2017-11-14T08:23:23-06:00 2016-12-31 861065772 DELOITTE TAX LLP 200 RENAISSANCE CENTER SUITE 3900 DETROIT MI 482431300 990 2016-01-01 161080163 INDEPENDENT HEALTH ASSOCIATION INC INDE 7166313001 511 FARBER LAKES DRIVE BUFFALO NY 14221 MICHAEL W CROPP MD PRESIDENT & CEO 7166313001 2017-11-07 1 LORI BOYCE P00121981 3133963000 167.219.88.227 2017-11-07 08:56:06 ES P 5D1D8FFD29A5D915C2D704A49D0C87155FE83209 5D1D8FFD29A5D915C2D704A49D0C87155FE83209 2016 2017-02-10 21:41:12Z MICHAEL W CROPP MD 511 FARBER LAKES DRIVE BUFFALO NY 14221 1781337070 0 X WWW.INDEPENDENTHEALTH.COM X 1980 NY PROVIDE HEALTH-RELATED PRODUCTS AND SERVICES THAT ENABLE AFFORDABLE ACCESS TO QUALITY HEALTH CARE. 20 18 1356 257 0 0 0 0 1514828437 1516332353 10758182 11030461 54641781 20027 1580228400 1527382841 2031552 2002372 1400164143 1340584630 100019916 75119652 0 0 0 115969033 82620917 1618184644 1500327571 -37956244 27055270 805443960 733259803 390641859 290965228 414802101 442294575 PROVIDE HEALTH-RELATED PRODUCTS AND SERVICES THAT ENABLE AFFORDABLE ACCESS TO QUALITY HEALTH CARE. 0 0 1381160579 2002372 1516332353 INDEPENDENT HEALTH ASSOCIATION (IHA) COORDINATES THE DELIVERY OF QUALITY HEALTH CARE COVERAGE THROUGH CONTRACTS WITH THE INDIVIDUAL PRACTICE ASSOCIATION OF WESTERN NEW YORK (IPAWNY), A TAXABLE NON-PROFIT, FOR ITS COMMERCIAL AND MEDICARE HMO PRODUCTS WITHIN THE EIGHT COUNTIES OF WESTERN NEW YORK (WNY). IHA ALSO PROVIDES COVERAGE AND COORDINATES SERVICES TO ITS MEDICAID HMO PRODUCT (WHICH INCLUDES THE CHILD HEALTH PLUS (CHP) PROGRAM AND TWO NEW STATE PRODUCTS EFFECTIVE DURING 2016: HEALTH AND RECOVERY PLAN (HARP) AND THE ESSENTIAL HEALTH PLAN), FOR THE ARRANGEMENT OF PHYSICIAN, HOSPITAL, MEDICALLY NECESSARY HEALTH SERVICES, DIAGNOSTIC AND PREVENTIVE HEALTH SERVICES TO THE COMMUNITIES LOCATED IN ERIE AND NIAGARA COUNTY. SEE SCHEDULE O FOR ADDITIONAL DETAIL. 1381160579 0 0 0 0 0 0 0 1 0 1 0 0 1 1 1 1 1 0 0 1 0 0 0 0 0 0 1 0 1 0 0 0 0 0 1 0 1 0 0 0 0 1 1 1 1 0 1 235 0 1 1356 1 0 1 BD 0 0 0 0 0 X 20 18 1 0 0 0 0 0 0 1 1 1 0 1 1 1 1 1 1 1 1 1 0 NY X MICHAEL J FASO 7166313001 511 FARBER LAKES DRIVE BUFFALO NY 14221 ANTHONY B MARTINO BOARD MEMBER 5.00 0.00 X 41000 0 6625 ANTHONY J BAYNES BOARD MEMBER 5.00 0.00 X 34000 0 6625 COLLEEN C DIPIRRO BOARD MEMBER 5.00 0.00 X 34000 0 6625 DANIEL B WEINTRAUB CPA BOARD MEMBER 5.00 0.00 X 34000 0 5186 DONALD ROBINSON MD BOARD MEMBER 5.00 0.00 X 45500 0 6625 DONNA M FERNANDES PHD BOARD MEMBER 5.00 0.00 X 34000 0 6625 FAUD SHERIFF MD START 416 BOARD MEMBER 5.00 0.00 X 46669 0 3458 JOHN N WALSH III BOARD MEMBER 5.00 2.00 X 41000 0 0 LISA MENDONZA MD BOARD MEMBER 5.00 0.00 X 38000 0 6625 MOISES SUDIT PHD BOARD MEMBER 5.00 1.00 X 41000 0 0 NORA B SULLIVAN JD MBA BOARD MEMBER 5.00 1.00 X 41000 0 6625 PATRICIA SMITH BOARD MEMBER 5.00 0.00 X 34000 0 240 RENE F JONES BOARD MEMBER 5.00 0.00 X 0 0 0 SHAWN COTTON MD BOARD MEMBER 5.00 0.00 X 38000 0 6625 SIDNEY N WEISS CPA BOARD MEMBER 5.00 0.00 X 49000 0 6625 STUART H ANGERT BOARD MEMBER 5.00 2.00 X 34000 0 0 YVONNE S MINOR-RAGAN PHD BOARD MEMBER 5.00 0.00 X 34000 0 411 JOHN ANTKOWIAK MD CHAIRPERSON 12.00 2.00 X X 98000 0 6625 MICHAEL HEIMERL MD VICE CHAIRPERSON 5.00 0.00 X X 41300 0 6625 MICHAEL W CROPP MD PRESIDENT & CEO 43.00 16.00 X X 1576639 0 386300 JOHN MINEO ESQ SECRETARY-EVP GEN.COUNSEL 39.00 10.00 X 693903 0 160824 MARK I JOHNSON TREASURER & CFO 44.00 12.00 X 1705808 0 338299 DAWN C ODRZYWOLSKI CHIEF COMPLIANCE OFFICER 25.00 14.00 X 102430 0 28247 THOMAS J FOELS EVP-CHIEF MEDICAL OFFICER 37.00 11.00 X 583221 0 224404 ANN M PENTKOWSKI SVP-CHIEF ACTUARY & UNDER. OFF 37.00 12.00 X 489636 0 112544 ANNE C O'NEILL VP-CHIEF RISK OFFICER 40.00 10.00 X 174740 0 35742 DAVID V NARAMORE VP-ACTUARIAL 36.00 12.00 X 231052 0 33455 ERIC J DECKER SVP-INFORMATION TECHNOLOGY CIO 38.00 13.00 X 316002 0 50123 SCOTT J DWYER VP-CHIEF AUDIT EXECUTIVE 40.00 11.00 X 211036 0 32374 JAMES B WALLESHAUSER VP-OFFICE OF STRATEGY MGMT 37.00 11.00 X 297374 0 41400 JILL M SYRACUSE EVP-CHIEF ENGMT & SERVCNG. OFF 37.00 12.00 X 516949 0 167904 MICHAEL J FASO SVP-FINANCE & NEW BUS DEVELOP. 30.00 13.00 X 378139 0 114439 NORA K MCGUIRE SVP-CHIEF MARKETING OFFICER 28.00 17.00 X 364191 0 34356 PAMELA S MENARD END 316 SVP-HC DELIVERY INNOVATION 7.00 2.00 X 420335 0 291613 PATRICIA C CLABEAUX EVP-CHIEF HR OFFICER 37.00 13.00 X 351538 0 110219 ROBERTA D RIFKIN SVP-GOVT PROGS & AFFAIRS 36.00 13.00 X 302752 0 75216 JOHN R RODGERS EVP-COO 36.00 14.00 X 641366 0 212354 AMIN M SEREHALI VP-CLINICAL & BUS. INFORMATICS 41.00 14.00 X 259919 0 31071 ANNE S LAVIGNE VP-ESCO 26.00 7.00 X 403148 0 90881 BRIAN J SAME MEDICAL DIRECTOR-MED POLICY&UM 36.00 0.00 X 311996 0 58136 JUDITH FELD MD MEDICAL DIRECTOR-PROV ENGT 35.00 14.00 X 273627 0 70624 RICHARD M ARGENTIERI VICE PRESIDENT-SALES 28.00 21.00 X 309755 0 39705 JUDITH ANN FELDMAN FORMER KEY EMPLOYEE 0.00 0.00 X 126123 0 0 11800148 0 2822400 200 1 1 0 INDIVIDUAL