Form 990 for tax year 2022

Revenue

Part VIII, the statement of revenue.

• 2a · Program service revenue: FEDERAL EMPLOYEE PROGRAM

  total $279,383,587 · related or exempt $279,383,587

• 2b · Program service revenue: BLUECARD

  total $212,078,053 · related or exempt $212,078,053

• 2c · Program service revenue: OTHER SERVICES

  total $145,484,163 · related or exempt $138,716,641 · unrelated business $6,767,522 · excluded $0

• 2d · Program service revenue: FEE FOR SERVICES

  total $70,413,065 · related or exempt $70,413,065

• 2e · Program service revenue: BLUESNET

  total $20,573,295 · related or exempt $20,573,295

• 2f · All other program service revenue

  total $21,286,465 · related or exempt $21,286,465 · excluded $0

• 3 · Investment income

  total $5,276,895 · excluded $5,276,895

• 4 · Income from investment of tax-exempt bond proceeds

  total $0

• 5 · Royalties

  total $0

• 6a · Gross rents

  personal property $0

• 6c · Rental income or loss

  real property $0 · personal property $0

• 6d · Net rental income or loss

  total $0

• 7a · Gross sales of assets other than inventory

  other assets $2,649,797

• 7b · Less cost or other basis and sales expenses

  securities $0 · other assets $2,651,404

• 7c · Gain or loss

  securities $0 · other assets -$1,607

• 7d · Net gain or loss

  total -$1,607 · excluded -$1,607

• 8a · Fundraising events: gross income

  $0

• 8b · Fundraising events: direct expenses

  $0

• 8c · Net income from fundraising events

  total $0

• 9a · Gaming: gross income

  $0

• 9b · Gaming: direct expenses

  $0

• 9c · Net income from gaming

  total $0

• 10a · Gross sales of inventory

  $0

• 10b · Cost of goods sold

  $0

• 10c · Net income from sales of inventory

  total $0

• 11a · Other revenue: K-1 INCOME

  total $1,297,609 · related or exempt $0 · unrelated business $1,297,609 · excluded $0

• 11e · Other revenue, total

  $1,297,609

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $0

• 2 · Grants to domestic individuals

  total $0

• 3 · Grants to foreign organizations and individuals

  total $0

• 4 · Benefits paid to or for members

  total $0

• 5 · Compensation of officers, directors and key employees

  total $29,195,753 · program services $20,745,488 · management and general $8,450,265 · fundraising $0

• 6 · Compensation of disqualified persons

  total $0

• 7 · Other salaries and wages

  total $176,632,075 · program services $171,035,612 · management and general $5,596,463 · fundraising $0

• 8 · Pension plan contributions

  total $11,163,351 · program services $20,093,175 · management and general -$8,929,824 · fundraising $0

• 9 · Other employee benefits

  total $21,911,317 · program services $21,958,509 · management and general -$47,192 · fundraising $0

• 10 · Payroll taxes

  total $13,305,611 · program services $12,789,430 · management and general $516,181 · fundraising $0

• 11a · Fees: management

  total $0

• 11b · Fees: legal

  total $26,794,178 · program services $26,212,374 · management and general $581,804 · fundraising $0

• 11c · Fees: accounting

  total $2,340,291 · program services $2,340,291 · management and general $0 · fundraising $0

• 11d · Fees: lobbying

  total $3,577,811 · program services $3,577,811 · management and general $0 · fundraising $0

• 11e · Fees: professional fundraising services

  total $0

• 11f · Fees: investment management

  total $0

• 11g · Fees: other

  total $254,871,179 · program services $252,529,266 · management and general $2,341,913 · fundraising $0

• 12 · Advertising and promotion

  total $14,716,604 · program services $14,716,600 · management and general $4 · fundraising $0

• 13 · Office expenses

  total $7,101,422 · program services $7,003,873 · management and general $97,549 · fundraising $0

• 14 · Information technology

  total $76,507,959 · program services $75,603,884 · management and general $904,075 · fundraising $0

• 15 · Royalties

  total $0

• 16 · Occupancy

  total $13,678,836 · program services $13,188,358 · management and general $490,478 · fundraising $0

• 17 · Travel

  total $3,140,940 · program services $2,892,686 · management and general $248,254 · fundraising $0

• 18 · Travel or entertainment for public officials

  total $0

• 19 · Conferences, conventions and meetings

  total $4,410,532 · program services $4,047,251 · management and general $363,281 · fundraising $0

• 20 · Interest

  total $0

• 21 · Payments to affiliates

  total $0

• 22 · Depreciation, depletion and amortization

  total $20,090,658 · program services $19,642,498 · management and general $448,160 · fundraising $0

• 23 · Insurance

  total $9,187,720 · program services $9,031,390 · management and general $156,330 · fundraising $0

