73-743r

American Healthcare Trust, Inc. 1999

A Health Maintenance Organization

For changes in benefits see page 23

Serving: Knoxville, Memphis and Nashville areas

Enrollment in this Plan is limited: see page 10 for requirements.

Enrollment code: 4U1 Self only 4U2 Self and family

Visit the OPM website at http:// www. opm. gov/ insure and this Plans website at http:// www. ahct. com

Authorized for distribution by the:

RI 73- 743

United States Office of Personnel Management

For changesin benefitssee page 23.

American Healthcare Trust, Inc.

American Healthcare Trust, Inc. has entered into a contract (CS 2806) with the Office of Personnel Management (OPM) as authorized by the Federal Employees Health Benefits (FEHB) law, to provide a comprehensive medical plan herein called American Healthcare Trust, Inc. or the Plan.

This brochure is the official statement of benefits on which you can rely. A person enrolled in the Plan is entitled to the benefits stated in this brochure. If enrolled for Self and Family, each eligible family member is also entitled to these benefits.

Premiums are negotiated with each plan annually. Benefit changes are effective January 1, 1999, and are shown on page 23 of this brochure.

Table of Contents Page Inspector General Advisory on Fraud ...................................................................................................................... 3

General Information ...................................................................................................................................................... 3

Confidentiality; If you are a new member; If you are hospitalized when you change plans; Your responsibility; Things to keep in mind; Coverage after enrollment ends (Former spouse coverage; Temporary continuation of coverage; Conversion to individual coverage and Certificate of Creditable Coverage)

Facts about this Plan .................................................................................................................................................... 7

Information you have a right to know; Who provides care to Plan members? Role of a primary care doctor; Choosing your doctor; Referrals for specialty care; Authorizations; For new members; Hospital care; Out- of- pocket maximum; Deductible carryover; Submit claims promptly; Other considerations; Experimental/ investigational determinations; The Plans service area

General Limitations .................................................................................................................................................... 10

Important notice; Circumstances beyond Plan control; Other sources of benefits

General Exclusions ...................................................................................................................................................... 12 Benefits............................................................................................................................................................................ 12

Medical and Surgical Benefits; Hospital/ Extended Care Benefits; Emergency Benefits; Mental Conditions/ Substance Abuse Benefits; Prescription Drug Benefits

Other Benefits................................................................................................................................................................ 18

Accidental Injury Benefits; Vision Care

Non- FEHB Benefits ...................................................................................................................................................... 20 How to Obtain Benefits .............................................................................................................................................. 21 How this Plan Changes January 1999 .................................................................................................................... 23 Summary of Benefits.................................................................................................................................................... 27 Rate Information .......................................................................................................................................................... 28

Inspector General Advisory: Stop Health Care Fraud!

Fraud increases the cost of health care for everyone. Anyone who intentionally makes a false statement or a false claim in order to obtain FEHB benefits or increase the amount of FEHB benefits is subject to prosecution for FRAUD. This could result in CRIMINAL PENALTIES. Please review all medical bills, medical records and claims statements carefully. If you find that a provider, such as a doctor, hospital or pharmacy, charged your plan for services you did not receive, billed for the same service twice, or misrepresented any other information, take the following actions:

Call the provider and ask for an explanation - sometimes the problem is a simple error. If the provider does not resolve the matter, or if you remain concerned, call your plan at 888/ 523- 9527 and

explain the situation. If the matter is not resolved after speaking to your plan (and you still suspect fraud has been committed), call

or write:

THE HEALTH CARE FRAUD HOTLINE 202/ 418- 3300

The Office of Personnel Management Office of the Inspector General Fraud Hotline

1900 E Street, N. W., Room 6400 Washington, D. C. 20415

The inappropriate use of membership identification cards, e. g., to obtain services for a person who is not an eligible family member or after you are no longer enrolled in the Plan, is also subject to review by the Inspector General and may result in an adverse administrative action by your agency.

General Information Confidentiality Medical and other information provided to the Plan, including claim files, is kept confidential and will be used only: 1) by the Plan and its subcontractors for internal administration of the Plan, coordination of benefit provisions with other plans, and subrogation

of claims; 2) by law enforcement officials with authority to investigate and prosecute alleged civil or criminal actions; 3) by OPM to review a disputed claim or perform its contract administration functions; 4) by OPM and the General Accounting Office when conducting audits as required by the FEHB law; or 5) for bona fide medical research or education. Medical data that does not identify individual members may be disclosed as a result of the bona fide medical research or education.

If you are a Use this brochure as a guide to coverage and obtaining benefits. There may be a delay before you receive your identification card and member information from the Plan. Until you receive your ID card, you may show your copy of the SF 2809 enrollment form or your annuitant confirmation letter from OPM to a provider or Plan facility as proof of enrollment in this Plan. If you do not receive your ID card within 60 days after the effective date of your enrollment, you should contact the Plan.

If you made your open season change by using Employee Express and have not received your new ID card by the effective date of your enrollment, call the Employee Express HELP number to request a confirmation letter. Use that letter to confirm your new coverage with Plan providers.

If you are a new member of this Plan, benefits and rates begin on the effective date of your enrollment, as set by your employing office or retirement system. As a member of this Plan, once your enrollment is effective, you will be covered only for services provided or arranged by a Plan doctor except in the case of emergency as described on page 16. If you are confined in a hospital on the effective date, you must notify the Plan so that it may arrange for the transfer of your care to Plan providers. See If you are hospitalized on page 4.

If you are a new member

4 FEHB plans may not refuse to provide benefits for any condition you or a covered family

member may have solely on the basis that it was a condition that existed before you enrolled in a plan under the FEHB Program.

If you are If you change plans or options, benefits under your prior plan or option cease on the effective date of your enrollment in your new plan or option, unless you or a covered family member are confined in a hospital or other covered facility or are receiving medical care in an alternative care setting on the last day of your enrollment under the prior plan or option. In that case, the confined person will continue to receive benefits under the former plan or option until the earliest of (1) the day the person is discharged from the hospital or other covered facility (a move to an alternative care setting does not constitute a discharge under this provision), or (2) the day after the day all inpatient benefits have been exhausted under the prior plan or option, or (3) the 92nd day after the last day of coverage under the prior plan or option. However, benefits for other family members under the new plan will begin on the effective date. If your plan terminates participation in the FEHB Program in whole or in part, or if the Associate Director for Retirement and Insurance orders an enrollment change, this continuation of coverage provision does not apply; in such case, the hospitalized family members benefits under the new plan begin on the effective date of enrollment.

It is your responsibility to be informed about your health benefits. Your employing office or retirement system can provide information about: when you may change your enrollment; who family members are; what happens when you transfer, go on leave without pay, enter military service, or retire; when your enrollment terminates; and the next open season for enrollment. Your employing office or retirement system will also make available to you an FEHB Guide, brochures and other materials you need to make an informed decision.

The benefits in this brochure are effective on January 1 for those already enrolled in this Plan; if you changed plans or plan options, see If you are a new member above. In both cases, however, the Plans new rates are effective the first day of the enrollees first full pay period that begins on or after January 1 (January 1 for all annuitants).

Generally, you must be continuously enrolled in the FEHB Program for the last five years before you retire to continue your enrollment for you and any eligible family members after you retire.

