2017-11-13T10:21:27-06:00 2016-12-31 PricewaterhouseCoopers LLP 2001 MARKET STREET SUITE 1800 PHILADELPHIA PA 19103 990 2016-01-01 135656874 BLUE CROSS BLUE SHIELD ASSOCIATION % ROBERT J KOLODGY BLUE 3122976000 225 NORTH MICHIGAN AVENUE CHICAGO IL 60601 ROBERT J KOLODGY EVP & CFO 3122976462 2017-11-10 true ERICA R MCREYNOLDS P00977806 2673306228 2017-11-07 155.201.188.33 23522320173175000010 2017-11-13 P E1FB90CECCE577791A30272666E55BB75915993F 4C4C4B9893EC382B44A01CC035730476DEEC612F 2016 2017-02-10 21:41:12Z SCOTT SEROTA 225 NORTH MICHIGAN AVENUE CHICAGO IL 60601 553267531 false X WWW.BCBS.COM X 1948 IL SEE SCHEDULE O 37 36 1292 0 8688872 0 0 500166247 529379397 3431971 3493769 580131 3256939 504178349 536130105 0 0 0 0 201104962 209581774 0 0 0 308585154 325374555 509690116 534956329 -5511767 1173776 650271510 646430670 539461724 539476077 110809786 106954593 X SEE SCHEDULE O false false 179137151 0 179424213 SEE SCHEDULE O 147280367 0 161056895 SEE SCHEDULE O 61726973 0 63014935 SEE SCHEDULE O 129312832 0 125834002 517457323 false false true true false false false true false true true false false true true false true false false false false false false false false false false false true false false false false false false true true false false false false false true true true false true 222 0 1292 true true true false false false false false X 37 36 true false false false true true true true true false true true true true true true true true true true true true IL X ROBERT J KOLODGY 3122976462 225 NORTH MICHIGAN AVENUE CHICAGO IL 60601 X David W Anderson Board Member 1.0 0.0 X 0 0 0 Peter Andruszkiewicz Board Member (retired 5/2016) 1.0 0.0 X 0 0 0 Richard L Boals Board Member 3.0 0.0 X 0 0 0 Christopher Booth Board Member 1.0 0.0 X 0 0 0 Chester Burrell Board Member 1.0 0.0 X 0 0 0 Andrew C Corbin Board Member 2.0 0.0 X 0 0 0 Andrew Dreyfus Board Member 3.0 0.0 X 0 0 0 John D Forsyth Board Member 1.0 0.0 X 0 0 0 Mark B Ganz Board Member 2.0 0.0 X 0 0 0 Roberto Garcia-Rodriguez Board Member (START.3/17/2016) 2.0 0.0 X 0 0 0 Don C George Board Member 1.0 0.0 X 0 0 0 Patrick J Geraghty Board Member 3.0 0.0 X 0 0 0 Zelda Geyer-Sylvia Board Member (retired 4/2016) 1.0 0.0 X 0 0 0 Michael A Gold Board Member 1.0 0.0 X 0 0 0 Michael Guyette Board Member 3.0 0.0 X 0 0 0 JD Hickey Board Member 1.0 0.0 X 0 0 0 Daniel J Hilferty Board Member 3.0 0.0 X 0 0 0 David Holmberg Board Member 2.0 0.0 X 0 0 0 Tim Huckle Board Member 1.0 0.0 X 0 0 0 Kim Keck Board Member (START.6/16/2016) 1.0 0.0 X 0 0 0 Terry D Kellogg Board Member 3.0 0.0 X 0 0 0 Scott D Kreiling Board Member 1.0 0.0 X 0 0 0 Daniel J Loepp Board Member 4.0 0.0 X 0 0 0 Charlene Maher Board Member (START.3/17/2016) 1.0 0.0 X 0 0 0 Robert A Marino Board Member 2.0 0.0 X 0 0 0 Paul Markovich Board Member 3.0 0.0 X 0 0 0 Steven S Martin Board Member 2.0 0.0 X 0 0 0 David S Pankau Board Member 2.0 0.0 X 0 0 0 M Carol Pigott Board Member 1.0 0.0 X 0 0 0 Michael Reitz Board Member (retired 2/2016) 1.0 0.0 X 0 0 0 Jeff Roe Board Member 1.0 0.0 X 0 0 0 Rick Schum Board Member 1.0 0.0 X 0 0 0 Paula Steiner Board Member (START.3/17/2016) 3.0 0.0 X 0 0 0 Gary D StHilaire Board Member 1.0 0.0 X 0 0 0 Joseph Swedish Board Member 3.0 0.0 X 0 0 0 Steven Udvarhelyi Board Member 1.0 0.0 X 0 0 0 P Mark White Board Member 3.0 0.0 X 0 0 0 Danette K Wilson Board Member 2.0 0.0 X 0 0 0 J Bradley Wilson Board Member 1.0 0.0 X 0 0 0 Scott P Serota President, CEO & Board Member 40.0 0.0 X X 5034645 0 1500592 William A Breskin Sr. VP, Government Programs 40.0 0.0 X 598101 0 344514 Bhaskar Bulusu VP, Enterprise Information 40.0 0.0 X 327142 0 52585 Maureen Cahill SVP & Chief Human Res. Officer 40.0 0.0 X 606150 0 40326 