PRACTICE ASSOCIATION OF WNY 511 FARBER LAKES DRIVE BUFFALO NY 14221 MEDICAL & PHARMACY BENEFIT SERVICES 1052238421 HEALTHPLEX IPA 333 EARLE OVINGTON BLVD UNIONDALE NY 115533608 DENTAL BENEFITS COMPANY 16623306 INOVALON INC 4321 COLLINGTON RD BOWIE MD 20716 REVENUE CONSULTING SERVICES 10489825 EYEMED VISION CARE 15274 COLLECTIONS CENTER DRIVE CHICAGO IL 60693 VISION BENEFITS COMPANY 6119283 PCI 703 WASHINGTON ST BUFFALO NY 142031416 INFORMATION TECHNOLOGY SERVICES 4959714 151 PREMIUMS, COB & REINSU 524114 1516332353 1516332353 1516332353 10470638 10470638 25573 7099 18474 18474 18474 254496853 10100 253886738 60392 610115 -50292 559823 559823 CONSULTING 541610 1553 1553 1553 1527382841 1516332353 0 11050488 2002372 2002372 1340584630 1340584630 12647571 12647571 38563595 10915152 27648443 4209808 305052 3904756 12981213 2552213 10429000 6717465 878080 5839385 716408 19 716389 302700 302700 162420 162420 1018496 1018496 19683243 5101398 14581845 3506209 31839 3474370 7603879 83207 7520672 16641439 1040608 15600831 1113524 1113524 545348 39893 505455 138692 138692 186582 186582 8323887 8323887 701927 701927 GME SURCHARGE 15241773 15241773 FAMILY CHOICE 2372843 2372843 0 NYS ASSESSMENT/ACA FEE 2099931 2099931 REPAIRS AND MAINTENANCE 1083604 0 1083604 1178012 11500 1166512 1500327571 1381160579 119166992 0 0 9906634 11228642 229321222 169818087 28439794 26992553 143378895 106388462 40094548 36990433 313672162 302360466 2160417 2075426 181849183 183794196 805443960 733259803 63879304 38804479 2795 0 27797175 28109187 1494726 3397777 25000000 23000000 272467859 197653785 390641859 290965228 X 246356636 272223859 168445465 170070716 414802101 442294575 805443960 733259803 27055270 437204 0 X 0 1 X 1 1 1 0 1 X 542713 542713 23772167 6831605 16940562 13208050 4823521 8384529 24980424 20066282 4914142 80875541 74667054 6208487 36990433 INVESTMENTS RESTRICTED AS TO USE 73403222 INVESTMENTS IN AFFILIATES 110390974 183794196 BENEFITS PAYABLE 28955054 CAPITATION PAYABLE 21259383 INTERCOMPANY PAYABLE 147439348 197653785 X 1520068524 437204 -2754055 -2316851 1522385375 4997466 4997466 1527382841 1492315559 -4997464 -4997464 1497313023 3014548 3014548 1500327571 PART IV, LINE 2B: LONG TERM INCENTIVE DEFERRED COMPENSATION PLAN IS OFFERED TO KEY EXECUTIVES. FUTURE PAYMENT IS BASED ON PERFORMANCE AND HISTORICAL COMPENSATION. ASSETS ARE UNDER CUSTODIAL ARRANGEMENT WITH M&T BANK. PART X, LINE 2: INDEPENDENT HEALTH ASSOCIATION & AFFILIATES (THE ASSOCIATION) RECOGNIZED NO LIABILITY FOR UNRECOGNIZED INCOME TAX BENEFITS AT DECEMBER 31, 2016 AND 2015. THE ASSOCIATION DID NOT RECORD INTEREST AND PENALTIES RELATED TO UNRECOGNIZED TAX BENEFITS IN 2016 AND 2015. THE ASSOCIATION IS SUBJECT TO U.S. FEDERAL INCOME TAX AND INCOME TAX IN VARIOUS STATE JURISDICTIONS. AS OF DECEMBER 31, 2016, THE ASSOCIATION'S TAX YEARS FOR 2014, 2015 AND 2016 ARE SUBJECT TO EXAMINATIONS BY FEDERAL TAX AUTHORITIES. PART XI, LINE 2D - OTHER ADJUSTMENTS: BANK CHARGES & INVESTMENT FEES NETTED AGAINST OTHER INCOME -1,501,255. OPERATING GRANT NETTED AGAINST INCOME -1,252,800. PART XI, LINE 4B - OTHER ADJUSTMENTS: COB REVENUE 2,156. RENTAL EXPENSE INCLUDED ON PART VIII, LINE 6B -7,099. MASON & NYS REINSURANCE 831,934. RX REBATE 4,170,475. PART XII, LINE 2D - OTHER ADJUSTMENTS: COB REVENUE -2,154. RENTAL EXPENSE INCLUDED ON PART VIII, LINE 6B 7,099. MASON & NYS REINSURANCE ADJUSTMENT -831,934. RX REBATE -4,170,475. PART XII, LINE 4B - OTHER ADJUSTMENTS: BANK CHARGES & INVESTMENT FEES NETTED AGAINST OTHER INCOME 1,501,255. OPERATING GRANT NETTED AGAINST INCOME 1,252,800. PENSION RELATED CHANGES OTHER THAN NET PERIODIC PENSION COST 260,493. CENTRAL AMERICA & THE CARIBBEAN INVESTMENTS 3810000 0 0 0 0 0 0 3810000 0 3810000 1 0 1 0 0 0 1 CATHOLIC HEALTH 212 MAIN STREET SUITE 300 BUFFALO NY 14214 222565278 501(C)(3) 16907 FMV SPONSORSHIP ECMC LIFELINE FOUNDATION 462 GRIDER STREET NO G-1 BUFFALO NY 14215 223283946 501(C)(3) 8000 FMV SPONSORSHIP PHARMACISTS ASSOCIATION WNY (PAWNY) PO BOX 1234 TONAWANDA NY 14151 160742611 501(C)(3) 11300 FMV SPONSORSHIP AMHERST CHAMBER OF COMMERCE 400 ESSJAY ROAD SUITE 150 AMHERST NY 14221 160959485 501(C)(6) 50000 FMV SPONSORSHIP NIAGARA FRONTIER AUTOMOBILE DEALERS ASSOCIATION (NFADA) 1144 WEHRLE DRIVE WILLIAMSVILLE NY 14221 161194880 501(C)(3) 40000 FMV SPONSORSHIP CANISIUS COLLEGE 2001 MAIN STREET BUFFALO NY 14208 160743209 501(C)(3) 32720 FMV SPONSORSHIP ASPIRE OF WNY 2356 NORTH FOREST ROAD GETZVILLE NY 14068 160757756 501(C)(3) 6500 FMV SPONSORSHIP CATHOLIC CHARITIES OF BUFFALO NEW YORK 741 DELAWARE AVENUE BUFFALO NY 14209 160743251 501(C)(3) 15000 FMV SPONSORSHIP HERITAGE CENTERS ERIE COUNTY 101 OAK STREET BUFFALO NY 14203 160769044 501(C)(3) 7500 BOOK SPONSORSHIP GATEWAY-LONGVIEW 10 SYMPHONY CIRCLE BUFFALO NY 143041798 161559402 501(C)(3) 5000 FMV SPONSORSHIP BROTHERS OF MERCY 4520 RANSOM RD CLARENCE NY 140312108 166074666 501(C)(3) 5500 FMV