487

  	
   

  
	
  LG

  	
   

  	
  0.8993

  	
   

  
	
  LH

  	
   

  	
  0.9459

  	
   

  
	
  LI

  	
   

  	
  0.9487

  	
   

  
	
  LJ

  	
   

  	
  0.8993

  	
   

  
	
  LK

  	
   

  	
  0.8723

  	
   

  
	
  LL

  	
   

  	
  0.9459

  	
   

  
	
  LM

  	
   

  	
  0.9217

  	
   

  
	
  LN

  	
   

  	
  0.9487

  	
   

  
	
  LP

  	
   

  	
  0.9459

  	
   

  
	
  LQ

  	
   

  	
  0.8993

  	
   

  
	
  LR

  	
   

  	
  0.9487

  	
   

  
	
  LS

  	
   

  	
  0.8965

  	
   

  
	
  LT

  	
   

  	
  0.8572

  	
   

  
	
  LU

  	
   

  	
  0.8965

  	
   

  
	
  LV

  	
   

  	
  0.9487

  	
   

  
	
  LW

  	
   

  	
  0.9487

  	
   

  
	
  LX

  	
   

  	
  0.8965

  	
   

  
	
  LY

  	
   

  	
  0.9575

  	
   

  
	
  LZ

  	
   

  	
  0.8541

  	
   

  
	
  NP

  	
   

  	
  0.9897

  	
   

  
	
  OA

  	
   

  	
  0.9234

  	
   

  
	
  OB

  	
   

  	
  0.9217

  	
   

  
	
  OC

  	
   

  	
  0.9217

  	
   

  
	
  OD

  	
   

  	
  0.9092

  	
   

  
	
  OE

  	
   

  	
  0.9036

  	
   

  
	
  OF

  	
   

  	
  0.9490

  	
   

  
	
  OG

  	
   

  	
  0.9655

  	
   

  
	
  OK

  	
   

  	
  0.8723

  	
   

  
	
  OL

  	
   

  	
  0.9217

  	
   

  
	
  OM

  	
   

  	
  0.9217

  	
   

  
	
  ON

  	
   

  	
  0.9217

  	
   

  
	
  OO

  	
   

  	
  0.9217

  	
   

  
	
  OP

  	
   

  	
  0.9217

  	
   

  
	
  OQ

  	
   

  	
  0.9217

  	
   

  
	
  OR

  	
   

  	
  0.9578

  	
   

  
	
  OS

  	
   

  	
  0.9217

  	
   

  
	
  OT

  	
   

  	
  1.0178

  	
   

  
	
  OU

  	
   

  	
  0.9575

  	
   

  
	
  OV

  	
   

  	
  0.9107

  	
   

  
	
  OW

  	
   

  	
  0.9217

  	
   

  
	
  OX

  	
   

  	
  0.9217

  	
   

  
	
  OY

  	
   

  	
  0.9217

  	
   

  
	
  OZ

  	
   

  	
  0.9217

  	
   

  
	
  PA

  	
   

  	
  0.9217

  	
   

  
	
  PB

  	
   

  	
  0.9067

  	
   

  
	
  PC

  	
   

  	
  0.9232

  	
   

  
	
  PD

  	
   

  	
  0.8737

  	
   

  
	
  PE

  	
   

  	
  0.9217

  	
   

  
	
  PF

  	
   

  	
  0.9914

  	
   

  
	
  PG

  	
   

  	
  1.0522

  	
   

  
	
  PH

  	
   

  	
  0.9612

  	
   

  
	
  PI

  	
   

  	
  0.9655

  	
   

  
	
  PJ

  	
   

  	
  0.9487

  	
   

  
	
  PK

  	
   

  	
  0.9459

  	
   

  
	
  PL

  	
   

  	
  0.9183

  	
   

  
	
  PM

  	
   

  	
  0.9334

  	
   

  
	
  PN

  	
   

  	
  0.9217

  	
   

  
	
  PO

  	
   

  	
  0.9334

  	
   

  
	
  PP

  	
   

  	
  1.0701

  	
   

  
	
  PQ

  	
   

  	
  0.9217

  	
   

  
	
  PR

  	
   

  	
  0.9334

  	
   

  
	
  PS

  	
   

  	
  1.0013

  	
   

  
	
  PT

  	
   

  	
  0.9183

  	
   

  
	
  PU

  	
   

  	
  0.9797

  	
   

  
	
  PV

  	
   

  	
  0.8979

  	
   

  
	
  PW

  	
   

  	
  1.0269

  	
   

  
	
  PX

  	
   

  	
  0.9490

  	
   

  
	
  PY

  	
   

  	
  0.9590

  	
   

  
	
  PZ

  	
   

  	
  0.9095

  	
   

  
	
  XA

  	
   

  	
  0.9217

  	
   

  
	
  XB

  	
   

  	
  0.8371

  	
   

  
	
  XC

  	
   

  	
  0.9402

  	
   

  
	
  XD

  	
   

  	
  0.9459

  	
   

  
	
  XE

  	
   

  	
  0.9573

  	
   

  
	
  XF

  	
   

  	
  0.9246

  	
   

  
	
  XG

  	
   

  	
  1.1008

  	
   

  
	
  XI

  	
   

  	
  1.1008

  	
   

  
	
  XJ

  	
   

  	
  0.8743

  	
   

  
	
  XK

  	
   

  	
  0.9698

  	
   

  
	
  XL

  	
   

  	
  0.9962

  	
   

  
	
  XM

  	
   

  	
  0.9575

  	
   

  
	
  XN

  	
   

  	
  0.9220

  	
   

  
	
  XO

  	
   

  	
  0.8683

  	
   

  
	
  XP

  	
   

  	
  0.9740

  	
   

  
	
  XQ

  	
   

  	
  0.8746

  	
   

  
	
  XR

  	
   

  	
  0.8464

  	
   

  
	
  XS

  	
   

  	
  0.9408

  	
   

  
	
  XT

  	
   

  	
  0.9220

  	
   

  
	
  XU

  	
   

  	
  0.9220

  	
   

  
	
  XV

  	
   

  	
  0.9220

  	
   

  
	
  XW

  	
   

  	
  0.9220

  	
   

  
	
  XY

  	
   

  	
  0.9743

  	
   

  



 


51

















 


A.6 Benefit Plan Factors for PPG
Small Group POS Capitation Effective January 1, 1998


 




	
  Small
  Group

  POS

  	
   

  
	
  Plan

  	
   

  	
  Prof

  Factor

  	
   

  
	
  QA

  	
   

  	
  0.9857

  	
   

  
	
  QB

  	
   

  	
  0.9285

  	
   

  
	
  QC

  	
   

  	
  0.8447

  	
   

  






 


52

















 


A.7 Benefit Plan Factors for PPG
Standard POS Capitation and Standard POS Shared Risk Budgets Effective July 1,
1998


 


	
  Standard POS

  	
   

  
	
  Plan

  	
   

  	
  Prof

  Factor

  	
   

  	
  Inst

  Factor

  	
   

  
	
  AA

  	
   

  	
  0.9215

  	
   

  	
  0.9300

  	
   

  
	
  AD

  	
   

  	
  0.9215

  	
   

  	
  0.8996

  	
   

  
	
  AG

  	
   

  	
  0.8714

  	
   

  	
  0.9255

  	
   

  
	
  AH

  	
   

  	
  0.9215

  	
   

  	
  0.9325

  	
   

  
	
  AJ

  	
   

  	
  0.8714

  	
   

  	
  0.9242

  	
   

  
	
  AW

  	
   

  	
  0.9215

  	
   

  	
  0.9325

  	
   

  
	
  BA

  	
   

  	
  0.9355

  	
   

  	
  0.9247

  	
   

  
	
  BC

  	
   

  	
  0.9644

  	
   

  	
  0.9489

  	
   

  
	
  BD

  	
   

  	
  0.9330

  	
   

  	
  0.9489

  	
   

  
	
  BE

  	
   

  	
  0.9457

  	
   

  	
  0.9489

  	
   

  
	
  BF

  	
   

  	
  0.8714

  	
   

  	
  0.9475

  	
   

  
	
  BG

  	
   

  	
  0.8956

  	
   

  	
  0.9475

  	
   

  
	
  BH

  	
   

  	
  0.9330

  	
   

  	
  0.9486

  	
   

  
	
  BI

  	
   

  	
  0.9607

  	
   

  	
  0.9489

  	
   

  
	
  BJ

  	
   

  	
  0.9607

  	
   

  	
  0.9483

  	
   

  
	
  BK

  	
   

  	
  1.0192

  	
   

  	
  0.9504

  	
   

  
	
  BL

  	
   

  	
  0.9947

  	
   

  	
  0.9515

  	
   

  
	
  BM

  	
   

  	
  1.0039

  	
   

  	
  0.9289

  	
   

  
	
  BN

  	
   

  	
  0.8956

  	
   

  	
  0.9489

  	
   

  
	
  BO

  	
   

  	
  0.9662

  	
   

  	
  0.9478

  	
   

  
	
  BP

  	
   

  	
  0.8956

  	
   

  	
  0.9499

  	
   

  
	
  BQ

  	
   

  	
  0.9820

  	
   

  	
  0.9501

  	
   

  
	
  BR

  	
   

  	
  0.9821

  	
   

  	
  0.9501

  	
   

  
	
  BS

  	
   

  	
  0.9345

  	
   

  	
  0.8420

  	
   

  
	
  BT

  	
   

  	
  0.8843

  	
   

  	
  0.8420

  	
   

  
	
  BU

  	
   

  	
  0.9607

  	
   

  	
  0.9266

  	
   

  
	
  BV

  	
   

  	
  0.9025

  	
   

  	
  0.9286

  	
   

  
	
  BW

  	
   

  	
  0.9653

  	
   

  	
  0.9138

  	
   

  
	
  BX

  	
   

  	
  0.9218

  	
   

  	
  0.9014

  	
   

  
	
  BY

  	
   

  	
  0.9610

  	
   

  	
  0.8256

  	
   

  
	
  BZ

  	
   

  	
  0.9552

  	
   

  	
  0.9468

  	
   

  
	
  CA

  	
   

  	
  1.0007

  	
   

  	
  0.9448

  	
   

  
	
  CB

  	
   

  	
  1.0126

  	
   

  	
  0.9448

  	
   

  
	
  CC

  	
   

  	
  0.9765

  	
   

  	
  0.9448

  	
   

  
	
  CD

  	
   

  	
  0.9881

  	
   

  	
  0.9448

  	
   

  
	
  CE

  	
   

  	
  0.9423

  	
   

  	
  0.8441

  	
   

  
	
  CF

  	
   

  	
  0.9538

  	
   

  	
  0.8441

  	
   

  
	
  CG

  	
   

  	
  0.9178

  	
   

  	
  0.8441

  	
   

  
	
  CH

  	
   

  	
  0.9296

  	
   

  	
  0.8441

  	
   

  
	
  CI

  	
   

  	
  0.8907

  	
   

  	
  0.7791

  	
   

  
	
  CJ

  	
   

  	
  0.9022

  	
   

  	
  0.7791

  	
   

  
	
  CK

  	
   

  	
  0.8662

  	
   

  	
  0.7791

  	
   

  
	
  CL

  	
   

  	
  0.8780

  	
   

  	
  0.7791

  	
   

  
	
  CM

  	
   

  	
  0.8480

  	
   

  	
  0.7398

  	
   

  
	
  CN

  	
   

  	
  0.8598

  	
   

  	
  0.7398

  	
   

  
	
  CO

  	
   

  	
  0.8238

  	
   

  	
  0.7398

  	
   

  
	
  CP

  	
   

  	
  0.8353

  	
   

  	
  0.7398

  	
   

  
	
  DA

  	
   

  	
  0.9457

  	
   

  	
  0.9325

  	
   

  
	
  DB

  	
   

  	
  0.9607

  	
   

  	
  0.9489

  	
   

  
	
  DC

  	
   

  	
  0.9458

  	
   

  	
  0.9489

  	
   

  
	
  DD

  	
   

  	
  0.8961

  	
   

  	
  0.9475

  	
   

  
	
  DE

  	
   

  	
  0.9489

  	
   

  	
  0.9300

  	
   

  
	
  DF

  	
   

  	
  0.9489

  	
   

  	
  0.8996

  	
   

  
	
  DG

  	
   

  	
  0.8992

  	
   

  	
  0.9255

  	
   

  
	
  DH

  	
   

  	
  0.9458

  	
   

  	
  0.9325

  	
   

  
	
  DI

  	
   

  	
  0.9458

  	
   

  	
  0.9300

  	
   

  
	
  DJ

  	
   

  	
  0.8961

  	
   

  	
  0.9255

  	
   

  
	
  DK

  	
   

  	
  0.8961

  	
   

  	
  0.9274

  	
   

  
	
  DL

  	
   

  	
  0.9489

  	
   

  	
  0.9293

  	
   

  
	
  DM

  	
   

  	
  0.8961

  	
   

  	
  0.7851

  	
   

  
	
  DN

  	
   

  	
  0.8535

  	
   

  	
  0.7138

  	
   

  
	
  DO

  	
   

  	
  0.9658

  	
   

  	
  0.8941

  	
   

  
	
  DP

  	
   

  	
  0.9895

  	
   

  	
  0.9405

  	
   

  
	
  DQ

  	
   

  	
  0.9730

  	
   

  	
  0.9492

  	
   

  
	
  DR

  	
   

  	
  0.9332

  	
   

  	
  0.8680

  	
   

  
	
  DS

  	
   

  	
  0.9607

  	
   

  	
  0.9520

  	
   

  
	
  DT

  	
   

  	
  0.9078

  	
   

  	
  0.9481

  	
   

  
	
  DU

  	
   

  	
  0.8835

  	
   

  	
  0.9481

  	
   

  
	
  DV

  	
   

  	
  0.9850

  	
   

  	
  0.9577

  	
   

  
	
  DW

  	
   

  	
  0.9607

  	
   

  	
  0.9489

  	
   

  
	
  DX

  	
   

  	
  0.9218

  	
   

  	
  0.9300

  	
   

  
	
  DY

  	
   

  	
  0.9458

  	
   

  	
  0.9300

  	
   

  
	
  DZ

  	
   

  	
  1.0038

  	
   

  	
  0.9372

  	
   

  
	
  FN

  	
   

  	
  0.9961

  	
   

  	
  0.9247

  	
   

  
	
  FO

  	
   

  	
  0.9961

  	
   

  	
  0.9496

  	
   

  
	
  FP

  	
   

  	
  0.9447

  	
   

  	
  0.8485

  	
   

  
	
  FQ

  	
   

  	
  0.9447

  	
   

  	
  0.8471

  	
   

  
	
  FR

  	
   

  	
  0.9915

  	
   

  	
  0.9247

  	
   

  
	
  FS

  	
   

  	
  0.9864

  	
   

  	
  0.9254

  	
   

  
	
  FT

  	
   

  	
  0.9855

  	
   

  	
  0.9454

  	
   

  
	
  FU

  	
   

  	
  0.9952

  	
   

  	
  0.9499

  	
   

  
	
  FV

  	
   

  	
  0.9858

  	
   

  	
  0.9119

  	
   

  
	
  FW

  	
   

  	
  0.9898

  	
   

  	
  0.9416

  	
   

  
	
  FX

  	
   

  	
  0.9784

  	
   

  	
  0.9287

  	
   

  
	
  FY

  	
   

  	
  0.9527

  	
   

  	
  0.8970

  	
   

  
	
  FZ

  	
   

  	
  0.9578

  	
   

  	
  0.9429

  	
   

  
	
  GA

  	
   

  	
  0.9332

  	
   

  	
  0.9309

  	
   

  
	
  GB

  	
   

  	
  0.8961

  	
   

  	
  0.9499

  	
   

  
	
  GK

  	
   

  	
  0.9457

  	
   

  	
  0.9483

  	
   

  
	
  KA

  	
   

  	
  0.9952

  	
   

  	
  0.9425

  	
   

  
	
  KB

  	
   

  	
  0.9609

  	
   

  	
  0.9247

  	
   

  
	
  KC

  	
   

  	
  1.0041

  	
   

  	
  0.8643

  	
   

  
	
  LA

  	
   

  	
  0.9489

  	
   

  	
  0.9300

  	
   

  
	
  LB

  	
   

  	
  0.9457

  	
   

  	
  0.9485

  	
   

  
	
  LC

  	
   

  	
  0.9457

  	
   

  	
  0.9300

  	
   

  
	
  LD

  	
   

  	
  0.9489

  	
   

  	
  0.8996

  	
   

  
	
  LE

  	
   

  	
  0.9489

  	
   

  	
  0.9305

  	
   

  
	
  LF

  	
   

  	
  0.9489

  	
   

  	
  0.9331

  	
   

  
	
  LG

  	
   

  	
  0.8987

  	
   

  	
  0.9255

  	
   

  
	
  LH

  	
   

  	
  0.9457

  	
   

  	
  0.9325

  	
   

  
	
  LI

  	
   

  	
  0.9489

  	
   

  	
  0.9068

  	
   

  
	
  LJ

  	
   

  	
  0.8987

  	
   

  	
  0.9242

  	
   

  
	
  LK

  	
   

  	
  0.8714

  	
   

  	
  0.8677

  	
   

  
	
  LL

  	
   

  	
  0.9457

  	
   

  	
  0.9300

  	
   

  
	
  LM

  	
   

  	
  0.9215

  	
   

