2016-11-10T16:32:42-06:00 2015-12-31 PricewaterhouseCoopers LLP 2001 MARKET STREET SUITE 1800 PHILADELPHIA PA 19103 990 2015-01-01 135656874 BLUE CROSS BLUE SHIELD ASSOCIATION % ROBERT J KOLODGY BLUE 3122976000 225 NORTH MICHIGAN AVENUE CHICAGO IL 60601 ROBERT J KOLODGY EVP & CFO 2016-11-10 true ERICA R MCREYNOLDS P00977806 2673303000 2016-11-03 2015 2017-02-10 21:41:12Z SCOTT SEROTA 225 NORTH MICHIGAN AVENUE CHICAGO IL 60601 512533410 false X WWW.BCBS.COM X 1948 IL SEE SCHEDULE O 37 36 1293 0 4449982 0 0 0 456031393 500166247 1100612 3431971 251672 580131 457383677 504178349 0 0 0 0 179415728 201104962 0 0 0 270219633 308585154 449635361 509690116 7748316 -5511767 691620828 650271510 588934440 539461724 102686388 110809786 X SEE SCHEDULE O false true 167403232 0 167546665 SEE SCHEDULE O 135618353 0 147874027 SEE SCHEDULE O 56189190 0 56189190 SEE SCHEDULE O 125932636 0 128556366 485143411 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 true false false false false false true true true false true 226 0 1293 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 David W Anderson Board Member 1.0 0.0 X 0 0 0 Peter Andruszkiewicz Board Member 1.0 0.0 X 0 0 0 Richard L Boals Board Member 3.0 0.0 X 0 0 0 Christopher Booth Board Member 1.0 0.0 X 0 0 0 Chester Burrell Board Member 1.0 0.0 X 0 0 0 Denise S Cesare Board Member 1.0 0.0 X 0 0 0 Andrew C Corbin Board Member 2.0 0.0 X 0 0 0 Andrew Dreyfus Board Member 3.0 0.0 X 0 0 0 John D Forsyth Board Member 1.0 0.0 X 0 0 0 Mark B Ganz Board Member 2.0 0.0 X 0 0 0 Don C George Board Member 1.0 0.0 X 0 0 0 Patrick J Geraghty Board Member 3.0 0.0 X 0 0 0 Zelda Geyer-Sylvia Board Member 1.0 0.0 X 0 0 0 Michael A Gold Board Member 1.0 0.0 X 0 0 0 Bill Gracey Board Member 2.0 0.0 X 0 0 0 Michael Guyette Board Member 3.0 0.0 X 0 0 0 Patricia A Hemingway Hall Board Member 4.0 0.0 X 0 0 0 JD Hickey Board Member 1.0 0.0 X 0 0 0 Daniel J Hilferty Board Member 3.0 0.0 X 0 0 0 David Holmberg Board Member 2.0 0.0 X 0 0 0 Tim Huckle Board Member 1.0 0.0 X 0 0 0 Terry D Kellogg Board Member 3.0 0.0 X 0 0 0 Scott D Kreiling Board Member 1.0 0.0 X 0 0 0 Daniel J Loepp Board Member 4.0 0.0 X 0 0 0 Robert A Marino Board Member 2.0 0.0 X 0 0 0 Paul Markovich Board Member 3.0 0.0 X 0 0 0 Steven S Martin Board Member 2.0 0.0 X 0 0 0 David S Pankau Board Member 2.0 0.0 X 0 0 0 M Carol Pigott Board Member 1.0 0.0 X 0 0 0 Michael Reitz Board Member 1.0 0.0 X 0 0 0 Jeff Roe Board Member 1.0 0.0 X 0 0 0 Ramon M Ruiz Comas Board Member 2.0 0.0 X 0 0 0 Rick Schum Board Member 1.0 0.0 X 0 0 0 Gary D StHilaire Board Member 1.0 0.0 X 0 0 0 Joseph Swedish Board Member 3.0 0.0 X 0 0 0 P Mark White Board