CALL � THE HEALTH CARE FRAUD HOTLINE

202-418-3300

OR WRITE TO:

United States Office of Personnel Management

Office of the Inspector General Fraud Hotline

1900 E Street NW Room 6400

Washington, DC20415-1100

Identification cards

We will send you an identification (ID) card when you enroll. You should carry your ID card with you at all times. You must show it whenever you receive services from a Plan provider, or fill a prescription at a Plan pharmacy. Until you receive your ID card, use your copy of the Health Benefits Election Form, SF-2809, your health benefits enrollment confirmation (for annuitants), or your Employee Express confirmation letter.

If you do not receive your ID card within 30 days after the effective date of your enrollment, or if you need replacement cards, call us at 1-800-635-6668 or write to us at 1600 E. Hill Street, Signal Hill, CA 90755.

Where you get covered care

You get care from "Plan providers" and "Plan facilities." You will only pay copayments, and you will not have to file claims.

� Plan providers

Plan providers are physicians and other health care professionals in our service area that we contract with to provide covered services to our members. We credential Plan providers according to national standards. Universal Care's Plan providers include Primary Care Physicians, specialty physicians, physician assistants and nurse practitioners.

We list Plan providers in the provider directory, which we update periodically. The list is also on our Web site (www.universalcare.com).

� Plan facilities

Plan facilities are hospitals and other facilities in our service area that we contract with to provide covered services to our members. We list these in the provider directory, which we update periodically. The list is also on our Web site (www.universalcare.com).

What you must do to get covered care

It depends on the type of care you need. First, you and each family member must choose a primary care physician. This decision is important since your primary care physician provides or arranges for most of your health care. To select your Primary Care Physician, call our Member Services Department at 1-800-635-6668.

� Primary care

Your primary care physician can be a family practitioner, internist, pediatrician, or general practitioner. Your primary care physician will provide most of your health care, or give you a referral to see a specialist.

If you want to change primary care physicians or if your primary care physician leaves the Plan, call us. We will help you select a new one.

� Specialty care

Your primary care physician will refer you to a specialist for needed care. When you receive a referral from your primary care physician, you must return to the primary care physician after the consultation, unless your primary care physician authorized a certain number of visits without additional referrals. The primary care physician must provide or authorize all follow-up care. Do not go to the specialist for return visits unless your primary care physician gives you a referral. However, you may see OB/GYN or an Internist without a referral. Generally, your Primary Care Physician will refer you to a specialist within your Contracted Medical Group. If you require services that are not available within your Contracted Medical Group, the Primary Care Physician will arrange for a referral to a Contracted Provider within Universal Care's network. To order certain services, the Primary Care Physician will give you a written referral authorizing such services. For certain specialty services, the referral is submitted by the Primary Care Physician for review for Prior Authorization to Universal Care or to the Contracted Medical Group's Utilization Review Committee.

Here are some other things you should know about specialty care:

� If you need to see a specialist frequently because of a chronic, complex, or serious medical condition, your primary care physician will develop a treatment plan that allows you to see your specialist for a certain number of visits without additional referrals. Your primary care physician will use our criteria when creating your treatment plan (the physician may have to get an authorization or approval beforehand).

� If you are seeing a specialist when you enroll in our Plan, talk to your primary care physician. Your primary care physician will decide what treatment you need. If he or she decides to refer you to a specialist, ask if you can see your current specialist. If your current specialist does not participate with us, you must receive treatment from a specialist who does. Generally, we will not pay for you to see a specialist who does not participate with our Plan.

� If you are seeing a specialist and your specialist leaves the Plan, call your primary care physician, who will arrange for you to see another specialist. You may receive services from your current specialist until we can make arrangements for you to see someone else.

� If you have a chronic and disabling condition and lose access to your specialist because we:

� Terminate our contract with your specialist for other than cause; or

� Drop out of the Federal Employees Health Benefits (FEHB) Program and you enroll in another FEHB program Plan; or

� Reduce our service area and you enroll in another FEHB Plan,

you may be able to continue seeing your specialist for up to 90 days after you receive notice of the change. Contact us, or if we drop out of the Program, contact your new plan.

If you are in the second or third trimester of pregnancy and you lose access to your specialist based on the above circumstances, you can continue to see your specialist until the end of your postpartum care, even if it is beyond the 90 days.

� Hospital care

Your Plan primary care physician or specialist will make necessary hospital arrangements and supervise your care. This includes admission to a skilled nursing or other type of facility.

If you are in the hospital when your enrollment in our Plan begins, call our customer service department immediately at 1-800-635-6668. If you are new to the FEHB Program, we will arrange for you to receive care.

If you changed from another FEHB plan to us, your former plan will pay for the hospital stay until:

� You are discharged, not merely moved to an alternative care center; or

� The day your benefits from your former plan run out; or

� The 92^nd day after you become a member of this Plan, whichever happens first.

These provisions apply only to the benefits of the hospitalized person. If your plan terminates participation in the FEHB Program in whole or in part, or if OPM orders an enrollment change, this continuation of coverage provision does not apply. In such case, the hospitalized family member's benefits under the new plan begin on the effective date of enrollment.

Circumstances beyond our control

Under certain extraordinary circumstances, such as natural disasters, we may have to delay your services or we may be unable to provide them. In that case, we will make all reasonable efforts to provide you with the necessary care.

Services requiring our prior approval

Your primary care physician has authority to refer you for most services. For certain services, however, your physician must obtain approval from us. Before giving approval, we consider if the service is covered, medically necessary, and follows generally accepted medical practice.

We call this review and approval process Prior Authorization. Your physician must obtain Prior Authorization for the following services,which include, but are not limited to:

� Referrals to specialists

� Laboratory and Radiology services such as Blood Tests, Urinalysis, Non-routine pap tests, Pathology, X-rays, Non-routine mammograms, Cat Scans/MRI, Ultrasound, Electrocardiogram and EEG

� Elective procedures-inpatient or outpatient

� Home health care

� Durable Medical Equipment

� Ambulance

Your physician must get our approval before sending you to a hospital, referring you to a specialist, or recommending follow-up care. Prior Authorization means that your Primary Care Physician must contact Universal Care (or in some cases, the Contracted Medical Group with which your Primary Care Physician is affiliated) to request that the service be approved for coverage before services are rendered. Requests for Prior Authorization will be denied if the requested services are determined to be not Medically Necessary. Requests for Prior Authorization of coverage for services by non-contracted providers will also be denied if Universal Care determines that comparable or more appropriate services are available through Universal Care's Contracted Providers.

The majority of requests for Prior Authorization of coverage are responded to within 72 hours of their receipt, and urgent matters are expedited. Those requests which require investigation and/or physician review sometimes take longer as they may be needed for additional information and communication directly to you and your Primary Care Physician and the referral specialist along with an authorization number. Requests for coverage that are approved by Universal Care are communicated directly to you and your Primary Care Physician and the referral specialist along with an authorization number. Requests for Prior Authorization of coverage that are denied by Universal Care are communicated in writing to your Primary Care Physician and you.

In the event that Prior Authorization of coverage has been denied by Universal Care (or in some cases, the Utilization Review Committee of your Contracted Medical Group), you, or your Primary Care Physician on your behalf may appeal the denial by following the appeals process outlined on page of this brochure. If you would like a more detailed description of Universal Care's Criteria for Authorizing or Denying Health Care Services, you may contact Universal Care's Member Services Department at 800-635-6668.

Copayments

A copayment is a fixed amount of money you pay to the provider, facility, pharmacy, etc., when you receive services.

Example: When you see your primary care physician you pay a copayment of $10 per office visit and when you go in the hospital, you pay $300 per admission.

Deductible

We do not have a deductible.

Coinsurance

We do not have coinsurance.

Your catastrophic protection out-of-pocket maximum

After your copayments total $2,000 per person or $4,000 per family enrollment in any calendar year, you do not have to pay any more for covered services. However, copayments for the following services do not count toward your catastrophic protection out-of-pocket maximum, and you must continue to pay copayments for these services:

� Prescription drugs

� Durable Medical Equipment

� Diagnosis and treatment of infertility

Be sure to keep accurate records of your copayments since you are responsible for informing us when you reach the maximum.

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Here are some important things you should keep in mind about these benefits:

� Please remember that all benefits are subject to the definitions, limitations, and exclusions in this brochure and are payable only when we determine they are medically necessary.

� Plan physicians must provide or arrange your care.

� We have no calendar year deductible.

� Be sure to read Section 4, Your costs for covered services, for valuable information about how cost sharing works. Also read Section 9 about coordinating benefits with other coverage, including with Medicare.

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Professional services of physicians

� In physician's office

$10 per office visit

Professional services of physicians

� In an urgent care center

� During a hospital stay

� In a skilled nursing facility

� Office medical consultations

� Second surgical opinion

$10 per office visit

At home visits by nurse or health aide

Nothing

At home visits by physician

$10 per visit

Tests, such as:

� Blood tests

� Urinalysis

� Non-routine pap tests

� Pathology

� X-rays

� Non-routine Mammograms

� CAT Scans/MRI

� Ultrasound

� Electrocardiogram and EEG

Nothing if you receive these services during your office visit; otherwise, $10 per office visit

Routine screenings, such as:

� Total Blood Cholesterol

� Colorectal Cancer Screening, including

� Fecal occult blood test

� Sigmoidoscopy, screening - every five years starting at age 50

� Venereal Disease testing, including screening for chlamydial infection

� Breast Cancer Screening

$10 per office visit

Routine Prostate Specific Antigen (PSA) test - one annually for men age 40 and older

$10 per office visit

Routine pap test

Note: The office visit is covered if pap test is received on the same day; see Diagnosis and Treatment, above.

