Magellan Behavioral Care of Iowa, Inc.111111111111 111111111111111111111111111111 o 0 0 0 0 2 0 11111111111111111111111111111111111111 0100102 quarterly statement as of …

QUARTERLY STATEMENT

OF THE

Magellan Behavioral Care of Iowa, Inc.

OF

West Des Moines

IN THE STATE OF

Iowa

TO THE

INSURANCE DEPARTMENT

OFTHE

STATE OF

AS OF

JUNE 30. 2016

HEALTH

2016

111111111111 111111111111111111111111111111 o 0 0 0 0 2 0 11111111111111111111111111111111111111 0100102

QUARTERLY STATEMENT AS OF JUNE 3D, 2016

OF THE CONDITION AND AFFAIRS OF THE

Magellan Behavioral Care of Iowa, Inc. NAIC Group Code 00000 00000 NAIC Company Code __ -,0"0",0,,,0,,0 __ Employer's ID Number __ "22"-",3,,34:c1,,8,,,5,,,0 __

(Current Period) (Prior Period)

Organized under the Laws of _______ .....!Io"'w"'a"-______ ~, State of Domicile or Port of Entry Iowa

Country of Domicile United States

Licensed as business type: Life, Accident & Health [ J PropertyfCasualty [ ] Hospital, Medical & Dental Service or Indemnity [

Dental Service Corporation [ Vision Service Corporation { Health Maintenance Organization [ ]

Other [X I Is HMO Federally Qualified? Yes [ I No [ I Incorporated/Organized 05105/1994 Commenced Business 03/01/1995

Statutory Home Office 2600 Westown Parkway, Suite 200 (Street and Number)

Main Administrative Office 2600 Westown Parkway. Suite 200 West Des Moines. IA. US 50266 515-223-0306 (Street and Number) (City or Town, State, Country and Zip Code) (Area Code) (Telephone Number)

Mail Address P.O. Box 71129 ------I~~~~i~i:'i;,i;";~~~;j------(Street and Number or P.O. Box)

Primary Location of Books and Records 2600 Westiwn Parkway, Suite 200 West Des Moines, IA. US 50266 515-223-0306

Internet Web Site Address

Statutory Statement Contact

(Street and Number)

Wendy Warren (Name)

(City or Town, State, Country and Zip Code)

N/A (Area Code) (Telephone Number)

314-387-5044

[email protected] (Area Code) (Telephone Number) (Extension)

314-387-5407

Name

Anne McCabe Brian Frey

Margie Smith Charles Wadle

Andrew Cummings William Grimm

(E-Mail Address)

ntle President Treasurer

OFFICERS Name

Andrew Cummings

OTHER OFFICERS Vice President William Grimm

Medical Director

DIRECTORS OR TRUSTEES Angela Arroliga Jonathan Rubin

Jon Grate

ss

(FAX Number)

Title Secretary

Chief Financial Officer

Anne McCabe

The officers of this reporting entity being dUly sworn, each depose and say that they are the described officers of said reporting entity, and that on the reporting period stated above, all of the herein described assets were the absolute property of the said reporting entity, free and clear from any liens or claims thereon, except as herein stated, and that this statement, together with related exhibits, schedules and explanations therein contained, annexed or referred to, is a full and true statement of all the assets and liabilities and of the condition and affairs of the said reporting entity as of the reporting period stated above, and of its income and deductions therefrom for the period ended, and have been completed in accordance with the NAIC Annual Statement Instructions and Accounting Practices and Procedures manual except to the extent that: (1) state law may differ; or, (2) that state rules or regulations require differences in reporting not lated to accounting practices and procedures, according to the best of their information, knowledge and belief, respectively. Furthennore, the scope of this attes 'on e described officers also includes the related corresponding electronic filing with the NAIC, when required, that is an exact copy (except for formatting differences electronic filing) of the enclosed statement. The electronic filing may be requested by various regulators in lieu of or in addition to the enclosed statement.

~~~@U Anne McCabe

President Andrew

Secretary

SubSCribed and swom to OOtore rnr this

~daYOf -1.0\~ ~Q\£

~~-~'

ANITA ISKENDERIAN NOTARY PUBLIC

State of Connecticut My Commission Expires

June 3D, 2019

State of: Connecticut County of: Hartford Subscribed ~~+ to before me this ~ay of in the year 20 ~ to

~~~ KimM. Kennedy, N~ My Commission Expires Aug. 31, 2019

Brian Frey' Treasurer

a. Is this an original filing?

b.lfno:

Yes[X[Nc[

1. State the amendment number 2. Date filed 3. Number of pages attached

Subscri.Qed and ;:;:rn to before me this_D_day 0 '.,Iea'i MI(4

!f~9f1~

YMAN M. DUBOSE Nowy PUIIIlc • NoIIty Sill

Stilt or MlaIGUII. St CllIIIII A:ouaIy CommllliOn " t482l1a

My Comm[sslon ElIpim ./11122.2018

STATEMENT AS OF JUNE 30, 2016 OF THE Magellan Behavioral Care of Iowa, Inc.

1. Bonds __

2. Stocks:

2.1 Preferred stocks __

2.2 Common stocks ..

3. Mortgage loans on real estate:

3.1 First liens __

3.2 Other than first liens ..

4. Real estate:

4.1 Properties occupied by the company (less

$ _________ ................. encumbrances) .... .

4.2 Properties held for the production of income

(less $ ........... __________________________ encumbrances) __

4.3 Properties held for sale (less

$ ...... __________ encumbrances) __

5. Cash ($ ...................... (13.303) ). eash equivalents ($ __________________ 35,333,474

and short-term investments ($ ___ 31,145,843 ) __ _

ASSETS

Assets

.............. 17,059,22£

......... .. 66,466,014 6. Contract loans (including $ ...... ________________ premium notes) .....

7. Derivatives .. ........ ......... ............. 0

8. Other invested assets .. . ....................... 0

9. Receivables for securities __

10. Securities lending reinvested collateral assets ...

Current Statement Date

2

Nonadmitted Assets

3

Net ~dmitted ~sets {Cols.1 - 21

.17,059,226

... . ........... 0

.................. 0

..................... 0

...................... 0

..............0

..... 66,466.014

.... ..... 0

...................... 0

...................... 0

4

December 31 Prior Year Net

Admitted Assets

. .27 . 208 . 488

........... 0

........ 0

........... 0 o

........... 0

........... 0

... ..115,182,104 o

. ... 0 . ....................... ....... 0

o .. 0

11. Aggregate write-ins for invested assets ..... . ................................. 0 ................................. 0

..................... 0

................ 0 ................0 ........... 0

12. Subtotals, cash and invested assets (Lines 1 to 11) __ . ................ 83,525,239 ................. 0 .... 83.525,239 ... ..142.391.192 13. Title plants less $ ___ charged off (for Title insurers

only~ __ _

14. Investment income due and accrued ..

15. Premiums and considerations:

15.1 Uncollected premiums and agents' balances in the course of

collection .. __

15.2 Deferred premiums. agents' balances and installments booked but

deferred and not yet due (including $ .......... ___________________________ . .eamed

but unbilled premiums) __ _

15.3 Accrued retrospective premiums ($ ___________________________________ . __ .. ) and

contracts subject to redetermination ($ _________ .. _ ........................ ___ ) __

16. Reinsurance:

16.1 Amounts recoverable from reinsurers __

16.2 Funds held by or deposited with reinsured companies __

16.3 Other amounts receivable under reinsurance contracts ..

17. Amounts receivable relating to uninsured plans __

18.1 Current federal and foreign income tax recoverable and interest thereon __

18.2 Net deferred tax asset.._

19. Guaranty funds receivable or on deposit ..

20. Electronic data processing equipment and software

21. Furniture and equipment, including health care delivery assets

($ ........ ...... ) ..

