2018-08-03T09:14:22-05:00 2017-12-31 861065772 DELOITTE TAX LLP 200 RENAISSANCE CENTER SUITE 3900 DETROIT MI 482431300 990 2017-01-01 161080163 INDEPENDENT HEALTH ASSOCIATION INC INDE 7166313001 511 FARBER LAKES DRIVE BUFFALO NY 14221 MICHAEL W CROPP MD PRESIDENT & CEO 7166313001 2018-08-02 1 LORI BOYCE P00121981 3133963000 2017 2022-09-23 18:48:47Z MICHAEL W CROPP MD 511 FARBER LAKES DRIVE BUFFALO NY 14221 1599279305 0 X WWW.INDEPENDENTHEALTH.COM X 1980 NY PROVIDE HEALTH-RELATED PRODUCTS AND SERVICES THAT ENABLE AFFORDABLE ACCESS TO QUALITY HEALTH CARE. 21 19 1257 231 0 0 0 0 1516332353 1393047184 11030461 9204721 20027 10670 1527382841 1402262575 2002372 2345360 1340584630 1229000501 75119652 79414553 0 0 0 82620917 74015753 1500327571 1384776167 27055270 17486408 733259803 756990268 290965228 312146143 442294575 444844125 PROVIDE HEALTH-RELATED PRODUCTS AND SERVICES THAT ENABLE AFFORDABLE ACCESS TO QUALITY HEALTH CARE. 0 0 1267602701 2345360 1393047184 INDEPENDENT HEALTH ASSOCIATION (IHA) COORDINATES THE DELIVERY OF QUALITY HEALTH CARE COVERAGE THROUGH CONTRACTS WITH THE INDIVIDUAL PRACTICE ASSOCIATION OF WESTERN NEW YORK (IPAWNY), A TAXABLE NON-PROFIT, FOR ITS COMMERCIAL AND MEDICARE HMO PRODUCTS WITHIN THE EIGHT COUNTIES OF WESTERN NEW YORK (WNY). IHA ALSO PROVIDES COVERAGE AND COORDINATES SERVICES TO ITS STATE PROGRAMS (WHICH INCLUDE THE MEDICAID HMO PRODUCT, CHILD HEALTH PLUS (CHP), HEALTH AND RECOVERY PLANS (HARP) AND THE ESSENTIAL PLAN PROGRAMS) FOR THE ARRANGEMENT OF PHYSICIAN, HOSPITAL, MEDICALLY NECESSARY HEATLH SERVICES, DIAGNOSITC AND PREVENTIVE HEATLH SERVICES TO THE COMMUNITIES LOCATED IN ERIE AND NIAGARA COUNTY. SEE SCHEDULE O FOR ADDITIONAL DETAIL. 1267602701 0 0 0 0 0 0 0 1 0 1 0 0 1 1 1 1 1 0 0 1 0 0 0 0 0 0 1 0 1 0 0 0 0 0 1 0 1 0 0 0 0 1 1 1 1 0 1 241 0 1 1257 1 0 1 BD 0 0 0 0 0 X 21 19 1 0 0 0 0 0 0 1 1 1 0 1 1 1 1 1 1 1 1 1 0 NY X MICHAEL J FASO 7166313001 511 FARBER LAKES DRIVE BUFFALO NY 14221 ANTHONY B MARTINO BOARD MEMBER 5.00 1.00 X 42500 0 7038 ANTHONY J BAYNES BOARD MEMBER 5.00 0.00 X 35500 0 7038 COLLEEN C DIPIRRO BOARD MEMBER 5.00 0.00 X 42500 0 7038 DANIEL B WEINTRAUB CPA BOARD MEMBER 5.00 0.00 X 35500 0 6627 DONALD ROBINSON MD BOARD MEMBER 5.00 0.00 X 46250 0 7038 DONNA M FERNANDES PHD BOARD MEMBER 5.00 0.00 X 35500 0 7038 FAUD SHERIFF MD BOARD MEMBER 5.00 0.00 X 52538 0 6627 JOHN N WALSH III BOARD MEMBER 5.00 2.00 X 42500 0 0 LISA MENDONZA MD BOARD MEMBER 5.00 0.00 X 35500 0 7038 MOISES SUDIT PHD BOARD MEMBER 5.00 1.00 X 34500 0 0 NORA B SULLIVAN JD MBA BOARD MEMBER 5.00 1.00 X 42500 0 7038 PATRICIA SMITH BOARD MEMBER 5.00 0.00 X 43871 0 411 RENE F JONES BOARD MEMBER 5.00 0.00 X 0 0 0 SHAWN COTTON MD BOARD MEMBER 5.00 0.00 X 35500 0 7038 SIDNEY N WEISS CPA BOARD MEMBER 5.00 1.00 X 50500 0 7038 STUART H ANGERT BOARD MEMBER 5.00 3.00 X 35500 0 1044 YVONNE S MINOR-RAGAN PHD BOARD MEMBER 5.00 0.00 X 35500 0 411 DAN GAGLIARDO START 417 BOARD MEMBER 5.00 5.00 X 35500 0 4692 JOHN ANTKOWIAK MD CHAIRPERSON 12.00 2.00 X X 96258 0 7038 MICHAEL HEIMERL MD VICE CHAIRPERSON 5.00 0.00 X X 42500 0 7038 MICHAEL W CROPP PRESIDENT & CEO 37.00 15.00 X X 1937953 0 361322 JOHN MINEO ESQ SECRETARY - EVP GEN.COUNSEL 32.00 12.00 X X 510987 0 130970 MARK I JOHNSON TREASURER & CFO 36.00 13.00 X X 1227721 0 320351 DAWN C ODRZYWOLSKI CHIEF COMPLIANCE OFFICER 26.00 9.00 X 127620 0 30096 THOMAS J FOELS EVP-CHIEF MEDICAL OFFICER 36.00 13.00 X 658977 0 234780 DAVID V NARAMORE VP - ACTUARIAL 12.00 5.00 X 185300 0 11539 ANN M PENTKOWSKI EVP - CHIEF NETWRK/PERFMGT OFFICER 32.00 11.00 X 556755 0 133295 ANNE O'NEILL VP - CHIEF RISK OFFICER 31.00 11.00 X 199470 0 36652 ERIC J DECKER SVP - INFORMATION TECHNOLOGY CIO 36.00 14.00 X 368022 0 58128 J SCOTT DWYER VP - CHIEF AUDIT EXECUTIVE 31.00 11.00 X 237549 0 33054 JAMES B WALLESHAUSER SVP - HCS OPERATIONS 36.00 18.00 X 347935 0 72555 JILL M SYRACUSE EVP - CHIEF ENGMT & SERV OFFICER 34.00 12.00 X 588685 0 185734 MICHAEL J FASO SVP - FINANCE & CHIEF REV/ACC OFFCR 27.00 15.00 X 427049 0 133864 NORA K MCGUIRE SVP - CHIEF MARKETING OFFICER 24.00 18.00 X 407317 0 17442 PATRICIA C CLABEAUX EVP - CHIEF HR OFFICER 35.00 13.00 X 459924 0 148698 ROBERTA D RIFKIN SVP - GOVT PROGS & AFFAIRS 36.00 13.00 X 320330 0 87309 JOHN R RODGERS EVP - COO 36.00 15.00 X 793024 0 238610 JOHN HAUGHTON MD SVP - CHIEF CLINICAL IMPRV OFFICER 30.00 13.00 X 315807 0 28328 AMIN M SEREHALI VP - CLINICAL & BUS. INFORMATICS 39.00 15.00 X 340976 0 33229 BRIAN J SAME MEDICAL DIRECTOR - MED POLICY & UM 32.00 14.00 X 343126 0 66673 RICHARD M ARGENTIERI VP - SALES 25.00 22.00 X 311617 0 45356 MARGARET STEFFAN VP - FINANCE - TREASURY SERVICES 26.00 20.00 X 298970 0 78363 ROGER FORDEN ASST. MEDICAL DIRECTOR-UM PT 19.00 13.00 X 257386 0 13498 PAMELA S MENARD END 316 FORMER SVP - HC DELIVERY INNOVATION 0.00 0.00 X 231826 0 0 12274743 0 2597076 227 1 1 0 INDIVIDUAL PRACTICE ASSOCIATION OF WNY 511 FARBER LAKES DRIVE BUFFALO NY 14221 MEDICAL & PHARMACY BENEFIT SERVICES 851282573 HEALTHPLEX IPA EARLE OVINGTON BLVD UNIONDALE NY 115533608 DENTAL BENEFITS COMPANY 18853896 SIRIUS COMPUTER SOLUTIONS PO BOX 202289 DALLAS TX 753202289 INTEGRATED TECHNOLOGY BASED BUSINESS SOL 7657818 SYNTEL INC 525 E BIG BEAVER RD STE 300 TROY MI 48083 INFORMATION TECHNOLOGY SERVICES 5828424 PCI 703 WASHINGTON ST BUFFALO NY 142031416 INFORMATION TECHNOLOGY SERVICES 5244904 145 PREMIUMS, REINSURANCE, 524114 1393047184 1393047184 1393047184 10639535 10639535 12445 1777 10668 10668 10668 195580139 196965699 49254 -1385560 -49254 -1434814 -1434814 PEDIATRIC DENTAL COMMI 621300 2 2 2 1402262575 1393047184 0 9215391 2345360 2345360 1229000501 1229000501 12850804 12850804 37564219 12915450 24648769 7095788 351971 6743817 15223514 2697272 12526242 6680228 1036254 5643974 332008 332008 313060 313060 151675 151675 1016341 1016341 19535114 66934 19468180 2993224 30713 2962511 6170632 192115 5978517 13510400 26688 13483712 1879594 1879594 349063 37470 311593 271815 16272 255543 103795 103795 6109987 6109987 600204 600204 GME SURCHARGE 15685411 15685411 FAMILY CHOICE 2102624 2102624 