2011-11-08T06:48:58-06:00 2010-12-31 DELOITTE TAX LLP 600 RENAISSANCE CENTER SUITE 900 DETROIT MI 482431895 990 2010-01-01 161080163 INDEPENDENT HEALTH ASSOCIATION INC INDE 7166313001 511 FARBER LAKES DRIVE BUFFALO NY 14221 LORI BOYCE 7166313001 2011-11-07 1 LORI BOYCE 3133963000 2010 2016-02-24 21:20:13Z MICHAEL CROPP MD 511 FARBER LAKES DRIVE BUFFALO NY 14221 1247759396 0 X WWW.INDEPENDENTHEALTH.COM X 1980 NY WE PROVIDE INSURANCE PRODUCTS AND SERVICES THAT OFFER AFFORDABLE ACCESS TO QUALITY HEALTH CARE. 20 15 1126 149 52708183 1638975 0 0 1061671907 1082999986 15288434 14075545 43106009 52711470 1120066350 1149787001 0 529860 925736769 921283054 80577580 89077982 0 0 0 80862817 73180592 1087177166 1084071488 32889184 65715513 560559310 639408380 103910357 111382202 456648953 528026178 TO IMPROVE HEALTH IN THE COMMUNITY THROUGH LEADERSHIP IN MANAGING AND DEVELOPING INNOVATIVE QUALITY HEALTH CARE SYSTEMS AND PROVIDING INSURANCE PRODUCTS AND SERVICES THAT OFFER AFFORDABLE ACCESS TO QUALITY HEALTH CARE. 0 0 948972789 529860 1082999986 SEE SCHEDULE O, PAGE 41 948972789 0 0 0 0 0 0 0 1 0 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 1 1 1 0 0 0 0 0 1 1 1 0 1 145 0 1 1126 1 1 1 1 BD 0 0 0 0 0 0 0 0 X 20 15 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 1 0 NY X MICHAEL J FASO 7166313001 511 FARBER LAKES DRIVE WILLIAMSVILLE NY 14221 X WINNICK BARRY N 1.00 X 56300 2649 4852 WINGATE R MARSHALL 1.00 X 29820 0 5250 WALSH III JOHN N 1.00 X 38000 0 0 MCDUFFIE BRENDA W 1.00 X 31040 0 0 ANGERT STUART H 1.00 X 33160 0 2004 ANTKOWIAK JOHN 1.00 X 30600 0 0 COLANTUONO FRANK J 1.00 X 35200 0 5481 COPPOLA JAMES R 1.00 X 29000 0 5481 COTTON SHAWN 1.00 X 27400 0 5481 CULKIN JOHN J 1.00 X 31400 0 5481 HEIMERL MICHAEL 1.00 X 34150 0 0 KELSCH DONNA M 1.00 X 39840 0 5250 ROBINSON DONALD 1.00 X 25650 0 5250 STEHLIK EDWARD 1.00 X 38500 0 5481 SUDIT MOISES 1.00 X 33280 0 0 SULLIVAN NORA B 1.00 X 30120 0 5481 SUNDELL DUANE J 1.00 X 32000 0 0 TILLOTSON JR RICHARD T 1.00 X 31600 0 5481 WEISS SYDNEY N 1.00 X 36400 0 5481 CROPP MICHAEL W 47.00 X X 1345241 0 427397 PAULY MD MARK V 1.00 X 0 0 0 JOHNSON MARK 46.00 X 845928 0 273559 DIGIULIO LAWRENCE C 50.00 X 230485 0 35474 TULYK-ROSSI LAURA 36.00 X 81313 0 16553 FOELS THOMAS J 46.00 X 466753 0 205229 CASSELL CAROL M 5.00 X 1285991 0 34356 RODGERS JOHN R 47.00 X 641816 0 183682 PENTKOWSKI ANN M 44.00 X 564447 0 116516 SYRACUSE JILL 43.00 X 503380 0 125187 DISERAFINO LOUIS 46.00 X 309646 0 47720 FASO MICHAEL J 41.00 X 304551 0 46711 FELDMAN JUDITH ANN 46.00 X 328472 0 100168 CUMMING GORDON B 42.00 X 288266 0 102043 REHRAUER LINDA R 41.00 X 239089 0 48308 WALLESHAUSER JAMES B 21.00 X 212991 0 25734 DONOVAN DAVID W 47.00 X 330489 0 12969 NAIDOO ALLEN 50.00 X 287387 0 3790 BUTLER THEODORE J 39.00 X 245536 0 44510 MYLOTTE KATHLEEN MARIE 35.00 X 243344 0 56622 ARGENTIERI RICHARD M 40.00 X 250181 0 29866 GILLESPIE JOHN A 0.00 X 366985 0 3654 10015751 2649 2006502 20 1 1 0 INDIVIDUAL PRACTICE ASSOCIATION OF WNY 511 FARBER LAKES DR WILLIAMSVILLE NY 14221 MEDICAL & PHARMACY BENEFIT SERVICES 811949832 COGNISIGHT LLC 333 W COMMERCIAL ST SUITE 3500 EAST ROCHESTER NY 14445 HCC MEDICARE PREMIUM RECOVERY SERVICES 6457825 SIRIUS COMPUTER SOLUTIONS 4810 KIRKWOOD ROAD COHOCTON NY 14826 SALE AND MAINTENANCE OF SERVERS 4710433 EYEMED VISION CARE 15274 COLLECTIONS CENTER DRIVE CHICAGO IL 60693 VISION BENEFITS COMPANY 4497950 APPLIED BUSINESS SYSTEMS 26 HARVESTER AVE PO BOX 438 BATAVIA NY 14021 MAILINGS AND PAPER SUPPLY 4462271 86 PREMIUMS, COB & REINS 524114 1082999986 1082999986 1082999986 11819447 11819447 3900 613 3287 3287 3287 100227880 97818041 153741 2409839 -153741 2256098 2256098 CONSULTING INCOME 541610 52708183 52708183 52708183 1149787001 1082999986 52708183 14078832 524860 524860 5000 5000 921283054 921283054 10146921 10146921 59002159 7779171 51222988 4561194 281067 4280127 10573845 1594143 8979702 4793863 651116 4142747 152400 152400 