SPONSORSHIP SUMMIT EDUCATIONAL RESOURCES 150 STAHL RD GETZVILLE NY 140681231 161095750 501(C)(3) 5000 FMV SPONSORSHIP HOSPICE FOUNDATION OF WNY INC 225 COMO PARK BLVD CHEEKTOWAGA NY 142271416 223137812 501(C)(3) 5800 FMV SPONSORSHIP HILLSIDE WORK SCHOLARSHIP PROGRAM 1183 MONROE AVENUE ROCHESTER NY 14620 161453581 501(C)(3) 100000 FMV SPONSORSHIP FOR HEALTHY LIVING BUFFALO NIAGARA ENTERPRISE 665 MAIN STREET BUFFALO NY 142031425 161579523 501(C)(3) 50000 FMV SPONSORSHIP FOR HEALTHY LIVING SENECA DIABETES FOUNDATION PO BOX 309 IRVING NY 140810309 203214056 501(C)(3) 40000 FMV SPONSORSHIP & FIOM PROJECT BUFFALO NIAGARA PARTNERSHIP 655 MAIN STREET SUITE 200 BUFFALO NY 142031425 160761958 501(C)(6) 32050 FMV SPONSORSHIP BUFFALO URBAN LEAGUE 15 E GENESEE STREET BUFFALO NY 14203 160743940 501(C)(3) 25000 FMV SPONSORSHIP TASTE OF BUFFALO INC 276 GREENWOOD COURT EAST AURORA NY 14052 161390601 501(C)(6) 15500 FMV SPONSORSHIP FOR HEALTHY LIVING GREEN OPTIONS BUFFALO (GOBIKE) 640 ELLICOTT ST SUITE 447 BUFFALO NY 14203 272501533 501(C)(3) 70000 FMV SPONSORSHIP FOR HEALTHY LIVING NATIONAL FEDERATION OF JUST COMMUNITIES OF WNY 360 DELAWARE AVENUE BUFFALO NY 14202 203185568 501(C)(3) 13000 FMV SPONSORSHIP LEUKEMIA & LYMPHOMA SOCIETY 1311 MAMARONECK AVENUE SUITE 310 WHITE PLAINS NY 10605 135644916 501(C)(3) 10000 FMV SPONSORSHIP LEADERSHIP BUFFALO 237 MAIN STREET SUITE 1500 BUFFALO NY 142032720 161363536 501(C)(3) 10000 FMV SPONSORSHIP POLICE ATHLETIC LEAGUE 65 NIAGARA SQUARE 21ST FLOOR BUFFALO NY 14202 161468698 501(C)(3) 8000 FMV SPONSORSHIP FOR HEALTHY LIVING INDEPENDENT HEALTH FOUNDATION 777 INTERNATIONAL DRIVE BUFFALO NY 14221 161417199 501(C)(3) 1252800 FMV OPERATING GRANT KALEIDA HEALTH 726 EXCHANGE ST BUFFALO NY 14210 161533232 501(C)(3) 5000 FMV SPONSORSHIP SUBURBAN ADULT SERVICES (SASI) 960 WEST MAPLE CT ELMA NY 14059 161115992 501(C)(3) 5300 FMV SPONSORSHIP FOR HEALTHY LIVING BUFFALO HEARING & SPEECH 50 E NORTH ST BUFFALO NY 14203 160776186 501(C)(3) 5000 FMV SPONSORSHIP BUFFALO PREP PO BOX 1192 BUFFALO NY 14215 161359846 501(C)(3) 5000 FMV SPONSORSHIP P2 COLLABORATIVE 355 HARLEM ROAD BUILDING C WEST SENECA NY 14224 421604185 501(C)(3) 30000 FMV SPONSORSHIP LAKESHORE BEHAVIORAL HEALTH 255 DELAWARE AVE STE 300 BUFFALO NY 14202 161004090 501(C)(3) 5000 FMV SPONSORSHIP FOR HEALTHY LIVING LARKIN SQUARE 726 EXCHANGE ST STE 825 BUFFALO NY 14210 454273890 501(C)(3) 10000 FMV SPONSORSHIP FOR HEALTHY LIVING 29 3 PART I, LINE 2: DONATIONS/CONTRIBUTIONS: ONLY REMIT TO COLLABORATING COMMUNITY PARTNERS WHO ALIGN WITH OUR MISSION TO IMPROVE THE HEALTH AND WELL-BEING OF THE WNY COMMUNITY. THE GRANTS OR SPONSORSHIPS ARE RECORDED TO THE SAME ACCOUNT NUMBER ON THE GENERAL LEDGER SYSTEM UNDER "COMMUNITY PROGRAMS AND COPIES OF ALL PAYMENTS ARE KEPT ON FILE (PAPER & ELECTRONICALLY). X 1 1 X X X X X X 1 1 0 0 0 0 0 0 0 MICHAEL W CROPP MD PRESIDENT & CEO 921194 0 628543 0 26902 0 347733 0 38567 0 1962939 0 0 0 JOHN MINEO ESQ SECRETARY-EVP GEN.COUNSEL 292350 0 377473 0 24080 0 120778 0 40046 0 854727 0 250571 0 MARK I JOHNSON TREASURER & CFO 647695 0 1015396 0 42717 0 307344 0 30955 0 2044107 0 637334 0 THOMAS J FOELS EVP-CHIEF MEDICAL OFFICER 352250 0 201853 0 29118 0 163607 0 60797 0 807625 0 0 0 ANN M PENTKOWSKI SVP-CHIEF ACTUARY & UNDER. OFF 324131 0 137581 0 27924 0 104516 0 8028 0 602180 0 0 0 ANNE C O'NEILL VP-CHIEF RISK OFFICER 159464 0 13857 0 1419 0 18302 0 17440 0 210482 0 0 0 DAVID V NARAMORE VP-ACTUARIAL 208204 0 18895 0 3953 0 16972 0 16483 0 264507 0 0 0 ERIC J DECKER SVP-INFORMATION TECHNOLOGY CIO 251065 0 44414 0 20523 0 32187 0 17936 0 366125 0 0 0 SCOTT J DWYER VP-CHIEF AUDIT EXECUTIVE 181902 0 20807 0 8327 0 12265 0 20109 0 243410 0 0 0 JAMES B WALLESHAUSER VP-OFFICE OF STRATEGY MGMT 229723 0 45330 0 22321 0 21539 0 19861 0 338774 0 0 0 JILL M SYRACUSE EVP-CHIEF ENGMT & SERVCNG. OFF 321495 0 189266 0 6188 0 140829 0 27075 0 684853 0 0 0 MICHAEL J FASO SVP-FINANCE & NEW BUS DEVELOP. 253250 0 98118 0 26771 0 92473 0 21966 0 492578 0 0 0 NORA K MCGUIRE SVP-CHIEF MARKETING OFFICER 241011 0 99136 0 24044 0 17457 0 16899 0 398547 0 0 0 PAMELA S MENARD END 316 SVP-HC DELIVERY INNOVATION 48797 0 137442 0 234096 0 289254 0 2359 0 711948 0 0 0 PATRICIA C CLABEAUX EVP-CHIEF HR OFFICER 274618 0 74920 0 2000 0 69735 0 40484 0 461757 0 0 0 ROBERTA D RIFKIN SVP-GOVT PROGS & AFFAIRS 221145 0 58186 0 23421 0 54906 0 20310 0 377968 0 0 0 JOHN R RODGERS EVP-COO 397195 0 235410 0 8761 0 155095 0 57259 0 853720 0 0 0 AMIN M SEREHALI VP-CLINICAL & BUS. INFORMATICS 232233 0 22495 0 5191 0 11185 0 19886 0 290990 0 0 0 ANNE S LAVIGNE VP-ESCO 155859 0 244867 0 2422 0 73094 0 17787 0 494029 0 0 0 BRIAN J SAME MEDICAL DIRECTOR-MED POLICY&UM 286174 0 19118 0 6704 0 40038 0 18098 0 370132 0 0 0 JUDITH FELD MD MEDICAL DIRECTOR-PROV ENGT 259926 0 9356 0 4345 0 47604 0 23020 0 344251 0 0 0 RICHARD M ARGENTIERI VICE PRESIDENT-SALES 193621 0 111291 0 4843 0 21712 