  	
  0.9378

  	
   

  
	
  LN

  	
   

  	
  0.9483

  	
   

  	
  0.9397

  	
   

  
	
  LP

  	
   

  	
  0.9457

  	
   

  	
  0.8996

  	
   

  
	
  LQ

  	
   

  	
  0.8987

  	
   

  	
  0.9291

  	
   

  
	
  LR

  	
   

  	
  0.9489

  	
   

  	
  0.9356

  	
   

  
	
  LS

  	
   

  	
  0.8956

  	
   

  	
  0.9255

  	
   

  
	
  LT

  	
   

  	
  0.8558

  	
   

  	
  0.7138

  	
   

  
	
  LU

  	
   

  	
  0.8956

  	
   

  	
  0.9242

  	
   

  
	
  LV

  	
   

  	
  0.9486

  	
   

  	
  0.9325

  	
   

  
	
  LW

  	
   

  	
  0.9489

  	
   

  	
  0.9325

  	
   

  
	
  LX

  	
   

  	
  0.8956

  	
   

  	
  0.7851

  	
   

  
	
  LY

  	
   

  	
  0.9575

  	
   

  	
  0.9485

  	
   

  
	
  LZ

  	
   

  	
  0.8526

  	
   

  	
  0.7138

  	
   

  
	
  NP

  	
   

  	
  0.9895

  	
   

  	
  0.9405

  	
   

  
	
  OA

  	
   

  	
  0.9232

  	
   

  	
  0.9276

  	
   

  
	
  OB

  	
   

  	
  0.9215

  	
   

  	
  0.9276

  	
   

  
	
  OC

  	
   

  	
  0.9215

  	
   

  	
  0.8420

  	
   

  
	
  OD

  	
   

  	
  0.9085

  	
   

  	
  0.8481

  	
   

  
	
  OE

  	
   

  	
  0.9028

  	
   

  	
  0.8481

  	
   

  
	
  OF

  	
   

  	
  0.9492

  	
   

  	
  0.9065

  	
   

  
	
  OG

  	
   

  	
  0.9653

  	
   

  	
  0.9138

  	
   

  
	
  OK

  	
   

  	
  0.8714

  	
   

  	
  0.8420

  	
   

  
	
  OL

  	
   

  	
  0.9215

  	
   

  	
  0.9500

  	
   

  
	
  OM

  	
   

  	
  0.9215

  	
   

  	
  0.9468

  	
   

  
	
  ON

  	
   

  	
  0.9215

  	
   

  	
  0.9276

  	
   

  
	
  OO

  	
   

  	
  0.9215

  	
   

  	
  0.9303

  	
   

  
	
  OP

  	
   

  	
  0.9215

  	
   

  	
  0.9276

  	
   

  
	
  OQ

  	
   

  	
  0.9215

  	
   

  	
  0.9300

  	
   

  
	
  OR

  	
   

  	
  0.9575

  	
   

  	
  0.8256

  	
   

  
	
  OS

  	
   

  	
  0.9215

  	
   

  	
  0.9533

  	
   

  
	
  OT

  	
   

  	
  1.0238

  	
   

  	
  0.9405

  	
   

  
	
  OU

  	
   

  	
  0.9572

  	
   

  	
  0.9484

  	
   

  
	
  OV

  	
   

  	
  0.9100

  	
   

  	
  0.9286

  	
   

  
	
  OW

  	
   

  	
  0.9215

  	
   

  	
  0.9309

  	
   

  
	
  OX

  	
   

  	
  0.9215

  	
   

  	
  0.8654

  	
   

  
	
  OY

  	
   

  	
  0.9215

  	
   

  	
  0.9276

  	
   

  
	
  OZ

  	
   

  	
  0.9215

  	
   

  	
  0.9313

  	
   

  
	
  PA

  	
   

  	
  0.9215

  	
   

  	
  0.9323

  	
   

  
	
  PB

  	
   

  	
  0.9062

  	
   

  	
  0.8654

  	
   

  
	
  PC

  	
   

  	
  0.9229

  	
   

  	
  0.8420

  	
   

  
	
  PD

  	
   

  	
  0.8728

  	
   

  	
  0.8420

  	
   

  
	
  PE

  	
   

  	
  0.9215

  	
   

  	
  0.9465

  	
   

  
	
  PF

  	
   

  	
  0.9918

  	
   

  	
  0.9312

  	
   

  
	
  PG

  	
   

  	
  1.0584

  	
   

  	
  0.9405

  	
   

  
	
  PH

  	
   

  	
  0.9610

  	
   

  	
  0.8256

  	
   

  
	
  PI

  	
   

  	
  0.9653

  	
   

  	
  0.9099

  	
   

  
	
  PJ

  	
   

  	
  0.9489

  	
   

  	
  0.9473

  	
   

  
	
  PK

  	
   

  	
  0.9457

  	
   

  	
  0.9325

  	
   

  
	
  PL

  	
   

  	
  0.9178

  	
   

  	
  0.8680

  	
   

  
	
  PM

  	
   

  	
  0.9330

  	
   

  	
  0.9276

  	
   

  
	
  PN

  	
   

  	
  0.9215

  	
   

  	
  0.9498

  	
   

  
	
  PO

  	
   

  	
  0.9330

  	
   

  	
  0.9303

  	
   

  
	
  PP

  	
   

  	
  1.0711

  	
   

  	
  0.9405

  	
   

  
	
  PQ

  	
   

  	
  0.9215

  	
   

  	
  0.8554

  	
   

  
	
  PR

  	
   

  	
  0.9330

  	
   

  	
  0.9282

  	
   

  
	
  PS

  	
   

  	
  1.0016

  	
   

  	
  0.9014

  	
   

  
	
  PT

  	
   

  	
  0.9178

  	
   

  	
  0.8680

  	
   

  
	
  PU

  	
   

  	
  0.9800

  	
   

  	
  0.9002

  	
   

  
	
  PV

  	
   

  	
  0.8970

  	
   

  	
  0.8420

  	
   

  
	
  PW

  	
   

  	
  1.0275

  	
   

  	
  0.9511

  	
   

  
	
  PX

  	
   

  	
  0.9492

  	
   

  	
  0.9287

  	
   

  
	
  PY

  	
   

  	
  0.9590

  	
   

  	
  0.8420

  	
   

  
	
  PZ

  	
   

  	
  0.9088

  	
   

  	
  0.8420

  	
   

  
	
  XA

  	
   

  	
  0.9215

  	
   

  	
  0.8275

  	
   

  
	
  XB

  	
   

  	
  0.8405

  	
   

  	
  0.9195

  	
   

  
	
  XC

  	
   

  	
  0.9399

  	
   

  	
  0.9022

  	
   

  
	
  XD

  	
   

  	
  0.9457

  	
   

  	
  0.8328

  	
   

  
	
  XE

  	
   

  	
  0.9569

  	
   

  	
  0.7891

  	
   

  
	
  XF

  	
   

  	
  0.9244

  	
   

  	
  0.8275

  	
   

  
	
  XG

  	
   

  	
  1.1022

  	
   

  	
  0.9494

  	
   

  
	
  XI

  	
   

  	
  1.1022

  	
   

  	
  0.9298

  	
   

  
	
  XJ

  	
   

  	
  0.8734

  	
   

  	
  0.8275

  	
   

  
	
  XK

  	
   

  	
  0.9699

  	
   

  	
  0.8426

  	
   

  
	
  XL

  	
   

  	
  1.0039

  	
   

  	
  0.8972

  	
   

  
	
  XM

  	
   

  	
  0.9572

  	
   

  	
  0.9022

  	
   

  
	
  XN

  	
   

  	
  0.9218

  	
   

  	
  0.9183

  	
   

  
	
  XO

  	
   

  	
  0.8722

  	
   

  	
  0.9195

  	
   

  
	
  XP

  	
   

  	
  0.9742

  	
   

  	
  0.8661

  	
   

  
	
  XQ

  	
   

  	
  0.8741

  	
   

  	
  0.7513

  	
   

  
	
  XR

  	
   

  	
  0.8509

  	
   

  	
  0.9195

  	
   

  
	
  XS

  	
   

  	
  0.9407

  	
   

  	
  0.7837

  	
   

  
	
  XT

  	
   

  	
  0.9218

  	
   

  	
  0.9022

  	
   

  
	
  XU

  	
   

  	
  0.9218

  	
   

  	
  0.8934

  	
   

  
	
  XV

  	
   

  	
  0.9218

  	
   

  	
  0.9113

  	
   

  
	
  XW

  	
   

  	
  0.9218

  	
   

  	
  0.9229

  	
   

  
	
  XY

  	
   

  	
  0.9744

  	
   

  	
  0.8502

  	
   

  



 


53

















 


 


A.7
Benefit Plan Factors for PPG Small Group POS Capitation and Small Group POS
Shared Risk Budgets


Effective
July 1, 1998


 




	
  Small Group POS

  	
   

  
	
  Plan

  	
   

  	
  Prof

  Factor

  	
   

  	
  Inst

  Factor

  	
   

  
	
  QA

  	
   

  	
  0.9862

  	
   

  	
  0.9427

  	
   

  
	
  QB

  	
   

  	
  0.9282

  	
   

  	
  0.8421

  	
   

  
	
  QC

  	
   

  	
  0.8430

  	
   

  	
  0.7381

  	
   

  






 


54

















 


 


A.8
Benefit Plan Factors for PPG Standard POS Capitation and Standard POS Shared
Risk Budgets


Effective
September 1, 1998


 


	
  Standard POS

  	
   

  
	
  Plan

  	
   

  	
  Prof

  Factor

  	
   

  	
  Inst

  Factor

  	
   

  
	
  AA

  	
   

  	
  0.9452

  	
   

  	
  0.9300

  	
   

  
	
  AD

  	
   

  	
  0.9452

  	
   

  	
  0.8996

  	
   

  
	
  AG

  	
   

  	
  0.8981

  	
   

  	
  0.9255

  	
   

  
	
  AH

  	
   

  	
  0.9452

  	
   

  	
  0.9325

  	
   

  
	
  AJ

  	
   

  	
  0.8981

  	
   

  	
  0.9242

  	
   

  
	
  AW

  	
   

  	
  0.9452

  	
   

  	
  0.9325

  	
   

  
	
  BA

  	
   

  	
  0.9480

  	
   

  	
  0.9247

  	
   

  
	
  BC

  	
   

  	
  0.9747

  	
   

  	
  0.9489

  	
   

  
	
  BD

  	
   

  	
  0.9485

  	
   

  	
  0.9489

  	
   

  
	
  BE

  	
   

  	
  0.9566

  	
   

  	
  0.9489

  	
   

  
	
  BF

  	
   

  	
  0.8981

  	
   

  	
  0.9475

  	
   

  
	
  BG

  	
   

  	
  0.9095

  	
   

  	
  0.9475

  	
   

  
	
  BH

  	
   

  	
  0.9485

  	
   

  	
  0.9486

  	
   

  
	
  BI

  	
   

  	
  0.9747

  	
   

  	
  0.9489

  	
   

  
	
  BJ

  	
   

  	
  0.9747

  	
   

  	
  0.9483

  	
   

  
	
  BK

  	
   

  	
  1.0228

  	
   

  	
  0.9504

  	
   

  
	
  BL

  	
   

  	
  0.9966

  	
   

  	
  0.9515

  	
   

  
	
  BM

  	
   

  	
  0.9934

  	
   

  	
  0.9289

  	
   

  
	
  BN

  	
   

  	
  0.9095

  	
   

  	
  0.9489

  	
   

  
	
  BO

  	
   

  	
  0.9792

  	
   

  	
  0.9478

  	
   

  
	
  BP

  	
   

  	
  0.9095

  	
   

  	
  0.9499

  	
   

  
	
  BQ

  	
   

  	
  0.9774

  	
   

  	
  0.9501

  	
   

  
	
  BR

  	
   

  	
  0.9774

  	
   

  	
  0.9501

  	
   

  
	
  BS

  	
   

  	
  0.9485

  	
   

  	
  0.8420

  	
   

  
	
  BT

  	
   

  	
  0.9014

  	
   

  	
  0.8420

  	
   

  
	
  BU

  	
   

  	
  0.9747

  	
   

  	
  0.9266

  	
   

  
	
  BV

  	
   

  	
  0.9271

  	
   

  	
  0.9286

  	
   

  
	
  BW

  	
   

  	
  0.9492

  	
   

  	
  0.9138

  	
   

  
	
  BX

  	
   

  	
  0.9452

  	
   

  	
  0.9014

  	
   

  
	
  BY

  	
   

  	
  0.9501

  	
   

  	
  0.8256

  	
   

  
	
  BZ

  	
   

  	
  0.9590

  	
   

  	
  0.9468

  	
   

  
	
  CA

  	
   

  	
  0.9950

  	
   

  	
  0.9448

  	
   

  
	
  CB

  	
   

  	
  0.9983

  	
   

  	
  0.9448

  	
   

  
	
  CC

  	
   

  	
  0.9837

  	
   

  	
  0.9448

  	
   

  
	
  CD

  	
   

  	
  0.9870

  	
   

  	
  0.9448

  	
   

  
	
  CE

  	
   

  	
  0.9432

  	
   

  	
  0.8441

  	
   

  
	
  CF

  	
   

  	
  0.9465

  	
   

  	
  0.8441

  	
   

  
	
  CG

  	
   

  	
  0.9318

  	
   

  	
  0.8441

  	
   

  
	
  CH

  	
   

  	
  0.9351

  	
   

  	
  0.8441

  	
   

  
	
  CI

  	
   

  	
  0.8924

  	
   

  	
  0.7791

  	
   

  
	
  CJ

  	
   

  	
  0.8957

  	
   

  	
  0.7791

  	
   

  
	
  CK

  	
   

  	
  0.8811

  	
   

  	
  0.7791

  	
   

  
	
  CL

  	
   

  	
  0.8844

  	
   

  	
  0.7791

  	
   

  
	
  CM

  	
   

  	
  0.8440

  	
   

  	
  0.7398

  	
   

  
	
  CN

  	
   

  	
  0.8473

  	
   

  	
  0.7398

  	
   

  
	
  CO

  	
   

  	
  0.8326

  	
   

  	
  0.7398

  	
   

  
	
  CP

  	
   

  	
  0.8359

  	
   

  	
  0.7398

  	
   

  
	
  DA

  	
   

  	
  0.9566

  	
   

  	
  0.9325

  	
   

  
	
  DB

  	
   

  	
  0.9747

  	
   

  	
  0.9489

  	
   

  
	
  DC

  	
   

  	
  0.9566

  	
   

  	
  0.9489

  	
   

  
	
  DD

  	
   

  	
  0.9095

  	
   

  	
  0.9475

  	
   

  
	
  DE

  	
   

  	
  0.9714

  	
   

  	
  0.9300

  	
   

  
	
  DF

  	
   

  	
  0.9714

  	
   

  	
  0.8996

  	
   

  
	
  DG

  	
   

  	
  0.9243

  	
   

  	
  0.9255

  	
   

  
	
  DH

  	
   

  	
  0.9566

  	
   

  	
  0.9325

  	
   

  
	
  DI

  	
   

  	
  0.9566

  	
   

  	
  0.9300

  	
   

  
	
  DJ

  	
   

  	
  0.9095

  	
   

  	
  0.9255

  	
   

  
	
  DK

  	
   

  	
  0.9095

  	
   

  	
  0.9274

  	
   

  
	
  DL

  	
   

  	
  0.9714

  	
   

  	
  0.9293

  	
   

  
	
  DM

  	
   

  	
  0.9095

  	
   

  	
  0.7851

  	
   

  
	
  DN

  	
   

  	
  0.8643

  	
   

  	
  0.7138

  	
   

  
	
  DO

  	
   

  	
  0.9795

  	
   

  	
  0.8941

  	
   

  
	
  DP

  	
   

  	
  0.9777

  	
   

  	
  0.9405

  	
   

  
	
  DQ

  	
   

  	
  0.9892

  	
   

  	
  0.9492

  	
   

  
	
  DR

  	
   

  	
  0.9485

  	
   

  	
  0.8680

  	
   

  
	
  DS

  	
   

  	
  0.9747

  	
   

  	
  0.9520

  	
   

  
	
  DT

  	
   

  	
  0.9128

  	
   

  	
  0.9481

  	
   

  
	
  DU

  	
   

  	
  0.9014

  	
   

  	
  0.9481

  	
   

  
	
  DV

  	
   

  	
  0.9788

  	
   

  	
  0.9577

  	
   

  
	
  DW

  	
   

  	
  0.9747

  	
   

  	
  0.9489

  	
   

  
	
  DX

  	
   

  	
  0.9452

  	
   

  	
  0.9300

  	
   

  
	
  DY

  	
   

  	
  0.9566

  	
   

  	
  0.9300

  	
   

  
	
  DZ

  	
   

  	
  0.9886

  	
   

  	
  0.9372

  	
   

  
	
  FN

  	
   

  	
  0.9832

  	
   

  	
  0.9247

  	
   

  
	
  FO

  	
   

  	
  0.9832

  	
   

  	
  0.9496

  	
   

  
	
  FP

  	
   

  	
  0.9347

  	
   

  	
  0.8485

  	
   

  
	
  FQ

  	
   

  	
  0.9347

  	
   

  	
  0.8471

  	
   

  
	
  FR

  	
   

  	
  0.9808

  	
   

  	
  0.9247

  	
   

  
	
  FS

  	
   

