<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
(Mark One):
(x) ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934.
For the fiscal year ended December 31, 1995
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1994.
For the transition period from _________ to _____________
Commission File Number 1-10540
A. Full title of the plan and the address of the plan, if different from that
of the issuer named below: Foundation Health Corporation Profit Sharing
and 401(k) Plan (Amended and Restated effective January 1, 1994)
B. Name of issuer of the securities held pursuant to the plan and the address
of its principal executive office:
FOUNDATION HEALTH CORPORATION
3400 DATA DRIVE
RANCHO CORDOVA, CA 95670
<PAGE>
FOUNDATION HEALTH CORPORATION
INDEX TO FORM 11-K
PAGE
Audited Financial Statements 1
Independent Auditors' Consent 23
Signatures 24
<PAGE>
FOUNDATION HEALTH CORPORATION
PROFIT SHARING AND 401(K) PLAN
Financial Statements for the Years Ended December 31, 1995 and 1994 and
Independent Auditors' Report
(1)
<PAGE>
FOUNDATION HEALTH CORPORATION
PROFIT SHARING AND 401(K) PLAN
TABLE OF CONTENTS
PAGE
Independent Auditors' Report 3
Financial Statements as of December 31, 1995 and
1994 and for The Years Then Ended:
Statements of Net Assets Available for Plan Benefits 4
Statements of Changes in Net Assets Available for Plan Benefits 5
Notes to Financial Statements 6-13
Supplemental Schedules as of December 31, 1995 and
for The Year Then Ended:
Item 27a - Schedule of Assets Held for Investment Purposes 15
Item 27d - Schedule of Reportable Transactions 21
(2)
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Trustee and Participants
of the Foundation Health Corporation
Profit Sharing and 401(k) Plan
We have audited the accompanying statements of net assets available for plan
benefits of the Foundation Health Corporation Profit Sharing and 401(k) Plan
(the "Plan") as of December 31, 1995 and 1994, and the related statements of
changes in net assets available for plan benefits for the years then ended.
These financial statements are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the net assets available for plan benefits of the Plan at December 31,
1995 and 1994, and the changes in net assets available for plan benefits for the
years then ended in conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules listed in the
foregoing Table of Contents are presented for the purpose of additional analysis
and are not a required part of the basic financial statements, but are
supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. These schedules are the responsibility of the Plan's
management. Such schedules have been subjected to the auditing procedures
applied in the audit of the basic financial statements and, in our opinion, are
fairly stated in all material respects when considered in relation to the basic
financial statements taken as a whole.
DELOITTE & TOUCHE LLP
Sacramento, California
June 27, 1996
(3)
<PAGE>
FOUNDATION HEALTH CORPORATION
PROFIT SHARING AND 401(K) PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
DECEMBER 31
---------------------------
ASSETS: 1995 1994
---- ----
Investments, at fair value:
Interest bearing cash $ 1,804,131 $ 1,204,364
Common stock:
Foundation Health Corporation 9,064,428 4,871,278
Other 14,701,114 7,685,829
United States government securities 4,392,769 2,899,409
Corporate bonds 415,491 352,293
Mutual funds 19,182,718 12,833,688
Loans to participants 1,885,026 1,338,023
----------- -----------
Total investments 51,445,677 31,184,884
----------- -----------
Contributions receivable:
Employer 131,167 163,260
Employee 364,979 458,383
----------- -----------
496,146 621,643
----------- -----------
Total assets 51,941,823 31,806,527
----------- -----------
LIABILITIES:
Forfeitures payable 170,601 77,298
Refunds payable 300 68,998
----------- -----------
Total liabilities 170,901 146,296
----------- -----------
Net assets available for plan benefits $51,770,922 $31,660,231
----------- -----------
----------- -----------
See accompanying notes to the financial statements.
-4-
<PAGE>
FOUNDATION HEALTH CORPORATION
PROFIT SHARING AND 401(K) PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
DECEMBER 31
---------------------------
ASSETS: 1995 1994
---- ----
Additions:
Contributions:
Employee $11,612,572 $ 8,307,555
Employer 3,484,188 3,909,947
Investment income 1,750,489 1,153,466
Net appreciation (depreciation) in fair
value of investments 6,303,265 (1,649,177)
----------- -----------
23,150,514 11,721,791
Deductions:
Benefits paid to participants 3,881,590 3,552,639
----------- -----------
Net increase in plan assets 19,268,924 8,169,152
Net assets available for plan benefits:
Beginning of year 31,660,231 21,733,120
Transfer of assets (Note 5) 841,767 1,757,959
----------- -----------
End of year $51,770,922 $31,660,231
----------- -----------
----------- -----------
See accompanying notes to financial statements.
-5-
<PAGE>
FOUNDATION HEALTH CORPORATION
PROFIT SHARING AND 401(K) PLAN
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - DESCRIPTION OF PLAN
The Foundation Health Corporation Profit Sharing and 401(k) Plan (the "Plan")
enables participants to save for retirement through voluntary contributions that
are salary deferred and invested on a self-directed basis in a broad base of
investment funds. Included in these investment options is the opportunity for
employees to acquire a proprietary interest in the growth of Foundation Health
Corporation (the "Company" or "FHC") through stock ownership.
The Compensation and Organizational Committee of the Company's Board of
Directors is the Administrator of the Plan. The Company believes that the Plan
will continue without interruption but reserves the right to terminate the Plan
at any time. In the event of termination of the Plan, all participants will
become fully vested.
The following description of the Plan provides only general information.
Participants should refer to the plan document for a more complete description
of the Plan's provisions.
CONTRIBUTIONS TO THE PLAN
Each eligible participant may elect a pre-tax contribution rate from 2% to 10%
(or from 2% to 6% for highly compensated employees as defined by the Internal
Revenue Service ("IRS")) of his or her compensation subject to the annual cap on
elective deferrals set by the Internal Revenue Code ("IRC"). The participant
may also make contributions from 2% to 10% (or from 2% to 6% for highly
compensated employees as defined by the IRS) of his or her compensation on an
after-tax basis. The Company makes discretionary matching contributions equal
to 0% to 100% of up to the first 6% of each participant's base compensation.