The FEHB Program provides Self Only coverage for the enrollee alone or Self and Family coverage for the enrollee, his or her spouse, and unmarried dependent children under age 22. Under certain circumstances, coverage will also be provided under a family enrollment for a disabled child 22 years of age or older who is incapable of self- support.

An enrollee with Self Only coverage who is expecting a baby or the addition of a child may change to a Self and Family enrollment up to 60 days after the birth or addition. The effective date of the enrollment change is the first day of the pay period in which the child was born or became an eligible family member. The enrollee is responsible for his or her share of the Self and Family premium for that time period; both parent and child are covered only for care received from Plan providers, except for emergency benefits.

You will not be informed by your employing office (or your retirement system) or your Plan when a family member loses eligibility.

You must direct questions about enrollment and eligibility, including whether a dependent age 22 or older is eligible for coverage, to your employing office or retirement system. The Plan does not determine eligibility and cannot change an enrollment status without the necessary information from the employing agency or retirement system.

If you are a new member

(continued)

If you are hospitalized General Information (continued)

Your Responsibility

Things to Keep in mind

An employee, annuitant, or family member enrolled in one FEHB plan is not entitled to receive benefits under any other FEHB plan.

Report additions and deletions, including divorces, of covered family members to the Plan promptly.

If you are an annuitant or former spouse with FEHB coverage and you are also covered by Medicare Part B, you may drop your FEHB coverage and enroll in a Medicare prepaid plan when one is available in your area. If you later change your mind and want to reenroll in FEHB, you may do so at the next open season, or whenever you involuntarily lose coverage in the Medicare prepaid plan or move out of the area it serves.

Most Federal annuitants have Medicare Part A. If you do not have Medicare Part A, you may enroll in a Medicare prepaid plan, but you will probably have to pay for hospital coverage in addition to the Part B premium. Before you join the plan, ask whether they will provide hospital benefits and, if so, what you will have to pay.

You may also remain enrolled in this Plan when you join a Medicare prepaid plan.

Contact your local Social Security Administration (SSA) office for information on local Medicare prepaid plans (also known as Coordinated Care Plans or Medicare HMOs) or request it from SSA at 1- 800/ 638- 6833. Contact your retirement system for information on dropping your FEHB enrollment and changing to a Medicare prepaid plan.

Federal annuitants are not required to enroll in Medicare Part B (or Part A) in order to be covered under the FEHB Program nor are their FEHB benefits reduced if they do not have Medicare Part B (or Part A).

When an employees enrollment terminates because of separation from Federal service or when a family member is no longer eligible for coverage under an employee or annuitant enrollment, and the person is not otherwise eligible for FEHB coverage, he or she generally will be eligible for a free 31- day extension of coverage. The employee or family member may also be eligible for one of the following:

When a Federal employee or annuitant divorces, the former spouse may be eligible to elect coverage under the spouse equity law. If you are recently divorced or anticipate divorcing, contact the employees employing office (personnel office) or retirees retirement system to get more facts about electing coverage.

If you are an employee whose enrollment is terminated because you separate from service, you may be eligible to temporarily continue your health benefits coverage under the FEHB Program in any plan for which you are eligible. Ask your employing office for RI 79- 27, which describes TCC, and for RI 70- 5, the FEHB Guide for individuals eligible for TCC. Unless you are separated for gross misconduct, TCC is available to you if you are not otherwise eligible for continued coverage under the Program. For example, you are eligible for TCC when you retire if you are unable to meet the five- year enrollment requirement for continuation of enrollment after retirement.

Your TCC begins after the initial free 31- day extension of coverage ends and continues for up to 18 months after your separation from service (that is, if you use TCC until it expires 18 months following separation, you will only pay for 17 months of coverage). Generally, you must pay the total premium (both the Government and employee shares) plus a 2 percent administrative charge. If you use your TCC until it expires, you are entitled to another free 31- day extension of coverage when you may convert to nongroup coverage. If you cancel your TCC or stop paying premiums, the free 31- day extension of coverage and conversion option are not available.

Children or former spouses who lose eligibility for coverage because they no longer qualify as family members (and who are not eligible for benefits under the FEHB Program as

General Information (continued)

Things to Keep in mind

(continued)

Coverage after enrollment ends

Former spouse coverage

Temporary continuation of coverage (TCC)

6 employees or under the spouse equity law) also may qualify for TCC. They also must pay

the total premium plus the 2 percent administrative charge. TCC for former family members continues for up to 36 months after the qualifying event occurs, for example, the child reaches age 22 or the date of the divorce. This includes the free 31- day extension of coverage. When their TCC ends (except by cancellation or nonpayment of premium), they are entitled to another free 31- day extension of coverage when they may convert to nongroup coverage.

NOTE: If there is a delay in processing the TCC enrollment, the effective date of the enrollment is still the 32nd day after regular coverage ends. The TCC enrollee is responsible for premium payments retroactive to the effective date and coverage may not exceed the 18 or 36 month period noted above.

Separating employees - Within 61 days after an employees enrollment terminates because of separation from service, his or her employing office must notify the employee of the opportunity to elect TCC. The employee has 60 days after separation (or after receiving the notice from the employing office, if later) to elect TCC.

Children - You must notify your employing office or retirement system when a child becomes eligible for TCC within 60 days after the qualifying event occurs, for example, the child reaches age 22 or marries.

Former spouses - You or your former spouse must notify the employing office or retirement system of the former spouses eligibility for TCC within 60 days after the termination of the marriage. A former spouse may also qualify for TCC if, during the 36- month period of TCC eligibility, he or she loses spouse equity eligibility because of remarriage before age 55 or loss of the qualifying court order. This applies even if he or she did not elect TCC while waiting for spouse equity coverage to begin. The former spouse must contact the employing office within 60 days of losing spouse equity eligibility to apply for the remaining months of TCC to which he or she is entitled.

The employing office or retirement system has 14 days after receiving notice from you or the former spouse to notify the child or the former spouse of his or her rights under TCC. If a child wants TCC, he or she must elect it within 60 days after the date of the qualifying event (or after receiving the notice, if later). If a former spouse wants TCC, he or she must elect it within 60 days after any of the following events: the date of the qualifying event or the date he or she receives the notice, whichever is later; or the date he or she loses coverage under the spouse equity law because of remarriage before age 55 or loss of the qualifying court order.

Important: The employing office or retirement system must be notified of a childs or former spouses eligibility for TCC within the 60- day time limit. If the employing office or retirement system is not notified, the opportunity to elect TCC ends 60 days after the qualifying event in the case of a child and 60 days after the change in status in the case of a former spouse.

When none of the above choices are available - or chosen - when coverage as an employee or family member ends, or when TCC coverage ends (except by cancellation or nonpayment of premium), you may be eligible to convert to an individual, nongroup contract. You will not be required to provide evidence of good health and the plan is not permitted to impose a waiting period or limit coverage for preexisting conditions. If you wish to convert to an individual contract, you must apply in writing to the carrier of the plan in which you are enrolled within 31 days after receiving notice of the conversion right from your employing agency. A family member must apply to convert within the 31- day free extension of coverage that follows the event that terminates coverage, e. g., divorce or reaching age 22. Benefits and rates under the individual contract may differ from those under the FEHB Program.