NYS ASSESSMENT/CLAIMS A 1443799 1443799 BAD DEBT RESERVE/WRITE 1073102 1073102 373905 24564 349341 1384776167 1267602701 117173466 0 11228642 14310020 169818087 174291087 26992553 25649704 134001655 99049421 36990433 34952234 302360466 319795826 2075426 1990417 183794196 186000980 733259803 756990268 38804479 101861913 0 28109187 14469453 3397777 1174013 23000000 0 197653785 194640764 290965228 312146143 X 272223859 291386112 170070716 153458013 442294575 444844125 733259803 756990268 X 17486408 9263141 -24200000 0 X 0 1 X 1 1 1 0 1 X 542713 542713 23772167 7369636 16402531 13776668 6146720 7629948 21717741 18700688 3017053 74192366 66832377 7359989 34952234 INVESTMENTS RESTRICTED AS TO USE 75551637 INVESTMENTS IN AFFILIATES 110449343 186000980 BENEFITS PAYABLE 31394648 CAPITATION PAYABLE 23651683 INTERCOMPANY PAYABLES 128679760 MEDICAL LOSS RATIO REBATE RESERVES 10914673 194640764 X 1401622436 9263140 -3023939 6239201 1395383235 6879340 6879340 1402262575 1370027579 -6879340 -6879340 1376906919 7869248 7869248 1384776167 PART IV, LINE 2B: LONG TERM INCENTIVE DEFERRED COMPENSATION PLAN IS OFFERED TO KEY EXECUTIVES. FUTURE PAYMENT IS BASED ON PERFORMANCE AND HISTORICAL COMPENSATION. ASSETS ARE UNDER CUSTODIAL ARRANGEMENT WITH M&T BANK. PART X, LINE 2: IHA & AFFILIATES (THE ASSOCIATION) RECOGNIZED NO LIABILITY FOR UNRECOGNIZED INCOME TAX BENEFITS AT DECEMBER 31, 2017 AND 2016. THE ASSOCIATION DID NOT RECORD INTEREST AND PENALTIES RELATED TO UNRECOGNIZED TAX BENEFITS IN 2017 AND 2016. THE ASSOCIATION IS SUBJECT TO U.S. FEDERAL INCOME TAX AND INCOME TAX IN VARIOUS STATE JURISDICTIONS. AS OF DECEMBER 31, 2017, THE ASSOCIATION'S TAX YEARS FOR 2014, 2015, AND 2016 ARE SUBJECT TO EXAMINATIONS BY FEDERAL TAX AUTHORITIES. PART XI, LINE 2D - OTHER ADJUSTMENTS: BANK CHARGES & INVESTMENT FEES NETTED AGAINST OTHER INCOME -1,430,579. OPERATING GRANT NETTED AGAINST INCOME -1,593,360. PART XI, LINE 4B - OTHER ADJUSTMENTS: NYS REINSURANCE 3,676,906. RX REBATE 3,204,211. RENTAL EXPENSE INCLUDED ON PART VIII, LINE 6B -1,777. PART XII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSE INCLUDED ON PART VIII, LINE 6B 1,777. NYS REINSURANCE -3,676,906. RX REBATE -3,204,211. PART XII, LINE 4B - OTHER ADJUSTMENTS: BANK CHARGES & INVESTMENT FEES NETTED AGAINST OTHER INCOME 1,430,579. OPERATING GRANT NETTED AGAINST INCOME 1,593,360. PENSION RELATED CHANGES OTHER THAN NET PERIODIC PENSION COST 4,845,309. CENTRAL AMERICA & THE CARIBBEAN INVESTMENTS 15189716 0 0 0 0 0 0 15189716 0 15189716 0 0 1 0 0 0 1 CATHOLIC HEALTH 212 MAIN STREET SUITE 300 BUFFALO NY 14214 222565278 501(C)(3) 22000 FMV SPONSORSHIP ECMC LIFELINE FOUNDATION 462 GRIDER STREET NO G-1 BUFFALO NY 14215 223283946 501(C)(3) 8000 FMV SPONSORSHIP AMHERST CHAMBER OF COMMERCE 400 ESSJAY ROAD SUITE 150 AMHERST NY 14221 160959485 501(C)(6) 50000 FMV SPONSORSHIP NIAGARA FRONTIER AUTOMOBILE DEALERS ASSOCIATION (NFADA) 1144 WEHRLE DRIVE WILLIAMSVILLE NY 14221 161194880 501(C)(3) 40000 FMV SPONSORSHIP CANISIUS COLLEGE 2001 MAIN STREET BUFFALO NY 14208 160743209 501(C)(3) 32000 FMV SPONSORSHIP ASPIRE OF WNY 2356 NORTH FOREST ROAD GETZVILLE NY 14068 160757756 501(C)(3) 6500 FMV SPONSORSHIP CATHOLIC CHARITIES OF BUFFALO NEW YORK 741 DELAWARE AVENUE BUFFALO NY 14209 160743251 501(C)(3) 15000 FMV SPONSORSHIP HERITAGE CENTERS ERIE COUNTY 101 OAK STREET BUFFALO NY 14203 160769044 501(C)(3) 8000 FMV SPONSORSHIP GATEWAY-LONGVIEW 10 SYMPHONY CIRCLE BUFFALO NY 143041798 161559402 501(C)(3) 6000 FMV SPONSORSHIP BROTHERS OF MERCY 4520 RANSOM RD CLARENCE NY 140312108 166074666 501(C)(3) 6000 FMV SPONSORSHIP SUMMIT EDUCATIONAL RESOURCES 150 STAHL RD GETZVILLE NY 140681231 161095750 501(C)(3) 6500 FMV SPONSORSHIP HOSPICE FOUNDATION OF WNY INC 225 COMO PARK BLVD CHEEKTOWAGA NY 142271416 223137812 501(C)(3) 7000 FMV SPONSORSHIP HILLSIDE WORK SCHOLARSHIP PROGRAM 1183 MONROE AVENUE ROCHESTER NY 14620 161453581 501(C)(3) 100000 FMV SPONSORSHIP FOR HEALTHY LIVING BUFFALO NIAGARA ENTERPRISE 665 MAIN STREET BUFFALO NY 142031425 161579523 501(C)(3) 50000 FMV SPONSORSHIP FOR HEALTHY LIVING SENECA DIABETES FOUNDATION PO BOX 309 IRVING NY 140810309 203214056 501(C)(3) 35000 FMV SPONSORSHIP BUFFALO NIAGARA PARTNERSHIP 655 MAIN STREET SUITE 200 BUFFALO NY 142031425 160761958 501(C)(6) 39550 FMV SPONSORSHIP BUFFALO URBAN LEAGUE 15 E GENESEE STREET BUFFALO NY 14203 160743940 501(C)(3) 25000 FMV SPONSORSHIP TASTE OF BUFFALO INC 276 GREENWOOD COURT EAST AURORA NY 14052 161390601 501(C)(6) 15500 FMV SPONSORSHIP FOR HEALTHY LIVING GREEN OPTIONS BUFFALO (GOBIKESLOW ROLL) 640 ELLICOTT ST SUITE 447 BUFFALO NY 14203 272501533 501(C)(3) 70000 FMV SPONSORSHIP FOR HEALTHY LIVING NATIONAL FEDERATION OF JUST COMMUNITIES OF WNY 360 DELAWARE AVENUE BUFFALO NY 14202 203185568 501(C)(3) 13000 FMV SPONSORSHIP LEUKEMIA & LYMPHOMA SOCIETY 1311 MAMARONECK AVENUE SUITE310 WHITE PLAINS NY 10605 135644916 501(C)(3) 10000 FMV SPONSORSHIP LEADERSHIP BUFFALO 237 MAIN STREET SUITE 1500 BUFFALO NY 142032720 161363536 501(C)(3) 10000 FMV SPONSORSHIP POLICE ATHLETIC LEAGUE 65 NIAGARA SQUARE 21ST FLOOR BUFFALO NY 14202 161468698 501(C)(3) 8500 FMV SPONSORSHIP FOR HEALTHY LIVING INDEPENDENT HEALTH FOUNDATION 777 INTERNATIONAL DRIVE BUFFALO NY 14221 161417199 501(C)(3) 1593360 FMV OPERATING GRANT KALEIDA HEALTH 726 EXCHANGE STREET BUFFALO NY 14210 161533232 501(C)(3) 5000 FMV SPONSORSHIP BUFFALO HEARING & SPEECH 50 E NORTH ST BUFFALO NY 14203 160776186 501(C)(3) 5000 FMV SPONSORSHIP P2 COLLABORATIVE 355 HARLEM ROAD BUILDING C WEST SENECA NY 14224 421604185 501(C)(3) 30000 FMV SPONSORSHIP LARKIN SQUARE 726 EXCHANGE ST STE 825 BUFFALO NY 14210 454273890 501(C)(3) 10000 FMV SPONSORSHIP FOR HEALTHY LIVING OPPORTUNITIES UNLIMITED OF NIAGARA 1555 FACTORY OUTLET BLVD NIAGARA FALLS NY 143041798 161564891 501(C)(3) 5000 FMV SPONSORSHIP THEATRE OF YOUTH (TOY) 203 ALLEN STREET BUFFALO NY 14201 237286004 501(C)(3) 60000 FMV SPONSORSHIP FOR HEALTHY LIVING UNITED WAY OF BUFFALO & ERIE COUNTY - ENDOWMENT CAMPAIGN 742 DELAWARE AVENUE BUFFALO NY 14209 160743969 501(C)(3) 20000 FMV SPONSORSHIP