  	
  0.9621

  	
   

  	
  0.9454

  	
   

  
	
  FT

  	
   

  	
  0.9619

  	
   

  	
  0.9454

  	
   

  
	
  FU

  	
   

  	
  0.9743

  	
   

  	
  0.9499

  	
   

  
	
  FV

  	
   

  	
  0.9813

  	
   

  	
  0.9119

  	
   

  
	
  FW

  	
   

  	
  0.9667

  	
   

  	
  0.9416

  	
   

  
	
  FX

  	
   

  	
  0.9565

  	
   

  	
  0.9287

  	
   

  
	
  FY

  	
   

  	
  0.9394

  	
   

  	
  0.8970

  	
   

  
	
  FZ

  	
   

  	
  0.9421

  	
   

  	
  0.9429

  	
   

  
	
  GA

  	
   

  	
  0.9485

  	
   

  	
  0.9309

  	
   

  
	
  GB

  	
   

  	
  0.9095

  	
   

  	
  0.9499

  	
   

  
	
  GK

  	
   

  	
  0.9567

  	
   

  	
  0.9483

  	
   

  
	
  KA

  	
   

  	
  0.9823

  	
   

  	
  0.9425

  	
   

  
	
  KB

  	
   

  	
  0.9730

  	
   

  	
  0.9247

  	
   

  
	
  KC

  	
   

  	
  0.9850

  	
   

  	
  0.8643

  	
   

  
	
  LA

  	
   

  	
  0.9714

  	
   

  	
  0.9300

  	
   

  
	
  LB

  	
   

  	
  0.9566

  	
   

  	
  0.9485

  	
   

  
	
  LC

  	
   

  	
  0.9566

  	
   

  	
  0.9300

  	
   

  
	
  LD

  	
   

  	
  0.9714

  	
   

  	
  0.8996

  	
   

  
	
  LE

  	
   

  	
  0.9714

  	
   

  	
  0.9305

  	
   

  
	
  LF

  	
   

  	
  0.9714

  	
   

  	
  0.9331

  	
   

  
	
  LG

  	
   

  	
  0.9243

  	
   

  	
  0.9255

  	
   

  
	
  LH

  	
   

  	
  0.9566

  	
   

  	
  0.9325

  	
   

  
	
  LI

  	
   

  	
  0.9714

  	
   

  	
  0.9068

  	
   

  
	
  LJ

  	
   

  	
  0.9243

  	
   

  	
  0.9242

  	
   

  
	
  LK

  	
   

  	
  0.8981

  	
   

  	
  0.8677

  	
   

  
	
  LL

  	
   

  	
  0.9566

  	
   

  	
  0.9300

  	
   

  
	
  LM

  	
   

  	
  0.9452

  	
   

  	
  0.9378

  	
   

  
	
  LN

  	
   

  	
  0.9452

  	
   

  	
  0.9397

  	
   

  
	
  LP

  	
   

  	
  0.9566

  	
   

  	
  0.8996

  	
   

  
	
  LQ

  	
   

  	
  0.9243

  	
   

  	
  0.9291

  	
   

  
	
  LR

  	
   

  	
  0.9714

  	
   

  	
  0.9356

  	
   

  
	
  LS

  	
   

  	
  0.9095

  	
   

  	
  0.9255

  	
   

  
	
  LT

  	
   

  	
  0.8658

  	
   

  	
  0.7138

  	
   

  
	
  LU

  	
   

  	
  0.9095

  	
   

  	
  0.9242

  	
   

  
	
  LV

  	
   

  	
  0.9584

  	
   

  	
  0.9325

  	
   

  
	
  LW

  	
   

  	
  0.9714

  	
   

  	
  0.9325

  	
   

  
	
  LX

  	
   

  	
  0.9095

  	
   

  	
  0.7851

  	
   

  
	
  LY

  	
   

  	
  0.9599

  	
   

  	
  0.9485

  	
   

  
	
  LZ

  	
   

  	
  0.8643

  	
   

  	
  0.7138

  	
   

  
	
  NP

  	
   

  	
  0.9777

  	
   

  	
  0.9405

  	
   

  
	
  OA

  	
   

  	
  0.9452

  	
   

  	
  0.9276

  	
   

  
	
  OB

  	
   

  	
  0.9452

  	
   

  	
  0.9276

  	
   

  
	
  OC

  	
   

  	
  0.9452

  	
   

  	
  0.8420

  	
   

  
	
  OD

  	
   

  	
  0.9128

  	
   

  	
  0.8481

  	
   

  
	
  OE

  	
   

  	
  0.9112

  	
   

  	
  0.8481

  	
   

  
	
  OF

  	
   

  	
  0.9714

  	
   

  	
  0.9065

  	
   

  
	
  OG

  	
   

  	
  0.9492

  	
   

  	
  0.9138

  	
   

  
	
  OK

  	
   

  	
  0.8981

  	
   

  	
  0.8420

  	
   

  
	
  OL

  	
   

  	
  0.9452

  	
   

  	
  0.9500

  	
   

  
	
  OM

  	
   

  	
  0.9452

  	
   

  	
  0.9468

  	
   

  
	
  ON

  	
   

  	
  0.9452

  	
   

  	
  0.9276

  	
   

  
	
  OO

  	
   

  	
  0.9452

  	
   

  	
  0.9303

  	
   

  
	
  OP

  	
   

  	
  0.9452

  	
   

  	
  0.9276

  	
   

  
	
  OQ

  	
   

  	
  0.9452

  	
   

  	
  0.9300

  	
   

  
	
  OR

  	
   

  	
  0.9460

  	
   

  	
  0.8256

  	
   

  
	
  OS

  	
   

  	
  0.9452

  	
   

  	
  0.9533

  	
   

  
	
  OT

  	
   

  	
  1.0098

  	
   

  	
  0.9405

  	
   

  
	
  OU

  	
   

  	
  0.9526

  	
   

  	
  0.9484

  	
   

  
	
  OV

  	
   

  	
  0.9124

  	
   

  	
  0.9286

  	
   

  
	
  OW

  	
   

  	
  0.9452

  	
   

  	
  0.9309

  	
   

  
	
  OX

  	
   

  	
  0.9452

  	
   

  	
  0.8654

  	
   

  
	
  OY

  	
   

  	
  0.9452

  	
   

  	
  0.9276

  	
   

  
	
  OZ

  	
   

  	
  0.9452

  	
   

  	
  0.9313

  	
   

  
	
  PA

  	
   

  	
  0.9452

  	
   

  	
  0.9323

  	
   

  
	
  PB

  	
   

  	
  0.9307

  	
   

  	
  0.8654

  	
   

  
	
  PC

  	
   

  	
  0.9452

  	
   

  	
  0.8420

  	
   

  
	
  PD

  	
   

  	
  0.8981

  	
   

  	
  0.8420

  	
   

  
	
  PE

  	
   

  	
  0.9453

  	
   

  	
  0.9465

  	
   

  
	
  PF

  	
   

  	
  0.9960

  	
   

  	
  0.9312

  	
   

  
	
  PG

  	
   

  	
  1.0367

  	
   

  	
  0.9405

  	
   

  
	
  PH

  	
   

  	
  0.9501

  	
   

  	
  0.8256

  	
   

  
	
  PI

  	
   

  	
  0.9492

  	
   

  	
  0.9099

  	
   

  
	
  PJ

  	
   

  	
  0.9714

  	
   

  	
  0.9473

  	
   

  
	
  PK

  	
   

  	
  0.9566

  	
   

  	
  0.9325

  	
   

  
	
  PL

  	
   

  	
  0.9340

  	
   

  	
  0.8680

  	
   

  
	
  PM

  	
   

  	
  0.9485

  	
   

  	
  0.9276

  	
   

  
	
  PN

  	
   

  	
  0.9452

  	
   

  	
  0.9498

  	
   

  
	
  PO

  	
   

  	
  0.9485

  	
   

  	
  0.9303

  	
   

  
	
  PP

  	
   

  	
  1.0313

  	
   

  	
  0.9405

  	
   

  
	
  PQ

  	
   

  	
  0.9452

  	
   

  	
  0.8554

  	
   

  
	
  PR

  	
   

  	
  0.9485

  	
   

  	
  0.9282

  	
   

  
	
  PS

  	
   

  	
  0.9934

  	
   

  	
  0.9014

  	
   

  
	
  PT

  	
   

  	
  0.9340

  	
   

  	
  0.8680

  	
   

  
	
  PU

  	
   

  	
  0.9933

  	
   

  	
  0.9002

  	
   

  
	
  PV

  	
   

  	
  0.9095

  	
   

  	
  0.8420

  	
   

  
	
  PW

  	
   

  	
  1.0270

  	
   

  	
  0.9511

  	
   

  
	
  PX

  	
   

  	
  0.9714

  	
   

  	
  0.9287

  	
   

  
	
  PY

  	
   

  	
  0.9599

  	
   

  	
  0.8420

  	
   

  
	
  PZ

  	
   

  	
  0.9128

  	
   

  	
  0.8420

  	
   

  
	
  XA

  	
   

  	
  0.9452

  	
   

  	
  0.8275

  	
   

  
	
  XB

  	
   

  	
  0.8298

  	
   

  	
  0.9195

  	
   

  
	
  XC

  	
   

  	
  0.9451

  	
   

  	
  0.9022

  	
   

  
	
  XD

  	
   

  	
  0.9566

  	
   

  	
  0.8328

  	
   

  
	
  XE

  	
   

  	
  0.9422

  	
   

  	
  0.7891

  	
   

  
	
  XF

  	
   

  	
  0.9452

  	
   

  	
  0.8275

  	
   

  
	
  XG

  	
   

  	
  1.0793

  	
   

  	
  0.9494

  	
   

  
	
  XI

  	
   

  	
  1.0793

  	
   

  	
  0.9298

  	
   

  
	
  XJ

  	
   

  	
  0.8981

  	
   

  	
  0.8275

  	
   

  
	
  XK

  	
   

  	
  0.9782

  	
   

  	
  0.8426

  	
   

  
	
  XL

  	
   

  	
  0.9942

  	
   

  	
  0.8972

  	
   

  
	
  XM

  	
   

  	
  0.9451

  	
   

  	
  0.9022

  	
   

  
	
  XN

  	
   

  	
  0.9452

  	
   

  	
  0.9183

  	
   

  
	
  XO

  	
   

  	
  0.8564

  	
   

  	
  0.9195

  	
   

  
	
  XP

  	
   

  	
  0.9819

  	
   

  	
  0.8661

  	
   

  
	
  XQ

  	
   

  	
  0.8981

  	
   

  	
  0.7513

  	
   

  
	
  XR

  	
   

  	
  0.8493

  	
   

  	
  0.9195

  	
   

  
	
  XS

  	
   

  	
  0.9681

  	
   

  	
  0.7837

  	
   

  
	
  XT

  	
   

  	
  0.9452

  	
   

  	
  0.9022

  	
   

  
	
  XU

  	
   

  	
  0.9452

  	
   

  	
  0.8934

  	
   

  
	
  XV

  	
   

  	
  0.9452

  	
   

  	
  0.9113

  	
   

  
	
  XW

  	
   

  	
  0.9452

  	
   

  	
  0.9229

  	
   

  
	
  XY

  	
   

  	
  0.9782

  	
   

  	
  0.8502

  	
   

  



 


55

















 


A.8
Benefit Plan Factors for PPG Small Group POS Capitation and Small Group POS
Shared Risk Budgets


Effective
September 1, 1998


 




	
  Small Group POS

  	
   

  
	
  Plan

  	
   

  	
  Prof

  Factor

  	
   

  	
  Inst

  Factor

  	
   

  
	
  QA

  	
   

  	
  0.9877

  	
   

  	
  0.9427

  	
   

  
	
  QB

  	
   

  	
  0.9350

  	
   

  	
  0.8421

  	
   

  
	
  QC

  	
   

  	
  0.8346

  	
   

  	
  0.7381

  	
   

  






 


56

















 


B.            Age/Sex
and Benefit Plan Factors for Pharmacy Budgets:


 


B.1 Age/Sex Factors for Pharmacy Budgets Effective
January 1, 1998


 




	
  Age

  	
   

  	
  Male

  	
   

  	
  Female

  	
   

  
	
  0

  	
   

  	
  0.231

  	
   

  	
  0.231

  	
   

  
	
  1

  	
   

  	
  0.366

  	
   

  	
  0.366

  	
   

  
	
  2 - 4

  	
   

  	
  0.323

  	
   

  	
  0.323

  	
   

  
	
  5 - 9

  	
   

  	
  0.289

  	
   

  	
  0.289

  	
   

  
	
  10 - 14

  	
   

  	
  0.276

  	
   

  	
  0.276

  	
   

  
	
  15 - 19

  	
   

  	
  0.408

  	
   

  	
  0.408

  	
   

  
	
  20 - 24

  	
   

  	
  0.280

  	
   

  	
  0.714

  	
   

  
	
  25 - 29

  	
   

  	
  0.382

  	
   

  	
  0.868

  	
   

  
	
  30 - 34

  	
   

  	
  0.547

  	
   

  	
  0.919

  	
   

  
	
  35 - 39

  	
   

  	
  0.756

  	
   

  	
  1.067

  	
   

  
	
  40 - 44

  	
   

  	
  0.974

  	
   

  	
  1.265

  	
   

  
	
  45 - 49

  	
   

  	
  1.295

  	
   

  	
  1.654

  	
   

  
	
  50 - 54

  	
   

  	
  1.746

  	
   

  	
  2.198

  	
   

  
	
  55 - 59

  	
   

  	
  2.133

  	
   

  	
  2.573

  	
   

  
	
  60 - 64

  	
   

  	
  2.610

  	
   

  	
  3.000

  	
   

  
	
  65 +

  	
   

  	
  3.175

  	
   

  	
  3.467

  	
   

  






 


57

















 


B.2 Benefit Plan Factors for Pharmacy Budgets
Effective January 1, 1998


 


	
  Plan

  	
   

  	
  Factor

  	
   

  
	
  01

  	
   

  	
  1.3376

  	
   

  
	
  02

  	
   

  	
  1.1000

  	
   

  
	
  03

  	
   

  	
  0.6448

  	
   

  
	
  04

  	
   

  	
  1.1000

  	
   

  
	
  05

  	
   

  	
  0.7255

  	
   

  
	
  06

  	
   

  	
  1.1102

  	
   

  
	
  07

  	
   

  	
  0.6448

  	
   

  
	
  08

  	
   

  	
  1.1000

  	
   

  
	
  09

  	
   

  	
  1.1000

  	
   

  
	
  0A

  	
   

  	
  1.7495

  	
   

  
	
  0B

  	
   

  	
  1.6378

  	
   

  
	
  0C

  	
   

  	
  1.7578

  	
   

  
	
  0D

  	
   

  	
  1.6457

  	
   

  
	
  0E

  	
   

  	
  1.7827

  	
   

  
	
  0F

  	
   

  	
  0.5134

  	
   

  
	
  0G

  	
   

  	
  0.9368

  	
   

  
	
  0H

  	
   

  	
  0.7255

  	
   

  
	
  0I

  	
   

  	
  0.8948

  	
   

  
	
  0J

  	
   

  	
  1.7578

  	
   

  
	
  0P

  	
   

  	
  1.1577

  	
   

  
	
  0R

  	
   

  	
  1.1577

  	
   

  
	
  0S

  	
   

  	
  1.0470

  	
   

  
	
  0T

  	
   

  	
  0.6771

  	
   

  
	
  0U

  	
   

  	
  1.1577

  	
   

  
	
  0V

  	
   

  	
  1.1577

  	
   

  
	
  0W

  	
   

  	
  0.7232

  	
   

  
	
  0X

  	
   

  	
  0.9409

  	
   

  
	
  0Y

  	
   

  	
  0.6411

  	
   

  
	
  0Z

  	
   

  	
  1.0945

  	
   

  
	
  10

  	
   

  	
  0.7564

  	
   

  
	
  11

  	
   

  	
  0.5166

  	
   

  
	
  12

  	
   

  	
  0.4105

  	
   

  
	
  13

  	
   

  	
  0.4806

  	
   

  
	
  14

  	
   

  	
  0.5590

  	
   

  
	
  16

  	
   

  	
  1.0821

  	
   

  
	
  17

  	
   

  	
  0.6411

  	
   

  
	
  18

  	
   

  	
  0.7292

  	
   

  
	
  19

  	
   

  	
  1.1000

  	
   

  
	
  1A

  	
   

  	
  1.6037

  	
   

  
	
  1B

  	
   

  	
  1.5013

  	
   

  
	
  1C

  	
   

  	
  1.6115

  	
   

  
	
  1D

  	
   

  	
  1.5087

  	
   

  
	
  1E

  	
   

  	
  1.1102

  	
   

  
	
  1F

  	
   

  	
  1.1102

  	
   

  
	
  1G

  	
   

  	
  0.7412

  	
   

  
	
  1H

  	
   

  	
  0.7412

  	
   

  
	
  1I

  	
   

  	
  1.1102

  	
   

  
	
  1J

  	
   

  	
  0.7564

  	
   

  
	
  1K

  	
   

  	
  1.1102

  	
   

  
	
  1L

  	
   

  	
  0.8989

  	
   

  
	
  1M

  	
   

  	
  0.7564

  	
   

  
	
  1N

  	
   

  	
  0.8625

  	
   

  
	
  1O

  	
   

  	
  0.6845

  	
   

  
	