Temporary continuation of coverage (TCC)

(continued)

General Information (continued)

Notification and election requirements

Coverage after enrollment ends

7 Under Federal law, if you lose coverage under the FEHB Program, you should automatically

receive a Certificate of Group Health Plan Coverage from the last FEHB Plan to cover you. This certificate, along with any certificates you receive from other FEHB plans you may have been enrolled in, may reduce or eliminate the length of time a preexisting condition clause can be applied to you by a new non- FEHB insurer. If you do not receive a certificate automatically, you must be given one on request.

Facts about this Plan

This Plan is a comprehensive medical plan, sometimes called a health maintenance organization (HMO). When you enroll in an HMO, you are joining an organized system of health care that arranges in advance with specific doctors, hospitals and other providers to give care to members and pays them directly for their services.

In order to provide members with the advantages of managed health care delivery system, we, or our designee, employ or contract with participating providers to coordinate the provision of covered services. Once you select a primary care doctor, you must seek all medical care from your primary care doctor or have your care coordinated and authorized by your primary care doctor. You will be liable for any and all charges for care received except as set forth in this brochure. Benefits are available only from plan providers except during a medical emergency. Services of a specialty care doctor can only be received by referral from the selected primary care doctor. There are no claim forms when plan doctors are used.

Your decision to join an HMO should be based on your preference for the plans benefits and delivery system, not because a particular provider is in the plans network. You cannot change plans because a provider leaves the HMO.

Because the Plan provides or arranges your care and pays the cost, it seeks efficient and effective delivery of health services. By controlling unnecessary or inappropriate care, it can afford to offer a comprehensive range of benefits. In addition to providing comprehensive health services and benefits for accidents, illness and injury, the Plan emphasizes preventive benefits such as office visits, physicals, immunizations and well- baby care. You are encouraged to get medical attention at the first sign of illness.

All carriers in the FEHB Program must provide certain information to you. If you did not receive information about this Plan, you can obtain it by calling the Carrier at 888/ 523- 9527 or you may write the Carrier at P. O. Box 3371, Memphis, TN 38173- 0371. You may also contact the Carrier by fax at 901/ 527- 2672.

Upon request, the following information is available:

Disenrollment rates for 1997.

Compliance with State and Federal licensing or certification requirements and the dates met.

Accreditations by recognized agencies and the dates received.

Carriers type of corporate form and years in existence.

Whether the carrier meets, State, Federal and accreditation requirements for fiscal solvency, confidentiality and transfer of medical records.

American Healthcare Trust is an Individual Practice Association Model (IPA) which contracts directly with Physician Associations, Medical Groups, Individual Physicians, Hospitals, Pharmacies, and other healthcare providers. All providers are thoroughly credentialed and screened to ensure the highest quality of care available. Medical care is provided through doctors, nurse practitioners, and other skilled medical personnel working as medical teams. Specialists are available as part of the medical teams for consultation and treatment. Plan doctors also arrange for any necessary specialty physician care not directly available from Plan doctors. Other necessary medical services, such as physical therapy and laboratory and X- ray services, are available at Plan medical offices or by referral to specialists. Hospital care is provided through the Plan at several local community hospitals.

Certificate of Creditable Coverage

Information you have a right to know

Who provides care to Plan members?

Facts about this Plan (continued)

By enrolling with the Plan, you choose to have covered services provided by a primary care doctor. A primary care doctor means a participating doctor having a practice primarily limited to general practice, family practice, internal medicine or pediatrics, who is employed by or who has a contract with American Healthcare Trust, Inc. or our designee then in effect. The first and most important decision each member must make is the selection of a primary care doctor. The decision is important since it is through this doctor that all other health services, particularly those of specialists, are obtained. You select a primary care doctor for yourself and your dependents at the time of enrollment or whenever you become eligible for coverage. You may select a different primary care doctor for yourself and each of your dependents. We may assign a primary care doctor if you do not select one, or when the primary care doctor is unable to render services.

It is the responsibility of your primary care doctor to obtain any necessary authorizations from the Plan before referring you to a specialist or making arrangements for hospitalization. Services of other providers are covered only when you have been referred by your primary care doctor, with the following exception: a woman may see her plan obstetrician/ gynecologist for her annual routine examination without a referral.

This Plans provider directory lists primary care doctors, PCPs, (family practitioners, pediatricians and internists), with their locations and phone numbers. Directories are updated and are available at the time of enrollment or upon request by calling the Membership Services Department at 1- 888/ 523- 9527; you may also find out if your doctor participates with this plan by calling this number. If you are interested in receiving care from a specific provider who is listed with the directory, call the provider to verify that he or she still participates with the Plan and is accepting new patients. Important note: When you enroll in this plan, services (except for emergency benefits) are provided through the Plans delivery system; the continued availability and/ or participation of any one doctor, hospital, or other provider cannot be guaranteed.

If you enroll, you will be asked to let the Plan know which primary care doctor( s) youve selected for you and each member of your family by sending a selection form to the Plan If you need help choosing a primary care doctor, call the Plan. Members may change their doctor selection by notifying the Plan. Members may change their primary care doctor no more than two (2) times per year.

If you are receiving services from a doctor who leaves the Plan, the Plan will pay for covered services until the Plan can arrange with you for you to be seen by another participating doctor.

If your primary care doctor believes you need treatment that is a covered service but is not available from your primary care doctor, your primary care doctor will give you a referral to see another participating provider. A valid referral shall:

Be in writing;

Specify the provider to whom referral has been made and the services to be rendered;

Be obtained prior to the provision of the services and/ or supplies by the referral doctor subsequent to the expiration of the referral.

Be valid for a period of thirty (30) days from the date of issue. Coverage shall not be available for services and/ or supplies provided by the referral doctor subsequent to the expiration of the referral.

If a specialist doctor is seen without a referral from your current primary care doctor, you will be liable for any and all charges from that specialist doctor. If you transfer from one primary care doctor to another, any referrals you have must be reviewed immediately and preauthorized by your new primary care doctor.

When you receive a referral from your primary care doctor, you must return to the primary care doctor after the consultation unless your doctor authorizes additional visits.

Role of a primary care doctor?

Choosing your doctor

Referrals for Specialty Care

9 All follow- up care must be provided or authorized by the primary care doctor. Do not go

to the specialist for a second visit unless your primary care doctor has arranged for, and the Plan has issued an authorization for, the referral in advance.

If you have a chronic, complex, or serious medical condition that causes you to see a Plan specialist frequently, your primary care doctor will develop a treatment plan with you and your health plan that allows an adequate number of direct access visits with that specialist. The treatment plan will permit you to visit your specialist without the need to obtain further referrals.

Authorizations The Plan will provide benefits for covered services only when the services are medically necessary to prevent, diagnose or treat your illness or condition. Your Plan doctor must obtain the Plans determination of medical necessity before you may be hospitalized, referred for specialty care or obtain follow- up care from a specialist.

For new members If you are already under the care of a specialist who is a Plan participant, you must still obtain a referral from a Plan primary care doctor for the care to be covered by the Plan. If the doctor who originally referred you to this specialist is now your Plan primary care doctor, you need only call to explain that you are now a Plan member and ask that you be referred for your next appointment.

If you are selecting a new primary care doctor and want to continue with this specialist, you must schedule an appointment so that the primary care doctor can decide whether to treat the condition directly or refer you back to the specialist.