FOR HEALTHY LIVING ROSWELL PARK ALLIANCE FOUNDATION ELM CARLTON STREETS BUFFALO NY 14263 161391608 501(C)(3) 18450 FMV SPONSORSHIP FOR HEALTHY LIVING AMERICAN HEART ASSOCIATION 5488 SHERIDAN DRIVE STE 300 WILLIAMSVILLE NY 14221 135613797 501(C)(3) 5000 FMV SPONSORSHIP HOSPICE & PALLIATIVE NURSES ASSOCIATION ONE PENN CENTER WEST PITTSBURGH PA 152760100 330267166 501(C)(6) 5000 FMV SPONSORSHIP ROSWELL PARK CANCER INSTITUTE ELM CARLTON STREETS BUFFALO PA 14263 461355351 501(C)(3) 5000 FMV SPONSORSHIP 31 4 PART I, LINE 2: DONATIONS/CONTRIBUTIONS: ONLY REMIT TO COLLABORATING COMMUNITY PARTNERS WHO ALIGN WITH OUR MISSION TO IMPROVE THE HEALTH AND WELL-BEING OF THE WNY COMMUNITY. THE GRANTS OR SPONSORSHIPS ARE RECORDED TO THE SAME ACCOUNT NUMBER ON THE GENERAL LEDGER SYSTEM UNDER "SPONSORSHIPS AND COPIES OF ALL PAYMENTS ARE KEPT ON FILE. X 1 0 X X X X X X 1 1 0 0 0 0 0 0 0 MICHAEL W CROPP PRESIDENT & CEO 952959 0 910955 0 74039 0 330029 0 31293 0 2299275 0 0 0 JOHN MINEO ESQ SECRETARY - EVP GEN.COUNSEL 308365 0 191662 0 10960 0 94458 0 36512 0 641957 0 0 0 MARK I JOHNSON TREASURER & CFO 669464 0 514799 0 43458 0 291450 0 28901 0 1548072 0 0 0 DAWN C ODRZYWOLSKI CHIEF COMPLIANCE OFFICER 110195 0 16832 0 593 0 5998 0 24098 0 157716 0 0 0 THOMAS J FOELS EVP-CHIEF MEDICAL OFFICER 368366 0 261801 0 28810 0 176136 0 58644 0 893757 0 0 0 DAVID V NARAMORE VP - ACTUARIAL 103448 0 61782 0 20070 0 4152 0 7387 0 196839 0 0 0 ANN M PENTKOWSKI EVP - CHIEF NETWRK/PERFMGT OFFICER 342343 0 187792 0 26620 0 124338 0 8957 0 690050 0 0 0 ANNE O'NEILL VP - CHIEF RISK OFFICER 166761 0 31518 0 1191 0 16999 0 19653 0 236122 0 0 0 ERIC J DECKER SVP - INFORMATION TECHNOLOGY CIO 264718 0 84679 0 18625 0 37960 0 20168 0 426150 0 0 0 J SCOTT DWYER VP - CHIEF AUDIT EXECUTIVE 186148 0 44835 0 6566 0 10789 0 22265 0 270603 0 0 0 JAMES B WALLESHAUSER SVP - HCS OPERATIONS 243853 0 81892 0 22190 0 49981 0 22574 0 420490 0 0 0 JILL M SYRACUSE EVP - CHIEF ENGMT & SERV OFFICER 340812 0 240021 0 7852 0 159014 0 26720 0 774419 0 0 0 MICHAEL J FASO SVP - FINANCE & CHIEF REV/ACC OFFCR 276674 0 125096 0 25279 0 110540 0 23324 0 560913 0 0 0 NORA K MCGUIRE SVP - CHIEF MARKETING OFFICER 256557 0 131094 0 19666 0 5914 0 11528 0 424759 0 0 0 PATRICIA C CLABEAUX EVP - CHIEF HR OFFICER 293504 0 159145 0 7275 0 107154 0 41544 0 608622 0 0 0 ROBERTA D RIFKIN SVP - GOVT PROGS & AFFAIRS 227519 0 75547 0 17264 0 64714 0 22595 0 407639 0 0 0 JOHN R RODGERS EVP - COO 451350 0 321748 0 19926 0 185516 0 53094 0 1031634 0 0 0 JOHN HAUGHTON MD SVP - CHIEF CLINICAL IMPRV OFFICER 313554 0 0 0 2253 0 8037 0 20291 0 344135 0 0 0 AMIN M SEREHALI VP - CLINICAL & BUS. INFORMATICS 251022 0 83600 0 6354 0 11124 0 22105 0 374205 0 0 0 BRIAN J SAME MEDICAL DIRECTOR - MED POLICY & UM 294294 0 41601 0 7231 0 46351 0 20322 0 409799 0 0 0 RICHARD M ARGENTIERI VP - SALES 201397 0 105196 0 5024 0 25751 0 19605 0 356973 0 0 0 MARGARET STEFFAN VP - FINANCE - TREASURY SERVICES 213834 0 60206 0 24930 0 57406 0 20957 0 377333 0 0 0 ROGER FORDEN ASST. MEDICAL DIRECTOR-UM PT 243116 0 10292 0 3978 0 12258 0 1240 0 270884 0 0 0 PAMELA S MENARD END 316 FORMER SVP - HC DELIVERY INNOVATION 231826 0 0 0 0 0 0 0 0 0 231826 0 0 0 PART I, LINE 1A AT THE DISCRETION OF THE CEO, 14 EXECUTIVES (OFFICERS AND KEY EMPLOYEES) RECEIVE A DISCRETIONARY SPENDING ACCOUNT. THESE AMOUNTS ARE A PERCENTAGE OF BASE COMPENSATION AND ARE CAPPED AT SPECIFIC AMOUNTS. ANY REIMBURSEMENT WHICH IS NOT DEDUCTIBLE UNDER IRS REGULATIONS OR ANY UNCLAIMED AMOUNT AT THE END OF THE CALENDAR YEAR IS TREATED AS INCOME AND ADDED TO THE EXECUTIVE'S W-2. PART I, LINE 4A: THE FOLLOWING LISTED PERSONS FROM PART VII, SECTION A RECEIVED SEVERANCE PAYMENTS AS PART OF A SEPARATION AGREEMENT WITH INDEPENDENT HEALTH DURING 2017: PAMELA S. MENARD - $231,826 PART I, LINE 4B: ELIGIBLE EMPLOYEES PARTICIPATE IN VARIOUS NON-QUALIFIED DEFERRED COMPENSATION PLANS ORGANIZED UNDER CODE SECTION 457(F). ANY AMOUNT ULTIMATELY PAID UNDER THE PROGRAM TO THE EMPLOYEE IS REPORTED AS COMPENSATION ON FORM 990, SCHEDULE J, PART II, COLUMN B IN THE YEAR PAID. THERE WERE NO SUPPLEMENTAL NON-QUALIFIED PLAN PAYMENTS MADE DURING THE YEAR TO PARTICIPANTS IN THE PLAN. ALDEN PHARMACY INC SEE PART V 1029909 SEE PART V 0 NORTHTOWNS MEDICAL GROUP SEE PART V 578060 SEE PART V 0 DONALD W ROBINSON MD SEE PART V 379101 SEE PART V 0 SCH L, PART IV, BUSINESS TRANSACTIONS INVOLVING INTERESTED PERSONS: (A) NAME OF INTERESTED PERSON: ALDEN PHARMACY, INC.(B) RELATIONSHIP BETWEEN INTERESTED PERSON AND THE ORGANIZATION:GREATER THAN 35% CONTROLLED ENTITY BY JOHN RODGERS, CURRENT KEY EMPLOYEE(D) DESCRIPTION OF TRANSACTION: INDEPENDENT CONTRACTOR ARRANGEMENT, DELIVERY OF HEALTH CARE(A) NAME OF INTERESTED PERSON: NORTHTOWNS MEDICAL GROUP(B) RELATIONSHIP BETWEEN INTERESTED PERSON AND THE ORGANIZATION:GREATER THAN 35% CONTROLLED ENTITY BY EDWARD STEHLIK, FORMER BOARD MEMBER(D) DESCRIPTION OF TRANSACTION: INDEPENDENT CONTRACTOR ARRANGEMENT, DELIVERY OF HEALTH CARE(A) NAME OF INTERESTED PERSON: DONALD W. ROBINSON, MD (SOLEPRACTITIONER)(B) RELATIONSHIP BETWEEN INTERESTED PERSON AND THE ORGANIZATION:GREATER THAN 35% CONTROLLED ENTITY BY DONALD W. ROBINSON, MD, CURRENT BOARD MEMBER.