0 17993 0 349460 0 0 0 JUDITH ANN FELDMAN FORMER KEY EMPLOYEE 0 0 0 0 126123 0 0 0 0 0 126123 0 0 0 PART I, LINE 1A AT THE DISCRETION OF THE CEO, 14 EXECUTIVES (OFFICERS AND KEY EMPLOYEES) RECEIVE A DISCRETIONARY SPENDING ACCOUNT. THESE AMOUNTS ARE A PERCENTAGE OF BASE COMPENSATION AND ARE CAPPED AT SPECIFIC AMOUNTS. ANY REIMBURSEMENT WHICH IS NOT DEDUCTIBLE UNDER IRS REGULATIONS OR ANY UNCLAIMED AMOUNT AT THE END OF THE CALENDAR YEAR IS TREATED AS INCOME AND ADDED TO THE EXECUTIVE'S W-2. PART I, LINE 4A: THE FOLLOWING LISTED PERSONS FROM PART VII, SECTION A RECEIVED SEVERANCE PAYMENTS AS PART OF A SEPARATION AGREEMENT WITH INDEPENDENT HEALTH DURING 2016: PAMELA S. MENARD - $202,848. JUDITH ANN FELDMAN - $126,123 PART I, LINE 4B: ELIGIBLE EMPLOYEES PARTICIPATE IN VARIOUS NON-QUALIFIED DEFERRED COMPENSATION PLANS ORGANIZED UNDER CODE SECTION 457(F). ANY AMOUNT ULTIMATELY PAID UNDER THE PROGRAM TO THE EMPLOYEE IS REPORTED AS COMPENSATION ON FORM 990, SCHEDULE J, PART II, COLUMN B IN THE YEAR PAID. SUPPLEMENTAL NON-QUALIFIED PLAN PAYMENTS WERE MADE DURING THE YEAR TO THE FOLLOWING LISTED PERSONS IN PART VII: MARK I. JOHNSON - $637,334 JOHN MINEO, ESQ. - $250,571 SEE PART V SEE PART V 1207141 SEE PART V 0 SEE PART V SEE PART V 655036 SEE PART V 0 SEE PART V SEE PART V 671302 SEE PART V 0 SCH L, PART IV, BUSINESS TRANSACTIONS INVOLVING INTERESTED PERSONS: (A) NAME OF INTERESTED PERSON: ALDEN PHARMACY, INC.(B) RELATIONSHIP BETWEEN INTERESTED PERSON AND THE ORGANIZATION: GREATER THAN 35% CONTROLLED ENTITY BY JOHN RODGERS, CURRENT KEY EMPLOYEE(D) DESCRIPTION OF TRANSACTION: INDEPENDENT CONTRACTOR ARRANGEMENT, DELIVERY OF HEALTH CARESCH L, PART IV, BUSINESS TRANSACTIONS INVOLVING INTERESTED PERSONS:(A) NAME OF INTERESTED PERSON: NORTHTOWNS MEDICAL GROUP(B) RELATIONSHIP BETWEEN INTERESTED PERSON AND THE ORGANIZATION: GREATER THAN 35% CONTROLLED ENTITY BY EDWARD STEHLIK, FORMER BOARD MEMBER(D) DESCRIPTION OF TRANSACTION: INDEPENDENT CONTRACTOR ARRANGEMENT, DELIVERY OF HEALTH CARESCH L, PART IV, BUSINESS TRANSACTIONS INVOLVING INTERESTED PERSONS:(A) NAME OF INTERESTED PERSON: DONALD W. ROBINSON, MD (SOLE PRACTITIONER)(B) RELATIONSHIP BETWEEN INTERESTED PERSON AND THE ORGANIZATION: GREATER THAN 35% CONTROLLED ENTITY BY DONALD W. ROBINSON, MD, CURRENT BOARD MEMBER.(D) DESCRIPTION OF TRANSACTION: INDEPENDENT CONTRACTOR ARRANGEMENT, DELIVERY OF HEALTH CARE FORM 990, PART III, LINE 4A PROGRAM SERVICE ACCOMPLISHMENTS: HEADQUARTERED IN BUFFALO, INDEPENDENT HEALTH BEGAN OPERATIONS IN 1980 AND HAS CONSISTENTLY BEEN RATED AMONG THE TOP HEALTH PLANS IN THE COUNTRY FOR CUSTOMER SERVICE AND MEMBER SATISFACTION. INDEPENDENT HEALTH'S COMPREHENSIVE PORTFOLIO OF PROGRESSIVE PRODUCTS INCLUDE HMO, POS, PPO AND EPO PRODUCTS, MEDICARE AND MEDICAID PLANS, TRADITIONAL INDEMNITY INSURANCE, INDIVIDUAL AND SMALL GROUP EXCHANGE PRODUCTS, AND CONSUMER-DIRECTED PLANS, PLUS COVERAGE FOR SELF-FUNDED EMPLOYERS. INDEPENDENT HEALTH'S SUBSIDIARY COMPANIES INCLUDE PHARMACY BENEFIT DIMENSIONS, RELIANCE RX, DXID, NOVA HEALTHCARE ADMINISTRATORS, INC., AND EVOLVE PRACTICE PARTNERS. IHA OFFERS ITS MEMBERS HEALTH RISK MANAGEMENT TOOLS INCLUDING AN ONLINE HEALTH RISK ASSESSMENT AND THE USE OF A DATA WAREHOUSE TO ANALYZE AND PREDICT POTENTIAL RISK AND DEVELOP SOLUTIONS TO HELP CONTROL CURRENT AND PREVENT FUTURE PROBLEMS. PROGRAMS FOR COVERED EMPLOYEES, AS WELL AS FOR EMPLOYERS, HELP THEM MAKE GOOD HEALTH A PART OF THEIR CULTURE. IHA OFFERS A 24-HOUR MEDICAL HELP LINE WITH ACCESS TO A REGISTERED NURSE, CASE MANAGEMENT, DISEASE MANAGEMENT AND HEALTH COACHES. IHA ALSO ESTABLISHED AN ADVANCED PATIENT CENTERED MEDICAL HOME (PCMH) PILOT PROGRAM IN JANUARY 2009. THE PCMH PROGRAM INCLUDED 18 DIVERSE PRIMARY CARE PRACTICES ACROSS WNY, 130 PHYSICIANS AND NEARLY 50,000 IHA MEMBERS. THE PRACTICES WORKED TOWARD IMPROVED QUALITY OF CARE WITH EXPANDED ACCESS TO ALLOW SAME-DAY APPOINTMENTS AND AFTER-HOURS CARE; ENHANCED TECHNOLOGY TO INCLUDE ELECTRONIC MEDICAL RECORDS AND EMAILS WITH PATIENTS; AND A COMPREHENSIVE CARE TEAM FOR THOSE WITH OR AT RISK OF HAVING A CHRONIC CONDITION. ADMINISTRATIVE ASSISTANCE WAS ALSO PROVIDED TO HELP IMPLEMENT NEW OFFICE PROCEDURES. ANOTHER IMPORTANT ASPECT OF THE PCMH MODEL WAS THAT IT ALSO INCLUDED MANY OF THE FEDERAL HEALTH CARE REFORM EFFORTS, INCLUDING PREVENTION AND WELLNESS THROUGH COORDINATED CARE, EVIDENCED-BASED GUIDELINES TO GAUGE OUTCOMES AND REFORM OF PHYSICIAN PAYMENT TO IMPROVE QUALITY AND EFFICIENCY. IHA DEVOTED TIME AND FINANCIAL RESOURCES THAT ENABLED THE 130 PHYSICIANS IN THIS PROGRAM TO REDESIGN THEIR PRACTICES. IHA ALSO PROVIDED DETAILED MEMBER INFORMATION TO ENABLE OUR PHYSICIANS TO MANAGE CARE OPPORTUNITIES FOR IHA MEMBERS. AT THE END OF THE PILOT IN DECEMBER, 2011, THE 18 PRIMARY CARE PRACTICES INVOLVED IN THE PILOT PROGRAM ACHIEVED THE HIGHEST RECOGNITION BY THE NATIONAL COMMITTEE FOR QUALITY ASSURANCE (NCQA). IN 2012, INDEPENDENT