SUBJECT:

UCSD Senior Health Plan Enrolls Its 1000th Member -- Direct Access to UCSD Specialists is Key Factor to Success

The UCSD Senior Health Plan, which enrolled its first members last July, has
been receiving tremendously positive feedback from the community. The plan
recently enrolled its 1000th member, making it one of the fastest growing
new senior health plans to launch in the San Diego area. Many members have
learned about the plan through referrals from UCSD employees.

According to Pam Bylen, Director, Marketing & Sales for UCSD Healthcare,
favorable comments from the community about the plan include its
comprehensive benefit package, $0 monthly plan premium, and the ability to
directly access many UCSD Healthcare specialists without having to first
obtain a primary care physician referral. "Many Medicare beneficiaries are
forced to pay high monthly premiums for a Medicare supplement plan so that
they can receive more benefits than Medicare alone offers, and so that they
can be assured access to the highest quality medical providers," she said.
"The UCSD Senior Health Plan offers more benefits than Medicare, with the
high-quality medical care of UCSD Healthcare, no monthly plan premium and no
outside insurance company involvement. It is truly the best of all worlds."

The UCSD Senior Health Plan is launching a campaign that includes direct
mail, newspaper, and radio, as well as direct calls to a list of Medicare
beneficiaries in the plan's service area. And, perhaps most importantly,
plan representatives are asking for the support of all UCSD faculty, staff
and physicians to help spread the word about this unique plan.

Anyone who is interested in learning more about the plan can call
1-800-337-0122. The plan is offering two free Padre tickets to anyone who
refers an eligible Medicare beneficiary to the plan. (The referral must
result in an in-home appointment with a UCSD Senior Health Plan sales
representative.) This promotion is good through May 30, 1999.

The UCSD Senior Health Plan was designed by the physicians and staff of UCSD
Healthcare. Through a unique arrangement with the Health Care Financing
Administration (otherwise known as HCFA, the government agency that
regulates Medicare), UCSD is able to offer this plan directly to the
Medicare beneficiary without having to go through a third party insurance
company. This has proven to be another key contributor to the plan's
success, as consumers grow increasingly concerned about the involvement of
insurance company administrators in making health care decisions. Moreover,
as part of UCSD Healthcare, the plan is non-profit, which means all dollars
are reinvested into the care of its members.

The UCSD Senior Health Plan covers everything that Medicare does, plus more.
Some of the benefits include:

- Primary Care Physician office visits with $0 copay

- Specialist visits for only $10 copay, including self-referred visits to
Direct Access specialists

- X-rays including annual mammogram

- Hearing exams ($10 copay) and annual exam for eyeglasses

- 100% hospitalization coverage

- Worldwide emergency services with just a $20 copay (waived if admitted to
the hospital)

- Surgical services

- Kidney dialysis

- Durable medical equipment and supplies

- Prescription drug coverage with $7 copay for generic and $10 copay for
brand (30-day supply). Discounted mail order program also available.

(NOTE: An eligible Medicare beneficiary is someone who resides in the UCSD
Senior Health Plan service area who is entitled to Medicare Part A and
enrolled in Medicare Part B. Medicare beneficiaries with end-stage renal
disease are not eligible to enroll.)

Kent B. Sherwood Chief Executive Officer UCSD Healthcare