John Cerisano VP, Federal Relations 40.0 0.0 X 409355 0 197118 Teresa Clark VP, Office of Clinical Affairs 40.0 0.0 X 361552 0 45556 Terry Cooney VP Invest. & Nat Emp Ben Admin 40.0 0.0 X 378885 0 173799 Kathy Didawick VP Congressional Communication 40.0 0.0 X 431784 0 76403 John T Ericksen VP Fed. Relations(end. 1/6/16) 40.0 0.0 X 210882 0 3667 Jena Estes VP Gov. Programs(end. 4/29/16) 40.0 0.0 X 672191 0 22320 Alissa T Fox SR VP, Policy & Representation 40.0 0.0 X 1143528 0 124847 Paul Gerrard VP, Strategic Communications 40.0 0.0 X 357543 0 37410 Kris O Haltmeyer VP, Health Policy & Analysis 40.0 0.0 X 413088 0 31162 Justine Handelman SVP, Policy & Representation 40.0 0.0 X 464538 0 61177 Trent T Haywood SR VP & Chief Medical Officer 40.0 0.0 X 624192 0 35419 Kari J Hedges SVP, National Programs 40.0 0.0 X 529665 0 30358 Mitchell J Helfand VP, Finance 40.0 0.0 X 444503 0 117144 Kim D Holland VP, State Affairs 40.0 0.0 X 320361 0 35090 Mike Joyce VP Chief Auditor & Compliance 40.0 0.0 X 307407 0 92290 Nasir Khan VP & Chief Technology Officer 40.0 0.0 X 457262 0 117556 Robert J Kolodgy Jr Executive VP & CFO 40.0 0.0 X 854319 0 39520 Shirley S Lady VP, Transformation Services 40.0 0.0 X 422180 0 105037 Petar Naumovski VP & Chief Info. Security Ofcr 40.0 0.0 X 463520 0 49141 William S Nehs SR VP, Gen Counsel & Secretary 40.0 0.0 X 590686 0 37520 William O'Loughlin VP & CIO Fed. Employee Program 40.0 0.0 X 590794 0 97363 Doug Porter SR VP, Operations & CIO 40.0 0.0 X 843306 0 96809 Cynthia Rolfe VP, Consumer Brand Strategy 40.0 0.0 X 373610 0 18241 Maureen E Sullivan Chief Strategy & Innov Officer 40.0 0.0 X 820243 0 60705 Mark Talluto VP, Strategy and Analytics 40.0 0.0 X 362915 0 30775 Jennifer Vachon Executive VP & Chief of Staff 40.0 0.0 X 694797 0 118376 Jody A Voss VP Develop., Innovation & GPO 40.0 0.0 X 472463 0 65513 Carole R Flamm Executive Medical Director 40.0 0.0 X 415189 0 99381 Winfred D Lawrence Jr ED Enterprise Program 40.0 0.0 X 321894 0 127289 Robert A Long ED Strategic Services 40.0 0.0 X 372145 0 44343 Steven D Putziger Exc Dir Brand Protect&Finance 40.0 0.0 X 370979 0 45674 David Yoder ED Integrated Care Mgmt 40.0 0.0 X 336354 0 41807 22398168 0 4216827 677 false true false HEALTH INTELLIGENCE CO LLC 225 N MICHIGAN AVENUE CHICAGO IL 60601 DATA ANALYTICS 27660102 KIRKLAND ELLIS 200 E RANDOLPH DRIVE CHICAGO IL 60601 LEGAL SERVICES 21336657 HP ENTERPRISE SERVICES LLC PO BOX 92013 CHICAGO IL 60675 SYSTEM CONSULTING 11523356 ALEGEUS TECHNOLOGIES LLC 1601 TRAPELO RD 2ND FL WALTHAM MA 20451 BENEFIT HEALTH ADMIN 6700424 AXA ASSISTANCE USA INC 122 S MICHIGAN AVENUE CHICAGO IL 60602 MED. CLAIMS PROCESS. 6907295 148 0 FEDERAL EMPLOYEE PROGRAM 900099 179424213 179424213 BLUECARD 900099 161056895 161056895 OTHER SERVICES 900099 63064287 61835272 1229015 CONSULTING & MISC. SERVICES 900099 48772721 48772721 BRAND ENHANCEMENT 900099 36467482 36467482 40593799 36440233 4153566 529379397 2355709 2355709 0 0 0 0 0 4222643 14052843 2576970 14560456 1645673 -507613 1138060 1138060 0 0 0 0 0 0 0 0 0 SERVICE FEE REVENUE 525990 341 341 PARTNERSHIP PASS THROUGH GAINS 900001 -49352 -49352 K-1 INCOME 3305950 3305950 3256939 536130105 523947464 8688872 3493769 X 0 0 0 0 21947730 16023964 5923766 0 145809576 143286054 2523522 13621281 11501111 2120170 17824924 17177550 647374 10378263 10122098 256165 0 15634700 14290380 1344320 1967420 1967420 4573109 4573109 0 0 178572091 177314593 1257498 0 8619280 8605582 13698 9871106 9796479 74627 50287530 49637556 649974 0 12549328 12140618 408710 6380636 5879503 501133 0 5659264 5049040 610224 24713 -692 25405 0 17258174 17070097 188077 6726204 6656841 69363 MEMBERSHIP & SPONSORSHIP 2135226 1952161 183065 GENERAL