$10 per office visit

Routine mammogram - covered for women age 35 and older, as follows:

� From age 35 through 39, one during this five year period

� From age 40 through 64, one every calendar year

� At age 65 and older, one every two consecutive calendar years

$10 per office visit

Routine immunizations, limited to:

� Tetanus-diphtheria (Td) booster - once every 10 years, ages 19 and over (except as provided for under Childhood immunizations)

� Influenza vaccine, annually

� Pneumococcal vaccine, age 65 and older

$10 per office visit

Not covered: Physical exams required for obtaining or continuing employment or insurance, attending schools or camp, or travel.

All charges.

� Childhood immunizations recommended by the American Academy of Pediatrics

$10 per office visit

� Well-child care charges for routine examinations, immunizations and care (up to age 22)

� Examinations, such as:

� Eye exams through age 17 to determine the need for vision correction

� Ear exams through age 17 to determine the need for hearing correction

� Examinations done on the day of immunizations (up to age 22)

$10 per office visit

Complete maternity (obstetrical) care, such as:

� Prenatal care

� Delivery

� Postnatal care

Note: Here are some things to keep in mind:

� You do not need to precertify your normal delivery; see page 28 for other circumstances, such as extended stays for you or your baby.

� You may remain in the hospital up to 48 hours after a regular delivery and 96 hours after a cesarean delivery. We will extend your inpatient stay if medically necessary.

� We cover routine nursery care of the newborn child during the covered portion of the mother's maternity stay. We will cover other care of an infant who requires non-routine treatment only if we cover the infant under a Self and Family enrollment.

� We pay hospitalization and surgeon services (delivery) the same as for illness and injury. See Hospital benefits (Section 5c) and Surgery benefits (Section 5b).

$10 per office visit

Not covered: Routine sonograms to determine fetal age, size or sex.

All charges.

A range of voluntary family planning services, limited to:

� Voluntary sterilization (See Surgical procedures Section 5 (b))

� Surgically implanted contraceptives

� Injectable contraceptive drugs (such as Depo provera)

� Intrauterine devices (IUDs)

� Diaphragms

� Abortion only when the life of the mother would be endangered if fetus is carried to term or if the pregnancy is a result of an act of rape or incest.

Note: We cover oral contraceptives under the prescription drug benefit.

$10 per office visit

$200 copay

Not covered:

� Reversal of voluntary surgical sterilization

� Genetic counseling.

All charges.

Diagnosis and treatment of infertility such as:

� Artificial insemination:

� intravaginal insemination (IVI)

� intracervical insemination (ICI)

� intrauterine insemination (IUI)

� Fertility drugs

Note: We cover injectible fertility drugs under medical benefits and oral fertility drugs under the prescription drug benefit.

50% of charges

Not covered:

� Assisted reproductive technology (ART) procedures, such as:

� in vitro fertilization

� embryo transfer, gamete intra-fallopian transfer (GIFT) and zygote intra-fallopian transfer (ZIFT)

� Services and supplies related to ART procedures

� Cost of donor sperm

� Cost of donor egg

All charges.

� Testing and treatment

� Allergy injections

$10 per office visit

Allergy serum

Nothing

Not covered: Provocative food testing and sublingual allergy desensitization

All charges.

� Chemotherapy and radiation therapy

Note: High dose chemotherapy in association with autologous bone marrow transplants is limited to those transplants listed under Organ/Tissue Transplants on page 26.

� Respiratory and inhalation therapy

� Dialysis - hemodialysis and peritoneal dialysis

� Intravenous (IV)/Infusion Therapy - Home IV and antibiotic therapy

� Growth hormone therapy (GHT)

Note: Growth hormone is covered under the prescription drug benefit.

Note: - We only cover GHT when we preauthorize the treatment. Call 800-635-6668 for preauthorization. We will ask you to submit information that establishes that the GHT is medically necessary. Ask us to authorize GHT before you begin treatment; otherwise, we will only cover GHT services from the date you submit the information. If you do not ask or if we determine GHT is not medically necessary, we will not cover the GHT or related services and supplies. See Services requiring our prior approval in Section 3.

$10 per office visit

60 visits per condition for the services of each of the following:

� qualified physical therapists and

� occupational therapists

Note: We only cover therapy to restore bodily function when there has been a total or partial loss of bodily function due to illness or injury. Occupational therapy is limited to services that assist the member to achieve and maintain self-care and improved functioning in other activities of daily living.

� Cardiac rehabilitation following a heart transplant, bypass surgery or a myocardial infarction is provided for up to 60 sessions.

$10 per office visit

$10 per outpatient visit

Nothing per visit during covered inpatient admission

Not covered:

� Long-term rehabilitative therapy

� Exercise programs

All charges.

60 visits per year

$10 per office visit

$10 per outpatient visit

Nothing per visit during covered inpatient admission.

� First hearing aid and testing only when necessitated by accidental injury

� Hearing testing for children through age 17 (see Preventive care, children)

$10 per office visit

Not covered:

� All other hearing testing

� Hearing aids, testing and examinations for them

All charges.

� One pair of eyeglasses or contact lenses to correct an impairment directly caused by accidental ocular injury or intraocular surgery (such as for cataracts)

� Diagnosis and treatment of diseases of the eye.

Note: See Preventive care, children for exams for children

$10 per office visit

Not covered:

� Eyeglasses or contact lenses and after age 17, examinations for them

� Eye exercises and orthoptics

� Radial keratotomy and other refractive surgery

All charges.

Routine foot care when you are under active treatment for a metabolic or peripheral vascular disease, such as diabetes.

Note: See Orthopedic and prosthetic devices for information on podiatric shoe inserts.

$10 per office visit

Not covered:

� Cutting, trimming or removal of corns, calluses, or the free edge of toenails, and similar routine treatment of conditions of the foot, except as stated above

� Treatment of weak, strained or flat feet or bunions or spurs; and of any instability, imbalance or subluxation of the foot (unless the treatment is by open cutting surgery)

All charges.

� Artificial limbs and eyes; stump hose

� Externally worn breast prostheses and surgical bras, including necessary replacements following a mastectomy

� Internal prosthetic devices, such as artificial joints, pacemakers, cochlear implants, and surgically implanted breast implant following mastectomy. Note: See 5(b) for coverage of the surgery to insert the device.

� Orthopedic devices, such as braces

� Corrective orthopedic appliances for non-dental treatment of temporomandibular joint (TMJ) pain dysfunction syndrome.

� Maximum benefit of $2,500 per Calendar Year

Note: The maximum benefit is $2,500 per calendar year per member

10% of allowed charges

Not covered:

� Orthopedic and corrective shoes

� Arch supports

� Foot orthotics

� Heel pads and heel cups

� Lumbosacral supports

� Corsets, trusses, elastic stockings, support hose, and other supportive devices

� Prosthetic replacements provided less than 3 years after the last one we covered

All charges.

Rental or purchase, at our option, including repair and adjustment, of durable medical equipment prescribed by your Plan physician, such as oxygen and dialysis equipment. Under this benefit, we also cover:

� Hospital beds;

� Wheelchairs;

� Crutches;

� Walkers;

� Blood glucose monitors; and

� Insulin pumps.

� Wigs are covered only for members undergoing chemotherapy or radiation treatment.

Note: Call us at 800-635-6668 as soon as your Plan physician prescribes this equipment. We will arrange with a health care provider to rent or sell you durable medical equipment at discounted rates and will tell you more about this service when you call.

Note: The maximum benefit is $2,500 per calendar year per member

10% of allowed charges

Not covered: Motorized wheelchairs.

All charges.

� Home health care ordered by a Plan physician and provided by a registered nurse (R.N.), licensed practical nurse (L.P.N.), licensed vocational nurse (L.V.N.), or home health aide.

� Services include oxygen therapy, intravenous therapy and medications.

$10 per office visit

Not covered:

� Nursing care requested by, or for the convenience of, the patient or the patient's family;

� Home care primarily for personal assistance that does not include a medical component and is not diagnostic, therapeutic, or rehabilitative.

All charges.

No Benefit

All charges.

No Benefit

All charges.

Coverage is limited to:

� Smoking Cessation - Up to $100 for one smoking cessation program per member per lifetime, including all related expenses such as drugs.

� Diabetes self management

� Weight Loss

� Cholesterol control

� Exercise

� Parenting

� Healthy kids

� Breast feeding

� Healthy Living: Fast foods/Dining out

� Hypertension management

� Stress Management

� Healthy Living Back

� Asthma control: Children (ages 4-8)

Teens (ages 9-14)

Adults (ages 15+)

Nothing

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Here are some important things you should keep in mind about these benefits:

� Please remember that all benefits are subject to the definitions, limitations, and exclusions in this brochure and are payable only when we determine they are medically necessary.

