2018-11-13T17:44:21-06:00 2017-12-31 PricewaterhouseCoopers LLP 2001 MARKET STREET SUITE 1800 PHILADELPHIA PA 19103 990 2017-01-01 135656874 BLUE CROSS BLUE SHIELD ASSOCIATION % ROBERT J KOLODGY BLUE 3122976000 225 NORTH MICHIGAN AVENUE CHICAGO IL 60601 ROBERT J KOLODGY EVP & CFO 3122976462 2018-11-13 ERICA R MCREYNOLDS P00977806 2673303000 2018-11-09 155.201.188.33 23522320183175000008 2018-11-13 P 6F18A9ECEA515428CECC2CD0A0922593BB7766AB 6D11B275E5C4ABCF32238923ED11C2D446E22F6A 2017 2019-02-21 02:37:17Z SCOTT SEROTA 225 NORTH MICHIGAN AVENUE CHICAGO IL 60601 670558891 false X WWW.BCBS.COM X 1948 IL SEE SCHEDULE O 37 36 1542 0 8972214 0 0 0 529379397 580392385 3493769 8208551 3256939 3390438 536130105 591991374 0 0 0 0 209581774 227680113 0 0 0 325374555 365743613 534956329 593423726 1173776 -1432352 646430670 727717175 539476077 628999945 106954593 98717230 X SEE SCHEDULE O false false 203148009 203306029 SEE SCHEDULE O 160764928 164327626 SEE SCHEDULE O 61634128 56972198 SEE SCHEDULE O 146236593 155786533 571783658 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 212 0 1542 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 BoardMember 4.0 0.0 X 0 0 0 Curtis Barnett BoardMember 4.0 0.0 X 0 0 0 Richard L Boals BoardMember 4.0 0.0 X 0 0 0 Christopher Booth BoardMember 4.0 0.0 X 0 0 0 Gail Boudreaux BoardMember 1.0 0.0 X 0 0 0 Chester Burrell BoardMember 4.0 0.0 X 0 0 0 Patrick Conway BoardMember 1.0 0.0 X 0 0 0 Andrew C Corbin BoardMember 4.0 0.0 X 0 0 0 Andrew Dreyfus BoardMember 4.0 0.0 X 0 0 0 John D Forsyth BoardMember 6.0 0.0 X 0 0 0 Mark B Ganz BoardMember 4.0 0.0 X 0 0 0 Roberto Garcia-Rodriguez BoardMember 4.0 0.0 X 0 0 0 Don C George BoardMember 4.0 0.0 X 0 0 0 Patrick J Geraghty BoardMember 4.0 0.0 X 0 0 0 Sandy A Gibson BoardMember 2.0 0.0 X 0 0 0 Michael A Gold BoardMember 4.0 0.0 X 0 0 0 Michael Guyette BoardMember 4.0 0.0 X 0 0 0 J D Hickey BoardMember 6.0 0.0 X 0 0 0 Daniel J Hilferty BoardMember 6.0 0.0 X 0 0 0 David Holmberg BoardMember 4.0 0.0 X 0 0 0 Tim Huckle BoardMember 4.0 0.0 X 0 0 0 Kim Keck BoardMember 4.0 0.0 X 0 0 0 Pam Kehaly BoardMember 1.0 0.0 X 0 0 0 Terry Kellogg BoardMember 4.0 0.0 X 0 0 0 Scott D Kreiling BoardMember 4.0 0.0 X 0 0 0 Daniel Loepp BoardMember 6.0 0.0 X 0 0 0 Charlene Maher BoardMember 4.0 0.0 X 0 0 0 Roberto Marino BoardMember 4.0 0.0 X 0 0 0 Paul Markovish BoardMember 6.0 0.0 X 0 0 0 Steven S Martin BoardMember 4.0 0.0 X 0 0 0 David S Pankau BoardMember 6.0 0.0 X 0 0 0 Carol Pigott BoardMember 4.0 0.0 X 0 0 0 Jeff Roe BoardMember 4.0 0.0 X 0 0 0 Rick Schum BoardMember 6.0 0.0 X 0 0 0 Gary D St Hilaire BoardMember 4.0 0.0 X 0 0 0 Paula A Steiner BoardMember 4.0 0.0 X 0 0 0 Joseph R Swedish BoardMember 4.0 0.0 X 0 0 0 Udvarhelyi Steven BoardMember 4.0 0.0 X 0 0 0 J Bradley Wilson BoardMember 4.0 0.0 X 0 0 0 Danette K Wilson BoardMember 4.0 0.0 X 0 0 0 Scott P Serota President, CEO & Board Member 40.0 0.0 X 5564769 0 3246079 Jennifer Atkins VP, Network Solutions 40.0 0.0 X 125104 0 25433 William A Breskin Sr. VP, Government Programs 40.0 0.0 X 678712 0 141463 Bhaskar Bulusu VP, Enterprise Information 40.0 0.0 X 316115 0 71520 Maureen Cahill SVP & Chief Human Res. Officer 40.0 0.0 X 577157 0 55479 John Cerisano VP, Federal Relations 40.0 0.0 X 439377 0 112848 Teresa Clark VP, Office of Clinical Affairs 