CONTRIBUTIONS 3479928 2883726 596202 BOOKS & PERIODICALS 1831835 1788955 42880 MISCELLANEOUS -195989 -258822 62833 534956329 517457323 17499006 0 3088958 1232240 324567662 332382459 0 0 47118056 49392994 0 0 0 0 8294710 3055997 0 0 13219275 11403334 101897303 76513003 30719734 25384300 15000 15000 207464718 203092575 0 0 5174430 3961052 10608967 16510719 650271510 646430670 146903310 148319317 0 0 6184827 5877081 0 0 324982703 317274989 0 0 0 0 0 0 61390884 68004690 539461724 539476077 X 110809786 106954593 0 0 0 0 110809786 106954593 650271510 646430670 X 1173776 2460678 -7489647 X false true X true false 841109 550000 550000 true DEMOCRATIC GOVERNORS ASSOCIATION 1401 K STREET NW STE 200 WASHINGTON DC 20005 521304889 250000 REPUBLICAN GOVERNORS ASSOCIATION 1747 PENNSYLVANIA AVE NW STE 250 WASHINGTON DC 20006 113655877 250000 DEMOCRATIC ATTORNEY GENERAL ASSOCIATION 1580 LINCOLN ST STE 1125 DENVER CO 80203 050532524 25000 REPUBLICAN ATTORNEY GENERAL ASSOCATION 1747 PENNSYLVANIA AVE NW WASHINGTON DC 20006 464501717 25000 false false false 87000000 12668137 0 12668137 12668137 SCHEDULE C, PART I-A, LINE 1 THE FILING ORGANIZATION MADE CONTRIBUTIONS FROM THE GENERAL TREASURY TO FOUR SECTION 527 POLITICAL ORGANIZATIONS AND SPONSORED A SEPARATE FUND DESIGNATED FOR EXEMPT PURPOSES. false true X 23928889 14147474 9781415 77968414 62365529 15602885 25384300 NON-PUBLIC MUTUAL FUNDS 94225100 C WELLS FARGO MUTUAL FUNDS 28571057 F EXCHANGE TRADED FUNDS 59738979 C 1 SHARE COMMON BSBSA SRVCS.INC 13262469 C INVEST. IN AFFILIATES >5% 7084970 C 206,839 COMMON, BCS INSR. CORP 210000 C 203092575 0 PENSION LIABILITES 39655768 LONG-TERM DEFERRED REVENUE 10134776 LEASE LIABILITY 5932019 OTHER BENEFITS 3510370 POST-RETIREMENT LIABILITY 7771757 LONG-TERM CONTRACT REVENUE 1000000 68004690 X FORM 990, SCHEDULE D, PART IV, LINE 2B ESCROW & CUSTODIAL ARRANGEMENTS THE ASSOCIATION HOLDS FUNDS AS AGENT FOR ITS MEMBER PLANS UNDER ARRANGEMENTS COVERING ITS BLUE CARD AND FEDERAL EMPLOYEE PROGRAM. FORM 990, SCHEDULE D, PART X, LINE 2 FIN 48 (ASC 740) FOOTNOTE THE ASSOCIATION FOLLOWS THE REQUIREMENT OF ASC 740-10-25 "ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES," WHICH CLARIFIES THE ACCOUNTING AND DISCLOSURES FOR UNCERTAINTY IN TAX POSITIONS, AS DEFINED. ASC 740-10-25 SEEKS TO REDUCE THE DIVERSITY IN PRACTICE ASSOCIATED WITH CERTAIN ASPECTS OF THE RECOGNITION AND MEASUREMENT RELATED TO ACCOUNTING FOR INCOME TAXES. UNDER ASC 740-10-25, AN ORGANIZATION MUST RECOGNIZE THE TAX BENEFIT ASSOCIATED WITH TAX POSITIONS TAKEN FOR TAX RETURN PURPOSES WHEN IT IS MORE-LIKELY-THAN-NOT THAT THE POSITION WILL BE SUSTAINED. THE ASSOCIATION DOES NOT BELIEVE THAT THERE ARE ANY UNCERTAIN TAX POSITIONS THAT SHOULD BE RECORDED. NO INTEREST OR PENALTIES WERE RECORDED OR INCLUDED IN THE CONSOLIDATED STATEMENT OF ACTIVITIES FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015. THE ASSOCIATION IS OPEN TO EXAMINATION BY TAXING AUTHORITIES FROM FISCAL YEAR 2013 FORWARD. X true true X X X X X X false true false false false false false true false Scott P Serota President, CEO & Board Member 1018697 0 3459880 0 556068 0 1469905 0 30687 0 6535237 0 1340303 0 William A Breskin Sr. VP, Government Programs 282031 0 160000 0 156070 0 321580 0 22934 0 942615 0 0 0 Bhaskar Bulusu VP, Enterprise Information 228085 0 80000 0 19057 0 12631 0 39954 0 379727 0 0 0 Maureen Cahill SVP & Chief Human Res. Officer 411479 0 190100 0 4571 0 18000 0 22326 0 646476 0 0 0 John Cerisano VP, Federal Relations 270071 0 92000 0 47284 0 157882 0 39236 0 606473 0 0 0 Teresa Clark VP, Office of Clinical Affairs 242052 0 100000 0 19500 0 13250 0 32306 0 407108 0 0 0 Terry Cooney VP Invest. & Nat Emp Ben Admin 233642 0 74700 0 70543 