198855 198855 95326 95326 653367 653367 10153994 319062 9834932 2840403 62115 2778288 8425855 155015 8270840 11467661 737136 10730525 4827321 4827321 303215 36327 266888 830371 16587 813784 8106914 8106914 1776114 1009829 766285 SURCHARGES 12972018 12972018 0 0 MISCELLANEOUS 3561547 1546289 2015258 0 FAMILY CHOICE 3532157 0 3532157 0 NYS ASSESSMENT 2201729 0 2201729 0 UBI TAXES -348352 0 -348352 0 1429697 1429697 1084071488 948972789 135098699 0 38405039 95747074 54116622 57043241 10893311 11768232 93733111 70558118 24572223 23174993 270460995 289610016 162111120 162064824 560559310 639408380 56405239 49727956 100389 6524 8080049 7891976 1681104 1256920 37643576 52498826 103910357 111382202 X 367676437 425714394 88972516 102311784 456648953 528026178 560559310 639408380 X 65715513 5661712 X 0 1 1 X 0 0 1 542713 542713 12436551 4599385 7837166 3600773 2097669 1503104 20232912 16316527 3916385 56920162 47544537 9375625 23174993 INVESTMENTS RESTRICTED AS TO USE 51904192 INVESTMENTS IN AFFILIATES 110160632 162064824 BENEFITS PAYABLE 10284797 CAPTITATION PAYABLE 24318876 INTERCOMPANY PAYABLE 17895153 52498826 1149787001 1084071488 65715513 5721202 -59490 5661712 71377225 1151576485 5721202 -1273150 4448052 1147128433 2658568 2658568 1149787001 1080199258 -2658568 -2658568 1082857826 1213662 1213662 1084071488 PART IV, LINE 2B: LONG TERM INCENTIVE PLAN IS OFFERED TO KEY EXECUTIVES. FUTURE PAYMENT IS BASED ON ORGANIZATIONAL PERFORMANCE TO THE BALANCE SCORECARD AND HISTORICAL COMPENSATION. ASSETS ARE UNDER THE CUSTODIAL ARRANGEMENT WITH M&T BANK. PART XII, LINE 2D - OTHER ADJUSTMENTS: IMPAIRMENT LOSS ON INVESTMENTS $-59,488 BANK CHARGES NETTED AGAINST OTHER INCOME $-1,210,186 P4P GRANT EXPENSE NETTED AGAINST OTHER INCOME $-3,476 PART XII, LINE 4B - OTHER ADJUSTMENT: COB REVENUE $492,114 RENTAL EXPENSE INCLUDED ON PART VII, LINE 6B $-613 NYS REINSURANCE $1,048,699 REINSURANCE ADJUSTMENT $1,095,114 RX REBATE $23,254 PART XI, LINE 8 - OTHER ADJUSTMENT: IMPAIRMENT LOSS ON INVESTMENT $-59,488 PART XIII, LINE 2D - OTHER ADJUSTMENT: COB REVENUE $-492,114 RENTAL EXPENSE INCLUDED ON PART VIII, LINE 6B $613 NYS INSURANCE $-1,048,699 REINSURANCE ADJUSTMENT $-1,095,114 RX REBATE $-23,254 PART XIII, LINE 4B - OTHER ADJUSTMENT: BANK CHARGES $1,210,186 P4P GRANT EXPENSE $3,476 PART X, LINE 2 : INDEPENDENT HEALTH ASSOCIATION & AFFILIATES (THE ASSOCIATION) ADOPTED THE PROVISIONS OF ASC 740 RELATED TO ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES EFFECTIVE JANUARY 1, 2009. THE ASSOCIATION RECOGNIZED NO MATERIAL ADJUSTMENT IN THE LIABILITY FOR UNRECOGNIZED INCOME TAX BENEFITS. THE ASSOCIATION DID NOT RECORD INTEREST AND PENALTIES RELATED TO UNRECOGNIZED TAX BENEFITS IN 2010. 1 UPSTATE NEW YORK TRANSPLANT SERVICES 110 BROADWAY BUFFALO NY 14203 161172453 501 ( C) (3) 25000 TO ASSIST WITH HEALTHY LIVING OF THE DONATE LIFE PROGRAM THEATRE OF YOUTH 203 ALLEN STREET BUFFALO NY 14201 237286004 501 ( C) (3) 90000 TO IMPACT THE HEALTH OF YOUTH THROUGH LIVE THEATRE. CORPORATE SPONSORSHIP WNED HORIZONS PLAZA PO BOX 1263 BUFFALO NY 14240 161613963 501 ( C) (3) 75000 LIVE WELL ANTI-OBESITY INITIATIVE JEWISH COMMUNITY CENTER 2640 N FOREST RD GETZVILLE NY 14068 160760887 501 ( C) (3) 75000 SUPPORT FOR THE WELLNESS, HEALTH ENGAGEMENT, AND PREVENTION PROGRAMS SENECA DIABETES FOUNDATION PO BOX 309 IRVING NY 140810309 203214056 501 ( C) (3) 55000 SUPPORT THE MISSION TO PROVIDE EDUCATION OUTREACH, PREVENTION AWARENES, AND FUND RESEARCH TO IMPROVE THE LIVES OF THOSE AFFECTED WITH DIABETES SHEA'S 646 MAIN STREET BUFFALO NY 142021978 161158412 501 ( C) (3) 34750 CORPORATE SPONSORSHIP TO SUPPORT THE ARTS AND IMPROVE INDIVIDUALS' WELL-BRING AND QUALITY OF LIFE P2 COLLABORATIVE 6225 SHERIDAN DR SUITE 206 WILLIAMSVILLE NY 14221 421604185 501 ( C) (3) 30000 SUPPORT THE ORGANIZATION'S COMMITMENT TO COLLABORATION AND IMPROVING THE HEALTH OF ALL INDIVIDUALS IN WNY BUFFALO NIAGRA PARTNERSHIP PO BOX 53 