40.0 0.0 X 390922 0 59528 Terry Cooney VP Invest. & Nat Emp Ben Admin 40.0 0.0 X 490834 0 225379 Kathy Didawick VP Congressional Communication 40.0 0.0 X 491058 0 138732 Robert Drelick SR VP, Chief Information Offic 40.0 0.0 X 235414 0 46218 Alissa T Fox SR VP, Policy & Representation 40.0 0.0 X 1778404 0 31296 Paul Gerrard VP, Strategic Communications 40.0 0.0 X 385451 0 62219 Kris O Haltmeyer VP, Health Policy & Analysis 40.0 0.0 X 467182 0 112301 Justine Handelman SVP, Policy and Representation 40.0 0.0 X 544708 0 94599 Trent T Haywood SR VP & Chief Medical Officer 40.0 0.0 X 659862 0 63926 Kari J Hedges SVP, National Programs 40.0 0.0 X 626768 0 119117 Mitchell J Helfand VP, FINANCIAL OPERATIONS 40.0 0.0 X 452390 0 133508 Kim D Holland VP, State Affairs 40.0 0.0 X 354109 0 54725 Mike Joyce VP Chief Auditor & Compliance 40.0 0.0 X 374445 0 141433 Nasir Khan VP & Chief Technology Officer 40.0 0.0 X 492320 0 100642 Julie Lynn Koewler VP, Brand Strategy 40.0 0.0 X 170070 0 29685 Robert J Kolodgy Jr Executive VP & CFO 40.0 0.0 X 968451 0 55014 Brad Lubrant VP, FINANCIAL SERVICES 40.0 0.0 X 224160 0 131781 Nisha K Lulla VP, Office of the President 40.0 0.0 X 64074 0 27719 Ngan MacDonald VP, Enterprise Data Solution 40.0 0.0 X 65411 0 28504 Petar Naumovski VP & Chief Info. Security Ofcr 40.0 0.0 X 642548 0 55872 William S Nehs SR VP, Gen Counsel & Secretary 40.0 0.0 X 664985 0 60881 William O'Loughlin VP & CIO Fed. Employee Program 40.0 0.0 X 609307 0 33581 Patrick Pope VP, Dep Genl Coun Strat Co 40.0 0.0 X 294289 0 52198 Melissa Rotunno VP, DEPUTY GEN. COUNSEL, BRAND 40.0 0.0 X 268193 0 47695 Maureen E Sullivan Chief Strategy & Innov Officer 40.0 0.0 X 763770 0 64040 Mark Talluto VP, Strategy and Analytics 40.0 0.0 X 398837 0 52991 Jennifer Vachon Executive VP & Chief of Staff 40.0 0.0 X 839682 0 145083 Jody A Voss VP Develop., Innovation & GPO 40.0 0.0 X 453366 0 68083 John Banta ED, Venture Fund 40.0 0.0 X 340867 0 243340 Carole R Flamm Executive Medical Director 40.0 0.0 X 408241 0 98130 Winfred D Lawrence Jr ED, Enterprise Program 40.0 0.0 X 343879 0 109054 Steven Putziger Exc Dir Brand Protect&Finance 40.0 0.0 X 351796 0 53588 David Yoder ED, Integrated Care Mgmt 40.0 0.0 X 382168 0 54282 23699195 0 6447966 37 false true false HEALTH INTELLIGENCE CO LLC 225 N MICHIGAN AVENUE CHICAGO IL 60601 DATA ANALYTICS 24300460 KIRKLAND ELLIS 200 E RANDOLPH DRIVE CHICAGO IL 60601 LEGAL SERVICES 24526249 BEELINE SETTLEMENT COMPANY 12724 GRAN BAY PKWY WEST JACKSONVILLE FL 32258 WORKFORCE STAFFING 13409640 DXC TECHNOLOGY SERVICES LLC 1775 TYSONS BLVD TYSONS VA 22102 IT SERVICE SOLUTIONS 11388137 WORLDWIDE INSURANCE SERVICES LLC 100 MATSONFORD ROAD RADNOR PA 19087 INTERL MED INSURANCE 9842712 146 0 FEDERAL EMPLOYEE PROGRAM 900099 203306029 203306029 BLUECARD 900099 164327625 164327625 OTHER SERVICES 900099 68070175 66678444 1391731 BRAND ENHANCEMENTS 900099 56972198 56972198 CONSULTING & MISC. SERVICES 900099 48090468 48090468 39625890 35435845 4190045 580392385 2057550 2057550 0 0 0 0 0 76968656 7749863 70827603 7739914 6141053 9949 6151001 6151001 0 0 0 0 0 0 0 0 0 K-1 INCOME 900001 3390438 3390438 3390438 591991374 574810609 8972214 8208551 X 0 0 0 0 25869441 17329576 8539865 0 157396344 155968741 1427603 14040668 10934534 3106134 19015161 17572982 1442178 11358499 11039939 