ELIGIBILITY AND VESTING
All employees of the Company and certain subsidiaries who are not covered by
a collective bargaining agreement and have met specified service requirements
are eligible to participate in the Plan. All participants are immediately
100% vested in their contributions plus any investment earnings thereon.
Participants employed by the Company prior to January 1, 1995 or who are
employed by certain subsidiaries acquired by the Company in November 1994
vest in employer contributions 33 1/3% per year commencing on the first
anniversary of the participant's date of hire. Participants employed by the
Company on or after January 1, 1995 vest in employer contributions 20% per
year commencing on the first anniversary of the participant's date of hire.
-6-
<PAGE>
In addition, all participants who have attained the age of 65, who terminate
employment and have attained the age of 55, or who are terminated from
employment by reason of death or disability become 100% vested in employer
contributions and investment earnings thereon.
BENEFITS
Benefits are distributable from Plan assets upon retirement, death, disability,
termination of employment or termination of the Plan. Benefits are based upon
the participant's vested share of Plan assets. Upon termination of employment,
other than as described under "Eligibility and vesting" above, the unvested
portion of employer contributions and investment earnings thereon is forfeited
by the participant and can be used to reduce future employer contributions.
PARTICIPANT LOANS
A participant may borrow up to half of the fair value of the vested portion of
his or her account in the form of a loan with a minimum principal of $1,000
subject to a maximum of $50,000. Loans bear interest at prime plus 1% and
generally must be repaid within five years.
ALLOCATION OF EARNINGS
Earnings of each investment fund are allocated on a monthly basis to that fund's
participants in proportion to each participant's share of fund assets at the
beginning of the month.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The financial statements of the Plan are prepared under the accrual method.
INVESTMENTS
Participants allocate their contributions in any combination among eight
investment funds held by Merrill Lynch Trust Company ("Merrill Lynch" or
"ML"). Investments are stated at their fair market value measured by quoted
market prices. Gains or losses on the sale of investments are recorded on
the settlement date as the difference between proceeds received and current
value at the beginning of the year or cost if acquired during the year
determined by the specific identification method. Net appreciation or
depreciation in the fair value of investments includes net unrealized market
appreciation and depreciation of investments and net realized gains and
losses on the sale of investments during the period. Investment income
includes dividends and interest paid on the Plan's investments.
DISTRIBUTIONS OF BENEFITS TO PARTICIPANTS
Distributions of benefits to participants are based upon the most recent
valuation of the Plan's assets. Such valuations are made by the Trustee at
least annually but no more frequently than monthly.
Benefits are recorded when paid. As of December 31, 1995 and 1994, benefits of
$1,609,719 and $302,505, respectively, were due to participants who have
withdrawn from participation in the Plan.
-7-
<PAGE>
ADMINISTRATIVE EXPENSES
All administrative expenses are paid by the Plan. No indirect expenses are
allocated to the Plan by the Company.
NOTE 3 - INCOME TAXES
The Company has received a favorable determination letter dated October 27, 1995
from the Internal Revenue Service as to the qualified status of the Plan as
amended and restated on December 22, 1994. On September 27, 1995, the
Compensation and Organization Committee of the Company's Board of Directors
approved certain technical changes to the Plan effective August 1, 1995 to
conform the Plan to current requirements of the IRC. The Company is of the
opinion that the Plan continues to fulfill the requirements of the IRC and the
Employee Retirement Income Security Act of 1974, and that the trust, which forms
a part of the Plan, is exempt from income tax. Accordingly, no provision has
been made for federal or state income taxes.
NOTE 4 - REFUNDS PAYABLE
Due to insufficient participation in the Plan by nonhighly compensated
employees, employer and employee contributions of $68,998 for 1994 and $300
for 1995, were refunded in subsequent years to certain highly compensated
Plan participants to meet the nondiscrimination tests described in IRC
Section 401.
NOTE 5 - PLAN MERGERS
In December 1995, the net assets of the Noetics Group/Reviewco 401(k) Plan and
Trust were transferred into the Plan.
The Company acquired Business Insurance Corporation and its wholly-owned
subsidiary, California Compensation Insurance Company in August 1993. In
February 1994, the net assets of the California Compensation Salary Deferral
Plan were transferred into the Plan.
In December 1994, the net assets of the Amerimed Employees' Profit Sharing
401(k) Plan and Trust were transferred into the Plan.
NOTE 6 - RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
A reconciliation of net assets available for plan benefits per the financial
statements to the Form 5500 at December 31, 1995 is as follows:
Net assets available for plan benefits per the
financial statements $ 51,770,922
Less: Amounts allocated to withdrawing participants (1,609,719)
-------------
Net assets available for plan benefits per the Form 5500 $ 50,161,203
-------------
-------------
-8-
<PAGE>
A reconciliation of benefits paid to participants per the financial statements
to the Form 5500 for the year ended December 31, 1995 is as follows:
Benefits paid to participants per the financial statements $ 3,881,590
Add: Amounts allocated to withdrawing participants
at December 31, 1995 1,609,719
-------------
Benefits paid to participants per the Form 5500 $ 5,491,309
-------------
-------------
Amounts allocated to withdrawing participants are recorded on the Form 5500 for
benefit claims that have been processed and approved for payment prior to
December 31 but not yet paid as of that date.
NOTE 7 - RELATED PARTY TRANSACTIONS
Certain Plan investments are in shares of mutual funds managed by Merrill Lynch.
Merrill Lynch is the trustee as defined by the Plan, and therefore, these
transactions qualify as party-in-interest. In addition, transactions with the
Company's common stock qualify as party-in-interest.
Plan investments are held and managed by Merrill Lynch in commingled funds with
the assets and investments of the Intergroup of Utah 401(k) Plan, which is
sponsored by an affiliate of FHC. These financial statements only represent the
assets and activity related to the Plan.