(D) DESCRIPTION OF TRANSACTION: INDEPENDENT CONTRACTOR ARRANGEMENT, DELIVERY OF HEALTH CARE FORM 990, PART III, LINE 4A PROGRAM SERVICE ACCOMPLISHMENTS: HEADQUARTERED IN BUFFALO, INDEPENDENT HEALTH BEGAN OPERATIONS IN 1980 AND HAS CONSISTENTLY BEEN RATED AMONG THE TOP HEALTH PLANS IN THE COUNTRY FOR CUSTOMER SERVICE AND MEMBER SATISFACTION. INDEPENDENT HEALTH'S COMPREHENSIVE PORTFOLIO OF PROGRESSIVE PRODUCTS INCLUDE HMO, POS, PPO AND EPO PRODUCTS, MEDICARE AND MEDICAID PLANS, TRADITIONAL INDEMNITY INSURANCE, INDIVIDUAL AND SMALL GROUP EXCHANGE PRODUCTS, AND CONSUMER-DIRECTED PLANS, PLUS COVERAGE FOR SELF-FUNDED EMPLOYERS. INDEPENDENT HEALTH'S SUBSIDIARY COMPANIES INCLUDE PHARMACY BENEFIT DIMENSIONS, RELIANCE RX, DXID, NOVA HEALTHCARE ADMINISTRATORS, INC., AND EVOLVE PRACTICE PARTNERS. IHA OFFERS ITS MEMBERS HEALTH RISK MANAGEMENT TOOLS INCLUDING AN ONLINE HEALTH RISK ASSESSMENT AND THE USE OF A DATA WAREHOUSE TO ANALYZE AND PREDICT POTENTIAL RISK AND DEVELOP SOLUTIONS TO HELP CONTROL CURRENT AND PREVENT FUTURE PROBLEMS. PROGRAMS FOR COVERED EMPLOYEES AS WELL AS FOR EMPLOYERS HELP THEM MAKE GOOD HEALTH A PART OF THEIR CULTURE. IHA OFFERS A 24-HOUR MEDICAL HELP LINE WITH ACCESS TO A REGISTERED NURSE, CASE MANAGEMENT, DISEASE MANAGEMENT AND HEALTH COACHES. IHA ALSO ESTABLISHED AN ADVANCED PATIENT CENTERED MEDICAL HOME (PCMH) PILOT PROGRAM IN JANUARY 2009. THE PCMH PROGRAM INCLUDED 18 DIVERSE PRIMARY CARE PRACTICES ACROSS WNY, 130 PHYSICIANS AND NEARLY 50,000 IHA MEMBERS. THE PRACTICES WORKED TOWARD IMPROVED QUALITY OF CARE WITH EXPANDED ACCESS TO ALLOW SAME-DAY APPOINTMENTS AND AFTER-HOURS CARE; ENHANCED TECHNOLOGY TO INCLUDE ELECTRONIC MEDICAL RECORDS AND EMAILS WITH PATIENTS; AND A COMPREHENSIVE CARE TEAM FOR THOSE WITH OR AT RISK OF HAVING A CHRONIC CONDITION. ADMINISTRATIVE ASSISTANCE WAS ALSO PROVIDED TO HELP IMPLEMENT NEW OFFICE PROCEDURES. ANOTHER IMPORTANT ASPECT OF THE PCMH MODEL WAS THAT IT ALSO INCLUDED MANY OF THE FEDERAL HEALTH CARE REFORM EFFORTS INCLUDING PREVENTION AND WELLNESS THROUGH COORDINATED CARE, EVIDENCED-BASED GUIDELINES TO GAUGE OUTCOMES AND REFORM OF PHYSICIAN PAYMENT TO IMPROVE QUALITY AND EFFICIENCY. IHA DEVOTED TIME AND FINANCIAL RESOURCES THAT ENABLED THE 130 PHYSICIANS IN THIS PROGRAM TO REDESIGN THEIR PRACTICES. IHA ALSO PROVIDED DETAILED MEMBER INFORMATION TO ENABLE OUR PHYSICIANS TO MANAGE CARE OPPORTUNITIES FOR IHA MEMBERS. AT THE END OF THE PILOT IN DECEMBER, 2011, THE 18 PRIMARY CARE PRACTICES INVOLVED IN THE PILOT PROGRAM ACHIEVED THE HIGHEST RECOGNITION BY THE NATIONAL COMMITTEE FOR QUALITY ASSURANCE (NCQA). IN 2012, INDEPENDENT HEALTH EVOLVED ITS SUCCESSFUL PATIENT-CENTERED MEDICAL HOME (PCMH) CARE MODEL FOR PRIMARY CARE INTO A MORE COMPREHENSIVE PROGRAM CALLED THE PRIMARY CONNECTION, WHICH OFFICIALLY BEGAN JULY 1, 2012. AN INNOVATIVE, PHYSICIAN-LED INITIATIVE, THE PRIMARY CONNECTION TAKES A COORDINATED APPROACH TO ENHANCE QUALITY, ACCESS AND AFFORDABILITY. USING PCMH PRINCIPLES AS THE FOUNDATION, THIS INNOVATIVE ALLIANCE PROMOTES BETTER CARE COORDINATION AND A COLLABORATIVE, SHARED RESPONSIBILITY AMONG PRIMARY CARE AND SPECIALTY PHYSICIANS, AS WELL AS HOSPITALS, HEALTH PLANS, MEMBERS AND OTHER KEY STAKEHOLDERS TO ACHIEVE THE GOALS OF THE QUADRUPLE AIM: BETTER HEALTH, BETTER CARE, LOWER COSTS AND PROVIDER VITALITY. HEALTH CARE REFORM INITIATIVES ENCOURAGE THIS TYPE OF CARE DELIVERY, AND INDEPENDENT HEALTH AND THESE PROGRESSIVE PRIMARY CARE PHYSICIAN PRACTICES HAVE BEEN AT THE FOREFRONT OF WHAT THE NATION WILL BE DOING. THE PRIMARY CONNECTION FOSTERS INTERDEPENDENCY AND INTENSE COLLABORATION AMONG THE PRACTICES TO CREATE AND IMPLEMENT SPECIFIC CARE COORDINATION PROGRAMS, SUCH AS HOSPITAL ALTERNATIVE PROGRAMS AND CARE TRANSITION PROGRAMS FROM HOSPITAL TO HOME. OTHER RESOURCES INCLUDE PHARMACISTS PROVIDING MEDICATION THERAPY MANAGEMENT, EMBEDDED BEHAVIORAL COUNSELORS WITHIN PRACTICES, AND CARE COORDINATION CONTRACTS BETWEEN PRIMARY AND SPECIALTY CARE PHYSICIANS. THE PRIMARY CONNECTION PRACTICES' CLINICAL AND OPERATIONAL PERFORMANCES ARE TRACKED FOR QUALITY IMPROVEMENT AND ADHERENCE TO THE TENETS OF THE QUADRUPLE AIM. THESE PRACTICES ARE REIMBURSED UNDER AN INNOVATIVE HYBRID REIMBURSEMENT METHODOLOGY THAT RETAINS ELEMENTS OF FEE-FOR-SERVICE PAYMENT, BUT INCLUDES A RISK-ADJUSTED POPULATION-BASED CARE COORDINATION FEE AND A SHARED SAVINGS COMPONENT. THE HYBRID PAYMENT SYSTEM ALLOWS PRIMARY CARE PRACTICES TO MORE FULLY UTILIZE ANCILLARY NURSING AND MID-LEVEL STAFF, RECOGNIZES THE PRACTICES' EFFORTS TO IMPLEMENT E-COMMUNICATION STRATEGIES, AND REWARDS EFFORTS TO WORK COOPERATIVELY AND EFFECTIVELY WITH HOSPITALS AND SPECIALTY PHYSICIANS TO REDUCE MEDICALLY UNNECESSARY SERVICES AND POTENTIALLY AVOIDABLE ADMISSIONS. THE PRIMARY CONNECTION INITIALLY INVOLVED 21 PRACTICES, THEIR 140 PHYSICIANS AND MORE THAN 54,000 PATIENTS, AND HAS SINCE GROWN TO 32 PRACTICES AND 189 PHYSICIANS, IMPACTING 121,000 INDEPENDENT HEALTH MEMBERS. THIS PROGRESSIVE ALLIANCE HAS LED TO IMPROVED CARE COORDINATION, AND REDUCING THE REDUNDANCIES AND INEFFICIENT CARE THAT CAUSE HEALTH CARE COSTS TO INCREASE UNNECESSARILY. A SAMPLE OF RESULTS FOLLOWS: - FROM 2013 TO 2017, THE PRIMARY CONNECTION PHYSICIANS DECREASED UNNECESSARY REFERRALS TO SPECIALIST PHYSICIANS BY 19 PERCENT. - THEY ALSO INCREASED REFERRALS TO HIGH-PERFORMING SPECIALISTS BY 7 PERCENT DURING THAT TIME. - THE PRIMARY CONNECTION PRACTICES DECREASED PRESCRIPTIONS TO COSTLY BRAND-NAME MEDICATIONS BY 23 PERCENT. - THE PRIMARY CONNECTION REDUCED THE AMOUNT OF POTENTIALLY PREVENTABLE HOSPITAL ADMISSIONS BY 17 PERCENT AND READMISSION RATES BY 25 PERCENT, BY TREATING PATIENTS IN MORE APPROPRIATE CARE SETTINGS AT LOWER COSTS. - PRIMARY CONNECTION PATIENTS RECEIVED 10,000 MORE PREVENTIVE AND WELLNESS SERVICES THAN OTHER MEMBERS IN JUST ONE YEAR. OTHER MEMBERSHIP SERVICES INCLUDE PREVENTIVE CARE WITH ACTIVE PARTICIPATION BY COMMUNITY ORGANIZATIONS IN INITIATIVES SUCH AS THE P2 COLLABORATIVE OF WESTERN NEW YORK (P2), A NOT-FOR-PROFIT DEDICATED TO IMPROVING THE HEALTH OF PEOPLE IN WESTERN NEW YORK. IT DEPENDS ON UNPRECEDENTED COLLABORATION AMONG KEY STAKEHOLDERS AND THE SHARING OF CLINICAL INFORMATION, AS WELL AS THE ADOPTION OF HEALTH INFORMATION TECHNOLOGY AND ELECTRONIC MEDICAL RECORDS, THROUGH ORGANIZATIONS SUCH AS HEALTH-E-LINK. THE IHA HEALTH COACH PROGRAM OFFERS A BROAD RANGE OF SERVICES, INCLUDING EDUCATION AND CARE COORDINATION, TO IMPROVE THE HEALTH OF IHA MEMBERS AND EMPLOYEES. HEALTH COACHES ARE LICENSED REGISTERED NURSES, DIETITIANS, RESPIRATORY THERAPISTS, SOCIAL WORKERS, AND OTHER CERTIFIED HEALTH PROFESSIONALS WHO ENCOURAGE SELF-MANAGEMENT AND EDUCATE MEMBERS ON LIVING A HEALTHY LIFE. THEY PROVIDE PERSONALIZED SERVICES TO HELP MEMBERS MAKE LASTING CHANGES TO ACHIEVE BETTER HEALTH AND WELL-BEING. EXAMPLES OF THEIR SUPPORT INCLUDE HELPING DEVELOP A DIET PLAN TO ASSIST WITH WEIGHT LOSS, ASSISTANCE WITH A SPECIFIC MEDICAL CONDITION OR COMPILING