2017-11-07T10:16:56-06:00 2016-12-31 KPMG LLP 1676 International Drive Ste 1200 McLean VA 22102 990 2016-01-01 232379751 Health Partners Plans Inc % C ERIC HUSS HEAL 2159914180 901 Market Street Suite 500 Philadelphia PA 19107 C ERIC HUSS EVP Finance and Admi 2159914180 2017-11-03 true JG WHITE P01498698 7032868000 2017-11-06 167.68.102.5 54028020173115000003 2017-11-07 P 3E895241A54B985E72EC2743C754C5778BD37633 B017B71C9A801BBBFC774EC5B9FCE5B07033AB53 2016 2021-01-29 14:40:06Z William George 901 Market Street500 Philadelphia PA 19107 2056916117 false X www.healthpartnersplans.com X 1987 PA Health Partners is a licensed health maintenance organization (HMO) committed to building a healthier community in Southeastern Pennsylvania. 9 9 1036 0 0 0 0 0 1536780848 1986234774 3012040 3001492 0 0 1539792888 1989236266 0 0 0 0 80026786 95708405 0 0 0 1459766102 1866209486 1539792888 1961917891 27318375 476023567 624496294 384747724 504218964 91275843 120277330 X SEE SCHEDULE O false false 1176979158 1681218956 The Company provides for the provision of physical and certain behavioral health (primarily behavioral-related pharmaceutical coverage) Medicaid (MA) Program benefits to enrolled MA recipients residing in Philadelphia and four surrounding counties - Bucks, Chester, Delaware, and Montgomery - pursuant to an agreement with the Department of Public Welfare of the Commonwealth of Pennsylvania (DHS) (the HealthChoices Agreement). In addition, the Company is responsible for covering all mandated behavioral health pharmaceuticals to members enrolled as prescribed. 247271323 286776954 The Company provides comprehensive (physical and behavioral) health insurance through its Medicare Advantage program and products through a contract with the Centers for Medicare & Medicaid Services (CMS). The Company's program, Health Partners Medicare, which commenced in 2014, provides for the provision of physical and behavioral health. The Company offers several products and program benefits to enrolled Medicare members residing in Philadelphia County pursuant to its agreement with CMS. 15661302 18238865 The Company also provides comprehensive (physical and behavioral) health insurance through the Commonwealth of Pennsylvania's Children's Health Insurance Program (CHIP). The Company's CHIP program, KidzPartners, provides for the provision of physical and behavioral health to uninsured children and teens up to age 19 who are eligible through CHIP. The Company provides program benefits to enrolled CHIP recipients residing in Philadelphia, Bucks, Delaware, Montgomery and Chester counties pursuant to an agreement with the Department of Insurance of the Commonwealth of Pennsylvania (PID). 