Kaiser Foundation Health Plan of the Northwest

“Kaiser foundation health plan, inc. is the sole member. Upon dissolution, remaining assets shall be distributed to a 501(c)(3) organization.”

“KFHP, INC. appoints the directors (and fills vacancies and has authority to remove directors). The same 15 individuals who comprise the board of directors of KFHP also serve as the 15 directors of KFHP-CO, OH, NW, MAS.”

“THE FOLLOWING ACTIONS OF THE CORPORATION REQUIRE APPROVAL OF THE SOLE MEMBER: A) REMOVAL OF THE CHAIRMAN OF THE BOARD OR ANY PRESIDENT; B) Amendment of article d, section d-4 of the bylaws - election and term of office of directors.”

“form 990 review process 1. Key information necessary for the preparation of the tax return is obtained and/or confirmed with internal sources including regional finance, executive compensation, community benefits, treasury, government relations, and legal. 2. Community benefits details are presented to the community benefit committee of the board for review. 3. The complete tax return is reviewed and signed by a Pricewaterhousecoopers LLP tax advisor. 4. The complete tax return is reviewed and signed by an officer or a member of management designated by an officer. 5. A copy of the return is provided to each board member prior to filing.”

“Compliance Enforcement: A. Regularly and Consistently Monitors Compliance with the Conflicts of Interest Policy - Kaiser Permanente regularly monitors compliance with the Conflicts of Interest Policy in 3 key ways: 1. The Kaiser Permanente Compliance Hotline is available to all employees and vendors to report actual or potential conflicts of interest. All calls are answered by a third party and provided to Kaiser Permanente's National Compliance office for review and appropriate action. Employees can report anonymously. Retaliation is prohibited. Reports of actual or potential Conflicts of Interest are generated and investigations are conducted as required and information is tracked and trended to determine if additional guidance is required to avoid or manage conflicts of interest. Compliance Hotline Reports are provided for review and action to the Kaiser Foundation Health Plan/Hospitals Boards of Directors annually. 2. The National Compliance Office and Internal Audit Services annually review the directors', officers', key employees', and executives' Annual Conflicts of Interest Questionnaire disclosures and provide direction on any investigations required. Investigations are documented, tracked and trended to determine if additional controls or education is required. In addition, Conflicts of Interest Questionnaire Reports are provided for review and action to the Kaiser Foundation Health Plan/Hospitals Boards of Directors annually; and 3. Annually, as a component of the external audit, KPMG reviews the Annual Conflicts of Interest Questionnaires completed by Directors, Officers, Key Employees, and Executives, and actions taken as a result of the disclosures. The results of the annual audit, including any findings in this area are presented to the Kaiser Foundation Health Plan/Hospitals Audit and Compliance Committee. B. Regularly and Consistently Enforces Compliance with the Conflicts of Interest Policy - To ensure consistency in the enforcement of the policy Kaiser Permanente uses the following steps as a general guideline: 1. Represented employees are subject to any corrective/disciplinary action provisions described in specific regional/national collective bargaining agreements and/or organizational policies and practices. 2. Kaiser Permanente notifies employees of the National Human Resources Policy No. 14. Corrective/Disciplinary Action Policy during new employee orientation and in annual compliance training. 3. In the event that it is necessary to discipline any employee because of, but not limited to, failure to comply with applicable legal/regulatory requirements, Kaiser Permanente policies and procedures, or the Principles of Responsibility, or for unsatisfactory performance or misconduct, coaching/counseling and/or corrective/disciplinary action may include, but is not limited to: - Oral discussion and/or warning by the employee's immediate supervisor or higher level manager to correct the problem; - Written notice, with or without final warning; - Paid or unpaid suspension, with or without final warning; - Termination of employment.”