BUFFALO NY 14205 160365700 501 ( C) (3) 30000 REGIONAL STEWARDSHIP CHAUTAUQUA CHILDREN'S SAFETY EDUCATION VILLAGE 2695 ROUTE 394 ASHVILLE NY 14710 161566945 501 ( C) (3) 19610 CORPORATE SPONSORSHIP TO SUPPORT THE ARTS AND IMPROVE INDIVIDUALS' WELL-BRING AND QUALITY OF LIFE BUFFALO URBAN LEAGUE 15 E GENESEE ST BUFFALO NY 14203 160743940 501 ( C) (3) 15000 SUPPORT TO EMPOWER MINORITIES AND DISADVANTAGED INDIVIDUALS, SPECIFICALLY IN THE AREAS OF HEALTH AND QUALITY OF LIFE LEADERSHIP BUFFALO 237 MAIN STREET-STE 1500 BUFFALO NY 142032720 161363536 501 ( C) (3) 15000 SPONSORSHIP BUFFALO PHILHARMONIC ORCHESTRA 499 FRANKLIN ST BUFFALO NY 14202 160755739 501 ( C) (3) 5000 CORPORATE SPONSORSHIP TO SUPPORT THE ARTS AND IMPROVE INDIVIDUALS' WELL-BRING AND QUALITY OF LIFE HEALTH SCIENCES CHARTER SCHOOL 169 SHERIDAN PARKSIDE DR TONAWANDA NY 14150 501 ( C) (3) 10000 SUPPORT ACADEMIC EXCELLENCE AND SUSTAINABLE, QUALITY CAREERS IN HEALTH SCIENCES GREEN OPTIONS BUFFALO 640 ELLICOTT STREET BUFFALO NY 14202 501 ( C) (3) 8000 SUPPORT FOR COLLABORATION, PROMOTES HEALTHY LIFESTYLES, AND WORKS TO IMPROVE INFRASTRUCTURE TO SUPPORT SUCH LIFESTYLES POLICE ATHLETIC LEAGUE 65 NIAGARA SQUARE 21ST FL BUFFALO NY 14202 161468698 501 ( C) (3) 7500 TO SUPPORT THE IMPROVEMENT OF THE IMMEDIATE AND FUTURE QUALITY OF LIFE FOR THE YOUTH IN THE COMMUNITY THROUGH EDUCATIONAL, RECREATIONAL, CULTURAL, ENVIRONMENTAL, AND PREVENTION PROGRAMMING AMERICAN HEART ASSOCIATION 7272 GREENVILLE AVE DALLS TX 75231 135613797 501 ( C) (3) 5000 SUPPORT THE ENCOURAGEMENT OF HEALTHY LIFESTYLES TO PREVENT CARDIOVASCULAR DISEASES AND STROKES AMHERST YOUTH FOUNDATION 4255 HARLEM RD AMHERST NY 14226 161206430 501 ( C) (3) 5000 SUPPORT PROGRAMS TO IMPROVE THE LIVES OF THE YOUTH IN THE AMHERST AREA 17 0 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: INDEPENDENT HEALTH ASSOCIATION SUPPORTS NON-PROFIT ORGANIZATIONS THAT ARE ALIGNED WITH OUR MISSION TO PROVIDE ACCESS TO AFFORDABLE, QUALITY HEALTH CARE, AND/OR WOULD BENEFIT FROM INDEPENDENT HEALTH'S COMMUNITY LEADERSHIP AND GOODWILL. AMOUNTS ARE RECORDED IN COMMUNITY RELATIONS AND HARD COPIES OF ALL PAYMENTS ARE KEPT ON FILE (BOTH PAPER AND ELECTRONICALLY). X X 1 1 X X X X X X 1 1 0 0 0 0 0 0 0 CROPP MICHAEL W 766538 0 543188 0 35515 0 379954 0 47443 0 1772638 0 0 0 JOHNSON MARK 508587 0 311845 0 25496 0 229235 0 44324 0 1119487 0 0 0 DIGIULIO LAWRENCE C 167634 0 46380 0 16471 0 20462 0 15012 0 265959 0 0 0 FOELS THOMAS J 313616 0 129329 0 23808 0 135153 0 70076 0 671982 0 0 0 CASSELL CAROL M 105439 0 876532 0 304020 0 12401 0 21955 0 1320347 0 733516 0 RODGERS JOHN R 258288 0 373985 0 9543 0 130111 0 53571 0 825498 0 103750 0 PENTKOWSKI ANN M 253150 0 289880 0 21417 0 93052 0 23464 0 680963 0 130628 0 SYRACUSE JILL 222788 0 279083 0 1509 0 102265 0 22922 0 628567 0 121958 0 DISERAFINO LOUIS 219112 0 67555 0 22979 0 30259 0 17461 0 357366 0 0 0 FASO MICHAEL J 214803 0 68938 0 20810 0 30995 0 15716 0 351262 0 0 0 FELDMAN JUDITH ANN 222288 0 93272 0 12912 0 83537 0 16631 0 428640 0 0 0 CUMMING GORDON B 212172 0 64484 0 11610 0 84923 0 17120 0 390309 0 0 0 REHRAUER LINDA R 128473 0 110216 0 400 0 33381 0 14927 0 287397 0 0 0 WALLESHAUSER JAMES B 164126 0 42836 0 6029 0 9515 0 16219 0 238725 0 0 0 DONOVAN DAVID W 208943 0 119728 0 1818 0 12395 0 574 0 343458 0 0 0 NAIDOO ALLEN 222800 0 20000 0 44587 0 0 0 3790 0 291177 0 0 0 BUTLER THEODORE J 111563 0 133642 0 331 0 29195 0 15315 0 290046 0 0 0 MYLOTTE KATHLEEN MARIE 232394 0 8563 0 2387 0 46734 0 9888 0 299966 0 0 0 ARGENTIERI RICHARD M 149889 0 100087 0 205 0 16942 0 12924 0 280047 0 0 0 GILLESPIE JOHN A -3654 0 0 0 370639 0 0 0 3654 0 370639 0 0 0 PART I, LINE 1A DISCRETIONARY SPENDING ACCOUNT: AT THE DISCRETION OF THE CEO, KEY EXECUTIVES (OFFICERS AND KEY EMPLOYEES) ARE ELIGIBLE TO 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. $313,585 WAS RECEIVED IN 2010 AND $208,008 WAS REPORTED AS TAXABLE COMPENSATION. HOUSING