-9-
<PAGE>
NOTE 8 - NET ASSETS BY FUND AVAILABLE FOR PLAN BENEFITS AND CHANGES IN NET
ASSETS BY FUND AVAILABLE FOR BENEFITS
NET ASSETS BY FUND AVAILABLE FOR PLAN BENEFITS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
GLOBAL FIXED
FHC GROWTH INCOME BALANCED RETIREMENT
STOCK INVESTMENT INVESTMENT INVESTMENT PRESERVATION
FUND FUND FUND FUND FUND
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Investments, at fair value:
Interest bearing cash $ 53,481 $ 42,671 $ 159,626 $ 335,281 $ (14,393)
Common stock:
Foundation Health
Corporation 9,064,428
Other 5,071,719
United States government
securities 3,850,385 542,384
Corporate bonds 415,491
Mutual funds 9,151,524 6,651,156
Loans to participants
----------- ----------- ----------- ----------- -----------
Total investments 9,117,909 9,194,195 4,010,011 6,364,875 6,636,763
----------- ----------- ----------- ----------- -----------
Contributions receivable:
Employer 24,599 23,123 10,486 16,194 20,843
Employee 68,450 64,341 29,177 45,061 57,996
----------- ----------- ----------- ----------- -----------
93,049 87,464 39,663 61,255 78,839
----------- ----------- ----------- ----------- -----------
Total assets 9,210,958 9,281,659 4,049,674 6,426,130 6,715,602
----------- ----------- ----------- ----------- -----------
Forfeitures payable 31,372 31,634 13,796 21,963 22,835
Refunds payable 300
----------- ----------- ----------- ----------- -----------
Total liabilities 31,372 31,634 13,796 21,963 23,135
----------- ----------- ----------- ----------- -----------
Net assets available for
plan benefits $ 9,179,586 $ 9,250,025 $ 4,035,878 $ 6,404,167 $ 6,692,467
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
<CAPTION>
EQUITY EQUITY
GROWTH INTERNATIONAL GROWTH
INVESTMENT EQUITY INVESTMENT LOAN
FUND FUND FUND - #2 FUND TOTAL
---- ---- --------- ---- -----
<S> <C> <C> <C> <C> <C>
Investments, at fair value:
Interest bearing cash $ 322,072 $ 82,899 $ 817,428 $ 5,066 $ 1,804,131
Common stock:
Foundation Health
Corporation 9,064,428
Other 6,776,196 2,853,199 14,701,114
United States government
securities 4,392,769
Corporate bonds 415,491
Mutual funds 3,380,038 19,182,718
Loans to participants 1,885,026 1,885,026
----------- ----------- ----------- ----------- -----------
Total investments 7,098,268 3,462,937 3,670,627 1,890,092 51,445,677
----------- ----------- ----------- ----------- -----------
Contributions receivable:
Employer 18,340 8,621 8,961 131,167
Employee 51,032 23,987 24,935 364,979
----------- ----------- ----------- ----------- -----------
69,372 32,608 33,896 496,146
----------- ----------- ----------- ----------- -----------
Total assets 7,167,640 3,495,545 3,704,523 1,890,092 51,941,823
----------- ----------- ----------- ----------- -----------
Forfeitures payable 24,422 11,915 12,664 170,601
Refunds payable 300
----------- ----------- ----------- ----------- -----------
Total liabilities 24,422 11,915 12,664 170,901
----------- ----------- ----------- ----------- -----------
Net assets available for
plan benefits $ 7,143,218 $ 3,483,630 $ 3,691,859 $ 1,890,092 $51,770,922
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
</TABLE>
-10-
<PAGE>
NOTE 8 - CONTINUED
CHANGES IN NET ASSETS BY FUND AVAILABLE FOR PLAN BENEFITS
YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
GLOBAL FIXED
FHC GROWTH INCOME BALANCED RETIREMENT
STOCK INVESTMENT INVESTMENT INVESTMENT PRESERVATION
FUND FUND FUND FUND FUND
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Additions:
Contributions:
Employee 2,114,858 1,808,725 1,040,617 1,439,359 1,577,658
Employer 618,720 664,181 281,235 397,692 275,189
Investment income 2,807 732,326 209,683 140,504 300,319
Net appreciation in fair
value of investments 2,279,893 887,738 220,667 1,159,611 (31,055)
---------- ---------- ---------- ---------- ---------
5,016,278 4,092,970 1,752,202 3,137,166 2,122,111
Deductions:
Benefits paid to
participants (600,571) (1,079,162) (478,928) (613,577) (949,031)
Interfund transfers (143,352) (495,780) (59,929) 225,986 244,458
---------- ---------- ---------- ---------- ---------
Net increase (decrease) in
plan assets 4,272,355 2,518,028 1,213,345 2,749,575 1,417,538
Net assets available for plan
benefits:
Beginning of year 4,907,231 6,731,997 2,822,533 3,654,592 4,433,162
Transfer of assets 841,767
---------- ---------- ---------- ---------- ---------
End of year $9,179,586 $9,250,025 $4,035,878 $6,404,167 $6,692,467
---------- ---------- ---------- ---------- ---------
---------- ---------- ---------- ---------- ---------
<CAPTION>
EQUITY EQUITY
GROWTH INTERNATIONAL GROWTH
INVESTMENT EQUITY INVESTMENT LOAN
FUND FUND FUND - #2 FUND TOTAL
---- ---- --------- ---- -----
<S> <C> <C> <C> <C> <C>
Additions:
Contributions:
Employee 1,768,327 1,343,614 1,273,287 (753,873) 11,612,572
Employer 515,174 397,349 334,648 3,484,188
Investment income 82,116 202,181 78,197 2,356 1,750,489
Net appreciation in fair
value of investments 1,187,195 82,603 516,613 6,303,265
---------- ---------- ---------- ----------- ----------
3,552,812 2,025,747 2,202,745 (751,517) 23,150,514
Deductions:
Benefits paid to
participants (844,719) (221,661) (184,883) 1,090,942 (3,881,590)
Interfund transfers 211,190 (116,684) 134,111 0
---------- ---------- ---------- ----------- ----------
Net increase (decrease) in
plan assets 2,919,283 1,687,402 2,151,973 339,425 19,268,924
Net assets available for plan
benefits:
Beginning of year 4,223,935 1,796,228 1,539,886 1,550,667 31,660,231
Transfer of assets 841,767
