Kaiser Foundation Health Plan Inc.

“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 benefit reporting 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 National Compliance Office regularly and consistently 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 process 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 informs 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.”

“Forms 990 are Available on GuideStar.org website.”

“Public Inspection Governing documents - are available from the Secretary of State and Department of Managed Health Care and maintained on the state agency website or upon request. Conflict of Interest policy is available on KP website under vendor Principles of Responsibility or upon request. Financial Statements are on file with the state regulatory agency. Combined data is published for Kaiser Foundation Health Plan Inc. and subsidiaries and Kaiser Foundation Hospitals and Subsidiaries with audit opinion by KPMG. 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.”

“Revenue less expense disclosure current year revenue less expenses $ 364,198,895 otti (note 1) <141,395,542> gain/loss on investments - book 85,577,707 gain/loss on investments - tax < 28,069,390> _________________ unaudited standalone gaap revenue less expenses $ 280,311,670 note 1: other than temporary impairment (otti) of investment recognized for financial statement purposes, which will be tax reported when realized.”

“FOREIGN INVESTMENTS Kaiser Foundation Health Plan, Inc. (KFHP, Inc.)'s foreign investments are held in a US third party custodian bank. KFHP, Inc. personnel can not directly access the foreign investments.”

“Other changes in net assets or fund balances Change in Donated Capital (1,962) Change in Pension & retirement Liabilities 1,975,730,867 Capital Transfers - CY 3,295,276 Gain/Loss on Sale of Investments - Tax (28,069,390) Gain/Loss on Sale of Investments - Book 85,577,707 Other Than Temporary Impairment (141,395,541) __________________ Total 1,895,136,957”

“- Exempt purpose achievements - 2013 COMMUNITY BENEFIT SUMMARY REPORT KAISER FOUNDATION HEALTH PLAN, INC. LEGAL AFFILIATION WITH KAISER FOUNDATION HOSPITALS - KAISER FOUNDATION HOSPITALS (KFH) AND KAISER FOUNDATION HEALTH PLAN, INC. (KFHP, INC.) ARE SEPARATE CORPORATIONS GOVERNED BY IDENTICAL BOARDS OF DIRECTORS. KFHP, INC. PROVIDES AND ARRANGES COMPREHENSIVE HEALTH CARE SERVICES FOR MEMBERS ON A PREDOMINANTLY PREPAID BASIS. KAISER FOUNDATION HEALTH PLAN, INC. FULFILLS ITS CONTRACTUAL OBLIGATIONS TO GROUP AND INDIVIDUAL MEMBERS BY CONTRACTING WITH KFH AND PERMANENTE MEDICAL GROUP PHYSICIANS TO PROVIDE THE REQUIRED HEALTH CARE SERVICES TO ITS MEMBERS THROUGH MARKET LEADING PERFORMANCE IN QUALITY AND SERVICE. KAISER FOUNDATION HEALTH PLAN, INC. PRIMARILY CONDUCTS ITS OPERATIONS IN THE STATES OF CALIFORNIA AND HAWAII. ADDITIONALLY, KFHP, INC. OWNS FOUR PRINCIPAL OPERATING TAX-EXEMPT SUBSIDIARY HEALTH PLANS - KAISER FOUNDATION HEALTH PLAN OF COLORADO; KAISER FOUNDATION HEALTH PLAN OF GEORGIA, INC.; KAISER FOUNDATION HEALTH PLAN OF THE MID-ATLANTIC STATES, INC.; AND KAISER FOUNDATION HEALTH PLAN OF THE NORTHWEST. KAISER FOUNDATION HEALTH PLAN, INC.'S COMMITMENT TO THE COMMUNITY - MEMBERSHIP IN KFHP, INC. AND ITS HEALTH PLAN SUBSIDIARIES 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 A NONPROFIT ORGANIZATION, KAISER FOUNDATION HEALTH PLAN, INC. IS COMMITTED TO IMPROVING THE HEALTH OF COMMUNITIES BEYOND ITS ENROLLED MEMBERSHIP. ANNUAL DIRECT COMMUNITY BENEFIT INVESTMENTS (DCBI) ARE A FUNDAMENTAL EMBODIMENT OF THE ORGANIZATION'S ONGOING COMMITMENT TO IMPROVE GENERAL WELLBEING 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, KFHP, INC. 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": A - CARE AND COVERAGE FOR LOW-INCOME PEOPLE - CREATES AND SUPPORTS PROGRAMS THAT LOWER THE FINANCIAL BARRIERS FOR THE UNDER- AND UNINSURED. B - 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. C - 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. D - 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, INC. IN 2013, KAISER FOUNDATION HEALTH PLAN, INC. SERVED OVER 7.3 MILLION MEMBERS AND EXPENDED $753 MILLION (AT COST, NET OF $587 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. A - CARE AND COVERAGE FOR LOW-INCOME PEOPLE IN 2013, KAISER FOUNDATION HEALTH PLAN, INC. EXPENDED APPROXIMATELY $687 MILLION (AT COST, NET OF $587 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 UNINSU”