0 148924 0 24875 0 552684 0 0 0 Kathy Didawick VP Congressional Communication 268458 0 98000 0 65326 0 56310 0 20093 0 508187 0 0 0 John T Ericksen VP Fed. Relations(end. 1/6/16) 22230 0 85000 0 103652 0 845 0 2822 0 214549 0 0 0 Jena Estes VP Gov. Programs(end. 4/29/16) 480283 0 62100 0 129808 0 13579 0 8741 0 694511 0 0 0 Alissa T Fox SR VP, Policy & Representation 445643 0 290000 0 407885 0 98665 0 26182 0 1268375 0 0 0 Paul Gerrard VP, Strategic Communications 264133 0 91300 0 2110 0 15823 0 21587 0 394953 0 0 0 Kris O Haltmeyer VP, Health Policy & Analysis 260525 0 100000 0 52563 0 7719 0 23443 0 444250 0 0 0 Justine Handelman SVP, Policy & Representation 301399 0 110000 0 53139 0 38503 0 22674 0 525715 0 0 0 Trent T Haywood SR VP & Chief Medical Officer 384692 0 220000 0 19500 0 13250 0 22169 0 659611 0 0 0 Kari J Hedges SVP, National Programs 289037 0 147000 0 93628 0 7950 0 22408 0 560023 0 0 0 Mitchell J Helfand VP, Finance 253076 0 70500 0 120927 0 98442 0 18702 0 561647 0 0 0 Kim D Holland VP, State Affairs 220861 0 80000 0 19500 0 16952 0 18138 0 355451 0 0 0 Mike Joyce VP Chief Auditor & Compliance 226481 0 55000 0 25926 0 70450 0 21840 0 399697 0 0 0 Nasir Khan VP & Chief Technology Officer 272556 0 126000 0 58706 0 89630 0 27926 0 574818 0 0 0 Robert J Kolodgy Jr Executive VP & CFO 517778 0 310000 0 26541 0 18000 0 21520 0 893839 0 0 0 Shirley S Lady VP, Transformation Services 244342 0 88200 0 89638 0 82636 0 22401 0 527217 0 0 0 Petar Naumovski VP & Chief Info. Security Ofcr 366157 0 75500 0 21863 0 13250 0 35891 0 512661 0 0 0 William S Nehs SR VP, Gen Counsel & Secretary 380466 0 190000 0 20220 0 18000 0 19520 0 628206 0 0 0 William O'Loughlin VP & CIO Fed. Employee Program 334939 0 144000 0 111855 0 65564 0 31799 0 688157 0 0 0 Doug Porter SR VP, Operations & CIO 440144 0 280000 0 123162 0 76451 0 20358 0 940115 0 0 0 Cynthia Rolfe VP, Consumer Brand Strategy 260502 0 92700 0 20408 0 12660 0 5581 0 391851 0 0 0 Maureen E Sullivan Chief Strategy & Innov Officer 392162 0 210000 0 218081 0 28139 0 32566 0 880948 0 0 0 Mark Talluto VP, Strategy and Analytics 268585 0 91700 0 2630 0 14480 0 16295 0 393690 0 0 0 Jennifer Vachon Executive VP & Chief of Staff 358723 0 210000 0 126074 0 96108 0 22268 0 813173 0 0 0 Jody A Voss VP Develop., Innovation & GPO 266039 0 94800 0 111624 0 45093 0 20420 0 537976 0 0 0 Carole R Flamm Executive Medical Director 266859 0 88300 0 60030 0 71249 0 28132 0 514570 0 0 0 Winfred D Lawrence Jr ED Enterprise Program 217092 0 69000 0 35802 0 115629 0 11660 0 449183 0 0 0 Robert A Long ED Strategic Services 278912 0 50000 0 43233 0 30347 0 13996 0 416488 0 0 0 Steven D Putziger Exc Dir Brand Protect&Finance 233809 0 57700 0 79470 0 28210 0 17464 0 416653 0 0 0 David Yoder ED Integrated Care Mgmt 226964 0 89800 0 19590 0 18000 0 23807 0 378161 0 0 0 FORM 990, SCHEDULE J, PART I, LINE 1A As an organization serving a system of locally based independent Plans offering health insurance in all 50 States, DC and Puerto Rico, the Association's officers are expected to maintain an unusually demanding travel schedule. Accordingly, a committee of the Association's Board comprised of independent Plan executives has established CEO travel policies designed to assure the organization is able to meet his travel commitments, including travel to underserved regional destinations. These policies include the use of charter aircraft and first class travel on scheduled commercial flights under certain limited circumstances. FORM 990, SCHEDULE J, PART I, LINE 3 The compensation of the CEO and the continued retention of his services are approved each year by a committee of the Associations Board comprised of independent Plan