---------- ---------- ---------- ----------- -----------
End of year $7,143,218 $3,483,630 $3,691,859 $1,890,092 $51,770,922
---------- ---------- ---------- ----------- -----------
---------- ---------- ---------- ----------- -----------
</TABLE>
-11-
<PAGE>
NOTE 8 - CONTINUED
NET ASSETS BY FUND AVAILABLE FOR PLAN BENEFITS
DECEMBER 31, 1994
<TABLE>
<CAPTION>
GLOBAL FIXED
FHC GROWTH INCOME BALANCED RETIREMENT
STOCK INVESTMENT INVESTMENT INVESTMENT PRESERVATION
FUND FUND FUND FUND FUND
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Investments, at fair value:
Interest bearing cash $ (40,239) $ (63,820) $ 64,214 $ 98,019 $ 14,050
Common stock:
Foundation Health
Corporation 4,871,278
Other 2,968,452
United States government
securities 2,712,265 187,144
Corporate bonds 336,670
Mutual funds 6,680,466 4,380,038
Loans to participants
----------- ----------- ----------- ----------- -----------
Total investments 4,831,039 6,616,646 2,776,479 3,590,285 4,394,088
----------- ----------- ----------- ----------- -----------
Contributions receivable:
Employer 27,754 39,182 14,693 21,224 13,061
Employee 77,925 110,012 41,254 59,590 36,671
----------- ----------- ----------- ----------- -----------
105,679 149,194 55,947 80,814 49,732
----------- ----------- ----------- ----------- -----------
Total assets 4,936,718 6,765,840 2,832,426 3,671,099 4,443,820
----------- ----------- ----------- ----------- -----------
Forfeitures payable 12,368 20,097 6,957 10,049 5,411
Refunds payable 17,119 13,746 2,936 6,458 5,247
----------- ----------- ----------- ----------- -----------
Total liabilities 29,487 33,843 9,893 16,507 10,658
----------- ----------- ----------- ----------- -----------
Net assets available for
plan benefits $ 4,907,231 $ 6,731,997 $ 2,822,533 $ 3,654,592 $ 4,433,162
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
<CAPTION>
EQUITY EQUITY
GROWTH INTERNATIONAL GROWTH
INVESTMENT EQUITY INVESTMENT LOAN
FUND FUND FUND - #2 FUND TOTAL
---- ---- --------- ---- -----
<S> <C> <C> <C> <C> <C>
Investments, at fair value:
Interest bearing cash $ 119,607 $ (3,182) $ 803,071 $ 212,644 $ 1,204,364
Common stock:
Foundation Health
Corporation 4,871,278
Other 4,024,801 692,576 7,685,829
United States government
securities 2,899,409
Corporate bonds 15,623 352,293
Mutual funds 1,773,184 12,833,688
Loans to participants 1,338,023 1,338,023
----------- ----------- ----------- ----------- -----------
Total investments 4,144,408 1,770,002 1,511,270 1,550,667 31,184,884
----------- ----------- ----------- ----------- -----------
Contributions receivable:
Employer 27,754 9,796 9,796 163,260
Employee 77,925 27,503 27,503 458,383
----------- ----------- ----------- ----------- -----------
105,679 37,299 37,299 621,643
----------- ----------- ----------- ----------- -----------
Total assets 4,250,087 1,807,301 1,548,569 1,550,667 31,806,527
----------- ----------- ----------- ----------- -----------
Forfeitures payable 13,913 4,638 3,865 77,298
Refunds payable 12,239 6,435 4,818 68,998
----------- ----------- ----------- ----------- -----------
Total liabilities 26,152 11,073 8,683 146,296
----------- ----------- ----------- ----------- -----------
Net assets available for
plan benefits $ 4,223,935 $ 1,796,228 $ 1,539,886 $ 1,550,667 $31,660,231
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
</TABLE>
-12-
<PAGE>
NOTE 8 - CONTINUED
CHANGES IN NET ASSETS BY FUND AVAILABLE FOR PLAN BENEFITS
DECEMBER 31, 1994
<TABLE>
<CAPTION>
GLOBAL FIXED
FHC GROWTH INCOME BALANCED RETIREMENT
STOCK INVESTMENT INVESTMENT INVESTMENT PRESERVATION
FUND FUND FUND FUND FUND
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Additions:
Contributions:
Employee $1,684,032 $1,880,974 $ 762,334 $1,055,905 $ 801,066
Employer 692,580 1,008,439 357,775 509,974 276,086
Investment income 2,205 416,933 151,854 120,873 203,200
Net depreciation in
fair value of
investments (200,170) (642,725) (270,285) (137,402) (24,201)
----------- ----------- ----------- ----------- -----------
2,178,647 2,663,621 1,001,678 1,549,350 1,256,151
Deductions:
Benefits paid to
participants (902,673) (1,076,093) (366,850) (565,434) (481,518)
Interfund transfers (574,359) 284,266 70,609 (1,081,813) 689,988
----------- ----------- ----------- ----------- -----------
Net increase (decrease)
in plan assets 701,615 1,871,794 705,437 (97,897) 1,464,621
Net assets available for
plan benefits:
Beginning of year 4,024,682 4,477,179 1,986,422 3,523,446 2,478,080
Transfer of assets 180,934 383,024 130,674 229,043 490,461
----------- ----------- ----------- ----------- -----------
End of year $4,907,231 $6,731,997 $2,822,533 $3,654,592 $4,433,162
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
<CAPTION>
EQUITY EQUITY
GROWTH INTERNATIONAL GROWTH
INVESTMENT EQUITY INVESTMENT LOAN
FUND FUND FUND - #2 FUND TOTAL
---- ---- --------- ---- -----
<S> <C> <C> <C> <C> <C>
Additions:
Contributions:
Employee $1,338,398 $ 676,890 $ 541,050 $ (433,094) $8,307,555
Employer 695,535 206,912 162,646 3,909,947
Investment income 80,652 144,169 31,664 1,916 1,153,466
Net depreciation in
fair value of
investments (139,019) (188,915) (46,460) (1,649,177)
----------- ----------- ----------- ----------- -----------
1,975,566 839,056 688,900 (431,178) 11,721,791
Deductions:
Benefits paid to
participants (809,543) (180,135) (129,789) 959,396 (3,552,639)
Interfund transfers (1,553,210) 1,105,247 953,967 105,305 -
----------- ----------- ----------- ----------- -----------
Net increase (decrease)
in plan assets (387,187) 1,764,168 1,513,078 633,523 8,169,152