1439911783 false false false false false false false false false true false false false true false true false false false false false false false false false false false false true false false false false false false false false false false false false true false false false true 2439 0 true 1036 true false false false false false false X 9 9 false false false false true true false true true false false true true true true true true true true false X C ERIC HUSS 2159914027 901 MARKET STREET SUITE 500 Philadelphia PA 19107 X Jeffrey Bross Director (End 7/16) 4.0 0.0 X 0 0 0 Dennis Cook Director (End 7/16) 4.0 0.0 X 9000 0 0 Andrew DeVoe Director (End 3/16) 4.0 0.0 X 0 0 0 Verdi J DiSesa MD MBA Director 4.0 0.0 X 0 0 0 Cynthia Figueroa Director 4.0 0.0 X 10000 0 0 Barry R Freedman Chair 4.0 0.0 X 0 0 0 Richard Imbimbo Secretary and Treasurer 4.0 0.0 X 0 0 0 Loree D Jones Vice Chair 4.0 0.0 X 10000 0 0 Robert H Lux Director 4.0 0.0 X 0 0 0 SANDRA GOMBERG DIRECTOR 4.0 0.0 X 0 0 0 GEORGE RIZZUTO DIRECTOR 4.0 0.0 X 0 0 0 Clarence Armbrister DIRECTOR 4.0 0.0 X 500 0 0 WILLIAM S GEORGE President & CEO 40.0 0.0 X 1019940 0 112198 JOHN J SEHI SVP Finance & CFO 40.0 0.0 X 431977 0 56027 STEVEN SZEBENYI MD END 316 CMO 40.0 0.0 X 634626 0 17905 DENISE CROCE RN EXEC VP CLIN & PROV MGMT 40.0 0.0 X 337453 0 46557 LISA GETZFRID END 1016 SVP OPERATIONS & COO 40.0 0.0 X 563794 0 27836 KAREN ARMSTRONG Treasurer 40.0 0.0 X 169545 0 19493 JOSEPH T BRAND CHIEF INFORMATION OFFICER 40.0 0.0 X 382975 0 33012 DONATO DADDARIO SVP Pharmacy 40.0 0.0 X 197666 0 23405 ANDREA C D'ANGELO END 516 VP Medical MANAGEMENT 40.0 0.0 X 217212 0 16141 LOVELL T HARMON END 516 SVP BUSINESS DEVELOPMENT 40.0 0.0 X 475684 0 22814 REBECCA A KOHL END 716 VP Network Management 40.0 0.0 X 222475 0 14688 EDMUND L LAFER Md Medical Director 40.0 0.0 X 250248 0 26079 VICKI L SESSOMS SVP Resource Mgmt & Compliance 40.0 0.0 X 420304 0 48830 CAROL A SMOLIJ END 316 VP and Chief of Staff HCM 40.0 0.0 X 211097 0 11121 KATHLEEN F THEVENY VP Operations 40.0 0.0 X 209972 0 23114 PAUL TRAFICANTI MD Medical Director 40.0 0.0 X 154447 0 21640 RAMESH J VANGALA VP Pharmacy Services 40.0 0.0 X 209979 0 16756 TAL ZAROM END 516 VP Medicare Stars Program 40.0 0.0 X 196851 0 8810 REETIKA KUMAR VP CHIEF CLINICAL OFFICER 40.0 0.0 X 295920 0 18658 MATTHEW ZIMMERMAN VP PHARM PART D & CLIN PROGRAM 40.0 0.0 X 169330 0 38546 MERLEEN HARRIS-WILLIAMS SENIOR MEDICAL DIRECTOR 40.0 0.0 X 294318 0 33291 JOHNNA W BAKER VP LEGAL AFFAIRS/GEN COUNSEL 40.0 0.0 X 282565 0 37761 THOMAS M MONTANARO VP Strategic Plan & Initiative 40.0 0.0 X 236574 0 35366 ANJE VAN BERCKELAER MEDICAL DIRECTOR 40.0 0.0 X 222332 0 24471 CAROL POTTS VP HEALTHCARE ECONOMICS 40.0 0.0 X 231139 0 17224 ELIZABETH STRATTON END 616 DIRECTOR PROJECT MANAGEMENT 40.0 0.0 X 219069 0 12667 ELAINE MARKEZIN FORMER SVP OPERATIONS 0.0 0.0 X 114922 0 0 8401914 0 764410 27 true true false Ritter Insurance Marketing 2600 Commerce Drive HARRISBURG PA 17110 Medicare Ins. Broker 3398722 Medsolutions 730 Cool Springs Blvd Suite 800 FRANKLIN TN 37067 Care Management 2737338 OptumHealth Care Solutions 6300 Oslon Memorial Highway GOLDEN VALLEY MN 55427 Care Management 2104759 INSPIRIS SERVICES COMPANY 1009 WINDCROSS COURT SUITE 101 FRANKLIN TN 37067 CARE MANAGEMENT 2958080 CHANGE HEALTHCARE SOLUTIONS LLC PO BOX 572490 MURRAY UT 84157 CLAIMS CLEARINGHOUSE 1362194 51 0 MEDICAID 524114 1374544602 1374544602 MEDICARE 524114 286776954 286776954 CHIP 524114 17273548 17273548 