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FAEGRE BAKER DANIELS LLP 1700 Lincoln Street, Suite 3200 Denver, Colorado 80203 Joel A. Glover (State Bar No. 034018) Direct Dial: 303.607.3648 Direct Fax: 303.607.3600 Email: Joel.Glover@FaegreBD.com

Attorneys for Receiver

SUPERIOR COURT OF ARIZONA

COUNTY OF MARICOPA

STATE OF ARIZONA, ex rel. KEITH SCHRAAD, Interim Director of Insurance,

Plaintiff, vs.

COMPASS COOPERATIVE MUTUAL HEALTH NETWORK, INC., dba MERITUS MUTUAL HEALTH PARTNERS, an Arizona corporation; and COMPASS COOPERATIVE HEALTH PLAN, INC., dba MERITUS HEALTH PARTNERS, an Arizona corporation,

Defendants.

No. CV2016-011872 PETITION NO. 24 NOTICE OF CHANGE OF LAW FIRM AND CONTACT INFORMATION AND PETITION FOR ENTRY OF ORDER APPROVING COMPENSATION FOR LEGAL COUNSEL (Assigned to The Honorable Daniel Martin)

Keith Schraad, Interim Director of Insurance, as Receiver (hereinafter “Receiver”)

of Compass Cooperative Mutual Health Network, Inc. doing business as Meritus Mutual

Health Partners (“Meritus Mutual”) and Compass Cooperative Health Plan, Inc. dba

Meritus Health Partners (“MHP”) (collectively the “Meritus Companies”), appointed

pursuant to A.R.S. § 20-611, et seq., hereby submits this Notice of Change of Law Firm

and Contact Information, and Petition for Entry of Order Approving Compensation for

Legal Counsel, for the reasons set forth herein.

1. In an Order dated August 10, 2016, this Court placed Meritus Mutual and

MHP into receivership under orders of liquidation.

Chris DeRose, Clerk of Court*** Electronically Filed ***

K. Dyer, Deputy10/23/2018 12:14:00 PM

Filing ID 9822356

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2. In an Order dated August 24, 2016, this Court entered Order Re Petition

No. 1 – Petition for Entry of Order Approving Compensation for Special Deputy Receiver

and for Legal Counsel which order, among other things, approved of the compensation

fixed by the Receiver under an engagement agreement with Lewis Roca Rothgerber

Christie LLP as legal counsel.

3. Effective September 17, 2018, attorney of record in this matter, Joel Glover

(State Bar No. 034018) joined the law firm Faegre Baker Daniels LLP and his contact

information changed. This submission provides notice of that change in contact

information as Joel Glover, now with the Faegre Baker Daniels LLP law firm, continues as

counsel for the Receiver. The contact information for Joel Glover is as follows:

Joel Glover

Faegre Baker Daniels LLP

1700 Lincoln Street, Suite 3200

Denver, Colorado 80203

Telephone: (303) 607-3648

Facsimile: (303) 607-3600

Email: Joel.Glover@FaegreBD.com

4. Pursuant to A.R.S. § 20-623.01(A), the Receiver has engaged the law firm of

Faegre Baker Daniels LLP to act as legal counsel for the Receiver of the Meritus

Companies. A copy of the Engagement Agreement is attached hereto as Exhibit A. Joel

Glover has been lead counsel since the commencement of the receivership and this

engagement allows that role to continue. In conjunction with Mr. Glover’s experience, the

law firm of Faegre Baker Daniels LLP has extensive experience in insurance insolvencies

throughout the United States.

5. The rates negotiated by the Receiver are set forth in the attached engagement

agreement (Exhibit A) and are competitive and reflect appropriate discounts for

experienced receivership counsel under these circumstances. The engagement agreement

and, in particular the agreement for rates is on the same terms as previously approved by

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this Court and that have been in place with Lewis Roca Rothgerber Christie LLP,

reflecting one approved modest rate increase since the inception of the receivership that

was effective January 1, 2018 as authorized by the engagement agreement.

6. Pursuant to A.R.S. § 20-623.01(A), the Receiver requests that the Court

approve the compensation fixed by the Receiver as set forth in the attached engagement

agreement.

7. Likewise, the Receiver requests that the retention of Faegre Baker Daniels

LLP be subject to the terms and provisions of the Court’s August 24, 2016 Order Re

Petition No. 1 – Petition for Entry of Order Approving Compensation for Special Deputy

Receiver and for Legal Counsel, including that:

a. Subject to the Court’s approval, the Receiver “shall use the funds or assets of

the insurer to pay the compensation and expenses” in accordance with A.R.S. § 20-

623.01(A) utilizing the same process from the August 24, 2016 Order Re Petition No. 1

that was in place for counsel Lewis Roca Rothgerber Christie LLP.

b. After Faegre Baker Daniels LLP’s itemized statements of services rendered

to the Receivership and costs incurred or expended on behalf of the Receivership have

been submitted to and approved by the Special Deputy Receiver and then submitted to and

approved by the Deputy Receiver, Receiver or Receiver’s representative, such reviewed

and approved statements shall be paid by the Receiver.

c. Consistent with this Court’s prior Order, the amount of compensation paid to

Faegre Baker Daniels LLP shall be identified in the periodic status report.

d. Any person that has entered an appearance herein and desiring additional

information concerning the services and costs paid under the engagement agreement as

reported to the Court in the Petition to Accept Status Report may, for good cause shown,

obtain redacted versions of fee statements from the Receiver by delivering to the Special

Deputy Receiver and the Receiver’s counsel, a written request for the redacted billings.