Hospital care If you require hospitalization, your primary care doctor or authorized specialist will make the necessary arrangements and continue to supervise your care.

Out- of- pocket Copayments are required for a few benefits. However, copayments will not be required

maximum for the remainder of the calendar year after your out- of- pocket expenses for services provided or arranged by the Plan reach $500.00 per Self Only enrollment or $1,000 per Self

and Family enrollment. This copayment maximum does not include charges for growth hormone treatment. Copays for preventive health services, doctor and practitioner services, mental health services, substance abuse treatment, and prescription drugs do not accumulate to these out- of- pocket maximums.

You should maintain accurate records of the copayments made, as it is your responsibility to determine when the copayment maximum is reached. You are assured a predictable maximum in out- of- pocket costs for covered health and medical needs. Copayments are due when service is rendered, except for emergency care.

Deductible If you changed to this Plan during open season from a plan with a deductible and the

carryover effective date of the change was after January 1, any expenses that would have applied to that plans deductible will be covered by your old plan if they are for care you got in

January before the effective date of your coverage in this Plan. If you have already met the deductible in full, your old plan will reimburse these covered expenses. If you have not met it in full, your old plan will first apply your covered expenses to satisfy the rest of the deductible and then reimburse you for any additional covered expenses. The old plan will pay these covered expenses according to this years benefits; benefit changes are effective January 1.

Submit claims When you are required to submit a claim to this Plan for covered expenses, submit your

promptly claim promptly. The Plan will not pay benefits for claims submitted later than December 31 of the calendar year following the year in which the expense was incurred unless timely filing was prevented by administrative operations of Government or legal incapacity, provided the claim was submitted as soon as reasonably possible.

Referrals for Specialty Care

(continued)

Facts about this Plan (continued)

Experimental/ The Plan bases its determination of whether or not a treatment, service, or supply is

investigational experimental or investigational in nature, if there is no consensus in the medical comdeterminations munity as to the safety or effectiveness of the technology or the treatment as applied to

the patients medical problem; or there is insufficient evidence to determine its appropriateness in a given situation; or the technology is undergoing clinical trials or is largely confined to research protocols; or the physician or facility rendering the treatment classifies the treatment as experimental or investigational for purposes of obtaining an informed consent.

Other Plan providers will follow generally accepted medical practice in prescribing any course

considerations of treatment. Before you enroll in this Plan, you should determine whether you will be able to accept treatment or procedures that may be recommended by Plan providers.

The Plans Serving: Knoxville, Memphis and Nashville areas

service area The service area for this plan, where Plan providers and facilities are located, is described below. You may enroll in this Plan if you live or work inside the service area or in the geographic area described below:

Service area: Services from Plan providers are available only in the following Plan Service areas:

Tennessee counties of Anderson, Blount, Campbell, Cannon, Cheatham, Claiborne, Davidson, Dickson, Fentress, Franklin, Grainger, Greene, Grundy, Hamblen, Hancock, Hawkins, Jefferson, Knox, Loudon, McMinn, Monroe, Morgan, Roane, Robertson, Rutherford, Scott, Sevier, Shelby, Smith, Sumner, Union, Warren, Williamson and Wilson.

Benefits for care outside the service area are limited to emergency services, as described on page 16.

If you or a covered family member move outside the service area or you no longer work there, you may enroll in another approved plan. It is not necessary to wait until you move or for the open season to make such a change; contact your employing office or retirement system for information if you are anticipating a move.

General Limitations Important notice Although a specific service may be listed as a benefit, it will be covered for you only if, in

the judgment of your Plan doctor, it is medically necessary for the prevention, diagnosis, or treatment of your illness or condition. No oral statement of any person shall modify or otherwise affect the benefits, limitations and exclusions of this brochure, convey or void any coverage, increase or reduce any benefits under this Plan or be used in the prosecution or defense of a claim under this Plan. This brochure is the official statement of benefits on which you can rely.

In the event of major disaster, epidemic, war, riot, civil insurrection, disability of a significant number of Plan providers, complete or partial destruction of facilities, or other circumstances beyond the Plans control, the Plan will make a good faith effort to provide or arrange for covered services. However, the Plan will not be responsible for any delay or failure in providing service due to lack of available facilities or personnel.

This section applies when you or your family members are entitled to benefits from a source other than this Plan. You must disclose information about other sources of benefits to the Plan and complete all necessary documents and authorizations requested by the Plan.

Facts about this Plan (continued)

Circumstances beyond Plan control

Other sources of benefits

Medicare If you or a covered family member is enrolled in this Plan and Medicare Part A and/ or Part B, the Plan will coordinate benefits according to Medicares determination of which coverage is primary. However, this Plan will not cover services, except those for emergencies, unless you use Plan providers. You must tell your Plan that you or your family member is eligible for Medicare. Generally, that is all you will need to do, unless your Plan tells you that you need to file a Medicare claim.

This coordination of benefits (double coverage) provision applies when a person covered by this Plan also has, or is entitled to benefits from, any other group health coverage, or is entitled to the payment of medical and hospital costs under no- fault or other automobile insurance that pays benefits without regard to fault. Information about the other coverage must be disclosed to this Plan.

When there is double coverage for covered benefits, other than emergency services from non- Plan providers, this Plan will continue to provide its benefits in full, but is entitled to receive payment for the services and supplies provided, to the extent that they are covered by the other coverage, no- fault or other automobile insurance or any other primary plan.

One plan normally pays its benefits in full as the primary payer, and the other plan pays a reduced benefit as the secondary payer. When this Plan is the secondary payer, it will pay the lesser of (1) its benefits in full or (2) a reduced amount which, when added to the benefits payable by the other coverage, will not exceed reasonable charges. The determination of which health coverage is primary (pays its benefits first) is made according to guidelines provided by the National Association of Insurance Commissioners. When benefits are payable under automobile insurance, including no- fault, the automobile insurer is primary (pays its benefits first) if it is legally obligated to provide benefits for health care expenses without regard to other health benefits coverage the enrollee may have. This provision applies whether or not a claim is filed under the other coverage. When applicable, authorization must be given this Plan to obtain information about benefits or services available from the other coverage, or to recover overpayments from other coverages.

CHAMPUS If you are covered by both this Plan and the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS), this Plan will pay benefits first. As a member of a prepaid plan, special limitations on your CHAMPUS coverage apply; your primary care provider must authorize all care. See your CHAMPUS Health Benefits Advisor if you have questions about CHAMPUS coverage.

Medicaid If you are covered by both this Plan and Medicaid, this Plan will pay benefits first.

Workers The Plan will not pay for services required as the result of occupational disease or injury

compensation for which any medical benefits are determined by the Office of Workers Compensation Programs (OWCP) to be payable under workers compensation (under section 8103 of title 5, U. S. C.) or by a similar agency under another Federal or State law. This provision also applies when a third party injury settlement or other similar proceeding provides medical benefits in regard to a claim under workers compensation or similar laws. If medical benefits provided under such laws are exhausted, this Plan will be financially responsible for services or supplies that are otherwise covered by this Plan. The Plan is entitled to be reimbursed by OWCP (or the similar agency) for services it provided that were later found to be payable by OWCP (or the agency).