MEDICAID & CHIP PREMIUM NON-RISK 524114 307639670 307639670 1986234774 2528854 2528854 0 0 0 0 0 68152489 67679851 472638 472638 472638 0 0 0 0 0 0 0 0 0 0 1989236266 1986234774 3001492 0 0 0 0 7702732 7702732 114922 114922 69828875 69828875 4176773 4176773 7883619 7883619 6001484 6001484 0 1138102 1138102 614945 614945 150566 150566 0 516672 516672 6123344 6123344 2298882 2298882 5920537 5920537 10822532 10822532 0 4493767 4493767 209123 209123 0 215230 215230 0 0 4242614 4242614 1012276 1012276 MEDICAL SERVICES 1439911783 1439911783 DHS PASS THROUGHS 307639670 307639670 RISK CORRIDOR 65589666 65589666 MEDICARE SELLING EXPENSE 3611472 3611472 11698305 11698305 1961917891 1439911783 522006108 0 2188217 2600965 180644911 484681645 0 0 186342488 20587905 0 0 0 0 0 0 0 0 1664707 2220676 47966240 34533026 14048316 13433214 91134928 100971889 0 0 0 0 0 0 0 0 476023567 624496294 361731698 464264351 0 0 1802699 1164460 0 0 0 0 0 0 0 0 0 0 21213327 38790153 384747724 504218964 X 0 0 8591883 11082311 82683960 109195019 91275843 120277330 476023567 624496294 X 27318375 -807317 2490429 X false true X true true true 7072030 2092815 4979215 4480460 1748995 2731465 36413750 30691216 5722534 13433214 0 DUE TO AFFILIATES 32499829 LEASE INCENTIVE OBLIGATION 535357 DEFERRED RENT LIABILITY 5754967 38790153 1919170295 1919170295 516672 69549299 70065971 1989236266 1891851920 1891851920 516672 69549299 70065971 1961917891 Schedule D, Part XI, Line 4b STOP LOSS PREMIUM $ 3,679,913 RISK CORRIDOR $ 65,589,666 OTHER FEES AND INTEREST EXPENSE $ 279,720 ----------- TOTAL $ 69,549,299 Schedule D, Part XII, Line 4b STOP LOSS PREMIUM $ 3,679,913 RISK CORRIDOR $ 65,589,666 OTHER FEES AND INTEREST EXPENSE $ 279,720 ----------- TOTAL $ 69,549,299 X X X X true true false false false false false false false KAREN ARMSTRONG Treasurer 146865 0 21834 0 846 0 12068 0 7425 0 189038 0 0 0 JOHNNA W BAKER VP LEGAL AFFAIRS/GEN COUNSEL 249158 0 32303 0 1104 0 17809 0 19952 0 320326 0 0 0 JOSEPH T BRAND CHIEF INFORMATION OFFICER 297654 0 84079 0 1242 0 28057 0 4955 0 415987 0 0 0 DONATO DADDARIO SVP Pharmacy 132997 0 60922 0 3747 0 14611 0 8794 0 221071 0 0 0 ANDREA C D'ANGELO END 516 VP Medical MANAGEMENT 115882 0 22022 0 79308 0 8223 0 7918 0 233353 0 0 0 WILLIAM S GEORGE President & CEO 610176 0 335313 0 74451 0 81871 0 30327 0 1132138 0 0 0 LOVELL T HARMON END 516 SVP BUSINESS DEVELOPMENT 144809 0 88747 0 242128 0 14508 0 8306 0 498498 0 0 0 REBECCA A KOHL END 716 VP Network Management 169764 0 22708 0 30003 0 5146 0 9542 0 237163 0 0 0 EDMUND L LAFER Md Medical Director 220458 0 27726 0 2064 0 18000 0 8079 0 276327 0 0 0 ELAINE MARKEZIN FORMER SVP OPERATIONS 0 0 39672 0 75250 0 0 0 0 0 114922 0 0 0 THOMAS M MONTANARO VP Strategic Plan & Initiative 185282 0 33499 0 17793 0 15314 0 20052 0 271940 0 0 0 JOHN J SEHI SVP Finance & CFO 300899 0 107671 0 23407 0 35453 0 20574 0 488004 0 0 0 VICKI L SESSOMS SVP Resource Mgmt & Compliance 298515 0 103345 0 18444 0 33343 0 15487 0 469134 0 0 0 CAROL A SMOLIJ END 316 VP and Chief of Staff HCM 88793 0 27415 0 94889 0 5263 0 5858 0 222218 0 0 0 STEVEN