Unless otherwise ordered by the Court, costs associated with preparing and delivering such

information shall be paid by the requesting person.

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e. Upon request by the Court, the Receiver shall make available for in camera

review by the Court the itemized statements and supporting documentation for the services

and costs identified under any periodic report.

f. Notwithstanding anything herein to the contrary, the Receiver expressly

reserves confidentiality, privileges and/or any other legal rights and/or protections

associated with any such statements, including, but not limited to, the attorney-client

privilege and work product doctrine and nothing herein is intended to limit or waive any

such rights.

WHEREFORE, the Receiver requests that the Court enter the Order re Petition

No. 24 Approving Compensation fixed by the Receiver for the engagement of Faegre

Baker Daniels LLP as legal counsel as set forth in the engagement agreement attached

hereto as Exhibit A and ordering that the retention remains subject to the terms and

provisions of the Court’s August 24, 2016 Order Re Petition No. 1 – Petition for Entry of

Order Approving Compensation for Special Deputy Receiver and for Legal Counsel.

Dated this 23rd day of October 2018.

FAEGRE BAKER DANIELS LLP

By: /s/ Joel Glover (#034018) Joel A. Glover

Attorneys for Receiver

COPY of the foregoing mailed this 23rd day of October, 2018 to the attached Master Service List /s/ Brenda McHenry Brenda McHenry

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SUPERIOR COURT OF ARIZONA

COUNTY OF MARICOPA

No. CV2016-011872 (Assigned to The Honorable Daniel Martin)

MASTER SERVICE LIST

Keith Schraad, Receiver Interim Director Arizona Department of Insurance 100 North 15th Avenue, #102 Phoenix, Arizona 85007 Liane Kido, Deputy Receiver Arizona Department of Insurance 100 North 15th Avenue, #102 Phoenix, Arizona 85007 Lynette Evans, Assistant Attorney General Office of the Attorney General 1275 West Washington Street Phoenix, Arizona 85007 Attorneys for Arizona Department of Insurance Richard G. Erickson Robert F. Kethcart Snell & Wilmer L.L.P. One Arizona Center 400 East Van Buren Phoenix, Arizona 85004 Attorneys for Defendants Richard J. Voth, Sr. P.O. Box 3970 Pinetop, Arizona 85935 Larry Aldrich, Executive Chairman Employers Health Alliance of Arizona 7520 East McLellan Lane Scottsdale, Arizona 85250

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Christophe Burusco Sidley Austin LLP 555 West 5th Street, 40th Floor Los Angeles, California 90013 Attorneys for Care1st Health Plan Administrative Services, Inc. Matthew A. Clemente Sidley Austin LLP One South Dearborn Chicago, Illinois 60603 Attorneys for Care1st Health Plan Administrative Services, Inc. Michael Surguine, Executive Director Arizona Life & Disability Insurance Guaranty Fund 2910 North 44th Street, Suite 201 (2nd Floor) Phoenix, Arizona 85018 Darren Ellingson Special Deputy Receiver Raintree Corporate Center I 15333 North Pima Road, Suite 305 Scottsdale, Arizona 85260 Banner Health Patient Financial Services Attn: Anna Rosalez, Manager 525 West Brown Road, Third Floor Mesa, Arizona 85201 S. David Childers Kutak Rock LLP 8601 North Scottsdale Road, Suite 300 Scottsdale, Arizona 85253 Ortencia Solis Arrowhead Pediatrics Billing Department Insurance Rejections 17215 North 72nd Drive Building D, Suite 140B Glendale, Arizona 85308

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Debbie Bailey Cactus Children’s Clinic, PC 5940 West Union Hills Drive Suite D100 Glendale, Arizona 85308 Monica Gaspari Billing Office Supervisor Pima Heart Physicians 3709 North Campbell Avenue Suite 201 Tucson, Arizona 85719 United States Department of Justice 40 North Central Avenue, #1800 Phoenix, Arizona 85004 U.S. Department of Justice 950 Pennsylvania Avenue, NW Washington, DC 20530 United States Attorney General U.S. Department of Justice 950 Pennsylvania Avenue, NW Washington, DC 20530 U.S. Centers for Medicare & Medicaid Services 7500 Security Boulevard Baltimore, Maryland 21244 Sinead Baldwin 1200 Brickell Avenue PH 2000 Miami, Florida 33131 Attorneys for HealthSouth Rehabilitation Hospital

Jill Wright Parallon 1100 Charlotte Avenue Suite 1600 Nashville, Tennessee 37203 D.B. Udall Udall Law Firm LLP 4801 East Broadway Boulevard Suite 400 Tucson, Arizona 85711 Attorneys for Sarah McMahon

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Susan Sweat Ambulance Billing Office Supervisor Bullhead City Fire Department 1260 Hancock Road Bullhead City, Arizona 86442

Justin J. Henderson Lewis Roca Rothgerber Christie LLP 201 East Washington Street, Suite 1200 Phoenix, Arizona 85004-2595 Attorneys for Receiver

US.120465030.01

EXHIBIT A