22. Net adjustment in assets and liabilities due to foreign exchange rates ."

................. 18,838.844

23. Receivables from parent. subsidiaries and affiliates .. __________________________________ 19,059

24. Health care ($ __________ ........ . .. ________ ) and other amounts receivable __ _

.............. 0 ...... 0 .......... 299,724 ............. 829.602

..... 18,838.844 ................ .24,389.606

...................... 0

.... 0

..................... 0

.................... 0 ....... 0

..0 ......... 0

..................... D

. ............ 0

..... ........... 0

...................... 0

........... 0

........... 0

D

........... 0

. 0

.......... 0

........... 0 ....... 0

.......... 0 o

. .. ... 0

........... 0 ............ .19,059 .................. 0 .................... 0 ....... 0

25. Aggregate write-ins for other-than-invested assets __ ................. 11.613,907 ........... 0 11,613.9{J7 ................. 4.761,702 26. Total assets excluding Separate Accounts, Segregated Accounts and

Protected Cell Accounts (Lines 12 to 25) ...

27. From Separate Accounts, Segregated Accounts and Protected

Cell Accounta __ _

28. Total (Lines 26 aoo 27\

1101.

1102.

1103.

DETAILS OF WRITE-INS

1198. Summary of remaining write-ins for Line 11 from overflow page ..

1199. Totals (Lines 1101 through 1103 plus 1198) (Line 11 above)

2501. Performance based receivable __ _ 2502. ASO Receivabla .. 2503. Health Insurer Fee Receivable __ _

2598. Summary of remaining write-ins for Line 25 from overflow page __

2599. Tolals (Lines 2501 through 2503 plus 259B) (Line 25 above)

114,296.774

114,296.774

° ......... .............. 1.200,000 ......... ...... ........ 580,914 ........ ..............9,832,993 ........ .................................. 0

11.613,9{J7

2

° 114,296.774

... _-----------------------------.... ..... ....... .. 0

° 114.296,774

. .......... 0

° ° ............................... . ...... 1.200.000 ... ............................................ 580.914

....... 9,832.993 ......0 ...................... 0

° 11,613,907

172.372,102

........... 0 172,372,102

. ......... 0

° ................... 1 ,025,000 ...... 568,046

.................. .3, 168.655 ......... 0

4,761,702

STATEMENT AS OF JUNE 3D, 2016 OF THE Magellan Behavioral Care of Iowa, Inc.

LIABILITIES, CAPITAL AND SURPLUS

1. Claims unpaid (less $ .......... reinsurance ceded) __ _

2. Accrued medical incentive pool and bonus amounts __

3. Unpaid claims adjustment expenses __

4. Aggregate health policy reserves including the liability of

$ .............. _________________________ for medical loss ratio rebate per the Public Health

Service AcL.

5. Aggregate life policy reserves __

6. Property/casualty unearned premium reserve __ _

7. Aggregate health claim reserves __

8. Premiums received in advance ..

9. General expenses due or accrued __

10.1 Current federal and foreign income tax payable and interest thereon (including

$ _________________ .... _ ............ on realized gains (IOSses)) __

10.2 Net deferred tax liability ...

11. Ceded reinsurance premiums payable ....

12. Amounts withheld or retained for the account of others __

13. Remittances and items not allocated __

14. Borrowed money (including $ ................... current) and

interest thereon $ ............. _____________________ (including

$ ............................ ______ current) ..

15. Amounts due to parent, subsidiaries and affiliates ..

16. Derivativea __ _

17. Payable for securities __

18. Payable for securities lending ..

19. Funds held under reinsurance treaties (with $ _

unauthorized reinsurers

Current Period 2

Covered Uncovered 3

Total

Prior Year 4

Total

9,168,629 ........... ................. 9, 168,629 ............. 62,960,919 ............... ........................00

.......... ..... 110,440 ......... . ...................... 110,440 .................... 4()2,726

........... 22,252,671 .................................................... 22,252,671 ................. 16,141.523 ............................. 0.0

.......................................0

......... ..................... 0 .......... 0

o .. .. 4,617,728 ................4,617,728 ............ ..4,490,221

............. 3,177,789 .......................... 3,177,789 ... .... 2,295,477

.............. 8.189,137 .................................................. 8,189,137 ..5,913,598 ...........................0 ........... 0 ....................................... ........................ 0

................ 19,416,177 ................ . ............... 19,416,177 ............. 19,431 ,368 .................................... 00

................................... .................0

....................0

...................0..0 ....................................... 0

....................0

.. 0 .. .................... 602,175

........ 0 ....... 0

.......... 0

authorized reinsurers, $

and $ certified reinsurers) ........................... ___________________ .......................................... _____________________________________________________________ ... .0 20. Reinsurance in unauthorized and certified ($ _____________ ._ .................. )

companies __

21. Net adjustments in assets and liabilities due to foreign exchange rates ..

22. Liability for amounts held under uninsured plans ..

23. Aggregate write-ins for other liabilities (including $ .

current) ..

............0 . .................................................... 0

.....................0

24. Total liabilities {Lines 1 to 23)... . ..... _. _____________________________________________________________________ 74,715, 356 ................................. .0 ... ______________ 74,715,356

25. Aggregate write-ins for special surplus funds .. ________________ XXX_.__ ............... XXX... . ........................ ... _____ D 26. Common capital stock.. _________________________________ .. _ ......................................... XXX___ _ ______________ XXX __ _

27. Preferred capital stock __ ......................................................................... XXX .. . .. ............. XXX .. .

..... 0 ........ 0

o

.. ..112,283,934 .. 0

o ... 0

28. Gross paid in and contributed surplus __ _ ................ XXX .. . .. ............ XXX .. . ........... 35,438,133 .............. 47,438,133 29. Surplus notes .. _

30. Aggregate write-ins for other-than-special surplus funds.. ________________ XXX __ _

31. Unassigned funds (surplus) .. . ........ ____ . ___________________________________________________ .. _._ ...... XXX ..

32. Less treasury stock, at cost:

32.1 ........ __________ shares common (value included in Line 26

$ .................................).. .. .............. XXX .. .

32.2 ______________________ .................. shares preferred {value included in Line 27

$ ................... ).... ........... XXX .. .

33. Total capital and surplus (Lines 25 to 31 minus Line 32) .___ ........... _____ XXX __ _

34. Total liabilities caDital and surolus (Lines 24 and 33) XXX


......... XXX

.. XXX ...

.. .... XXX

. XXX

........ XXX ...

XXX

......... 0

. ......... 0 ......39,581 ,418 ................ 60,088, 168

114,296,774 172,372,102

2301. Unclaimed properly __ _ ...............................50,034 ..................................... ...... 50,034 ... ............. .45,927

2302. Heal th Insurance Fee Payable __ _ ],732,751 ....................................],732,751 ......... 0

2303.


2399. Totals (Lines 2301 throuah 2303 Dlus 2398) (Line 23 above) 7,782,785

2501.

2502.

2503.

............ ............................ XXX

. ............ ___ xxx. __ _

....................................XXX ...

2598. Summary of remaining write-ins for Line 25 from overflow page ............. _. __ . _________________ xxx. __ _ 2599. Totals (Lines 2501 throuah 2503 Dlus 2598) (Line 25 above) XXX

3001.

3002.

3003.

.......................................... ..... XXX ..

.....................XXX

...................................... ..................... XXX

3098. Summary of remaining write-ins for Line 30 from overflow page __________________________________ XXX __ _

3099. Totals (Lines 3001 through 3003 plus 3098) (Line 30 above) XXX

3

..... XXX ...

_ ______________ xxx. __ _ . ______________ xxx. __ _ _______________ xxx. __ .

XXX

. ............ XXX

.... .. XXX ..

xxx. ............... XXX ...