• 24a · Other expenses: MEMBERSHIP & SPONSORSHIP

  total $2,545,756 · program services $2,446,196 · management and general $99,560 · fundraising $0

• 24b · Other expenses: CONTRIBUTIONS - GENERAL

  total $3,980,261 · program services $3,954,761 · management and general $25,500 · fundraising $0

• 24c · Other expenses: BOOKS & PERIODICALS

  total $848,877 · program services $805,294 · management and general $43,583 · fundraising $0

• 24d · Other expenses: MISCELLANEOUS

  total $1,933,478 · program services $75,456 · management and general $1,858,022 · fundraising $0

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $1,527,245 · end of year $1,672,849

• 2 · Savings and temporary cash investments

  beginning of year $478,671,250 · end of year $643,531,678

• 3 · Pledges and grants receivable

  beginning of year $0 · end of year $0

• 4 · Accounts receivable

  beginning of year $64,509,202 · end of year $64,221,228

• 5 · Loans and receivables from officers and key people

  beginning of year $0 · end of year $0

• 6 · Loans and receivables from disqualified persons

  beginning of year $0 · end of year $0

• 7 · Other notes and loans receivable

  beginning of year $0 · end of year $0

• 8 · Inventories for sale or use

  beginning of year $0 · end of year $0

• 9 · Prepaid expenses and deferred charges

  beginning of year $26,626,551 · end of year $29,826,043

• 10a · Land, buildings and equipment: cost or other basis

  $113,210,309

• 10b · Land, buildings and equipment: accumulated depreciation

  $94,264,553

• 10c · Land, buildings and equipment, net

  beginning of year $17,900,040 · end of year $18,945,756

• 11 · Investments: publicly traded securities

  beginning of year -$34 · end of year $0

• 12 · Investments: other securities

  beginning of year $171,005,302 · end of year $170,339,939

• 13 · Investments: program-related

  beginning of year $0 · end of year $0

• 14 · Intangible assets

  beginning of year $17,977,416 · end of year $30,756,157

• 15 · Other assets

  beginning of year $45,032,227 · end of year $68,539,343

• 17 · Accounts payable and accrued expenses

  beginning of year $127,194,415 · end of year $136,129,684

• 18 · Grants payable

  beginning of year $0 · end of year $0

• 19 · Deferred revenue

  beginning of year $6,462,235 · end of year $4,338,418

• 20 · Tax-exempt bond liabilities

  beginning of year $0 · end of year $0

• 21 · Escrow or custodial account liability

  beginning of year $450,807,607 · end of year $589,188,537

• 22 · Loans and payables to officers and key people

  beginning of year $0 · end of year $0

• 23 · Secured mortgages and notes payable

  beginning of year $0 · end of year $0

• 24 · Unsecured notes and loans payable

  beginning of year $0 · end of year $0

• 25 · Other liabilities

  beginning of year $130,115,679 · end of year $17,787,459

• 27 · Net assets without donor restrictions

  beginning of year $108,669,263 · end of year $280,388,895

• 28 · Net assets with donor restrictions

  beginning of year $0 · end of year $0

Itemized on Schedule J with no Part VII listing of the same name on this return:

The filer's explanations (Part III)

FORM 990, SCHEDULE J, PART I, LINE 1A

AS AN ORGANIZATION SERVING A SYSTEM OF LOCALLY BASED INDEPENDENT PLANS OFFERING HEALTH INSURANCE IN ALL 50 STATES, DC AND PUERTO RICO, THE ASSOCIATION'S OFFICERS ARE EXPECTED TO MAINTAIN AN UNUSUALLY DEMANDING TRAVEL SCHEDULE. 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 THE CEO'S TRAVEL COMMITMENTS, INCLUDING TRAVEL TO UNDERSERVED REGIONAL DESTINATIONS. THESE POLICIES INCLUDE THE USE OF CHARTER AIRCRAFT AND FIRST CLASS TRAVEL ON SCHEDULED COMMERCIAL FLIGHTS UNDER CERTAIN LIMITED CIRCUMSTANCES. THE ASSOCIATION HAS DESIGNED A COMPREHENSIVE FINANCIAL AND SERVICE-RELOCATION PROGRAM TO ASSIST RELOCATING EMPLOYEES AND NEW HIRES WITH THE RELOCATION PROCESS. THE ASSOCIATION MAY PROVIDE A TAX GROSS UP ON ALL OR PART OF A RELOCATING EMPLOYEE'S TAXABLE RELOCATION EXPENSES IN ORDER TO ASSIST THE RELOCATING EMPLOYEE OR NEW HIRE FOR NEGATIVE TAX CONSEQUENCES DUE TO TAXATION OF RELOCATION EXPENSE REIMBURSEMENTS. THE EXPENSES ARE REIMBURSED AND INCLUDED IN TAXABLE COMPENSATION, IF APPLICABLE, IN ACCORDANCE WITH THE ASSOCIATION'S POLICY. TO FACILITATE BUSINESS MEETINGS WITH VISITING PLAN OFFICIALS AND OTHERS, AND TO FOSTER SOCIAL INTERACTION SERVING THE INTERESTS OF THE ASSOCIATION AND TO FOSTER THEIR GOOD HEALTH, THE ASSOCIATION REIMBURSES A LUNCHEON CLUB MEMBERSHIP FOR OFFICERS. THE EXPENSES ARE REIMBURSED AND INCLUDED IN TAXABLE COMPENSATION, IF APPLICABLE, IN ACCORDANCE WITH THE ASSOCIATION'S POLICY.