executives. That committee acts after deliberations based upon advice from a qualified independent compensation consulting firm. The consultants advice and those deliberations include a review of the results of the independent consultants research regarding compensation paid by other organizations for officers serving in capacities comparable to that of the Associations CEO. Each year this committees decisions are reported to the full Board during a regularly scheduled meeting. The Board deliberates on both matters. Extension of the period of the CEOs service requires action by the full Board. The compensation determinations of the committee stand approved unless the Board exercises its inherent prerogative to modify the committees compensation decisions. The same committee of independent Plan executives annually receives the CEOs recommendations regarding the compensation to be paid to the officers. As with the CEOs compensation, the deliberations of this committee and its decisions to approve or modify the CEOs recommendation are based upon the results of an independent consultants market research regarding comparable officer pay and the independent consultants advice. FORM 990, SCHEDULE J, PART I, LINE 4 As required by the instructions to Form 990, Schedule J, Part II, a hypothetical SERP accrual was calculated for each reportable person who was eligible to participate in that program. The accrual amounts were determined using the Association's best estimate of the accrual using the methodology specified in the instructions to Schedule J. Because vested accruals under the SERP are currently taxed based on a different methodology and the instructions to Schedule J specify that amounts reported in columns B(i) through B(iii) should not be reported again in column C or D, the amount of imputed SERP income reported in column B(iii) was subtracted in each case and the balance of the hypothetical accrual was included in column C for the applicable reportable persons as follows: Scott P Serota - 13,750 William A Breskin - 178,480 John Cerisano - 60,932 Terry Cooney - 41,805 Mike Joyce - 8,101 Nasir Khan - 37,909 William OLoughlin - 1,055 Doug Porter - 14,704 Jennifer Vachon - 49,459 Carole R Flamm - 14,353 William D Lawrence Jr - 20,337. The combined total of imputed SERP included in column C: $437,885. FORM 990, SCHEDULE J, PART I, LINE 7 The Association maintains an Association wide annual performance bonus program that assures a portion of employees annual compensation is contingent upon the attainment of pre-approved organizational performance goals, as weighted by the performance measurement process that evaluates each individual employees efforts. Officers, like all employees, are eligible to participate in this program. The performance goals and the budget for this bonus program are approved each year by the Associations Board based upon recommendations from a Board committee consisting of independent Plan executives. Moreover, the performance assessment judgments and the approval of actual payouts require approval by that committee. The CEO also participates in a Long Term Incentive Bonus program. As with the regular performance bonus program, payouts under the Long Term Incentive Program reflect the extent to which pre-established performance goals are reached. However, unlike the annual performance bonus program, the Long Term Incentive program operates on a multi-year cycle to assure that the CEO has incentives that look beyond the immediate year. This program, the performance measurements and the assessment of the achievement of those goals and the resulting payout amounts are all approved by the same Board committee described above and