General Limitations (continued)

Group health insurance and automobile insurance

General Limitations (continued)

Facilities of the Department of Veterans Affairs, the Department of Defense, and the Indian Health Service are entitled to seek reimbursement from the Plan for certain services and supplies provided to you or a family member to the extent that reimbursement is required under the Federal statutes governing such facilities.

The Plan will not provide benefits for services and supplies paid for directly or indirectly by any other local, State, or Federal Government agency.

If a covered person is sick or injured as a result of the act or omission of another person or party, the Plan requires that it be reimbursed for the benefits provided in an amount not to exceed the amount of the recovery, or that it be subrogated to the persons rights to the extent of the benefits received under this Plan, including the right to bring suit in the persons name. If you need more information about subrogation, the Plan will provide you with its subrogation procedures.

General Exclusions

All benefits are subject to the limitations and exclusions in this brochure. Although a specific service may be listed as a benefit, it will not be covered for you unless your Plan doctor determines it is medically necessary to prevent, diagnose or treat your illness or condition, and the Plan agrees, as discussed under Authorizations on page 9. The following are excluded:

Care by non- Plan doctors or hospitals except for authorized referrals or emergencies (see Emergency Benefits);

Expenses incurred while not covered by this Plan;

Services furnished or billed by a provider or facility barred from the FEHB Program;

Services not required according to accepted standards of medical, dental, or psychiatric practice;

Procedures, treatments, drugs or devices that are experimental or investigational;

Procedures, services, drugs and supplies related to sex transformations; and

Procedures, services, drugs and supplies related to abortions except when the life of the mother would be endangered if the fetus were carried to term or when the pregnancy is the result of an act of rape or incest.

Medical and Surgical Benefits What is covered A comprehensive range of preventive, diagnostic and treatment services is provided by

Plan doctors and Plan providers. This includes necessary office visits; you pay $8 office visit copay, but no additional copay for laboratory tests and X- rays rendered during office visit. You pay $8 copay per site for laboratory tests and X- ray procedures. Within the service area, house calls will be provided if in the judgement of the Plan doctor, such care is necessary and appropriate; you pay a $8 copay per house call; you pay $10 copay for home visits by nurses and health aids.

The following services are included and are subject to the office visit copay unless stated otherwise:

Preventive care, including well- baby care and periodic check- ups

Mammograms are covered as follows: for women age 35 through age 39, one mammogram during these five years; for women age 40 through 49, one mammogram every one or two years; for women age 50 through 64, one mammogram every year;

DVA facilities, DoD facilities, and Indian Health Service

Other Government agencies

Liability insurance and third party actions

CARE MUST BE RECEIVED FROM OR ARRANGED BY PLAN DOCTORS

13 and for women age 65 and above, one mammogram every two years. In addition to

routine screening, mammograms are covered when prescribed by the doctor as medically necessary to diagnose or treat your illness.

Routine immunizations and boosters Consultations by specialists Diagnostic procedures, such as laboratory tests and X- rays Complete obstetrical (maternity) care for all covered females, including prenatal,

delivery and postnatal care by a Plan doctor. Office visit copays are waived for maternity care. The mother, at her option, may remain in the hospital up to 48 hours after a regular delivery and 96 hours after a caesarean delivery. Inpatient stays will be extended if medically necessary. If enrollment in the Plan is terminated during pregnancy, benefits will not be provided after coverage under the Plan has ended. Ordinary nursery care of the newborn child during the covered portion of the mothers hospital confinement for maternity will be covered under either a Self Only or Self and Family enrollment; other care of an infant who requires definitive treatment will be covered only if the infant is covered under a Self and Family enrollment.

Voluntary sterilization and family planning services; you pay $8 for office visit; you pay $50 copay for outpatient care and outpatient surgery.

Diagnosis and treatment of diseases of the eye Allergy testing and treatment, including testing and treatment materials (such as

allergy serum) The insertion of internal prosthetic devices, such as pacemakers and artificial joints;

you pay $50 copay for durable medical equipment; you pay $50 copay for outpatient care and outpatient surgery; you pay $100 copay for inpatient admission.

Cornea, heart, heart/ lung, single lung, pancreas, pancreas/ kidney, kidney and liver transplants; allogeneic (donor) bone marrow transplants; autologous bone marrow transplants (autologous stem cell and peripheral stem cell support) for the following conditions: acute lymphocytic or non- lymphocytic leukemia, advanced Hodgkins lymphoma, advanced non- Hodgkins lymphoma, advanced neuroblastoma, breast cancer, multiple myeloma, epithelial ovarian cancer, and testicular, mediastinal, retroperitoneal and ovarian germ cell tumors. Transplants are covered when approved by the Medical Director. Related medical and hospital expenses of the donor are covered when the recipient is covered by this Plan. You pay $8 copay for office visit; you pay

$50 copay for outpatient care and outpatient surgery; you pay $100 copay for inpatient care.

Women who undergo mastectomies may, at their option, have this procedure performed on an inpatient basis and remain in the hospital up to 48 hours after the procedure.

Dialysis Chemotherapy, radiation therapy, and inhalation therapy Surgical treatment of morbid obesity Home health services of nurses and health aides, including intravenous fluids and

medications, when prescribed by your Plan doctor, who will periodically review the program for continuing appropriateness and need.

All necessary medical or surgical care in a hospital or extended care facility for Plan doctors and other Plan providers.

Limited Benefits Oral and maxillofacial surgery is provided for nondental surgical and hospitalization procedures for congenital defects, such as cleft lip and cleft palate, and for medical or sur

Medical and Surgical Benefits (continued)

CARE MUST BE RECEIVED FROM OR ARRANGED BY PLAN DOCTORS

14 gical procedures occurring within or adjacent to the oral cavity or sinuses including, but

not limited to, treatment of fractures and excision of tumors and cysts. All other procedures involving the teeth or intra- oral areas surrounding the teeth are not covered, including any dental care involved in the treatment of temporomandibular joint (TMJ) pain dysfunction syndrome.

Reconstructive surgery will be provided to correct a condition resulting from a functional defect or from an injury or surgery that has produced a major effect on the members appearance and if the condition can reasonably be expected to be corrected by such surgery.

Short- term rehabilitative therapy (physical, speech and occupational) is provided on an inpatient or outpatient basis for up to two months per condition if significant improvement can be expected within two months; you pay $8 per outpatient session. You pay a $100 deductible per inpatient admission. Speech therapy is limited to treatment of certain impairments of organic origin. Occupational therapy is limited to services that assist the member to achieve and maintain self- care and improvement functioning in other activities. Disorders of hearing are covered when the care is provided by a licensed audiologist or speech pathologist who is a participating provider with Plan.

Diagnosis and treatment of infertility is covered; you pay $50 copay. The following type of artificial insemination is covered: intravaginal insemination (IVI); cost of donor sperm is not covered. Fertility drugs are not covered under the Prescription Drug Benefit. Other assisted reproductive technology (ART) procedures, such as in vitro fertilization and embryo transfer, are not covered.

Cardiac rehabilitation following a heart transplant, bypass surgery or a myocardial infarction is provided for up to 60 sessions; you pay $8 copay per visit.

Prosthetic devices, such as artificial limbs up to $2,500 per calendar year maximum;

you pay $50 copay.

Durable Medical Equipment is covered up to a $2,500 per calendar year maximum;

you pay $50 copay.

