Managed Health Inc

“Healthfirst health plan inc. (hfhp), contracts with hf management services, llc (hfms), (a related organization) to provide all of its management and administrative services. The not-for-profit entity does not maintain its own staff or office space; these are provided by hfms. Hfms charges a percent of premiums on a per member per month basis or a flat fee per member per month. The arrangement is approved by state regulators. All officers, key employees, and highest compensated employees were paid by, and worked for, hfms a management company which provides management services for multiple entities. None of the individuals listed earned any compensation from hfhp.”

“Healthfirst, Inc. has the right to appoint the members of the Board of Directors of Healthfirst Health Plan, inc.”

“Healthfirst, inc., a related not-for-profit organization, has the right to appoint the members of the board of directors of healthfirst health plan, inc.”

“Some decisions of the governing body, should they occur, are subject to approval by other entities: * distribution of the organization's net assets requires state regulatory approval * certain changes to premium rates are subject to federal or state regulatory approval * expansion to other managed care businesses requires state licensure * management fee rate changes require approval from the management company and state regulators”

“The 990 is prepared by the hf management services, llc (hfms) corporate finance department staff and then reviewed by the hfms vice president controller. Secondary reviews are also performed by the hfms chief legal officer and chief financial officer. The draft 990 is then reviewed by an independent accounting firm. The draft 990 is then presented to the board of directors for review. The final 990 is submitted after the board of directors reviews it.”

“A conflict of interest disclosure statement is completed annually by each board member, officer and key employee. A nominated board member who does not complete the statement within the calendar year will not be to carry out duties. The same applies to an officer or key employee who does not complete the appropriate disclosures. Any disclosure of a conflict or potential conflict is reviewed by the chief compliance officer. Conflicts are addressed by examining the relationship of the individual to the organization and the nature of the disclosure. Guidance is provided to the necessary parties and action is taken, including but not limited to disclosure and recusal from decision-making, modifications to business agreements, changes in vendors or replacement of the director, officer or key employee with a non-conflicted individual.”

“Because the reporting organization did not compensate any officers or employees, the organization has responded "no." however, the compensation of the ceo, other officers and key employees is determined by the compensation committee of hf management services, llc, (a related organization) the management company that provides all services to hfhp. The committee consists only of hfms member hospital executives (who are not employed nor compensated by hfms or any of its affiliates). The process for determining compensation is described in the committee's charter. The process includes engagement of an outside human resources consulting firm to conduct a comparability analysis. The analysis includes comparable ranges of executive compensation using the industry classification. The committee meets prior to implementation of any change in compensation. Contemporaneous minutes of each meeting are prepared.”

“The organization makes its governing documents, conflict of interest policy, and financial statements available to the general public by providing copies on request for inspection at its corporate offices.”

“$ 5,396,854 unrealized gain related to equity investment was included in net income according to accounting standards update ("asu") 2016-01 in audited financial statement and for purposes of 990 this amount was reported and included in net unrealized gains (losses) on investments.”

“Other changes in net assets - equity gain in investment in healthfirst insurance co. Inc. - a 50% owned subsidiary: $ 1,774,448. Total other changes in net assets $ 1,774,448.”

“The selection of the independent auditor is administered by the audit risk and compliance committee of the board of directors of healthfirst, inc. (a related organization).”