FORM 990, SCHEDULE J, PART I, LINE 3

THE COMPENSATION OF THE CEO AND THE CONTINUED RETENTION OF THAT PROFESSIONAL'S 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 COMPENSATION ARE BASED UPON THE RESULTS OF AN INDEPENDENT CONSULTANT'S MARKET RESEARCH REGARDING COMPARABLE OFFICER PAY AND THE INDEPENDENT CONSULTANT'S ADVICE.

FORM 990, SCHEDULE J, PART I, LINE 4A

TWO OFFICERS RECEIVED SEVERANCE PAY DURING 2022: MAUREEN SULLIVAN - 617,228 JUSTINE HANDELMAN - 577,240

FORM 990, SCHEDULE J, PART I, LINE 4B

AS REQUIRED BY THE INSTRUCTIONS TO FORM 990, SCHEDULE J, PART II, A HYPOTHETICAL SERP ACCRUAL OF ADDITIONAL VESTED BENEFITS 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 ACTUARIAL VALUE OF THE ADDITIONAL VESTED BENEFITS. ADDITIONAL VESTED BENEFITS UNDER THE SERP ARE TAXED AND INCLUDED IN FORM W-2 BASED ON INCOME TAX REGULATIONS, WHICH DIFFER FROM THE INSTRUCTIONS TO SCHEDULE J. BECAUSE THE INSTRUCTIONS TO SCHEDULE J SPECIFY THAT AMOUNTS REPORTED IN COLUMNS B(I) THROUGH B(III), I.E.,AMOUNTS REPORTED ON FORM W-2, SHOULD NOT BE REPORTED AGAIN IN COLUMN C OR D, THE AMOUNT OF IMPUTED SERP INCOME REPORTED IN FORM W-2 AND COLUMN B(III) WAS SUBTRACTED IN EACH CASE FROM THE HYPOTHETICAL SERP ACCRUAL OF ADDITIONAL VESTED BENEFITS. THE BALANCE OF THE HYPOTHETICAL ACCRUAL WAS INCLUDED IN COLUMN C FOR THE APPLICABLE REPORTABLE PERSONS. IN MARCH OF 2021, THE ASSOCIATION AMENDED THE SERP TO FREEZE BENEFIT ACCRUALS FOR ALL PARTICIPANTS AS OF DECEMBER 31, 2021. CURRENTLY, PARTICIPANTS ENTITLED TO RECEIVE SERP DISTRIBUTIONS WILL BE TAXED ON THEIR REMAINING IMPUTED INCOME THAT HAS NOT BEEN TAX PREVIOUSLY.

FORM 990, SCHEDULE J, PART I, LINE 7

THE ASSOCIATION MAINTAINS AN ASSOCIATION WIDE ANNUAL PERFORMANCE BONUS PROGRAM THAT ASSURES A PORTION OF EMPLOYEE'S 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'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 AND AN EXECUTIVE DIRECTOR PARTICIPATE IN SEPARATE LONG TERM INCENTIVE BONUS PROGRAMS. AS WITH THE REGULAR PERFORMANCE BONUS PROGRAMS, PAYOUTS UNDER THESE LONG TERM INCENTIVE PROGRAMS REFLECT THE EXTENT TO WHICH PRE-ESTABLISHED PERFORMANCE GOALS ARE REACHED. HOWEVER, UNLIKE THE ANNUAL PERFORMANCE BONUS PROGRAM, THE LONG TERM INCENTIVE PROGRAMS OPERATE ON A MULTI-YEAR CYCLE TO ASSURE THAT THE CEO AND AN EXECUTIVE DIRECTOR HAVE INCENTIVES THAT LOOK BEYOND THE IMMEDIATE YEAR. UNDER THE CEO'S 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. UNDER THE EXECUTIVE DIRECTOR'S PROGRAM, THE PERFORMANCE MEASUREMENT IS BASED ON THE PERFORMANCE OF SPECIFIED INVESTMENTS.

Related corporations and trusts

Part IV: related organizations taxable as a corporation or trust.

• BLUE CROSS BLUE SHIELD BENEFIT CORP

  C CORP · COMMUNITY HEA · IL · 100% owned · share of income $10,612 · share of assets $9,046,772 · controlled entity

  Directly controlled by NA