318560 0 31598354 29599949 1998406 1818623 1818623 4772893 4772893 0 0 197813396 196984374 829022 8796497 8796497 10213770 10113955 99816 52858979 52131758 727222 0 12110954 11701748 409206 7247001 6353686 893315 0 6310565 5521172 789393 16875 16875 0 17612594 17391734 220860 6652390 6575924 76466 MEMBERSHIP & SPONSORSHIP 2160483 1849632 310851 0 GENERAL CONTRIBUTIONS 3098995 2817374 281621 0 BOOKS & PERIODICALS 1908582 1802042 106540 0 MISCELLANEOUS 752662 706525 46137 0 593423726 571783658 21640070 0 1232240 1553513 332382459 485181159 0 0 49392994 39445250 0 0 0 0 3055997 0 0 0 11403334 13424929 103356137 77028021 25384300 26328116 15000 15000 203092575 141931768 0 0 3961052 4793929 16510719 15043511 646430670 727717175 148319317 167168875 0 0 5877081 4477061 0 0 317274989 376543915 0 0 0 0 0 0 68004690 80810094 539476077 628999945 X 106954593 98717230 0 0 0 0 106954593 98717230 646430670 727717175 X -1432352 3259923 -10064934 X false true X true false 880973 580000 580000 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 DEMOCRATIC LEGISLATI VE CAMPAIGN 1225 I ST NW 1250 WASHINGTON DC 20005 521870839 15000 REPUBLICAN STATE LEA DERSHIP COMMITTEE 1201 F ST NW STE 675 WASHINGTON DC 20004 050532524 15000 false false false 87000000 11263683 0 11263683 11263683 SCHEDULE C, PART I-A, LINE 1 THE FILING ORGANIZATION MADE CONTRIBUTIONS FROM THE GENERAL TREASURY TO SIX SECTION 527 POLITICAL ORGANIZATIONS AND SPONSORED A SEPARATE FUND DESIGNATED FOR EXEMPT PURPOSES. false true X 26497782 15581864 10915918 76858355 61446157 15412198 26328116 NON-PUBLIC MUTUAL FUNDS 70655073 C WELLS FARGO MUTUAL FUNDS 28449157 F EXCHANGE TRADED FUNDS 21876072 C 1 SHARE COMMON BSBSA SRVCS.INC 13344165 C INVEST. IN AFFILIATES >5% 7397301 C 206,839 COMMON, BCS INSR. CORP 210000 C 141931768 0 PENSION LIABILITES 31415815 LONG-TERM DEFERRED REVENUE 8434772 LEASE LIABILITY 15872135 OTHER BENEFITS 4239858 POST-RETIREMENT LIABILITY 20847514 80810094 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, 2017 AND 2016. THE ASSOCIATION IS OPEN TO EXAMINATION BY TAXING AUTHORITIES FROM FISCAL YEAR 2014 FORWARD. X X 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 1214535 0 3774871 0 575363 0 3213542 0 32537 0 8810848 0 1394262 0 Jennifer Atkins VP, Network Solutions 110983 0 0 0 14121 0 0 0 25433 0 150537 0 0 0 William A Breskin Sr. VP, Government Programs 313285 0 195000 0 170427 0 110809 0 30654 0 820175 0 157775 0 Bhaskar Bulusu VP, Enterprise Information 231117 0 65000 0 19998 0 10717 0 60803 0 387635 0 0 0 Maureen Cahill SVP & Chief Human Res. Officer 376260 0 200000 0 897 0 18000 0 37479 0 632636 0 0 0 John Cerisano VP, Federal Relations 262276 0 104000 0 73101 0 63165 0 49683 0 552225 0 55101 0 Teresa Clark VP, Office of Clinical Affairs 275455 0 112400 0 3067 0 13500 0 46028 0 450450 0 0 0 Terry Cooney VP Invest. & Nat Emp Ben Admin 252861 0 131800 0 106173 0 175235 0 50144 0 716213 0 41805 0 Kathy Didawick VP Congressional Communication 323049 0 106000 0 62009 0 96187 0 42545 0 629790 0 0 0 Robert Drelick SR VP, Chief Information Offic 189710 0 0 0 45704 0 4442 0 41776 0 281632 0 0 0 Alissa T Fox SR VP, Policy & Representation 480353 0 325000 0 973051 0 8100 0 23196 0 1809700 0 0 0 Paul Gerrard VP, Strategic Communications 274290 0 110000 0 1161 0 15822 0 46397 0 447670 0 0 0 