  1P

  	
   

  	
  0.5991

  	
   

  
	
  1Q

  	
   

  	
  1.1000

  	
   

  
	
  1R

  	
   

  	
  0.9368

  	
   

  
	
  1S

  	
   

  	
  1.0945

  	
   

  
	
  1T

  	
   

  	
  1.1157

  	
   

  
	
  1U

  	
   

  	
  0.9119

  	
   

  
	
  1V

  	
   

  	
  1.1000

  	
   

  
	
  1W

  	
   

  	
  1.1102

  	
   

  
	
  1X

  	
   

  	
  0.8989

  	
   

  
	
  1Y

  	
   

  	
  1.2135

  	
   

  
	
  1Z

  	
   

  	
  1.1000

  	
   

  
	
  20

  	
   

  	
  0.7292

  	
   

  
	
  23

  	
   

  	
  0.9368

  	
   

  
	
  24

  	
   

  	
  1.1157

  	
   

  
	
  26

  	
   

  	
  1.1000

  	
   

  
	
  2A

  	
   

  	
  1.4635

  	
   

  
	
  2B

  	
   

  	
  1.3699

  	
   

  
	
  2C

  	
   

  	
  1.4704

  	
   

  
	
  2D

  	
   

  	
  1.3768

  	
   

  
	
  2E

  	
   

  	
  1.4912

  	
   

  
	
  2F

  	
   

  	
  0.9409

  	
   

  
	
  2G

  	
   

  	
  0.6448

  	
   

  
	
  2H

  	
   

  	
  1.1000

  	
   

  
	
  2I

  	
   

  	
  0.6448

  	
   

  
	
  2J

  	
   

  	
  0.6882

  	
   

  
	
  2L

  	
   

  	
  1.1761

  	
   

  
	
  2M

  	
   

  	
  1.1157

  	
   

  
	
  2N

  	
   

  	
  1.1157

  	
   

  
	
  2O

  	
   

  	
  0.7412

  	
   

  
	
  2P

  	
   

  	
  1.1577

  	
   

  
	
  2Q

  	
   

  	
  1.1102

  	
   

  
	
  2R

  	
   

  	
  1.1102

  	
   

  
	
  2S

  	
   

  	
  0.8989

  	
   

  
	
  2T

  	
   

  	
  0.7292

  	
   

  
	
  2U

  	
   

  	
  0.8989

  	
   

  
	
  2V

  	
   

  	
  0.7269

  	
   

  
	
  2W

  	
   

  	
  0.8989

  	
   

  
	
  2X

  	
   

  	
  0.6448

  	
   

  
	
  2Y

  	
   

  	
  0.7269

  	
   

  
	
  2Z

  	
   

  	
  1.2135

  	
   

  
	
  30

  	
   

  	
  1.1102

  	
   

  
	
  31

  	
   

  	
  1.1102

  	
   

  
	
  32

  	
   

  	
  0.7255

  	
   

  
	
  33

  	
   

  	
  0.7269

  	
   

  
	
  34

  	
   

  	
  1.1102

  	
   

  
	
  35

  	
   

  	
  1.1102

  	
   

  
	
  36

  	
   

  	
  1.1102

  	
   

  
	
  37

  	
   

  	
  1.1102

  	
   

  
	
  38

  	
   

  	
  1.2135

  	
   

  
	
  39

  	
   

  	
  0.8791

  	
   

  
	
  3A

  	
   

  	
  1.3311

  	
   

  
	
  3B

  	
   

  	
  1.2458

  	
   

  
	
  3C

  	
   

  	
  1.3376

  	
   

  
	
  3D

  	
   

  	
  1.2518

  	
   

  
	
  3E

  	
   

  	
  1.3311

  	
   

  
	
  3F

  	
   

  	
  1.3376

  	
   

  
	
  3G

  	
   

  	
  1.3311

  	
   

  
	
  3I

  	
   

  	
  0.8989

  	
   

  
	
  3J

  	
   

  	
  0.8989

  	
   

  
	
  3K

  	
   

  	
  1.1157

  	
   

  
	
  3L

  	
   

  	
  0.6448

  	
   

  
	
  3M

  	
   

  	
  0.8671

  	
   

  
	
  3N

  	
   

  	
  1.2135

  	
   

  
	
  3O

  	
   

  	
  1.4704

  	
   

  
	
  3P

  	
   

  	
  0.8989

  	
   

  
	
  3Q

  	
   

  	
  1.4912

  	
   

  
	
  3R

  	
   

  	
  0.6882

  	
   

  
	
  3S

  	
   

  	
  0.5166

  	
   

  
	
  3T

  	
   

  	
  0.7292

  	
   

  
	
  3U

  	
   

  	
  1.6378

  	
   

  
	
  3V

  	
   

  	
  0.7255

  	
   

  
	
  3X

  	
   

  	
  0.7398

  	
   

  
	
  3Y

  	
   

  	
  0.9967

  	
   

  
	
  3Z

  	
   

  	
  0.5590

  	
   

  
	
  40

  	
   

  	
  0.7292

  	
   

  
	
  41

  	
   

  	
  0.9119

  	
   

  
	
  42

  	
   

  	
  1.1637

  	
   

  
	
  46

  	
   

  	
  1.1637

  	
   

  
	
  47

  	
   

  	
  1.3588

  	
   

  
	
  48

  	
   

  	
  0.9368

  	
   

  
	
  49

  	
   

  	
  1.2310

  	
   

  
	
  4A

  	
   

  	
  1.2080

  	
   

  
	
  4B

  	
   

  	
  1.1305

  	
   

  
	
  4E

  	
   

  	
  1.2015

  	
   

  
	
  4F

  	
   

  	
  1.2836

  	
   

  
	
  4G

  	
   

  	
  1.1000

  	
   

  
	
  4H

  	
   

  	
  1.1000

  	
   

  
	
  4I

  	
   

  	
  1.1102

  	
   

  
	
  4K

  	
   

  	
  1.0032

  	
   

  
	
  4L

  	
   

  	
  1.0945

  	
   

  
	
  4M

  	
   

  	
  0.9917

  	
   

  
	
  4N

  	
   

  	
  0.9331

  	
   

  
	
  4P

  	
   

  	
  0.9548

  	
   

  
	
  4Q

  	
   

  	
  0.9548

  	
   

  
	
  4R

  	
   

  	
  1.1000

  	
   

  
	
  4S

  	
   

  	
  1.1102

  	
   

  
	
  4T

  	
   

  	
  1.1000

  	
   

  
	
  4U

  	
   

  	
  0.7398

  	
   

  
	
  4V

  	
   

  	
  1.0945

  	
   

  
	
  4W

  	
   

  	
  1.2135

  	
   

  
	
  4X

  	
   

  	
  1.1000

  	
   

  
	
  4Y

  	
   

  	
  0.7269

  	
   

  
	
  51

  	
   

  	
  0.7255

  	
   

  
	
  52

  	
   

  	
  0.7292

  	
   

  
	
  53

  	
   

  	
  0.6448

  	
   

  
	
  54

  	
   

  	
  0.5166

  	
   

  
	
  55

  	
   

  	
  0.7292

  	
   

  
	
  56

  	
   

  	
  0.6448

  	
   

  
	
  57

  	
   

  	
  0.5166

  	
   

  
	
  58

  	
   

  	
  0.7255

  	
   

  
	
  59

  	
   

  	
  0.6448

  	
   

  
	
  5A

  	
   

  	
  1.0945

  	
   

  
	
  5B

  	
   

  	
  1.1157

  	
   

  
	
  5C

  	
   

  	
  1.1000

  	
   

  
	
  5D

  	
   

  	
  1.0299

  	
   

  
	
  5E

  	
   

  	
  1.0834

  	
   

  
	
  5F

  	
   

  	
  1.1577

  	
   

  
	
  5G

  	
   

  	
  1.1637

  	
   

  
	
  5H

  	
   

  	
  1.1798

  	
   

  
	
  5I

  	
   

  	
  1.1180

  	
   

  
	
  5J

  	
   

  	
  0.6005

  	
   

  
	
  5K

  	
   

  	
  1.1821

  	
   

  
	
  5L

  	
   

  	
  1.1577

  	
   

  
	
  5M

  	
   

  	
  1.1000

  	
   

  
	
  5N

  	
   

  	
  1.0834

  	
   

  
	
  5O

  	
   

  	
  0.7292

  	
   

  
	
  5P

  	
   

  	
  1.1577

  	
   

  
	
  5Q

  	
   

  	
  0.5973

  	
   

  
	
  5R

  	
   

  	
  0.7292

  	
   

  
	
  5S

  	
   

  	
  0.7255

  	
   

  
	
  5T

  	
   

  	
  1.1000

  	
   

  
	
  5U

  	
   

  	
  1.1157

  	
   

  
	
  5V

  	
   

  	
  1.1000

  	
   

  
	
  5W

  	
   

  	
  1.1157

  	
   

  
	
  5X

  	
   

  	
  0.7412

  	
   

  
	
  5Y

  	
   

  	
  0.7412

  	
   

  
	
  5Z

  	
   

  	
  1.7495

  	
   

  
	
  61

  	
   

  	
  1.1102

  	
   

  
	
  62

  	
   

  	
  1.1102

  	
   

  
	
  63

  	
   

  	
  1.7578

  	
   

  
	
  64

  	
   

  	
  0.9409

  	
   

  
	
  65

  	
   

  	
  0.7292

  	
   

  
	
  66

  	
   

  	
  1.1637

  	
   

  
	
  67

  	
   

  	
  1.1637

  	
   

  
	
  68

  	
   

  	
  1.1000

  	
   

  
	
  69

  	
   

  	
  0.8989

  	
   

  
	
  6A

  	
   

  	
  0.9917

  	
   

  
	
  6B

  	
   

  	
  1.1157

  	
   

  
	
  6C

  	
   

  	
  0.9967

  	
   

  
	
  6D

  	
   

  	
  1.0945

  	
   

  
	
  6E

  	
   

  	
  0.9750

  	
   

  
	
  6F

  	
   

  	
  1.0424

  	
   

  
	
  6G

  	
   

  	
  0.6005

  	
   

  
	
  6H

  	
   

  	
  1.1577

  	
   

  
	
  6I

  	
   

  	
  1.1102

  	
   

  
	
  6J

  	
   

  	
  1.1102

  	
   

  
	
  6K

  	
   

  	
  0.8989

  	
   

  
	
  6L

  	
   

  	
  0.8989

  	
   

  
	
  6M

  	
   

  	
  1.1180

  	
   

  
	
  6N

  	
   

  	
  1.1180

  	
   

  
	
  6O

  	
   

  	
  1.1102

  	
   

  
	
  6P

  	
   

  	
  1.0424

  	
   

  
	
  6Q

  	
   

  	
  0.9280

  	
   

  
	
  6R

  	
   

  	
  1.1637

  	
   

  
	
  6S

  	
   

  	
  0.8805

  	
   

  
	
  6T

  	
   

  	
  1.1102

  	
   

  
	
  6U

  	
   

  	
  1.1102

  	
   

  
	
  6V

  	
   

  	
  1.1102

  	
   

  
	
  6W

  	
   

  	
  1.1102

  	
   

  
	
  6X

  	
   

  	
  1.1102

  	
   

  
	
  6Y

  	
   

  	
  1.7578

  	
   

  
	
  6Z

  	
   

  	
  1.2241

  	
   

  
	
  71

  	
   

  	
  1.1102

  	
   

  
	
  72

  	
   

  	
  1.1102

  	
   

  
	
  73

  	
   

  	
  0.8948

  	
   

  
	
  74

  	
   

  	
  1.1102

  	
   

  
	
  75

  	
   

  	
  0.9368

  	
   

  
	
  76

  	
   

  	
  0.8989

  	
   

  
	
  77

  	
   

  	
  0.9368

  	
   

  
	
  78

  	
   

  	
  0.9409

  	
   

  
	
  79

  	
   

  	
  0.8948

  	
   

  
	
  7A

  	
   

  	
  0.8948

  	
   

  
	
  7B

  	
   

  	
  0.8371

  	
   

  
	
  7C

  	
   

  	
  0.8989

  	
   

  
	
  7D

  	
   

  	
  0.8768

  	
   

  
	
  7E

  	
   

  	
  0.8768

  	
   

  
	
  7F

  	
   

  	
  0.9368

  	
   

  
	
  7G

  	
   

  	
  0.9409

  	
   

  
	
  7H

  	
   

  	
  1.1102

  	
   

  
	
  7I

  	
   

  	
  1.1102

  	
   

  
	
  7J

  	
   

  	
  0.9409

  	
   

  
	
  7K

  	
   

  	
  0.9368

  	
   

  
	
  7L

  	
   

  	
  0.8989

  	
   

  
	
  7M

  	
   

  	
  0.8371

  	
   

  
	
  7N

  	
   

  	
  0.9368

  	
   

  
	
  7O

  	
   

  	
  0.8989

  	
   

  
	
  7P

  	
   

  	
  0.8948

  	
   

  
	
  7Q

  	
   

  	
  0.7527

  	
   

  
	
  7R

  	
   

  	
  1.7578

  	
   

  
	
  7S

  	
   

  	
  1.7578

  	
   

  
	
  7T

  	
   

  	
  1.1102

  	
   

  
	
  7U

  	
   

  	
  1.1102

  	
   

  
	
  7V

  	
   

  	
  1.1102

  	
   

  
	
  7W

  	
   

  	
  1.1102

  	
   

  
	
  7X

  	
   

  	
  1.1102

  	
   

  
	
  7Y

  	
   

  	
  1.1102

  	
   

  
	
  7Z

  	
   

  	
  1.7495

  	
   

  
	
  82

  	
   

  	
  1.1000

  	
   

  
	
  8A

  	
   

  	
  1.1102

  	
   

  
	
  8B

  	
   

  	
  0.8989

  	
   

  
	
  8C

  	
   

  	
  0.8948

  	
   

  
	
  8E

  	
   

  	
  0.7869

  	
   

  
	
  8F

  	
   

  	
  0.8404

  	
   

  
	
  8G

  	
   

  	
  1.1102

  	
   

  
	
  8H

  	
   

  	
  1.0032

  	
   

  
	
  8I

  	
   

  	
  0.8989

  	
   

  
	
  8J

  	
   

  	
  0.8989

  	
   

  
	
  8K

  	
   

  	
  0.8989

  	
   

  
	
  8L

  	
   

  	
  1.6115

  	
   

  
	
  8M

  	
   

  	
  0.9986

  	
   

  
	
  8N

  	
   

  	
  0.9548

  	
   

  
	
  8P

  	
   

  	
  1.1000

  	
   

  
	
  8R

  	
   

  	
  1.7864

  	
   

  
	
  8S

  	
   

  	
  1.0618

  	
   

  
	
  8T

  	
   

  	
  0.5590

  	
   

  
	
  8U

  	
   

  	
  1.6346

  	
   

  
	
  8V

  	
   

  	
  1.1637

  	
   

  
	
  8X

  	
   

  	
  0.6448

  	
   

  
	
  8Y

  	
   

  	
  0.7255

  	
   

  
	
  8Z

  	
   

  	
  0.7527

  	
   

  
	
  91

  	
   

  	
  1.2135

  	
   

  
	
  92

  	
   

  	
  1.1577

  	
   

  
	
  93

  	
   

  	
  0.7292

  	
   

  
	
  96

  	
   

  	
  0.9368

  	
   

  
	
  9A

  	
   

  	
  0.7232

  	
   

  
	
  9B

  	
   

  	
  0.6771

  	
   

  
	
  9C

  	
   

  	
  0.7269

  	
   

  
	
  9D

  	
   

  	
  0.7232

  	
   

  
	
  9E

  	
   

  	
  0.7048

  	
   

  
	
  9F

  	
   

  	
  0.7527

  	
   

  
	
  9G

  	
   

  	
  0.7564

  	
   

  
	
  9H

  	
   

  	
  0.7675

  	
   

  
	
  9I

  	
   

  	
  0.7269

  	
   

  
	
  9J

  	
   

  	
  0.7232

  	
   

  
	
  9L

  	
   

  	
  1.7495

  	
   

  
	
  9M

  	
   

  	
  0.6411

  	
   

  
	
  9N

  	
   

  	
  0.7048

  	
   

  
	
  9O

  	
   

  	
  0.6448

  	
   

  
	
  9P

  	
   

  	
  0.6411

  	
   

  
	
  9Q

  	
   

  	
  0.6411

  	
   

  
	
  9R

  	
   

  	
  0.7527

  	
   

  
	
  9S

  	
   

  	
  0.6411

  	
   

  
	
  9T

  	
   

  	
  0.9409

  	
   

  
	
  9U

  	
   

  	
  1.2135

  	
   

  
	
  9W

  	
   

  	
  0.6448

  	
   

  
	
  9X

  	
   

  	
  1.1102

  	
   

  
	
  9Y

  	
   

  	
  1.1000

  	
   

  
	
  9Z

  	
   

  	
  1.0424

  	
   

  
	
  AI

  	
   

  	
  1.7578

  	
   

  
	
  B1

  	
   

  	
  0.7292

  	
   

  
	
  B2

  	
   

  	
  0.7564

  	
   

  
	
  B3

  	
   

  	
  0.7564

  	
   

  
	
  B4

  	
   

  	
  0.7292

  	
   

  
	
  B5

  	
   

  	
  0.8989

  	
   

  
	
  B6

  	
   

  	
  1.1798

  	
   

