2013-11-11T17:16:22-07:00 2012-12-31 990 2012-01-01 135656874 BLUE CROSS AND BLUE SHIELD ASSOCIATION BLUE 3122976000 225 North Michigan Avenue Chicago IL 60601 Robert Kolodgy 3122976000 2013-11-12 2012 2016-02-24 21:20:13Z Scott Serota 225 North Michigan Avenue Chicago IL 60601 415828814 0 X www.bcbs.com X 1948 IL The organization's tax exempt purpose is promoting through independent BCBS member (Plans), the common good and general welfare of the community by fostering broad-based health insurance coverage. 39 38 1259 0 17852372 -4545541 0 0 391099815 401706209 1308731 894806 -183692 64389 392224854 402665404 0 0 0 0 168864772 170867694 0 0 0 236658500 230723477 405523272 401591171 -13298418 1074233 477055743 545808284 372770195 441368086 104285548 104440198 The Association serves its membership consisting of independent Blue Cross and Blue Shield Plans (Plans) which operates within specified geographic service areas. The Association provides a variety of services to member Plans and coordinates government services such as the Medicare Part A prime contract and the contract under the Federal Employee Health Benefit Program (FEP);all of which are 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. 0 0 103463891 102187488 The BlueCard program is a clearinghouse service provided when a member Plan participant receives healthcare in another member Plan geographic service area. BlueCard enhancements in 2012 improved application performance, reliability and real-time processing of claims. This allows Plans to significantly reduce claim cycle time and realize significant operational efficiencies - Plan-reported examples include a seven-day reduction in claims cycle time and an 8 to 11-percent reduction in duplicate claims. Twenty eight (28) of thirty nine (38) Association licensees serve fortune 500 companies nationally. 107379928 107463438 The Blue Cross and Blue Shield Associations' Federal Employee Program (FEP) administers the Blue Cross and Blue Shield Service Benefit Plan. Approximately 62 percent of all federal employees and retirees who receive their health care benefits through the government's Federal Employee 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. The FEP program provided service to more than 5.3 million members and maintained a retention rate of 99.2 percent. To increase efficiencies and effectiveness, FEP launched several initiatives projected to save more than $21 million over the next two to three years - which enabled the program to improve the competitive position of its program optons. The FEP BlueVision product has approximately 885,000 members which is over fifty percent of the market share. The program wide service profile score increased for the fifth straight year, reaching a record high 114 out of 120. The program continues to increase member awareness through the offering of several on-line tools; including access to personal health records, wellness coaching modules and nurse-line. 54142546 62888810 As the umbrella organization for the member Plans, the Association coordinates advertising and communications 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. 35159080 38032951 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. 30491181 36315856 The Association provides optional consulting services and other miscellaneous services. 22266183 17732141 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 systems 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. 12242983 12466152 Operation of the National Employee Benefits Administration Program which provides a comprehensive group package of employee benefits programs to the Plans. 10387183 16840431 Operation of the telecommunications network which facilitates inter-plan communication. 8920920 7778943 The Association performs services for the Medicare A program and other services agreements with the Secretary of the United States Department of Health and Human Services (DHHS). BCBSA acts 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 Plans. The Association provides additional services to DHHS through contracts with the Agency for Healthcare Research and Quality (AHRQ) utilizing funds from the American Recovery and Reinvestment Act (ARRA). 