XXX

° 7,782,785

............. ............. 0

°

. ................................. 0

°

o 45,927


STATEMENT OF REVENUE AND EXPENSES

1. Member Months __ _

Current Year To Date

Uncovered 2

Total

Prior Year Ended Prior Year To Date December 31

3 Total

4 Total

......................... xxx .. . ............................ 3,332 ,869 .......... £ ,712,335

2. Net premium income (including $ non-health premium income) _____________ .xxx. .. . . ................ (356,085) .......... 261,322,264 .......... S23,379,603

3. Change in unearned premium reserves and reserve for rate credits .. . ................... XXX .. . . ............ (6,111,148) ........... (6,485,406) ............. (3,740,397)

4. Fee-for-service (net of $ ________ .......... medical expenses) __ . XXX ............ 0 ............... 0

5. Risk revenue __ .......................... XXX ........ 0 ............. 0

6. Aggregate write-ins for other health care related revenues ___________ ., ........ _ ...... .

7. Aggregate write-ins for other non-health revenues .. . ......................... XXX

8. Total revenues (lines 2 to 7) __ ................. XXX ............................ 352,374 ...255,323,525 ..... 527,390,005

~ospltal and Medical:

9. Hospital/medical benefits __ ................................ (289 ,059) ......... S3, 599,097.110 ,825,056

10. Other professional services ............................... (379,650) .... 176,611 ,415 ........ 340,065,683

11. Outside referrals __ .............. 0 ..... 0

12. Emergency room and out-ot-area __

13. Prescription drugs ..... .............. 0 ...... 0

14. Aggregate write-ins for other hospital and medicaL_ . ........... 0 ........... (6,111, 148) ........ (6,485,406) ........... (3, 740 ,397)

15. Incentive pool, withhold adjustments and bonus amounts ... .............. 0 .. 0

16. Subtotal (Lines 9 to 15) ._ . ........... 0 ............. (6,779,858) ...... 223,725,106 ........ .447,150,342

Less:

17. Net reinsurance recoveries __

18. Total hospital and medical (lines 16 minus 17) __ .......... 0 .......... (6,779,858) ......... 223,725,106 ........... 447,150,342

19. Non-health daims (net) ... .............. 0 ............... 0

20. Claims adjustment expenses, induding $ ___________ cost containment ............. ___ __________________ B23 , 663 ______________ .1,629,661

expenses __ _

21. General administrative expenses ...

22. Increase in reserves for life and accident and health contracts (induding

$ _________ .. increase in reserves for life only~ __ _

23. Total underwriting deductions (Unes 18 through 22)_.

24. Net underwriting gain or (loss) (Lines 8 minus 23) __

25. Net investment income eamed ..

26. Net realized capital gains (losses) less capital gains tax of $ __ ._

27. Net investment gains (losses) (Lines 25 plus 26) __

............... £,625,248 ........... 38,551 ,045 ........ £9,680,442

...... .. 0 .............. 0

...... 0 ....1.845,390 .......... 263,099,815 ....... 518,460,445

. .................... xxx... . ....... (1.493,017) ............ (7,776,290) ......£,929,561

................................. 261 ,806 ......250,636

...... 1 ,519

o ............. 261 ,806 ............252, 156

.<186,379

..... 17 ,715

... 504,094

28. Net gain or (loss) from agents· or premium balances charged off [(amount recovered

$ ·----------l (amount charged off $ .. ------------------------ )1----

29. Aggregate write-ins for other income or expenses ..

30. Net income or (loss) after capital gains tax and before all other federal income taxes (Lines 24 plus 27 plus 28 plus 29) .. . ......... ____ _ ___________ XXX .. .

31. Federal and foreign income taxes incurred __

32. Net income (loss) (Lines 30 minus 31}


0601. Other Revenue ...

0602. Performance-based Revenue ...

0603. Health Insurer Fee Revenue.. ...


0699. Totals (Lines 0601 throuQh 0603 plus 0698) (Line 6 above)

0701.

0702.

0703. 0798. Summary of remaining write-ins for Line 7 from overftow page ..

0799. Totals (Lines 0701 through 0703 plus 0798) lLine 7 above)

........................... XXX

XXX

...xxx .. .

.. ............... XXX .. .

.................... XXX .. .

............ XXX .. .

XXX

. .................... XXX .. .

. ...................... XXX

. ............ XXX .. .

....XXX

XXX

.............. 0

. ............. 0

.......(1 ,231 ,211) ............. (7 ,524, 134) .............. B,433,655

......2 ,275,539(31,160) ........ 5,913,598 ~,508,~0 17,.2,W4 3,5m,087

27,500 . .. 36,667 .... 64, 167

............175,000 ............ <150,000 .............. 1,016,667

. ............. £,617,107 .............. 0 .....£,669,966

. ............ 0 .............. 0 ............... 0 6,819,607 486 667 7,750,799

. ............ 0 .... 0 ........... 0 o o 0

1401. Change in Community Reinvestment Reserve __ _ ............................ (6,111,148) ............ (6 ,485,406) ........... (3,740,397)

1402.

1403.


1499. Totals (Lines 1401 through 1403 plus 1498) (Line 14 above)

2901.

2902.

2903.

2998. Summary of remaining write-ins for line 29 from overflow page __

2999. Total~ (Line. 2901 thro.llllh 2903 plus 2998) (Line 29 above\

4

... 0

16,111,148

.............. 0

16,485.406

............ 0

13,740,397

............... 0

o

,< ••• ,--~~.~.--~--,,,,"",",-'-'-----~-"'~ -----------------------


STATEMENT OF REVENUE AND EXPENSES Continued)

CAPITAL & SURPLUS ACCOUNT

33. Capital and surplus prior reporting year ___ _

34. Net income or (loss) from Line 32 __

35. Change in valuation basis of aggregate policy and claim reserves __


.....60,088,168

................ (3,506,750)

36. Change in net unrealized capital gains (losses) less capital gains tax of $

37. Change in net unrealized foreign exchange capital gain or (loss) ..

38. Change in net deferred income tax __

39. Change in nonadmitted assets __

40. Change in unauthorized and certified reinsurance __

41. Change in treasury stock __

42. Change in surplus notes __

43. Cumulative effect of changes in accounting principles __

44. Capital Changes:

44.1 Paid in __

44.2 Transferred from surplus (Stock Dividend) __

44.3 Transferred to surplus ..

45. Surplus adjustments:

45.1 Paid in __ ................................................ .......... 112,000,000)

45.2 Transferred to capital (Stock Dividend) __ ...................... 0

45.3 Transferred from capital __

46. Dividends to stockholders .. ................. (5,000,000)

47. Aggregate writeMins for gains or (losses) in surplus .. .. ........................... 0

48. Net change in capital and surplus (Lines 34 to 47) __ .(20,506,750)

49. Cacital and surplus end of reoortina oeriod (Line 33 olus 48) 39,581,418

DETAILS OF WRITE·INS

4701.

4702.