  
	
  B7

  	
   

  	
  1.1637

  	
   

  
	
  B8

  	
   

  	
  0.7255

  	
   

  
	
  B9

  	
   

  	
  0.7255

  	
   

  
	
  C2

  	
   

  	
  0.6536

  	
   

  
	
  C3

  	
   

  	
  0.6536

  	
   

  
	
  C5

  	
   

  	
  0.9091

  	
   

  
	
  C7

  	
   

  	
  0.7292

  	
   

  
	
  C8

  	
   

  	
  0.7292

  	
   

  
	
  C9

  	
   

  	
  0.7412

  	
   

  
	
  D1

  	
   

  	
  0.7412

  	
   

  
	
  D2

  	
   

  	
  0.7292

  	
   

  
	
  D3

  	
   

  	
  0.7689

  	
   

  
	
  D4

  	
   

  	
  0.7689

  	
   

  
	
  D5

  	
   

  	
  0.7689

  	
   

  
	
  D6

  	
   

  	
  0.7195

  	
   

  
	
  E2

  	
   

  	
  0.7721

  	
   

  
	
  E3

  	
   

  	
  0.8989

  	
   

  
	
  E5

  	
   

  	
  0.7412

  	
   

  
	
  E7

  	
   

  	
  1.1157

  	
   

  
	
  F1

  	
   

  	
  0.7292

  	
   

  
	
  F3

  	
   

  	
  0.7412

  	
   

  
	
  F4

  	
   

  	
  0.7292

  	
   

  
	
  F7

  	
   

  	
  0.7398

  	
   

  
	
  I2

  	
   

  	
  1.0106

  	
   

  
	
  I3

  	
   

  	
  0.6171

  	
   

  
	
  I8

  	
   

  	
  1.1798

  	
   

  
	
  I9

  	
   

  	
  0.6448

  	
   

  
	
  OH

  	
   

  	
  1.7578

  	
   

  
	
  P3

  	
   

  	
  0.5134

  	
   

  
	
  P4

  	
   

  	
  0.6517

  	
   

  
	
  P9

  	
   

  	
  1.1157

  	
   

  
	
  Q4

  	
   

  	
  0.7255

  	
   

  
	
  S1

  	
   

  	
  1.1277

  	
   

  
	
  S2

  	
   

  	
  1.8025

  	
   

  
	
  S3

  	
   

  	
  0.8768

  	
   

  
	
  S4

  	
   

  	
  1.6378

  	
   

  
	
  S5

  	
   

  	
  1.1102

  	
   

  
	
  S6

  	
   

  	
  1.1102

  	
   

  
	
  S7

  	
   

  	
  1.7578

  	
   

  
	
  S8

  	
   

  	
  0.8768

  	
   

  
	
  S9

  	
   

  	
  1.7495

  	
   

  



 


58

















 


ADDENDUM B.2


 


DIVISION
OF RESPONSIBILITY


MATRIX
OF HMO, PPG AND SHARED RISK/HOSPITAL CAPITATED SERVICES


 


COMMERCIAL
HMO AND POINT OF SERVICE BENEFIT PROGRAMS


 


The following matrix outlines the division of financial responsibility
between FHS, PPG and Hospital.  The
matrix is intended only as a summary guide. 
The applicable Subscriber’s Certificate should be consulted for an
accurate and complete description of Covered Services and the Provider
Operations Manual for clarification.


 


MATRIX
EFFECTIVE 1/1/98 THROUGH 6/30/98


 


	
   

  	
   

  	
  PPG CAPITATED

  SERVICES

  	
   

  	
  HMO RISK

  SERVICES

  	
   

  	
  SHARED

  RISK/HOSPITAL

  CAPITATED

  SERVICES

  
	
  AIDS - Facility
  Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  AIDS -
  Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  AIDS - Drugs

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  ALLERGY IMMUNOTHERAPY

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  ALLERGY TESTING

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  ALPHA-FETOPROTEIN

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  AMBULANCE  

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • In Area (30 Mile Radius)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Out of Area

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  ANESTHESIOLOGY

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  BIOFEEDBACK

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  BLOOD/BLOOD PRODUCTS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Blood Bank

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Autologous/Homologous

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Storage and Collection of Blood

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  CHEMICAL DEPENDENCY

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  •  Inpatient
  Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Inpatient Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  •  Outpatient
  Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  •  Outpatient
  Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  CHEMOTHERAPY

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Drugs, including
  Epogen, Nupogen and adjunctive therapies

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  CHIROPRACTIC
  (Medicare Approved)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  COLOSTOMY SUPPLIES

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  CONSULTATIONS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  



 


R: Reinsurance purchased by PPG from FHS.  Claims shall be submitted to and processed by FHS’ Claims Dept.


 


59

















 


	
   

  	
   

  	
  PPG CAPITATED

  SERVICES

  	
   

  	
  HMO RISK

  SERVICES

  	
   

  	
  SHARED

  RISK/HOSPITAL

  CAPITATED

  SERVICES

  
	
  COSMETIC
  SURGERY

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  (Medically Necessary)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  CRITICAL
  CARE VISITS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  DENTAL
  SERVICES

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  (When a covered benefit)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  DIAGNOSTIC TESTING - Outpatient

  Facility & Professional

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  DURABLE
  MEDICAL EQUIPMENT

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Outpatient

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Surgically Implanted

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  EMERGENCY
  ADMISSIONS – In-Area

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  EMERGENCY
  ADMISSIONS –
  Out-of-Area

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  EMERGENCY
  ROOM VISITS –
  In-Area

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  •
  Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  EMERGENCY ROOM VISITS – Out-of-

  Area

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  EXTENDED CARE/SKILLED NURSING FACILITY

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  GROWTH
  HORMONES

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  HEARING
  AIDS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  HEMODIALYSIS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Epogen, Nupogen

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  HEPATITIS-B

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  HOME
  HEALTH

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  HOME
  VISITS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  



 


R:
Reinsurance purchased by PPG from FHS. Claims shall be submitted to and
processed by FHS’ Claims Dept.


 












*** All references to the
division of financial responsibility have been deleted.


 


60

















 


	
   

  	
   

  	
  PPG CAPITATED

  SERVICES

  	
   

  	
  HMO RISK

  SERVICES

  	
   

  	
  SHARED

  RISK/HOSPITAL

  CAPITATED

  SERVICES

  
	
  HOSPICE

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  HOSPITAL
  BASED PHYSICIANS -

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  Inpatient, Ambulatory Surgery or Emergency Room

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Technical Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  IMMUNIZATIONS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  INFANT
  APNEA MONITOR

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  INJECTIBLES,
  SELF ADMINISTERED

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  IMPATIENT
  VISITS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  IVF &
  GIFT

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  LITHOTRIPSY

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  MATERNITY – Deliveries and Non-Deliveries

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  MEDICAL
  ADMISSIONS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  MENTAL
  HEALTH – Inpatient

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  MENTAL
  HEALTH – Outpatient

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  OFFICE
  VISITS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  PATIENT
  EDUCATION

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  PATHOLOGY – Inpatient, Ambulatory Surgery or Emergency Room

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Technical Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  PATHOLOGY
  – Office

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  



 


R:
Reinsurance purchased by PPG from FHS. Claims shall be submitted to and processed
by FHS’ Claims Dept.


 












*** All references to the
division of financial responsibility have been deleted.


 


61

















 


	
   

  	
   

  	
  PPG CAPITATED

  SERVICES

  	
   

  	
  HMO RISK

  SERVICES

  	
   

  	
  SHARED

  RISK/HOSPITAL

  CAPITATED

  SERVICES

  
	
  PATHOLOGY
  – Outpatient

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Technical Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  PERIODIC
  EXAMS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  PRE
  ADMISSION -
  Outpatient

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  Laboratory, X-ray

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  (within 72 hrs. or related admission)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  PROSTHETIC/ORTHOTIC
  DEVICES

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Outpatient

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Surgically Implanted

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  RADIOLOGY - Inpatient, Ambulatory Surgery or Emergency Room

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Technical Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  RADIOLOGY - Office

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  RADIOLOGY - Outpatient

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Technical Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  SPEECH AND
  HEARING EXAMS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  SUPPLIES- Medical, Surgical, Office

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  •
  Related to an Outpatient Office Visit:

  Splints, Casts, Bandages, etc....

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Related to a Hospital
  Stay:

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  Surgical
  Supplies, Equipment, etc...

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  SUPPLIES,
  DIABETIC

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Chem. Strips, Lancet,
  Needles, Syringes

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Glucometer

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  SURGERY - Inpatient

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  SURGERY- Office

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  SURGERY - Outpatient

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  THERAPEUTIC
  INJECTIONS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  THERAPY:
  Physical, Occupational, Speech

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Inpatient

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Outpatient/Office

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  



 


R: Reinsurance purchased by PPG from FHS.
Claims shall be submitted to and processed by FHS’ Claims Dept.


 












*** All references to the division of financial responsibility have
been deleted.


 


62

















 


	
   

  	
   

  	
  PPG CAPITATED

  SERVICES

  	
   

  	
  HMO RISK

  SERVICES

  	
   

  	
  SHARED

  RISK/HOSPITAL

  CAPITATED

  SERVICES

  
	
  TRANSPLANTS
  (Non-experimental)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Organ Procurement

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Covered Immunosupressives

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  TRANSPLANT
  EVALUATIONS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  URGENT
  CARE VISITS –
  In-Area

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  URGENT
  CARE VISITS –
  Out-of-Area

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  VISION
  CARE

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Exams and Medically Necessary
  Care

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Implanted Lenses
  (Cataract Surgery)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Lenses and Frames
  (Non-Cataract)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  



 


R:
Reinsurance purchased by  PPG from
FHS. Claims shall be submitted to and processed by FHS’ Claims Dept.


 












*** All references to the
division of financial responsibility have been deleted.


 


63

















 


	
   

  	
   

  	
  PPG CAPITATED

  SERVICES

  	
   

  	
  HMO RISK

  SERVICES

  	
   

  	
  SHARED

  RISK/HOSPITAL

  CAPITATED

  SERVICES

  
	
  AIDS - Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  AIDS - Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  AIDS - Drugs

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  ALLERGY
  IMMUNOTHERAPY

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  ALLERGY
  TESTING

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  ALPHA-FETOPROTEIN

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  AMBULANCE

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • In Area (30 Mile Radius)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Out of Area

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  ANESTHESIOLOGY

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  BIOFEEDBACK

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  BLOOD/BLOOD
  PRODUCTS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Blood Bank

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Autologous/Homologous

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Storage and Collection of
  Blood

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  CHEMICAL
  DEPENDENCY

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Inpatient Facility
  Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Inpatient Professional
  Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Outpatient Facility
  Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Outpatient Professional
  Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  CHEMOTHERAPY

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Drugs, including Epogen, Nupogen and adjunctivc therapies

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  CHIROPRACTIC
  (Medicare Approved)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  COLOSTOMY
  SUPPLIES

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  CONSULTATIONS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  COSMETIC
  SURGERY

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  (Medically Necessary)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  CRITICAL
  CARE VISITS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  DENTAL
  SERVICES

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  (When a covered benefit)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  DIAGNOSTIC
  TESTING - Outpatient

  Facility & Professional

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  



 


R: Reinsurance purchased by
PPG from FHS. Claims shall be submitted to and processed by FHS’ Claims Dept.


 












*** All references to the division of financial
responsibility have been deleted.


 


64

















MATRIX
EFFECTIVE 7/1/98


 


 


	
   

  	
   

  	
  PPG CAPITATED

  SERVICES

  	
   

  	
  HMO RISK

  SERVICES

  	
   

  	
  SHARED

  RISK/HOSPITAL

  CAPITATED

  SERVICES

  
	
  DURABLE
  MEDICAL EQUIPMENT

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Outpatient

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Surgically Implanted

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  EMERGENCY
  ADMISSIONS – In-Area

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  EMERGENCY
  ADMISSIONS – Out of
  Area

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  EMERGENCY
  ROOM VISITS – In
  Area

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  EMERGENCY
  ROOM VISITS – Out-of-Area

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  EXTENDED
  CARE/SKILLED NURSING FACILITY

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  GROWTH
  HORMONES

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  HEARING
  AIDS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  HEMODIALYSIS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Epogen, Nupogen

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  HEPATITIS-B

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  HOME
  HEALTH

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  HOME
  VISITS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  HOSPICE

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  HOSPITAL
  BASED PHYSICIANS -

  Inpatient, Ambulatory Surgery or Emergency Room

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Technical Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  IMMUNIZATIONS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  INFANT
  APNEA MONITOR

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  



 


R:
Reinsurance purchased by PPG from FHS. Claims shall be submitted to and
processed by FHS’ Claims Dept.


 












*** All references to the division of financial responsibility
have been deleted.


 


65

















 


	
   

  	
   

  	
  PPG CAPITATED

  SERVICES

  	
   

  	
  HMO RISK

  SERVICES

  	
   

  	
  SHARED

  RISK/HOSPITAL

  CAPITATED

  SERVICES

  
	
  INJECTIBLES,
  SELF ADMINISTERED

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  INPATIENT
  VISITS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  IVF &
  GIFT

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  LITHOTRIPSY

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  MATERNITY - Deliveries and Non-Deliveries

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  MEDICAL
  ADMISSIONS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  MENTAL
  HEALTH - Inpatient

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  MENTAL
  HEALTH - Outpatient

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  OFFICE
  VISITS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  PATIENT
  EDUCATION

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  PATHOLOGY - Inpatient, Ambulatory Surgery or
  Emergency Room

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Technical Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  PATHOLOGY –  Office

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  PATHOLOGY – Outpatient

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Technical Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  PERIODIC
  EXAMS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  PRE
  ADMISSION -
  Outpatient

  Laboratory, X-ray

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  (within 72 hrs. or related
  admission)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  PROSTHETIC/ORTHOTIC
  DEVICES

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Outpatient

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Surgically Implanted

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  



 


R: Reinsurance purchased by PPG from FHS.
Claims shall be submitted to and processed by FHS’ Claims Dept.


 












*** All references to the division of financial
responsibility have been deleted.


 


66

















 


	
   

  	
   

  	
  PPG CAPITATED

  SERVICES

  	
   

  	
  HMO RISK

  SERVICES

  	
   

  	
  SHARED

  RISK/HOSPITAL

  CAPITATED

  SERVICES

  
	
  RADIOLOGY - Inpatient, Ambulatory Surgery or
  Emergency Room

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Technical Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  RADIOLOGY
  – Office

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  RADIOLOGY - Outpatient

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Technical Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  SPEECH AND
  HEARING EXAMS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  SUPPLIES- Medical, Surgical, Office

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Related to an Outpatient
  Office Visit:

  Splints, Casts, Bandages, etc...

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Related to a Hospital
  Stay:

  Surgical Supplies, Equipment, etc...

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  SUPPLIES,
  DIABETIC

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Chem, Strips, Lancet,
  Needles, Syringes

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Glucometer

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  SURGERY – Inpatient

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  SURGERY – Office

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  SURGERY – Outpatient

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  THERAPEUTIC
  INJECTIONS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  THERAPY: Physical, Occupational, Speech

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Inpatient

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Outpatient/Office

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  TRANSPLANTS (Non-experimental)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Organ Procurement

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Covered Immunosupressives

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  TRANSPLANT
  EVALUATIONS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  URGENT
  CARE VISITS –
  In-Area

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  URGENT
  CARE VISITS –
  Out-of-Area

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  



 


R: Reinsurance purchased by PPG from FHS.
Claims shall be submitted to and processed by FHS’ Claims Dept.


 












*** All references to the division of financial responsibility
have been deleted.


 


67

















 


	
   

  	
   

  	
  PPG CAPITATED

  SERVICES

  	
   

  	
  HMO RISK

  SERVICES

  	
   

  	
  SHARED

  RISK/HOSPITAL

  CAPITATED

  SERVICES

  
	
  VISION
  CARE

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Exams and Medically
  Necessary Care

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Implanted Lenses
  (Cataract Surgery)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Lenses and Frames
  (Non-Cataract)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  



 


R: Reinsurance purchased by
PPG from FHS. Claims shall be submitted to and processed by FHS’ Claims Dept.


 












*** All references to the division of financial
responsibility have been deleted.


 


68

















 


ADDENDUM C


 


MEDICARE HEALTH MAINTENANCE ORGANIZATION (HMO) AND
MEDICARE POINT OF SERVICE (POS) BENEFIT PROGRAMS


 


PPG
understands and agrees that the obligations of FHS set forth in this Addendum
are only the obligations of Health Net (hereafter “HMO”) and not the
obligations of FHS or any other Affiliate of FHS.  PPG shall be compensated according to this Addendum B and this Addendum
shall be applicable to only those Medicare HMO and Medicare POS Members listed
on the applicable Capitation remittance summaries. Pursuant to Section 8.18, Entire
Agreement, PPG understands and agrees that the compensation and provisions
under the agreement between PPG and the entity formerly known as Foundation
Health, a California Health Plan, are applicable to those Medicare HMO and
Medicare POS Member listed on the Foundation Health capitation remittance
summary, and that the Foundation Health agreement shall remain in full force
and effect for those Members until such time those Members are no longer
enrolled in Foundation Health Benefit Programs.


 


A.            DEFINITIONS.  For
purposes of this Addendum C, the definitions included herein shall have the
meaning required by law to applicable Medicare Risk Programs.


 


1.   HCFA.  The
Health Care Financing Administration which is the agency of the federal
government responsible for administration of the Medicare Benefit program.