Kris O Haltmeyer VP, Health Policy & Analysis 275005 0 115000 0 77177 0 74462 0 37839 0 579483 0 0 0 Justine Handelman SVP, Policy and Representation 367118 0 115000 0 62590 0 66538 0 28061 0 639307 0 0 0 Trent T Haywood SR VP & Chief Medical Officer 421862 0 220000 0 18000 0 16200 0 47726 0 723788 0 0 0 Kari J Hedges SVP, National Programs 322188 0 185100 0 119480 0 71897 0 47220 0 745885 0 0 0 Mitchell J Helfand VP, FINANCIAL OPERATIONS 242945 0 96400 0 113045 0 107784 0 25724 0 585898 0 0 0 Kim D Holland VP, State Affairs 246109 0 90000 0 18000 0 16974 0 37751 0 408834 0 0 0 Mike Joyce VP Chief Auditor & Compliance 232110 0 100000 0 42335 0 92757 0 48676 0 515878 0 8101 0 Nasir Khan VP & Chief Technology Officer 280139 0 110000 0 102181 0 53325 0 47317 0 592962 0 37909 0 Julie Lynn Koewler VP, Brand Strategy 149702 0 0 0 20368 0 718 0 28967 0 199755 0 0 0 Robert J Kolodgy Jr Executive VP & CFO 580710 0 355000 0 32741 0 18000 0 37014 0 1023465 0 0 0 Brad Lubrant VP, FINANCIAL SERVICES 179425 0 43700 0 1035 0 92445 0 39336 0 355941 0 0 0 Petar Naumovski VP & Chief Info. Security Ofcr 400387 0 239500 0 2661 0 13500 0 42372 0 698420 0 0 0 William S Nehs SR VP, Gen Counsel & Secretary 427117 0 235000 0 2868 0 18000 0 42881 0 725866 0 0 0 William O'Loughlin VP & CIO Fed. Employee Program 331983 0 147000 0 130324 0 7756 0 25825 0 642888 0 1054 0 Patrick Pope VP, Dep Genl Coun Strat Co 223378 0 70000 0 911 0 10182 0 42016 0 346487 0 0 0 Melissa Rotunno VP, DEPUTY GEN. COUNSEL, BRAND 207193 0 56000 0 5000 0 5402 0 42293 0 315888 0 0 0 Maureen E Sullivan Chief Strategy & Innov Officer 405473 0 213000 0 145297 0 28160 0 35880 0 827810 0 0 0 Mark Talluto VP, Strategy and Analytics 262057 0 115000 0 21780 0 16206 0 36785 0 451828 0 0 0 Jennifer Vachon Executive VP & Chief of Staff 419093 0 245000 0 175589 0 98573 0 46510 0 984765 0 49458 0 Jody A Voss VP Develop., Innovation & GPO 264897 0 110000 0 78469 0 47325 0 20758 0 521449 0 0 0 John Banta ED, Venture Fund 257987 0 78600 0 4280 0 203514 0 39826 0 584207 0 0 0 Carole R Flamm Executive Medical Director 255755 0 79300 0 73186 0 56894 0 41236 0 506371 0 14353 0 Winfred D Lawrence Jr ED, Enterprise Program 223362 0 63900 0 56617 0 94970 0 14084 0 452933 0 20337 0 Steven Putziger Exc Dir Brand Protect&Finance 241074 0 73000 0 37722 0 28227 0 25361 0 405384 0 0 0 David Yoder ED, Integrated Care Mgmt 240212 0 122300 0 19656 0 18000 0 36282 0 436450 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. 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 employees taxable relocation expenses in order to assist the relocating employee or new hire for negative tax consequences due to relocation expenses. The expenses are reimbursed and included in taxable compensation, if applicable, in accordance with the Associations 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 Associations 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 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 - 1,286,632 William A Breskin - 36,434 John Cerisano - 11,336 Terry Cooney - 82,493 KATHY RIPLEY DIDAWICK - 39,427 KRIS O HALTMEYER - 25,087 JUSTINE HANDELMAN - 27,723 KARI J HEDGES - 28,142 MITCHELL J HELFAND - 12,220 MIKE JOYCE - 35,288 JENNIFER VACHON - 52,164 JODY A VOSS - 2,221 STEVEN PUTZIGER - 50 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 