119467530 0 129166474 384453895 0 0 1 1 0 0 0 1 0 1 1 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 1 1 0 0 0 0 0 1 1 1 0 1 234 0 1 1259 1 1 1 0 0 0 0 0 X 39 38 1 0 0 0 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 1 1 IL X Robert J Kolodgy 3122976462 225 North Michigan Avenue Chicago IL 60601 Peter Andruszkiewicz 1.7 0 X 0 0 0 Richard L Boals 1.7 0 X 0 0 0 Bruce G Bodaken 1.7 0 X 0 0 0 Angela Braly 1.7 0 X 0 0 0 H R Brereton Barlow 1.7 0 X 0 0 0 Chester Burrell 1.7 0 X 0 0 0 John Cannon 1.7 0 X 0 0 0 Denise S Cesare 1.7 0 X 0 0 0 Andrew C Corbin 1.7 0 X 0 0 0 Andrew Dreyfus 1.7 0 X 0 0 0 Paul von Ebers 1.7 0 X 0 0 0 Ray Flachbart 1.7 0 X 0 0 0 John D Forsyth 1.7 0 X 0 0 0 Mike Frank 1.7 0 X 0 0 0 Mark B Ganz 1.7 0 X 0 0 0 David R Gentile 1.7 0 X 0 0 0 Don C George 1.7 0 X 0 0 0 Patrick J Geraghty 1.7 0 X 0 0 0 Zelda Geyer-Sylvia 1.7 0 X 0 0 0 Vicky B Gregg 1.7 0 X 0 0 0 Patricia A Hemingway Hall 1.7 0 X 0 0 0 Robert P Hiam 1.7 0 X 0 0 0 Daniel J Hilferty 1.7 0 X 0 0 0 Terry D Kellogg 1.7 0 X 0 0 0 David H Klein 1.7 0 X 0 0 0 Scott D Kreiling 1.7 0 X 0 0 0 William Lehr Jr 1.7 0 X 0 0 0 Daniel J Loepp 1.7 0 X 0 0 0 Scott B Lynch 1.7 0 X 0 0 0 Robert A Marino 1.7 0 X 0 0 0 Steven S Martin 1.7 0 X 0 0 0 Kenneth R Melani MD 1.7 0 X 0 0 0 Alphonso ONeil White 1.7 0 X 0 0 0 David S Pankau 1.7 0 X 0 0 0 M Carol Pigott 1.7 0 X 0 0 0 Michael Reitz 1.7 0 X 0 0 0 Ramon M Ruiz Comas 1.7 0 X 0 0 0 Rick Schum 1.7 0 X 0 0 0 Gary D St Hilaire 1.7 0 X 0 0 0 Pamela Wheelock 1.7 0 X 0 0 0 P Mark White 1.7 0 X 0 0 0 J Bradley Wilson 1.7 0 X 0 0 0 William Winkenwerder 1.7 0 X 0 0 0 Scott P Serota 40 0 X 3905943 0 1301741 William A Breskin 40 0 X 363826 0 110389 Paul Brown 40 0 X 104799 0 55228 William J Colbourne 40 0 X 571192 0 137538 Frank E Coyne Jr 40 0 X 464242 0 194188 Kathy R Didawick 40 0 X 316329 0 77216 John T Ericksen 40 0 X 436511 0 121471 Jena Estes 40 0 X 360184 0 91199 Alissa T Fox 40 0 X 771668 0 175073 Paul John Julian Gerrard 40 0 X 261305 0 41393 Justine G Handelman 40 0 X 334970 0 82152 Trent T Haywood 40 0 X 24038 0 2237 Kari J Hedges 40 0 X 280976 0 36990 Mitchell J Helfand 40 0 X 320934 0 111688 Robert J Kolodgy Jr 40 0 X 588892 0 60254 Allan M Korn 40 0 X 719559 0 237923 Shirley S Lady 40 0 X 335169 0 103959 W Scott Nehs 40 0 X 249620 0 26297 William B O'Loughlin 40 0 X 526092 0 112452 Doug Porter 40 0 X 722068 0 83801 Cynthia P Rolfe 40 0 X 298878 0 24482 Maureen E Sullivan 40 0 X 644597 0 123926 Jennifer Vachon 40 0 X 350085 0 81454 Jody A Voss 40 0 X 355044 0 92473 Roger G Wilson 40 0 X 672505 0 142156 John Cerisano 40 0 X 288023 0 66536 Daniel A Engel 40 0 X 265197 0 107335 Carole R Flamm 40 0 X 331732 0 58930 Steven D Putziger 40 0 X 303610 0 70748 Mark A Talluto 40 0 X 277614 0 36860 Stephen Gammarino 0 0 X 860677 0 3790 16306279 0 3971879 522 1 1 0 AGA SERVICE COMPANY ALLIANZ GLOBAL SERVICES Richmond VA 23294 InterPlan Support 8486299 HP ENTERPRISE SERVICE LLC PO Box 92013 Chicago IL 606752013 Systems Consulting 5631639 BLUE HEALTH INTELLIGENCE 225 N MICHIGAN AVENUE Chicago IL 60601 Data Access Fees 4710614 SYNOVATE INC 3040 W SALT CREEK LANE Arlington Heights IL 60005 Healthcare Surveys 3149108 AT&T PO Box 84685 Seattle WA 981245985 BlueCard Usage Telecom Fees 2821803 126 0 BlueCard 900099 102187488 102187488 0 0 Federal Employee Program 900099 107463438 107463438 0 0 Other Services 900099 62888810 62888810 0 0 Brand Enhance & Protection 900099 38032951 38032951 0 0 Consulting & Misc Services 900099 36315855 36315855 0 0 54817667 37085526 17732141 0 401706209 759833 0 0 759833 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 13298383 0 13117521 45889 180862 -45889 134973 0 0 134973 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Service Fee Revenue 525990 129041 0 129041 0 Partnership Pass Through Loss 900001 -64652 -55842 -8810 0 0 0 0 0 64389 402665404 383918226 17852372 894806 X 0 0 0 0 0 0 0 0 