 


2.   Medicare Enrollment Area.  The
area approved by HCFA and the State regulatory agency as the area in which HMO
may market and enroll Medicare HMO and Medicare POS Members.  At any given time during the term of this
Agreement, the Medicare Enrollment Area consists of the list of zip codes
currently approved by HCFA and/or the State regulatory agency as the Medicare
Enrollment Area. (This is not the area for which PPG shall be responsible for
“in-area” services.)


 


3.   Monthly Revenue.  The
amount equal to the sum of the applicable HCFA payment, the county premium, if
any, less specific amounts withheld to cover the actual cost of supplemental
benefits that are not PPG Capitated Services, including but not limited to,
pharmacy, vision, and dental benefits, commissions, or taxes, if any, as set
forth in Addendum C, plus POS premium, if any. The withhold amounts shall be
revised annually and Capitation adjustments made accordingly.


 


B.            MEDICARE HMO BENEFIT PROGRAMS.


 


1.             HMO
Benefit Program.  The Medicare HMO Benefit Program shall apply
to Medicare HMO Members; any per Member per month (‘‘PMPM”) or any percent of
Monthly Revenue calculation under Addendum C shall be based on Medicare HMO
Members.


 


2.             Capitation;
PPG Capitated Services.


 


2.1          Compensation
for PPG Capitated Services.  As compensation for rendering
PPG Capitated Services as defined herein, HMO shall pay PPG Capitation at forty
two and twenty four one hundredths percent (42.24%) of Monthly Revenue as set
forth below for each Medicare HMO Member eligible to receive such services from
PPG during any particular month. Capitation shall be computed on the basis of
the most current information available and shall be paid by HMO by wire
transfer on or before the fifteenth (15th) day of each month or the first
business day following the fifteenth if the fifteenth is a holiday or on a
weekend or within two (2) days of HCFA’s payment to HMO, whichever is later.
Each Capitation payment shall be accompanied by a remittance summary. The
remittance summary identifies the total Capitation payable and those Medicare
HMO


 


69

















 


Members
for whom Capitation is being paid. In the event of a Capitation error,
resulting in an overpayment or underpayment to PPG, HMO shall adjust subsequent
Capitation to offset such error.


 


2.2          Professional Stop Loss Program.


 


PPG
elects not to participate in the Professional Stop Loss Program.  PPG shall provide HMO with proof of
Professional Stop Loss coverage.


 


2.3          Compensation
to Other Providers of PPG Capitated Services.  PPG
shall compensate all providers of PPG Capitated Services to Medicare HMO
Members assigned to PPG. In the event that PPG does not process and pay
eligible claims submitted to PPG for Capitated Services within applicable time
limits, HMO may pay such claims at the lesser of HMO’s contract rate with such
provider, if any, the PPG’s subcontract terms, or the provider’s billed
charges. HMO shall deduct any such claim amounts paid from PPG’s Capitation, as
set forth in the Operations Manual.


 


2.4          Compensation
for Employer Group Retirees.  As compensation for supplemental benefits
sold to employer group retirees for Medicare HMO Members, HMO shall pay PPG the
applicable PMPM rates as illustrated below.


 


 


	
  Supplemental Benefit

  	
   

  	
  PMPM

  
	
  $5 office visit &
  specialist consultation copay waived

  	
   

  	
  ***

  
	
  $5 vision and hearing exam
  copay waived

  	
   

  	
  ***

  
	
  $20 outpatient mental
  health copay waived

  	
   

  	
  ***

  
	
  $20 outpatient substance
  abuse copay waived

  	
   

  	
  ***

  



 


HMO
shall develop and adjust supplemental benefits PMPM rates on a calendar year
basis and forward such rates to PPG on or before December 15th of
the prior year.


 


3.             Shared Risk Program.


 


3.1          Shared
Risk Budget.  As a contingency for any PPG liability under
the Shared Risk Program, HMO shall deduct *** of PPG’s Capitation and place
such amount in the Withhold Fund as described in this Agreement. Each month,
HMO shall fund the Shared Risk Budget for each eligible Medicare HMO Member at
*** of Monthly Revenue.


 


In
the event the claims for Shared Risk Services exceed Shared Risk Revenue at the
interim settlement date., HMO may, at its sole discretion, deduct up to *** of
PPG’s Capitation for Medicare HMO Members and place such amount in the Withhold
Fund as described in this Agreement, and may continue such withhold until the
final Shared Risk settlement. The Withhold fund shall accrue interest which
shall be the lower of *** the prime interest rate as stated in the Wall Street
Journal, on the last business day in December of the contract year.


 


If, upon final Shared Risk settlement, (i) a Shared
Risk gain exists, HMO shall refund the Withhold Fund, plus accrued interest, to
PPG together with the PPG’s share of the gain or (ii) a Shared Risk deficit
exists, subject to Section 4.3, of the Agreement, HMO shall offset the Withhold
Fund against PPG’s outstanding liability or any other amounts payable to
HMO.  Any amount in the Withhold Fund
not offset against


 


70

















 


such PPG liability shall be
refunded to PPG at the final Risk Sharing settlement.  However, as a contingency for any PPG liability under this Shared
Risk Program, HMO shall continue, at its sole discretion, to deduct up to ***
of PPG’s Capitation for Medicare HMO Members and place such amount in the
Withhold Fund as described in this Agreement


 


3.2          Shared
Risk Budget Surplus.  In the event of a Shared Risk Budget
surplus, PPG’s share of the surplus shall be limited to the lesser of (a) ***
of the Shared Risk Budget surplus, or (b) an amount not to exceed *** of the
annual gross PPG Capitation.


 


3.3          Shared
Risk Budget Deficit.  In the event of a Shared Risk Budget
deficit, PPG’s share of the deficit shall be limited to the lesser of (a) ***
of the Shared Risk Budget deficit, or (b) an amount not to exceed *** of the
annual gross PPG Capitation.


 


3.4          Shared
Risk Reinsurance.  PPG shall participate in the Shared Risk
Reinsurance program. The cost to the PPG for the Shared Risk Reinsurance
program shall be calculated as follows:


 


(a)           Out-of-Area Emergency and Urgently
Needed services: *** of the applicable Medicare HMO Member’s HCFA payment and
county premium, if any.


 


Out-of-Area
Emergency and Urgently Needed services are reimbursed at *** of cost, and the
remaining *** of the cost shall be charged against the Shared Risk Budget.


 


(b)           In-Area Shared Risk services: 0.06 %
of the applicable Medicare HMO Member’s HCFA payment and county premium, if
any.


 


The
cost of in-area Shared Risk services utilized by a Medicare HMO Member in a
Reconciliation Period shall be charged against the Shared Risk Budget as
follows: *** any amount over ***.


 


4.             Pharmacy
Budget.  For applicable Medicare HMO Members, each
month HMO shall fund the Pharmacy Budget as set forth in this Addendum C.


 


5.             Quality
of Care Improvement Program (QCIP).  QCIP,
as in the Operations Manual, rewards PPG for meeting and exceeding quality
standards and Member satisfaction levels. PPG is eligible for a lump sum award
up to *** PMPM, if performance is achieved in all categories. The lump sum
shall be payable in September following the calendar year in which the
measurement was taken. Wellness programs, as set forth in the Operations
Manual, are a component of QCIP.  The
above PMPM award includes funding for wellness programs. Compensation for
wellness programs for eligible PPG’s contracted with HMO for a full twelve
months shall be payable at *** per class up to *** total until *** Medicare HMO
members. Thereafter, for Medicare HMO Members, *** PMPM shall be distributed to
PPG monthly with the Capitation. HMO reserves the right to alter components and
measurements of QCIP annually. Wellness programs and wellness compensation
shall be subject to annual change by HMO.


 


71

















 


C.            MEDICARE POS BENEFIT PROGRAM.


 


1.             POS Benefit Program.  Under a POS Benefit Program, Members may
elect, at the time of obtaining each Covered Service, to utilize: (i) HMO
coverage through PPG; (ii) coverage by self-referring to any PPO Provider; or
(iii) coverage for self-referring to non-Participating Providers in accordance
with Benefit Program requirements. Medicare HMO Members may be eligible for
Medicare POS Benefit Programs.


 


2.             Definitions.


 


2.1          In-Network
Services.  PPG Capitated Services and Shared Risk
Services provided or arranged through PPG.


 


2.2          Out-of-Network
Services.  In accordance with Benefit Program
requirements, Covered Services provided as a result of a Members self referral
to a PPO Provider, or to a non-Participating Provider. Out-of-Network Services
may be provided in-area or out-of-area.


 


3.             Capitation: PPG Capitated
Services.


 


3.1          Capitation
Rate.  For Capitated Services, PPG shall be
compensated for rendering professional In-Nctwork Services to Medicare POS
Members at the percent of Monthly Revenue for Medicare HMO Members as set forth
in this Addendum C, less a *** withhold (Professional Out-of-Network Withhold),
for each Medicare POS Member eligible to receive such services from PPG during
any particular month.


 


In
the event PPG’s enrollment exceeds *** Medicare POS Members, the Professional
Out-of-Network Withhold percentage shall be equal to (i) PPG’s prior year’s
professional Out-of-Network costs, divided by the total of PPG’s Capitation for
Medicare POS Members (prior to the Professional Out-of-Network Withhold)
rounded to the nearest multiple of five, ***, or (ii) *** if there is no prior
year experience or if PPG has *** less Medicare POS Members. On or before
December 15th of each year, HMO shall notify PPG of PPG’s
Out-of-Network experience incurred between July 1 of the previous year and June
30 of the current year and the calculation noted above, and such shall be PPG’s
Professional Out-of-Network Withhold percentage for the following year.


 


Capitation
shall be calculated on the basis of the most current information available and
shall be paid by HMO by wire transfer on or before the fifteenth (15th) day of
each month, or the first business day following the fifteenth if the fifteenth
is a holiday or on a weekend, or within two (2) days of HCFA’s payment to HMO,
whichever is later. Each Capitation payment shall be accompanied by a remittance
summary. The remittance summary identifies the total Capitation payable and
those Medicare POS Members for whom Capitation is being paid. In the event of a
Capitation error, resulting in an overpayment or underpayment to PPG, HMO shall
adjust subsequent Capitation to offset such error.


 


3.2          Professional
Stop Loss Program.


 


(a)           In-Network Professional Stop Loss.


 


PPG
elects not to participate in the Professional Stop Loss Program.  PPG shall provide HMO with proof of
Professional Stop Loss coverage.


 


(b)           Out-of-Network
Professional Stop Loss, PPG’s Out-of-Network Professional Stop Loss threshold
shall be *** per Medicare POS Member during the


 


72

















 


calendar
year.  The cost to PPG for the
Out-of-Network Professional Stop Loss program shall be *** of applicable
Medicare POS Member’s MCFA payment and county premium, if any, which shall be
deducted from PPG’s Out-of-Network Risk Sharing Fund.


 


3.3          Professional
Out-of-Network Withhold Fund.  The Professional Out-of-Network
Withhold Fund shall be equal to the amount withheld from POS Capitation as
described above. Each year, HMO shall calculate the difference between the
amount in the Professional Out-of-Network Withhold Fund and the actual claims.
PPG’s share of the difference shall be ***. 
PPG shall not be subject to any downside.


 


4.             POS Shared Risk.


 


4.1          POS
Shared Risk Budget.  Each month, HMO shall fund the POS Shared
Risk Budget for POS Shared Risk Services, at the percent of Monthly Revenue for
Medicare HMO Members as set forth in this Addendum C. HMO shall calculate and
pay POS Shared Risk Claims.


 


4.2          POS
Shared Risk Budget Surplus.  In the event of a POS Shared
Risk Budget surplus, PPG’s share of the surplus shall be the lesser of ***, or
an amount not to exceed *** of the annual gross PPG Capitation.


 


4.3          POS
Shared Risk Deficit.  In the event of a POS Shared Risk Budget
deficit, PPG shall not be liable for the deficit.


 


4.4          Shared Risk Reinsurance.  PPG
shall participate in the POS Shared Risk Reinsurance Program. The cost to the
PPG for the POS Shared Risk Reinsurance Program shall be calculated as follows:


 


(a)           Out-of-Area Emergency and Urgently
Needed Services: 0.75% % of applicable Medicare POS Member’s HCFA payment and
county premium, if any.


 


Out-of-Area
Emergency and Urgently Needed Services are reimbursed at *** cent *** of cost,
and the remaining *** of the cost shall be charged against the POS Shared Risk
Budget.


 


(b)           In-Network and Out-of-Network POS
Shared Risk Services: 0.04 % of applicable Medicare POS Member’s HCFA payment
and county premium, if any.


 


The cost of In-Network and Out-of-Network POS
Shared Risk Services during the Reconciliation Period shall be charged against
the POS Shared Risk Budget as follows: 
*** of any amount over ***.


 


D.            ADMINISTRATION OF SHARED RISK
BUDGET FOR MEDICARE HMO AND POS.


 


1.             Shared Risk Administration.  Each
Reconciliation Period, HMO shall calculate Shared Risk Claims in accordance
with the Operations Manual and compare such claims to the corresponding Shared
Risk Budget.


 


HMO shall perform both an interim and final
settlement.  In the event any amounts
remain in the Withhold Fund following the reconciliation of any shared risk
program, those excess funds shall be paid to PPG by


 


73

















 


April 30 of the following
year. In the event that such claims are less than the Shared Risk Budget for
the Interim Period, PPG’s share of the settlement shall be seventy-five percent
(75%), subject to Section 4.3 of this Agreement. Shared Risk Claims with dates
of service within the Reconciliation Period and paid by March 31 of the
following year shall be used in the calculation. Shared Risk Services incurred
within the Reconciliation Period but paid after March 31 of the following year
will be included in the next Reconciliation Period calculation.


 


2.             Pharmacy Reconciliation For
Medicare HMO Members.  [This section does not apply for Medicare
POS Members.] For each Reconciliation Period, HMO shall calculate pharmacy
claims subject to this Program as outlined in the Operations Manual. HMO shall
compare such claims to the corresponding Pharmacy Budget. In the event pharmacy
claims are less than the Pharmacy Budget, PPG’s share of the Pharmacy Budget
surplus shall be ***. In the event pharmacy claims exceed the Pharmacy Budget,
PPG’s share of the Pharmacy Budget deficit shall be ***. HMO shall perform an
interim and final settlement for the Pharmacy Risk Sharing Program. The timing
of these settlements shall correspond to the interim and final settlements of
other shared risk programs. Subject to Section 4.3 of this Agreement any
Pharmacy Budget deficit shall be offset against any amounts payable by HMO or
any amounts remaining in the Withhold Fund, or shall be offset against Capitation.
In the event the Withhold Fund eliminates the Pharmacy Budget deficit, any
amounts remaining in the Withhold Fund shall be paid to PPG within one hundred
twenty (120) calendar days after the end of the Reconciliation Period.


 


E.             OTHER SERVICES.


 


1.             Contracted Services.  PPG
and Member Physicians shall render Contracted Services which are not PPG
Capitated Services to Members covered under this Addendum C and shall be
compensated on a fee-for-service basis at the rates set forth in Addendum E.
PPG shall submit claims in accordance with the terms of this Agreement.


 


74

















 


ADDENDUM C.1


 


SUPPLEMENTAL
BENEFITS COSTS


 


For
purposes of calculating PPG’s Capitation, the specific amounts set forth below
as a percent of the applicable HCFA payment and the county premium, if any,
shall be withheld to cover the actual cost of supplemental benefits that are
not PPG Capitated Services, and commissions and taxes, if any. Such
supplemental benefits may include, but are not limited to, pharmacy, vision,
and dental benefits. On an annual basis, these withheld amounts shall be
revised, forwarded to PPG, and incorporated into this Agreement by reference.


 




	
  County

  	
   

  	
  Percent

  	
   

  
	
  Alameda

  	
   

  	
  5.71

  	
  %

  
	
  Butte

  	
   

  	
  0.55

  	
  %

  
	
  Colusa

  	
   

  	
  0.52

  	
  %

  
	
  Contra Costa

  	
   

  	
  5.68

  	
  %

  
	
  El Dorado

  	
   

  	
  5.22

  	
  %

  
	
  Fresno

  	
   

  	
  5.11

  	
  %

  
	
  Glenn

  	
   

  	
  0.57

  	
  %

  
	
  Kern

  	
   

  	
  11.80

  	
  %

  
	
  Los Angeles

  	
   

  	
  9.27

  	
  %

  
	
  Madera

  	
   

  	
  4.90

  	
  %

  
	
  Marin

  	
   

  	
  4.09

  	
  %

  
	
  Mariposa

  	
   

  	
  5.42

  	
  %

  
	
  Napa

  	
   

  	
  0.48

  	
  %

  
	
  Orange

  	
   

  	
  10.03

  	
  %

  
	
  Placer

  	
   

  	
  6.71

  	
  %

  
	
  Plumas

  	
   

  	
  0.55

  	
  %

  
	
  Riverside

  	
   

  	
  12.08

  	
  %

  
	
  Sacramento

  	
   

  	
  6.01

  	
  %

  
	
  San Bernadino

  	
   

  	
  11.57

  	
  %

  
	
  San Diego

  	
   

  	
  11.27

  	
  %

  
	
  San Francisco

  	
   

  	
  5.90

  	
  %

  
	
  San Joaquin

  	
   

  	
  7.03

  	
  %

  
	
  San Luis Obispo

  	
   

  	
  11.37

  	
  %

  
	
  San Matco

  	
   

  	
  7.16

  	
  %

  
	
  Santa Barbara

  	
   

  	
  11.28

  	
  %

  
	
  Santa Clara

  	
   

  	
  6.68

  	
  %

  
	
  Sierra

  	
   

  	
  0.58

  	
  %

  
	
  Solano

  	
   

  	
  0.59

  	
  %

  
	
  Sonoma

  	
   

  	
  5.28

  	
  %

  
	
  Stanislaus

  	
   

  	
  7.09

  	
  %

  
	
  Sutter

  	
   

  	
  0.57

  	
  %

  
	
  Tulare

  	
   

  	
  4.91

  	
  %

  
	
  Ventura

  	
   

  	
  11.81

  	
  %

  
	
  Yolo

  	
   

  	
  5.35

  	
  %

  
	
  Yuba

  	
   

  	
  0.55

  	
  %

  






 


75

















 


ADDENDUM C.2


 


PHARMACY
SHARED RISK BUDGETS


 


For purposes of calculating
PPG’s Pharmacy Budget, the specific amounts set forth below as a percent of the
applicable HCFA payment and the county premium, if any, are applicable. On an
annual basis, these amounts shall be revised, forwarded to PPG, and
incorporated into this Agreement by reference.