4703,

4798. Summary of remaining writeMins for Line 47 from overflow page ..

4799. Totals (Lines 4701 throuah 4703 olus 4798) (Line 47 above) o

5

2

Prior Year To Date

3

Prior Year Ended

December 31

... ..71 ,568, 112 ......... 71,568,112

...... (7,492,974) ...........3,520,057

........... 0

................... 0 ....... 0

...... 0

............0 ....... 0

................. 0 .. 0

....................... 0

...............0 .. ......... 0

.......0 ..... .112,000,000)

....................... 0

..........0 ................. (3,000,000)

......... 0

.. .... (7,492,974) .(11,479,943)

64,075,138 60,088,168

.............0 .. .... 0

o o


CASH FLOW

Cash from Operations 1. Premiums collected net of reinsurance __ _

2. Net investment income .. 3. Miscellaneous income ..

4. Total (Lines 1 to 3) ..


2 Prior Year To Date

3 Prior Year Ended

December 31

..... .. 5,322, 184 ........... 239 ,091,186 ............. 526,339 ,256

................... 1 ,090,946 ...........497,746 ............... 1 ,059,851 . (19,730 36,667 4,465,477

6,393,400 239,625,599 531,864,584 5. Benefit and loss related payments "_ ............ 47,012,433 ______________ 216,980,883 ___ ............ M4, 546,620 6. Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts _______________________________________________________________________ ....................... 0 .................. _________________ .0 7. Commissions, expenses paid and aggregate write-ins for deductions .. . ...... _ .. _. ___________ 326,423 _________________ 23,993,783 _ ................. 52,013,027 8. Dividends paid to policyholders.. . .................. _. _______________________________________ 0 ________________________ .......... .0 9. Federal and foreign income taxes paid (recovered) net of $ .................................... __ . tax on capital

gains (losses) ... 10. Total (Lines 5 through 9) __

11. Net cash from operations (Line 4 minus Line 10) __

Cash from Investments 12. Proceeds from investments sold, matured or repaid:

12.1 Bonds __ 12.2 Siocks .. 12.3 Mortgage loans .. 12.4 Real estate ............ _. __________ _ 12.5 Other invested assets _____ ............... .

o o 2,794,618 47,338,856 240,974,665 499 , 354 ,264

(40,945,456 (1,349,066 32,510,319

..... ......9.850,000 .. 13,690,000 .............. 36 ,412 ,272

.. ................................ 0 ............................0................. .... 0 ................................... 0 .................... 0 .............................. 0

.. ................................ 0 ........ ................... 0...........0

.............. ..... 0 .................................. 0 ........... 0 12.6 Net gains or (losses) on caSh, cash equivalents and short-term investments.. ___________________ . __ ._ .......... .0 ......................... .1 .519 ___________________________ 1 ,519 12.7 Miscellaneous proceeds.. 0 0 0 12.8 Total investment proceeds (Lines 12.1 to 12. 7) _____________________________________________ .. _........................... . ............. 9,850,000 ._. ______________ 13,691,519 ________________ .36,413,791

13. Cost of investments acquired (long-term only): 13.1 Bonds............................................ ......................... ................................................................................................. 0 ........ ..7, 156,730 ................... 7, 156,730 13.2 Stocks.. .. ................. _______________ .0 __________________________________ 0 __________ . __ ..................... .0 13.3 Mortgage loans . ___ . ____________________________________________________ ._ ....................................... _. ____________________________________ __________________________________ .0 __________________________ . __ ..... 0 .................. ________________ .0 13.4 Real estate ____ . __ ._............. . .................... __ . __________________________________________________________ ._............... ................ ... . ................................. .0 ._. _______________________________ 0 ______________ ... _ ................ .0 13.5 Other invested assets ................... _ .. ______________________________________________________________ ........................ . ............................... _ . .0 __________________________________ 0 ____________ ................. .... .0 13.6 Miscellaneous applications.. 0 0 0 13.7 Total investments acquired (Lines 13.1 to 13.6)__ 1------~0t---~7;-,"156;o"',7"3;;;0t----7;-,-;1""56;-,;-73"OCl

14. Ne1 increase (or decrease) in con1rect loans and premium n01es .................................................. . o o 0 15. Net cash from investments (Line 12.8 minus Line 13.7 and Line 14) .. 9,850,000 6,534,789 29,257,061

Cash from Financing and Miscellaneous Sources 16. Cash provided (applied):

16.1 Surplus notes, capital notes ................................ _________________________________________________________ ... _.......... _______ ................. ......... .0 .... __ . ___________________________ 0 ________________ ._ ................ .0 16.2 Capital and paid in surplus, less treasury stock. ................................... _______________________________________________________________ ~ 12,000,000) ..................... 0 _______________ ~ 12,000,000) 16.3 Borrowed funds.. __________________________________ .0 _________________________ ......... 0 .......... _ .. _____________________ .0 16.4 Net deposits on deposit-type contracts and other insurance liabilities .. .. __________________________________________________________ ._ .......... 0 .......... _. ______________________ .0 16.5 Dividends to stockholders.. ________ . __ ._ .. _ ... 5,000,000 ................... ___ .978,952 ___________________ 3,978,952 16.6 Olher cash provided (applied)......... ................................................ (621,234 182,142 340,670

17. Net cash from financing and miscellaneous sources (Line 16.1 through Line 16.4 minus Line 16.5 plus Line 16.6>................. 1-__ -'-"(117-",6"'2'-'1 ,,,2349 ___ -,0-,,796=,8,,,10"1-__ -'-(:1",5",6",,38,,-,2.,8~2

RECONCILIATION OF CASH. CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS 18. Net change in caSh, cash equivalents and short-term investments (Line 11, plus Lines 15 and 17) .............. (48,716,690) ............4,388,913 ................ 46,129,098 19. Cash, cash equivalents and short-term investments:

19.1 Beginning of year _____________________________________ _ .............. ..115,182,703 ................ 69,053,605 ................. 69,053,605 19.2 End of period (Line 18 plus Line 19.1) 66,466,013 73,442,518 115,182,703

6


EXHIBIT OF PREMIUMS. ENROLLMENT AND UTILIZATION Comprehensive 4 5 6 7 8 9 10

(Hospital & Medical)

2 3

Medicare Vision Dental Federal Employees Title XVIII Title XIX Total Individual Group Supplement Only Only Health Benefits Plan Medicare Medicaid Other

Total Members at end of:

1. PriorYear __ ...... ..... 573,574 ....................... D 0 ............................. 0 0 ........0 ...0 ....................0 .........573,574 .............. .. D

2. First Quarter ............ _---------------------------------------------.... ........................... 0 ....... 0 0 ................................ 0 .... .. 0 .............. 0 .0 ................... 0 ........... ... 0 ............. ... 0

3. Second Quarter __ . .......................... 0 .................. .. 0 ... 0 ...... .........0 ......................... 0 ° ........................... 0 .D ...... ................... 0 ....... .. 0

4. Third Quarter .. ...............0 ---- -------------------------------------- ....................................

5. Current Year ° 6. Current Year Member Months 0

Total Member Ambulatory Encounters for Period:

7. Physician __ ... D

8. Non-Physician_. ° -..j

9. Total ° ° ° ° ° ° ° ° ° ° 10. Ho.!Q!tal Patient Days Incurred ° 11. Number of Inpatient Admissions ° 12. Health Premiums Written (a) ___ ........ (356.085) .... ...(356,085)

13. Life Premiums DirecL_ ......0

14. Property/Casualty Premiums Written __ ........................... 0

15. Health Premiums Eamed __ ............. (356,085) .... ...........(356,085) .

16. Property/Casualty Premiums Eamed ______ .... _ ........... ............ ... 0

17. Amount Paid for Provision of Health Care Services __ ....A7,012,433 ................ A7,012,433

18. Amount Incurred for Provision of Health Care Services 16,779,858 (6,779,858)

(a) For health premiums written: amount of Medicare TiHe XVIII exempt from state taxes or fees $

STATEMENT AS OF JUNE 30, 2016 OF THE Magellan Behavioral Care of Iowa, Inc:.