“Compensation Determination: The executive compensation program is designed to recruit, retain and motivate qualified senior management personnel. Senior management personnel have a significant impact on the strategic and policy direction and results of the organization. Therefore, the executive compensation program is, to a significant degree, performance-based. The compensation program is reviewed annually by the Compensation Committee of the Board of Directors which evaluates and approves, prior to payment, all programs and payments to CEO, Executive Director and top management officials (executives). Base pay for executive positions is established at a level comparable to the relevant market. In addition, other components of the compensation program bear 'at-risk' features designed to focus on strategically important performance goals and to assist in attracting and retaining top performers. The executive compensation program is targeted at the median of the comparable external market in which the organization competes for executive leadership. Evaluation of comparable pay data is performed by an Independent Compensation, Benefit & Human Resource Consulting firm. The compensation program focuses on objectives in the areas of quality of member care and service, financial soundness, and the community and social mission of the organization.”

“Available on Guidestar.org website”

“Public Inspection Copy: Governing documents - are available from the Department of Insurance and maintained on the state agency website or upon request. COI is available on KP website under vendor Principles of Responsibility or upon request. Financial Statements are on file with state insurance agency on a statutory basis (stand alone entity). Combined data is published for Kaiser Foundation Health Plan Inc. and subsidiaries and Kaiser Foundation Hospitals and Subsidiaries with audit opinion by KPMG and is available upon request. To request copies contact: Vice President - Tax Services Kaiser Foundation Health Plan and Hospitals One Kaiser Plaza, Suite 15L Oakland, CA 94612.”

“Hours for Related Organization: Individuals who are both officers and members of Boards of Directors work full time as employees as well as fulfill their board assignment. All officers work full time in their employee capacity. Full time work may require in excess of the traditional 40 hour week. Given the integrated nature of our organization, employees may provide support for various Kaiser Permanente companies. The average hours per week reported for the filing organization and related organizations was estimated.”