A LIST OF QUESTIONS FOR THE MEMBER TO ASK HIS/HER DOCTOR. OUR HEALTH COACHES AND DISEASE MANAGERS FREQUENTLY ENGAGE IN ON-SITE WORKPLACE WELLNESS ACTIVITIES, SUCH AS EMPLOYEE HEALTH FAIRS. THEY ALSO REGULARLY REACH OUT TO SUPPORT MEMBERS IDENTIFIED AS HAVING A CHRONIC DISEASE OR CARE OPPORTUNITY. IHA IS COMMITTED TO IMPROVING THE QUALITY, ACCESS AND AFFORDABILITY OF HEALTH CARE THROUGH MANY COMMUNITY OUTREACH PROGRAMS. INDEPENDENT HEALTH HAS A TEAM OF FOUR COMMUNITY HEALTH OUTREACH WORKERS (CHOWS) BASED IN THE COMMUNITY, WHO MAKE HOME VISITS TO MEDISOURCE MEMBERS IN NEED TO BUILD RELATIONSHIPS IN TARGETED NEIGHBORHOODS, TO PROMOTE HEALTH AND WELLNESS BEHAVIORS AND BELIEFS. CHOWS SPECIFICALLY WORK WITH MEMBERS WHO INAPPROPRIATELY UTILIZE SERVICES. THEY FOCUS ON GETTING MEMBERS IN NEED OF CARE TO A VISIT, SCHEDULING APPOINTMENTS, COORDINATING TRANSPORTATION AND BRIDGING LANGUAGE BARRIERS. THESE DEDICATED WORKERS, WHO ARE ALL CERTIFIED DIABETES AND CHRONIC DISEASE PEER EDUCATORS, PROVIDE CARE COORDINATION SERVICES TO MEMBERS IN NEED OF PREVENTIVE SERVICES, SCREENINGS OR A PRIMARY CARE PROVIDER. CHOWS COLLABORATE WITH IHA'S CASE MANAGEMENT DEPARTMENT TO BRING MEMBERS HOPE AND AN UNDERSTANDING OF COMPLEX ISSUES. SOME OF THE SERVICES THE CHOWS PROVIDE INCLUDE: - TEACHING DIABETES AND CHRONIC DISEASE SELF-MANAGEMENT GROUP CLASSES IN COMMUNITY CENTERS; - ONE-ON-ONE DIABETES EDUCATION TO MEMBERS WHO ARE UNABLE TO LEAVE THEIR HOMES; - HELP RUN A GRANT-FUNDED PROGRAM CALLED "BABY AND ME, TOBACCO FREE," A SMOKING CESSATION PROGRAM FOR PREGNANT WOMEN; - PROVIDING NEW MEMBER ORIENTATION TO HELP MEMBERS UNDERSTAND HOW TO USE THEIR BENEFITS, ALIGN THEM WITH A PRIMARY CARE PHYSICIAN, CLOSE GAPS IN CARE, AND APPROPRIATE EMERGENCY ROOM USE. IHA'S MEDICARE FAMILY CHOICE PLAN IS A MEDICARE ADVANTAGE SPECIAL NEEDS PLAN OFFERED IN NURSING FACILITIES IN WESTERN NEW YORK. FAMILY CHOICE OF NEW YORK IS A CARE MANAGEMENT COMPANY THAT WORKS IN PARTNERSHIP WITH AREA NURSING HOMES, PHYSICIANS AND HOSPITALS TO BRING ADDITIONAL CARE - INCLUDING ENHANCED HEALTH CARE AND SOCIAL SERVICES - TO THE PATIENTS WHO NEED SPECIALIZED MEDICAL AND NURSE MANAGEMENT. THE PROGRAM ACCOMPLISHES THIS BY ASSIGNING A NURSE PRACTITIONER WHO IS SPECIALLY TRAINED IN GERIATRICS TO NURSING HOME RESIDENTS. THE GOAL IS TO IMPROVE NOT ONLY THE MEMBER'S QUALITY OF CARE, BUT ALSO THEIR QUALITY OF LIFE. FAMILY CHOICE'S SPECIALLY TRAINED NURSE PRACTITIONERS AND PHYSICIAN ASSISTANTS ARE ON CALL 24 HOURS A DAY, SEVEN DAYS A WEEK TO PROVIDE CARE AND SUPPORT AS NEEDED. THEY WORK IN COLLABORATION WITH THE MEMBER'S PHYSICIANS AND THE NURSING FACILITY'S STAFF TO IDENTIFY POTENTIAL PROBLEMS BEFORE THEY BECOME SERIOUS, AND MINIMIZE UNNECESSARY AND DISRUPTIVE EMERGENCY ROOM VISITS AND HOSPITAL STAYS WHENEVER IT'S SAFE AND APPROPRIATE. PART OF THE AFFORDABLE CARE ACT AND MEDICAID REFORM EFFORTS, HEALTH HOMES ARE COMMUNITY NETWORKS OF PROVIDERS DESIGNATED BY THE STATE TO COORDINATE CARE AND SOCIAL NEEDS FOR MEDICAID MEMBERS WITH CHRONIC CONDITIONS, SUCH AS HIV/AIDS, SERIOUS MENTAL ILLNESS OR MULTIPLE CHRONIC HEALTH PROBLEMS. IHA ASSIGNS MEMBERS TO HEALTH HOMES AND SUPPORTS THESE NETWORKS ADMINISTRATIVELY, BILLING FOR SERVICES RENDERED AND REIMBURSING THEM. FOR FRAIL ELDERLY MEMBERS AND THEIR CAREGIVERS, THE CAREPARTNERS PROGRAM IS AVAILABLE AT NO ADDITIONAL COST. THIS HOME-BASED PROGRAM FACILITATES THE RIGHT CARE AND LIVING ENVIRONMENT AND IS DESIGNED TO PREVENT EMERGENCY ROOM VISITS AND HOSPITALIZATIONS. THROUGH HOME VISITS AND PHONE CALLS, REGISTERED NURSES AND SOCIAL WORKERS HELP COORDINATE CARE AND OFFER PSYCHO-SOCIAL SUPPORT, INCLUDING LINKING MEMBERS AND CAREGIVERS TO COMMUNITY AND FINANCIAL RESOURCES, ASSESSING THE SAFETY OF THE MEMBER AND HELPING COMPLETE ADVANCE DIRECTIVES IN ACCORDANCE WITH THE MEMBER'S WISHES. MEMBERS ALSO HAVE 24-HOUR ACCESS TO A REGISTERED NURSE THROUGH THIS PROGRAM. IHA OFFERS AN ADDITIONAL LEVEL OF SUPPORT AT NO COST TO MEMBERS FACING SERIOUS ILLNESS AND THEIR FAMILIES THROUGH OUR PALLIATIVE CARE PROGRAM. THE PALLIATIVE CARE TEAM, WHICH INCLUDES A REGISTERED NURSE, SOCIAL WORKER AND MEDICAL DIRECTOR, PARTNERS WITH THE MEMBER'S PHYSICIAN TO COORDINATE CARE AND REDUCE AVOIDABLE HOSPITAL VISITS AND ADMISSIONS. THE PALLIATIVE CARE PROFESSIONALS HAVE OPEN AND SUPPORTIVE DISCUSSIONS ABOUT TREATMENT CHOICES WITH THE MEMBER AND PROVIDE THE SAME OUTREACH AND SERVICES AS CAREPARTNERS WITH THE GOAL OF HELPING MEMBERS LIVE MORE COMFORTABLY BY MANAGING SYMPTOMS IN ACCORDANCE WITH THEIR HEALTH CARE WISHES TO PROVIDE A BETTER QUALITY OF LIFE. IN ADDITION, IHA DEVELOPS AND CONDUCTS EXTENSIVE COMMUNITY WELLNESS AND BENEFIT INITIATIVES THAT HELP MEMBERS LEAD HEALTHIER LIVES AND HELP EMPLOYERS CONTROL HEALTH CARE COSTS. INCLUDED AMONG THESE INITIATIVES ARE PREVIOUS COMMUNITY WELLNESS AWARENESS PROGRAMS: PRACTICE EXCELLENCE, THE NATIONALLY RECOGNIZED PAY FOR PERFORMANCE PROGRAM, AND THE IDEALIZED DESIGN OF CLINICAL OFFICE PRACTICE, A MULTI-FACETED APPROACH TO RE-DESIGN PHYSICIAN OFFICES TO BE MORE PATIENT-CENTRIC. IHA ALSO CONTRACTED WITH THE NEW YORK STATE DEPARTMENT OF HEALTH IN A HEALTH CARE REFORM ACT (HCRA) PAY FOR PERFORMANCE DEMONSTRATION PROJECT (P4P) TO SUPPORT REGIONAL EFFORTS TO IMPROVE THE QUALITY OF HEALTH CARE, BY DEVELOPING A STANDARDIZED PHYSICIAN PERFORMANCE MEASUREMENT AND REPORTING SYSTEM. THIS GRANT EXPIRED DECEMBER 31, 2009; HOWEVER AT THE END OF THIS GRANT PERIOD THE THREE REGIONAL HEALTH PLANS ENDORSED A CONTINUATION STRATEGY FOR THE QUALITY MEASURES COLLABORATIVE PROGRAM. THE PLANS CONTINUE TO PROVIDE REGULAR DATA EXTRACTS TO P2 COLLABORATIVE'S DESIGNATED DATA MANAGEMENT VENDOR, VIPS, WHO PERFORMS DATA AGGREGATION AND ANALYSIS. THE P2 COLLABORATIVE THEN REPORTS THIS PERFORMANCE DATA TO PROVIDERS VIA A SECURE INTERNET-BASED PORTAL. EACH PLAN PROVIDES ONGOING FUNDING FOR THE QUALITY MEASURES COLLABORATIVE PROPORTIONATE TO ITS RESPECTIVE MARKET SHARE. IHA ALSO SUBSIDIZES INDIGENT CARE AND HEALTH CARE INITIATIVES UNDER HCRA AND CONTRIBUTES TO A PROFESSIONAL EDUCATION POOL, LARGELY