16046931 12749775 3297156 0 0 0 0 0 116331358 111883005 4448353 0 14219046 9481946 4737100 0 15731807 15450239 281568 0 8538552 8270799 267753 0 0 0 0 0 9735135 9925291 -190156 0 853905 853905 0 0 5112641 5112641 0 0 0 0 15182 0 15182 0 114786856 114159724 627132 0 6507248 6501244 6004 0 9485357 9358226 127131 0 31890727 31470036 420691 0 0 0 0 0 10805225 10380104 425121 0 5785184 5078644 706540 0 0 0 0 0 4141864 3447866 693998 0 262966 237549 25417 0 0 0 0 0 20064336 19858903 205433 0 3314351 3283313 31038 0 Membership, Sponsorship, Gen'l Contribution 5817635 4871127 946508 Books & Periodicals 1898118 1833463 64655 Miscellaneous 246747 246095 652 0 0 401591171 384453895 17137276 0 544058 692444 270161510 327372324 0 25371551 24332048 0 0 0 0 9696675 5014976 0 0 8783774 9153032 91328112 65663397 27718663 25664715 15000 15000 106021820 132369364 0 0 12275987 4498115 16466705 16696266 477055743 545808284 78921901 91845720 0 0 1447273 1683739 0 229822490 276009273 0 0 0 0 0 0 62578531 71829354 372770195 441368086 X 104285548 104440198 0 0 0 0 104285548 104440198 477055743 545808284 X 1074233 261384 0 -15182 0 -1165785 X 0 1 X 1 0 485285 0 0 275000 275000 1 Democratic Governor's Association 1401 K Street NW Ste 200 Washington DC 20005 521304889 125000 0 Republican Governor's Association 1747 Pennsylvania Ave NW Ste 250 Washington DC 20006 113655877 100000 0 Republican State Leadership Committee 1201 F Street NW Suite 675 Washington DC 20004 050532524 50000 0 0 0 0 95500000 13325716 0 13325716 13325716 0 0 SchC_P1A_S00_L01 Schedule C, Part I-A, Line 1 Schedule C, Part I-A, Line 1 - The filing organiztion made contributions from the general treasury to three Section 527 political organizations and sponsored a separate fund designated for exempt purposes. 0 1 X 0 0 0 0 0 0 0 0 28020745 14201688 13819057 0 63307367 51461709 11845658 0 0 0 0 25664715 0 0 Non Public Mutual Funds 78878576 C Wells Fargo Mutual Funds (MNSGX) 39428092 F 1 share common, BCBSA Services, Inc. 13262469 C Investment in Affiliates >5% 580890 C 206,889 Common, BCS Insurance Corp 210000 C 9,337.63 Common, Health Intelligence Co. LLC 9337 C 132369364 0 Pension Liability 44558967 Unsecured Note to Related Parties 9897555 Lease Liability 9170855 Post Retirement Liability 5389763 Other Benefits 2399887 Interest Payable 412327 71829354 X 403043106 261384 0 0 180707 442091 402601015 0 64389 64389 402665404 401637058 0 0 0 0 0 401637058 0 -45887 -45887 401591171 SchD_P04_S00_L02b Schedule D, Part IV, Line 2b 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 SchD_P10_S00_L02 Schedule D, Part X, Line 2 The Association follows the requirements of ASC 740-10-25 "Accounting for Uncertainty in Income Taxes," which clarifies the accounting and disclosure 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, 2012 and 2011. The Association is open to examination by taxing authorities from fiscal year 2009 forward. SchD_P11_S00_L02d Schedule D, Part XI, Line 2d Subsidiary Gross Receipts $150,000 - $45,889 reclassification of loss on sale of assets + $15,182 reclassification of investment expenses = $180,707 SchD_P11_S00_L04b Schedule D, Part XI, Line 4b $129,041 Consolidated Intercompany Revenue - $64,652 Investment pass through income from SchD_P12_S00_L04b Schedule D, Part XII, Line 4b Reclassification of loss on sale of Assets to Revenue X 1 1 X X X X X X 0 1 0 0 0 0 0 1 0 Scott P Serota 955947 0 1937741 0 1012255 0 1275518 0 26223 0 5207684 0 902061 0 William A Breskin 247219 0 76500 0 40107 0 85808 0 24581 0 474215 0 0 0 Paul Brown 62085 0 26000 0 16714 0 48526 0 6702 0 160027 0 0 0 William J Colbourne 305101 0 155000 0 111091 0 116935 0 20603 0 708730 0 0 0 Frank E Coyne Jr 276262 0 120400 0 67580 0 167057 0 27131 0 658430 0 0 0 Kathy R Didawick 222781 0 75000 0 18548 0 59890 0 17325 0 393544 0 0 0 John T Ericksen 260817 0 97000 0 78694 0 98687 0 22785 0 557983 0 0 0 Jena Estes 238481 0 70000 0 51703 0 68574 0 22625 0 451383 0 0 0 Alissa T Fox 374684 0 190000 0 206984 0 143177 0 31896 0 946741 0 0 0 Paul John Julian Gerrard 216363 