HEALTH EVOLVED ITS SUCCESSFUL PATIENT-CENTERED MEDICAL HOME (PCMH) CARE MODEL FOR PRIMARY CARE INTO A MORE COMPREHENSIVE PROGRAM CALLED THE PRIMARY CONNECTION, WHICH OFFICIALLY BEGAN JULY 1, 2012. AN INNOVATIVE, PHYSICIAN-LED INITIATIVE, THE PRIMARY CONNECTION TAKES A COORDINATED APPROACH TO ENHANCE QUALITY, ACCESS AND AFFORDABILITY. USING PCMH PRINCIPLES AS THE FOUNDATION, THIS INNOVATIVE ALLIANCE PROMOTES BETTER CARE COORDINATION AND A COLLABORATIVE, SHARED RESPONSIBILITY AMONG PRIMARY CARE AND SPECIALTY PHYSICIANS, AS WELL AS HOSPITALS, HEALTH PLANS, MEMBERS AND OTHER KEY STAKEHOLDERS TO ACHIEVE THE GOALS OF THE QUADRUPLE AIM: BETTER HEALTH, BETTER CARE, LOWER COSTS AND PROVIDER VITALITY. HEALTH CARE REFORM INITIATIVES ENCOURAGE THIS TYPE OF CARE DELIVERY, AND INDEPENDENT HEALTH AND THESE PROGRESSIVE PRIMARY CARE PHYSICIAN PRACTICES HAVE BEEN AT THE FOREFRONT OF WHAT THE NATION WILL BE DOING. THE PRIMARY CONNECTION FOSTERS INTERDEPENDENCY AND INTENSE COLLABORATION AMONG THE PRACTICES TO CREATE AND IMPLEMENT SPECIFIC CARE COORDINATION PROGRAMS, SUCH AS HOSPITAL ALTERNATIVE PROGRAMS AND CARE TRANSITION PROGRAMS FROM HOSPITAL TO HOME. OTHER RESOURCES INCLUDE PHARMACISTS PROVIDING MEDICATION THERAPY MANAGEMENT, EMBEDDED BEHAVIORAL COUNSELORS WITHIN PRACTICES, AND CARE COORDINATION CONTRACTS BETWEEN PRIMARY AND SPECIALTY CARE PHYSICIANS. THE PRIMARY CONNECTION PRACTICES' CLINICAL AND OPERATIONAL PERFORMANCES ARE TRACKED FOR QUALITY IMPROVEMENT AND ADHERENCE TO THE TENETS OF THE QUADRUPLE AIM. THESE PRACTICES ARE REIMBURSED UNDER AN INNOVATIVE HYBRID REIMBURSEMENT METHODOLOGY THAT RETAINS ELEMENTS OF FEE-FOR-SERVICE PAYMENT, BUT INCLUDES A RISK-ADJUSTED POPULATION-BASED CARE COORDINATION FEE AND A SHARED SAVINGS COMPONENT. THE HYBRID PAYMENT SYSTEM ALLOWS PRIMARY CARE PRACTICES TO MORE FULLY UTILIZE ANCILLARY NURSING AND MID-LEVEL STAFF, RECOGNIZES THE PRACTICES' EFFORTS TO IMPLEMENT E-COMMUNICATION STRATEGIES, AND REWARDS EFFORTS TO WORK COOPERATIVELY AND EFFECTIVELY WITH HOSPITALS AND SPECIALTY PHYSICIANS TO REDUCE MEDICALLY UNNECESSARY SERVICES AND POTENTIALLY AVOIDABLE ADMISSIONS. THE PRIMARY CONNECTION INITIALLY INVOLVED 21 PRACTICES, THEIR 140 PHYSICIANS AND MORE THAN 54,000 PATIENTS, AND HAS SINCE GROWN TO 32 PRACTICES AND 189 PHYSICIANS, IMPACTING 121,000 INDEPENDENT HEALTH MEMBERS. THIS PROGRESSIVE ALLIANCE HAS LED TO IMPROVED CARE COORDINATION, AND REDUCING THE REDUNDANCIES AND INEFFICIENT CARE THAT CAUSE HEALTH CARE COSTS TO INCREASE UNNECESSARILY. A SAMPLE OF RESULTS FOLLOWS: - FROM 2013 TO 2016, THE PRIMARY CONNECTION PHYSICIANS DECREASED UNNECESSARY REFERRALS TO SPECIALIST PHYSICIANS BY 19 PERCENT. - THEY ALSO INCREASED REFERRALS TO HIGH-PERFORMING SPECIALISTS BY 7 PERCENT DURING THAT TIME. - THE PRIMARY CONNECTION PRACTICES DECREASED PRESCRIPTIONS TO COSTLY BRAND-NAME MEDICATIONS BY 23 PERCENT. - THE PRIMARY CONNECTION REDUCED THE AMOUNT OF POTENTIALLY PREVENTABLE HOSPITAL ADMISSIONS BY 17 PERCENT AND READMISSION RATES BY 25 PERCENT BY TREATING PATIENTS IN MORE APPROPRIATE CARE SETTINGS AT LOWER COSTS. - PRIMARY CONNECTION PATIENTS RECEIVED 10,000 MORE PREVENTIVE AND WELLNESS SERVICES THAN OTHER MEMBERS IN JUST ONE YEAR. OTHER MEMBERSHIP SERVICES INCLUDE PREVENTIVE CARE WITH ACTIVE PARTICIPATION BY COMMUNITY ORGANIZATIONS IN INITIATIVES SUCH AS THE P2 COLLABORATIVE OF WESTERN NEW YORK (P2), A NOT-FOR-PROFIT DEDICATED TO IMPROVING THE HEALTH OF PEOPLE IN WESTERN NEW YORK. IT DEPENDS ON UNPRECEDENTED COLLABORATION AMONG KEY STAKEHOLDERS AND THE SHARING OF CLINICAL INFORMATION, AS WELL AS THE ADOPTION OF HEALTH INFORMATION TECHNOLOGY AND ELECTRONIC MEDICAL RECORDS, THROUGH ORGANIZATIONS SUCH AS HEALTHELINK. THE IHA HEALTH COACH PROGRAM OFFERS A BROAD RANGE OF SERVICES, INCLUDING EDUCATION AND CARE COORDINATION, TO IMPROVE THE HEALTH OF IHA MEMBERS AND EMPLOYEES. HEALTH COACHES ARE LICENSED REGISTERED NURSES, DIETITIANS, RESPIRATORY THERAPISTS, SOCIAL WORKERS, AND OTHER CERTIFIED HEALTH PROFESSIONALS WHO ENCOURAGE SELF-MANAGEMENT AND EDUCATE MEMBERS ON LIVING A HEALTHY LIFE. THEY PROVIDE PERSONALIZED SERVICES TO HELP MEMBERS MAKE LASTING CHANGES TO ACHIEVE BETTER HEALTH AND WELL-BEING. EXAMPLES OF THEIR SUPPORT INCLUDE HELPING DEVELOP A DIET PLAN TO ASSIST WITH WEIGHT LOSS, ASSISTANCE WITH A SPECIFIC MEDICAL CONDITION OR COMPILING A LIST OF QUESTIONS FOR THE MEMBER TO ASK HIS/HER DOCTOR. OUR HEALTH COACHES AND DISEASE MANAGERS FREQUENTLY ENGAGE IN ON-SITE WORKPLACE WELLNESS ACTIVITIES, SUCH AS EMPLOYEE HEALTH FAIRS. THEY ALSO REGULARLY REACH OUT TO SUPPORT MEMBERS IDENTIFIED AS HAVING A CHRONIC DISEASE OR CARE OPPORTUNITY. IHA IS COMMITTED TO IMPROVING THE QUALITY, ACCESS AND AFFORDABILITY OF HEALTH CARE THROUGH MANY COMMUNITY OUTREACH PROGRAMS. INDEPENDENT HEALTH HAS A TEAM OF FOUR COMMUNITY HEALTH OUTREACH WORKERS (CHOWS) BASED IN THE COMMUNITY, WHO MAKE HOME VISITS TO MEDISOURCE MEMBERS IN NEED TO