ALLOWANCE OR RESIDENCE FOR PERSONAL USE: KEY EXECUTIVES OF THE ORGANIZATION MAY BE ELIGIBLE TO RECEIVE A HOUSING ALLOWANCE (INCLUDING UTILITIES) IN CONJUNCTION WITH THE ORGANIZATION'S RELOCATION POLICY. IN NO CIRCUMSTANCES CAN THE HOUSING ALLOWANCE EXCEED A PERIOD OF ONE YEAR FROM THE DATE OF HIRE WITHOUT THE APPROVAL FROM THE CEO. ANY REIMBURSEMENT THAT IS NOT DEDUCTIBLE UNDER THE IRS REGULATIONS FOR MOVING EXPENSES ARE TREATED AS INCOME AND ADDED TO THE EXECUTIVE'S W-2. PART I, LINES 4A-B THE FOLLOWING LISTED PERSONS FROM PART VII, SECTION A RECEIVED SEVERANCE PAYMENTS AS PART OF A SEPARATION AGREEMENT WITH INDEPENDENT HEALTH. 2010 AMOUNTS RECEIVED AND ACCRUED INCLUDED: SALARY AND HEALTH BENEFIT COMPONENTS. 1) CAROL CASSEL - RECEIVED $293,250 DURING 2010 WITH AN END DATE OF 02/11 AND $86,718 ACCRUED AT 12/31/10 2) JOHN GILLESPIE - RECEIVED $368,401 DURING 2010 WITH AN END DATE OF DECEMBER 31, 2013 AND $41,931 ACCRUED AT 12/31/10 3) FRED COHEN-RECEIVED $74,038 WITH AN END DATE OF DECEMBER 31, 2010. SUPPLEMENTAL INFORMATION PART III PART I, LINE 4B: THE FOLLOWING LISTED PERSONS FROM PART VII, SECTION A PARTICIPATED IN A SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN (457(F)) WITH INDEPENDENT HEALTH. MICHAEL CROPP, M.D.: AMOUNT RECEIVED: $0; VALUE INCREASE INCLUDED IN PART VIII, SECTION A, COLUMN F: $332,398. CAROL CASSELL: AMOUNT RECEIVED $733,516; VALUE INCREASE INCLUDED IN PART VII, SECTION A, COLUMN F: $0. MARK JOHNSON: AMOUNT RECEIVED: $0; VALUE INCREASE INCLUDED IN PART VII, SECTION A, COLUMN F: $167,433. JOHN RODGERS: AMOUNT RECEIVED: $193,556; VALUE INCREASE INCLUDED IN PART VII, SECTION A, COLUMN F: $89,806. ANN PENTKOWSKI: AMOUNT RECEIVED $202,930; VALUE INCREASE INCLUDED IN PART VII, SECTION A, COLUMN F: $72,302. JILL SYRACUSE: AMOUNT RECEIVED $185,811; VALUE INCREASE INCLUDED IN PART VII, SECTION A, COLUMN F: $63,853. THOMAS J. FOELS: AMOUNT RECEIVED $0; VALUE INCREASE INCLUDED IN PART VII, SECTION A, COLUMN F: $92,565. JUDITH FELDMAN: AMOUNT RECEIVED $0; VALUE INCREAE INCLUDED IN PART VII, SECTION A, COLUMN F: $66,072. GORDON CUMMING: AMOUNT RECEIVED $0; VALUE INCREASE INLCUDED IN PART VII, SECTION A, COLUMN F: $58,145 NORTHTOWNS MEDICAL GROUP PARTNERSHIP MORE THAN 5% OWNED BY EDWARD STEHLIK, CURRENT BOARD MEMBER 305523 INDEPENDENT CONTRACTOR ARRANGEMENT, DELIVERY OF HEALTH CARE. 0 TONAWANDA PEDIATRICS PARTNERSHIP MORE THAN 5% OWNED BY MICHAEL HEIMERL, CURRENT BOARD MEMBER 1912740 INDEPENDENT CONTRACTOR ARRANGEMENT, DELIVERY OF HEALTH CARE 0 EAST AURORA FAMILY PRACTICE PARTNERSHIP MORE THAN 5% OWNED BY SHAWN COTTON, CURRENT BOARD MEMBER 559060 INDEPENDENT CONTRACTOR ARRANGEMENT, DELIVERY OF HEALTH CARE 0 ROSWELL PARK CANCER INSTITUTE SHARED BOARD MEMBER, NORA SULLIVAN 86546115 INDEPENDENT CONTRACTOR ARRANGEMENT, DELIVERY OF HEALTH CARE 0 WALSH DUFFIELD COMPANIES ENTITY INDIRECTLY OWNED BY MORE THAN 35% BY JOHN WALSH,CURRENT BOARD MEMBER 599223 BROKER OF IHA PRODUCTS 0 ALLIANCE OF COMMUNITY HEALTH PLANS SHARED BOARD MEMBER, DR. MICHAEL CROPP 154561 SERVICE PROVIDER (MEMBERSHIP DUES, LOBBYING ACTIVITIES) 0 AMERICA'S HEALTH INSURANCE PLANS SHARED BOARD MEMBER, DR. MICHAEL CROPP 174710 SERVICE PROVIDER (MEMBERSHIP DUES, LOBBYING ACTIVITIES) 0 DONALD W ROBINSON MD 100% OWNERSHIP IN MEDICAL PRACTICE BY DR. DONALD ROBINSON 370012 INDEPENDENT CONTRACTOR ARRANGEMENT, DELIVERY OF HEALTH CARE 0 WESTERN NEW YORK CLINICAL INFORMATION EXCHANGE SHARED BOARD MEMBER, DR. MICHAEL CROPP 120000 FUNDING OF OPERATIONS 0 WESTERN NEW YORK HEALTHENET SHARED BOARD MEMBER, JUDITH FELDMAN 120000 FUNDING OF OPERATIONS 0 FORM 990, PART VI, SECTION A, LINE 2 DONALD ROBINSON AND KATHLEEN MARIE MYLOTTE HAVE A BUSINESS RELATIONSHIP (BOARD MEMBERS OF AN AFFILIATED ENTITY). MICHAEL CROPP, MARK JOHNSON, JILL SYRACUSE, JOHN RODGERS, THOMAS FOELS, LAWRENCE DIGIULIO, AND MICHAEL FASO HAVE A BUSINESS RELATIONSHIP (BOARD MEMBERS OF AFFILIATED ENTITIES). BARRY WINNICK, R. MARSHAL