� Plan physicians must provide or arrange your care.

� We have no calendar year deductible.

� Be sure to read Section 4, Your costs for covered services, for valuable information about how cost sharing works. Also read Section 9 about coordinating benefits with other coverage, including with Medicare.

� The amounts listed below are for the charges billed by a physician or other health care professional for your surgical care. Look in Section 5(c) for charges associated with the facility (i.e. hospital, surgical center, etc.).

� YOU MUST GET PRIOR AUTHORIZATION FOR ALL SURGICAL PROCEDURES. Please refer to the precertification information shown in Section 3 to be sure which services require precertification and identify which surgeries require precertification.

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A comprehensive range of services, such as:

� Operative procedures

� Treatment of fractures, including casting

� Normal pre- and post-operative care by the surgeon

� Correction of amblyopia and strabismus

� Endoscopy procedures

� Biopsy procedures

� Removal of tumors and cysts

� Correction of congenital anomalies (see Reconstructive surgery)

� Surgical treatment of morbid obesity -- a condition in which an individual weighs 100 pounds or 100% over his or her normal weight according to current underwriting standards; eligible members must be age 18 or over. Surgery for morbid obesity will be performed only as a last resort, when the members health is endangered and more conservative medical measures, including prescription drugs such as appetite suppressants, have not been successful.

� Insertion of internal prosthetic devices. See 5(a) - Orthopedic and prosthetic devices for device coverage information

$10 per office visit

� Voluntary sterilization (e.g., Tubal ligation, Vasectomy)

� Treatment of burns

Note: Generally, we pay for internal prostheses (devices) according to where the procedure is done. For example, we pay Hospital benefits for a pacemaker and Surgery benefits for insertion of the pacemaker.

Note: All elective procedures must be prior approved by the Plan.

$100 per office visit - Vasectomy

$200 per office visit - Tubal ligation

Not covered:

� Reversal of voluntary sterilization

� Routine treatment of conditions of the foot; see Foot care

All charges.

� Surgery to correct a functional defect

� Surgery to correct a condition caused by injury or illness if:

� the condition produced a major effect on the member's appearance and

� the condition can reasonably be expected to be corrected by such surgery

� Surgery to correct a condition that existed at or from birth and is a significant deviation from the common form or norm. Examples of congenital anomalies are: protruding ear deformities; cleft lip; cleft palate; birth marks; webbed fingers; and webbed toes.

� All stages of breast reconstruction surgery following a mastectomy, such as:

� surgery to produce a symmetrical appearance of breasts;

� treatment of any physical complications, such as lymphedemas;

� breast prostheses and surgical bras and replacements (see Prosthetic devices)

Note: If you need a mastectomy, you may choose to have the procedure performed on an inpatient basis and remain in the hospital up to 48 hours after the procedure.

$10 per office visit

See above.

Not covered:

� Cosmetic surgery - any surgical procedure (or any portion of a procedure) performed primarily to improve physical appearance through change in bodily form, except repair of accidental injury

� Surgeries related to sex transformation

All charges.

Oral surgical procedures, limited to:

� Reduction of fractures of the jaws or facial bones;

� Surgical correction of cleft lip, cleft palate or severe functional malocclusion;

� Removal of stones from salivary ducts;

� Excision of leukoplakia or malignancies;

� Excision of cysts and incision of abscesses when done as independent procedures;

� Other surgical procedures that do not involve the teeth or their supporting structures; and

� Treatment of TMJ, including surgical and non-surgical intervention

$10 per office visit

Not covered:

� Oral implants and transplants

� Procedures that involve the teeth or their supporting structures (such as the periodontal membrane, gingiva, and alveolar bone)

� Orthopedic appliances

All charges.

Limited to:

� Cornea

� Heart

� Heart/lung

� Kidney

� Kidney/Pancreas

� Liver

� Lung: Single - Double

� Pancreas

� Allogeneic 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 Hodgkin's lymphoma; advanced non-Hodgkin's lymphoma; advanced neuroblastoma; breast cancer; multiple myeloma; epithelial ovarian cancer; and testicular, mediastinal, retroperitoneal and ovarian germ cell tumors

� Intestinal transplants (small intestine) and the small intestine with the liver or small intestine with multiple organs such as the liver, stomach, and pancreas

Limited Benefits - Treatment for breast cancer, multiple myeloma, and epithelial ovarian cancer may be provided in a National Cancer Institute - or National Institutes of Health-approved clinical trial at a Plan-designated center of excellence and if approved by the Plan's medical director in accordance with the Plan's protocols.

Note: We cover related medical and hospital expenses of the donor when we cover the recipient.

Nothing

Not covered:

� Donor screening tests and donor search expenses, except those performed for the actual donor

� Implants of artificial organs

� Transplants not listed as covered

All charges.

Professional services provided in -

� Hospital (inpatient)

Nothing

Professional services provided in -

� Hospital outpatient department

� Skilled nursing facility

� Ambulatory surgical center

� Office

$10 per office visit

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Here are some important things you should keep in mind about these benefits:

� Please remember that all benefits are subject to the definitions, limitations, and exclusions in this brochure and are payable only when we determine they are medically necessary.

� Plan physicians must provide or arrange your care and you must be hospitalized in a Plan facility.

� We have no calendar year deductible.

� Be sure to read Section 4, Your costs for covered services for valuable information about how cost sharing works. Also read Section 9 about coordinating benefits with other coverage, including with Medicare.

� The amounts listed below are for the charges billed by the facility (i.e., hospital or surgical center) or ambulance service for your surgery or care. Any costs associated with the professional charge (i.e., physicians, etc.) are in Sections 5(a) or (b).

� YOU MUST GET PRIOR AUTHORIZATION FOR ALL HOSPITAL STAYS.

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Room and board, such as

� Ward, semiprivate, or intensive care accommodations;

� General nursing care; and

� Meals and special diets.

Note: If you want a private room when it is not medically necessary, you pay the additional charge above the semiprivate room rate.

$300 copay per admission

Other hospital services and supplies, such as:

� Operating, recovery, maternity, and other treatment rooms

� Prescribed drugs and medicines

� Diagnostic laboratory tests and X-rays

� Administration of blood and blood products

� Blood or blood plasma, if not donated or replaced

� Dressings, splints, casts, and sterile tray services

� Medical supplies and equipment, including oxygen

� Anesthetics, including nurse anesthetist services

� Take-home items

� Medical supplies, appliances, medical equipment, and any covered items billed by a hospital for use at home

Nothing

Not covered:

� Custodial care

� Non-covered facilities, such as nursing homes, schools

� Personal comfort items, such as telephone, television, barber services, guest meals and beds

� Private nursing care

All charges.

� Operating, recovery, and other treatment rooms

� Prescribed drugs and medicines

� Diagnostic laboratory tests, X-rays, and pathology services

� Administration of blood, blood plasma, and other biologicals

� Blood and blood plasma, if not donated or replaced

� Pre-surgical testing

� Dressings, casts, and sterile tray services

� Medical supplies, including oxygen

� Anesthetics and anesthesia service

Note: - We cover hospital services and supplies related to dental procedures when necessitated by a non-dental physical impairment. We do not cover the dental procedures.

$100 per visit

Not covered: Blood and blood derivatives not replaced by the member

All charges.

Extended care benefit:

Subacute care is provided in either a designated area of an acute care hospital, in a comprehensive freestanding rehabilitation facility, or in a specially designed unit within a skilled nursing facility. Subacute care is considered a lower level of care in terms of nursing and physician contact time with the patient, and yet is still a comprehensive level of care for patients whose condition is likely to continue to improve and who:

� Have an acute illness of injury for which acute care is no longer medically necessary.

� Have experienced a recurrence of chronic disease process for which acute care is no longer necessary.

� Though stable, may still require diagnostic and/or invasive procedures and nursing care and/or monitoring.

Nothing

Skilled nursing facility (SNF):

The Plan provides a comprehensive range of benefits with no dollar limit, for up to 30 days per calendary 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. All necessary services are covered, including:

� Bed, board and general nursing care

� Drugs, biologicals, supplies, and equipment ordinarily provided or arranged by the skilled nursing facility when prescribed by a Plan doctor.

$300 copay per admission

Not covered: Custodial care

All charges.

Supportive and palliative care for 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 stage of illness, with a life expectancy of approximately twelve months or less. Services must be authorized by a Plan doctor and approved by the Plan.

Nothing

Not covered: Independent nursing, homemaker services

All charges.

� Local professional ambulance service when medically appropriate

Note: Services must be prior approved by the Plan.

$50 per trip

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Here are some important things to keep in mind about these benefits:

� Please remember that all benefits are subject to the definitions, limitations, and exclusions in this brochure and are payable only when we determine they are medically necessary.

� Be sure to read Section 4, Your costs for covered services, for valuable information about how cost sharing works. Also read Section 9 about coordinating benefits with other coverage, including with Medicare.

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What is a medical emergency?

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 we may determine are medical emergencies - what they all have in common is the need for quick action.