SZEBENYI MD END 316 CMO 152846 0 96949 0 384831 0 11929 0 5976 0 652531 0 0 0 KATHLEEN F THEVENY VP Operations 175689 0 22208 0 12075 0 15209 0 7905 0 233086 0 0 0 PAUL TRAFICANTI MD Medical Director 127168 0 26919 0 360 0 10609 0 11031 0 176087 0 0 0 RAMESH J VANGALA VP Pharmacy Services 180449 0 21759 0 7771 0 14922 0 1834 0 226735 0 0 0 TAL ZAROM END 516 VP Medicare Stars Program 104655 0 40300 0 51896 0 8378 0 432 0 205661 0 0 0 ANJE VAN BERCKELAER MEDICAL DIRECTOR 208919 0 12966 0 447 0 16901 0 7570 0 246803 0 0 0 DENISE CROCE RN EXEC VP CLIN & PROV MGMT 328000 0 0 9453 0 29423 0 17134 0 384010 0 0 0 REETIKA KUMAR VP CHIEF CLINICAL OFFICER 269863 0 15000 0 11057 0 16750 0 1908 0 314578 0 0 0 CAROL POTTS VP HEALTHCARE ECONOMICS 191623 0 37779 0 1737 0 15376 0 1848 0 248363 0 0 0 ELIZABETH STRATTON END 616 DIRECTOR PROJECT MANAGEMENT 113814 0 40717 0 64538 0 8946 0 3721 0 231736 0 0 0 MATTHEW ZIMMERMAN VP PHARM PART D & CLIN PROGRAM 155475 0 13553 0 302 0 12958 0 25588 0 207876 0 0 0 LISA GETZFRID END 1016 SVP OPERATIONS & COO 221545 0 10000 0 332249 0 15388 0 12448 0 591630 0 0 0 MERLEEN HARRIS-WILLIAMS SENIOR MEDICAL DIRECTOR 259467 0 32787 0 2064 0 10600 0 22691 0 327609 0 0 0 Schedule J, Part I, Line 4b SEVERANCE PAYMENTS ARE INCLUDED IN SCHEDULE J, COLUMN B (III) NAME, TITLE, AMOUNT Steven Szebenyi, MD, CMO, $383,197 Lisa Getzfrid, SVP Operations, $325,000 Lovell T. Harmon, SVP Business Development, $241,674 Rebecca Kohl, VP Network Management, $28,773 Elizabeth Stratton, Director Project Management Office, $63,718 Andrea D'Angelo, VP Medical Management, $78,548 Carol Smolij, VP and Chief of Staff HCM, $94,623 Tal Zarom, VP Medicare Stars Program, $51,600 Schedule, J Part I Line 4b 457 Payments Lisa Getzfrid, SVP Operations, received a distribution of $2,551 from the 457 plan which is included in Schedule J, Column B (III) Elaine Markezin, Former SVP Operations, received a distribution of $75,250 from the 457 plan which is included in Schedule J, Column B (III) In 2016 the following people participated in, but did not receive a distribution from the 457 plan: Joseph Brand, Denise Croce, Donato Daddario, William S. George, Lovell Harmon, John Sehi, Vicki L. Sessoms and Steven Szebenyi. SCHEDULE J, PART I, LINE 7 Annually, at the end of each calendar year, management proposes bonus incentives to the compensation committee for the upcoming year. The incentives proposed are discussed and finalized by the committee. At the end of the year, the Internal Audit Department validates the results. The committee then reviews performance against those targets and approves incentive compensation payments for the recipients. Form 990, Part III, Line 1 HEALTH PARTNERS PLANS (HPP) IS A LICENSED HEALTH MAINTENANCE ORGANIZATION COMMITTED TO BUILDING HEALTHIER COMMUNITIES. OUR MISSION IS TO: *MANAGE OUR BUSINESS TO EXCEED EXPECTATIONS *OPERATE WITH RESPECT AND DIGNITY IN ALL RELATIONSHIPS *CONTINUALLY IMPROVE THE HEALTH OUTCOMES OF OUR MEMBERS SINCE ITS FOUNDING IN 1985, HPP HAS BEEN IMPROVING QUALITY AND ACCESS TO CARE FOR RESIDENTS OF PENNSYLVANIA. WE