reported to the full Board. The committees deliberations regarding the establishment of the program, the selection of the performance factors and assessment of performance all include consultation and recommendation from a qualified independent compensation consultant based upon a market study of comparable programs for comparable executives. N PARKER OFFICER'S FAMILY MEMBER 96455 EMPLOYEE SALARY false BCBS VENTURE PARTNERS LP OFFICER-CUSTOMER DIRECTOR 233934 RECEIPTS FOR SERVICES false BCS FINANCIAL OFFICER-VENDORS DIRECTOR 4085815 PAYMENTS FOR SERVICES false BCS FINANCIAL OFFICER-CUSTOMER DIRECTOR 202477 RECEIPTS FOR SERVICES false CONSORTIUM HEALTH PLANS INC OFFICER-VENDORS DIRECTOR 788277 PAYMENTS FOR SERVICES false HEALTH INTELLIGENCE COMPANY LLC OFFICER-CUSTOMER DIRECTOR 4329102 RECEIPTS FOR SERVICES false HEALTH INTELLIGENCE COMPANY LLC OFFICER-VENDORS DIRECTOR 22115470 PAYMENTS FOR SERVICES false HEALTH INTELLIGENCE COMPANY LLC OFFICER-VENDORS DIRECTOR 5931118 REVENUE SHARE PAYMENTS false BCBS VENTURE PARTNERS II LP OFFICER-CUSTOMER DIRECTOR 373377 RECEIPTS FOR SERVICES false BCBS VENTURE PARTNERS II LP OFFICER-VENDOR DIRECTOR 217134 CONTRIBUTED CAPITAL false NATIONAL ACCT SERVICE COMPANY LLC OFFICER-CUSTOMER DIRECTOR 3247149 RECEIPTS FOR SERVICES false BCBS VENTURE PARTNERS III LLC OFFICER-CUSTOMER DIRECTOR 762451 RECEIPTS FOR SERVICES false BCBS VENTURE PARTNERS III LLC OFFICER-VENDOR DIRECTOR 269609 CONTRIBUTED CAPITAL false HIGHWAY TO HEALTH INC OFFICER-CUSTOMER DIRECTOR 1700004 RECEIPT OF LICENSE FEE false FORM 990, PART I, LINE 1 THE ORGANIZATION'S TAX EXEMPT PURPOSE IS PROMOTING THROUGH INDEPENDENT BLUE CROSS AND BLUE SHIELD MEMBER PLANS, THE COMMON GOOD AND GENERAL WELFARE OF THE COMMUNITY BY FOSTERING BROAD-BASED HEALTH INSURANCE COVERAGE. FORM 990, PART III, LINE 1 THE ASSOCIATION SERVES ITS MEMBERSHIP CONSISTING OF INDEPENDENT BLUE CROSS AND BLUE SHIELD MEMBER PLANS WHICH OPERATES WITHIN SPECIFIC GEOGRAPHIC SERVICE AREAS. THE ASSOCATION PROVIDES A VARIETY OF SERVICES TO MEMBER PLANS AND COORDINATES GOVERNMENT SERVICES SUCH AS THE CONTRACT UNDER THE FEDERAL EMPLOYEE HEALTH BENEFIT PROGRAM (FEP), WHICH IS THE CORE OF THE ORGANIZATION'S EXEMPT PURPOSE OF PROMOTING THE COMMON GOOD AND GENERAL WELFARE OF THE COMMUNITY BY FOSTERING BROAD-BASED HEALTH INSURANCE COVERAGE. FORM 990, PART III, LINE 4A THE BLUE CROSS AND BLUE SHIELD ASSOCIATIONS FEDERAL EMPLOYEE PROGRAM (FEP) ADMINISTERS THE BLUE CROSS AND BLUE SHIELD SERVICE BENEFIT PLAN. APPROXIMATELY 64 PERCENT OF ALL FEDERAL EMPLOYEES AND RETIREES WHO RECEIVED THEIR HEALTH CARE BENEFITS THROUGH THE GOVERNMENTS FEDERAL EMPLOYEES HEALTH BENEFITS PROGRAM (FEHBP) ARE MEMBERS OF THE SERVICE BENEFIT PLAN RECEIVING HEALTH COVERAGE THROUGH MEMBER PLANS. SERVICE BENEFIT PLAN HAS BEEN PART OF THE FEHBP SINCE ITS INCEPTION IN 1960 AND IS THE LARGEST PLAN IN THE PROGRAM. ACCOMPLISHMENTS IN 2016 INCLUDED THE ADDITION OF A SELF PLUS ONE BENEFIT LEVEL, BEGINNING THE MODERNIZATION OF FEPS CENTRAL CLAIMS SYSTEM, FURTHER ENHANCEMENTS TO MEMBER HEALTH TOOLS AND MEMBERS DIGITAL EXPERIENCE AS WELL AS THE DEVELOPMENT OF INTEGRATED CARE MANAGEMENT PROGRAMS ACROSS THE ENTIRE SPECTRUM TO SERVE MEMBERS AND IMPROVE MEMBERS EXPERIENCE. RETENTION RATE WAS 98.9%. FORM 990, PART III, LINE 4B THE BLUECARD PROGRAM ENABLES BLUE PLAN MEMBERS TO RECEIVE THE BENEFITS OF THEIR INSURANCE CONTRACTS WHILE TRAVELING OR LIVING IN ANOTHER MEMBER PLANS GEOGRAPHIC SERVICE AREA. THROUGH BLUECARD, BLUE PLAN MEMBERS ARE GIVEN SEAMLESS NATIONAL ACCESS TO PHYSICIANS AND HOSPITALS THAT PARTICIPATE IN BLUE NETWORKS. ADDITIONALLY, THE PROGRAM LINKS PARTICIPATING HEALTHCARE PROVIDERS WITH THE INDEPENDENT BLUE CROSS AND BLUE SHIELD PLANS