Physical examinations that are not necessary for medical reasons, such as those required for obtaining or continuing employment or insurance, attending school or camp, or travel

Voluntary reversal, surgically- induced sterility

Surgery primarily for cosmetic purposes

Homemaker services

Hearing aids and their fitting

Transplants not listed as covered

Blood and blood derivatives not replaced by the member

Podiatric services

Chiropractic Care

Motorized wheelchair & hospital bed

Physicians charge for missed appointment

Medical and Surgical Benefits (continued)

What is not covered

CARE MUST BE RECEIVED FROM OR ARRANGED BY PLAN DOCTORS

Hospital/ Extended Care Benefits What is covered

Hospital care The Plan provides a comprehensive range of benefits with no dollar or day limit when you are hospitalized under the care of a Plan doctor. You pay $100 copay per admission. A $50 copay applies to outpatient surgery and outpatient care. All necessary services are covered, including:

Semiprivate room accommodations; when a Plan doctor determines it is medically necessary, the doctor may prescribe private accommodations or private duty nursing care.

Specialized care units, such as intensive care or cardiac care units.

Extended care The Plan provides a comprehensive range of benefits for up to 60 days, per calendar year when full- time skilled nursing care is necessary and confinement in a skilled nursing facility is medically appropriate as determined by a Plan doctor and approved by the Plan. You pay $25 copay per admission. All necessary services are covered including:

Bed, board and general nursing care

Drugs, biologicals, supplies and equipment or facility when prescribed by a Plan doctor

Hospice Care Supportive and palliative care for a terminally ill member is covered in the home or a hospice facility. Services include inpatient and outpatient care, and family counseling; these services are provided under the direction of a Plan doctor who certifies that the patient is in the terminal stages of illness, with a life expectancy of approximately six months or less.

Covered Hospice services do not include the following: private or special duty nursing; care for pain control or to manage acute or chronic symptoms; funeral arrangements; any financial or legal counseling; companion, homemaker or housekeeping services; voluntary services that are otherwise free; and counseling by your church pastor or minister.

Ambulance service Benefits are provided for ambulance transportation ordered or authorized by a Plan doctor.

You pay $50 copay per transport.

Limited benefits Inpatient dental Hospitalization for certain dental procedures is covered when a Plan doctor determines

procedures there is a need for hospitalization for reasons totally unrelated to the dental procedure; the Plan will cover the hospitalization, but not the cost of the professional dental services. Conditions for which hospitalization would be covered include hemophilia and heart disease; the need for anesthesia, by itself, is not such a condition.

Acute inpatient Hospitalization for medical treatment of substance abuse is limited to emergency care,

detoxification diagnosis, treatment of medical conditions, and medical management of withdrawal symptoms (acute detoxification) if the Plan doctor determines that outpatient management is not medically appropriate. See page 17 for nonmedical substance abuse benefits.

Personal comfort items, such as telephone and television

Blood and blood derivatives not replaced by the member

Custodial care, rest cures, domiciliary or convalescent care

What is not covered

CARE MUST BE RECEIVED FROM OR ARRANGED BY PLAN DOCTORS

Emergency Benefits

A medical emergency is the sudden and unexpected onset of a condition or an injury that you believe endangers your life or could result in serious injury or disability, and requires immediate medical or surgical care. Some problems are emergencies because, if not treated promptly, they might become more serious; examples include deep cuts and broken bones. Others are emergencies because they are potentially life- threatening, such as heart attacks, strokes, poisonings, gunshot wounds, or sudden inability to breathe. There are many other acute conditions that the Plan may determine are medical emergencies what they all have in common is the need for quick action.

If you are in an emergency situation, please call your primary care doctor. In extreme emergencies, if you are unable to contact your doctor, contact the local emergency system (e. g., the 911 telephone system) or go to the nearest hospital emergency room. Be sure to tell the emergency room personnel that you are a Plan member so that they can notify the Plan. You or a family member must notify the Plan within 48 hours. It is your responsibility to ensure that the Plan has been timely notified.

If you need to be hospitalized, the Plan must be notified within 48 hours or on the first working day following your admission, unless it was not reasonably possible to notify the Plan within that time. If you are hospitalized in non- Plan facilities and a Plan doctor believes care can be better provided in a Plan hospital, you will be transferred when medically feasible with any ambulance charges covered in full.

Benefits are available for care from non- Plan providers in a medical emergency only if delay in reaching a Plan provider would result in death, disability or significant jeopardy to your condition.

To be covered by this Plan, any follow- up care recommended by non- Plan providers must be approved by the Plan or provided by Plan providers.

Plan pays... Reasonable charges for emergency services to the extent the services would have been covered if received from Plan providers.

You pay... $50 copay per hospital emergency room visit or $8 copay per urgent care center visit for emergency services that are covered benefits of this Plan. If the emergency results in admission to a hospital, the copay is waived.

Benefits are available for any medically necessary health service that is immediately required because of injury or unforeseen illness.

If you need to be hospitalized, the Plan must be notified within 48 hours or on the first working day following your admission, unless it was not reasonably possible to notify the Plan within that time. If a Plan doctor believes care can be better provided in a Plan hospital, you will be transferred when medically feasible with any ambulance charges covered in full.

To be covered by this Plan, any follow- up care recommended by non- Plan providers must be approved by the Plan or provided by Plan providers.

Plan pays.. Reasonable charges for emergency services to the extent the services would have been covered if received from Plan providers.

You pay... $50 copay per hospital emergency room visit or $8 per urgent care center visit for emergency services that are covered benefits of this Plan. If the emergency results in admission to a hospital, the copay is waived.

What is a medical emergency?

Emergencies within the service area

Emergencies outside the service area

Emergency Benefits (continued)

What is covered Emergency care at a doctors office or an urgent care center

Emergency care as an outpatient or inpatient at a hospital, including doctors services

Ambulance service approved by the Plan

Elective care or nonemergency care

Emergency care provided outside the service area if the need for care could have been foreseen before leaving the service area

Medical and hospital costs resulting from a normal full- term delivery of a baby outside the service area

With your authorization, the Plan will pay benefits directly to the providers of your emergency care upon receipt of their claims. Doctor claims should be submitted on the HCFA 1500 claim form. If you are required to pay for the services, submit itemized bills and your receipts to the Plan along with an explanation of the services and the identification information from your ID card. Payment will be sent to you (or the provider if you did not pay the bill), unless the claim is denied. If it is denied, you will receive notice of the decision, including the reasons for the denial and the provisions of the contract on which denial was based. If you disagree with the Plans decision, you may request reconsideration in accordance with the disputed claims procedure described on page 21.

Mental Conditions/ Substance Abuse Benefits Mental conditions What is covered To the extent shown below, the Plan provides the following services necessary for the

diagnosis and treatment of acute psychiatric conditions, including the treatment of mental illness or disorders:

Diagnostic evaluation

Psychological testing

Psychiatric treatment (including individual and group therapy)

Hospitalization (including inpatient professional services)

Outpatient care Outpatient office visits to Plan providers are covered. You pay $20 copay per visit.

Inpatient care Inpatient confinements are covered when determined to be medically appropriate by Plan doctor and approved by the Plan. You pay $25 copay per admission.