OFFER THREE HIGH-QUALITY PROGRAMS: 1. HEALTH PARTNERS (MEDICAID) SERVES PENNSYLVANIANS WITH LOW OR NO INCOME. NATIONALLY RECOGNIZED FOR ITS INNOVATIONS IN MANAGED CARE, HEALTH PARTNERS IS AMONG THE TOP FIFTEEN MEDICAID PLANS IN THE COUNTRY AND CONSISTENTLY RECEIVES HIGH RATINGS FOR MEMBER AND PROVIDER SATISFACTION ACCORDING TO THE NATIONAL COMMITTEE FOR QUALITY ASSURANCES (NCQA) MEDICAID HEALTH INSURANCE PLAN RATINGS 20162017. CURRENTLY SERVES MORE THAN 244,000 MEDICAL ASSISTANCE (MEDICAID) MEMBERS THROUGHOUT SOUTHEASTERN PENNSYLVANIA. MORE THAN HALF OF THOSE MEMBERS ARE CHILDREN AND ADOLESCENTS. 2. KIDZPARTNERS, OUR CHILDREN'S HEALTH INSURANCE PROGRAM (CHIP), PROVIDES COVERAGE FOR CHILDREN UP TO AGE 19 WHO ARE UNINSURED AND NOT ELIGIBLE FOR MEDICAID. PROVIDES ACCESS TO QUALITY HEALTH CARE MORE THAN 12,000 CHILDREN AND TEENS. 3. HEALTH PARTNERS MEDICARE NOW SERVES MORE THAN 17,000 MEMBERS IN EIGHT PENNSYLVANIA COUNTIES WITH ALL OF THE ORIGINAL MEDICARE BENEFITS AND MORE. WE OFFER VARIOUS MEDICARE PLANS TO MEET MEMBERS COST AND COVERAGE NEEDS, INCLUDING PLANS WITH PRESCRIPTION DRUGS AND A PLAN ESPECIALLY FOR PEOPLE WITH BOTH MEDICAID AND MEDICARE. HEALTH PARTNERS PLANS IS A LOCAL NOT-FOR-PROFIT HEALTH INSURANCE COMPANY THAT IS COMMITTED TO IMPROVING HEALTH OUTCOMES FOR MORE THAN 270,000 PENNSYLVANIANS. DEEPLY ENGAGED IN OUR COMMUNITIES, WE PROVIDE HEALTH AND WELLNESS RESOURCES THROUGH THREE HEALTH PLANS: KIDZPARTNERS (CHIP), HEALTH PARTNERS (MEDICAID) AND HEALTH PARTNERS MEDICARE. HPP WAS THE FIRST PLAN IN THE COUNTRY, AND NOW A FOUR-TIME RECIPIENT, OF THE NATIONAL COMMITTEE ON QUALITY ASSURANCE'S (NCQA) MULTICULTURAL HEALTH CARE DISTINCTION DESIGNATION. WE HAVE RECEIVED THE AMERICAN DIABETES ASSOCIATION (ADA) HEALTH CHAMPION DESIGNATION, THE MODERN HEALTHCARE BEST PLACES TO WORK IN HEALTHCARE DISTINCTION, AND NUMEROUS COMMUNICATIONS AWARDS FOR MEMBER MATERIALS AND PROGRAMS, AS WELL AS AWARDS FOR WORKPLACE DIVERSITY AND CORPORATE RESPONSIBILITY. HEALTH PARTNERS PLANS HAS GARNERED NATIONAL ATTENTION FOR INNOVATIONS IN MANAGED CARE. WE RECEIVED AN MHPA BEST PRACTICES AWARD FOR OUR ORAL HEALTH INITIATIVE. THROUGH THE PROGRAM, MEMBERS RECEIVE PHYSICAL WELL-CARE AND DENTAL PREVENTION EXAMS ON THE SAME DAY, AT THE SAME PLACE. AS THE RECIPIENT OF A HEALTH CARE INNOVATION AWARD SPONSORED BY THE CENTER FOR MEDICARE & MEDICAID INNOVATION, HPP WORKED WITH FINITY, INC. TO DEVELOP AN INNOVATIVE POPULATION HEALTH PROGRAM THAT PROVIDES MEMBERS WITH INCENTIVES AND PEER HEALTH COUNSELING THROUGH A CLOSED-LOOP PLATFORM TO IMPROVE HEALTH OUTCOMES AND REDUCE COSTS. AS PART OF A SHIFT TO PROMOTING OVERALL WELLNESS RATHER THAN SIMPLY TREATING ILLNESS, HPP HAS PARTNERED WITH PHILADELPHIA-based MANNA TO PROVIDE MEDICALLY APPROPRIATE MEALS AND NUTRITIONAL COUNSELING TO MMEMBERS WITH DIABETES AND CONGESTIVE HEART FAILURE. OUR OUTREACH EFFORTS INCLUDE BRINGING HEALTH AWARENESS DIRECTLY TO OUR MEMBERS (AND THE GENERAL PUBLIC) BY HOSTING HEALTH SCREENINGS AND EDUCATION EVENTS THROUGHOUT THE CITY. WE OFFER A 24-HOUR, 7 DAY-A-WEEK MEMBER SERVICES PHONE LINE, AS WELL AS ON-DEMAND