CLAIMS UNPAID AND INCENTIVE POOL, WITHHOLD AND BONUS (Reported and Unreported) Aalna Analvsls of UnDald Claims

2 3 4 5 6 7 Account 1 - 30 Davs 31 - 60 Davs 61·90 D."" 91 - 120 Days Over 120 Days Total

Claims unpaid (Reported)

0199999 Individually listed claims unpaid ___ . ................ ............................................................. .0 ..... ...... .........0 .................................. 0 .......................................... 0 0 .......0 0299999 Aggregate accounts not individually listed-uncovered ___ --- ----------- .......0 0399999 Aggregate accounts not individually listed-covered 0

00 0499999 Subtotals 0 0 0 0 0 0 0599999 Unreoorted claims and other claim reserves XXX XXX XXX XXX XXX 9,168,629 0699999 Total amounts withheld XXX XXX XXX XXX XXX 0799999 Total claims unpaid XXX XXX XXX XXX XXX 9,168,629 0899999 Accrued medical incentive pool and bonus amounts XXX XXX XXX XXX XXX


NOTES TO FINANCIAL STATEMENTS

I Summary of Significant Accounting Policies

(A) Accounting Practices

Magellan Behavioral Care of Iowa, Inc. (the "Company") prepares its statutory-basis financial statements in conformity with accounting practices prescribed or permitted by the State of Iowa Insurance Division (the "Division"), which represents a comprehensive basis of accounting other than accounting principles generally accepted in the United States. The Division requires insurance companies licensed in Iowa as a limited services organization prepare their statutory financial statements in accordance with the Codified National Association of Insurance Commissioners' Statements of Statutory Accounting Principles ("NAIC SSAP"), subject to any deviations prescribed or permitted by the Division. The Company is not aware of any differences between the NAIC and the Division in regards to accounting practices and procedures that would impact the Company's financial statements. In addition, the accompanying statutory-basis financial statements have been prepared in accordance with the Annual Statement instructions and the NAIC Accounting Practices and Procedures manual.

(B) Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in confonnity with statutory accounting practices requires management to make estimates and assumptions that affect the reported amounts of admitted assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates of the Company include, among other things, accounts receivable realization and the liability for claims unpaid. Actual results could differ from those estimates.

(C) Accounting Policy

Fair Value afFinancial Instruments

SSAP NO. 100, "Fair Value Measurements", defines fair value, establishes a framework for measuring fair value and establishes disclosurers about fair value. The carrying values of the Company's financial instruments classified as current assets (includes cash, cash equivalents, uncollected premiums and other receivables) and current liabilities (includes claims unpaid and other liabilities) approximate fair value due to their short maturities. As of December 31, 2015, the carrying value and fair value of the Company's invested assets, which include short-term investments and long-term bonds, was $56,528,336 and $56,461,688, respectively, with the carrying value and fair value of the Company's invested assets as ofJune 30, 2016 totaling $48,205,068 and $48,186,572, respectively.

Cash and Cash Equivalents

Cash consists of cash on hand and in financial institutions, along with certificates of deposit with maturity dates at the time of acquisition of one year or less. Cash equivalents are short-term, highly liquid interest-bearing investments with maturity dates of three months or less when acquired. For the period presented, the Company's cash equivalents consist of overnight sweep accounts and short-term, highly liquid interest-bearing investments.

Short-term Investments

Short-term investments have maturities of one year or less at the time of acquisition (excluding those investments classified as cash equivalents) and are recorded at amortized cost using the straight-line basis, except in cases where NAIC designation requires them to be carried at the lower of amortized cost or fair value. For the periods presented, the Company's short-term investments consist of corporate bonds and exempt money market mutual funds as classified on the mutual fund lists published by the NAIC.

Long-term Investments

Long-term investments have maturities in excess of one year from the date of acquisition and are recorded at amortized cost using the straight-line basis, except in cases where NAIC designation requires them to be carried at the lower of amortized cost or fair value. For the periods presented, the Company's long-tenn investments consist of corporate bonds.

Investment Securities

The Company periodically evaluates whether any declines in the fair value of investment securities are other-thantemporary. This evaluation consists of a review of several factors, including but not limited to: the length of time and extent that a security has been in an unrealized loss position; the existence of an event that would impair the issuer's future earnings potential; the near-term prospects for recovery of the market value of a security; and the intent and ability of the Company to hold the security until the market value recovers. Declines in value below cost for investments where it is considered probable that all contractual terms of the investment will be satisfied, the decline in value is due primarily to changes in interest rates (and not because of increased credit risk), and where the Company intends and has the ability to hold the investment for a period of time sufficient to allow a market recovery, are not assumed to be other-than-temporary.

Revenue Recognition and Contract Receivables

Revenue associated with the Company's contract with the Iowa Department of Human Services and the Iowa Department of Public Health (the "State") to provide managed mental health and substance abuse services to Iowa Plan enrollees (the "Contract") consists of Medicaid and Non-Medicaid Programs.

10



Medicaid revenue is recognized over the applicable coverage period based on contracted rates for specific categories of Medicaid eligibility for each member enrolled in the managed mental health and substance abuse plan. The Company is paid a per member fee for all enrolled members, and this fee is recorded as revenue in the month in which members are entitled to service. Non-Medicaid revenue is recognized over the applicable coverage period and is recorded as revenue in the month coverage is provided. The Company adjusts its revenue for retroactive membership terminations, additions and other changes, when such adjustments are identified.

Amounts due from the State are included in uncollected premiums in course of collection in the accompanying balance sheet.

The Company's contract with the state termed on December 31, 2015, therefore revenue recorded in 2016 is related to retroactive adjustements.

Performance-based Revenue

The Company has the ability to earn performance-based revenue. Performance-based revenue generally is based on the ability of the Company to manage care for its clients below specified targets, or on other operating metrics. The Company estimates and records performance-based revenue after considering the relevant contractual terms and the data available for the performance-based revenue calculation. Pro-rata perforntance-based revenue is recognized on an interim basis pursuant to the rights and obligations of each party upon termination ofthe contract.

Claims Costs and Liability for Claims Unpaid

The Company's claims costs are comprised principally of expenses associated with managing, supervising, and providing the Company's services, including third-party network provider charges, inpatient facility charges and costs associated with members of management principally engaged in the Company's clinical operations and their support staff. Claims costs are recognized in the period in which covered members receive managed healthcare services. In addition to actual benefits paid, claims costs include the impact of accruals for estimates of claims unpaid.

Claims unpaid represents the liability for healthcare claims reported but not yet paid and claims incurred but not yet reported ("IBNR") related to the Company's managed healthcare business. Such liabilities are determined employing actuarial methods that are commonly used by health insurance actuaries and meet actuarial standards of practice. The liability for claims unpaid also includes certain potential community reinvestment payable amounts that occur when actual payments for claims fall below prescribed minimum claims costs levels specified in the Contract.

The IBNR portion of claims unpaid is estimated based on past claims payment experience for member groups, enrollment data, utilization statistics, authorized healthcare services and other factors. This data is incorporated into contract-specific actuarial reserve models and is further analyzed to create "completion factors" that represent the average percentage of total incurred claims that have been paid through a given date after being incurred. Factors that affect estimated completion factors include benefit changes, enrollment changes, shifts in product mix, seasonality influences, provider reimbursement changes, changes in claims inventory levels, the speed of claims processing and changes in paid claim levels. Completion factors are applied to claims paid through the financial statement date to estimate the ultimate claim expense incurred for the current period. Actuarial estimates of claims unpaid are then determined by subtracting the actual paid claims from the estimate of the ultimate incurred claims. For the most recent incurred months (generally the most recent two months), the percentage of claims paid for claims incurred in those months is generally low. This makes the completion factor methodology less reliable for such months. Therefore, incurred claims for any month with a completion factor that is less than 70 percent are generally not projected from historical completion and payment patterns; rather they are projected by estimating claims expense based on recent monthly estimated cost incurred per member per month times membership, taking into account seasonality influences, benefit changes and health care trend levels, collectively considered to be "trend factors".

2 Accounting Changes and Corrections of Errors

None

3 Business Combinations and Goodwill

None

4 Discontinued Operations

None

5 Investments

The Company does not have investments in mortgage loans, debt restructuring, reverse mortgages, loan-back securities, repurchase agreements or real estate.

