2019-11-14T13:10:28-06:00 2018-12-31 PRICEWATERHOUSECOOPERS LLP 2001 MARKET ST SUITE 1800 PHILADELPHIA PA 19103 990 2018-01-01 135656874 BLUE CROSS BLUE SHIELD ASSOCIATION % ROBERT J KOLODGY BLUE 3122976000 225 NORTH MICHIGAN AVENUE CHICAGO IL 60601 ROBERT J KOLODGY EVP & CFO 3122976462 2019-11-11 ERICA R MCREYNOLDS P00977806 2673303000 127.0.0.1 23522320193185000040 2019-11-14 P B544581ED91A233C77E4572BF701736520745E9C 834A1EF8C5CB908FCFA6F6BFDB384A286FAED99C 2018 2020-03-31 21:24:44Z SCOTT SEROTA 225 NORTH MICHIGAN AVENUE CHICAGO IL 60601 740180490 false X WWW.BCBS.COM X 1948 IL SEE SCHEDULE O 37 36 1608 13338128 0 0 580392385 602323467 8208551 2383589 3390438 1461163 591991374 606168219 0 0 0 0 227680113 227692132 0 0 0 365743613 374948891 593423726 602641023 -1432352 3527196 727717175 795746293 628999945 699522048 98717230 96224245 X SEE SCHEDULE O false false 219458440 219630194 SEE SCHEDULE O 168139555 174982093 SEE SCHEDULE O 115053501 101571778 SEE SCHEDULE O 76079830 94262437 Fee for services activities 76079830 94262437 578731326 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 false false false false false false true true true false true 230 0 1608 true true true false false false false false true 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 Matthew D All Board Member 4.0 0.0 X 0 0 0 David W Anderson Board Member 4.0 0.0 X 0 0 0 Curtis Barnett Board Member 4.0 0.0 X 0 0 0 Christopher Booth Board Member 4.0 0.0 X 0 0 0 Gail K Bourdreaux Board Member 4.0 0.0 X 0 0 0 Chester Burrell Board Member 4.0 0.0 X 0 0 0 Kevin P Conlin Board Member 4.0 0.0 X 0 0 0 Patrick Conway Board Member 4.0 0.0 X 0 0 0 Andrew Dreyfus Board Member 4.0 0.0 X 0 0 0 John D Forsyth Board Member 4.0 0.0 X 0 0 0 Mark B Ganz Board Member 4.0 0.0 X 0 0 0 Roberto Garcia-Rodriguez Board Member 4.0 0.0 X 0 0 0 Don C George Board Member 4.0 0.0 X 0 0 0 Patrick J Geraghty Board Member 4.0 0.0 X 0 0 0 Steve Grandfield Board Member 4.0 0.0 X 0 0 0 Michael Guyette Board Member 4.0 0.0 X 0 0 0 JD Hickey Board Member 4.0 0.0 X 0 0 0 Daniel J Hilferty Board Member 4.0 0.0 X 0 0 0 David Holmberg Board Member 4.0 0.0 X 0 0 0 Tim Huckle Board Member 4.0 0.0 X 0 0 0 Kim Keck Board Member 4.0 0.0 X 0 0 0 Pam Kehaly Board Member 4.0 0.0 X 0 0 0 Terry Kellogg Board Member 4.0 0.0 X 0 0 0 Scott D Kreiling Board Member 4.0 0.0 X 0 0 0 Daniel J Loepp Board Member 4.0 0.0 X 0 0 0 Charlene Maher Board Member 4.0 0.0 X 0 0 0 Paul Markovich Board Member 4.0 0.0 X 0 0 0 David S Pankau Board Member 4.0 0.0 X 0 0 0 Brian Pieninck Board Member 4.0 0.0 X 0 0 0 Carol Pigott Board Member 4.0 0.0 X 0 0 0 Sean M Robbins Board Member 4.0 0.0 X 0 0 0 Jeff Roe Board Member 4.0 0.0 X 0 0 0 Craig Samitt Board Member 4.0 0.0 X 0 0 0 Rick Schum Board Member 4.0 0.0 X 0 0 0 Gary D St Hilaire Board Member 4.0 0.0 X 0 0 0 Paula A Steiner Board Member 4.0 0.0 X 0 0 0 Michael B Stollar Board Member 4.0 0.0 X 0 0 0 Steven Udvarhelyi Board Member 4.0 0.0 X 0 0 0 Timothy Vines Board Member 4.0 0.0 X 0 0 0 Danette K Wilson Board Member 4.0 0.0 X 0 0 0 Scott P