Net assets available for
plan benefits:
Beginning of year 4,326,167 917,144 21,733,120
Transfer of assets 284,955 32,060 26,808 1,757,959
----------- ----------- ----------- ----------- -----------
End of year $4,223,935 $1,796,228 $1,539,886 $1,550,667 $31,660,231
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
</TABLE>
-13-
<PAGE>
SUPPLEMENTAL SCHEDULES
-14-
<PAGE>
FOUNDATION HEALTH CORPORATION
PROFIT SHARING AND 401(K) PLAN
ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1995
<TABLE>
<CAPTION>
QUANTITY/ INVESTMENT INTEREST MATURITY CURRENT
PAR TYPE DESCRIPTION RATE DATE COST VALUE
<C> <C> <S> <C> <C> <C> <C>
FHC STOCK FUND
209,607 Common Stocks Foundation Health Corporation* - - $6,596,683 $9,065,503
23,736 Money Funds Interest bearing cash - - 53,487 53,487
---------- ----------
6,650,170 9,118,990
---------- ----------
Less: Intergroup of Utah Assets (788) (1,081)
---------- ----------
$6,649,382 $9,117,909
---------- ----------
---------- ----------
GLOBAL GROWTH INVESTMENT FUND
660,379 Mutual Funds ML Global Allocation Fund* - - $8,818,229 $9,166,054
25,887 Money Funds Interest bearing cash - - 42,738 42,738
---------- ----------
8,860,967 9,208,792
---------- ----------
Less: Intergroup of Utah Assets (10,621) (14,597)
---------- ----------
$8,850,346 $9,194,195
---------- ----------
---------- ----------
FIXED INCOME INVESTMENT FUND
1,014,000 Government Bonds FNMA Discount note 0.0% 1996 $1,010,162 $1,011,769
24,947 Government Bonds FNMA P250414 7.0% 2025 24,764 25,150
911,381 Government Bonds FNMA P303585 7.0% 2025 902,836 918,781
70,000 Government Bonds FNMA P326756 7.0% 2025 69,917 70,284
317,000 Government Bonds U.S. Treasury Bond 6.25% 2023 310,098 326,164
190,000 Government Bonds U.S. Treasury Note 6.5% 2005 195,095 202,409
1,400,000 Government Bonds U.S. Treasury Note 5.75% 2000 1,403,586 1,420,118
---------- ----------
3,916,458 3,974,675
137,362 Money Funds Interest bearing cash - - 164,779 164,779
---------- ----------
4,081,237 4,139,454
---------- ----------
Less: Intergroup of Utah Assets (130,126) (129,443)
---------- ----------
$3,951,111 $4,010,011
---------- ----------
---------- ----------
</TABLE>
*Party-in-interest
-15-
<PAGE>
FOUNDATION HEALTH CORPORATION
PROFIT SHARING AND 401(K) PLAN
ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1995
(Continued)
<TABLE>
<CAPTION>
QUANTITY/ INVESTMENT INTEREST MATURITY CURRENT
PAR TYPE DESCRIPTION RATE DATE COST VALUE
<C> <C> <S> <C> <C> <C> <C>
BALANCED INVESTMENT FUND
2,210 Common Stocks American International Group, Inc. - - $136,848 $204,425
2,695 Common Stocks AT&T Corporation - - 141,413 174,501
1,885 Common Stocks Automatic Data Processing - - 101,299 139,961
2,695 Common Stocks Coca Cola - - 125,576 200,104
2,425 Common Stocks Colgate Palmolive - - 171,524 170,356
1,079 Common Stocks Emerson Electric Company - - 66,381 88,208
1,346 Common Stocks Federal Home Loan Mortgage - - 78,738 112,391
1,350 Common Stocks Federal National Mortgage Association - - 109,639 167,231
3,235 Common Stocks General Electric - - 160,541 232,920
3,505 Common Stocks Gillette Company - - 148,099 182,698
3,505 Common Stocks GTE Corporation - - 121,392 153,782
2,425 Common Stocks Hewlett Packard Corporation - - 133,292 203,094
4,854 Common Stocks Home Depot - - 206,518 231,779
2,155 Common Stocks International Flavors & Fragrance - - 84,214 103,440
4,042 Common Stocks Johnson & Johnson - - 206,118 345,591
3,506 Common Stocks McDonalds Corporation - - 110,599 158,208
2,965 Common Stocks Merck & Company, Inc. - - 118,620 194,578
1,347 Common Stocks Mobil Corp. DEL - - 110,465 150,527
2,695 Common Stocks JP Morgan & Company, Inc. - - 181,934 216,274
2,155 Common Stocks Motorola, Inc. - - 128,054 122,835
2,155 Common Stocks Nations Bank Corporation - - 109,523 150,042
3,237 Common Stocks Pepsico, Inc. - - 132,367 180,867
2,695 Common Stocks Pfizer Inc. - - 97,872 169,785
2,155 Common Stocks Proctor & Gamble - - 123,480 178,865
915 Common Stocks Royal Dutch Pete New York, NY 5GUILDR - - 92,872 129,129
2,695 Common Stocks SBC Communications, Inc. - - 114,564 154,289
2,695 Common Stocks Schering Plough Corporation - - 90,847 147,551
7,280 Common Stocks Wal Mart Stores, Inc. - - 194,915 161,980
2,425 Common Stocks Walt Disney Company Del - - 106,717 142,772
---------- ----------
3,704,421 4,968,183
---------- ----------
210,000 Government Bonds U.S. Treasury Bills 0.0% 1996 199,866 200,865
50,000 Government Bonds U.S. Treasury Note 5.5% 1997 48,891 50,250
75,000 Government Bonds U.S. Treasury Notes 5.625% 1997 74,391 75,481
50,000 Government Bonds U.S. Treasury Note 4.75% 1998 49,414 49,352
10,000 Government Bonds U.S. Treasury Note 7.875% 2004 10,103 11,575
150,000 Government Bonds U.S. Treasury Note 6.25% 2000 151,844 155,039
---------- ----------
534,509 542,562
---------- ----------
</TABLE>
*Party-in-interest
-16-
<PAGE>
FOUNDATION HEALTH CORPORATION
PROFIT SHARING AND 401(K) PLAN
ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1995
(Continued)
<TABLE>
<CAPTION>
QUANTITY/ INVESTMENT INTEREST MATURITY CURRENT
PAR TYPE DESCRIPTION RATE DATE COST VALUE
<C> <C> <S> <C> <C> <C> <C>
25,000 Corporate Bonds Associates Corporation
North American Notes 6.75% 1999 24,566 25,695
50,000 Corporate Bonds Florida Power & Light
Company First Mortgage 5.375% 2000 49,938 49,235
50,000 Corporate Bonds Florida Power Corporation 6.0% 2003 49,597 49,880
65,000 Corporate Bonds H J Heinz Company Notes 6.75% 1999 64,935 67,317
45,000 Corporate Bonds Norwest Financial, Inc.