also participate 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 AND EXECUTIVE DIRECTOR haVE 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 104264 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 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 2017 INCLUDED THE CONTINUED MODERNIZATION OF FEP'S CENTRAL CLAIM SYSTEM, FURTHER ENHANCEMENTS TO MEMBER HEALTH TOOLS AND MEMBER'S DIGITAL EXPERIENCE WITH THE INTRODUCTION OF A MOBILE APP. ADDITIONAL ACHIEVEMENTS INCLUDE THE CONTINUED DEVELOPMENT OF INTEGRATED CARE MANAGEMENT PROGRAMS ACROSS THE ENTIRE SPECTRUM TO SERVE MEMBERS AND IMPROVE MEMBER'S EXPERIENCE, INCLUDING THE IMPLEMENTAITON OF TELEHEALTH SERVICES FOR MINOR ACUTE CONDITIONS. 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 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: 59,239,622 GRANTS: NONE NONEREVENUE: 68,195,562. THE ASSOCIATION PROVIDES OPTIONAL CONSULTING SERVICES AND OTHER MISCELLANEOUS PROJECTS. EXPENSE: 43,634,677 GRANTS: NONE NONEREVENUE: 47,965,080 OPERATION OF THE NATIONAL EMPLOYEE BENEFITS ADMINISTRATION PROGRAM WHICH PROVIDES A COMPREHENSIVE GROUP PACKAGE OF EMPLOYEE BENEFITS PROGRAMS TO THE PLANS. EXPENSE: 15,680,090 GRANTS: NONE NONEREVENUE: 16,081,662 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: 15,453,424 GRANTS: NONE NONEREVENUE: 4,190,045 OPERATION OF THE TELECOMMUNICATION NETWORK WHICH FACILITATES INTER-PLAN COMMUNICATION. EXPENSE: 12,228,779 GRANTS: NONE NONEREVENUE: 19,354,183 FORM 990, PART IV, LINE 28 For years through 2016, the organization responded yes to Form 990, Part IV, line 28(c) and reported on Schedule L Part IV, transactions with entities where an officer or director of the entity was also an officer or director of the organization. This is consistent with the 2013 Schedule L Part IV definition of an interested person. This definition of interested person in the 2013 instructions to Schedule L was deleted in the 2014 Schedule L instructions. The current instructions to Schedule L provide that organization should answer Yes to Form 990, Part IV, lines 28a, 28b, or 28c, only if the party to the transaction was an interested person as defined in the Schedule L instructions, and the threshold amounts described in the specific instructions to Schedule L, Part IV are met. There are no entities that meet the definition of an interested person under the current instructions to Schedule L. Accordingly, the organization has responded No to Form 990, Part IV, line 28(c) and no entities are reported in Schedule L Part IV as having business transaction with the organization. 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 $(2,998,179) LOSS ON SETTLEMENT OF RETIREMENT OBLIGATION $(4,873,794) ADDITIONAL K-1 REVENUE $(2,192,961) --------------- TOTAL $ (10,064,934) 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:19989967 FORM 990 PART IX LINE 11G DESCRIPTION:PRINTING & GRAPHICS TOTAL FEES:2388895 FORM 990 PART IX LINE 11G DESCRIPTION:RECRUITING TOTAL FEES:986826 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 -2807710 1994091 1.00000 true false false false false false false false false false false false false false false true true false false BLUE CROSS BLUE SHIELD INSTITUTE INC Q 3838872 ACTUAL COST BLUE CROSS BLUE SHIELD INSTITUTE INC P 94201 ACTUAL COST