The Contract requires the Company to maintain a restricted insolvency protection account based on a percentage of revenue for purposes of settling claims in the event of insolvency, and also specifies working capital and surplus fund requirements based on a multiple of monthly paid claims. The Company held restricted deposits of $70,497,397,

10.1


NOTES TO FINANCIAL STATEMENTS including interest receivable, as of June 30, 2016, to satisfy the financial solvency, working capital and surplus fund requirements specified in the Contract.

6 Joint Ventnres, Partnerships and Limited Liability Companies

None

7 Investment Income

The Company admitted all investment income due and accrued as of June 30, 2016.

8 Derivative Instruments

None

9 Income Taxes

For federal and state income tax reporting purposes, the Company's operations are included in Magellan Health, Inc. ("Magellan") consolidated federal income tax returns and Magellan's combined state income tax returns for the State of Iowa, respectively.

The Company has a tax allocation agreement with Magellan. The current agreement calls for an allocation based on Magellan's effective income tax rate before reflecting the allocation and after affecting for permanent differences. Through the tax allocation agreement, Magellan has allocated $882,312 and $2,275,539 to the Company for its share of the state and federal income tax provisions, respectively, for the period ended June 30, 2016. Allocated state income taxes are included as a component of general administrative expenses in the accompanying statement of revenue and expenses.

In accordance with the tax allocation agreement, allocated state and federal income taxes payable or recoverable are required to be settled within 30 days after the filing by Magellan of any annual state or federal income tax return that includes the activities of the Company. In September 2015, the Company settled the allocated federal and state income taxes payable related to 2014 with payments made of $1,080,289 and $2,794,618 to Magellan. The tax allocation agreement calls for state and federal income taxes payable to be computed on the basis of pre-tax book income adjusted for permanent book to tax differences. Accordingly, the Company has no deferred tax assets. That is, the Company is paid in cash by Magellan currently for any deferred tax assets before such assets are utilized by Magellan.

The following are federal income taxes incurred in prior years that will be available for recoupment in the event of future net losses:

2015 $ 5,759,598 2014 $2,794,618 2013 $ 527,128

10 Information Concerning Parent, Subsidiaries, Affiliates and Other Related Parties

The Company is a wholly owned subsidiary of Merit Behavioral Care Corporation ("Merit"). Merit is a wholly owned subsidiary of Magellan Healthcare, Inc. ("Magellan Healthcare"), which is a wholly owned subsidiary of Magellan. Magellan is engaged in the healthcare management business, and is focused on managing the fastest growing, most complex areas of health, including special populations, complete pharmacy benefits and other specialty areas of healthcare.

On December 19, 2013 and December 22, 2014, Magellan Healthcare made additional paid in capital contributions of $25,775,040 and $16,393,093, respectively.

At December 31,2015, the Company reported $602,175 as the amount due to parent, subsidiaries and affiliates, which was settled in January 2016. At June 30, 2016, the Company reported $19,059 as the amount due from parent, subsidiaries and affiliates, which was settled in July 2016.

Under an administrative services agreement between Magellan Healthcare and the Company, Magellan Healthcare performs all of the Company's administrative and operational functions, which includes the processing and payment of claims and the staffing of personnel. Magellan Healthcare also provides cash management, communication, financial record keeping, management information. participating provider, reporting and other administrative services for the Company. The amount charged to the Company in connection with these services for the period ended June 30, 2016 was $(27,498), this amount is due to retro revenue reductions booked in the current year as the contract termed December 31, 2015.

11 Debt

None

12 Retirement Plans, Deferred Compensation, Post-employment Benefits and Compensated Absences and Other Postretirement Benefit Plans

None

10.2



13 Capital and Surplus, Dividend Restrictions and Quasi-Reorganizations

(1) The Company has 1,000 shares authorized, issued and outstanding with no par value. (2) The Company has no preferred stock issued or outstanding. (3) Dividends to shareholders are limited by the laws of the State ofIowa and require approval of the Division. Ordinary

dividends declared within any twelve-month period cannot exceed the lesser of the Company's net income as reported in the most current annual statement or ten percent of surplus (defined as total capital and surplus), and require a ten day review period by the Division. Dividends declared in any twelve-month period that exceed this limitation are classified as extraordinary dividends and require a thirty day review period by the Division.

(4) There are no restrictions placed on the portion of Company profits that may be paid as ordinary dividends to stockholders.

(5) There are no restrictions placed on the Company's surplus, including for whom the surplus is being held. (6) The Company does not have any advances to surplus. (7) The Company does not hold any stock for special purposes. (8) The Company does not have a special surplus fund. (9) The Company's unassigned funds (surplus) have not been reduced by cumulative unrealized gains and losses. (10) The Company has not issued surplus debentures or similar obligations. (11) The Company has not had any restatements due to quasi-reorganizations. (12) Not applicable (13) The company issued an ordinary dividend of $978,952 as of December 31,2014 that was paid on February 13,2015.

The company issued and paid an extraordinary dividend of $3,000,000 and a partial return of capital of $12,000,000, which were approved by the State and paid on December 28, 2015. The company issued and paid an extraordinary dividend of $5,000,000 and a partial return of capital of $12,000,000, which were approved by the State and paid on June I, 2016.

14 Contingencies

(A) None (8) None (C) None (D) None (E) From time to time, the Company is involved in legal actions artsing in the ordinary course of business. After taking

into consideration legal counsel's evaluation of such actions, management is of the opinion that their outcome will not have a material adverse effect on the Company's financial statements.

The managed healthcare industry is subject to extensive and evolving federal and state regulation. Such laws and regulations cover, but are not limited to, matters such as licensure, accreditation, government healthcare program participation requirements, infonnation privacy and security, reimbursement for patient services. and Medicare and Medicaid fraud and abuse. Government investigations and allegations have become more frequent concerning possible violations of fraud and abuse and false claims statutes and regulations by healthcare organizations. Violators may be excluded from participating in government healthcare programs, subject to fines or penalties or required to repay amounts received from the government for previously billed services. A violation of such laws and regulations may have a material adverse effect on the Company.

At June 30, 2016, the Company had admitted assets of $18,838,844 in uncollected premiums in course of collection. The Company routinely assesses the collectability of its receivables. Based upon Company experience, less than 1% of the receivable balance may become uncollectible and the potential loss is not material to the Company's financial position.

15 Leases

None

16 Information About Financial Instruments With Off-Balance Sheet Risk and Financial Instruments With Concentrations of Credit Risk

The Company does not have any financial instruments with off-balance sheet risk. Certain financial instruments potentially subject the Company to concentrations of credit risk. These financial instruments consist primarily of cash, investments and receivables. The Company maintains its cash and investments with what it believes to be high-quality financial institutions, and primarily invests in class one money market mutual funds, corporate bonds, U.S government and agency securities and obligations of government-sponsored enterprises. The Company's receivables are primarily comprised of contract receivables due from the State related to the Medicaid and Non-Medicaid Programs. The fair value of the Company's financial instruments is substantially equivalent to their carrying value, and although there is some credit risk associated with these instruments, the Company believes the risk to be minimal.

17 Sale, Transfer and Servicing of Financial Assets and Extiuguishments of Liahilities

None

18 Gain or Loss to the Reporting Entity from Uninsured Plans and the Uninsured Portion of Partially Insured Plans

None

10.3

.... ~.~ .. -~-."-~."-.---------------------------------


NOTES TO FINANCIAL STATEMENTS 19 Direct Premium Written/Produced by Managing General Agentsrrhird Party Administrators

None

20 Fair Value Measurements

The Company does not have any assets or liabilities measured and reported at fair value.