WINGATE, STUART ANGERT, JAMES COPPOLA, MICHAEL CROPP, MOISES SUDIT, NORA SULLIVAN, JOHN ANTKOWIAK, LAWRENCE DIGIULIO, JOHN RODGERS, MARK JOHNSON, AND JAMES WALLESHAUSER HAVE A BUSINESS RELATIONSHIP (BOARD MEMBERS OF AN AFFILIATED ENTITY). FRANK COLANTUONO, JAMES COPPOLA, AND THOMAS FOELS HAVE A BUSINESS RELATIONSHIP (BOARD MEMBERS OF AN AFFILIATED ENTITY). MARSHALL WINGATE, FRANK COLANTUONO, MARK JOHNSON, AND ANN PENTKOWSKI HAVE A BUSINESS RELATIONSHIP (PRIVATE ENTERPRISE). MICHAEL CROPP, GORDON CUMMING, BARRY WINNICK, JOHN WALSH, BRENDA MCDUFFIE, STUART ANGERT & JOHN ANTKOWIAK HAVE A BUSINESS RELATIONSHIP (BOARD MEMBERS OF AN AFFILIATED NOT FOR PROFIT). FORM 990, PART VI, SECTION B, LINE 11 THE FINAL FORM 990 WAS DISTRIBUTED TO THE BOARD OF DIRECTORS AT THE BOARD MEETING PRIOR TO THE FILING OF THE RETURN. FORM 990, PART VI, SECTION B, LINE 12C IHA'S CONFLICT OF INTEREST REPORTING POLICY ENCOMPASSES ALL CURRENT IHA OFFICERS AND EMPLOYEES (INCLUDING KEY EMPLOYEES) OF THE ORGANIZATION. THE CEO, CHIEF LEGAL COUNSEL, CORPORATE COMPLIANCE/PRIVACY OFFICER, OR SPECIAL INVESTIGATIONS UNIT MAY MAKE THE DETERMINATION THAT A CONFLICT OF INTEREST EXISTS AND WILL REVIEW THE ACTUAL CONFLICT AS CONFLICTS ARE REPORTED TO THEM. CONFLICTS ARE ALSO IDENTIFIED ANNUALLY WHEN THE SIGNED EMPLOYEE ATTESTATIONS, CONFIDENTIAL QUESTIONNAIRES & PLEDGE OF CONFIDENTIALITY AND CONTINUING DISCLOSURE FORM (FOR BOD MEMBERS) ARE RECEIVED. IF A CONFLICT OF INTEREST IS IDENTIFIED, THE INDIVIDUAL IS PROHIBITED FROM PARTICIPATING IN THE DELIBERATIONS OR DECISIONS RELATED TO THIS TRANSACTION. FORM 990, PART VI, SECTION B, LINE 15 THE GOVERNING BOARD OF DIRECTORS OF INDEPENDENT HEALTH ASSOCIATION, INC. 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 FUNCTIONALITY 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 CEO EXCLUDES HIMSELF/HERSELF FROM THESE DELIBERATIONS WHEN DISCUSSING HIS/HER COMPENSATION. 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 2010) AND WAS USED TO ESTABLISH COMPENSATION FOR THE FOLLOWING POSITIONS: EXECUTIVE VICE PRESIDENT - CHIEF FINANCIAL OFFICER; EXECUTIVE VICE PRESIDENT - CHIEF MARKETING OFFICER; EXECUTIVE VICE PRESIDENT - CHIEF MEDICAL OFFICER; VICE PRESIDENT OFFICE OF STRATEGY MGT.; SENIOR VICE PRESIDENT MEMBER SERVICES; SENIOR VICE PRESIDENT CIO; VICE PRESIDENT & GENERAL COUNSEL; SENIOR VICE PRESIDENT HUMAN RESOURCES & ORGANIZATIONAL DEVELOPMENT, AND VICE PRESIDENT GOVERNMENT AFFAIRS. 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. HOURS WORKED PER WEEK FOR RELATED ORGANIZATIONS FORM 990, PART VII, SECTION A, COLUMN B HOURS WORKED PER WEEK FOR RELATED ORGANIZATIONS INCLUDED IN THE HOURS REPORTED ON FORM 990, PART VII, THE FOLLOWING INDIVIDUALS DEVOTED TIME EACH WEEK TO RELATED ORGANIZATIONS: CROPP, MICHAEL W - 23 HOURS JOHNSON, MARK I - 20 HOURS DIGIULIO, LAWRENCE C - 24 HOURS DISERAFINO, LOUIS G - 9 HOURS GILLESPIE, JOHN A - 0 HOURS RODGERS, JOHN R - 9 HOURS TULYK-ROSSI, LAURA - 6 HOURS CASSELL, CAROL M - 2 HOURS CUMMING, GORDON B - 20 HOURS FASO, MICHAEL J - 20 HOURS PENTKOWSKI, ANN M - 20 HOURS SYRACUSE, JILL M - 29 HOURS FOELS, THOMAS J - 17 HOURS REHRAUER, LINDA R - 1 HOUR FELDMAN, JUDITH - 23 HOURS DONOVAN, DAVID W- 20 HOURS ARGENTIERI, RICHARD M - 26 HOURS BUTLER, THEODORE - 39 HOURS WALLESHAUSER, JAMES B - 19 HOURS GIBSON, DONALD - 23 HOURS MYLOTTE, KATHLEEN - 1 HOUR CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED GAINS ON INVESTMENTS: 5,721,202. IMPAIRMENT LOSS ON INVESTMENTS -59,490. TOTAL TO FORM 990, PART XI, LINE 5: 5,661,712. PROGRAM SERVICE ACCOMPLISHMENTS: FORM 990, PART III, LINE 4A: INDEPENDENT HEALTH ASSOCIATION (IHA) COORDINATES THE DELIVERY OF QUALITY HEALTH CARE COVERAGE THROUGH CONTRACTS WITH INDIVIDUAL PRACTICE ASSOCIATION OF WESTERN NEW YORK (IPAWNY), A TAXABLE NON-PROFIT, FOR ITS COMMERCIAL AND MEDICARE HMO PRODUCTS, OR, EFFECTIVE JANUARY 1, 2009, DIRECTLY WITH PHYSICIANS, HOSPITAL AND OTHER PROVIDERS FOR ONLY ITS MEDICAID HMO PRODUCT (WHICH INCLUDES THE FAMILY HEALTH PLUS (FHP) PROGRAM AVAILABLE TO ELIGIBLE RESIDENTS OF ERIE COUNTY AND THE CHILD HEALTH PLUS (CHP) PROGRAM) FOR THE ARRANGEMENT OF PHYSICIAN, HOSPITAL, MEDICALLY NECESSARY HEALTH SERVICES, DIAGNOSTIC AND PREVENTIVE HEALTH SERVICES TO THE COMMUNITY WITHIN THE 8 COUNTIES OF WESTERN NEW YORK (WNY). OUR PARTICIPATING HEALTH CARE PROVIDERS ARE REIMBURSED USING A FEE FOR SERVICE PAYMENT METHODOLOGY, WITH SUCH RATES TYPICALLY BELOW THE PROVIDER'S NORMAL AND CUSTOMARY RATES. 