Member 3.0 0.0 X 0 0 0 Danette K Wilson Board Member 1.0 0.0 X 0 0 0 J Bradley Wilson Board Member 2.0 0.0 X 0 0 0 Scott P Serota President, CEO & Board Member 40.0 0.0 X X 4047156 0 1824034 William A Breskin VP, Government Programs 40.0 0.0 X 503597 0 135253 Bhaskar Bulusu VP, Enterprise Information 40.0 0.0 X 270173 0 56380 Maureen Cahill SVP& Chief Human Resource off. 40.0 0.0 X 384554 0 40008 John Cerisano VP, Federal Relations 40.0 0.0 X 370715 0 104425 Teresa Clark VP, Office of Clinical Affairs 40.0 0.0 X 304078 0 49659 William Colbourne SR VP, HR and Administration 40.0 0.0 X 594104 0 10892 Kathy Didawick VP, Congressional Comm. 40.0 0.0 X 418540 0 96376 John T Ericksen VP, Federal Relations 40.0 0.0 X 475353 0 85201 Jena Estes VP, Government Programs 40.0 0.0 X 395509 0 89596 Alissa T Fox SR VP, Policy & Representation 40.0 0.0 X 1058158 0 168277 Paul Gerrard VP, Strategic Communications 40.0 0.0 X 357068 0 33060 Kris O Haltmeyer VP, Health Policy & Analysis 40.0 0.0 X 372032 0 33084 Justine Handelman VP, Legislative & Reg. Polict 40.0 0.0 X 462429 0 63514 Trent T Haywood SR VP, Clinical Affairs & CMO 40.0 0.0 X 570040 0 37963 Kari J Hedges VP, National Programs 40.0 0.0 X 459604 0 27846 Mitchell J Helfand VP, Finance 40.0 0.0 X 436079 0 129140 Kim D Holland VP, State Affairs 40.0 0.0 X 309176 0 51048 Nasir Khan VP & CHIEF TECHNOLOGY OFFICER 40.0 0.0 X 387550 0 93648 Robert J Kolodgy Jr SR VP, FSGP & CFO 40.0 0.0 X 758142 0 50141 Shirley S Lady VP, Transformation Services 40.0 0.0 X 400676 0 97699 Petar Naumovski VP & Chief Info. SECURITY OFF. 40.0 0.0 X 222871 0 33400 William S Nehs SR VP, Gen Counsel & Secretary 40.0 0.0 X 547842 0 33351 William O'Loughlin VP, Operational Readiness 40.0 0.0 X 522263 0 130514 Doug Porter SR VP, Operations & CIO 40.0 0.0 X 727969 0 116884 Cynthia Rolfe VP, Consumer Brand Strategy 40.0 0.0 X 372977 0 22200 Maureen E Sullivan SR VP, Strategic Srvs. & CSO 40.0 0.0 X 758025 0 128618 Mark Talluto VP, Strategy and Analytics 40.0 0.0 X 323448 0 31649 Jennifer Vachon SVP,Admin.srv.& chief of staff 40.0 0.0 X 557857 0 112495 Jody A Voss VP, Strategic Bus. Services 40.0 0.0 X 421367 0 106273 Terry Cooney Exec Dir, Nat'l Employee Benef 40.0 0.0 X 321012 0 154423 Daniel Engel Sr Assoc Gen Counsel 40.0 0.0 X 358148 0 123099 Carole Flamm Exec Med Dir,Ctr. Clinic Value 40.0 0.0 X 384444 0 87184 Steven Putziger Exec Dir Brand Protect&Finance 40.0 0.0 X 360141 0 60825 Denise Schofield EXEC DIR, STRATEGIC BUS. SRVS. 40.0 0.0 X 323019 0 64793 19536116 0 4482952 614 false true false HEALTH INTELLIGENCE CO LLC 225 N MICHIGAN AVENUE CHICAGO IL 60601 DATA ANALYTICS 15172279 HP ENTERPRISE SERVICES LLC PO BOX 92013 CHICAGO IL 60675 SYSTEM CONSULTING 9761803 KIRKLAND ELLIS 200 E RANDOLPH DRIVE CHICAGO IL 60601 LEGAL SERVICES 9609397 MEDULLAN INC 625 MT AUBURN ST NO 201 CAMBRIDGE MA 02138 DIGITAL HLTH CONSULT 6440859 AXA ASSISTANCE USA INC 122 S MICHIGAN AVENUE CHICAGO IL 60602 MED. CLAIMS PROCESS. 