21 Other Items

None

22 Events Snbsequent

None

23 Reinsurance

(A) The Company has no ceded reinsurance. (B) The Company has not written off any uncollectible reinsurance balances during the period ended June 30, 2016. (C) The Company has no ceded reinsurance.

24 Retrospectively Rated Contracts & Contracts Subject to Redetermination

None

2S Changes in Incurred Claims and Claim Adjustment Expenses

Changes in reserves for incurred claims and claim adjustment expenses attributable to insured events of prior years are as follows:

Claims unpaid as of January 1,2016 Current year claims paid related to prior years Current year claims incurred related to prior years Claims unpaid as of June 30, 2016 related to prior years

26 Intercompany Pooling Arrangements

None

27 Structured Settlements

None

28 Health Care Receivables

None

29 Participating Policies

None

30 Premium Deficiency Reserves

$ 62,960,919 (47,012,433) 16.779,857)

$ 9168629

A premium deficiency reserve is recognized on any contract for which premiums are insufficient to cover anticipated claims costs, claim adjustment costs and administrative costs throughout the remaining life of the contract. Such reserve is continually monitored and reviewed, and any changes in estimates are reflected in current operations. The Company does not have a premium deficiency reserve as of June 30,2016.

31 Anticipated Salvage and Subrogation

None

10.4


GENERAL INTERROGATORIES

PART 1· COMMON INTERROGATORIES GENERAL

1.1 Did the reporting entity experience any material transactions requiring the filing of Disclosure of Material Transactions with the State of Domicile. as required by the Model Act? ....

1.2 If yes, has the report been filed with the domiciliary state? __

2.1 Has any change been made during the year of this statement in the charter, by-laws, articles of incorporation, or deed of settlement of the reporting entity? __

2.2 If yes, date of change: ._

3.1 Is the reporting entity a member of an Insurance Holding Company System consisting of two or more affiliated persons, one or more of which is an insurer? .. __________________ ................ .

If yes, complete Schedule Y, Parts 1 and 1A.

3.2 Have there been any substantial changes in the organizational chart since the prior quarter end? __

3.3 If the response to 3.2 is yes, provide a brief description of those changes.

4.1 Has the reporting entity been a party to a merger or consolidation during the period covered by this statement?

4.2 If yes, provide the name of entity, NAIC company Code, and state of domicile (use two letter state abbreviation) for any entity that has ceased to exist as a result of the merger or consolidation.

2 3 Name of Enti NAIC Com an Code State of Domicile

5. If the reporting entity is subject to a management agreement, including third-party administrator(s), managing general agent(s), attorney-infact, or similar agreement, have there been any significant changes regarding the terms of the agreement or principals involved? ._

If yes, attach an explanation.

Yes [ ] No [X]

Yes [ ] No [ ]

Yes [ ] No [X]

Yes [X] No [ ]

Yes [] No [X]

Yes [ ] No [X]

Yes [ ] No [X] NA [ ]

6.1 State as of what date the latest financial examination of the reporting entity was made or is being made ......... __ . ___________________________________________ _______________________________ ._ .... ..12/31/2014

6.2 State the as of date that the latest financial examination report became available from either the state of domicile or the reporting entity. This date should be the date of the examined balance sheet and not the date the report was completed or released. ________________________ ._ ... __ ......... ____________ ._ .. _ ............. 12131/2009

6.3 State as of what date the latest financial examination report became available to other states or the public from either the state of domicile or the reporting entity. This is tne release date or completion date of the examination report and not the date of the examination (balance sheet date). ................... _____________________________________________ .. _ ................. _ _______________________________ 12/29/2010

6.4 By what department or departments?

State of Iowa Insurance Division ...

6.5 Have all financial statement adjustments within the latest financial examination report been accounted for in a subsequent financial statement filed with Departments? .. ___________________________________ ._ ............... .

6.6 Have all of the recommendations within the latest financial examination report been complied with? ____ _

7.1 Has this reporting entity had any Certificates of Authority, licenses or registrations (including corporate registration, if applicable) suspended or revoked by any governmental entity during the reporting period?

7.2 If yes, give full information:

8.1 Is the company a subsidiary of a bank holding company regulated by the Federal Reserve Board? ..

8.2 If response to 8.1 is yes, please identify the name of the bank holding company.

8.3 Is the company affiliated with one or more banks, thrifts or securities firms? __ _

8.4 If response to 8.3 is yes, please provide below the names and location (city and state of the main office) of any affiliates regulated by a federal regulatory services agency [Le. the Federal Reserve Board (FRB), the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC) and the Securities Exchange Commission (SEC)) and identify the affiliate's primary federal regulator.]

1 2 3 4 5 Location

Affiliate Name (City, State) FRB acc FDtC

11

Yes [X] No [] NA [ ]

Yes [X] No [] NA [ ]

Yes [ ] No [X]

Yes [] No [X]

Yes [ ] No [X]

6

SEC


GENERAL INTERROGATORIES 9.1 Are the senior officers (principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing

similar functions) of the reporting entity subject to a code of ethics, which includes the following standards? ._

(a) Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

(b) Full, fair, accurate, timely and understandable disclosure in the periodic reports required to be filed by the reporting entity;

(e) Compliance with applicable govemmentallaws, rules and regulations;

(d) The prompt intemal reporting of violations to an appropriate person or persons identified in the code; and

(e) Accountability for adherence to the code.

9.11 If the response to 9.1 is No, please explain:

9.2 Has the code of ethics for senior managers been amended? ..

9.21 If the response to 9.2 is Yes, provide infonnation related to amendment(s).

9.3 Have any provisions of the code of ethics been waived for any of the specified officers? ..

9.31 If the response to 9.3 is Yes, provide the nature of any waiver(s).

FINANCIAL 10.1 Does the reporting entity report any amounts due from parent, subsidiaries or affiliates on Page 2 of this statement? ...

Yes [Xl No [ 1

Yes [l No [Xl

Yes [l No [Xl

Yes [Xl No [ 1

10.2 If yes, indicate any amounts receivable from parent included in the Page 2 amount: ... . ... $ ........ ................. 19,059

INVESTMENT 11.1 Were any of the stocks, bonds, or other assets of the reporting entity loaned, placed under option agreement, or otherwise made available

for use by another person? (Exclude securities under securities lending agreements.) ..

11.2 If yes, give full and complete infonnation relating thereto:

12. Amount of real estate and mortgages held in other invested assets in Schedule BA: .

13. Amount of real estate and mortgages held in short-tenn investments: ..

14.1 Does the reporting entity have any investments in parent, subsidiaries and affiliates? ..

14.2 If yes, please complete the following:

14.21 Bonds .. 14.22 Preferred Stock .. 14.23 Common Stock .. 14.24 Short-Tenn Investments .. 14.25 Mortgage Loans on Real Estate .. 14.26 All other .. . ...................................................... . 14.27 Total Investment in Parent, Subsidiaries and Affiliates

(Subtotal Lines 1421 to 14.26~ ......... 14.28 Total Investment in Parent included in Lines 14.21 to 14.26

above ..

$ $ $ $ $ $

$

$

15.1 Has the reporting entity entered into any hedging transactions reported on Schedule DB?

Prior Year-End Book/Adjusted Carrying Value

15.2 If yes, has a comprehensive description of the hedging program been made available to the domiciliary state? ..

If no, attach a description with this statement.