Senior Notes 6.875% 2000 44,358 46,859
30,000 Corporate Bonds WMX Technologies, Inc.
Notes 6,375% 2003 29,987 30,464
50,000 Corporate Bonds Wal Mart Stores Notes 5.5% 1997 48,766 49,978
40,000 Corporate Bonds Wal Mart Stores Notes 7.5% 2004 39,722 43,857
50,000 Corporate Bonds Wal Mart Stores Notes 6.75% 2002 51,481 52,343
---------- ----------
403,350 415,628
436,875 Money Funds Interest bearing cash - - 440,575 440,575
---------- ----------
5,082,855 6,366,948
Less: Intergroup of Utah Assets (2,073) (2,073)
---------- ----------
$5,080,782 $6,364,875
---------- ----------
---------- ----------
RETIREMENT PRESERVATION TRUST FUND
6,700,650 Mutual Funds Merrill Lynch R P Trust* - - $6,700,650 $6,700,650
4,915 Money Funds Interest bearing cash - - (14,500) (14,500)
---------- ----------
6,686,150 6,686,150
Less: Intergroup of Utah Assets (49,387) (49,387)
---------- ----------
$6,636,763 $6,636,763
---------- ----------
---------- ----------
</TABLE>
*Party-in-interest
-17-
<PAGE>
FOUNDATION HEALTH CORPORATION
PROFIT SHARING AND 401(K) PLAN
ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1995
(Continued)
<TABLE>
<CAPTION>
QUANTITY/ INVESTMENT INTEREST MATURITY CURRENT
PAR TYPE DESCRIPTION RATE DATE COST VALUE
<C> <C> <S> <C> <C> <C> <C>
EQUITY GROWTH INVESTMENT FUND
6,350 Common Stocks Albertson's Inc. - - $189,731 $208,756
2,550 Common Stocks Automatic Data Processing - - 131,325 189,338
7,500 Common Stocks Autozone, Inc. - - 179,063 216,563
8,200 Common Stocks Carnival Cruise Lines - - 138,306 199,875
4,125 Common Stocks Circus Circus Enterprises - - 146,566 114,984
2,650 Common Stocks CISCO Systems, Inc. - - 130,249 197,756
3,200 Common Stocks Coca Cola Com - - 132,229 237,600
3,850 Common Stocks Columbia/HCA Healthcare Corp. - - 169,400 195,388
3,000 Common Stocks Duracell International, Inc. - - 135,000 155,250
6,050 Common Stocks Ericsson L Mitel Co. - - 83,493 117,975
2,700 Common Stocks Federal Express Corp. - - 190,833 199,463
2,400 Common Stocks Federal Home Loan Mortgage Vtg - - 100,650 200,400
1,550 Common Stocks Federal National Mortgage Assoc. - - 107,650 192,006
2,950 Common Stocks First Data Corporation - - 111,510 197,281
3,000 Common Stocks General Electric - - 162,375 216,000
3,100 Common Stocks General Motors Corp. CLE - - 124,775 161,200
4,000 Common Stocks Gillette Corporation - - 125,762 208,500
4,100 Common Stocks Home Depot, Inc. - - 168,338 195,775
3,650 Common Stocks Intel Corp. - - 227,488 207,138
4,400 Common Stocks Interpublic Group of CO - - 153,325 190,850
2,300 Common Stocks Johnson & Johnson - - 102,056 196,650
3,400 Common Stocks LSI Logic Corp. - - 213,553 176,850
5,000 Common Stocks McDonalds Corporation - - 125,994 225,625
2,800 Common Stocks Merck & Company, Inc. - - 107,908 183,750
1,900 Common Stocks Microsoft Corporation - - 97,812 166,725
2,500 Common Stocks Motorola, Inc. - - 130,938 142,500
2,400 Common Stocks Nations Bank Corporation - - 171,451 167,100
6,000 Common Stocks News Corp. Ltd. - - 124,500 128,250
3,700 Common Stocks Pepsico, Inc. - - 167,130 206,738
3,400 Common Stocks Pfizer, Inc. - - 117,907 214,200
1,500 Common Stocks Phillip Morris Cos Inc. - - 101,389 135,375
3,750 Common Stocks Reuters Holding Plc Adr - - 148,738 206,719
11,600 Common Stocks Wal Mart Stores, Inc. - - 310,844 258,100
3,850 Common Stocks Walt Disney Company Del - - 167,875 226,669
975 Common Stocks Wells Fargo & Co. - - 178,441 210,600
3,750 Common Stocks Wm Wrigley Jr. Cos - - 170,683 196,875
---------- ----------
5,345,287 6,844,824
293,186 Money Funds Interest bearing cash - - 325,334 325,334
---------- ----------
5,670,621 7,170,158
Less: Intergroup of Utah Assets (56,854) (71,890)
---------- ----------
$5,613,767 $7,098,268
---------- ----------
---------- ----------
</TABLE>
*Party-in-interest
-18-
<PAGE>
FOUNDATION HEALTH CORPORATION
PROFIT SHARING AND 401(K) PLAN
ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1995
(Continued)
<TABLE>
<CAPTION>
QUANTITY/ INVESTMENT INTEREST MATURITY CURRENT
PAR TYPE DESCRIPTION RATE DATE COST VALUE
<C> <C> <S> <C> <C> <C> <C>
EQUITY GROWTH INVESTMENT FUND - #2
1,621 Common Stocks Ace Ltd. - - $46,704 $64,435