 




	
  County

  	
   

  	
  Percent

  	
   

  
	
  Alameda

  	
   

  	
  4.48

  	
  %

  
	
  Butte

  	
   

  	
  0.00

  	
  %

  
	
  Colusa

  	
   

  	
  0.00

  	
  %

  
	
  Contra Costa

  	
   

  	
  4.45

  	
  %

  
	
  El Dorado

  	
   

  	
  4.60

  	
  %

  
	
  Fresno

  	
   

  	
  4.42

  	
  %

  
	
  Glenn

  	
   

  	
  0.00

  	
  %

  
	
  Kern

  	
   

  	
  10.35

  	
  %

  
	
  Los Angeles

  	
   

  	
  8.14

  	
  %

  
	
  Madera

  	
   

  	
  4.25

  	
  %

  
	
  Marin

  	
   

  	
  3.58

  	
  %

  
	
  Mariposa

  	
   

  	
  4.69

  	
  %

  
	
  Napa

  	
   

  	
  0.00

  	
  %

  
	
  Orange

  	
   

  	
  8.80

  	
  %

  
	
  Placer

  	
   

  	
  5.26

  	
  %

  
	
  Plumas

  	
   

  	
  0.00

  	
  %

  
	
  Riverside

  	
   

  	
  11.51

  	
  %

  
	
  Sacramento

  	
   

  	
  4.67

  	
  %

  
	
  San Bernadino

  	
   

  	
  11.02

  	
  %

  
	
  San Diego

  	
   

  	
  9.89

  	
  %

  
	
  San Francisco

  	
   

  	
  4.62

  	
  %

  
	
  San Joaquin

  	
   

  	
  5.51

  	
  %

  
	
  San Luis Obispo

  	
   

  	
  10.66

  	
  %

  
	
  San Mateo

  	
   

  	
  5.61

  	
  %

  
	
  Santa Barbara

  	
   

  	
  10.58

  	
  %

  
	
  Santa Clara

  	
   

  	
  5.24

  	
  %

  
	
  Sierra

  	
   

  	
  0.00

  	
  %

  
	
  Solano

  	
   

  	
  0.00

  	
  %

  
	
  Sonoma

  	
   

  	
  4.70

  	
  %

  
	
  Stanislaus

  	
   

  	
  5.55

  	
  %

  
	
  Sutter

  	
   

  	
  0.00

  	
  %

  
	
  Tulare

  	
   

  	
  4.25

  	
  %

  
	
  Ventura

  	
   

  	
  11.25

  	
  %

  
	
  Yolo

  	
   

  	
  4.71

  	
  %

  
	
  Yuba

  	
   

  	
  0.00

  	
  %

  






 


76

















 


ADDENDUM C.3


DIVISION
OF FINANCIAL RESPONSIBILITY


MATRIX
OF HMO AND PPG CAPITATED SERVICES


MEDICARE
BENEFIT PROGRAM


 


The following matrix outlines the division of financial responsibility
between FHS, PPG and Hospital. The matrix is intended only as a summary guide.
The applicable Subscriber’s Certificate should be consulted for an accurate and
complete description of Covered Services and the Provider Operations Manual for
clarification.


 


MATRIX
EFFECTIVE 1/1/98


	
   

  
	
   

  	
   

  	
  PPG CAPITATED

  SERVICES

  	
   

  	
  HMO RISK

  SERVICES

  	
   

  	
  SHARED RISK/HOSPITAL

  CAPITATED SERVICES

  
	
  AIDS - Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  AIDS - Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  AIDS - Drugs

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  ALLERGY
  IMMUNOTHERAPY

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  ALLERGY
  TESTING

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  ALPHA-FETOPROTEIN

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  AMBULANCE

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  In Area (30 Mile Radius)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  Out-of-Area

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  ANESTHESIOLOGY

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  BIOFEEDBACK

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  BLOOD/BLOOD PRODUCTS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  Blood Bank

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  Autologous/Homologous

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  Storage and Collection of Blood

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  CHEMICAL
  DEPENDENCY

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Inpatient Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Inpatient Professional
  Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Outpatient Facility
  Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Outpatient Professional
  Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  CHEMOTHERAPY

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Drugs, including Epogen, Napugen and
  adjunctive therapies

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  CHIROPRACTIC
  (Medicare Approved)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  COLOSTOMY
  SUPPLIES

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  CONSULTATIONS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  COSMETIC SURGERY

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  (Medically Necessary)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  CRITICAL
  CARE VISITS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  DENTAL
  SERVICES

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  (When a covered benefit)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  













*** All references to the division of financial
responsibility have been deleted.


 


77

















 


	
   

  	
   

  	
  PPG CAPITATED

  SERVICES

  	
   

  	
  HMO RISK

  SERVICES

  	
   

  	
  SHARED

  RISK/HOSPITAL

  CAPITATED

  SERVICES

  
	
  DIAGNOSTIC TESTING - Outpatient

  Facility & Professional

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  DURABLE
  MEDICAL EQUIPMENT

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Outpatient

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Surgically Implanted

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  EMERGENCY
  ADMISSIONS – In-Area

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  EMERGENCY
  ADMISSIONS -
  Out-of-Area

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  EMERGENCY
  ROOM VISITS -
  In-Area

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  EMERGENCY
  ROOM VISITS –
  Out-of-Area

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  EXTENDED
  CARE/SKILLED

  NURSING FACILITY

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  GROWTH
  HORMONES

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  HEARING
  AIDS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  HEMODIALYSIS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Epogen, Nupogen

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  HEPATITIS-B

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  HOME
  HEALTH

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  HOME
  VISITS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  HOSPICE

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  HOSPITAL
  BASED PHYSICIANS –

  Inpatient, Ambulatory Surgery or Emergency Room

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Technical Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  IMMUNIZATIONS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
   

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  INFANT
  APNEA MONITOR

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  INJECTIBLES,
  SELF ADMINISTERED

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  













*** All references to the division of financial
responsibility have been deleted.


 


78

















 


	
   

  	
   

  	
  PPG CAPITATED

  SERVICES

  	
   

  	
  HMO RISK

  SERVICES

  	
   

  	
  SHARED

  RISK/HOSPITAL

  CAPITATED

  SERVICES

  
	
  INPATIENT
  VISITS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  IVF & GIFT

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  LITHOTRIPSY

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  MATERNITY - Deliveries and Non-Deliveries

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  MEDICAL
  ADMISSIONS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  MENTAL
  HEALTH - Inpatient

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  MENTAL
  HEALTH - Outpatient

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  OFFICE
  VISITS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  PATIENT
  EDUCATION

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  PATHOLOGY - Inpatient, Ambulatory

  Surgery or Emergency Room

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Technical Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  PATHOLOGY - Office

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  PATHOLOGY - Outpatient

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Technical Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  PERIODIC
  EXAMS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  PRE
  ADMISSION -
  Outpatient

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  Laboratory, X-ray

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  (within 72 hrs. or related
  admission)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  PROSTHETIC/ORTHOTIC
  DEVICES

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Outpatient

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Surgically Implanted

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  RADIOLOGY - Inpatient, Ambulatory

  Surgery or Emergency Room

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Technical Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  RADIOLOGY - Office

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  RADIOLOGY - Outpatient

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Technical Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  SPEECH AND
  HEARING EXAMS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  













*** All references to the division of financial
responsibility have been deleted.


 


79

















 


	
   

  	
   

  	
  PPG CAPITATED

  SERVICES

  	
   

  	
  HMO RISK

  SERVICES

  	
   

  	
  SHARED

  RISK/HOSPITAL

  CAPITATED

  SERVICES

  
	
  SUPPLIES- Medical, Surgical, Office

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Related to an Outpatient
  Office Visit:

    Splints, Casts, Bandages, etc...

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Related to a Hospital
  Stay:

    Surgical Supplies, Equipment, etc..

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  SUPPLIES, DIABETIC

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  Chem.
  Strips, Lancet, Needles, Syringes

  Glucometer

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  SURGERY - Inpatient

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  SURGERY- Office

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  SURGERY - Outpatient

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  THERAPEUTIC
  INJECTIONS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  THERAPY: Physical,
  Occupational,

  Speech

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Inpatient

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Outpatient/Office

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  TRANSPLANTS (Non-experimental)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional Component

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Organ Procurement

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Covered Immunosupressives

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  TRANSPLANT
  EVALUATIONS

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Professional

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Facility

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  URGENT
  CARE VISITS –
  In-Area

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  URGENT
  CARE VISITS –
  Out-of-Area

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  VISION
  CARE

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Exams and Medically
  Necessary Care

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Implanted Lenses
  (Cataract Surgery)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  • Lenses and Frames
  (Non-Cataract)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  













*** All references to the division of financial
responsibility have been deleted.


 


80

















 


ADDENDUM D


 


PREFERRED
PROVIDER ORGANIZATION (PPO)


EXCLUSIVE
PROVIDER ORGANIZATION (EPO)


POINT OF
SERVICE (POS)


 


BENEFIT
PROGRAMS


 


PPG understands that Affiliates or Payors contracted with FHS who are
qualified may provide PPO, EPO and POS Benefit Programs. FHS shall provide PPG
with a listing of all such Payors, as updated from time to time by FHS.
Notwithstanding any provision in this Agreement, PPG and Member Physicians
understand and agree that each Payor is solely responsible for paying PPG
and/or Member Physicians for those individuals to whom Payor provides health
care coverage. In no event shall FHS or any FHS Affiliate be responsible for
any payment which is the financial responsibility of a Payor and PPG shall seek
compensation for such services only from Pursuant to Section 8.18, Entire
Agreement, PPG understands and agrees that the compensation and provisions
under the agreement between PPG and the entity formerly known as Foundation
Health, a California Health Plan, is applicable to those PPO, EPO and POS
Members with Foundation Health Identification Cards and such agreement shall
remain in full force and effect for those PPO, EPO and POS Members. PPG shall
be compensated according to this Addendum D and this Addendum shall be
applicable to those PPO, EPO and POS Members with Health Net or other FHS
Affiliate Identification Cards.


 


A.            BENEFIT PROGRAM REQUIREMENTS


 


PPG agrees:


 


1.             That
all Member Physicians will comply with the terms and conditions of this Addendum,
the terms of the applicable Benefit Programs, and of the Operations Manual.


 


2.             To
comply with FHS efforts to provide Case Management. PPG agrees to provide PPG’s
written treatment plan within five (5) working days of receipt of request from
FHS. A treatment plan includes a statement of diagnosis, current patient
condition, current or proposed treatment, and anticipated outcomes.


 


3.             That
if PPG admits or arranges for an inpatient admission to a non-Participating
Provider or facility for an elective procedure, PPG shall document that PPG has
given such Member prior notice of the following:


 


a)             Provider or facility is
non-participating;


 


b)            The non-Participating Provider or
facility will not be restricted to seeking payment only from FHS; and


 


c)             The non-Participating provider or
facility may bill the Member for amounts other than deductibles, Copayments,
and medical services not covered under the Member’s Coverage Certificate.


 


4.             That
PPG may appeal a Utilization/Care Management decision as set forth in the
Operations Manual.


 


5.             FHS
agrees that any determination under the Utilization/Care Management Program
that a Member’s services rendered by PPG were not Medically Necessary shall not
retroactively affect PPG’s right to payment hereunder if such services were
authorized by FHS prior to admission and the information provided by PPG to FHS
regarding the Member’s medical condition was substantially true and accurate.


 


81

















 


B.            PPO AND EPO BENEFIT PROGRAMS


 


1.             Compensation Method.  As
compensation for rendering Contracted Services under this Addendum D, PPG shall
be paid in accordance with the rates set forth in Addendum E. Such compensation
shall be paid within the time and subject to the billing requirements set forth
in this Agreement. The above notwithstanding, for self-insured and other such
Payors, FHS shall not be obligated to pay all or any portion of any PPG claim
on a Payor’s behalf unless and until FHS has received sufficient funds from the
applicable Payor to cover such claim. In the event such Payor fails to provide
funds to FHS, PPG may seek payment from Member up to the rates specified in
Addendum E, unless prohibited by applicable law.


 


In the event that a PPG Participating
Physician enters into an independent contract arrangement with FHS for PPO
services, the rates established in such independent Physician Service Agreement
shall prevail, and claims will be adjudicated according to the fee schedule
established in said independent Agreement.


 


C.            POINT OF SERVICE BENEFIT PROGRAMS


 


1.             Benefit Program Design. 
Under a Point of Service Benefit Program, Members may elect, at the time
of obtaining each Covered Service, to utilize either:  (1) HMO coverage through their selected or assigned PCP; (2)
optional Preferred Provider Organization (“PPO”) coverage available through PPO
Participating Providers; or (3) other indemnity coverage through either
non-Participating Providers, or Participating Providers where other Benefit
Program Requirements are not met.


 


2.             Compensation Method.  PPG
shall render Contracted Services on a fee-for-service basis to Members of FHS’
Point of Service Benefit Programs covered under the PPO option of such Benefit
Programs. As compensation for rendering such Contracted Services, PPG shall be
paid the fee-for-service compensation rates set forth in Addendum E. Such
compensation shall be paid within the time and subject to the billing
requirements set forth in this Agreement.


 


82

















 


ADDENDUM E


 


FEE
-FOR-SERVICE COMPENSATION SCHEDULE


 


PPG or Member Physician shall
be compensated for non-capitated Contracted Services, less applicable
Copayments, in an amount equal to the lesser of: (a) ninety percent (90%)  of the Medicare allowable charges based
on the Medicare Resource Based Relative Value Scale (RBRVS) unit values and
HCFA Geographical Practice Cost Indices as published in the most current
published edition of the Federal Register; (b) *** of PPG’s allowable billed
charges; or (c) such other fee schedules as may be established or adopted from
time to time by FHS.


 


For
“by report” procedures, procedures not listed, or procedures with relativities
not established in RBRVS, PPG shall be compensated at *** of PPG or the
Participating Provider’s billed charges, less any applicable Copayment.


 


Anesthesiology
Services:


PPG or Participating Provider shall be
compensated for Contracted Services at (a) *** per unit value in the American
Society of Anesthesiology Relative Value study or (b) *** of the Participating
Provider’s billed charges, whichever is less.


 


Assistant
Surgeons:


PG
or Participating Provider shall be compensated for Contracted Services at ***
of the surgeon’s reimbursement as determined above.


 


Total
Obstetrical Care:   (for
HMO Benefit Programs)


 


	
  Total OB care, vaginal
  delivery

  	
   

  	
  $*** global rate

  
	
  Total OB care, Cesarean
  delivery

  	
   

  	
  $*** global rate

  



 


Services included in global
reimbursement (professional and technical component) for total OB care:


 


	
  Total
  OB care, vaginal delivery

  	
   

  	
  ***
  global rate

  
	
  Total OB care, Cesarean delivery

  	
   

  	
  $*** global rate

  



 


Services included in global
reimbursement for total OB care:


office
visits (sick care as well as routine)


consultations
including initial OB consultation


emergency
department visits


therapeutic
injections


amniocentesis


fetal
contraction stress test


fetal
non-stress test


fetal
monitoring, including initiation or supervision


version


delivery
of placenta


ultrasound


laboratory
tests


venipuncture


specimen
collection and laboratory supplies


educational
materials/nutritional counseling


OB
standby


other
services which do not warrant extra charge: delivery of twins/multiple births,
physician’s


supervision
of home care, hospitalization during pregnancy for conditions such as
pre-clempsia,


HTN


 


83

















 


Antepartum
care only:


 


	
  First trimester only

  	
  $ ***

  
	
  Second trimester only

  	
  $ ***

  
	
  First and second trimester
  only

  	
  $ ***

  
	
  Third trimester excluding
  delivery

  	
  $ ***

  
	
  Third trimester including
  delivery

  	
  $ ***

  



 


 


CONFIDENTIAL,
PROPRIETARY AND TRADE SECRET


 


84

















 


ADDENDUM F


 


MEDI-CAL
BENEFIT PROGRAM


 


 


(NOT APPLICABLE)


 


85

















 


ADDENDUM F.1


 


FEE-FOR-SERVICE
COMPENSATION SCHEDULE


 


ASSIGNED
AND UNASSIGNED MEDI-CAL HMO MEMBERS


 


 


(NOT APPLICABLE)


 


86

















 


ADDENDUM F.2


 


CAPITATION
COMPENSATION SCHEDULE


 


 


(NOT
APPLICABLE)


 


87

















 


ADDENDUM F.3


 


SHARED
RISK PROGRAM DISTRIBUTION MATRIX


 


 


(NOT APPLICABLE)


 


88

















 


ADDENDUM F.4


DIVISION
OF FINANCIAL RESPONSIBILITY


MATRIX
OF FHS AND PPG RISK SERVICES


MEDI-CAL
BENEFIT PROGRAM


 


 


(NOT
APPLICABLE)


 


89

















 


ADDENDUM F.5


 


DISCLOSURE
FORM


 


 


(NOT APPLICABLE)


 


90

















 


ADDENDUM G


 


CHAMPUS/TRICARE
AND OTHER GOVERNMENT BENEFIT PROGRAMS


 


PPG understands and agrees
that the obligations of FHS set forth in this Addendum are the obligations of
Foundation Health Federal Service Inc., an Affiliate of FHS (“FHFS”), and not
obligations of FHS, or any other Affiliate of FHS. FHFS may contract with the
United States Department of Defense (“DoD”) to arrange for the provision of
health and administrative services to certain Members of the Civilian Health
and Medical Program of the Uniformed Services (“CHAMPUS), and may contract with
other local, Stale or federal agencies to arrange for the provision of health,
administrative and certain other services to the Beneficiaries of other local,
State and/or federal programs.