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 DEVELOPMENT 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. INDEPENDENT HEALTH ALSO ESTABLISHED A PATIENT CENTERED MEDICAL HOME (PCMH) PILOT PROGRAM IN JANUARY 2009. THE PCMH PROGRAM INCLUDES 18 DIVERSE PRIMARY CARE PRACTICES ACROSS WNY, 130 PHYSICIANS AND NEARLY 50,000 IHA MEMBERS. THE PRACTICES WORK 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 IS ALSO PROVIDED TO HELP IMPLEMENT NEW OFFICE PROCEDURES. ANOTHER IMPORTANT ASPECT OF THE PCMH MODEL IS THAT IT ALSO INCLUDES 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 HAS DEVOTED TIME AND FINANCIAL RESOURCES THAT ENABLE THE 130 PHYSICIANS IN THIS PROGRAM TO REDESIGN THEIR PRACTICE. IHA ALSO PROVIDES MEMBERS DETAILED INFORMATION TO THIS PROGRAM IN ORDER TO ENABLE OUR PHYSICIANS TO MANAGE CARE OPPORTUNITIES FOR IHA MEMBERS. OTHER MEMBERSHIP SERVICES INCLUDES PREVENTIVE CARE THAT INVOLVES ACTIVE PARTICIPATION BY COMMUNITY ORGANIZATIONS IN INITIATIVES SUCH AS THE P2 COLLABORATIVE OF WESTERN NEW YORK, A NOT-FOR-PROFIT ORGANIZATION 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, AND THE ADOPTION OF HEALTH INFORMATION TECHNOLOGY AND ELECTRONIC MEDICAL RECORDS THROUGH ORGANIZATIONS SUCH AS HEALTHELINK. HEALTH EDUCATION PROGRAMS ARE ALSO OFFERED TO IHA MEMBERS AND NONMEMBERS OUT OF THE 6 MEDICARE INFORMATION CENTERS IN WESTERN NEW YORK OPERATED BY IHA. THESE PROGRAMS INCLUDE GENERAL HEALTH EDUCATION, HEALTHY COOKING DEMONSTRATIONS, PHYSICAL FITNESS CLASSES, AND PROGRAMS THAT ADDRESS SPECIFIC CHRONIC CONDITIONS. THESE PROGRAMS ARE PROMOTED THROUGH DIRECT MAILINGS TO MEMBERS, APPROXIMATELY 10,000 EVENT CALENDARS DISTRIBUTED TO NON-MEMBERS, AND LIMITED ADVERTISING TO THE GENERAL PUBLIC IN LOCAL NEWSPAPERS. SERVICES OFFERED TO NON-MEMBERS ARE ONLY AVAILABLE THROUGH ONE OF THE MIC SITES, AS THE INTENT IS TO ATTRACT CURRENT MEMBERS TO ATTEND HEALTH EDUCATION PROGRAMS. THE IHA HEALTH COACH PROGRAM OFFERS A BROAD RANGE OF SERVICES, INCLUDING EDUCATION AND CARE COORDINATION, TO IMPROVE THE HEALTH OF INDEPENDENT HEALTH MEMBERS AND EMPLOYEES. HEALTH COACHES ARE LICENSED REGISTERED NURSES, DIETICIANS, 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 THAT OFFER SUPPORT AND KNOWLEDGE NEEDED TO HELP MEMBERS MAKE LASTING CHANGES TO ACHIEVE BETTER HEALTH AND WELL-BEING; WHETHER IT IS TO HELP DEVELOP A DIET PLAN TO ASSIST WITH LOSING WEIGHT, GET HELP WITH A SPECIFIC MEDICAL CONDITION, OR COMPILE A LIST OF QUESTIONS TO ASK HIS/HER DOCTOR. IN ADDITION, IHA HAS QUALITY INCENTIVE PROGRAMS IN PLACE WITH SELECT PROVIDERS IN ORDER TO FACILITATE QUALITY IMPROVEMENT INITIATIVES IN THE COMMUNITY. IT ALSO WORKS WITH THE COMMUNITY OF HEALTH CARE PROVIDERS TO MANAGE AND DEVELOP INNOVATIVE HEALTH CARE SYSTEMS TO PROVIDE AFFORDABLE ACCESS TO COVERAGE AND TO REDUCE MEDICAL EXPENSE WITHIN THE COMMUNITY. SPECIFICALLY, IHA HAS DEVELOPED AND CONDUCTS EXTENSIVE COMMUNITY WELLNESS AND BENEFIT INITIATIVES THAT HELP MEMBERS LIVE HEALTHIER LIVES AND HELP EMPLOYERS CONTROL HEALTH CARE COSTS, INCLUDED AMONG THESE INITIATIVES ARE COMMUNITY WELLNESS AWARENESS PROGRAMS, THE NATIONALLY RECOGNIZED PAY FOR PERFORMANCE PROGRAM (PRACTICE EXCELLENCE) AND THE IDEALIZED DESIGN OF CLINICAL OFFICE PRACTICE, A MULTI-FACETED APPROACH TO RE-DESIGNING PHYSICIAN OFFICES TO BE MORE PATIENT-CENTRIC. ADDITIONALLY, IHA CONTRACTED WITH THE NEW YORK STATE DEPARTMENT OF HEALTH