What to do in case of emergency:

If you are in an emergency situation, immediately call "911" or go directly to the nearest emergency room for treatment. Be sure to tell the emergency room personnel that you are a Universal Care member so they can notify the Plan.

Emergencies within our service area:You or a family member must telephone your Universal Care medical group within 24 hours (unless it was not reasonably possible to do so). It is your responsibility to ensure that the Plan has been timely notified. Continuing treatment shall be covered for only so long as the Medical Director of the Plan, after reviewing any medical records or other relevant information and conferring with the physician in charge of the patient care, determines that the member cannot be transferred to the care of a Universal Care Medical Group or contracting provider.

Emergencies outside our service area:You or a family member must telephone your Universal Care medical group within 24 hours (unless it was not reasonably possible to do so). It is your responsibility to ensure that the Plan has been timely notified. Continuing treatment shall be covered for only so long as the Medical Director of the Plan, after reviewing any medical records or other relevant information and conferring with the physician in charge of the patient care, determines that the member cannot be transferred to the care of a Universal Care Medical Group or contracting provider.

If you need to be hospitalized in a non-Plan facility, 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 a non-Plan facility 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.

� Emergency care at a doctor's office

� Emergency care at an urgent care center

� Emergency care as an outpatient at a hospital, including doctor's services

$10 per visit

$50 per visit

$50 per visit

If the emergency results in admission to a hospital, the copay is waived.

Not covered: Elective care or non-emergency care

All charges.

� Emergency care at a doctor's office

� Emergency care at an urgent care center

� Emergency care as an outpatient at a hospital, including doctor's services

$50 per visit

$50 per visit

$50 per visit

If the emergency results in admission to a hospital, the copay is waived.

Not covered:

� Elective care or non-emergency 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

All charges.

Professional ambulance service when medically appropriate.

Note: See 5(c) for non-emergency service.

$50 per trip

Not covered: Air ambulance

All charges.

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When you get our approval for services and follow a treatment plan we approve, cost-sharing and limitations for Plan mental health and substance abuse benefits will be no greater than for similar benefits for other illnesses and conditions.

Here are some important things to keep in mind about these benefits:

� Please remember that all benefits are subject to the definitions, limitations, and exclusions in this brochure and are payable only when we determine they are medically necessary.

� Be sure to read Section 4, Your costs for covered services, for valuable information about how cost sharing works. Also read Section 9 about coordinating benefits with other coverage, including with Medicare.

� YOU MUST GET PRIOR AUTHORIZATION OF THESE SERVICES. See the instructions after the benefits description below.

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All diagnostic and treatment services recommended by a Plan provider and contained in a treatment plan that we approve. The treatment plan may include services, drugs, and supplies described elsewhere in this brochure.

Note: Plan benefits are payable only when we determine the care is clinically appropriate to treat your condition and only when you receive the care as part of a treatment plan that we approve.

Your cost sharing responsibilities are no greater than for other illnesses or conditions.

� Professional services, including individual or group therapy by providers such as psychiatrists, psychologists, or clinical social workers

� Medication management

$10 per visit

� Diagnostic tests

Nothing if you receive these services during your office visit; otherwise, $10 per office visit.

� Services provided by a hospital or other facility

� Services in approved alternative care settings such as partial hospitalization, half-way house, residential treatment, full-day hospitalization, facility based intensive outpatient treatment

$300 copay per admission

Not covered: Services we have not approved.

Note: OPM will base its review of disputes about treatment plans on the treatment plan's clinical appropriateness. OPM will generally not order us to pay or provide one clinically appropriate treatment plan in favor of another.

All charges.

Preauthorization To be eligible to receive these benefits you must obtain a treatment plan and follow all of the following network authorization processes:

To get a referral, contact your Primary Care Physician. If you have an emergency and are unable to contact your PCP, call the Triage service at 800-377-7012. In order to obtain a provider directory, call our Member Services Department at 800-635-6668.

Limitation We may limit your benefits if you do not obtain a treatment plan.

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Here are some important things to keep in mind about these benefits:

� We cover prescribed drugs and medications, as described in the chart beginning on the next page.

� All benefits are subject to the definitions, limitations and exclusions in this brochure and are payable only when we determine they are medically necessary.

� We have no calendar year deductible.

� Be sure to read Section 4, Your costs for covered services, for valuable information about how cost sharing works. Also read Section 9 about coordinating benefits with other coverage, including with Medicare.

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There are important features you should be aware of. These include:

� Who can write your prescription. A licensed physician must write the prescription - or - A licensed Plan or referral physician must write the prescription.

� Where you can obtain them. You may fill the prescription at a Plan pharmacy. Universal Care approved maintenance drugs for chronic conditions can be ordered through the mail.

� We use a formulary. Universal Care uses a comprehensive formulary as a method of evaluating various drug products available to treat illnesses. The formulary is a preferred list of generic and name brand drugs that we have selected to meet patient needs at a lower cost and are:

� FDA approved for specific indications

� Reviewed by Universal Care with participation by practicing physicians

� Safe and effective as well as being medically necessary for the treatment of maintenance of a medical condition; and

� Cost effective for the treatment of the medical condition

Your physician may prescribe a name brand drug or a generic drug from a formulary list. A generic equivalent will be dispensed if it is available, unless your physician specifically requires a name brand. If your physician prescribes a drug that is not on our formulary, you pay the non-formulary copay. Non-formulary drugs that are prior approved by us will be subject to the applicable formulary copay.

To order a prescription drug formulary, call 800-635-6668.

� These are the dispensing limitations. Up to a one-month supply of prescription drug will be dispensed. Certain drugs such as vitamins with fluoride for infants may be limited for up to one year. A 90-day supply of a prescription drug for chronic conditions ordered through the mail. If a member sends in an order too soon after the last one was filled, the new order will not go through. Only maintenance medications for conditions such as hypertension, diabetes, etc. are available through mail order. Plan members called to active military duty (or members in time of national emergency) who need to obtain prescribed medications, should call our Member Services Department at 800-635-6668.

� Why use generic drugs? Generic drugs offer a safe and economic way to meet your prescription drug needs. The generic name of a drug is its chemical name; the name brand is the name under which the manufacturer advertises and sells a drug. Under federal law, generic and name brand drugs must meet the same standards for safety, purity, strength, and effectiveness. A generic prescription costs you-and us-less than a name brand prescription.

� When you have to file a claim. Submit all claims to: Universal Care, P.O.Box 16420, Signal Hill, CA 90755-3682

We cover the following medications and supplies prescribed by a Plan physician and obtained from a Plan pharmacy or through our mail order program:

� Drugs and medicines that by Federal law of the United States require a physician's prescription for their purchase, except those listed as Not covered.

� Oral contraceptive drugs

� Insulin; a copay charge applies to each vial

� Insulin syringes, needles and blood glucose monitoring strips

� Prenatal vitamins

� Vitamins with fluoride for infants up to one year of age

� Intravenous fluids and medications for home use

� "Off-label" medication will be covered only if the Prescribing Plan Physician provides pre-reviewed medical literature or if the "off-label" medication has become a community standard.

� Oral fertility drugs

� Disposable needles and syringes for the administration of covered medications

� Medically necessary drugs for sexual dysfunction including, but not limited to Viagra, Yocon, Muse and Caverjet are limited to a maximum of eight (8) pills per member per month with a 50% copayment and must be prior authorized by your Contracting Medical Group.

Note: Implantable drugs, such as Norplant, and some injectable drugs, such as Depo Provera, are covered under Medical and Surgical Benefits.

Retail Pharmacy

$ 10 for generic drugs listed on our formulary

$ 20 for brand name drugs with no generic equivalent listed on our formulary...

$30 for generic or brand name drugs not listed on our formulary.

Mail-order

$15 for generic drugs

$30 for brand name drugs

90-day supply of prescribed maintenance drugs obtained through our mail order program

Note: If there is no generic equivalent available, you will still have to pay the brand name copay.

Not covered:

� Drugs and supplies for cosmetic purposes

� Drugs to enhance athletic performance

� Drugs obtained at a non-Plan pharmacy; except for out-of-area emergencies

� Vitamins, nutrients and food supplements even if a physician prescribes or administers them, except for prenatal vitamins and vitamins with fluoride for infants up to one year of age.

� Medical supplies such as dressings and antiseptics

� Diabetic supplies, except for insulin syringes, needles and blood glucose monitoring strips

� Smoking cessation drugs and medication

� Over the counter medications prescribed by a physician

All charges.

24 hour nurse line

For any of your health concerns, 24 hours a day, 7 days a week, you may call 800-377-7012 and talk with a registered nurse who will discuss treatment options and answer your health questions.

Services for deaf and hearing impaired

The hearing and speech impaired may use Universal Care's toll-free telephone number (866)-321-5955 (TTY).

High risk pregnancies

Universal Care has a Women's Health Department that monitors and manages high-risk pregnancies.

Centers of excellence for transplants/heart surgery/etc

Universal Care has contracts with centers of excellence including UCLA Medical Center, Loma Linda University Medical Center, and Cedars Sinai Medical Center.

Travel benefit/services overseas

Universal Care covers all travel immunizations required for travel by the country of destination.

We cover 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.

