Summary Annual Report
Health Benefits Program for Eligible Employees

This is a summary of the annual report of the Health Benefits Program for Eligible Employees of the University of Pennsylvania, EIN 23-1352685, Plan No. 503, for the period January 1, 2001 through December 31, 2001. The annual report has been filed with the Pension and Welfare Benefits Administration, as required under the Employee Retirement Income Security Act of 1974 (ERISA).

Insurance Information
The plan has contracts with Aetna/USHealthcare, Inc. and subsidiaries, UPHS Point of Service, Independence Blue Cross/Pennsylvania Blue Shield and Keystone Health Plan East to pay medical claims incurred under the terms of the plan. The total premiums paid for the plan year ending December 31, 2001 were $50,548,722.

Because some are so-called "experience-rated" contracts, the premium costs are affected by, among other things, the number and size of claims. Of the total insurance premiums paid for the plan year ending December 31, 2001, the premiums paid under such "experience-rated" contracts were $28,543,802 and the total of all benefit claims paid under these experience-rated contracts during the plan year was $38,124,017.

Your Rights To Additional Information
You have the right to receive a copy of the full annual report, or any part thereof, on request. Insurance information, including sales commissions paid by insurance carriers, is included in that report. To obtain a copy of the full annual report, or any part thereof, write or call the office of the Plan Administrator, c/o Joanne M. Blythe, Retirement Manager, University of Pennsylvania, 3401 Walnut Street, Suite 527A, Philadelphia, PA 19104-6228, (215) 898-9947. The charge to cover copying costs will be $5 for the full annual report or 25 cents per page for any part thereof.

You also have the right to receive from the plan administrator, on request and at no charge, a statement of the assets and liabilities of the plan and accompanying notes, or a statement of income and expenses of the plan and accompanying notes, or both. If you request a copy of the full annual report from the plan administrator, these two statements and accompanying notes will be included as part of that report.

You also have the legally protected right under ERISA to examine the annual reports in the offices of the Employer at the address for the Plan Administrator, above, and at the U.S. Department of Labor in Washington, D.C., or to obtain a copy from the U.S. Department of Labor upon payment of copying costs. Requests to the Department should be addressed to: Public Disclosure Room, Room N-5638, Pension and Welfare Benefits Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington, D.C. 20210.

--Division of Human Resources