Serota President and CEO 40.0 0.0 X X 7238158 0 3426939 Kathleen Blatz Board Member 4.0 0.0 X 0 0 0 Andrew Corbin Board Member 2.0 0.0 X 0 0 0 Steven Martin Board Member 4.0 0.0 X 0 0 0 Jennifer Atkins VP, Network Solutions 40.0 0.0 X 365873 0 55246 William A Breskin Sr., VP, Government Programs 40.0 0.0 X 756551 0 116303 Maureen Cahill SVP & Chief Human Res. Officer 40.0 0.0 X 390031 0 33410 John Cerisano VP, Federal Relations 40.0 0.0 X 578958 0 132029 Teresa Clark VP, Office of Clinical Affairs 40.0 0.0 X 323582 0 35917 Terry Cooney VP, Investments and National E 40.0 0.0 X 607984 0 156402 Kathy Didawick VP, Congressional Communicatio 40.0 0.0 X 575314 0 125185 Robert Drelick Sr., VP, Chief Information Off 40.0 0.0 X 254401 0 15144 Paul Gerrard VP, Strategic Communications 40.0 0.0 X 407892 0 57029 Kris Haltmeyer VP, Health Policy and Analysis 40.0 0.0 X 549391 0 122896 Justine Handelman SVP Legislative and Regulatory 40.0 0.0 X 722425 0 126151 Trent T Haywood Sr. VP, Chief Medical Officer 40.0 0.0 X 682584 0 54707 Kari Hedges Sr. VP, Commercial Markets 40.0 0.0 X 695962 0 96301 Mitchell J Helfand VP, Finance Operations 40.0 0.0 X 383458 0 27505 Kim D Holland VP, State Affairs 40.0 0.0 X 451723 0 57611 Mike Joyce VP, Chief Auditor and Complian 40.0 0.0 X 422022 0 112976 Nasir Khan VP, Chief Technology Officer 40.0 0.0 X 621925 0 10060 Julie Koewler VP, Brand Strategy 40.0 0.0 X 385845 0 51080 Robert Kolodgy Executive VP and Chief Financi 40.0 0.0 X 1052713 0 50419 Brad Lubrant VP, Finance 40.0 0.0 X 284895 0 138596 Nisha Lulla VP, Chief of Staff , Office of 40.0 0.0 X 259465 0 52539 Ngan MacDonald VP, Enterprise Data Solutions 40.0 0.0 X 232502 0 57111 Peter Naumovski VP and Chief Information Secur 40.0 0.0 X 658106 0 50635 W Scott Nehs Sr. VP, General Counsel and Co 40.0 0.0 X 704758 0 56194 William O'Loughlin VP, Chief Information Officer, 40.0 0.0 X 912313 0 1253 Patrick Pope VP, Deputy General Counsel ? S 40.0 0.0 X 427653 0 55877 Melissa Rotunno VP, Deputy General Counsel - B 40.0 0.0 X 335408 0 121194 Maureen E Sullivan SVP Chief Strategy Innovation 40.0 0.0 X 767775 0 79657 Mark Talluto VP, Strategy and Analytics 40.0 0.0 X 412822 0 48671 Jennifer Vachon Executive. VP and Chief of Sta 40.0 0.0 X 1027559 0 168199 Jody A Voss VP, Development, Innovation an 40.0 0.0 X 524553 0 12824 Kelly Williams VP, Human Resources 40.0 0.0 X 231435 0 19207 Naomi Aronson ED, Clinical Evaluation Innova 40.0 0.0 X 347544 0 93627 John Banta ED, Venture Funds 40.0 0.0 X 569277 0 233800 Jeffrey Berta ED EIT Business Partner 40.0 0.0 X 360100 0 99694 Denise Schofield ED Clinical Operations 40.0 0.0 X 375565 0 68030 David Yoder ED, Integrative Care Managemen 40.0 0.0 X 394386 0 49771 Frank E Coyne Jr Former Vice President 0.0 0.0 X 136897 0 0 John T Ericksen Former Vice President 0.0 0.0 X 170987 0 0 Alissa T Fox Former Sr Vice President 0.0 0.0 X 104800 0 0 Shirley S Lady Former Vice President 0.0 0.0 X 144850 0 0 Roger G Wilson Former Sr VP,General Counsel 0.0 0.0 X 153019 0 0 Daniel Engel FORMER SR ASSOC GEN COUNSEL 