“Kaiser foundation health plan, inc. Designs, delivers, and sustains long-term programs that engage communities in work to improve conditions in their neighborhoods, workplaces, and schools. The community health initiatives (chi) stream of work started with a focus on nutrition and physical activity. The focus has since expanded to address community economic development, environmental sustainability, and neighborhood safety - additional factors that are keys to promoting health communities. Kfhp, inc. Sponsored over $942 thousand in charitable contributions supporting total community health initiatives in 2013. B.1 healthy eating active living (heal) programs the heal initiative combats obesity by promoting place-based healthy eating and active living programs and interventions in the community. The initiative supports community health initiatives and coalitions effecting medical, environmental, and social community-level changes such as empowering residents to eat healthy foods, changing physical and social environments to promote physical activity, and supporting policy changes to reduce racial and ethnic health disparities, particularly those related to poor nutrition and inactivity. Kfhp, inc. In hawaii began its first fresh day farmers' market at the honolulu clinic in june 2004. Since then, three other markets have been opened. Markets are open to the community, members, and staff, and are unique from other farmers' markets on the island in providing health promotion and education information at each site. Resolution cd-13-1 was passed by the city and county of honolulu in 2013 to authorize the use of electronic benefits transfers (ebt) in city-run farmers' markets. Ebt is an electronic system that automates delivery, redemption, and reconciliation of public assistance benefits. Kfhp, inc. Of hawaii established the first ebt-based city farmers' market to demonstrate the "how to". B.2 child passenger safety program the keiki passenger safety (kps) program offered at kfhp, inc.'s waipio and mapunapuna clinics provides free monthly car seat checks. Although passenger restraints save lives, at least 80% of child passenger restraints are not used properly. Staff who are trained and certified as car seat technicians by safe kids and the national highway traffic safety administration provide education on the proper use of car seats, booster seats, and seat belts for children from infancy to adulthood. B.3 grants and donations examples of grants awarded in 2013 include the following: - in 2013, kaiser foundation health plan, inc. Awarded a charitable contribution in the amount of $650,000 to community partners. This organization supports the thriving schools initiative in its effort to promote nutrition and health programs through small grants to schools nationwide. These small grants (ranging in size from $500 to $5,000) are intended to build school staff capacity through training, and permit purchases of necessary equipment to improve nutrition and physical activity at individual schools. The thriving schools initiative aims to use short-term grantmaking as a means to jumpstart a culture of healthy eating and physical activity at schools interested in funding and nurturing these kinds of programs. - kfhp, inc. In hawaii awarded a grant to and collaboration with the appleseed center for law & economic justice to maximize participation by eligible state residents in the supplemental nutrition assistance program (snap) and the earned income tax credit. Residents of hawaii miss out on over $237 million in unclaimed federal snap benefits and $60 million in earned income tax credits every year, ranking hawaii 46th among states nationwide. C - safety net partnerships in 2013, kaiser foundation health plan, inc. Expended approximately $1.4 million to support safety net partnerships. The following are examples of grants awarded in accordance with the objectives of the safety net partnerships stream of work during 2013: - the national as”