BUILD RELATIONSHIPS IN TARGETED NEIGHBORHOODS TO PROMOTE HEALTH AND WELLNESS BEHAVIORS AND BELIEFS. CHOWS SPECIFICALLY WORK WITH MEMBERS WHO INAPPROPRIATELY UTILIZE SERVICES. THEY FOCUS ON GETTING MEMBERS IN NEED OF CARE TO A VISIT, SCHEDULING APPOINTMENTS, COORDINATING TRANSPORTATION AND BRIDGING LANGUAGE BARRIERS. THESE DEDICATED WORKERS, WHO ARE ALL CERTIFIED DIABETES AND CHRONIC DISEASE PEER EDUCATORS, PROVIDE CARE COORDINATION SERVICES TO MEMBERS IN NEED OF PREVENTIVE SERVICES, SCREENINGS OR A PRIMARY CARE PROVIDER. CHOWS COLLABORATE WITH IHA'S CASE MANAGEMENT DEPARTMENT TO BRING MEMBERS HOPE AND AN UNDERSTANDING OF COMPLEX ISSUES. SOME OF THE SERVICES THE CHOWS PROVIDE INCLUDE: - TEACHING DIABETES AND CHRONIC DISEASE SELF-MANAGEMENT GROUP CLASSES IN COMMUNITY CENTERS; - ONE-ON-ONE DIABETES EDUCATION TO MEMBERS WHO ARE UNABLE TO LEAVE THEIR HOMES; - HELP RUN A GRANT-FUNDED PROGRAM CALLED "BABY AND ME, TOBACCO FREE," A SMOKING CESSATION PROGRAM FOR PREGNANT WOMEN; - PROVIDING NEW MEMBER ORIENTATION TO HELP MEMBERS UNDERSTAND HOW TO USE THEIR BENEFITS, ALIGN THEM WITH A PRIMARY CARE PHYSICIAN, CLOSE GAPS IN CARE, AND APPROPRIATE EMERGENCY ROOM USE. IHA'S MEDICARE FAMILY CHOICE PLAN IS A MEDICARE ADVANTAGE SPECIAL NEEDS PLAN OFFERED IN NURSING FACILITIES IN WESTERN NEW YORK. FAMILY CHOICE OF NEW YORK IS A CARE MANAGEMENT COMPANY THAT WORKS IN PARTNERSHIP WITH AREA NURSING HOMES, PHYSICIANS AND HOSPITALS TO BRING ADDITIONAL CARE - INCLUDING ENHANCED HEALTH CARE AND SOCIAL SERVICES - TO THE PATIENTS WHO NEED SPECIALIZED MEDICAL AND NURSE MANAGEMENT. THE PROGRAM ACCOMPLISHES THIS BY ASSIGNING A NURSE PRACTITIONE YMCA BUFFALO NIAGARA AND IHA ALSO TEAMED UP WITH LOCAL PARKS THIS SUMMER TO PROMOTE THE VALUE OF A HEALTHY LIFESTYLE AND ENCOURAGE WESTERN NEW YORK RESIDENTS TO PARTICIPATE IN PHYSICAL ACTIVITY. BETWEEN JUNE AND AUGUST 2016 THE WNY COMMUNITY WAS ABLE TO PARTICIPATE IN FREE 60-MINUTE FITNESS CLASSES WITH YMCA-CERTIFIED INSTRUCTORS. IN 2016 THE PROGRAM EXPANDED TO 18 AREA PARKS AND INCLUDED 30 SESSIONS WEEKLY, COMPARED TO 2015 WHICH HAD 16 AREA PARKS AND 25 WEEKLY CLASSES. IN AN EFFORT TO FURTHER PROMOTE HEALTHIER LIFESTYLES IN OUR COMMUNITY, IHA JOINED FORCES WITH SNYDER CORPORATION AND FITNESS RIDGE WORLDWIDE TO BRING THE BIGGEST LOSER RESORT NIAGARA TO WNY AT THE BEAVER HOLLOW CONFERENCE CENTER IN WYOMING COUNTY. THE RESORT FOCUSES ON EXERCISE, HEALTH NUTRITION AND EDUCATION. THE PROGRAM ENGAGES PARTICIPANTS IN THEIR OWN HEALTH AND GIVES THEM THE TOOLS THEY NEED TO ADOPT LIFESTYLE CHANGES TO STAY HEALTHY AND REDUCE THEIR RISK OF CHRONIC DISEASE LIKE DIABETES AND HEART DISEASE. IHA IS EXPECTED TO PROVIDE $3 MILLION TOWARDS THIS INITIATIVE IHA HAS ALSO JOINED TOGETHER WITH THE BUFFALO MUSEUM OF SCIENCE TO OPEN THE FIRST OF EIGHT PERMANENT SCIENCE STUDIOS AT THE MUSEUM. CALLED "EXPLORE YOU PRESENTED BY INDEPENDENT HEALTH," THE THEMED STUDIO ALLOWS VISITORS TO EXPLORE ANATOMY AND LEARN ABOUT IMPORTANT CHOICES THEY CAN MAKE TO IMPROVE AND MAINTAIN THEIR HEALTH. THE EXHIBIT OPENED IN MARCH OF 2012 AND WILL BE OPEN FOR 10 YEARS. IN CONNECTION TO THE EXHIBIT, IN FEBRUARY 2013, 2014, 2015 AND 2016, IHA HOSTED AN "EXPLORE TOGETHER" FREE EVENT FOR PARENTS AND CHILDREN TO LEARN ABOUT HEALTH TOPICS THROUGH INTERACTIVE ACTIVITIES AND PRESENTATIONS. IHA IS ALSO PROUD TO PARTNER WITH LARKIN SQUARE TO SPONSOR MANY COMMUNITY EVENTS AND HELP BRING HEALTHY INITIATIVES TO THIS NEWLY REVITALIZED PUBLIC GATHERING SPACE ALL YEAR LONG. IHA COLLABORATED WITH FOOD TRUCKS PARTICIPATING IN LARKIN SQUARE'S FOOD TRUCK TUESDAYS EVENTS FROM MAY THROUGH OCTOBER 2016 TO HELP THEM OFFER HEALTHY MENU ITEMS THAT ARE CONSIDERED TO BE LOWER IN FAT, SATURATED FAT, CHOLESTEROL AND SODIUM. IHA AND THE BUFFALO BILLS ARE WORKING TOGETHER TO IMPROVE THE HEALTH AND WELL-BEING OF THE WESTERN NEW YORK COMMUNITY THROUGH A VARIETY OF INITIATIVES, INCLUDING THE INDEPENDENT HEALTH AND BUFFALO BILLS HEALTH & WELLNESS CHALLENGE, A COMMUNITY-WIDE FITNESS AND NUTRITION PROGRAM TO ENCOURAGE HEALTHY LIVING. OVERALL, IN 2016 MORE THAN 15,700 INDIVIDUALS IN THE REGION PARTICIPATED IN THE SPRING AND FALL CHALLENGE, WHICH RAN FROM APRIL 18 MAY 29 AND OCTOBER 3 THROUGH NOVEMBER 13, 2016. THE BUFFALO BILLS AND IHA ALSO WORKED TOGETHER TO ENCOURAGE PHYSICAL ACTIVITY AND HEALTHY EATING AMONG OUR COMMUNITY'S YOUTH IN SCHOOL AND AT HOME THROUGH THE INDEPENDENT HEALTH FOUNDATION'S FITNESS FOR KIDS CHALLENGE AND THE BUFFALO BILLS PLAY 60 CHALLENGE. IN ADDITION, IHA SPONSORS THE HILLSIDE WORK-SCHOLARSHIP CONNECTION TO HELP ENSURE OUR COMMUNITY'S YOUTH HAVE THE OPPORTUNITY TO REACH THEIR FULL POTENTIAL. BY ENGAGING OUR YOUTH THROUGH EVIDENCE-BASED PROGRAMS SUCH AS HILLSIDE'S, IHA CAN MAKE A SUSTAINABLE IMPACT IN THE COMMUNITY'S FUTURE. AS AN EMPLOYMENT PARTNER, IHA NOT ONLY RECOGNIZES THE IMPORTANCE OF HELPING STUDENTS STAY IN SCHOOL AND ACHIEVE ACADEMIC SUCCESS, BUT GRADUATE