Exhibit 3.  CMS-HCC Demographic Model for New Enrollees 1/

Age/Sex Factors,Non-Medicaid & Not Originally Disabled,Medicaid & Not Originally Disabled,Non-Medicaid & Originally Disabled,Medicaid & Originally Disabled
Female0_34,0.397,0.816,0,0
Female35_44,0.601,1.019,0,0
Female45_54,0.725,1.144,0,0
Female55_59,0.846,1.265,0,0
Female60_64,1.009,1.428,0,0
Female65,0.486,1.004,1.1,1.619
Female66,0.534,1.037,1.168,1.671
Female67,0.595,1.098,1.228,1.732
Female68,0.612,1.115,1.246,1.749
Female69,0.653,1.157,1.287,1.79
Female70_74,0.773,1.262,1.39,1.858
Female75_79,0.979,1.332,1.491,1.875
Female80_84,1.148,1.502,1.66,1.998
Female85_89,1.289,1.643,1.801,2.15
Female90_94,1.376,1.73,1.888,2.283
Female95_GT,1.217,1.571,1.888,2.283
Male0_34,0.296,0.692,0,0
Male35_44,0.501,0.896,0,0
Male45_54,0.648,1.043,0,0
Male55_59,0.821,1.216,0,0
Male60_64,0.939,1.334,0,0
Male65,0.528,1.049,1.042,1.563
Male66,0.591,1.074,1.1,1.583
Male67,0.651,1.134,1.16,1.643
Male68,0.704,1.187,1.213,1.696
Male69,0.739,1.222,1.248,1.731
Male70_74,0.919,1.317,1.374,1.772
Male75_79,1.168,1.577,1.588,1.996
Male80_84,1.352,1.76,1.771,2.18
Male85_89,1.565,1.973,1.984,2.392
Male90_94,1.664,2.072,2.083,2.492
Male95_GT,1.655,2.064,2.083,2.492

"1/ For payment purposes, a new enrollee is a beneficiary who did not have 12 months of Part B eligibility in the calendar year prior to the payment year."

Source: RTI Analysis of 1999/2000 Medicare 5% sample