$35 for initial stabilization services

$10 for follow-up visits

We have no other dental benefits.

All charges.

Medical, hospital and drug benefits

In most cases, providers and facilities file claims for you. Physicians must file on the form HCFA-1500, Health Insurance Claim Form. Your facility will file on the UB-92 form. For claims questions and assistance, call us at 800-635-6668.

When you must file a claim - such as for services you receive outside the Plan's service area - submit it on the HCFA-1500 or a claim form that includes the information shown below. Bills and receipts should be itemized and show:

� Covered member's name and ID number;

� Name and address of the physician or facility that provided the service or supply;

� Dates you received the services or supplies;

� Diagnosis;

� Type of each service or supply;

� The charge for each service or supply;

� A copy of the explanation of benefits, payments, or denial from any primary payer - such as the Medicare Summary Notice (MSN); and

� Receipts, if you paid for your services.

Submit your claims to:    Universal Care
P.O. Box 16420
Signal Hill, CA 90755-3682

Deadline for filing your claim

Send us all of the documents for your claim as soon as possible. You must submit the claim by December 31 of the year after the year you received the service, unless timely filing was prevented by administrative operations of Government or legal incapacity, provided the claim was submitted as soon as reasonably possible.

When we need more information

Please reply promptly when we ask for additional information. We may delay processing or deny your claim if you do not respond.

1

Ask us in writing to reconsider our initial decision. You must:

a) Write to us within 6 months from the date of our decision; and

b) Send your request to us at: Universal Care
Attn: Grievance Unit
1600 E. Hill Street
Signal Hill, CA 90755-3612

and

c) Include a statement about why you believe our initial decision was wrong, based on specific benefit provisions in this brochure; and

d) Include copies of documents that support your claim, such as physicians' letters, operative reports, bills, medical records, and explanation of benefits (EOB) forms.

2

We have 30 days from the date we receive your request to:

a) Pay the claim (or, if applicable, arrange for the health care provider to give you the care); or

b) Write to you and maintain our denial - go to step 4; or

c) Ask you or your provider for more information. If we ask your provider, we will send you a copy of our request�go to step 3.

3

You or your provider must send the information so that we receive it within 60 days of our request. We will then decide within 30 more days.

If we do not receive the information within 60 days, we will decide within 30 days of the date the information was due. We will base our decision on the information we already have.

We will write to you with our decision.

4

If you do not agree with our decision, you may ask OPM to review it.

You must write to OPM within:

� 90 days after the date of our letter upholding our initial decision; or

� 120 days after you first wrote to us - if we did not answer that request in some way within 30 days; or

� 120 days after we asked for additional information.

Write to OPM at: United States Office of Personnel Management, Insurance Services Programs, Health Insurance Group 3, 1900 E Street, NW, Washington, DC 20415-3630.

The disputed claims process (continued)

Send OPM the following information:

� A statement about why you believe our decision was wrong, based on specific benefit provisions in this brochure;

� Copies of documents that support your claim, such as physicians' letters, operative reports, bills, medical records, and explanation of benefits (EOB) forms;

� Copies of all letters you sent to us about the claim;

� Copies of all letters we sent to you about the claim; and

� Your daytime phone number and the best time to call.

Note: If you want OPM to review more than one claim, you must clearly identify which documents apply to which claim.

Note: You are the only person who has a right to file a disputed claim with OPM. Parties acting as your representative, such as medical providers, must include a copy of your specific written consent with the review request.

Note: The above deadlines may be extended if you show that you were unable to meet the deadline because of reasons beyond your control.

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OPM will review your disputed claim request and will use the information it collects from you and us to decide whether our decision is correct. OPM will send you a final decision within 60 days. There are no other administrative appeals.

If you do not agree with OPM's decision, your only recourse is to sue. If you decide to sue, you must file the suit against OPM in Federal court by December 31 of the third year after the year in which you received the disputed services, drugs, or supplies or from the year in which you were denied precertification or prior approval. This is the only deadline that may not be extended.

OPM may disclose the information it collects during the review process to support their disputed claim decision. This information will become part of the court record.

You may not sue until you have completed the disputed claims process. Further, Federal law governs your lawsuit, benefits, and payment of benefits. The Federal court will base its review on the record that was before OPM when OPM decided to uphold or overturn our decision. You may recover only the amount of benefits in dispute.

When you have other health coverage

You must tell us if you or a covered family member have coverage under another group health plan or have automobile insurance that pays health care expenses without regard to fault. This is called "double coverage".

When you have double coverage, one plan normally pays its benefits in full as the primary payer and the other plan pays a reduced benefit as the secondary payer. We, like other insurers, determine which coverage is primary according to the National Association of Insurance Commissioners' guidelines.

When we are the primary payer, we will pay the benefits described in this brochure.

When we are the secondary payer, we will determine our allowance. After the primary plan pays, we will pay what is left of our allowance, up to our regular benefit. We will not pay more than our allowance.

What is Medicare?

Medicare is a Health Insurance Program for:

� People 65 years of age or older.

� Some people with disabilities under 65 years of age.

� People with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a transplant).

Medicare has two parts:

� Part A (Hospital Insurance). Most people do not have to pay for Part A. If you or your spouse worked for at least 10 years in Medicare-covered employment, you should be able to qualify for premium-free Part A insurance. (Someone who was a Federal employee on January 1, 1983 or since automatically qualifies.) Otherwise, if you are age 65 or older, you may be able to buy it. Contact 1-800-MEDICARE for more information.

� Part B (Medical Insurance). Most people pay monthly for Part B. Generally, Part B premiums are withheld from your monthly Social Security check or your retirement check.

� Should I enroll in Medicare?

The decision to enroll in Medicare is yours. We encourage you to apply for Medicare benefits 3 months before you turn age 65. It's easy. Just call the Social Security Administration toll-free number 1-800-772-1213 to set up an appointment to apply. If you do not apply for one or both Parts of Medicare, you can still be covered under the FEHB Program.

If you can get premium-free Part A coverage, we advise you to enroll in it. Most Federal employees and annuitants are entitled to Medicare Part A at age 65 without cost. When you don't have to pay premiums for Medicare Part A, it makes good sense to obtain the coverage. It can reduce your out-of-pocket expenses as well as costs to the FEHB, which can help keep FEHB premiums down.

Everyone is charged a premium for Medicare Part B coverage. The Social Security Administration can provide you with premium and benefit information. Review the information and decide if it makes sense for you to buy the Medicare Part B coverage.

If you are eligible for Medicare, you may have choices in how you get your health care. Medicare Advantage is the term used to describe the various private health plan choices available to Medicare beneficiaries. The information in the next few pages shows how we coordinate benefits with Medicare, depending on whether you are in the Original Medicare Plan or a private Medicare Advantage plan.

� The Original Medicare Plan (Part A or Part B)

The Original Medicare Plan (Original Medicare) is available everywhere in the United States. It is the way everyone used to get Medicare benefits and is the way most people get their Medicare Part A and Part B benefits now. You may go to any doctor, specialist, or hospital that accepts Medicare. The Original Medicare Plan pays its share and you pay your share. Some things are not covered under Original Medicare, like prescription drugs. (but coverage through private prescription drug plans will be available starting in 2006).

When you are enrolled in Original Medicare along with this Plan, you still need to follow the rules in this brochure for us to cover your care.

Claims process when you have the Original Medicare Plan - You probably will never have to file a claim form when you have both our Plan and the Original Medicare Plan.

� When we are the primary payer, we process the claim first.

� When Original Medicare is the primary payer, Medicare processes your claim first. In most cases, your claim will be coordinated automatically and we will then provide secondary benefits for covered charges. You will not need to do anything. To find out if you need to do something to file your claim, call us at 800-635-6668.

We waive all costs when you have the Original Medical Plan - When Original Medicare is the primary payer, we will waive all out-of-pocket costs.

(Primary Payer chart begins on next page.)

1) Have FEHB coverage on your own as an active employee or through your spouse who is an active employee

�

2) Have FEHB coverage on your own as an annuitant or through your spouse who is an annuitant

�

3) Are a reemployed annuitant with the Federal government and your position is excluded from the FEHB (your employing office will know if this is the case) and you are not covered under FEHB through your spouse under #1 above

�

4) Are a reemployed annuitant with the Federal government and your position is not excluded from the FEHB (your employing office will know if this is the case) and ...

You have FEHB coverage on your own or through your spouse who is also an active employee

�

You have FEHB coverage through your spouse who is an annuitant

�

5) Are a Federal judge who retired under title 28, U.S.C., or a Tax Court judge who retired under Section 7447 of title 26, U.S.C. (or if your covered spouse is this type of judge) and you are not covered under FEHB through your spouse under #1 above

�

6) Are enrolled in Part B only, regardless of your employment status

�for Part B services

� for other services

7) Are a former Federal employee receiving Workers' Compensation and the Office of Workers' Compensation Programs has determined that you are unable to return to duty

�*

1) Have Medicare solely based on end stage renal disease (ESRD) and...

� It is within the first 30 months of eligibility for or entitlement to Medicare due to ESRD (30-month coordination period)

�

� It is beyond the 30-month coordination period and you or a family member are still entitled to Medicare due to ESRD

�

2) Become eligible for Medicare due to ESRD while already a Medicare beneficiary and...