WITH THE SKILLS AND CONFIDENCE THEY NEED FOR LIFELONG SUCCESS. IHA FURTHER COLLABORATES WITH THE WESTERN NEW YORK COMMUNITY IN ITS AFFILIATION WITH THE HEALTH SCIENCES CHARTER SCHOOL THAT WAS DEVELOPED TO PROVIDE OPPORTUNITIES FOR HIGH SCHOOL STUDENTS FOR CAREERS IN THE MEDICAL FIELD. WNYHEALTHENET FURTHERS IHA'S COMMITMENT TO REDUCING THE COST OF AND IMPROVING THE QUALITY OF HEALTH CARE IN THE WESTERN NEW YORK COMMUNITY. WNYHEALTHENET OPTIMIZES THE DELIVERY OF PATIENT INFORMATION THAT SPEEDS THE DELIVERY AND ACCURACY OF VITAL ELIGIBILITY, CLAIM STATUS, REFERRAL AND AUTHORIZATION INFORMATION TO THE PROVIDER COMMUNITY, AND WESTERN NEW YORK'S CLINICAL INFORMATION EXCHANGE ("HEALTHELINK") - A 501(C) (3) ORGANIZATION THAT OPERATES AN INFORMATION EXCHANGE TO FACILITATE ACCESS TO CLINICAL INFORMATION AMONG HEALTH CARE PROVIDERS AND HEALTH INSURERS. HEALTHELINK IS PART OF THE STATEWIDE HEALTH INFORMATION NETWORK OF NEW YORK (SHIN-NY), A TECHNOLOGY FRAMEWORK SPANNING THE ENTIRE STATE THAT ALLOWS HEALTH CARE PROVIDERS EFFICIENT ACCESS TO THEIR PATIENTS' DATA. HEALTHELINK HAS BEEN RECOGNIZED FOR ITS WORK IN BUILDING A REGIONAL HEALTH INFORMATION TECHNOLOGY INFRASTRUCTURE AND FOR TESTING INNOVATIVE APPROACHES BY BOTH STATE AND FEDERAL AGENCIES, INCLUDING BEING NAMED A BEACON COMMUNITY, AN EFFORT FUNDED BY THE OFFICE OF THE NATIONAL COORDINATOR FOR HEALTH INFORMATION TECHNOLOGY. AS OF JUNE 2016, APPROXIMATELY 84 PERCENT OF WESTERN NEW YORK PRACTICES PARTICIPATE WITH HEALTHELINK, 89 DATA SOURCES ARE CONNECTED, MORE THAN 200 MILLION RESULTS (LAB, RADIOLOGY AND TRANSCRIBED REPORTS), AND MORE THAN 960,000 COMMUNITY-WIDE CONSENTS HAVE BEEN SIGNED BY PATIENTS AUTHORIZING TREATING PHYSICIANS TO ACCESS THEIR ELECTRONIC MEDICAL RECORDS THROUGH HEALTHELINK. IHA COORDINATES THE DELIVERY OF HEALTH CARE SERVICES FOR APPROXIMATELY 171,353 MEMBERS OF IHA'S COMMERCIAL PRODUCTS UNDER ARTICLE 44 OF THE NEW YORK PUBLIC HEALTH LAW, MEDICAID MANAGED CARE PRODUCTS AS ADMINISTERED BY THE STATE OF NEW YORK, AND MEDICARE MANAGED CARE PRODUCTS AS ADMINISTERED BY CMS AS OF JUNE 2016. INDEPENDENT HEALTH PROVIDES HEALTH BENEFITS AND SERVICES TO INDIVIDUALS IN WESTERN NEW YORK AND THROUGHOUT THE COUNTRY. THE COMPANY HAS CONSISTENTLY BEEN RATED AMONG THE TOP HEALTH PLANS IN THE COUNTRY FOR CUSTOMER SERVICE AND MEMBER SATISFACTION. INDEPENDENT HEALTH HAS RECEIVED THE NATIONAL COMMITTEE FOR QUALITY ASSURANCE'S (NCQA) HIGHEST ACCREDITATION STATUS OF "EXCELLENT" FOR ITS COMMERCIAL HMO/POS AND MEDICARE LINES OF BUSINESS FOR 18 CONSECUTIVE YEARS. "EXCELLENT" ACCREDITATION IS GRANTED ONLY TO THOSE HEALTH PLANS THAT EXHIBIT LEVELS OF SERVICE AND CLINICAL QUALITY THAT MEET OR EXCEED NCQA'S RIGOROUS REQUIREMENTS FOR CONSUMER PROTECTION AND QUALITY IMPROVEMENT. INDEPENDENT HEALTH WAS ALSO RANKED AS THE TOP HEALTH INSURANCE PLAN IN THE NEW YORK/NEW JERSEY REGION, ACCORDING TO J.D. POWER'S 2010, 2011, 2012, 2013, AND 2016 U.S. MEMBER HEALTH INSURANCE PLAN STUDIES, AND RANKED SECOND IN THE NEW YORK/NEW JERSEY REGION IN THE J.D. POWER 2014 AND 2015 U.S. MEMBER HEALTH PLAN STUDIES. IN ADDITION, INDEPENDENT HEALTH WAS RANKED AMONG THE HIGHEST-RANKED HEALTH PLANS IN THE NATION FOR ALL LINES OF BUSINESS - COMMERCIAL, MEDICARE AND MEDICAID - ACCORDING TO THE NATIONAL COMMITTEE FOR QUALITY ASSURANCE (NCQA) IN ITS HEALTH INSURANCE PLAN RANKINGS 2016-2017. THE RANKINGS ARE BASED ON CLINICAL QUALITY, MEMBER SATISFACTION AND NCQA ACCREDITATION STANDARDS. LONG BEFORE THE ENACTMENT OF THE AFFORDABLE CARE ACT (ACA), IHA WAS TAKING STEPS TO TRANSFORM HEALTH CARE IN WESTERN NEW YORK, PROVIDING OUR MEMBERS WITH MANY OF THE QUALITY COVERAGE AND MARKET REFORM PROVISIONS CONTAINED IN THE LAW ($0 COPAY FOR PREVENTIVE SERVICES, AGE-EXTENSION RIDERS UP TO AGE 26, NO LIFETIME LIMITS ON MEMBERS' COVERAGE, AND COMPREHENSIVE INTERNAL AND EXTERNAL REVIEW PROCESSES TO ENSURE OUR MEMBERS RECEIVED NEEDED HEALTH CARE SERVICES). IHA CONTINUES TO LOOK FOR OPPORTUNITIES TO IMPROVE THE QUALITY AND AFFORDABILITY OF HEALTH CARE FOR OUR REGION, AS ACHIEVING HEALTH CARE REFORM WILL REQUIRE COMMUNITY OWNERSHIP, WIDE-RANGING PARTNERSHIPS AND RENEWED COLLABORATION AMONG DIVERSE STAKEHOLDERS. BY FOCUSING ON COLLABORATION AND HEALTH ENGAGEMENT, IHA CAN HELP BUILD A CULTURE OF HEALTH IN OUR REGION. AS A COMMUNITY, WE MUST CONTINUE TO DEVELOP PROGRAMS THAT ENHANCE FITNESS, FOSTER PREVENTION AND ENGAGE PEOPLE IN BETTER HEALTH. THESE EFFORTS WILL HELP PEOPLE MAKE POSITIVE LIFESTYLE CHANGES AND REDUCE CHRONIC DISEASE - ESSENTIAL ELEMENTS FOR LOWERING HEALTH CARE COSTS AND IMPROVING THE OVERALL HEALTH STATUS OF OUR COMMUNITY. IHA'S COLLABORATIVE EFFORTS ARE HAVING AN IMPACT. THE COMMONWEALTH FUND REPORT RANKED BUFFALO 54TH BEST AMONG 306 MEDICARE SERVICE AREAS FOR QUALITY, ACCESSIBILITY AND AFFORDABILITY OF CARE. IHA WAS IN THE TOP 10 PERCENT FOR ACCESS AND AFFORDABILITY AND IN THE TOP QUARTILE FOR PREVENTION, TREATMENT