 


A.            CHAMPUS/TRICARE DEFINITIONS.
PROGRAMS AND REGULATIONS


 


1.             Member (Beneficiary).  A
person who is eligible to receive Covered Services under the FHFS Benefit
Program included in this Addendum, including a newborn baby who is a dependent
of Member during the first 120 days following the baby’s birth and/or 120 days
following legal adoption,


 


2.             Copayment and Cost Shares.  That
portion of the cost of Covered Services that a Member is obligated to pay under
a particular Benefit Program, including a deductible and co-insurance. A
Copayment is a fixed dollar amount. A Cost Share is a percentage of the
applicable Participating Provider contract rate. FHFS will advise Participating
Providers of the amounts or methods by which Copayments and/or Cost Shares may
be determined and/or as outlined in the TRICARE Network Provider Manual.


 


3.             Primary Care Manager (PCM), is a TRICARE Prime military/civilian network
PPG or network clinic site, or clinic site at a Military Treatment Facility
(MTF) whose primary responsibility is to coordinate and manage the delivery of
Covered Services to Members selected or assigned to such PPG.


 


4.             Supplemental Care.  FHFS
will work with MTF (Military Treatment Facility) Commanders to define
Supplemental Care needs and to extend CHAMPUS/TRICARE contract rates to the
MTF’s for those services.


 


B.            CHAMPUS/TRICARE PROGRAMS AND
REGULATIONS


 


1.             CHAMPUS/TRICARE Programs. 
CHAMPUS/TRICARE Programs are those services and benefits which require
the use of the services of a contracted medical provider network and are
purchased by the United States Government through the authorized agency
pursuant to Chapter 55 of Title 10 of the United States Code and the
regulations promulgated thereunder.


 


2.             CHAMPUS/TRICARE Regulations.  FHFS
is obligated to comply with all applicable CHAMPUS/TRICARE regulations,
operations manuals, Automated Data Processing manuals, policy manuals and the
prime contract technical proposals, and with the American Disabilities
Act.  These document provide a
comprehensive description of the applicable CHAMPUS/TRICARE program benefits
and operational requirements.  The
parties to this Addendum acknowledge that all services rendered by PPG
hereunder are governed by such requirements. 
FHFS shall provide PPG with all information regarding such requirements
as necessary for proper compliance.


 


3.             CHAMPUS/TRICARE Term.  Term
of this Agreement will remain in effect as defined in Section 6.1, unless the
term of Foundation Health Federal Services’ prime contract expires or is
pursuant to termination by the Government of Foundation Health Federal
Services’ prime contract to provide health services.


 


91

















 


C.            OTHER GOVERNMENTAL PROGRAMS.  FHFS may contract with local,
State or federal entities to provide medical delivery programs such as
universal health care programs, or other Benefit Programs for which FHFS has
contracted with a Payor to provide Participating Provider networks, or certain
Covered Services.  PPG shall render
Contracted Services covered under such other governmental benefit programs, and
shall bill and accept payment from FHFS or a Payor as payment in full for such
services, except for applicable Copayments as set forth in this Addendum.


 


D.            PROVIDER OBLIGATIONS


 


1.             Contracted Services.  PPG
shall provide Covered Services to Members of CHAMPUS/TRICARE, CHAMPUS/TRICARE
Supplemental Care in accordance with the terms and conditions of those
programs. PPG shall be solely responsible for the quality of Covered Services
rendered by PPG to Members. PPG must be contracted and accept assignment for
both CHAMPUS/TRICARE and Medicare as Participating Providers in order to render
services to CHAMPUS/TRICARE Members. FHFS shall provide PPG with the Benefit
Program Requirements of the CHAMPUS/TRICARE, and CHAMPUS/TRICARE Supplement.
Such Benefit Program Requirements may include Utilization Care Management
Program and Quality Improvement Program requirements with which PPG shall
comply in rendering Covered Services under this Agreement. PPG and/or office
staff is obligated to attend a PPG seminar and/or agree to have read the
TRICARE Network Provider Manual prior to rendering Covered Services under this
Agreement. Participating Providers shall monitor the accessibility of care to
Enrollees, and adhere to the following standards: a) office wait times for
non-emergencies shall not exceed 30 minutes; b) wait times for appointments
shall not exceed 4 weeks for well visits, 1 week for routine visits, nor 1 day
for acute illness.  Participating
Providers shall comply with the FHFS’ reasonable efforts to monitor and
evaluate same.


 


2.             Specialty Providers.  FHFS
requires all specialty providers to request a CHAMPUS/TRICARE Prime Member to
sign a release of medical information at each visit, to include ancillary
services associated with each visit whereby the PCM and/or the MTF Commanders
are designated as the recipients of the medical records. Specialty providers
are required to submit the medical records to the PCM and/or MTF Commander
within 14 days for all routine referrals.


 


3.             Eligibility. 
Except in an Emergency, PPG shall verify the eligibility of Members
before providing Covered Services. FHFS shall make a good faith effort to
confirm the eligibility of any Member when such is in question.  Eligibility of all CHAMPUS/TRICARE and other
governmental program Members may be verified by the designated agent of such
program (e.g., Defense Enrollment Eligibility Reporting System). However, if
the designated agent initially indicates that a patient is a Member under the
applicable CHAMPUS/TRICARE or other governmental program, and that patient is
later determined to be ineligible at the time of service, then FHFS shall deny
any claims for payment due to non-eligibility, and PPG may seek compensation
from the patient or the patient’s other health insurance coverage.


 


4.             Access Requirements.  When
required by a particular CHAMPUS/TRICARE program, PPG understands that the
Military Treatment Facility (MTF) is the first resource for health care for
CHAMPUS/TRICARE Members, and that Members gain access to the civilian
CHAMPUS/TRICARE provider network only through referral of the Health Care
Finder Program, or a Member’s Primary Care Manager (“PCM”), in coordination
with the Health Care Finder (HCF) Program. 
PPG agrees to provide services to CHAMPUS/TRICARE Members for
non-emergency services only after obtaining appropriate Referral by Member’s
PCM, and/or prior authorization through the HCF Program.


 


5.             Benefit Program Phase-Out.  PPG
agrees to use its best efforts to submit all CHAMPUS/TRICARE claims within 30
days from date of service or discharge during the Phase-out period of a DoD
prime contract.


 


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6.             Active Duty Personnel.  When
required under a DoD prime Contract, PPG shall render Covered Services to
United States military active duty personnel and seek compensation from the
appropriate service organization at the same rates as provided in this
Addendum.  If the Active Duty Service
Member is enrolled in TRICARE Prime under the Geographic Separate Unit (GSU)
Program Provider shall seek compensation from FHFS


 


7.             CHAMPUS/TRICARE Quality and
Utilization Review Programs.  PPG agrees to comply with all
provisions of the CHAMPUS/TRICARE Quality and Utilization Review programs,
including the provision of medical records and other documentation for cases
being reviewed by FHFS or another CHAMPUS/TRICARE contractor in compliance with
these programs.  PPG further authorizes
such CHAMPUS/TRICARE National Quality Monitoring Contractors to release all
review data obtained through medical record and other document audit to FHFS.
(Per TRICARE Network Provider Manual, approved by DoD.)


 


8.             Prior Authorization and
Referrals.  Unless a particular Benefit Program or
Utilization/Care Management Program contains no such requirement, and except in
an Emergency, PPG agrees not to seek payment from FHFS or a Payor for Covered
Services rendered to a Member unless Prior Authorization or a Referral was
obtained for the rendering of such services. Such Prior Authorization or
Referral may be issued by FHFS, or the applicable Payor. If Prior Authorization
or a Referral cannot be obtained, PPG agrees to notify FHFS or the applicable
Payor and the appropriate Participating Provider, as applicable, as soon as
possible, but no later than twenty-four (24) hours after providing the Covered
Services, or ordering the other Covered Services, or on the next working day.
(See TRICARE Network Provider Manual.)


 


9.             Conditions for Reimbursement for
Non-Covered Services.  Neither a Member nor FHFS, nor any Payor
shall be liable to pay PPG for any Contracted Services rendered by PPG to a
Member which is determined under a Utilization/Care Management Program not to
be Medically Necessary.  Provided,
however, PPG may bill a Member for non-Covered Services rendered by PPG to such
Member only if the Member is notified in advance that the services to be
provided are not Covered Services under the Member’s Benefit Program and the
Member requests in writing that PPG render the non-Covered Services prior to
the rendition of such services.


 


10.          Coordination of Benefit. 
Notwithstanding any other provision of this Agreement, PPG agrees to
conduct Coordination of Benefits in accordance with the policies and procedures
established by FHFS or a Payor for the applicable Benefit Program, PPG shall
not bill Member for any portion of Covered Services not paid by the primary carrier
when FHFS or a Payor is the secondary carrier, but shall instead seek
compensation from FHFS or Payor for such service. When a Member has coverage
which is primary through another carrier, then FHFS’ or a Payer’s compensation
to PPG shall be limited to the difference between the amount paid by the
primary carrier and the contract rates, including Copayments and cost shares.


 


11.          Name or Logo.  In
no event shall PPG market or advertise the CHAMPUS/TRICARE Program or other
governmental programs without the prior written consent of FHFS.


 


E.            CHAMPUS PRIME AND EXTRA BENEFIT
PROGRAMS AND COMPENSATION


 


1.             Fee-for-Service Contracted
Services.  PPG shall render Contracted Services to
Members of CHAMPUS/TRICARE Programs, including the TRICARE Prime and TRICARE
Extra Programs and shall accept as payment in full, the lesser of: a negotiated
percentage of CMAC (CHAMPUS Maximum Allowable Charges, not to exceed 100% of
such charges), or the rates set forth in this Addendum G for Covered Services
and all other services (including payment for any and all sales, use or other
applicable taxes on the sale or delivery of medical services) rendered under
this Agreement to Members, less Copayment or Cost Share amounts payable by
Members in accordance with the Benefit Program. Such compensation shall be paid
within 30 working days of receipt by FHFS of a complete and accurate claim for
Contracted Services rendered to a Member in accordance with the provisions of
this Agreement. In the case where preauthorization is required, but not
obtained prior to services


 


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being rendered, the claim
will be denied.


 


2              Compensation.  Compensation to PPG for the delivery of
Medically Necessary Covered Contracted Services will be the lesser of *** of
the CHAMPUS Maximum Allowable Charges or *** of billed charges for those
services which have a defined Allowable. 
If there is no CMAC reimbursement defined for a procedure code,
reimbursement will be at the lesser of *** of billed charges or *** of the
CHAMPUS area prevailing rates.  Services
for which a procedure code has not been assigned, or are unvalued by
CHAMPUS/TRICARE, compensation will be the lesser of Average Wholesale Price
minus *** or *** of billed charges.


 


3.             Recoupment.  In accordance with Section 4.3 (d) of this
Agreement, FHFS shall have the right to conduct recoupments from PPG for
amounts owed to FHFS per the CHAMPUS Operations Manual.


 


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ADDENDUM H


 


OCCUPATIONALLY
ILL/INJURED OR WORKERS’ COMPENSATION BENEFIT


PROGRAMS


 


 


FHS shall contract with
Payors, which may include Affiliates of FHS, to provide Occupationally
Ill/Injured or Workers’ Compensation Benefit Programs for Members for work related
injuries and diseases compensable under State Occupationally Ill/Injured or
Workers’ Compensation law. PPG shall render Contracted Services to Members for
occupational illnesses and injuries covered such Benefit Programs. FHS shall
provide PPG with a listing of all such Payors, as updated from time to time by
FHS, including those Payors for whom FHS serves only in an administrative
capacity. The listing shall include the Payors’ utilization management
administrator and claims administrator when such is not FHS.


 


A.            COMPENSATION.


 


1.             Billing and Payment.  As
compensation for the delivery of Contracted Services, limited as described
above, PPG shall be paid in accordance with the rates set forth below. Such
compensation shall be paid within the time and subject to the billing
requirements set forth in Section 3.2 of the Agreement.  The above notwithstanding, for self-insured
and other such Payors, FHS shall not be obligated to pay all or any portion of
any PPG claim, as allowed by applicable law, unless and until FHS has received
sufficient funds from the applicable Payor to cover such claim.  Physician claims shall be coded and
submitted according to the Official California Workers’ Compensation Medical
Fee Schedule (Fee Schedule).


 


2.             Rates. 
Reimbursements under the Agreement shall be the lessor of:   (a) the physician’s usual and customary
charges (“UCR”); (b) *** of the Fee Schedule adopted by the State of California
department of Industrial Relations, Division of Workers’ Compensation; or  (c) 
the allowable charge based on the Medicare Resource Based Relative Value
Scale (RBRVS) unit values and HCFA Geographical Practice Cost Indices.


 


“By
report” procedures, unlisted procedures and relativities not established in
RBRVS shall be subject to FHS’ review and based upon relative complexity shall
be assigned a unit value and subsequently reimbursed in accordance with the
HCFA Cost Indices. If a unit value cannot be reasonably determined,
reimbursement shall be at 60% of billed charges.


 


B.           OTHER DUTIES


 


1.             Requirement for Eligibility
Verification and Service Authorization.  The
applicable Occupationally Ill/Injured or Workers’ Compensation Utilization/Care
Improvement Programs may require PPG to: (a) verify Member eligibility to
receive Contracted Services; (b) verify that the Member’s injury or disease has
been determined to “arise out of and in the course of employment”; (c)
determine the requested treatment is Medically Necessary to cure and relieve
the work-related condition; and (d) obtain a referral or prior authorization to
provide Contracted Services prior to rendering such services.  PPG agrees to comply with all
requirements.  FHS shall advise PPG of
all applicable Utilization/Care Improvement Program requirements.


 


2.             Reports.  PPG
agrees to furnish, upon request, all information reasonably required by FHS or
a Payor to verify and provide written substantiation of the provision of
Contracted Services, and the charges for such services.


 


3.             Return to Work.  In
addition to Contracted Services, and without further compensation from FHS or a
Payor, PPG shall work with FHS and each Payor to develop a return-to work
program for each Member.


 


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ADDENDUM H.1


 


OCCUPATIONALLY
ILL/INJURED OR WORKERS’ COMPENSATION RATE SCHEDULE


 


Physician
claims shall be coded and submitted according to the Official California
Workers’ Compensation Medical Fee Schedule (Fee Schedule). Reimbursements under
the Agreement shall be the lesser of: (a) the physician’s usual and customary
charges (“UCR”); (b) *** Schedule adopted by the State of California Department
of Industrial Relations, Division of Workers’ Compensation; or (c) the
allowable charges based on the Medicare Resource Based Relative Value Scale
(RBRVS) unit values and HCFA Geographical Practice Cost Indices as published in
the most current published edition of the Federal Register.


 


HCFA Has not developed a geographically adjusted fee schedule for
anesthesiology. Anesthesiology is reimbursed based upon CPT-4 codes. FHS is following
HCFA guidelines for Anesthesiology (American Society of Anesthesiologists (ASA)
guidelines). The HCFA conversion factor will be multiplied by an adjustment
factor to equate reimbursement to *** per unit.


 


For
“by report” procedures, procedures not listed, or procedures with relativities
established in RBRVS, PPG will be compensated at sixty percent (60%) of PPG’s
billed charges not to exceed usual, reasonable, and customary charges, less any
applicable Copayment. Usual, reasonable, and customary means the usual charge
made by a physician or supplier of services, medicines, or supplies and will
not exceed the general level of charges made by others rendering or furnishing
such services, medicines, or supplies within an area in which the charge is incurred
for sickness or injuries comparable in severity and nature to the sickness or
injury being treated. The term “area” as it would apply to any particular
service, medicine or supply means a county or such greater areas as is
necessary to obtain a representative cross section of level of charges.


 


Unlisted
procedures shall be subject to FHS' review and, based upon relative complexity,
shall be assigned a unit value and subsequently reimbursed in accordance with
the above conversion factors.  RBRVS is
updated and modified from time to time.


 


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