Statement from XLHealth concerning phase down of Medicare Health Support

May 1, 2008

On January 29, 2008 the Centers for Medicare & Medicaid Services (CMS) announced that Phase I of Medicare Health Support (MHS) pilot program will begin phase down activities in conjunction with the completion of the pilot program after three years of operations. XLHealth has concluded its program in Tennessee as of July 31st, 2008.

The conclusion of the pilot phase of Medicare Health Support will not affect participating beneficiaries Medicare benefits. Participants will continue to receive their existing Fee for Service Medicare benefits.

In the coming year, CMS will continue to monitor and evaluate all MHS programs. The results of the independent evaluation will be used to determine if a program (or program components) meets the statutory conditions for expansion. If the program proves successful in improving clinical quality measures, beneficiary satisfaction, and achieving financial savings, then CMS could authorize a Phase II expansion which would make the program available to more Medicare beneficiaries.

XLHealth would like to thank all of those who had a role in supporting the Medicare Health Support program of Tennessee over the life of the pilot program. In particular, we thank our participating Medicare beneficiaries who demonstrated a clear commitment to maintaining their health via their engagement and continued involvement in the program.

In addition, we wish to acknowledge and thank the Tennessee healthcare providers and community organizations who worked with us to provide the best support possible to program participants.

For more information on XLHealth, please visit: http://www.xlhealth.com