5982070 140 0 FEDERAL EMPLOYEE PROGRAM 900099 167546665 167546665 0 0 BLUECARD 900099 147874027 147874027 0 0 OTHER SERVICES 900099 56189190 55853141 336049 0 CONSULTING & MISC. 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IN AFFILIATES >5% 6494758 C 206,839 COMMON, BCS INSR. CORP 210000 C 207464718 0 PENSION LIABILITES 37746729 LONG-TERM DEFERRED REVENUE 11834780 LEASE LIABILITY 6765440 OTHER BENEFITS 3382587 POST-RETIREMENT LIABILITY 1661348 61390884 X SCHEDULE D, PART IV, LINE 2B THE ASSOCIATION HOLDS FUNDS AS AGENT FOR ITS MEMBER PLANS UNDER ARRANGEMENTS COVERING ITS BLUE CARD AND FEDERAL EMPLOYEE PROGRAM. SCHEDULE D, PART X, LINE 2 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, 2015 AND 2014. THE ASSOCIATION IS OPEN TO EXAMINATION BY TAXING AUTHORITIES FROM FISCAL YEAR 2012 FORWARD. 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 987665 0 2702142 0 357349 0 1786049 0 37985 0 5871190 0 1340307 0 William A Breskin VP, Government Programs 280410 0 120000 0 103187 0 106399 0 28854 0 638850 0 0 0 Bhaskar Bulusu VP, Enterprise Information 268444 0 0 0 1729 0 15769 0 40611 0 326553 0 0 0 Maureen Cahill SVP& Chief Human Resource off. 361996 0 0 0 22558 0 13282 0 26726 0 424562 0 0 0 John Cerisano VP, Federal Relations 262812 0 79200 0 28703 0 63847 0 40578 0 475140 0 0 0 Teresa Clark VP, Office of Clinical Affairs 229953 0 73500 0 625 0 13250 0 36409 0 353737 0 0 0 William Colbourne SR VP, HR and Administration 112030 0 0 0 482074 0 3444 0 7448 0 604996 0 0 0 Kathy Didawick VP, Congressional Comm. 247044 0 120000 0 51496 0 73307 0 23069 0 514916 0 0 0 John T Ericksen VP, Federal Relations 284498 0 90000 0 100855 0 67956 0 17245 0 560554 0 0 0 Jena Estes VP, Government Programs 275427 0 76300 0 43782 0 63922 0 25674 0 485105 0 0 0 Alissa T Fox SR VP, Policy & Representation 431275 0 275000 0 351883 0 139222 0 29055 0 1226435 0 0 0 Paul Gerrard VP, Strategic Communications 247196 0 98100 0 11772 0 10838 0 22222 0 390128 0 0 0 Kris O Haltmeyer VP, Health Policy & Analysis 235795 0 85000 0 51237 0 7716 0 25368 0 405116 0 0 0 Justine Handelman VP, Legislative & Reg. Polict 267588 0 120000 0 74841 0 35914 0 27600 0 525943 0 0 0 Trent T Haywood SR VP, Clinical Affairs & CMO 360540 0 190000 0 19500 0 13250 0 24713 0 608003 0 0 0 Kari J Hedges VP, National Programs 266866 0 125000 0 67738 0 7950 0 