� This Plan was the primary payer before eligibility due to ESRD

�for 30-month coordination period

� Medicare was the primary payer before eligibility due to ESRD

�

1) Have FEHB coverage on your own as an active employee or through a family member who is an active employee

�

2) Have FEHB coverage on your own as an annuitant or through a family member who is an annuitant

�

�

� Medicare Advantage

If you are eligible for Medicare, you may choose to enroll in and get your Medicare benefits from a Medicare Advantage plan. These are private health care choices (like HMOs) in some areas of the country. In most Medicare Advantage plans, you can only go to doctors, specialists, or hospitals that are part of the plan. Medicare Advantage plans provide all the benefits that Original Medicare covers. Some cover extras, like prescription drugs. To learn more about enrolling in a Medicare Advantage plan, contact Medicare at 1-800-MEDICARE (1-800-633-4227) or at www.medicare.gov.

If you enroll in a Medicare Advantage plan, the following options are available to you:

This Plan and our Medicare Advantage plan:

This Plan and another plan's Medicare Advantage plan: You may enroll in another plan's Medicare Advantage plan and also remain enrolled in our FEHB plan. We will still provide benefits when your Medicare Advantage plan is primary, even out of the Medicare Advantage plan's network and/or service area (if you use our Plan providers), but we will not waive any of our copayments, coinsurance, or deductibles. If you enroll in a Medicare Advantage plan, tell us. We will need to know whether you are in the Original Medicare Plan or in a Medicare Advantage plan so we can correctly coordinate benefits with Medicare.

Suspended FEHB coverage to enroll in a Medicare Advantage plan: If you are an annuitant or former spouse, you can suspend your FEHB coverage to enroll in a Medicare Advantage plan, eliminating your FEHB premium. (OPM does not contribute to your Medicare Advantage plan premium.) For information on suspending your FEHB enrollment, contact your retirement office. If you later want to re-enroll in the FEHB Program, generally you may do so only at the next Open Season unless you involuntarily lose coverage or move out of the Medicare Advantage plan's service area.

TRICARE and CHAMPVA

TRICARE is the health care program for eligible dependents of military persons, and retirees of the military. TRICARE includes the CHAMPUS program. CHAMPVA provides health coverage to disabled Veterans and their eligible dependents. IF TRICARE or CHAMPVA and this Plan cover you, we pay first. See your TRICARE or CHAMPVA Health Benefits Advisor if you have questions about these programs.

Suspended FEHB coverage to enroll in TRICARE or CHAMPVA: If you are an annuitant or former spouse, you can suspend your FEHB coverage to enroll in one of these programs, eliminating your FEHB premium. (OPM does not contribute to any applicable plan premiums.) For information on suspending your FEHB enrollment, contact your retirement office. If you later want to re-enroll in the FEHB Program, generally you may do so only at the next Open Season unless you involuntarily lose coverage under the program.

Workers' Compensation

We do not cover services that:

� You need because of a workplace-related illness or injury that the Office of Workers' Compensation Programs (OWCP) or a similar Federal or State agency determines they must provide; or

� OWCP or a similar agency pays for through a third-party injury settlement or other similar proceeding that is based on a claim you filed under OWCP or similar laws.

Once OWCP or similar agency pays its maximum benefits for your treatment, we will cover your care.

Medicaid

When you have this Plan and Medicaid, we pay first.

Suspended FEHB coverage to enroll in Medicaid or a similar State-sponsored program of medical assistance: If you are an annuitant or former spouse, you can suspend your FEHB coverage to enroll in one of these State programs, eliminating your FEHB premium. For information on suspending your FEHB enrollment, contact your retirement office. If you later want to re-enroll in the FEHB Program, generally you may do so only at the next Open Season unless you involuntarily lose coverage under the State program.

When other Government agencies are responsible for your care

We do not cover services and supplies when a local, State, or Federal government agency directly or indirectly pays for them.

When others are responsible for injuries

When you receive money to compensate you for medical or hospital care for injuries or illness caused by another person, you must reimburse us for any expenses we paid. However, we will cover the cost of treatment that exceeds the amount you received in the settlement.

If you do not seek damages you must agree to let us try. This is called subrogation. If you need more information, contact us for our subrogation procedures.

If you have a malpractice claim

If you have a malpractice claim because of services you did or did not receive from a plan provider, it must go to binding arbitration. Contact Universal Care at 800-635-6668 about how to begin the binding arbitration process.

Calendar year

January 1 through December 31 of the same year. For new enrollees, the calendar year begins on the effective date of their enrollment and ends on December 31 of the same year.

Coinsurance

Coinsurance is the percentage of our allowance that you must pay for your care. You may also be responsible for additional amounts. See page 12.

Copayment

A copayment is a fixed amount of money you pay when you receive covered services. See page 12.

Covered services

Care we provide benefits for, as described in this brochure.

Custodial care

Personal services required to assist a Member in meeting the requirements of daily living. Such services include, without limitation, assistance in walking, getting in or out of bed, bathing, dressing, feeding, or using the lavatory, preparation of special diets and supervision of medication schedules. Custodial care does not require the continuing attention of trained medical or paramedical personnel. Custodial care that lasts 90 days or more or less is sometimes known as Long term care.

Deductible

A deductible is a fixed amount of covered expenses you must incur for certain covered services and supplies before we start paying benefits for those services. See page 12.

Experimental or investigational services

For Universal Care to determine if a service or supply is experimental or investigational, we refer to evidence from the national medical community, which may include one or more of the following sources:

National Centers for Health Services Research; Peer-reviewed medical and scientific literature; Publications from organizations such as American Medical Association; Professionals, specialists and experts; and written protocols and consent forms used by the proposed treating facility or other facility administering substantially the same drug, device or medical treatment.

In addition, the service or supply must meet all of the following criteria:

If it is a drug or device, which cannot be lawfully marketed without the approval of the United States Food and Drug Administration ("FDA"), final approval must have been obtained at the time the drug or device is furnished. Interim FDA approvals for Phase I, II or III trial, pre-market approval applications and investigational exemptions are not sufficient. The evidence must show conclusively that the service or supply is safe, effective and medically appropriate for use in the treatment of the illness, injury or condition at issue as compared to the conventional means of treatment or diagnosis.

The service or supply must be recognized or approved in accordance with generally accepted professional medical standards. Any required approval of any federal government or agency, or any state government or agency, must have been obtained prior to the time of use.

To obtain additional information concerning how we determine whether a particular service or treatment is experimental or investigational or to obtain information on how to appeal our decision to deny a service or treatment as Experimental or Investigational, please call our Member Services Department at 800-635-6668.

Group health coverage

Health benefit coverage for a group that has met the program required eligibility requirements for participation and has health care provided by Universal Care.

Medical necessity

The medical treatment or services are required and are necessary to maintain the health of an Enrollee consistent with professionally recognized standards of care in the judgment of the physician in charge of the Enrollee's care. However, in the event the medical director must determine whether or not medical treatment or services are, or were, a Medical Necessity, (1) he shall confer with the physician in charge of such patient's care, and (2) he shall base his decision upon the standards of the medical community as they would apply to the specific situation.

Us/We

Us and We refer to Universal Care, a California Corporation that operates a health care service plan licensed by the State of California under the Knox-Keen Health Care Service Plan Act of 1975.

You

You refers to the enrollee and each covered family member.

� No pre-existing condition limitation

We will not refuse to cover the treatment of a condition you had before you enrolled in this Plan solely because you had the condition before you enrolled.

� Where you can get information about enrolling in the FEHB Program

See www.opm.gov/insure. Also, your employing or retirement office can answer your questions, and give you a Guide to Federal Employees Health Benefits Plans, brochures for other plans, and other materials you need to make an informed decision about your FEHB coverage. These materials tell you:

� When you may change your enrollment;

� How you can cover your family members;

� What happens when you transfer to another Federal agency, go on leave without pay, enter military service, or retire;

� When your enrollment ends; and

� When the next open season for enrollment begins.

We don't determine who is eligible for coverage and, in most cases, cannot change your enrollment status without information from your employing or retirement office.

� Types of coverage available for you and your family

Self Only coverage is for you alone. Self and Family coverage is for you, your spouse, and your unmarried dependent children under age 22, including any foster children or stepchildren your employing or retirement office authorizes coverage for. Under certain circumstances, you may also continue coverage for a disabled child 22 years of age or older who is incapable of self-support.

If you have a Self Only enrollment, you may change to a Self and Family enrollment if you marry, give birth, or add a child to your family. You may change your enrollment 31 days before to 60 days after that event. The Self and Family enrollment begins on the first day of the pay period in which the child is born or becomes an eligible family member. When you change to Self and Family because you marry, the change is effective on the first day of the pay period that begins after your employing office receives your enrollment form; benefits will not be available to your spouse until you marry.

Your employing or retirement office will not notify you when a family member is no longer eligible to receive benefits, nor will we. Please tell us immediately when you add or remove family members from your coverage for any reason, including divorce, or when your child under age 22 marries or turns 22.

If you or one of your family members is enrolled in one FEHB plan, that person may not be enrolled in or covered as a family member by another FEHB plan.