2,964 Common Stocks Airtouch Communications - - 77,446 83,363
1,347 Common Stocks AK STL Holding Corp. - - 39,063 46,135
370 Common Stocks Amgen Inc. Com PV 40.01 - - 8,048 21,969
706 Common Stocks American Intl Group, Inc. - - 52,996 65,305
716 Common Stocks AT&T Cap Corp. - - 16,378 27,387
2,091 Common Stocks Avatar Holdings, Inc. - - 76,927 73,185
2,052 Common Stocks Bank of New York, NY Co. Inc. - - 62,853 100,035
1,153 Common Stocks Bankers Trust, NY - - 73,139 76,674
426 Common Stocks Boeing Company - - 18,528 33,388
1,643 Common Stocks Cellular Communications - - 88,722 81,739
973 Common Stocks Columbia/HCA Healthcare - - 47,312 49,379
798 Common Stocks Conagra, Inc. - - 24,433 32,917
1,869 Common Stocks DSC Communications Group - - 70,069 68,919
1,042 Common Stocks EI Dupont - - 57,831 72,810
3,928 Common Stocks Enserch Corp. - - 58,332 63,830
666 Common Stocks Federal National Mortgage Assoc. - - 50,368 82,501
3,340 Common Stocks Ford Motor Company - - 95,028 96,443
1,273 Common Stocks Gannett Co. - - 67,640 78,130
1,429 Common Stocks Genentech, Inc. - - 67,878 75,737
1,363 Common Stocks General Electric - - 73,281 98,136
161 Common Stocks General RE Corp. - - 17,670 24,955
2,215 Common Stocks Genetics Inst, Inc. - - 82,020 118,503
1,398 Common Stocks GTE Corp. - - 44,008 61,337
2,935 Common Stocks Horsham Corp. Sub Vtg - - 37,861 39,256
912 Common Stocks Intel Corporation - - 27,494 51,756
877 Common Stocks JP Morgan & Co. Inc. - - 55,395 70,379
2,108 Common Stocks Nabisco Holdings, Corp. - - 56,916 68,773
1,561 Common Stocks Newmont Mining Corp. - - 61,119 70,830
4,116 Common Stocks News Corp. Ltd. - - 81,814 87,980
2,401 Common Stocks Node Affiliates - - 60,625 71,730
1,834 Common Stocks Noel Group, Inc. - - 12,838 11,921
2,571 Common Stocks Partnerre Holdings, Ltd. - - 54,325 70,703
6,636 Common Stocks Santa Fe Energy Res Inc. - - 58,895 63,872
2,868 Common Stocks Security Capital Pacific - - 48,813 56,643
872 Common Stocks Smithline B Rep - - 33,283 48,396
3,528 Common Stocks Tenet Healthcare Corp. - - 53,510 72,765
2,519 Common Stocks Time Warner, Inc. - - 95,303 95,092
1,283 Common Stocks Tosco Corp. - - 37,543 48,914
4,357 Common Stocks Unocal Corporation - - 122,062 126,898
</TABLE>
*Party-in-interest
-19-
<PAGE>
FOUNDATION HEALTH CORPORATION
PROFIT SHARING AND 401(K) PLAN
ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1995
(Continued)
<TABLE>
<CAPTION>
QUANTITY/ INVESTMENT INTEREST MATURITY CURRENT
PAR TYPE DESCRIPTION RATE DATE COST VALUE
<C> <C> <S> <C> <C> <C> <C>
1,194 Common Stocks Unum Corp. - - 50,393 65,670
1,390 Common Stocks USX Marathon Group - - 23,804 27,105
119 Common Stocks Washington Post Co. - - 27,801 33,558
---------- ----------
2,316,468 2,779,453
2,899 Preferred Stocks AK Steel Holding Corp. - - 81,979 97,117
794,555 Money Funds Interest bearing cash - - 824,124 824,124
---------- ----------
3,222,571 3,700,694
Less: Intergroup of Utah Assets (26,193) (30,067)
---------- ----------
$3,196,378 $3,670,627
---------- ----------
---------- ----------
INTERNATIONAL EQUITY FUND
370,504 Mutual Funds Templeton Foreign Mutual Fund - - $3,476,436 $3,401,231
24,412 Money Funds Interest bearing cash - - 83,419 83,419
---------- ----------
3,559,855 3,484,650
Less: Intergroup of Utah Assets (22,182) (21,713)
---------- ----------
$3,537,673 $3,462,937
---------- ----------
---------- ----------
LOAN FUND
712 Loans Loans to participants 6-10% 1-15 yrs $1,890,092 $1,890,092
---------- ----------
---------- ----------
</TABLE>
*Party-in-interest
-20-
<PAGE>
FOUNDATION HEALTH CORPORATION
PROFIT SHARING AND 401(K) PLAN
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
CURRENT VALUE
TOTAL TOTAL -------------------------
NUMBER NUMBER PURCHASE SALES
IDENTITY OF FUND DESCRIPTION OF ASSETS PURCHASES SALES PRICE PRICE
<C> <S> <C> <C> <C> <C>
SERIES OF TRANSACTIONS
FHC Stock Fund* Foundation Health Corporation
Common Stock 75 26 $2,515,052 $ 654,101
FHC Stock Fund* ML Cash Management Account
Money Fund 73 66 2,531,463 2,521,334
Equity Growth ML Cash Management Account
Investment Fund Money Fund 120 52 2,174,630 2,615,071
Fixed Income ML Cash Management Account
Investment Fund Money Fund 92 69 5,308,531 5,257,256