TO FUND GRADUATE MEDICAL EDUCATION EXPENSES. IHA IS ALSO RESPONSIBLE FOR THE COVERED LIVES ASSESSMENT BASED ON THE REGION IN WHICH THE MEMBER RESIDES AND HIS/HER ENROLLMENT STATUS (FAMILY OR INDIVIDUAL). SURCHARGES AND COVERED LIVES REMITTANCES ARE REQUIRED MONTHLY, AND TOTALED APPROXIMATELY $15.7 MILLION DURING 2017. IHA'S REDSHIRT VOLUNTEER PROGRAM PROVIDES IHA ASSOCIATES AN OPPORTUNITY TO VOLUNTEER IN THEIR COMMUNITY, WHILE PROMOTING IHA AS A COMPANY WHO IS WILLING TO HELP GIVE BACK TO WNY. REDSHIRT ASSOCIATES VOLUNTEERS PROVIDE THE REDSHIRT TREATMENT TO THE COMMUNITY THROUGH DIRECT ASSOCIATE INTERACTION AND EXHIBIT IHA'S MESSAGE OF QUALITY CARE THROUGHOUT WESTERN NEW YORK. THE REDSHIRT TREATMENT IS A COMPANY-WIDE COMMITMENT TO DEMONSTRATE OUR CORE VALUES OF BEING PASSIONATE, CARING, RESPECTFUL, COLLABORATIVE AND ACCOUNTABLE. DURING 2017, 212 IHA ASSOCIATES SERVED AS REDSHIRT VOLUNTEERS. IN TOTAL, THESE INDIVIDUALS VOLUNTEERED AT 85 COMMUNITY EVENTS, WHICH REPRESENTED 700 HOURS OF VOLUNTEER TIME. IHA ENCOURAGES ITS MANAGEMENT TEAM AND ASSOCIATES TO SUPPORT THE LOCAL COMMUNITY. TO THIS END, WE ARE PROUD TO SAY MORE THAN 117 MEMBERS OF OUR MANAGEMENT TEAM ARE VOLUNTEERS OR ACTIVE PARTICIPANTS AS DIRECTORS ON COMMUNITY BOARDS. THE IHA ASSOCIATE DRESS DOWN DAY AND MONTH PROGRAM ALLOWS ASSOCIATES TO MAKE A CHARITABLE CONTRIBUTION IN EXCHANGE FOR THE PRIVILEGE OF DRESSING DOWN FOR WORK. THIS PROGRAM HAS RESULTED IN SUBSTANTIAL SUPPORT FOR THE CHARITABLE ORGANIZATIONS IN OUR COMMUNITY AND DEMONSTRATES THE GOODWILL OF IHA ASSOCIATES. THE PROGRAM IS ASSOCIATE-DRIVEN WITH A GOAL TO BROADLY SUPPORT MANY 501(C)(3) ORGANIZATIONS THROUGHOUT WESTERN NEW YORK. IN 2017, IHA RAISED MORE THAN $111,000 FOR NON-PROFIT ORGANIZATIONS IN OUR COMMUNITY. IN ADDITION, IHA ASSOCIATES SUPPORT THE UNITED WAY OF BUFFALO AND ERIE COUNTY'S COMMUNITY CARE CAMPAIGN. THE UNITED WAY OF BUFFALO AND ERIE COUNTY WORKS TO ADVANCE THE COMMON GOOD BY FOCUSING ON WELLNESS, INCOME AND EDUCATION. IT PROMOTES LONG-TERM GOOD HEALTH AND INDEPENDENCE, AND WORKS TO CREATE LONG-LASTING CHANGES THAT WILL IMPROVE THE LIVES OF PEOPLE LIVING IN POVERTY IN ERIE COUNTY. IHA CONDUCTS A MONTH-LONG CAMPAIGN EACH FALL TO RAISE MONEY FOR UNITED WAY. IHA CARES ABOUT MAKING A DIFFERENCE IN THE LIVES OF INDIVIDUALS IN THE COMMUNITIES WE SERVE. THE 2017-2018 CAMPAIGN RAISED MORE THAN $90,000. THE COMMUNITY ALSO BENEFITS FROM IHA'S SPONSORSHIPS THAT PROMOTE HEALTH AND WELLNESS. ONE EXAMPLE IS IHA'S COMMITMENT OF SUPPORT TO THEATRE OF YOUTH'S (TOY) HEALTH SERIES, A PROFESSIONAL THEATRE FOR YOUNG AUDIENCES THAT FOCUSES ON HEALTH-RELATED ISSUES IN CHILDREN. ANOTHER EXAMPLE OF IHA IN THE COMMUNITY IS EVIDENT IN OUR SPONSORSHIP AND ACTIVE PARTICIPATION IN SLOW ROLL BUFFALO, A FAMILY-FRIENDLY BIKE EVENT THAT KICKED OFF IN BUFFALO IN 2015. IN ADDITION TO BEING A MAJOR SPONSOR OF THE PROGRAM, WHICH DREW THOUSANDS OF PEOPLE OUT ON MONDAYS IN THE SUMMER FOR A GUIDED BIKE RIDE THROUGH THE CITY, OUR REDSHIRTS VOLUNTEERED AND MANY OF OUR ASSOCIATES PARTICIPATED. THIS IS JUST ANOTHER EXAMPLE OF INDEPENDENT HEALTH'S COMMITMENT TO BUILDING A HEALTHIER COMMUNITY. THERE IS ALSO A UNIQUE PARTNERSHIP WITH THE YMCA BUFFALO NIAGARA AND IHA THAT INTEGRATES PERSONAL AND FAMILY FITNESS OPPORTUNITIES WITH ON-SITE MEDICAL SERVICES IN A NEW STATE-OF-THE-ART, 92,000-SQUARE-FOOT FACILITY THAT OPENED IN EARLY 2013. IHA HAS PROVIDED $2 MILLION TOWARDS THIS INITIATIVE. THE NEW YMCA HAS AN ON-SITE PRESENCE OFFERING HEALTH AND WELLNESS PROGRAMS INCLUDING CUSTOMIZED FITNESS PROGRAMS TARGETING OBESITY. YMCA BUFFALO NIAGARA AND IHA ALSO TEAMED UP WITH LOCAL PARKS THIS SUMMER TO PROMOTE THE VALUE OF A HEALTHY LIFESTYLE AND ENCOURAGE WESTERN NEW YORK RESIDENTS TO PARTICIPATE IN PHYSICAL ACTIVITY. BETWEEN JUNE AND AUGUST 2017 THE WNY COMMUNITY WAS ABLE TO PARTICIPATE IN FREE 60-MINUTE FITNESS CLASSES WITH YMCA-CERTIFIED INSTRUCTORS. IN 2017 THE PROGRAM EXPANDED TO 21 AREA PARKS AND INCLUDED 33 SESSIONS WEEKLY, COMPARED TO 2016 WHICH HAD 18 AREA PARKS AND 30 WEEKLY CLASSES. IN AN EFFORT TO FURTHER PROMOTE HEALTHIER LIFESTYLES IN OUR COMMUNITY, IHA JOINED FORCES WITH SNYDER CORPORATION AND FITNESS RIDGE WORLDWIDE TO BRING THE BIGGEST LOSER RESORT NIAGARA TO WNY AT THE BEAVER HOLLOW CONFERENCE CENTER IN WYOMING COUNTY. THE RESORT FOCUSES ON EXERCISE, HEALTH NUTRITION AND EDUCATION. THE PROGRAM ENGAGES PARTICIPANTS IN THEIR OWN HEALTH AND GIVES THEM THE TOOLS THEY NEED TO ADOPT LIFESTYLE CHANGES TO STAY HEALTHY AND REDUCE THEIR RISK OF CHRONIC DISEASE LIKE DIABETES AND HEART DISEASE. IHA IS EXPECTED TO PROVIDE $3 MILLION TOWARDS THIS INITIATIVE IHA HAS ALSO JOINED TOGETHER WITH THE BUFFALO MUSEUM OF SCIENCE TO OPEN THE FIRST OF EIGHT PERMANENT SCIENCE STUDIOS AT THE MUSEUM. CALLED "EXPLORE YOU PRESENTED BY INDEPENDENT HEALTH," THE THEMED STUDIO ALLOWS VISITORS TO EXPLORE ANATOMY AND LEARN ABOUT IMPORTANT CHOICES THEY CAN MAKE TO IMPROVE AND MAINTAIN THEIR HEALTH. THE EXHIBIT OPENED IN MARCH OF 2012 AND WILL BE OPEN FOR 10 YEARS. IN CONNECTION TO THE EXHIBIT, IN FEBRUARY 2013, 2014, 2015, 2016 AND 2017, IHA HOSTED AN "EXPLORE TOGETHER" FREE EVENT FOR PARENTS AND CHILDREN TO LEARN ABOUT HEALTH TOPICS THROUGH INTERACTIVE ACTIVITIES AND PRESENTATIONS. IHA IS ALSO PROUD TO PARTNER WITH LARKIN SQUARE TO SPONSOR MANY COMMUNITY EVENTS AND HELP BRING HEALTHY INITIATIVES TO THIS NEWLY REVITALIZED PUBLIC GATHERING SPACE ALL YEAR LONG. IHA COLLABORATED WITH FOOD TRUCKS PARTICIPATING IN LARKIN SQUARE'S FOOD TRUCK TUESDAYS EVENTS FROM MAY THROUGH OCTOBER 2017, TO HELP THEM OFFER HEALTHY MENU ITEMS THAT ARE CONSIDERED TO BE LOWER IN FAT, SATURATED FAT, CHOLESTEROL AND SODIUM. IHA AND THE BUFFALO BILLS ARE WORKING TOGETHER TO IMPROVE THE HEALTH AND WELL-BEING OF THE WESTERN NEW YORK COMMUNITY THROUGH A VARIETY OF INITIATIVES, INCLUDING THE INDEPENDENT HEALTH AND BUFFALO BILLS HEALTH & WELLNESS CHALLENGE, A COMMUNITY-WIDE FITNESS AND NUTRITION PROGRAM TO ENCOURAGE HEALTHY LIVING. OVERALL, IN 2017 MORE THAN 40,100 INDIVIDUALS IN THE REGION PARTICIPATED IN THE SPRING