Coalition America owns more than 300,000 direct contracts with individual physicians,
physician groups, and hospitals nationwide, and we are aggressively expanding this
number to offer even more value to the employer groups, TPAs, labor unions, and
large insurance carriers we have as clients. The quality and value of our products
and services are enhanced by the number of directly negotiated contracts we have
in place.

Direct contracts allow the contract holder to manage the fee schedule and ensure
it is applied properly; lets the contract holder manage the active/inactive status
of the contract; and ensures that online provider directories available to members
are up-to-date and accurate.

Coalition America secures contract agreements directly with providers in each of
three cases:

• providers contracted with our NPPN network
• providers contracted with our PlanCare America network
• providers contracted through our negotiation service

With over 300,000 directly contracted providers, Coalition America has one of the
largest directly managed PPO networks in the country. We supplement this panel
of providers using partnerships with other PPO networks where their contracts
allow access to "non-logo'ed" discounts.

Coalition America continues to actively seek out providers in areas where our
coverage can be improved on behalf of our clients. Providers benefit from these
contractual arrangements since the contracts help motivate patients to use
contracted providers when they need medical service.