0.0 0.0 X 127235 0 0 27130696 0 6270189 882 true true false BEELINE SETTLEMENT COMPANY 12724 GRAN BAY PKWY WEST JACKSONVILLE FL 32258 WORKFORCE STAFFING 32858022 HEALTH INTELLIGENCE CO LLC 225 N MICHIGAN AVENUE CHICAGO IL 60601 DATA ANALYTICS 22852579 KIRKLAND ELLIS 200 E RANDOLPH DRIVE CHICAGO IL 60601 LEGAL SERVICES 22796178 WORLDWIDE INSURANCE SERVICES LLC 100 MATSONFORD ROAD RADNOR PA 19087 INTERL MED INSURANCE 12655287 DXC TECHNOLOGY SERVICES LLC 1775 TYSONS BLVD TYSONS VA 22102 IT SERVICE SOLUTIONS 12468059 160 0 FEDERAL EMPLOYEE PROGRAM 900099 219630194 219630194 BLUECARD 900099 174982093 174982093 OTHER SERVICES 900099 113448743 101571778 11876965 FEE FOR SERVICES 900099 54904738 54904738 BLUESNET 900099 20366720 20366720 18990979 18990979 602323467 3460884 3460884 0 0 0 0 0 114436582 18498395 115405767 18606504 -969185 -108109 -1077295 -1077295 0 0 0 0 0 0 0 0 0 K-1 INCOME 900001 1461163 1461163 1461163 606168219 590446502 13338128 2383589 X 0 0 0 0 29971299 19650925 10320374 0 0 152610133 150755932 1854201 14317397 10185228 4132169 19047683 18339814 707869 11745620 11403849 341771 0 24801107 24129755 671352 1422084 1422084 4812808 4812808 0 0 204812856 203764578 1048278 10220388 10220388 10901458 10755965 145493 59534943 59000265 534678 0 12640169 11934261 705908 6936662 6494599 442063 0 6145248 5335392 809856 0 0 19040835 18766526 274309 6754669 6665450 89219 MEMBERSHIP & SPONSORSHIP 1979235 1838574 140661 CONTRIBUTIONS - GENERAL 2402437 2182678 219759 BOOKS & PERIODICALS 1608320 1476069 132251 MISCELLANEOUS 935672 -403814 1339486 602641023 578731326 23909697 0 1553513 1302014 485181159 504222247 0 0 39445250 36834280 0 0 0 0 0 0 0 0 13424929 15249607 90772034 67706523 26328116 23065511 15000 5121 141931768 182737158 0 0 4793929 7401742 15043511 24928612 727717175 795746293 167168875 113218586 0 0 4477061 6334391 0 0 376543915 498119809 0 0 0 0 0 0 80810094 81849262 628999945 699522048 X 98717230 96224245 0 0 0 0 98717230 96224245 727717175 795746293 X 3527196 -5063816 -956365 X X false true X true false 942131 545000 545000 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 15000 REPUBLICAN ATTORNEY GENERAL ASSOCATION 1747 PENNSYLVANIA AVE NW WASHINGTON DC 20006 464501717 25000 DEMOCRATIC LEGISLATI VE CAMPAIGN 1225 I ST NW 1250 WASHINGTON DC 20005 521870839 5000 false false false 87000000 10526904 0 10526904 10526904 SCHEDULE C, PART I-A, LINE 1 THE FILING ORGANIZATION MADE CONTRIBUTIONS FROM THE GENERAL TREASURY TO FIVE SECTION 527 POLITICAL ORGANIZATIONS AND SPONSORED A SEPARATE FUND DESIGNATED FOR EXEMPT PURPOSES. false true X 28680555 17614563 11065992 62091479 50091960 11999519 23065511 NON-PUBLIC MUTUAL FUNDS 89995713 C WELLS FARGO MUTUAL FUNDS 25364283 F EXCHANGE TRADED FUNDS 59815066 C INVEST. IN AFFILIATES >5% 7352096 C 206,839 COMMON, BCS INSR. CORP 210000 C 182737158 0 PENSION LIABILITES 48575991 LONG-TERM DEFERRED REVENUE 6734772 LEASE LIABILITY 13499403 OTHER BENEFITS 6015876 POST-RETIREMENT LIABILITY 7023220 81849262 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 