Fixed Income FHLMCG00317 3 11 1,419,188 1,460,357
Investment Fund
Fixed Income FNMA Discount Note 1 1 1,129,042 1,134,000
Investment Fund
Fixed Income GNM P780195 1 15 1,140,005 1,164,043
Investment Fund
Balanced ML Cash Management Account
Investment Fund Money Fund 123 41 2,300,712 2,035,003
Retirement
Preservation
Trust Fund* Merrill Lynch RP Trust 307 56 4,479,315 2,220,582
<CAPTION>
TOTAL TOTAL
NUMBER NUMBER
COST OF NET GAIN OF SHARES OF SHARES
IDENTITY OF FUND DESCRIPTION OF ASSETS ASSETS SOLD (LOSS) PURCHASED SOLD
<C> <S> <C> <C> <C> <C>
SERIES OF TRANSACTIONS
FHC Stock Fund* Foundation Health Corporation
Common Stock $ 665,157 $ (11,056) 74,078 21,609
FHC Stock Fund* ML Cash Management Account
Money Fund 2,521,334 - 2,531,463 2,521,334
Equity Growth ML Cash Management Account
Investment Fund Money Fund 2,615,071 - 2,714,630 2,615,071
Fixed Income ML Cash Management Account
Investment Fund Money Fund 5,257,256 - 5,308,531 5,527,256
Fixed Income FHLMCG00317 1,419,188 41,169 1,460,000 1,460,000
Investment Fund
Fixed Income FNMA Discount Note 1,129,042 4,958 1,134,000 1,134,000
Investment Fund
Fixed Income GNM P780195 1,159,766 4,277 1,110,000 1,110,000
Investment Fund
Balanced ML Cash Management Account
Investment Fund Money Fund 2,035,003 - 2,300,712 2,035,003
Retirement
Preservation
Trust Fund* Merrill Lynch RP Trust 2,220,582 - 4,479,314 2,220,582
</TABLE>
*Party-in-interest
-21-
<PAGE>
FOUNDATION HEALTH CORPORATION
PROFIT SHARING AND 401(K) PLAN
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
CURRENT VALUE
TOTAL TOTAL -------------------------
NUMBER NUMBER PURCHASE SALES
IDENTITY OF FUND DESCRIPTION OF ASSETS PURCHASES SALES PRICE PRICE
<C> <S> <C> <C> <C> <C>
SERIES OF TRANSACTIONS (CONTINUED)
Retirement ML Cash Management Account
Preservation Money Fund
Trust Fund* 74 72 3,778,805 3,765,072
Global Growth Merril Lynch Global
Investment Fund* Allocation Fund - Class A 58 28 3,447,928 1,869,193
Global Growth* ML Cash Management
Investment Fund Account Money Fund 72 60 3,203,171 3,211,040
Equity Growth II ML Cash Management Account
Investment Fund Money Fund 127 52 1,953,275 2,074,896
International Fund Templeton Foreign 69 25 1,752,033 194,435
International Fund ML Cash Management Account 73 64 1,453,898 1,430,147
Money Fund
Loan Fund ML Cash Management Account 85 65 1,564,716 1,559,651
Money Fund
<CAPTION>
TOTAL TOTAL
NUMBER NUMBER
COST OF NET GAIN OF SHARES OF SHARES
IDENTITY OF FUND DESCRIPTION OF ASSETS ASSETS SOLD (LOSS) PURCHASED SOLD
<C> <S> <C> <C> <C> <C>
SERIES OF TRANSACTIONS (CONTINUED)
Retirement ML Cash Management Account
Preservation Money Fund
Trust Fund* 3,765,072 - 3,778,805 3,765,072
Global Growth Merril Lynch Global
Investment Fund* Allocation Fund - Class A 1,853,677 $15,516 255,178 140,351
Global Growth* ML Cash Management
Investment Fund Account Money Fund 3,211,040 - 3,203,171 3,211,040
Equity Growth II ML Cash Management Account
Investment Fund Money Fund 2,074,896 - 1,953,275 2,074,896
International Fund Templeton Foreign 198,865 (4,430) 191,730 21,076
International Fund ML Cash Management Account 1,430,147 - 1,453,898 1,430,147
Money Fund
Loan Fund ML Cash Management Account 1,559,651 - 1,564,716 1,559,651
Money Fund
</TABLE>
-22-
<PAGE>
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in Registration Statement
No. 33-36847 of Foundation Health Corporation on Form S-8 of our report dated
June 27, 1996, appearing in this Annual Report on Form 11-K of the Foundation
Health Corporation Profit Sharing and 401(k) Plan for the year ended December
31, 1995.
DELOITTE & TOUCHE LLP
Sacramento, California
June 27, 1996
-23-
<PAGE>
SIGNATURES
THE PLAN. Pursuant to the requirements of the Securities and Exchange Act of
1934, the trustees (or other persons who administer the employee benefit plan)
have duly cuased this annual report to be signed on its behalf of the
undersigned hereunto duly authorized.
FOUNDATION HEALTH CORPORATION
PROFIT SHARING AND 401(k) PLAN
(Name of Plan)
June 27, 1996 /s/ JEFFREY L. ELDER
- - ------------------------------ -----------------------------------
Date Jeffrey L. Elder
Senior Vice President and
Chief Financial Officer
-24-