� Children's Equity Act

OPM has implemented the Federal Employees Health Benefits Children's Equity Act of 2000. This law mandates that you be enrolled for Self and Family coverage in the FEHB Program, if you are an employee subject to a court or administrative order requiring you to provide health benefits for your child(ren).

If this law applies to you, you must enroll for Self and Family coverage in a health plan that provides full benefits in the area where your children live or provide documentation to your employing office that you have obtained other health benefits coverage for your children. If you do not do so, your employing office will enroll you involuntarily as follows:

� If you have no FEHB coverage, your employing office will enroll you for Self and Family coverage in the Blue Cross and Blue Shield Service Benefit Plan's Basic Option;

� If you have a Self Only enrollment in a fee-for-service plan or in an HMO that serves the area where your children live, your employing office will change your enrollment to Self and Family in the same option of the same plan; or

� If you are enrolled in an HMO that does not serve the area where the children live, your employing office will change your enrollment to Self and Family in the Blue Cross and Blue Shield Service Benefit Plan's Basic Option.

As long as the court/administrative order is in effect, and you have at least one child identified in the order who is still eligible under the FEHB Program, you cannot cancel your enrollment, change to Self Only, or change to a plan that doesn't serve the area in which your children live, unless you provide documentation that you have other coverage for the children. If the court/administrative order is still in effect when you retire, and you have at least one child still eligible for FEHB coverage, you must continue your FEHB coverage into retirement (if eligible) and cannot cancel your coverage, change to Self Only, or change to a plan that doesn't serve the area in which your children live as long as the court/administrative order is in effect. Contact your employing office for further information.

� When benefits and premiums start

The benefits in this brochure are effective January 1. If you joined this Plan during Open Season, your coverage begins on the first day of your first pay period that starts on or after January 1. If you changed plans or plan options during Open Season and you receive care between January 1 and the effective date of coverage under your new plan or option, your claims will be paid according to the 2005 benefits of your old plan or option. However, if your old plan left the FEHB Program at the end of the year, you are covered under that plan's 2004 benefits until the effective date of your coverage with your new plan. Annuitants' coverage and premiums begin on January 1. If you joined at any other time during the year, your employing office will tell you the effective date of coverage.

� When you retire

When you retire, you can usually stay in the FEHB Program. Generally, you must have been enrolled in the FEHB Program for the last five years of your Federal service. If you do not meet this requirement, you may be eligible for other forms of coverage, such as Temporary Continuation of Coverage (TCC).

� When FEHB coverage ends

You will receive an additional 31 days of coverage, for no additional premium, when:

� Your enrollment ends, unless you cancel your enrollment, or

� You are a family member no longer eligible for coverage.

You may be eligible for spouse equity coverage or Temporary Continuation of Coverage (TCC), or a conversion policy (a non-FEHB individual policy.)

� Spouse equity coverage

If you are divorced from a Federal employee or annuitant, you may not continue to get benefits under your former spouse's enrollment. This is the case even when the court has ordered your former spouse to provide health coverage to you. But, you may be eligible for your own FEHB coverage under the spouse equity law or Temporary Continuation of Coverage (TCC). If you are recently divorced or are anticipating a divorce, contact your ex-spouse's employing or retirement office to get RI 70-5, the Guide To Federal Employees Health Benefits Plans for Temporary Continuation of Coverage and Former Spouse Enrollees, or other information about your coverage choices. You can also download the guide from OPM's Web site, www.opm.gov/insure.

� Temporary Continuation of Coverage (TCC)

If you leave Federal service, or if you lose coverage because you no longer qualify as a family member, you may be eligible for Temporary Continuation of Coverage (TCC). For example, you can receive TCC if you are not able to continue your FEHB enrollment after you retire, if you lose your Federal job, if you are a covered dependent child and you turn 22 or marry, etc.

You may not elect TCC if you are fired from your Federal job due to gross misconduct.

Enrolling in TCC. Get the RI 79-27, which describes TCC, and the RI 70-5, the Guide to Federal Employees Health Benefits Plans for Temporary Continuation of Coverage and Former Spouse Enrollees, from your employing or retirement office or from www.opm.gov/insure. It explains what you have to do to enroll.

� Converting to individual coverage

You may convert to a non-FEHB individual policy if:

� Your coverage under TCC or the spouse equity law ends (If you canceled your coverage or did not pay your premium, you cannot convert);

� You decided not to receive coverage under TCC or the spouse equity law; or

� You are not eligible for coverage under TCC or the spouse equity law.

If you leave Federal service, your employing office will notify you of your right to convert. You must apply in writing to us within 31 days after you receive this notice. However, if you are a family member who is losing coverage, the employing or retirement office will not notify you. You must apply in writing to us within 31 days after you are no longer eligible for coverage.

Your benefits and rates will differ from those under the FEHB Program; however, you will not have to answer questions about your health, and we will not impose a waiting period or limit your coverage due to pre-existing conditions.

� Getting a Certificate of Group Health Plan Coverage

The Health Insurance Portability and Accountability Act of 1996 (HIPAA) is a Federal law that offers limited Federal protections for health coverage availability and continuity to people who lose employer group coverage. If you leave the FEHB Program, we will give you a Certificate of Group Health Plan Coverage that indicates how long you have been enrolled with us. You can use this certificate when getting health insurance or other health care coverage. Your new plan must reduce or eliminate waiting periods, limitations, or exclusions for health related conditions based on the information in the certificate, as long as you enroll within 63 days of losing coverage under this Plan. If you have been enrolled with us for less than 12 months, but were previously enrolled in other FEHB plans, you may also request a certificate from those plans.

For more information, get OPM pamphlet RI 79-27, Temporary Continuation of Coverage (TCC) under the FEHB Program. See also the FEHB Web site at www.opm.gov/insure/archive/health; refer to the "TCC and HIPAA" frequently asked questions. These highlight HIPAA rules, such as the requirement that Federal employees must exhaust any TCC eligibility as one condition for guaranteed access to individual health coverage under HIPAA, and information about Federal and State agencies you can contact for more information.

Important information

OPM wants to make sure you are aware of two Federal programs that complement the FEHB Program. First, the Federal Flexible Spending Account (FSA) Program, also known as FSAFEDS, lets you set aside pre-tax money to pay for health and dependent care expenses. The result can be a discount of 20% to more than 40% on services you routinely pay for out-of-pocket. Second, the Federal Long Term Care Insurance Program (FLTCIP) helps cover long term care costs, which are not covered under the FEHB.

� What is an FSA?

It is a tax-favored benefit that allows you to set aside pre-tax money from your paychecks to pay for a variety of eligible expenses. By using an FSA, you can reduce your taxes while paying for services you would have to pay for anyway, producing a discount that can be over 40%.

There are two types of FSAs offered by FSAFEDS:

Health Care Flexible Spending Account (HCFSA)

� Covers eligible health care expenses not reimbursed by this Plan, or any other medical, dental, or vision care plan you or your dependents may have.

� Eligible dependents for this account include anyone you claim on your Federal Income Tax return as a qualified dependent under the U.S. Internal Revenue Service (IRS) definition and/or with whom you jointly file your Federal Income Tax return, even if you don't have self and family health benefits coverage. Note: The IRS has a broader definition of a "family member" than is used under the FEHB Program to provide benefits by your FEHB Plan.

� The maximum annual amount that can be allotted for the HCFSA is $4,000. Note: The Federal workforce includes a number of employees married to each other. If each spouse/employee is eligible for FEHB coverage, both may enroll for a HCFSA up to the maximum of $4,000 each ($8,000 total). Both are covered under each other's HCFSA. The minimum annual amount is $250.

Dependent Care Flexible Spending Account (DCFSA)

� Covers eligible dependent care expenses incurred so you, and your spouse, if married, can work, look for work, or attend school full-time.

� Qualifying dependents for this account include your dependent children under age 13, or any person of age whom you claim as a dependent on your Federal Income tax return (and who is mentally or physically incapable of self care).

� The maximum annual amount that can be allotted for the DCFSA is $5,000. The minimum annual amount is $250. Note: The IRS limits contributions to a DCFSA. For single taxpayers and taxpayers filing a joint return, the maximum is $5,000 per year. For taxpayers who file their taxes separately with a spouse, the maximum is $2,500 per year. The limit includes any child care subsidy you may receive.

� Enroll during Open Season

You must make an election to enroll in an FSA during the 2005 FEHB Open Season. Even if you enrolled during 2004, you must make a new election to continue participating in 2005. Enrollment is easy!

� Online: visit www.fsafeds.com and click on Enroll

� Telephone: call an FSAFEDS Benefits Counselor toll-free at 1-877-FSAFEDS (372-3337), Monday through Friday, from 9 a.m. until 9 p.m. Eastern Time. TTY: 1-800-952-0450.

What is SHPS?

SHPS is a third-party administrator hired by OPM to manage the FSAFEDS Program. SHPS is the largest FSA administrator in the nation and is responsible for enrollment, claims processing, customer service, and day-to-day operations of FSAFEDS.

Who is eligible to enroll?