THROUGH A SINGLE ELECTRONIC NETWORK FOR CLAIMS PROCESSING AND REIMBURSEMENT. FORM 990, PART III, LINE 4C AS THE UMBRELLA ORGANIZATION FOR THE MEMBER PLANS, THE ASSOCIATION COORDINATES ADVERTISING AND COMMUNICATION PROGRAMS, PROVIDING POLICY AND REPRESENTATION OF MEMBER INTERESTS, MONITORS AND FOSTERS THE FINANCIAL STABILITY OF ALL THE PLANS AND SUPPORTS THE ABILITY OF THE PLANS TO OPERATE EFFICIENTLY BY PROVIDING CONFERENCES, CONSULTING AND MISCELLANEOUS SERVICES TO THE PLANS. FORM 990, PART III, LINE 4D OTHER PROGRAM SERVICE ACCOMPLISHMENTS THE ASSOCIATION DEVELOPS, ENHANCES AND PROTECTS THE VALUE OF THE BLUE CROSS AND BLUE SHIELD BRAND NAMES AND SYMBOLS AND SUPPORTS THE OVERSIGHT AND MANAGEMENT OF MEMBER PLAN LICENSE AGREEMENTS. EXPENSE: 43,042,869 GRANTS: NONE REVENUE: 36,467,482 THE ASSOCIATION PROVIDES OPTIONAL CONSULTING SERVICES AND OTHER MISCELLANEOUS PROJECTS. EXPENSE: 39,418,398 GRANTS: NONE REVENUE: 48,772,721 OPERATION OF THE NATIONAL EMPLOYEE BENEFITS ADMINISTRATION PROGRAM WHICH PROVIDES A COMPREHENSIVE GROUP PACKAGE OF EMPLOYEE BENEFITS PROGRAMS TO THE PLANS. EXPENSE: 17,895,445 GRANTS: NONE REVENUE: 17,669,340 NATIONAL DATA WAREHOUSE (NDW) IS A CENTRAL DATA WAREHOUSE COMPOSED OF AGGREGATE STANDARDIZED AND DE-IDENTIFIED DATA (SUCH AS MEDICAL AND DRUG CLAIMS, MEMBERSHIP AND OTHER PROVIDER INFORMATION) OBTAINED FROM PARTICIPATING MEMBER PLANS FOR USE IN COMPLEMENTING THE ANALYTICAL SYSTEM WITHIN EACH OF THE PLANS TO IMPROVE BUSINESS INTELLIGENCE AND FOR THE BENEFIT OF UNDERSTANDING AND MANAGING HEALTH CARE COSTS AND QUALITY VIA BENCHMARKING AND TREND ANALYSIS. EXPENSE: 16,406,087 GRANTS: NONE REVENUE: 4,153,566 OPERATION OF THE TELECOMMUNICATION NETWORK WHICH FACILITATES INTER-PLAN COMMUNICATION. EXPENSE: 12,550,033 GRANTS: NONE REVENUE: 18,770,893 FORM 990, PART VI, SECTION A, LINE 2 VARIOUS ASSOCIATION BOARD MEMBERS (DIRECTORS) ALSO SIT ON THE BOARD OF BLUE CROSS BLUE SHIELD ASSOCIATION AFFILIATES. FORM 990, PART VI, SECTION A, LINE 6 BCBSA HAS THIRTY-SIX (36) INDEPENDENT HEALTH CARE PLAN LICENSEES OPERATING IN SPECIFIED DOMESTIC SERVICE AREAS. ALL HEATH CARE PLAN LICENSEES ARE ASSOCIATION MEMBERS. FORM 990, PART VI, SECTION A, LINE 7A EACH PRIMARY LICENSEE MEMBER PLAN, BY THE AUTHORITY OF THEIR INDIVIDUAL GOVERNING DOCUMENTS, SELECT THE CEO OF THEIR RESPECTIVE COMPANIES TO SERVE AS A MEMBER OF THE ASSOCIATION'S BOARD. FORM 990, PART VI, SECTION A, LINE 7B CERTAIN GOVERNING DECISIONS, SUCH AS BY-LAW AMENDMENTS, REQUIRE ACTION BY BOTH THE ASSOCIATION'S BOARD AND ITS MEMBER PLANS. FORM 990, PART VI, SECTION B, LINE 11B IN GENERAL, FORM 990 CONTENT AND SOURCES OF INFORMATION ARE REVIEWED BY SUBJECT MATTER EXPERTS INCLUDING, BUT NOT LIMITED TO, INTERNAL AND EXTERNAL TAX (PWC) AND ACCOUNTING PROFESSIONALS AND INTERNAL LEGAL PERSONNEL. FINALIZING THE RETURN DRAFT CONSISTS OF DISCUSSIONS BETWEEN FINANCE OFFICERS AND FINANCE MANAGERS REGARDING THE NUMERIC RESULTS AND WRITTEN RESPONSES TO SELECT RETURN QUESTIONS. UPON INTERNAL AGREEMENT AS TO THE FORM AND CONTENT, AN ELECTRONIC DRAFT 990 IS SENT TO THE ASSOCIATIONS BOARD PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C BCBSA MAINTAINS A COMPREHENSIVE CODE OF CONDUCT AND COMPLIANCE PROGRAM APPLICABLE TO ALL EMPLOYEES AND OFFICERS. IN ADDITION, ALL EMPLOYEES, OFFICERS, AND BOARD MEMBERS ARE REQUIRED TO COMPLETE AN ANNUAL CONFLICT OF INTEREST FORM. THE BCBSA CHIEF AUDITOR AND COMPLIANCE OFFICER IS CHARGED WITH INVESTIGATING ANY ALLEGATIONS OF NON-COMPLIANCE WITH THE CODE OF CONDUCT, INCLUDING ANY COMPLAINTS REPORTED THROUGH THE ANONYMOUS HOTLINE MAINTAINED THROUGH AN INDEPENDENT ORGANIZATION. THE RESULTS OF THE COMPLIANCE PROGRAMS EFFECTIVENESS ARE REPORTED TO THE FINANCIAL AND AUDIT COMMITTEE