“2013 Community Benefit Report KAISER FOUNDATION HEALTH PLAN OF THE NORTHWEST KAISER FOUNDATION HEALTH PLAN OF THE NORTHWEST'S COMMITMENT TO THE COMMUNITY KAISER FOUNDATION HEALTH PLAN OF THE NORTHWEST (NORTHWEST HEALTH PLAN OR KFHP-NW) PROVIDES AND ARRANGES COMPREHENSIVE HEALTH CARE SERVICES FOR MEMBERS ON A PREDOMINANTLY PREPAID BASIS. ITS CONTRACTUAL OBLIGATIONS TO GROUP AND INDIVIDUAL MEMBERS ARE FULFILLED BY CONTRACTING WITH KAISER FOUNDATION HOSPITALS AND PERMANENTE PHYSICIANS TO PROVIDE THE REQUIRED HEALTH CARE SERVICES. KFHP-NW STRIVES FOR EXCELLENCE IN SERVING ITS MEMBERS THROUGH MARKET-LEADING PERFORMANCE IN QUALITY AND SERVICE. AS A SUBSIDIARY OF KAISER FOUNDATION HEALTH PLAN, INC. (KFHP-INC.), MEMBERSHIP IS AVAILABLE WITHOUT REGARD TO AGE, SEX, RACE, RELIGION, OR NATIONAL ORIGIN, OR TO THE INDIVIDUAL'S ABILITY TO PAY. HEALTH PLAN MEMBERS ARE BROADLY REPRESENTATIVE OF THE COMMUNITIES SERVED. ONCE ENROLLED, A MEMBER MAY MAINTAIN MEMBERSHIP REGARDLESS OF HEALTH OR EMPLOYMENT STATUS. AS RELATED NONPROFIT ORGANIZATIONS, KAISER FOUNDATION HEALTH PLAN, INC. AND KAISER FOUNDATION HEALTH PLAN OF THE NORTHWEST ARE COMMITTED TO IMPROVING THE HEALTH OF COMMUNITIES BEYOND ENROLLED MEMBERSHIP. ANNUAL DIRECT COMMUNITY BENEFIT INVESTMENTS (DCBI) ARE A FUNDAMENTAL EMBODIMENT OF THE ORGANIZATIONS' ONGOING COMMITMENT TO IMPROVE GENERAL WELL-BEING WITHIN THE BROADER COMMUNITY. THESE INVESTMENTS RESULT IN INTENTIONAL, PLANNED, BUDGETED, MEASURABLE, AND ACCOUNTABLE BENEFITS INTENDED TO ADDRESS MANY OF THE HEALTH CHALLENGES FACED AT THE INDIVIDUAL, LOCAL, STATE, AND NATIONAL LEVELS. IN 2007, KAISER FOUNDATION HEALTH PLAN, INC.'S BOARD OF DIRECTORS REFINED THE FOCUS OF THE ORGANIZATIONS' COMMUNITY BENEFIT PROGRAM AND ESTABLISHED THE FOLLOWING FOUR PRIORITY AREAS WHICH HAVE COME TO BE KNOWN AS "STREAMS OF WORK": - CARE AND COVERAGE FOR LOW-INCOME PEOPLE - CREATES AND SUPPORTS PROGRAMS THAT LOWER THE FINANCIAL BARRIERS FOR THE UNDER- AND UNINSURED. - COMMUNITY HEALTH INITIATIVES (CHI) - SEEKS TO MEASURABLY IMPROVE THE HEALTH OF THE COMMUNITIES WE SERVE. DESIGNS, DELIVERS, AND SUSTAINS LONG-TERM PROGRAMS THAT ENGAGE COMMUNITIES IN WORK TO IMPROVE CONDITIONS IN THEIR NEIGHBORHOODS. - SAFETY NET PARTNERSHIPS - BUILDS PARTNERSHIPS WITH COMMUNITY CLINICS, LOCAL HEALTH DEPARTMENTS, AND PUBLIC HOSPITALS. PROVIDES FUNDING, TECHNICAL ASSISTANCE, DISSEMINATION OF CARE MANAGEMENT AND QUALITY IMPROVEMENTS TECHNOLOGY TO HELP IMPROVE CARE AND EXPAND TREATMENT CAPACITY FOR VULNERABLE POPULATIONS. - DEVELOPING AND DISSEMINATING KNOWLEDGE - IMPROVES HEALTH CARE BY SHARING OUR KNOWLEDGE - EDUCATING PRACTITIONERS, ADVANCING RESEARCH, EMPOWERING CONSUMERS AND INFORMING POLICYMAKERS ABOUT EVIDENCE BASED CARE AND HEALTH. THE FOLLOWING ARE DETAILS OF COMMUNITY BENEFIT ACTIVITIES PROVIDED BY KAISER FOUNDATION HEALTH PLAN OF THE NORTHWEST IN 2013, NORTHWEST HEALTH PLAN SERVED OVER 495,000 MEMBERS AND EXPENDED $68.8 MILLION (AT COST, NET OF $33.4 MILLION OF RELATED REVENUES) TO SUPPORT COMMUNITY BENEFIT ACTIVITIES. THE FOLLOWING SUMMARIZES MANY OF THE SIGNATURE COMMUNITY BENEFIT PROGRAMS AND SERVICES GROUPED ACCORDING TO THE NATIONAL STREAMS OF WORK. CARE AND COVERAGE FOR LOW-INCOME PEOPLE IN 2013, NORTHWEST HEALTH PLAN SPENT APPROXIMATELY $66.9 MILLION (AT COST, NET OF $33.4 MILLION OF RELATED REVENUES) TO ADDRESS THE FINANCING AND DELIVERY OF HEALTH CARE FOR POPULATIONS VULNERABLE DUE TO SOCIO-ECONOMIC STATUS, ILLNESS, ETHNICITY, AGE OR OTHER FACTORS. PROGRAM BENEFICIARIES (UNDER- AND UNINSURED) RECEIVED FREE OR DISCOUNTED CARE IN A KAISER PERMANENTE FACILITY OR BY A KAISER PERMANENTE PROVIDER. CHARITABLE CARE (MEDICAL FINANCIAL ASSISTANCE AND CHARITABLE HEALTH COVERAGE PROGRAMS) IN OREGON AND WASHINGTON, NORTHWEST HEALTH PLAN PROVIDES CHARITY CARE TO LOW-INCOME VULNERABLE POPULATIONS THROUGH THE MEDICAL FINANCIAL ASSISTANCE AND CHARITABLE HEALTH COVERAGE PROGRAMS. IN 2013, NORTHWEST HEALTH PLAN SPENT $23.2 MILLION (AT COST, NET OF $390 THOUSAND OF RELATED REVENUES”