COUNTING 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, 2018 AND 2017. THE ASSOCIATION IS OPEN TO EXAMINATION BY TAXING AUTHORITIES FROM FISCAL YEAR 2015 FORWARD. X X X true true X X X X X X true true false false false false false true false Scott P Serota President and CEO 1308079 3960113 1969966 3394527 32412 10665097 2851212 Jennifer Atkins VP, Network Solutions 247829 82500 35544 13750 41496 421119 0 William A Breskin Sr., VP, Government Programs 318830 210000 227721 93317 22986 872854 36434 Maureen Cahill SVP & Chief Human Res. Officer 172639 217000 392 18500 14910 423441 0 John Cerisano VP, Federal Relations 370167 121000 87791 87988 44041 710987 11336 Teresa Clark VP, Office of Clinical Affairs 154162 168400 1020 16500 19417 359499 0 Terry Cooney VP, Investments and National E 263330 140000 204654 111817 44585 764386 82493 Frank E Coyne Jr Former Vice President 0 0 136897 0 0 136897 136897 Kathy Didawick VP, Congressional Communicatio 341598 128000 105716 89745 35440 700499 39427 Robert Drelick Sr., VP, Chief Information Off 131683 90000 32718 2665 12479 269545 0 Daniel Engel FORMER SR ASSOC GEN COUNSEL 0 0 127235 0 0 127235 127235 John T Ericksen Former Vice President 0 0 170987 0 0 170987 170987 Alissa T Fox Former Sr Vice President 0 0 104800 0 0 104800 104800 Paul Gerrard VP, Strategic Communications 286079 120600 1213 16285 40744 464921 0 Kris Haltmeyer VP, Health Policy and Analysis 300535 148900 99956 85852 37044 672287 25087 Justine Handelman SVP Legislative and Regulatory 397862 230000 94563 104216 21935 848576 27723 Trent T Haywood Sr. VP, Chief Medical Officer 439084 225000 18500 18500 36207 737291 0 Kari Hedges Sr. VP, Commercial Markets 353403 205000 137559 53933 42368 792263 28141 Mitchell J Helfand VP, Finance Operations 87007 98000 198451 13362 14143 410963 12220 Kim D Holland VP, State Affairs 320923 112300 18500 17425 40186 509334 0 Mike Joyce VP, Chief Auditor and Complian 241213 100000 80809 70248 42728 534998 35287 Nasir Khan VP, Chief Technology Officer 545297 0 76628 3891 6169 631985 0 Julie Koewler VP, Brand Strategy 333017 39400 13428 13750 37330 436925 0 Robert Kolodgy Executive VP and Chief Financi 600051 425000 27662 18500 31919 1103132 0 Shirley S Lady Former Vice President 0 0 144850 0 0 144850 144850 Brad Lubrant VP, Finance 208653 75000 1242 104233 34363 423491 0 Nisha Lulla VP, Chief of Staff , Office of 259465 0 0 8131 44408 312004 0 Ngan MacDonald VP, Enterprise Data Solutions 230492 0 2010 14461 42650 289613 0 Peter Naumovski VP and Chief Information Secur 416414 240000 1692 13750 36885 708741 0 W Scott Nehs Sr. VP, General Counsel and Co 451438 250000 3320 18500 37694 760952 0 William O'Loughlin VP, Chief Information Officer, 735409 0 176904 1253 0 913566 0 Patrick Pope VP, Deputy General Counsel ? S 311663 115000 990 10479 45398 483530 0 Melissa Rotunno VP, Deputy General Counsel - B 229549 92000 13859 84114 37080 456602 3339 Maureen E Sullivan SVP Chief Strategy Innovation 417506 225000 125269 48812 30845 847432 0 Mark Talluto VP, Strategy and Analytics 