PHONE AND VIDEO CONSULTATIONS WITH BOARD-CERTIFIED DOCTORS THROUGH TELADOC. WE ARE A CATALYST TO IMPROVING THE OVERALL HEALTH OF NOT ONLY OUR MEMBERS, BUT ALSO RESIDENTS THROUGHOUT THE COMMUNITY. WE DO THIS THROUGH A VARIETY OF HEALTH EDUCATION PROGRAMS, INCLUDING SPONSORSHIPS OF SUMMER CAMPS, COMMUNITY GARDENS, NEIGHBORHOOD FITNESS PROGRAMS, AFTER-SCHOOL PROGRAMS, WORKSHOPS, BODY MASS INDEX SCREENINGS AND OTHER EFFORTS. SOME OF OUR COMMUNITY SUPPORT ACTIVITIES INCLUDE: * CONVENING A CONFERENCE FOR HEALTH CARE AND SOCIAL SERVICES PROVIDERS TO DISCUSS OUTREACH AND TREATMENT OF MENTAL HEALTH AMONG IMMIGRANT POPULATIONS * SPONSORING SOCIAL ACTIVITIES FOR SENIORS TO ENCOURAGE SOCIAL, INTERACTION AND PHYSICAL ACTIVITY * PROVIDING COMMUNITY-BASED HEALTH EDUCATION AND TRAINING ON TOPICS SUCH AS ASTHMA, DIABETES AND OTHER HEALTH ISSUES * DEPLOYING CUSTOM-BUILT MOBILE SERVICE OFFICES TO PROVIDE INFORMATION ON HEALTH CARE IN THE COMMUNITY * OFFERING EDUCATIONAL SUPPORT INCLUDING SCHOLARSHIPS * LENDING OUR EXPERTISE TO NUMEROUS COMMUNITY ADVISORY BOARDS OF LOCAL NON-PROFITS WITH A FOCUS ON HEALTH ISSUES, COMMUNITY CONNECTIVITY AND BEST PRACTICES IN BUSINESS AND HUMAN SERVICES * SUPPORTING COMMUNITY-BASED ARTISTIC DEVELOPMENT THROUGH LOCAL ARTS INITIATIVES FOR LOW-INCOME, AT-RISK YOUTH * JOINING THE FIGHT AGAINST DOMESTIC VIOLENCE THROUGH EDUCATION AND INTERVENTION PROGRAMS, AS WELL AS COMMUNITY ACTIVISM THROUGH THE PA COALITION AGAINST DOMESTIC VIOLENCE AND WOMEN AGAINST ABUSE * DISTRIBUTING EMERGENCY RELIEF TO INDIVIDUALS AND FAMILIES INCLUDING ELECTRIC BOX FANS FOR SUMMER HEAT, FOOD BASKETS AND HOLIDAY GIFTS * STRENGTHENING FAMILIES THROUGH PARENTING SUPPORT INITIATIVES SUPPORTING NEW MOTHERS AND VARIOUS FATHERHOOD INITIATIVES FINALLY, BECAUSE VIOLENCE IN OUR COMMUNITY IS ONE OF THE GREATEST THREATS TO HEALTH, WE ACTIVELY SUPPORT ANTI-VIOLENCE EFFORTS, INCLUDING DONATIONS AND ACTIVE PARTICIPATION WITH ANTI-VIOLENCE COMMUNITY GROUPS. AS AN EMPLOYER, WE TAKE PRIDE IN OUR LOW EMPLOYEE TURNOVER RATE. WE MAINTAIN A SUPPORTIVE, MULTICULTURAL ENVIRONMENT AND A STRONG SENSE OF OUR MISSION. WE REMAIN COMMITTED TO WORKING WITH NUMEROUS MINORITY AND WOMEN-OWNED VENDORS IN OUR AREA. Form 990, Part VI, Line 6 & 7 The Health Partners Plans Board consists of one class of nine members. These members are comprised of six healthcare providers and three community at-large members. Members approve admitting new members, and, unanimous approval is required. Form 990, Part VI, Line 11b Process Used to Review Form 990 An initial review is performed by an independent accounting firm, KPMG, which provides technical guidance and filing expertise. The governing body of HPP, the Board of Directors, has a committee (Audit Committee) that reviews the Form 990. A week prior to the Audit Committee meeting, HPP's chief financial officer mails out the meeting package which includes the completed draft Form 990. The members review the form and prepare any questions. At the meeting the CFO reviews the draft Form 990 and provides highlights. There is discussion regarding the responses. The