19896 0 487450 0 0 0 Mitchell J Helfand VP, Finance 228131 0 90000 0 117948 0 108132 0 21008 0 565219 0 0 0 Kim D Holland VP, State Affairs 209877 0 80000 0 19299 0 15989 0 35059 0 360224 0 0 0 Nasir Khan VP & CHIEF TECHNOLOGY OFFICER 247983 0 90000 0 49567 0 69322 0 24326 0 481198 0 0 0 Robert J Kolodgy Jr SR VP, FSGP & CFO 470779 0 260000 0 27363 0 18000 0 32141 0 808283 0 0 0 Shirley S Lady VP, Transformation Services 237599 0 75000 0 88077 0 88291 0 9408 0 498375 0 0 0 Petar Naumovski VP & Chief Info. SECURITY OFF. 222323 0 0 0 548 0 2665 0 30735 0 256271 0 0 0 William S Nehs SR VP, Gen Counsel & Secretary 386342 0 160000 0 1500 0 13250 0 20101 0 581193 0 0 0 William O'Loughlin VP, Operational Readiness 293866 0 135000 0 93397 0 102721 0 27793 0 652777 0 0 0 Doug Porter SR VP, Operations & CIO 402623 0 220000 0 105346 0 93609 0 23275 0 844853 0 0 0 Cynthia Rolfe VP, Consumer Brand Strategy 252916 0 99600 0 20461 0 10910 0 11290 0 395177 0 0 0 Maureen E Sullivan SR VP, Strategic Srvs. & CSO 389637 0 200000 0 168388 0 98821 0 29797 0 886643 0 0 0 Mark Talluto VP, Strategy and Analytics 253483 0 61000 0 8965 0 14516 0 17133 0 355097 0 0 0 Jennifer Vachon SVP,Admin.srv.& chief of staff 303902 0 175000 0 78955 0 90106 0 22389 0 670352 0 0 0 Jody A Voss VP, Strategic Bus. Services 243416 0 100200 0 77751 0 93317 0 12956 0 527640 0 0 0 Terry Cooney Exec Dir, Nat'l Employee Benef 212238 0 75000 0 33774 0 129340 0 25083 0 475435 0 0 0 Daniel Engel Sr Assoc Gen Counsel 222102 0 66000 0 70046 0 105936 0 17163 0 481247 0 0 0 Carole Flamm Exec Med Dir,Ctr. Clinic Value 276556 0 76200 0 31688 0 61281 0 25903 0 471628 0 0 0 Steven Putziger Exec Dir Brand Protect&Finance 231055 0 70000 0 59086 0 47251 0 13574 0 420966 0 0 0 Denise Schofield EXEC DIR, STRATEGIC BUS. SRVS. 236791 0 69900 0 16328 0 52503 0 12290 0 387812 0 0 0 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. 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. 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 187,792 WILLIAM A. BRESKIN 39,732 JOHN CERISANO 17,081 KATHY DIDAWICK 23,266 JENA LANISE BELL ESTES 10,824 ALISSA T FOX 55,742 MITCHELL HELFAND 21,834 NASIR KHAN 14,395 SHIRLEY LADY 4,730 BILL OLOUGHLIN 35,986 DOUG PORTER 35,941 MAUREEN E. SULLIVAN 45,911 JENNIFER VACHON 47,956 JODY VOSS 50,162 TERRY COONEY 26,587 DAN ENGEL 16,472 CAROLE FLAMM 10,285 STEVEN PUTZIGER 18,884 DENISE SCHOFIELD 2,183 ----------- The combined total of imputed SERP included in column C: $ 665,761 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 ALSO PARTICIPATES 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 HAS 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. F