If you are a Federal employee eligible for FEHB - even if you're not enrolled in FEHB - you can choose to participate in either, or both, of the FSAs. However, if you enroll in a High Deductible Health Plan (HDHP) with a Health Savings Account (HSA), you are not eligible to participate in an HCFSA.

Almost all Federal employees are eligible to enroll for a DCFSA. The only exception is intermittent (also called "when actually employed" [WAE]) employees expected to work fewer than 180 days during the year.

Note: FSAFEDS is the FSA Program established for all Executive Branch employees and Legislative Branch employees whose employers have signed on to participate. Under IRS law, FSAs are not available to annuitants. Also, the U.S. Postal Service and the Judicial Branch, among others, have their own plans with slightly different rules. However, the advantages of having an FSA are the same regardless of the agency for which you work for.

� How much should I contribute to my FSA?

Plan carefully when deciding how much to contribute to an FSA. Because of the tax benefits of an FSA provides, the IRS places strict guidelines on how the money can be used. Under current IRS tax rules, you are required to forfeit any money for which you did not incur an eligible expense under your FSA account(s) during the Plan Year. This is known as the "Use-it-or-Lose-it" rule. You will have until April 30, following the end of the Plan Year to submit claims for your eligible expenses incurred from January 1through December 31. For example if you enroll in FSAFEDS for the 2005 Plan Year, you will have until April 30, 2006 to submit claims for eligible expenses.

The FSAFEDS Calculator at www.fsafeds.com will help you plan your FSA allocations and provide an estimate of your tax savings based on your individual situation.

� What can my HCFSA pay for?

Every FEHB plan includes cost sharing features, such as deductibles you must meet before the Plan provides benefits, coinsurance or copayments that you pay when you and the Plan share costs, and medical services and supplies that are not covered by the Plan and for which you must pay. The out-of-pocket costs are summarized on page 12 and detailed throughout this brochure. Your HCFSA will reimburse you when those costs are for medical care that you, your spouse and/or your dependents receive that is NOT covered or reimbursed by this FEHB Plan or any other coverage that you have.

Under this plan, typical out-of-pocket expenses include: $10 copay per office visit for services provided in the office

� Under this Plan, typical out-of-pocket expenses include: $10 copay per office visit for services provided in the office

� $300 copay per admission for services provided by hospital

� 10% of allowed charges for durable medical equipment

Under this plan, typical expenses not covered include:

� Routine sonograms to determine fetal age, size or sex

� Long-term rehabilitative therapy

� Cosmetic surgery- any surgical procedure (or any portion of a procedure) performed primarily to improve physical appearance through change in bodily form

The IRS governs expenses reimbursable by a HCFSA. See Publication 502 for a comprehensive list of tax-deductible medical expenses. Note: While you will see insurance premiums listed in Publication 502, they are NOT a reimbursable expense for FSA purposes. Publication 502 can be found on the IRS Web site at http://www.irs.gov/pub/irs-pdf/p502.pdf. The FSAFEDS Web site also has a comprehensive list of eligible expenses at: www.fsafeds.com/fsafeds/eligibleexpenses.asp. If you do not see your service or expense listed please call an FSAFEDS Benefits Counselor at 1-877-FSAFEDS (372-3337), who will be able to answer your specific questions.

� Tax savings with an FSA

An FSA lets you allot money for eligible expenses before your agency deducts taxes from your paycheck. This means the amount of income that your taxes are based on will be lower, so your tax liability will be less. Without an FSA, you would still pay for these expenses, but you would do so using money remaining in your paycheck after Federal (and often state and local) taxes are deducted. The following chart illustrates a typical tax savings example:

$50,000

$50,000

$2,000

-$0-

$48,000

$50,000

$13,807

$14,383

-$0-

$2,000

$34,193

$33,617

$576

-$0-

Note: This example is intended to demonstrate a typical tax savings based on 27% Federal and 7.65% FICA taxes. Actual savings will vary based upon the retirement system in which you are enrolled (CSRS or FERS), your state of residence, and your individual tax situation. In this example, the individual received $2,000 in services for $1,424 - a discount of almost 36%! You may also wish to consult a tax professional for more information on the tax implications of an FSA.

� Tax credits and deductions

You cannot claim expenses on your Federal income tax return if you receive reimbursement for them from your HCFSA or DCFSA. Below are some guidelines that may help you decide whether to participate in FSAFEDS.

Health care expenses

The HCFSA is Federal Income tax-free from the first dollar. In addition, you may be reimbursed from the HCFSA at any time during the year for expenses up to the annual amount you've elected to contribute.

Only health care expenses exceeding 7.5% of your adjusted gross income are eligible to be deducted on your Federal Income Tax return. Using the example listed on the prior page, only health care expenses exceeding $3,750 (7.5% of $50,000) would be eligible to be deducted on your Federal Income Tax return. In addition, money set aside through an HCFSA is also exempt from FICA taxes. This exemption is not available on your Federal Income Tax return.

Paperless Reimbursement -This plan participates in the FSAFEDS paperless reimbursement program. When you enroll for your HCFSA, you will have the opportunity to enroll for paperless reimbursement. If you do, we will send FSAFEDS the information they need to reimburse you for your out-of-pocket costs so you can avoid filing paper claims.

{Note to Plan: delete this section if you do not participate in paperless reimbursement.}

Dependent care expenses

The DCFSA generally allows many families to save more than they would with the Federal tax credit for dependent care expenses. Note that you may only be reimbursed from the DCFSA up to your current account balance. If you file a claim for more than your current balance, it will be held until additional payroll allotments have been added to your account.

Visit www.fsafeds.com and download the Dependent Care Tax Credit Worksheet from the Forms and Literature page to help you determine what is best for your situation. You may also wish to consult a tax professional for more details.

� Does it cost me anything to participate in FSAFEDS?

No. Section 1127 of the National Defense Authorization Act (Public Law 108-136) requires agencies that offer FSAFEDS to employees to cover the administrative fee(s) on behalf of their employees. However, remember that participating in FSAFEDS can cost you money if you don't spend your entire account balance by the end of the Plan Year, resulting in the forfeiture of funds remaining in your account (the IRS "use-it-or-lose-it" rule).

� Contact us

To learn more or to enroll, please visit the FSAFEDS Web site at www.fsafeds.com, or contact SHPS directly via email or by phone. FSAFEDS Benefits Counselors are available Monday through Friday, from 9:00 a.m. until 9:00 p.m. Eastern Time.

� E-mail: fsafeds@shps.net

� Telephone: 1-877-FSAFEDS (1-877-372-3337)

� TTY: 1-800-952-0450

� It's important protection

Why should you consider applying for coverage under the Federal Long Term Care Insurance Program (FLTCIP)?

� FEHB plans do not cover the cost of long term care. Also called "custodial care," long term care is help you receive to perform activities of daily living - such as bathing or dressing yourself - or supervision you receive because of a severe cognitive impairment. The need for long term care can strike anyone at any age and the cost of care can be substantial. need for long term care can strike anyone at any age and the cost of care can be substantial.

� The Federal Long Term Care Insurance Program can help protect you from the potentially high cost of long term care. This coverage gives you options regarding the type of care you receive and where you receive it. With FLTCIP coverage, you won't have to worry about relying on your loved ones to provide or pay for your care.

� It's to your advantage to apply sooner rather than later. In order to qualify for coverage under the FLTCIP, you must apply and pass a medical screening (called underwriting). Certain medical conditions, or combinations of conditions, will prevent some people from being approved for coverage. By applying while you're in good health, you could avoid the risk of having a future change in your health disqualify you from obtaining coverage. Also, the younger you are when you apply, the lower your premiums.

� You don't have to wait for an open season to apply. The Federal Long Term Care Insurance Program accepts applications from eligible persons at any time. You will have to complete a full underwriting application, which asks a number of questions about your health. However, if you are a new or newly eligible employee, you (and your spouse, if applicable) have a limited opportunity to apply using the abbreviated underwriting application, which asks fewer questions. Newly married spouses of employees also have a limited opportunity to apply using abbreviated underwriting.

� Qualified relatives are also eligible to apply. Qualified relatives include spouses and adult children of employees and annuitants, and parents, parents-in-law, and stepparents of employees.

� To find out more and to request an application

Call 1-800-LTC-FEDS (1-800-582-3337) (TTY 1-800-843-3557) or visit www.ltcfeds.com.

Medical services provided by physicians:

� Diagnostic and treatment services provided in the office

Office visit copay: $10 primary care; $10 specialist

15

Services provided by a hospital:

� Inpatient.............................................................................

� Outpatient..........................................................................

$100 per visit

28

Emergency benefits

� In-area...............................................................................

� Out-of-area........................................................................

$50 per emergency room benefit

31

Mental health and substance abuse treatment............................

Regular cost sharing

32

Prescription drugs

Generic drugs..........................................................................

$10

35

Dental care............................................................................. .

No benefit.

37

Vision care............................................................................. .

$10 copay

20

Special features: 24-hour nurse line, services for the deaf, high risk pregnancies, centers of excellence, travel benefit

36

Protection against catastrophic costs

(your catastrophic protection out-of-pocket maximum).............

Nothing after $2,000/Self Only or $4,000/Family enrollment per year

Some costs do not count toward this protection

12