OF THE BOARD OF DIRECTORS ON AN ANNUAL BASIS. FAILURE TO ADHERE TO THE CODE OF CONDUCT MAY RESULT IN DISCIPLINARY ACTION, UP TO AND INCLUDING TERMINATION OF EMPLOYMENT. FORM 990, PART VI, SECTION B, LINES 15A & 15B THE COMPENSATION OF THE CEO AND THE CONTINUED RETENTION OF HIS SERVICES ARE APPROVED EACH YEAR BY A COMMITTEE OF THE ASSOCIATIONS BOARD COMPRISED OF INDEPENDENT PLAN EXECUTIVES. THAT COMMITTEE ACTS AFTER DELIBERATIONS BASED UPON ADVICE FROM A QUALIFIED INDEPENDENT COMPENSATION CONSULTING FIRM. THE CONSULTANT'S ADVICE AND THOSE DELIBERATIONS INCLUDE A REVIEW OF THE RESULTS OF THE INDEPENDENT CONSULTANT'S RESEARCH REGARDING COMPENSATION PAID BY OTHER ORGANIZATIONS FOR OFFICERS SERVING IN CAPACITIES COMPARABLE TO THAT OF THE ASSOCIATION'S CEO. EACH YEAR THIS COMMITTEES DECISIONS ARE REPORTED TO THE FULL BOARD DURING A REGULARLY SCHEDULED MEETING. THE BOARD DELIBERATES ON BOTH MATTERS. EXTENSION OF THE PERIOD OF THE CEOS SERVICE REQUIRES ACTION BY THE FULL BOARD. THE COMPENSATION DETERMINATIONS OF THE COMMITTEE STAND APPROVED UNLESS THE BOARD EXERCISES ITS INHERENT PREROGATIVE TO MODIFY THE COMMITTEES COMPENSATION DECISIONS. THE SAME COMMITTEE OF INDEPENDENT PLAN EXECUTIVES ANNUALLY RECEIVES THE CEOS RECOMMENDATIONS REGARDING THE COMPENSATION TO BE PAID TO THE OFFICERS. AS WITH THE CEOS COMPENSATION, THE DELIBERATIONS OF THIS COMMITTEE AND ITS DECISIONS TO APPROVE OR MODIFY THE CEOS RECOMMENDATION ARE BASED UPON THE RESULTS OF AN INDEPENDENT CONSULTANTS MARKET RESEARCH REGARDING COMPARABLE OFFICER PAY AND THE INDEPENDENT CONSULTANTS ADVICE. FORM 990, PART VI, SECTION C, LINE 19 THE ASSOCIATION COMPLIES WITH ALL APPLICABLE PUBLIC DISCLOSURE REQUIREMENTS. THUS, FOR EXAMPLE, MEMBERS OF THE PUBLIC MAY REQUEST AN OPPORTUNITY TO REVIEW THE ASSOCIATIONS FORM 990 OR TO MAKE A COPY BY SENDING A WRITTEN REQUEST OR APPEARING IN PERSON AT ITS PRINCIPAL OFFICE OR ANY OF ITS OTHER LOCATIONS. THE ASSOCIATIONS FAVORABLE DETERMINATION LETTER REGARDING ITS TAX EXEMPT STATUS AND MATERIALS COMPRISING ITS EXEMPTION APPLICATION ARE ALSO AVAILABLE IN THIS MANNER. IF THE ASSOCIATIONS GOVERNING DOCUMENTS (ARTICLES OF INCORPORATION AND BYLAWS) AND CONFLICT OF INTEREST POLICY ARE SUBJECT TO APPLICABLE FEDERAL OR STATE PUBLIC DISCLOSURE REQUIREMENTS, THOSE DOCUMENTS WILL BE MADE PUBLICLY AVAILABLE AS APPLICABLE LAW MAY REQUIRE. FOR EXAMPLE, FORM 990 FILINGS MAY INCLUDE BYLAW AMENDMENTS AND THOSE AMENDMENTS WILL BE MADE AVAILABLE AS NOTED ABOVE. OTHERWISE, THE GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY WILL BE PROVIDED TO THE PUBLIC AT THE DISCRETION OF THE ASSOCIATIONS MANAGEMENT. FORM 990, PART XI, LINE 9 OTHER CHANGES IN NET ASSETS: OTHER COMPREHENSIVE INCOME-ASC 715 $ (4,191,325) INTERCOMPANY REVENUE (341) SUBSIDIARY INCOME TAX 7,969 K-1 Revenue (3,305,950) --------------- TOTAL $ (7,489,647) FORM 990 PART IX LINE 11G DESCRIPTION:VAR CONSULT FEES INCL (BUT NOT TOTAL FEES:XXX-XX-XXXX FORM 990 PART IX LINE 11G DESCRIPTION:TEMPORARY HELP TOTAL FEES:41540774 FORM 990 PART IX LINE 11G DESCRIPTION:PRINTING & GRAPHICS TOTAL FEES:2458558 FORM 990 PART IX LINE 11G DESCRIPTION:RECRUITING TOTAL FEES:701103 HEALTH SERVICES FOUNDATION 225 NORTH MICHIGAN AVENUE CHICAGO IL 60601 237011867 EDUC., RSRCH. IL 501(C)(3) 10 NA false BC AND BS FOUNDATION ON HEALTH CARE 225 NORTH MICHIGAN AVENUE CHICAGO IL 60601 237164980 EDUC., RSRCH. IL 501(C)(3) 10 NA false BLUE CROSS BLUE SHIELD INSTITUTE INC 225 NORTH MICHIGAN AVENUE CHICAGO IL 60601 364176277 COMMUNITY HEALTH IL NA C CORP -7969 109097 1.00000 true false false false false false false false false false false false false false false false false true false false BLUE CROSS BLUE SHIELD INSTITUTE INC Q 17390 ACTUAL COST