273056 117500 22266 16658 32013 461493 0 Jennifer Vachon Executive. VP and Chief of Sta 433684 354000 239875 126592 41607 1195758 52164 Jody A Voss VP, Development, Innovation an 68521 127500 328532 5500 7324 537377 2221 Roger G Wilson Former Sr VP,General Counsel 0 0 153019 0 0 153019 153019 Kelly Williams VP, Human Resources 210651 20500 284 9187 10020 250642 0 Naomi Aronson ED, Clinical Evaluation Innova 223959 84500 39085 64680 28947 441171 0 John Banta ED, Venture Funds 279323 286600 3354 205734 28066 803077 166600 Jeffrey Berta ED EIT Business Partner 243078 82000 35022 73543 26151 459794 0 Denise Schofield ED Clinical Operations 279706 78200 17659 65046 2984 443595 0 David Yoder ED, Integrative Care Managemen 248675 125500 20211 18500 31271 444157 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. 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 the CEO's 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. The Association has designed a comprehensive financial and service relocation program to assist relocating employees and new hires with the relocation process. The Association may provide a tax gross up on all or part of a relocating employee's taxable relocation expenses in order to assist the relocating employee or new hire for negative tax consequences due to taxation of relocation expense reimbursements. The expenses are reimbursed and included in taxable compensation, if applicable, in accordance with the Association's policy. To facilitate business meetings with visiting Plan officials and others and to foster social interaction serving the interests of the Association and to foster their good health, the Association reimburses a luncheon club membership for officers. The expenses are reimbursed and included in taxable compensation, if applicable, in accordance with the Association's policy. 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 CEO's compensation 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 Question 4a Two officers received severance pay during 2018: Nasir Khan $ 386,425 William O'Loughlin $ 541,809 Question - 4b 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 - 492,352 William A Breskin - 11,283 John Cerisano - 31,396 Terry Cooney - 23,103 KATHY RIPLEY DIDAWICK - 26,207 KRIS O HALTMEYER - 31,121 JUSTINE HANDELMAN - 59,244 KARI J HEDGES - 5,160 MIKE JOYCE - 6,996 Brad Lubrant - 14,064 Melissa Rotunno - 19,688 Maureen Sulivan - 15,823 JENNIFER VACHON - 75,326 Naomi Aronson - 48,816 Jeffrey Berta - 14,724 Denise Schofield 15,085 The combined total of imputed SERP included in column C: $890,388. The combined total of imputed SERP included in column C: $1,639,219. 