IN A 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 AT 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. THERE IS ALSO THE COMMUNITY EMR PROGRAM WHICH INCLUDES THREE REGIONAL HEALTH PLANS OF WNY, WHERE ALL PARTIES AGREED TO CREATE A FUNDING MECHANISM TO PROMOTE THE ADOPTION OF EMR TECHNOLOGIES IN WNY. THE LARGEST PORTION OF THIS FUNDING HAS BEEN ALLOCATED TO A HEAL 10 GRANT AS AN "IN-KIND" CONTRIBUTION TO COMMUNITY EMR'S EFFORTS TO IMPLEMENT EMR'S IN PRIMARY CARE PRACTICES UNDER THE MEDICAL HOME CONCEPT WITH A CLINICAL FOCUS ON IMPROVING DIABETES MANAGEMENT. THE REMAINING PORTION OF THE COMMUNITY EMR FUNDING, NOT ALLOCATED TO THE HEAL 10 GRANT, WILL BE DEVOTED TOWARD IMPLEMENTATION OF EMR'S IN PRIMARY AND SPECIALTY PHYSICIAN OFFICES, PER A MUTUALLY AGREED UPON NEEDS ASSESSMENT. IHA ALSO SUBSIDIZES INDIGENT CARE AND HEALTH CARE INITIATIVES UNDER THE HEALTH CARE REFORM ACT LAW AND CONTRIBUTES TO A PROFESSIONAL EDUCATION POOL, LARGELY TO FUND GRADUATE MEDICAL EDUCATION EXPENSES. IHA IS ALSO RESPONSIBLE FOR COVERED LIVES ASSESSMENT THAT IS BASED ON THE REGION IN WHICH THE MEMBER RESIDES AND THEIR ENROLLMENT STATUS (FAMILY OR INDIVIDUAL). SURCHARGES AND COVERED LIVES REMITTANCES ARE REQUIRED MONTHLY, AND TOTALED APPROXIMATELY $14.9 MILLION DURING 2010. IHA IS ALSO A PRIMARY DEVELOPER OF MY ONLINE RECORD TO ACCESS RESOURCES (MORTAR), A SOFTWARE PROGRAM DESIGNED SPECIFICALLY FOR UNDERSERVED COMMUNITY POPULATIONS TO IDENTIFY HEALTH CONCERNS AND THEN ASSIST PEOPLE IN CONNECTING WITH SERVICES TO ADDRESS THEIR CONCERNS. MORTAR CAPTURES DATA RELATED TO A PERSON'S HEALTH (MEDICATIONS, HEALTH STATUS, FAMILY HISTORY, ETC) BUT ALSO INCORPORATES LIVING CONDITIONS THAT AFFECT HEALTH, SUCH AS NOT HAVING ELECTRICITY OR LIVING IN AN UNSAFE HOME. THE INITIATIVE RECOGNIZES THE BARRIERS THOSE SERVED OFTEN ENCOUNTER IN ACCESSING HEALTH CARE. IT WORKS TO SUPPORT AN INDIVIDUAL'S NEED FOR OBTAINING A VARIETY OF SERVICES, FROM APPLYING FOR HEALTH INSURANCE AND FINDING A PRIMARY CARE PHYSICIAN TO GETTING INFORMATION AND COUNSEL ON MEDICAL CONDITIONS, NUTRITION AND PRESCRIPTION DRUG USE. INDEPENDENT HEALTH HAS CONTRIBUTED OVER 150 HOURS OF PERSONNEL SUPPORT. THERE IS AN EXPECTATION THAT THIS PROGRAM CAN BE BROUGHT TO OTHER PLACES LOCATED IN UNDERSERVED AREAS. IHA'S REDSHIRT VOLUNTEER PROGRAM PROVIDES IHA EMPLOYEES AN OPPORTUNITY TO VOLUNTEER IN THEIR COMMUNITY, WHILE PROMOTING IHA AS A COMPANY WHO IS WILLING TO HELP GIVE BACK TO WNY. REDSHIRT EMPLOYEE VOLUNTEERS PROVIDE THE REDSHIRT TREATMENT TO THE COMMUNITY THROUGH DIRECT EMPLOYEE INTERACTION AND EXHIBITS IHA'S MESSAGE OF QUALITY CARE THROUGHOUT WNY. THE REDSHIRT TREATMENT IS A COMPANY-WIDE COMMITMENT TO DEMONSTRATE OUR CORE VALUES OF BEING PASSIONATE, CARING, RESPECTFUL, COLLABORATIVE AND ACCOUNTABLE. DURING 2010, 148 INDEPENDENT HEALTH EMPLOYEES VOLUNTEERED TO SERVE AS REDSHIRT VOLUNTEERS. IN TOTAL, THESE INDIVIDUALS VOLUNTEERED AT 17 COMMUNITY EVENTS; WHICH REPRESENTED 444 HOURS OF VOLUNTEER TIME. THE INDEPENDENT HEALTH EMPLOYEE DRESS DOWN DAY AND MONTH PROGRAM ALLOWS EMPLOYEES 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 INDEPENDENT HEALTH EMPLOYEES. THE PROGRAM IS EMPLOYEE-DRIVEN WITH A GOAL TO BROADLY SUPPORT MANY 501(C)(3) ORGANIZATIONS THROUGHOUT WESTERN NEW YORK. IN 2010, INDEPENDENT HEALTH ALSO RAISED $116,468 FOR 41 NON-PROFIT ORGANIZATIONS IN OUR COMMUNITY. IN ADDITION, INDEPENDENT HEALTH EMPLOYEES SUPPORT THE UNITED WAY OF BUFFALO AND ERIE COUNTY'S COMMUNITY CARE CAMPAIGN. THE UNITED WAY OF BUFFALO AND ERIE COUNTY WORK 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. INDEPENDENT HEALTH 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 IHA SERVES AND PARTICIPATION IN THE UNITED WAY CAMPAIGN IS A GREAT WAY TO DEMONSTRATE THEIR COMMITMENT. THE 2010-2011 CAMPAIGN RAISED $83,083. THIS AMOUNT INCLUDES THE MONTH-LONG CAMPAIGN (OCTOBER 2010) AND THE JANUARY 2011 DRESS DOWN MONTH. THE COMMUNITY ALSO