CFO then has a question and answer period regarding the return. After all questions have been responded to, the form is submitted to the Board of Directors, prior to submitting the return to the IRS. Form 990, Part VI, Section B, Line 12C MONITORING OF THE CONFLICT OF INTEREST POLICY All employees are required to complete on an annual basis, a statement of Conflict of Interest Certification. It is a part of the mandatory, online training program for employees. At the conclusion of the training, the employee certifies that he/she has read the Conflicts of Interest Policy. Employees are required to list any organizations that they are involved in, which may be in conflict with the interest or business of Health Partners Plans, Inc., and/or may interfere with the employee's ability to fully and properly perform their job responsibilities. Potential conflicts are to be reported by the employee to management and Human Resources, immediately. Per the training, and the processes in place, the signed documents are reviewed by the Human Resources department and any disclosures of potential conflicts are brought to the attention of the Senior Vice President of Resources Management & Compliance (SVP) and/or the Vice President, Legal Affairs & General Counsel (VP, Legal). The SVP and/or VP, Legal review the disclosure and if it rises to the level of a conflict, he/she/they determine if there is mitigation for said conflict or if action must be taken to alleviate the conflict. There were no conflicts of employees noted in 2016. The Board of Directors is also required to complete, on an annual basis, a review of the Conflict of Interest Policy and complete a Conflicts of Interest Statement. Per the Conflicts Policy for the Board, should a member have a disclosure, he/she presents it to the Board or Committee for discussion and vote to determine if a conflict of interest exists. In April of 2016, as noted in the 2015 report, the process was reviewed and improved with regard to review of the documents and forms of the conflicts policy. The revised policy was distributed to the Board in 2016 and again in 2017 and any potential conflicts were reviewed and handled by external counsel per the process in place. Form 990, Part VI, Line 15a FOR DETERMINING THE COMPENSATION OF THE PRESIDENT AND CEO The Board of Directors annually elects a board-level committee called the Compensation and Evaluation Committee (committee) which is responsible for assuring that HPP salary strategies are competitive and consistent with current market trends, in order to provide a stable, qualified and fairly compensated workforce. All members of the committee are independent. The committee also determines the compensation of the President and CEO by first engaging an independent consultant to provide market data on current, relevant CEOs' compensation including one custom survey specifically for HMO executives, in order to make their compensation recommendations. Every other year, the committee engages a benefits consulting firm to provide summarized national data. The consultant's investigation