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 and an Executive Director participate in separate Long Term Incentive Bonus programs. As with the regular performance bonus programs, payouts under these Long Term Incentive Programs reflect the extent to which pre-established performance goals are reached. However, unlike the annual performance bonus program, the Long Term Incentive programs operate on a multi-year cycle to assure that the CEO and an Executive Director have incentives that look beyond the immediate year. Under the CEO's 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 committee's 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. Under the Executive Director's program, the performance measurement is based on the performance of specified investments. N PARKER OFFICER'S FAMILY MEMBER 134479 EMPLOYEE SALARY 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 THAT OPERATE 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 ASSOCIATION'S 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 GOVERNMENT'S 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 2018 INCLUDED THE INTRODUCTION OF A NEW HEALTH INSURANCE PRODUCT CALLED FEP BLUE FOCUS. ALSO IN 2018, A CONTINUED MODERNIZATION OF FEP'S CONTERAL CLAIMS SYSTEM, FURTHER ENHANCEMENTS TO MEMBER HEALTH TOOLS AND MEMBER'S DIGITAL EXPERIENCE, AS WELL AS THE CONTINUED DEVELOPMENT OF INTEGRATED CARE MANAGEMENT PROGRAMS ACROSS THE ENTIRE SPECTRUM TO SERVE MEMBERS AND IMPROVE MEMBER'S EXPERIENCE. RETENTION RATE WAS 99.1%. 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 PLAN'S 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 PROVIDES OPTIONAL CONSULTING SERVICES AND OTHER MISCELLANEOUS PROJECTS; OPERATION OF THE NATIONAL EMPLOYEE BENEFITS ADMINISTRATION PROGRAM THAT PROVIDES A COMPREHENSIVE GROUP PACKAGE OF EMPLOYEE BENEFITS PROGRAMS TO THE PLANS; A CLOSED PRIVATE, WIDE AREA NETWORK THAT LINKS TEH COMPOUTER AND INFROMATION RESOURCES OF THE PLANS EXPENSE: 76,079,829 GRANTS: NONE NONEREVENUE: 94,262,437 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 715 606,780 LOSS ON SETTLEMENT OF RETIREMENT OBLIGATION (968,993) ADDITIONAL K-1 REVENUE (594,152) --------------- TOTAL (956,365) TOTAL (956,365) Part IX Line 24b IN FURTHERANCE OF ITS TAX EXEMPT PURPOSE TO PROMOTE THE COMMON GOOD AND GENERAL WELFARE OF THE COMMUNITY AND TO IMPROVE THE NATION'S HEALTH, AND THE ACCESSIBILITY AND AFFORDABILITY OF HEALTHCARE FOR ALL AMERICANS, BCBSA INCURRED EXPENSES TO ORGANIZATIONS THAT SUPPORT AND ADVOCATE BCBSA'S VIEWS ON ISSUES FACING THE HEALTH INSURANCE INDUSTRY. INCURRED EXPENSES INCLUDE BUILDING OF COALITIONS, GRASSROOTS OUTREACH AND EDUCATION, BCBSA DID NOT CONTROL OR DIRECT THESE ACTIVITIES. BCBSA HAS DISCLOSED THESE EXPENSES ON PART IX, LINE 24B, CONTRIBUTIONS - GENERAL. FORM 990 PART IX LINE 11G DESCRIPTION:VARIOUS CONSULTING FEES TOTAL FEES:XXX-XX-XXXX FORM 990 PART IX LINE 11G DESCRIPTION:TEMPORARY HELP TOTAL FEES:6078498 FORM 990 PART IX LINE 11G DESCRIPTION:PRINTING & GRAPHICS TOTAL FEES:3154795 FORM 990 PART IX LINE 11G DESCRIPTION:RECRUITING TOTAL FEES:456434 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 HEA IL NA C CORP true true false false false false false false false false false false false false false true true false false BLUE CROSS BLUE SHIELD INSTITUTE INC A 48616 ACTUAL COST BLUE CROSS BLUE SHIELD INSTITUTE INC P 85131 ACTUAL COST BLUE CROSS BLUE SHIELD INSTITUTE INC Q 6075664 ACTUAL COST