BENEFITS FROM IHA'S SPONSORSHIPS THAT PROMOTE HEALTH AND WELLNESS. ONE EXAMPLE IS IHA'S FIVE YEAR 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. A UNIQUE NEW PARTNERSHIP WITH THE YMCA BUFFALO NIAGARA AND INDEPENDENT HEALTH WILL INTEGRATE PERSONAL AND FAMILY FITNESS OPPORTUNITIES WITH ON-SITE MEDICAL SERVICES IN A NEW STATE-OF-THE-ART FACILITY. THE NEWYMCA WILL HAVE AN ON-SITE PRESENCE OFFERING HEALTH AND WELLNESS PROGRAMS INCLUDING CUSTOMIZED FITNESS PROGRAMS TARGETING OBESITY AND DISCOUNTED FEES FOR INDEPENDENT HEALTH MEMBERS. ANOTHER IMPORTANT INDEPENDENT HEALTH COLLABORATION IS A SERVICE PROGRAM CALLED "THINKBRIGHT AND WELL'S LIVEWELL INITIATIVE." THIS PROGRAM IS CONDUCTED IN PARTNERSHIP WITH SEVERAL COMMUNITY ORGANIZATIONS AND WORKS WITH INDIVIDUALS AND ORGANIZATIONS IN BUFFALO'S 14204 EAST SIDE NEIGHBORHOODS TO MOTIVATE YOUTH AND ADULTS TO FIGHT OBESITY IN THEIR LIVES BY ADOPTING HEALTHY HABITS AND BEHAVIORS, EMPOWER INDIVIDUALS TO BECOME INFORMED, ACTIVE PARTNERS IN THEIR HEALTHCARE AND DEVELOP GRASSROOTS LEADERS WHO WILL MOBILIZE THE CITIZENRY TO DEVELOP MEANINGFUL AND APPROPRIATE SOLUTIONS THAT COMBAT OBESITY IN THEIR NEIGHBORHOODS, IN COLLABORATION WITH ESTABLISHED HEALTH AND COMMUNITY ORGANIZATIONS. IHA FURTHER COLLABORATES WITH THE WESTERN NEW YORK COMMUNITY IN ITS AFFILIATIONS WITH THE HEALTH SCIENCES CHARTER SCHOOL WHICH WAS DEVELOPED TO PROVIDE OPPORTUNITIES FOR HIGH SCHOOL STUDENTS FOR CAREERS IN THE MEDICAL FIELD; WNYHEALTHENET, TO FURTHER IHA'S COMMITMENT TO REDUCING THE COST OF AND IMPROVING THE QUALITY OF HEATH CARE IN THE WESTERN NEW YORK COMMUNITY, AND THE WESTERN NEW YORK CLINICAL INFORMATION EXCHANGE ("HEALTHELINK") - A 501(C)(3) ORGANIZATION THAT OPERATES AN INFORMATION EXCHANGE TO FACILITATE THE ACCESS TO CLINICAL INFORMATION AMONG HEALTH CARE PROVIDERS AND HEALTH INSURERS. DURING 2010, HEALTHELINK WAS AWARDED $16.1 MILLION FROM THE FEDERAL STIMULUS GRANT TO SUPPORT THE USE OF ELECTRONIC MEDICAL RECORDS IN THE WESTERN NEW YORK REGION. THE GRANT WILL PROVIDE SIGNIFICANT OPPORTUNITIES TO ELIMINATE WASTE, DUPLICATION OF SERVICE, AND INEFFICIENCIES ACROSS THE SYSTEM. IT WILL ALSO IMPROVE THE QUALITY AND SAFETY OF CARE, WHICH ARE ALSO IMPORTANT FOR REDUCING COSTS. FOR EXAMPLE, HEALTHELINK FOSTERS E-PRESCRIBING, WHICH COULD REDUCE HOSPITAL ADMISSIONS BY UP TO 5 PERCENT BY IMPROVING THE READABILITY OF PRESCRIPTIONS AND IDENTIFYING POSSIBLE DRUG INTERACTIONS. IHA COORDINATES THE DELIVERY OF HEALTH CARE SERVICES FOR APPROXIMATELY 162,397 SUBSCRIBERS 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. COMBINED, THE COMPANY PROVIDES HEALTH BENEFITS AND SERVICES TO NEARLY 350,000 INDIVIDUALS IN WESTERN NEW YORK AND THROUGHOUT THE COUNTRY. THE QUALITY OF SERVICES IS EVIDENCED BY INDEPENDENT HEALTH BEING NAMED, FOR THE SECOND YEAR IN A ROW, THE HIGHEST RATED HEALTH PLAN IN THE NATION FOR CUSTOMER SERVICE, ACCORDING TO THE NATIONAL COMMITTEE FOR QUALITY ASSURANCE (NCQA) QUALITY COMPASS 2010. FOR THE SIXTH CONSECUTIVE YEAR, INDEPENDENT HEALTH IS RANKED AMONG THE BEST HEALTH PLANS IN THE NATION BY NCQA IN THEIR 2010 RANKINGS OF AMERICA'S BEST HEALTH INSURANCE PLANS 2010-11. IT CONTINUES TO RANK AMONG THE TOP 10 PERCENT OF PLANS IN THE COUNTRY FOR THE COMMERCIAL AND MEDICAID LINES OF BUSINESS. THE RANKINGS ARE BASED ON DATA COMPILED THROUGH SURVEY RESULTS FROM A RANDOM SAMPLE OF THE INDIVIDUAL HEALTH PLAN MEMBERS, CLINICAL QUALITY, MEMBER SATISFACTION, AND NCQA ACCREDITATION STANDARDS. INDEPENDENT HEALTH ALSO RECEIVED THE TOP HEALTH INSURANCE PLAN RANKING IN THE NEW YORK/NEW JERSEY REGION AND THE SECOND HIGHEST RANKING IN THE NATION BY J.D. POWER & ASSOCIATES FOR 2009 AND 2010. OTHER ADJUSTMENTS TO NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: OTHER CHANGES IN NET ASSETS INCLUDES UNREALIZED GAINS (LOSSES) IN INVESTMENTS & IMPAIRMENT LOSSES ON INVESTMENTS TOTALLING $5,661,710. 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