and recommendations reflect Board-specific criteria for determining payment levels for both base compensation and incentive compensation. Based on a thorough review and deliberations following the consultant's study, the committee establishes the base compensation and other benefits for the CEO so that they are aligned with current market trends and budgetary considerations. Separately, the committee approves annual incentive targets, performance against those targets, and the computation of the CEO's resulting incentive compensation payment. Contemporaneous minutes of the meeting are prepared and approved by the committee. The Board of Directors also approves the minutes of the committee. Form 990, Part VI, Line 15b PROCESS FOR THE DETERMINING THE COMPENSATION OF OFFICERS AND KEY EMPLOYEES The Board of Directors annually elects a board-level committee called the Compensation and Evaluation Committee (committee) which is responsible for assuring that HPP salary strategies are competitive and consistent with current market trends, in order to provide a stable, qualified and fairly compensated workforce. All members of the committee are independent. The committee also determines the compensation of the Other Officers and Certain Key Employees by first engaging an independent consultant to provide market data on current, relevant compensation including one custom survey specifically for HMO executives, in order to make their compensation recommendations Every other year, the committee engages a benefits consulting firm to provide summarized national data. The consultant's investigation and recommendations reflect Board-specific criteria for determining payment levels for both base compensation and incentive compensation Based on a thorough review and deliberations following the consultant's study, the committee establishes the base compensation and other benefits so that they are aligned with current market trends and budgetary considerations. Separately, the committee approves annual incentive targets, performance against those targets, and the computation of the resulting incentive compensation payment. Contemporaneous minutes of the meeting are prepared and approved by the committee. The Board of Directors also approves the minutes of the committee. FORM 990, PART XI, LINE 9 OTHER CHANGES IN NET ASSETS CONTRIBUTED CAPITAL.......$2,490,429 Form 990, Part XII, Line 2c AUDITED FINANCIAL STATEMENTS HPP did receive an audited financial statement from KPMG in 2016 that was prepared in accordance with accounting practices permitted by the Commonwealth of Pennsylvania Insurance Department, "Statutory Basis." Because HPP is licensed by the Commonwealth of Pennsylvania Departments of Insurance and Health to operate as a Health Maintenance Organization, the Statutory Financial Statements were required. A GAAP financial statement was not prepared because one was not required. SelectScripts LLC 901 MARKET STREET Philadelphia PA 19107 651235663 Pharm Ben Adm PA 0 0 SelectBen SelectBenefits LLC 901 MARKET STREET Philadelphia PA 19107 Holding Co PA 0 0 NA