RUIZ DIRECTOR'S FAMILY MEMBER 102728 EMPLOYEE SALARY false N PARKER OFFICER'S FAMILY MEMBER 93718 EMPLOYEE SALARY false HEALTH INTELLIGENCE CO LLC DIRECTOR-VENDORS DIRECTOR 15260772 PAYMENT FOR SERVICES false HEALTH INTELLIGENCE CO LLC OFFICER-CUSTOMER DIRECTOR 4677724 RECEIPTS-CONTRACT FEES false NATIONAL ACCT SERVICE COMPANY LLC OFFICER-CUSTOMER DIRECTOR 3237451 RECEIPTS FOR SERVICES false BCS INSURANCE COMPANY DIRECTOR-VENDORS DIRECTOR 1705270 PAYMENT FOR INSURANCE false HIGHWAY TO HEALTH DIRECTOR-CUSTOMER DIRECT. 1700000 RECEIPT OF LICENSE FEE false HEALTHSPARQ INC DIRECTOR-VENDORS DIRECTOR 1173976 PAYMENT FOR SERVICES false CONSORTIUM HEALTH PLANS INC DIRECTOR-VENDORS DIRECTOR 755080 PAYMENT FOR SERVICES false BCBS VENTURE PARTNERS II LP OFFICER-CUSTOMER DIRECTOR 315329 RECEIPTS FOR SERVICES false BSBS VENTURE PARTNERS LP OFFICER-CUSTOMER DIRECTOR 220505 RECEIPTS FOR SERVICES false BSBS LIFE INSURANCE CO DIRECTOR-CUSTOMER DIRECT. 174190 RECEIPTS FOR SERVICES false PRIME THERAPEUTICS LLC DIRECTOR-VENDORS DIRECTOR 142245 PAYMENT FOR SERVICES false AMERICAN BENEFIT COUNCIL DIRECTOR-VENDORS DIRECTOR 118000 PAYMENT FOR SERVICES false TRAVEL AND TRANSPORT INC DIRECTOR-VENDORS DIRECTOR 104091 PAYMENT FOR SERVICES 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) WHICH OPERATES 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 3 A CONTRACT BETWEEN CENTERS FOR MEDICARE & MEDICAID SERVICES AND THE BLUE CROSS AND BLUE SHIELD ASSOCIATION FOR THE MEDICARE A PROGRAM ENDED ON SEPTEMBER 30, 2015. 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 2015 INCLUDED IMPROVING MEMBERS EXPERIENCE AND PROVIDING SUPPORT FOR A NEW OPERATING MODEL TO SUPPORT THE CURRENT SUITE OF CONSUMER TOOLS. IMPROVEMENTS INCLUDE SUPPORTED REAL-TIME OR NEAR REAL-TIME PROCESSING OF INCENTIVES, PROVIDED SECURE MEMBER MESSAGING AND SUPPORTED TRAINING AND ENVIRONMENTS FOR THE DIGITAL EXPERIENCE PROGRAM. RETENTION RATE WAS 99.3%. FORM 990, PART III, LINE 4B THE BLUECARD PROGRAM IS A CLEARINGHOUSE SERVICE PROVIDED WHEN A MEMBER PLAN PARTICIPANT RECEIVES HEALTHCARE IN ANOTHER MEMBER PLAN GEOGRAPHIC SERVICE AREA. BLUECARD GIVES BLUE MEMBERS SEAMLESS NATIONAL ACCESS TO PHYSICIANS AND HOSPITALS THAT PARTICIPATE IN BLUE NETWORKS. 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. DURING 2015, THE ASSOCIATION SUPPORTED ITS MEMBER PLANS IN THE DEVELOPMENT OF A NATIONAL TELEHEALTH OFFERING THROUGH THE BLUECARD PROGRAM. FORM 990, PART III, LINE 4C AS THE UMBRELLA ORGANIZATION FOR THE MEMBER PLANS, THE ASSOCIATION COORDINATES ADVERTISING AND COMMUNICATION PROGRAMS, PROVIDING POLICY AND REPRESENTATION OF MEMBER INTERESTS, MONITORS AND FOSTERS