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2.5% Increase Notice

ANNOUNCEMENT OF PAYMENT INCREASE
July 1, 2006

Memphis Managed Care Corporation, dba TLC Family Care Healthplan ("TLC") is pleased to announce that the Bureau of Tenncare has appropriated a 2.5% increase in payments for providers. This increase shall be applied across the board to all providers for dates of service July 1, 2006, and following.

TLC is working to modify its claims payment system to ensure that this increase is reflected in reimbursements applicable to those dates of service.

If you have any questions regarding TLC's coverage and reimbursement, please contact your Provider Relations Representative.

As always, thank you for your participation with TLC Family Care Healthplan.


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