0 43100 0 1842 0 23653 0 17740 0 302698 0 0 0 Justine G Handelman 228197 0 90000 0 16773 0 60074 0 22078 0 417122 0 0 0 Trent T Haywood 24038 0 0 0 0 0 0 0 2237 0 26275 0 0 0 Kari J Hedges 205369 0 70000 0 5607 0 23386 0 13604 0 317966 0 0 0 Mitchell J Helfand 192730 0 76300 0 51904 0 90356 0 21332 0 432622 0 0 0 Robert J Kolodgy Jr 389716 0 195000 0 4176 0 32000 0 28254 0 649146 0 0 0 Allan M Korn 341365 0 290000 0 88194 0 213313 0 24610 0 957482 0 0 0 Shirley S Lady 214751 0 89000 0 31418 0 90923 0 13036 0 439128 0 0 0 W Scott Nehs 248120 0 0 0 1500 0 12500 0 13797 0 275917 0 0 0 William B O'Loughlin 264685 0 115600 0 145807 0 82589 0 29863 0 638544 0 0 0 Doug Porter 359003 0 195000 0 168065 0 64866 0 18935 0 805869 0 0 0 Cynthia P Rolfe 242020 0 52400 0 4458 0 8620 0 15862 0 323360 0 0 0 Maureen E Sullivan 349312 0 180000 0 115285 0 90692 0 33234 0 768523 0 0 0 Jennifer Vachon 224708 0 101100 0 24277 0 60480 0 20974 0 431539 0 0 0 Jody A Voss 217486 0 96800 0 40758 0 68929 0 23544 0 447517 0 0 0 Roger G Wilson 393807 0 175000 0 103698 0 118646 0 23510 0 814661 0 0 0 John Cerisano 213135 0 62500 0 12388 0 42104 0 24432 0 354559 0 0 0 Daniel A Engel 193161 0 55000 0 17036 0 88720 0 18615 0 372532 0 0 0 Carole R Flamm 250537 0 62700 0 18495 0 44298 0 14632 0 390662 0 0 0 Steven D Putziger 206933 0 65300 0 31377 0 45133 0 25615 0 374358 0 0 0 Mark A Talluto 209410 0 65800 0 2404 0 19706 0 17154 0 314474 0 0 0 Stephen Gammarino 16557 0 135000 0 709120 0 3790 0 0 0 864467 0 708840 0 SchJ_P01_S00_L01a 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 includethe use of chartered air carriers or first class travel on scheduled commercial flights under certain limited circumstances. SchJ_P01_S00_L03 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 Association's 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 committee's decisions are reported to the full Board during a regularly scheduled meeting. The Board deliberates on both matters. Extension of the period of the CEO's 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 committee's compensation decisions. The same committee of independent Plan executives annually receives the CEO's recommendations regarding the compensation to be paid to the officers. As with the CEO's compensation, the deliberations of this committee and its decisions to approve or modify the CEO's recommendation are based upon the results of an independent consultant's market research regarding comparable officer pay and the independent consultant's advice. SchJ_P01_S00_L04 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: William A. Breskin - 22,752; Paul F Brown - 2,141; William J Colbourne - 20,038; Frank E Coyne Jr - 66,162; John T Ericksen - 1,325; Jena Estes - 10,752; Alissa T Fox - 52,513; Justine Handleman - 5,811; Allan M Korn, MD - 127,635; Maureen E Sullivan - 5,954; Jennifer Vachon - 6,675; Jody A Voss - 8,640; Roger G Wilson - 15,912; John Cerisano - 1,671; and Scott Serota - 165,208. The combined total of imputed SERP included in column C = $513,194. SchJ_P01_S00_L07 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 employee's 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 Association's 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 preestablished 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 committee's deliberations regarding the establishment of the program, the selection of the performance factors and assessment of performance all include consultation and recommendation from a qualified independent compensation consultant based upon a market study of comparable programs for comparable executives. F Ruiz Directors Family 84248 Employee Salary 0 N Parker Officer Family 58240 Employee Salary 0 Health Intelligence Co LLC Officer-Vendor Director 19852052 Receipts - Contract Fees 0 Health Intelligence Co LLC Officer-Customer Director 4172205 Payment for Services 0 Consortium Health Plans Inc Director-Vendor Director 2560963 Payment for Services 0 BCS Insurance Company Officer-Vendor Director 691220 Payment for