THE FINANCIAL STABILITY OF ALL THE PLANS AND SUPPORTS THE ABILITY OF THE PLANS TO OPERATE EFFICIENTLY BY PROVIDING CONFERENCES, CONSULTING AND MISCELLANEOUS SERVICES TO THE PLANS. FORM 990, PART III, LINE 4D OTHER PROGRAM SERVICE ACCOMPLISHMENTS THE ASSOCIATION PROVIDES OPTIONAL CONSULTING SERVICES AND OTHER MISCELLANEOUS PROJECTS. EXPENSE: 38,082,008 GRANTS: NONE REVENUE: 44,341,512 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: 39,870,914 GRANTS: NONE REVENUE: 39,870,914 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: 14,943,350 GRANTS: NONE REVENUE: 4,151,447 OPERATION OF THE NATIONAL EMPLOYEE BENEFITS ADMINISTRATION PROGRAM WHICH PROVIDES A COMPREHENSIVE GROUP PACKAGE OF EMPLOYEE BENEFITS PROGRAMS TO THE PLANS. EXPENSE: 13,646,831 GRANTS: NONE REVENUE: 13,968,019 OPERATION OF THE TELECOMMUNICATION NETWORK WHICH FACILITATES INTER-PLAN COMMUNICATION. EXPENSE: 11,765,734 GRANTS: NONE REVENUE: 18,802,690 MEDICARE & OTHER GOVERNMENT SERVICES THE ASSOCIATION PERFORMED SERVICES FOR THE MEDICARE A PROGRAM AND OTHER SERVICES AGREEMENTS WITH THE SECRETARY OF THE UNITED STATES DEPARTMENT OF HEALTH AND HUMAN SERVICES. BCBSA ACTED IN A COORDINATING ROLE FOR ALL BLUE CROSS AND BLUE SHIELD PLANS TO PERFORM CERTAIN ASPECTS OF THE MEDICARE A INTERMEDIARY FUNCTIONS AND OTHER GOVERNMENT BUSINESS SERVICES PROVIDED TO THE PLANS. THE ASSOCIATION PROVIDED ADDITIONAL SERVICES TO DHHS THROUGH CONTRACTS WITH THE AGENCY FOR HEALTHCARE RESEARCH AND QUALITY (AHRQ). THE CONTRACT TO PERFORM THESE SERVICES ENDED ON SEPTEMBER 30, 2015. EXPENSES: 7,623,799 GRANTS: NONE REVENUE: 7,421,783 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 $ (14,870,116) INTERCOMPANY REVENUE 13,941 SUBSIDIARY INCOME TAX (10,306) UNADJUSTED ERROR/UNRECONCILED (243) --------------- TOTAL (14,866,724) FORM 990 PART IX LINE 11G DESCRIPTION:TEMPORARY HELP TOTAL FEES:48516920 FORM 990 PART IX LINE 11G DESCRIPTION:PRINTING & GRAPHICS TOTAL FEES:2685191 FORM 990 PART IX LINE 11G DESCRIPTION:RECRUITING TOTAL FEES:765287 FORM 990 PART IX LINE 11G DESCRIPTION:& INFRASTRUCTURE DESIGN TOTAL FEES:XXX-XX-XXXX HEALTH SERVICES FOUNDATION 225 NORTH MICHIGAN AVENUE CHICAGO IL 60601 237011867 EDUC., RSRCH. IL 501(C)(3) 9 NA false BS AND BS FOUNDATION ON HEALTH CARE 225 NORTH MICHIGAN AVENUE CHICAGO IL 60601 237164980 EDUC., RSRCH. IL 501(C)(3) 9 NA false BLUE CROSS BLUE SHIELD INSTITUTE INC 225 NORTH MICHIGAN AVENUE CHICAGO IL 60601 364176277 INT'L LICENSING IL NA C CORP -13941 42176 1.00000 true false false false false false false false false false false false false false false false false true false false BLUE CROSS BLUE SHIELD INSTITUTE INC Q 13337 ACTUAL COST