Care for psychiatric conditions that in the professional judgement of Plan doctors are not subject to significant improvement through relatively short- term treatment

Psychiatric evaluation or therapy on court order or as a condition of parole or probation, unless determined by a Plan doctor to be necessary and appropriate

Psychological testing that is not medically necessary to determine appropriate treatment of a short- term psychiatric condition

Substance Abuse What is covered This Plan provides medical and hospital services such as acute detoxification services

for the medical, non- psychiatric aspects of substance abuse, including alcoholism and drug addition, the same as for any other illness or condition and to the extent shown below, the services necessary for diagnosis and treatment.

What is not covered

Filing claims for non- Plan providers

What is not covered

CARE MUST BE RECEIVED FROM OR ARRANGED BY PLAN DOCTORS

Mental Conditions/ Substance Abuse Benefits Outpatient care Outpatient office visits to Plan providers are covered. You pay $20 copay per visit.

Inpatient care Inpatient confinements are covered when determined to be medically appropriate by Plan doctor and approved by the Plan. You pay $25 copay per admission.

Treatment not authorized by a Plan doctor

Prescription Drug Benefits What is covered Prescription drugs prescribed by a Plan or referral doctor and obtained at a Plan pharmacy will be dispensed for up to a 34- day supply. You pay $10 copay per prescription

unit or refill for generic drugs and per prescription unit or refill for brand name drugs when generic substitution is not permissible.

When generic substitution is permissible, but you request the name brand drug, you pay the price difference between the generic and name brand drug as well as the $10 copay per prescription unit or refill.

Mail Order You pay $15 copay per mail order prescription unit or refill for up to a 60 day supply.

Prescription

Drugs are prescribed by Plan doctors and dispensed in accordance with the Plans drug formulary. Nonformulary drugs will be covered when prescribed by a Plan doctor. Covered medications and accessories include:

Drugs for which a prescription is required by Federal law

Oral contraceptive drugs

Insulin; a copay charge applies to each vial

Disposable needles and syringes needed to inject covered prescribed medication

Diabetic supplies, including insulin syringes, needles, glucose test tablets

Intravenous fluids and medication for home use, implantable drugs, and some injectable drugs, are covered under Medical and Surgical Benefits.

Limited Benefits Sexual dysfunction drugs have dispensing limitations; you pay a $25 copay per prescription unit. Contact the Plan for details.

Drugs available without a prescription or for which there is a nonprescription equivalent available

Drugs for cosmetic purposes

Contraceptive devices; contraceptive diaphragms; Depo Provera; Norplant

Fertility Drugs

Other Benefits

Restorative services and supplies necessary to promptly repair (but not replace) sound natural teeth. The need for these services must result from an accidental injury. You pay $50 copay.

Vision Care You must show your identification card to the Participating Vision Care Provider, PVCP, and sign any required form in order for Covered Services to be provided. This benefit provides coverage for Vision Care Services as ordered by a PVCP after you pay

a $15 copay per annual visit.

What is not covered

Accidental injury benefit

CARE MUST BE RECEIVED FROM OR ARRANGED BY PLAN DOCTORS

Vision Care The Vision Care Copayment is separate from your medical Copayment and does not

(continued) serve to fulfill the medical Copayment amount.

What is covered A routine eye examinations (refraction) only when conducted in a single visit. One vision examination (refraction only) is provided once per calendar year. The examination must be conducted by a designated participating vision provider.

Contacts, frames and lenses are covered for only a 15% discount on the cost

Orthoptics, vision training, low vision aids, or any supplemental training;

Examination, diagnostic procedures or services, solely for the purpose of surgically correcting refractive defects of the eye, such as nearsightedness (myopia), farsightedness (hyperopia) and astigmatism

Any examination or corrective eyewear required by an employer as a condition of employment;

Contact lens examination/ fitting;

Disposable contact lenses

Any procedure or services not listed as covered

Eye wear, (corrective lenses or frames)

What is not covered Other Benefits (continued)

CARE MUST BE RECEIVED FROM OR ARRANGED BY PLAN DOCTORS

Non- FEHB Benefits Available to Plan Members The benefits described on this page are neither offered nor guaranteed under the contract with the FEHB Program, but are made available to all enrollees and family members of this Plan. The cost of the benefit described on this page is not included in the FEHB premium and any charges for these services do not count toward any FEHB deductibles, or out- ofpocket maximums. These benefits are not subject to the FEHB disputed claims procedure.

Dental Services Discounted Dental Services provided through The Dental Network.

Member pays a discounted fee for dental services provided through The Dental Network

which includes discounts for preventive, restorative, and major services plus orthodontia. Contact the Plan at 1- 888- 523- 9527 for additional information.

Benefits on this page are not part of the FEHB contract

How to Obtain Benefits Questions If you have a question concerning Plan benefits or how to arrange for care, contact the

Plans Member Services Office at 1( 888)/ 523- 9527 or you may write to the Plan at American Healthcare Trust, Inc., P. O. Box 3371, Memphis, TN 38173- 0371. You may also contact the Plan by fax at 901/ 527- 2672.

Disputed claims review

Plan If a claim for payment or services is denied by the Plan, you must ask the Plan, in

reconsideration writing and within six months of the date of the denial, to reconsider its denial before you request a review by OPM. (This time limit may be extended if you show you were prevented by circumstances beyond your control from making your request within the time limit.) OPM will not review your request unless you demonstrate that you gave the Plan an opportunity to reconsider your claim. Your written request to the Plan must state why, based on specific benefit provisions in this brochure, you believe the denied claim for payment or service should have been paid or provided.

Within 30 days after receipt of your request for reconsideration, the Plan must affirm the denial in writing to you, pay the claim, provide the service, or request additional information reasonably necessary to make a determination. If the Plan asks a provider for information it will send you a copy of this request at the same time. The Plan has 30 days after receiving the information to give its decision. If this information is not supplied within 60 days, the Plan will base its decision on the information it has on hand.

OPM review If the Plan affirms its denial, you have the right to request a review by OPM to determine whether the Plans actions are in accordance with the terms of its contract. You must request the review within 90 days after the date of the Plans letter affirming its initial denial.

You may also ask OPM for a review if the Plan fails to respond within 30 days of your written request for reconsideration or 30 days after you have supplied additional information to the Plan. In this case, OPM must receive a request for review within 120 days of your request to the Plan for reconsideration or of the date you were notified that the Plan needed additional information, either from you or from your doctor or hospital.

This right is available only to you or the executor of a deceased claimants estate. Providers, legal counsel, and other interested parties may act as your representative only with your specific written consent to pursue payment of the disputed claim. OPM must receive a copy of your written consent with their request for review.

Your written request for an OPM review must state why, based on specific benefit provisions in this brochure, you believe the denied claim for payment or service should have been paid or provided. If the Plan has reconsidered and denied more than one unrelated claim, clearly identify the documents for each claim.

Your request must include the following information or it will be returned by OPM:

A copy of your letter to the Plan requesting reconsideration;

A copy of the Plans reconsideration decision (if the Plan failed to respond, provide instead (a) the date of your request to the Plan or (b) the dates the Plan requested and you provided additional information to the Plan);

Copies of documents that support your claim, such as doctors letters, operative reports, bills, medical records, and explanation of benefit (EOB) forms; and

Your daytime phone number.

OPM Review Medical documentation received from you or the Plan during the review process becomes

(continued) a permanent part of the disputed claim file, subject to the provisions of the Freedom of Information Act and the Privacy Act.