AND FALL CHALLENGE, WHICH RAN FROM APRIL 24 THROUGH JUNE 4 AND OCTOBER 9 THROUGH NOVEMBER 19, 2017. NEW THIS YEAR, A "COMMUNITY GOAL" WAS ADDED, WHICH ENCOURAGED PARTICIPANTS TO COLLECTIVELY REACH 1,000,000 FITNESS MINUTES DURING THE CHALLENGE. THAT GOAL WAS MET ON NOVEMBER 13, 2017 AND ANY PARTICIPANT WHO TRACED AT LEAST 20 FITNESS MINUTES DURING THE CHALLENGE WAS AWARDED AN ADDITIONAL 25 POINTS TOWARD THE PRIZE DRAWINGS. CURRENTLY, PARTICIPANTS HAVE TRACKED MORE THAN 1.4 MILLION FITNESS MINUTES. THE BUFFALO BILLS AND IHA ALSO WORKED TOGETHER TO ENCOURAGE PHYSICAL ACTIVITY AND HEALTHY EATING AMONG OUR COMMUNITY'S YOUTH IN SCHOOL AND AT HOME THROUGH THE INDEPENDENT HEALTH FOUNDATION'S FITNESS FOR KIDS CHALLENGE AND THE BUFFALO BILLS PLAY 60 CHALLENGE. IN ADDITION, IHA SPONSORS THE HILLSIDE WORK-SCHOLARSHIP CONNECTION TO HELP ENSURE OUR COMMUNITY'S YOUTH HAVE THE OPPORTUNITY TO REACH THEIR FULL POTENTIAL. BY ENGAGING OUR YOUTH THROUGH EVIDENCE-BASED PROGRAMS SUCH AS HILLSIDE'S, IHA CAN MAKE A SUSTAINABLE IMPACT IN THE COMMUNITY'S FUTURE. AS AN EMPLOYMENT PARTNER, IHA NOT ONLY RECOGNIZES THE IMPORTANCE OF HELPING STUDENTS STAY IN SCHOOL AND ACHIEVE ACADEMIC SUCCESS, BUT GRADUATE WITH THE SKILLS AND CONFIDENCE THEY NEED FOR LIFELONG SUCCESS. IHA FURTHER COLLABORATES WITH THE WESTERN NEW YORK COMMUNITY IN ITS AFFILIATION WITH THE HEALTH SCIENCES CHARTER SCHOOL THAT WAS DEVELOPED TO PROVIDE OPPORTUNITIES FOR HIGH SCHOOL STUDENTS FOR CAREERS IN THE MEDICAL FIELD. WNYHEALTH-E-NET FURTHERS IHA'S COMMITMENT TO REDUCING THE COST OF AND IMPROVING THE QUALITY OF HEALTH CARE IN THE WESTERN NEW YORK COMMUNITY. WNYHEALTH-E-NET OPTIMIZES THE DELIVERY OF PATIENT INFORMATION THAT SPEEDS THE DELIVERY AND ACCURACY OF VITAL ELIGIBILITY, CLAIM STATUS, REFERRAL AND AUTHORIZATION INFORMATION TO THE PROVIDER COMMUNITY, AND WESTERN NEW YORK'S CLINICAL INFORMATION EXCHANGE (HEALTH-E-LINK) - A 501(C) (3) ORGANIZATION THAT OPERATES AN INFORMATION EXCHANGE TO FACILITATE ACCESS TO CLINICAL INFORMATION AMONG HEALTH CARE PROVIDERS AND HEALTH INSURERS. HEALTH-E-LINK IS PART OF THE STATEWIDE HEALTH INFORMATION NETWORK OF NEW YORK (SHIN-NY), A TECHNOLOGY FRAMEWORK SPANNING THE ENTIRE STATE THAT ALLOWS HEALTH CARE PROVIDERS EFFICIENT ACCESS TO THEIR PATIENTS' DATA. HEALTH-E-LINK HAS BEEN RECOGNIZED FOR ITS WORK IN BUILDING A REGIONAL HEALTH INFORMATION TECHNOLOGY INFRASTRUCTURE AND FOR TESTING INNOVATIVE APPROACHES BY BOTH STATE AND FEDERAL AGENCIES, INCLUDING BEING NAMED A BEACON COMMUNITY, AN EFFORT FUNDED BY THE OFFICE OF THE NATIONAL COORDINATOR FOR HEALTH INFORMATION TECHNOLOGY. AS OF NOVEMBER 2017, APPROXIMATELY 85 PERCENT OF WESTERN NEW YORK PRACTICES PARTICIPATE WITH HEALTH-E-LINK, 300 DATA SOURCES ARE CONNECTED, MORE THAN 205 MILLION RESULTS (LAB, RADIOLOGY AND TRANSCRIBED REPORTS) ARE AVAILABLE, AND MORE THAN ONE MILLION COMMUNITY-WIDE CONSENTS HAVE BEEN SIGNED BY PATIENTS AUTHORIZING TREATING PHYSICIANS TO ACCESS THEIR ELECTRONIC MEDICAL RECORDS THROUGH HEALTH-E-LINK. IHA COORDINATES THE DELIVERY OF HEALTH CARE SERVICES FOR APPROXIMATELY 170,248 MEMBERS OF IHA'S COMMERCIAL PRODUCTS UNDER ARTICLE 44 OF THE NEW YORK PUBLIC HEALTH LAW, MEDICAID MANAGED CARE PRODUCTS AS ADMINISTERED BY THE STATE OF NEW YORK, AND MEDICARE MANAGED CARE PRODUCTS AS ADMINISTERED BY CMS AS OF NOVEMBER 2017. INDEPENDENT HEALTH PROVIDES HEALTH BENEFITS AND SERVICES TO INDIVIDUALS IN WESTERN NEW YORK AND THROUGHOUT THE COUNTRY. THE COMPANY HAS CONSISTENTLY BEEN RATED AMONG THE TOP HEALTH PLANS IN THE COUNTRY FOR CUSTOMER SERVICE AND MEMBER SATISFACTION. INDEPENDENT HEALTH HAS RECEIVED THE NATIONAL COMMITTEE FOR QUALITY ASSURANCE'S (NCQA) HIGHEST ACCREDITATION STATUS OF "EXCELLENT" FOR ITS COMMERCIAL HMO/POS AND MEDICARE LINES OF BUSINESS FOR 18 CONSECUTIVE YEARS. "EXCELLENT" ACCREDITATION IS GRANTED ONLY TO THOSE HEALTH PLANS THAT EXHIBIT LEVELS OF SERVICE AND CLINICAL QUALITY THAT MEET OR EXCEED NCQA'S RIGOROUS REQUIREMENTS FOR CONSUMER PROTECTION AND QUALITY IMPROVEMENT. INDEPENDENT HEALTH WAS ALSO RANKED AS THE TOP HEALTH INSURANCE PLAN IN THE NEW YORK/NEW JERSEY REGION, ACCORDING TO J.D. POWER'S 2010, 2011, 2012, 2013, 2016 AND 2017 U.S. MEMBER HEALTH INSURANCE PLAN STUDIES, AND RANKED SECOND IN THE NEW YORK/NEW JERSEY REGION IN THE J.D. POWER 2014 AND 2015 U.S. MEMBER HEALTH PLAN STUDIES. IN ADDITION, INDEPENDENT HEALTH WAS RANKED AMONG THE HIGHEST-RANKED HEALTH PLANS IN THE NATION FOR ALL LINES OF BUSINESS - COMMERCIAL, MEDICARE AND MEDICAID - ACCORDING TO THE NATIONAL COMMITTEE FOR QUALITY ASSURANCE (NCQA) IN ITS HEALTH INSURANCE PLAN RANKINGS 2016-2017. THE RANKINGS ARE BASED ON CLINICAL QUALITY, MEMBER SATISFACTION AND NCQA ACCREDITATION STANDARDS. LONG BEFORE THE ENACTMENT OF THE AFFORDABLE CARE ACT (ACA), IHA WAS TAKING STEPS TO TRANSFORM HEALTH CARE IN WESTERN NEW YORK, PROVIDING OUR MEMBERS WITH MANY OF THE QUALITY COVERAGE AND MARKET REFORM PROVISIONS CONTAINED IN THE LAW ($0 COPAY FOR PREVENTIVE SERVICES, AGE-EXTENSION RIDERS UP TO AGE 26, NO LIFETIME LIMITS ON MEMBERS' COVERAGE, AND COMPREHENSIVE INTERNAL AND EXTERNAL REVIEW PROCESSES TO ENSURE OUR MEMBERS RECEIVED NEEDED HEALTH CARE SERVICES). IHA CONTINUES TO LOOK FOR OPPORTUNITIES TO IMPROVE THE QUALITY AND AFFORDABILITY OF HEALTH CARE FOR OUR REGION, AS ACHIEVING HEALTH CARE REFORM WILL REQUIRE COMMUNITY OWNERSHIP, WIDE-RANGING PARTNERSHIPS AND RENEWED COLLABORATION AMONG DIVERSE STAKEHOLDERS. BY FOCUSING ON COLLABORATION AND HEALTH ENGAGEMENT, IHA CAN HELP BUILD A CULTURE OF HEALTH IN OUR REGION. AS A COMMUNITY, WE MUST CONTINUE TO DEVELOP PROGRAMS THAT ENHANCE FITNESS, FOSTER PREVENTION AND ENGAGE PEOPLE IN BETTER HEALTH. THESE EFFORTS WILL HELP PEOPLE MAKE POSITIVE LIFESTYLE CHANGES AND REDUCE CHRONIC DISEASE - ESSENTIAL ELEMENTS FOR LOWERING HEALTH CARE COSTS AND IMPROVING THE OVERALL HEALTH STATUS OF OUR COMMUNITY. IHA'S COLLABORATIVE EFFORTS ARE HAVING AN IMPACT. THE COMMONWEALTH FUND REPORT RANKED BUFFALO 54TH BEST AMONG 306 MEDICARE SERVICE AREAS FOR QUALITY, ACCESSIBILITY AND AFFORDABILITY OF CARE. IHA WAS IN THE TOP 