Insurance 0 Consortium Health Plans Inc Director-Customer Board 325500 Receipts - Contract Fees 0 BCS Life Insurance Co Director-Customer Board 261644 Receipts for Services 0 BCBS Venture Partners II LP Officer-Customer Officer 241604 Receipts for Services 0 BCBS Venture Partners LP Officer-Customer Officer 216379 Receipts for Services 0 SchL_P04_S00_L00 Schedule L, Part IV Contracting with vendors, of which officers or board members listed in Part VII are also officers or board members of the vendor, are subject to an independent competitive bidding process. F990_P06_S0A_L02 Form 990, Part VI, Section A, Line 2 Various BCBSA Board members (Directors) also sit on the board of Blue Cross and Blue Shield Association affliates F990_P06_S0A_L06 Form 990, Part VI, Section A, Line 6 Blue Cross and Blue Shield has thirty eight (38) independent member health care plan licensees operating in specified domestic service areas F990_P06_S0A_L07a Form 990, Part VI, Section A, Line 7a The governing body approves a nominating committee to oversee governing body elections F990_P06_S0A_L07b Form 990, Part VI, Section A, Line 7b Governing body decisions are approved according to the by-laws of the corporation F990_P06_S0B_L11b Form 990, Part VI, Section B, Line 11b Form 990's content and sources of information are reviewed by subject matter experts including, but not limited to, internal and external tax and accounting professionals and internal legal personnel. A copy of form 990 is presented to the board prior to filing. F990_P06_S0B_L12c 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 hot-line maintained through an independent organization. The results of the compliance program's effectiveness are reported to the 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. F990_P06_S0B_L15 Form 990, Part VI, Section B, Line 15 The compensation of the CEO and the continued retention of his services are approved each year by a committee of the Association's 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 committee's decisions are reported to the full Board during a regularly scheduled meeting. The Board deliberates on both matters. Extension of the period of the CEO's 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 committee's compensation decisions. The same committee of independent Plan executives annually receives the CEO's recommendations regarding the compensation to be paid to the officers. As with the CEO's compensation, the deliberations of this committee and its decisions to approve or modify the CEO's recommendation are based upon the results of an independent consultant's market research regarding comparable officer pay and the independent consultant's advice. F990_P06_S0C_L19 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 Association's Form 990 for the past three years 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 Association's favorable determination letter regarding its tax exempt status and materials comprising its exemption application are also available in this manner. If the Association's 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 Association's management. F990_P09_S00_L11g Form 990, Part IX, Line 11g Temporary Employees $29,104,490, Recruitment $716,939.65, Professional Services $81,787,592.42, External Printing & Graphics $3,374,033.58 F990_P11_S00_L09 Form 990, Part XI, Line 9 ASC 715, Other comprehensive income from pension plan obligations = -$1,233,663 + $150,000 subsidiary gross receipts +$64,652 pass through loss -$129,041 service fee revenue -$17,733.00 subsidiary net income = ($1,165,784) Health Services Foundation 225 North Michigan Avenue Chicago IL 60601 237011867 Education,Research IL 501(c)(3) 9 N/A 0 BC and BS Foundation on Health Care 225 North Michigan Avenue Chicago IL 60601 237164980 Education,Research IL 501(c)(3) 9 N/A 0 BCBSA Services Inc 225 North Michigan Avenue Chicago IL 60601 364176277 Int'l Licensing IL N/A C 20959 43906 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 BCBSA Services Inc i 129119 Actual cost plus markup