AND OVERALL PERFORMANCE. THIS RANKING IS EVEN MORE IMPRESSIVE GIVEN THAT BUFFALO IS CITED AS THE THIRD-POOREST CITY IN THE U.S. AND THE STUDY REVEALED A STRONG CORRELATION BETWEEN POVERTY AND A POOR SCORE AMONG THE RANKED AREAS. ADDITIONALLY, THE COLLABORATIVE WORK UNDER WAY IN WESTERN NEW YORK WAS RECOGNIZED IN A RECENTLY RELEASED CASE STUDY ON REGIONAL HEALTH CARE IMPROVEMENT BY THE COMMONWEALTH FUND, BUFFALO AND WESTERN NEW YORK: COLLABORATING TO IMPROVE HEALTH SYSTEM PERFORMANCE BY LEVERAGING SOCIAL CAPITAL, WHICH TAKES A CLOSER LOOK AT THE REASONS FOR OUR REGION'S SUCCESS. THESE REPORTS EMPHASIZE THE NEED FOR LOCAL SOLUTIONS AND WIDESPREAD ENGAGEMENT AND COLLABORATION TO ACHIEVE THE QUADRUPLE AIM OF BETTER HEALTH, BETTER CARE, LOWER COSTS AND PROVIDER VITALITY. FORM 990, PART VI, SECTION A, LINE 2 MICHAEL W. CROPP, MARK I. JOHNSON, JOHN R. RODGERS, THOMAS J. FOELS, JOHN MINEO, ESQ., AND MICHAEL J. FASO HAVE A BUSINESS RELATIONSHIP (BOARD MEMBERS OF A RELATED TAXABLE ENTITY). SIDNEY N. WEISS, STUART H. ANGERT, MICHAEL W. CROPP, MOISES SUDIT, NORA B. SULLIVAN, MARK I. JOHNSON, AND JOHN MINEO, ESQ. HAVE A BUSINESS RELATIONSHIP (BOARD MEMBERS OF A RELATED TAXABLE ENTITY). THOMAS J. FOELS AND MICHAEL HEIMERL HAVE A BUSINESS RELATIONSHIP (PRIVATE ENTERPRISE). FORM 990, PART VI, SECTION B, LINE 11B FORM 990 WAS REVIEWED WITH THE CHAIRMANS OF THE FINANCE AND AUDIT COMMITTEE AND CERTAIN MEMBERS OF THE EXECUTIVE COMMITTEE OF IHA'S BOARD OF DIRECTORS. THE FINAL FORM 990 WAS DISTRIBUTED TO THE BOARD OF DIRECTORS AT A MEETING PRIOR TO THE FILING OF THIS RETURN. FORM 990, PART VI, SECTION B, LINE 12C INDEPENDENT HEALTH ASSOCIATION, INC.'S (IHA) CONFLICT OF INTEREST REPORTING POLICY ENCOMPASSES ALL CURRENT IHA OFFICERS AND EMPLOYEES (INCLUDING KEY EMPLOYEES) OF THE ORGANIZATION. EMPLOYEES ARE REQUIRED AS PART OF THEIR EMPLOYMENT WITH IHA TO IMMEDIATELY REPORT CONFLICTS OF INTEREST THAT THEY ARE PARTY TO OR THAT THEY OBSERVED, TO A MANAGEMENT OR INDEPENDENT HEALTH'S CHIEF COMPLIANCE OFFICER FOR REVIEW BY THE CONFLICT OF INTEREST COMMITTEE OF INDEPENDENT HEALTH. CONFLICTS ARE ALSO IDENTIFIED ANNUALLY WHEN THE SIGNED EMPLOYEE ATTESTATIONS, CONFIDENTIAL QUESTIONNAIRES & PLEDGE OF CONFIDENTIALITY AND CONTINUING DISCLOSURE FORM (FOR KEY EMPLOYEES, OFFICERS, DIRECTORS AND MEMBERS OF THE BOARD) ARE RECEIVED. IF A CONFLICT OF INTEREST IS IDENTIFIED, THE INDIVIDUAL IS PROHIBITED FROM PARTICIPATING IN THE DELIBERATIONS OR DECISIONS RELATED TO THIS TRANSACTION. THE RESOLUTION OF THE CONFLICT REVIEW WILL BE DOCUMENTED IN MEETING MINUTES MAINTAINED BY THE CONFLICT OF INTEREST COMMITTEE. FORM 990, PART VI, SECTION B, LINE 15 THE GOVERNING BOARD OF DIRECTORS OF INDEPENDENT HEALTH ASSOCIATION, INC. (IHA) APPOINTED A GROUP OF BOARD MEMBERS TO ACT AS THE COMPENSATION COMMITTEE. COMPENSATION OF THE CEO IS SUBJECT TO REVIEW AND APPROVAL BY THE COMPENSATION COMMITTEE AND THE BOD ANNUALLY. ADDITIONALLY, THE RECOMMENDATIONS OF THE CEO PERTAINING TO THE COMPENSATION OF HIS/HER DIRECT REPORTS ARE SUBJECT TO REVIEW AND ADVISEMENT BY THE COMPENSATION COMMITTEE. TO DETERMINE EXECUTIVE COMPENSATION AND INCENTIVE ELIGIBILITY OF THE CEO AND HIS/HER DIRECT REPORTS, THE COMPENSATION COMMITTEE ENGAGES AN INDEPENDENT COMPENSATION CONSULTANT TO REVIEW THE RECOMMENDATIONS AND ANY COMPARABLE DATA (COMPENSATION OF SIMILARLY QUALIFIED PERSONS IN FUNCTIONALLY COMPARABLE POSITIONS AT SIMILARLY SIZED ORGANIZATIONS). COMPARABILITY DATA MAY BE OBTAINED VIA THE FORM 990 OF OTHER ORGANIZATIONS AND/OR COMPENSATION SURVEYS OR STUDIES. THE COMPENSATION COMMITTEE, IN DELIBERATIONS WITH THE INDEPENDENT CONSULTANT, DETERMINES THE COMPENSATION AND INCENTIVE FOR THE CEO. THE COMPENSATION COMMITTEE WILL DOCUMENT THE DELIBERATIONS AND DECISIONS REGARDING THE COMPENSATION ARRANGEMENTS. THE BOD WILL THEN RATIFY ALL DECISIONS OF THE COMPENSATION COMMITTEE AT ITS REGULARLY SCHEDULED BOARD MEETING. IHA'S EXECUTIVE COMPENSATION POLICY/PROCESS IS AN ANNUAL PROCESS (LAST PERFORMED IN 2016) AND WAS USED TO ESTABLISH COMPENSATION FOR THE FOLLOWING POSITIONS: EXECUTIVE VICE PRESIDENT - CHIEF FINANCIAL OFFICER; EXECUTIVE VICE PRESIDENT - CHIEF ENGAGEMENT & SERVICING OFFICER; EXECUTIVE VICE PRESIDENT - CHIEF OPERATING OFFICER; EXECUTIVE VICE PRESIDENT - CHIEF MEDICAL OFFICER; EXECUTIVE VICE PRESIDENT - GENERAL COUNSEL, EXECUTIVE VICE PRESIDENT - CHIEF HR OFFICER; SVP - NETWORK & PERFORMANCE MANAGEMENT; AND VICE PRESIDENT - CHIEF AUDIT EXECUTIVE. THE CEO EXCLUDES HIMSELF/HERSELF FROM DELIBERATIONS WHEN DISCUSSING HIS/HER COMPENSATION. FORM 990, PART VI, SECTION C, LINE 19 UPON REQUEST, THE ORGANIZATION WILL MAKE AVAILABLE: A COPY OF ITS 990, ITS AUDITED FINANCIAL STATEMENTS, AND ANY OTHER DOCUMENTS AS REQUIRED. FORM 990, PART VII CONTACT ADDRESSES FOR OFFICERS, DIRECTORS, ETC JUDITH ANN FELDMAN - 8421 LAKEWOOD CT., EAST AMHERST, NY 14051. 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