“The following are three of the ways that northwest health plan contributed resources to support nonprofit safety net organizations during 2013. 1) volunteer clinics - these events encourage, engage, and assist kaiser permanente staff who volunteer their skills with nonprofit healthcare organizations. A major volunteer program has become synonymous with martin luther king jr. Day when staff are assigned to various nonprofit medical clinics which are typically closed for services on this holiday. This permits the facilities to serve a greater number of the community with their healthcare needs. 2) dental program - this initiative provides support staff and facilities for the provision of much needed dental care for under- and uninsured in cowlitz, lewis, and wahkiakum counties. Professional services are provided by dental faculty and students of the university of washington dental school and clinics are held approximately four times per year. 3) free dental care days for kids - several of northwest health plan's dental offices provide free dental care for kids one or two days each year. Typically, these clinics are held on saturdays, and children are referred by school nurses or other community resources. Other community benefit investments during 2013, northwest health plan spent $1.8 million on other community benefit activities and programs beyond the national streams of work. This includes the administrative expenses of a community benefit department dedicated to supporting regional community benefit programs and services and coordinating related initiatives. Environmental stewardship poor environmental quality contributes to disease and economic insecurity. Kaiser foundation health plan, inc. Has committed itself to protecting and improving the natural environment as a key component of its mission to improve the health of the communities it serves. Although costs associated with this initiative are not included in the dollars reported in direct community benefit investments, efforts in this area contribute to advancing a broader vision emphasizing healthy people and healthy environments. To fulfill this commitment, kaiser foundation health plan, inc. Maintains a governance structure for environmental stewardship that enables the organization to continuously improve its performance. This structure includes clearly defined roles, responsibilities, plans, and routines, and has resulted in five organizational focus areas that have been selected based on their ability to have the most impact on the environmental forces that shape environmental and human health: - finding safe alternatives to harmful industrial chemicals - responding to climate change - promoting sustainable farming and food choices - reducing, reusing, and recycling to eliminate waste - conserving water in each of these focus areas, kaiser foundation health plan, inc. Has established ambitious goals (including a target to reduce total greenhouse gas emissions by 30% by 2020, compared to our 2008 baseline), implemented initiatives, achieved measurable improvements, obtained external assurance of performance, and regularly reported progress to the board of directors, staff, and the public. By replacing paper medical charts and digitizing x-ray images through the electronic medical record system, northwest health plan is also contributing to the avoidance of approximately 1,000 tons of paper waste and 200,000 pounds of x-ray film per year. During 2013, key performance indicators for kaiser foundation health plan of the northwest included: - reducing total greenhouse gas emissions (metric tons co2e/gross square foot) by 5% compared to the 2008 baseline for all facilities and assets under kfhp-nw's operational control. - recycling, reusing, or composting approximately 40% of the waste generated in kfhp-nw's facilities. - increasing spending on "sustainable food" (as defined by the green guide to health care) to approximately 18% of overall spending on food. - identif”

“Other changes in net assets or fund balances: Change in Other Comprehensive Income $ 353,897,875 Gain/loss on sale of investments - tax (4,071,767) Gain/loss on sale of investments - book 4,962,194 Other than temporary impairment loss (6,148,014) TOTAL $ 348,640,288”

“Purchased Medical Service $ 356,881,741”