10 PERCENT FOR ACCESS AND AFFORDABILITY AND IN THE TOP QUARTILE FOR PREVENTION, TREATMENT AND OVERALL PERFORMANCE. THIS RANKING IS EVEN MORE IMPRESSIVE GIVEN THAT BUFFALO IS CITED AS THE THIRD-POOREST CITY IN THE U.S. AND THE STUDY REVEALED A STRONG CORRELATION BETWEEN POVERTY AND A POOR SCORE AMONG THE RANKED AREAS. ADDITIONALLY, THE COLLABORATIVE WORK UNDER WAY IN WESTERN NEW YORK WAS RECOGNIZED IN A RECENTLY RELEASED CASE STUDY ON REGIONAL HEALTH CARE IMPROVEMENT BY THE COMMONWEALTH FUND, BUFFALO AND WESTERN NEW YORK: COLLABORATING TO IMPROVE HEALTH SYSTEM PERFORMANCE BY LEVERAGING SOCIAL CAPITAL WHICH TAKES A CLOSER LOOK AT THE REASONS FOR OUR REGION'S SUCCESS. THESE REPORTS EMPHASIZE THE NEED FOR LOCAL SOLUTIONS AND WIDESPREAD ENGAGEMENT AND COLLABORATION TO ACHIEVE THE QUADRUPLE AIM OF BETTER HEALTH, BETTER CARE, LOWER COSTS AND PROVIDER VITALITY. FORM 990, PART VI, SECTION A, LINE 2 MICHAEL W. CROPP, MARK I. JOHNSON, JOHN R. RODGERS, THOMAS J. FOELS, JOHN MINEO, ESQ., AND MICHAEL J. FASO HAVE A BUSINESS RELATIONSHIP (BOARD MEMBERS OF A RELATED TAXABLE ENTITY). SIDNEY N. WEISS, STUART H. ANGERT, MICHAEL W. CROPP, MOISES SUDIT, NORA B. SULLIVAN, MARK I. JOHNSON, ANTHONY B. MARTINO, DANIEL B. WEINTRAUB, AND JOHN MINEO, ESQ. HAVE A BUSINESS RELATIONSHIP (BOARD MEMBERS OF A RELATED TAXABLE ENTITY). THOMAS J. FOELS AND MICHAEL HEIMERL HAVE A BUSINESS RELATIONSHIP (PRIVATE ENTERPRISE). FORM 990, PART VI, SECTION B, LINE 11B FORM 990 WAS REVIEWED WITH THE CHAIRMAN OF THE BOARD OF DIRECTORS AND THE PRESIDENT OF INDEPENDENT HEALTH. THE FINAL FORM 990 WAS DISTRIBUTED TO THE BOARD OF DIRECTORS VIA A SECURE EMAIL FOR REVIEW AND COMMENTS PRIOR TO THE FILING OF THIS RETURN. FORM 990, PART VI, SECTION B, LINE 12C INDEPENDENT HEALTH ASSOCIATION, INC.'S (IHA) CONFLICT OF INTEREST REPORTING POLICY ENCOMPASSES ALL CURRENT IHA OFFICERS AND EMPLOYEES (INCLUDING HIGHEST COMPENSATED AND KEY EMPLOYEES) OF THE ORGANIZATION. EMPLOYEES ARE REQUIRED AS PART OF THEIR EMPLOYMENT WITH IHA TO IMMEDIATELY REPORT CONFLICTS OF INTEREST THAT THEY ARE PARTY TO OR THAT THEY OBSERVED, TO A MANAGEMENT OR INDEPENDENT HEALTH'S CHIEF COMPLIANCE OFFICER FOR REVIEW BY THE CONFLICT OF INTEREST COMMITTEE OF INDEPENDENT HEALTH. CONFLICTS ARE ALSO IDENTIFIED ANNUALLY WHEN THE SIGNED EMPLOYEE ATTESTATIONS, CONFIDENTIAL QUESTIONNAIRES & PLEDGE OF CONFIDENTIALITY AND CONTINUING DISCLOSURE FORM (FOR HIGHEST COMPENSATED EMPLOYEES, KEY EMPLOYEES, OFFICERS, DIRECTORS, AND MEMBERS OF THE BOARD) ARE RECEIVED. IF A CONFLICT OF INTEREST IS IDENTIFIED, THE INDIVIDUAL IS PROHIBITED FROM PARTICIPATING IN THE DELIBERATIONS OR DECISIONS RELATED TO THIS TRANSACTION. THE RESOLUTION OF THE CONFLICT REVIEW WILL BE DOCUMENTED IN MEETING MINUTES MAINTAINED BY THE CONFLICT OF INTEREST COMMITTEE. FORM 990, PART VI, SECTION B, LINE 15 THE GOVERNING BOARD OF DIRECTORS OF INDEPENDENT HEALTH ASSOCIATION, INC. (IHA) APPOINTED A GROUP OF BOARD MEMBERS TO ACT AS THE COMPENSATION COMMITTEE. COMPENSATION OF THE CEO IS SUBJECT TO REVIEW AND APPROVAL BY THE COMPENSATION COMMITTEE AND THE BOD ANNUALLY. ADDITIONALLY, THE RECOMMENDATIONS OF THE CEO PERTAINING TO THE COMPENSATION OF HIS/HER DIRECT REPORTS ARE SUBJECT TO REVIEW AND ADVISEMENT BY THE COMPENSATION COMMITTEE. TO DETERMINE EXECUTIVE COMPENSATION AND INCENTIVE ELIGIBILITY OF THE CEO AND HIS/HER DIRECT REPORTS, THE COMPENSATION COMMITTEE ENGAGES AN INDEPENDENT COMPENSATION CONSULTANT TO REVIEW THE RECOMMENDATIONS AND ANY COMPARABLE DATA (COMPENSATION OF SIMILARLY QUALIFIED PERSONS IN FUNCTIONALLY COMPARABLE POSITIONS AT SIMILARLY SIZED ORGANIZATIONS). COMPARABILITY DATA MAY BE OBTAINED VIA THE FORM 990 OF OTHER ORGANIZATIONS AND/OR COMPENSATION SURVEYS OR STUDIES. THE COMPENSATION COMMITTEE, IN DELIBERATIONS WITH THE INDEPENDENT CONSULTANT, DETERMINES THE COMPENSATION AND INCENTIVE FOR THE CEO. THE COMPENSATION COMMITTEE WILL DOCUMENT THE DELIBERATIONS AND DECISIONS REGARDING THE COMPENSATION ARRANGEMENTS. THE BOD WILL THEN RATIFY ALL DECISIONS OF THE COMPENSATION COMMITTEE AT ITS REGULARLY SCHEDULED BOARD MEETING. IHA'S EXECUTIVE COMPENSATION POLICY/PROCESS IS AN ANNUAL PROCESS (LAST PERFORMED IN 2017) AND WAS USED TO ESTABLISH COMPENSATION FOR THE FOLLOWING POSITIONS: EXECUTIVE VICE PRESIDENT - CHIEF FINANCIAL OFFICER; EXECUTIVE VICE PRESIDENT - CHIEF ENGAGEMENT & SERVICING OFFICER; EXECUTIVE VICE PRESIDENT - CHIEF OPERATING OFFICER; EXECUTIVE VICE PRESIDENT - CHIEF MEDICAL OFFICER; EXECUTIVE VICE PRESIDENT - GENERAL COUNSEL, EXECUTIVE VICE PRESIDENT - CHIEF HR OFFICER; EXECUTIVE VICE PRESIDENT - CHIEF NETWORK & PERFORMANCE MANAGEMENT; SENIOR VICE PRESIDENT- CHIEF HEALTH INNOVATION OFFICER; AND VICE PRESIDENT - CHIEF AUDIT EXECUTIVE. THE CEO EXCLUDES HIMSELF/HERSELF FROM DELIBERATIONS WHEN DISCUSSING HIS/HER COMPENSATION. FORM 990, PART VI, SECTION C, LINE 19 UPON REQUEST, THE ORGANIZATION WILL MAKE AVAILABLE: A COPY OF ITS 990, ITS AUDITED FINANCIAL STATEMENTS, AND ANY OTHER DOCUMENTS AS REQUIRED. FORM 990, PART VII CONTACT ADDRESSES FOR OFFICERS, DIRECTORS, ETC DAVID V. NARAMORE - 692 WHITTIER RD., SPENCERPORT, NY 14559. PAMELA S. MENARD (END 3/16) - 29 EAGLE TRACE DR., WILLIAMSVILLE, NY 14221. FORM 990, PART XI, LINE 8: DURING 2017, THE ASSOCIATION DISCOVERED CERTAIN ERRORS IN DATA PREVIOUSLY SUBMITTED TO CMS IN CONNECTION WITH THE CMS RISK ADJUSTMENT PROCESS FOR THE FINANCIAL STATEMENT YEARS 2012, 2014, AND 2015. THE ASSOCIATION IDENTIFIED AND QUANTIFIED THE EFFECT OF THE OVERPAYMENT AND PROVIDED THE REQUIRED INFORMATION FOR THE SUBMISSION OF CORRECTED DATA AND RETRACTION OF AMOUNTS RESULTING FROM THE DATA SUBMISSION ERRORS FOR SUCH YEARS IN ACCORDANCE WITH CMS INSTRUCTIONS. THE ASSOCIATION CORRECTED THE ERROR AS AN ADJUSTMENT TO REDUCE BEGINNING NET ASSETS FOR THE PRIOR YEARS' WITH A CORRESPONDING INCREASE TO ACCOUNTS PAYABLE AND ACCRUED EXPENSES. THE ESTIMATED IMPACT OF THE MEDICARE OVERPAYMENT BY YEAR WAS NOT MATERIAL AND DID NOT AFFECT THE ASSOCIATION'S COMPLIANCE WITH STATUTORY RESERVE REQUIREMENTS. 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