Send your request for review to: Office of Personnel Management, Office of Insurance Programs, Contracts Division 3, P. O. Box 436, Washington, DC 20044.

You (or a person acting on your behalf) may not bring a lawsuit to recover benefits on a claim for treatment, services, supplies or drugs covered by this Plan until you have exhausted the OPM review procedure, established at section 890.105, title 5, Code of Federal Regulations (CFR). If OPM upholds the Plans decision on your claim, and you decide to bring a lawsuit based on the denial, the lawsuit must be brought no later than December 31 of the third year after the year in which the services or supplies upon which the claim is predicated were provided. Pursuant to section 890.107, title 5, CFR, such a lawsuit must be brought against the Office of Personnel Management in Federal court.

Federal law exclusively governs all claims for relief in a lawsuit that relates to this Plans benefits or coverage or payments with respect to those benefits. Judicial action on such claims is limited to the record that was before OPM when it rendered its decision affirming the Plans denial of the benefit. The recovery in such a suit is limited to the amount of benefits in dispute.

Privacy Act statement - If you ask OPM to review a denial of a claim for payment or service, OPM is authorized by chapter 89 of title 5, U. S. C., to use the information collected from you and the Plan to determine if the Plan has acted properly in denying you the payment or service, and the information so collected may be disclosed to you and/ or the Plan in support of OPMs decision on the disputed claim.

How to Obtain Benefits (continued)

How this Plan Changes January 1999

Do not rely on this page; it is not an official statement of benefits.

Program- wide changes

Several changes have been made to comply with the Presidents mandate to implement the recommendations of the Patient Bill of Rights.

If you have a chronic, complex, or serious medical condition that causes you to frequently see a Plan specialist, your primary care doctor will develop a treatment plan with you and your health plan that allows an adequate number of direct access visits with that specialist, without the need to obtain further referrals (See page 9 for details).

A medical emergency is defined as the sudden and unexpected onset of a condition or an injury that you believe endangers your life or could result in serious injury or disability, and requires immediate medical or surgical care (See page 16).

The medical management of mental conditions will be covered under this Plans Medical and Surgical Benefits provisions. Related drug costs will be covered under this Plans Prescription Drug Benefits, and any costs for psychological testing or psychotherapy will be covered under this Plans Mental Conditions Benefits. Office visits for the medical aspects of treatment do not count toward the 20 outpatient Mental Conditions visit limit.

Coverage for drugs for sexual dysfunction is shown under Prescription Drug Benefits. See page 18 for details.

Changes to this Plan

Vision Care coverage has been added; you pay a $15.00 copay per annual visit. See page 18 for details.

Mental Conditions and Substance Abuse inpatient care copay is reduced from $ 25.00 per day to a $25.00 copay per admission. See page 17.

The outpatient Substance Abuse 20 visit per calendar year limit has been eliminated. See page 17.

The inpatient Substance Abuse 30 day per calendar year maximum has been eliminated. See page 17.

Chiropractic services are shown as not covered. See page 14.

The per admission copay under Hospital/ Extended Care benefits, is being reduced from $100 to $25. See page 15 for details.

Under Medical and Surgical Benefits for Short- Term Rehabilitation, a $100 per admission copy is being added. See page 14.

Under Durable Medical Equipment, benefits are modified to show that only a nonmotorized wheelchair and hospital bed are covered. See page 14 for details.

Members are responsible for missed appointment fees made by Plan physicians. See page 14.

The Plan has changed its legal name from American Medical Security Health Plan, Inc. to American Healthcare Trust, Inc.

NOTES

Summary of Benefits for American Healthcare Trust, Inc. - 1999

Do not rely on this chart alone. All benefits are provided in full unless otherwise indicated subject to the limitations and exclusions set forth in the brochure. This chart merely summarizes certain important expenses covered by the Plan. If you wish to enroll or change your enrollment in this Plan, be sure to indicate the correct enrollment code on your enrollment form (codes appear on the cover of this brochure). ALL SERVICES COVERED UNDER THIS PLAN, WITH THE EXCEPTION OF EMERGENCY CARE, ARE COVERED ONLY WHEN PROVIDED OR ARRANGED BY PLAN DOCTORS.

Benefits Plan pays/ provides Page Inpatient care

Hospital Comprehensive range of medical and surgical services without dollar or day limit. Includes in- hospital doctor care, room and board, general nursing care, private room and private nursing care if medically necessary, diagnostic tests, drugs and medical supplies, use of operating room, intensive care and complete maternity care. You pay $100 copay per admission .................. 12

Extended care All necessary services for up to 60 days per calendar year.

You pay $25 copay per admission ........................................................................ 15

Mental All hospitalizations when determined to be medically necessary by Plan

Conditions doctor and approved by the Plan. You pay $25 copay per admission ................ 17

Substance All hospitalizations when determined to be medically necessary by Plan

Abuse doctor and approved by the plan. You pay a $25 copay per admission .......... 17

Outpatient care Comprehensive range of services such as diagnosis and treatment of illness or injury, including specialists care; preventive care, including well- baby care, periodic check- ups and routine immunizations; laboratory tests and X- rays; complete maternity care. You pay $8 copay per doctors office visit; copays are waived for maternity care; $8 copay per house call.

You pay $50 copay per outpatient care and outpatient surgery ........................ 12

Home health care All necessary visits by nurses and health aides. You pay $10 copay per visit .................................................................................................................... 12

Mental conditions All medically necessary office visits. You pay $20 copay per visit .................... 17

Emergency care Reasonable charges for services and supplies required because of a medical emergency. You pay $50 copay to the hospital for emergency room visit and any charges for services that are not covered by this Plan.................................. 16

Prescription drugs Drugs prescribed by a Plan doctor and obtained at a Plan pharmacy. You pay

$10 copay per prescription drug unit or refill ...................................................... 18

Dental care Accidental injury benefit . You pay $50 copay ................................................... 20

Vision care Routine Annual Eye Exam with Refraction. You pay $15 copay per annual visit. 15% discount for frames, lenses and contacts.............................................. 18

Out- of- pocket maximum Copayments are required for a few benefits; however, after your out- of- pocket expenses reach a maximum of $500 per Self Only or $1,000 per Self and Family enrollment per calendar year, covered benefits will be provided at 100%. This copay maximum does not include the charges for: preventative health services, doctors and practitioner services, mental health services, substance abuse, prescription drugs, growth hormone treatment...................................................... 9

Authorized for distribution by the:

United States Office of Personnel Management

1999 Rate Information for American Healthcare Trust, Inc.

Non- Postal rates apply to most non- Postal enrollees. If you are in a special enrollment category, refer to the FEHB Guide for that category or contact the agency that maintains your health benefits enrollment.

Postal rates apply to most career U. S. Postal Service employees, but do not apply to noncareer Postal employees, Postal retirees, certain special Postal employment categories or associate members of any Postal employee organization. If you are in a special Postal employment category, refer to the FEHB Guide for that category.

Non- Postal Premium Postal Premium Biweekly Monthly Biweekly Type of Code Govt Your Govt Your USPS Your Enrollment Share Share Share Share Share Share

Self Only 4U1 $48.28 $16.09 $104.60 $34.87 $57.13 $7.24 Self and Family 4U2 $133.91 $44.63 $290.13 $96.71 $158.45 $20.09