11.1

$ $ $ $ $ $

$

$

.......... $

. ......... $

2 Current Quarter Book/Adjusted Carrying Value

Yes [l No [Xl

Yes [ 1 No [Xl

Yes [ 1 No [Xl

Yes [l No [ 1


GENERAL INTERROGATORIES

16 For the reporting entity's security lending program, state the amount of the following as of the current statement date: 16.1 Total fair value of reinvested collateral assets reported on Schedule DL, Parts 1 and 2 16.2 Total book adjustedfcanying value of reinvested collateral assets reported on Schedule Dl, Parts 1 and 2 16.3 Total payable for securities lending reported on the liability page

17. Excluding items in Schedule E - Part 3 - Special Deposits, real estate, mortgage loans and investments held physically in the reporting entity's offices, vaults or safety deposit boxes, were all stocks. bonds and other securities, owned throughout the current year held pursuant to a custodial agreement with a qualified bank or trust company in accordance with Section 1, III - General Examination Considerations, F. Outsourcing of Critical Functions, Custodial or Safekeeping Agreements of the NAIC Financial Condition Examiners Handbook?

17.1 For all agreements that comply with the requirements of the NAIC Financial Condition Examiners Handbook, complete the following:

17.2 For all agreements that do not comply with the requirements of the NAIC Financial Condition Examiners Handbook, provide the name, location and a complete explanation:

1 Name(s)

2 location(s)

3 Complete Explanation(s)

17.3 Have there been any changes, including name changes. in the custodian(s) identified in 17.1 during the current quarter? ..

17.4 If yes, give full and complete information relating thereto:

1 2 Old Custodian New Custodian

3 Date of Chan e

4 Reason

17.5 Identify all investment advisors, broker/dealers or individuals acting on behalf of broker/dealers that have access to the investment accounts, handle securities and have authOrity to make investments on behalf of the reporting entity:

Central R istration De osito 3

Address

18.1 Have all the filing requirements of the Purposes and Procedures Manual of the NAIC Investment Analysis Office been followed? .. 18.2 If no, list exceptions:

11.2

$ .. . $ .. . $ .. .

Yes [XI No [ I

Yes [ I No [XI

Yes [XI No [ I


GENERAL INTERROGATORIES PART 2· HEALTH

1. Operating Percentages:

1.1 A&H loss percenL_

1.2 A&H cost containment percent ..

1.3 A&H expense percent excluding cost containment expenses __ _

2.1 Do you act as a custodian for health savings accounts? ____ _

2.2 If yes, please provide the amount of custodial funds held as of the reporting date. _____ ............... .

2.3 Do you act as an administrator for health savings accounts? ..

2.4 If yes, please provide the balance of the funds administered as of the reporting date. __

12

$

$

104.8 %

0.0 0 , 110.41 %

Yes [ I No [XI

Yes [ I No [XI


SCHEDULE S - CEDED REINSURANCE Showing All New Reinsurance Treaties· Current Year to Date -r- --6-- -

2 3 4 5 7 8 9 Type of Certified Effective Date

NAte lJD Number Effective Domiciliary Reinsurance Reinsurer Rating of Certified

Company _Code Dale Name of Reinsurer Jurisdiction Ceded Ty~ of Reinsurer _ (1 thro"gh <lL Reinsurer Rati~

----------······· •• ·rN· •• <J •••• ~ JI~ JlI::++ -++1 ~

W

---------------------.-~-----

STATEMENT AS OF JUNE 30, 2016 OF THE Magel/an Behavioral Care of Iowa, Inc.

SCHEDULE T - PREMIUMS AND OTHER CONSIDERATIONS

States Etc.

1. Alabama.. ________ ...... AL

2. Alaska __

3. Arizona ..

4. Ari<ansas __ _

5. California __

6. Colorado _, .

7. Connecticut ..

8. Delaware ...

9. Dist. Columbia ..

10. Florida __

11. Georgia __

12. Hawaii __

13. Idaho __

14. lIIinois __

15. Indiana ..

....... AK

..... AZ ......AR

........... CA . .. CO

............ CT

.. ............ OE

.. ........ OC

............ FL

......GA

.. HI

....10

... IL

IN

Active Status

16. lowa __ ....... IA ..... L.

17. Kansas ..

18. Kentucky ..

19. Louisiana .. _.

20. Maine __

21. Maryland ...

22. Massachusetts ..

23. Michigan ..

24. Minnesota .... .

25. Mississippi .. ..

26. Missouri

27. Montana ..

28. Nebraska __ _

29. Nevada

30. New Hampshire __

31 . New Jersey ..

32. New Mexico ..

33. New York ....

34. North Carolina ..

35. North Dakota ..

36. Ohio .. _

37. Oklahoma .. __ _

38. Oregon ..

39. Pennsylvania ..

40. Rhode Island ..

41. South Carolina ..

42. South Dakota

43. Tennessee_

44. Texas ..

45. Utah ..

48. Vermont

47. Virginia ...... __

48. Washington __

49. West Virginia ..

......... KS

.. ......... KY

............ LA

.... ME

. .... MO

..MA

.. ......... MI

.. ............ MN

.......MS

...... MO

.............. MT

....... NE ....... _______ NV

..... NH

.. ......... NJ

.. ........... _NM

.. ........ NY

.. ............ NC

.....NO

........... OH

..... OK

........ OR

.. ............ PA

.. ........... RI

.. .......... SC

.... SO __ __ TN

.. ...... TX

.. ...... UT

...... VT

....... VA

....... WA

............. WV 50. Wisconsin ....... ________ ...... _________ WI

51. Wyoming ... .. .... WY

52. American Samoa.. .. ........... AS

53. Guam.. .. ........... GU

54. Puerto Rico .. _____ ......... PR

55. U.S. Virgin Islands .. ____ .......... VI

56. Northern Mariana Islands ...... MP

57. Canada.. .. ........ ___ CAN

58. Aggregate other alien .............. OT ____ ... .xXx. __ _

59. SubtotaL ...... ...XXC 60. Reporting entity contributions for

Employee Benefit Plans___ .. ..xXx.

61. Total (Direct Business) faJ

DETAilS OF WRITE-INS

8001 ......... XXC

8002 ....... XXC

8003 ....... XXC

8998 Summary of remaining write-ins for Line 58 from overflow page... __ ..... .xXL_

~999 Totals (Lines 58001 through 58003 . "plus 58998\ CUna 58 abov~ XXX

Current Year to Date - Allocated bv States and Territories

2

Accident & Health

Premiums

.....0 ... ... 0

o

.... .. 0

o

3

Medicare Tide XVIII

4

Medicaid Title XIX

.... (356,085)

.......... O......D 0.(356,085)

o (356,085

.....0.....0

o 0

Direct Business Only

5 Federal

Employees Health

Benefits Program

6

Life & Annuity Premiums &

Other Premiums Considerations

... 0 ............. D

........ 0

o o

7

Propertyl casualty

Premiums

8 9

Total Columns Oeposit-Type

2 Through 7 Contracts

.0 ....... 0

.. 0 ....... 0

.. 0 ..... 0 ..... 0

. ... 0 ....... 0 ...... 0 ....... 0 ....0 ....... 0 ...... 0 ...... 0

..(356,085) .0

.. ... 0 ..... 0

..0 ....... 0

..................... D .. 0

.... 0 ..... 0

.. 0

... 0 .. ..... 0 ..... .0 ..... 0

.... 0

...... .0

....... 0

....... 0

....... 0 ................ .... 0

....... 0 .. 0 ..0

....... 0

.... 0

...... 0

....... 0 .... 0

....... 0

...... .0 ..... 0

....... 0

. .0 ...0 ..... 0 ..... 0

.0

.0 .... 0

....... 0

....... D .....0 ....... D ........D

.......0 .... (356,085) ................ 0

...... 0 o (356 085 o

............ 0 .... 0 ......0

o o 0 (l) Lrcensed or Chartered - LlC8Ilsed Insurance Carner or DomiCiled RRG. (R) Registered - Non-domlclled RRGs. (0) Qualified - Qualified Of Accredlled Reinsurer; (E) Eligible - Reporting Entitles eligible or approved 10 write Surplus Unes In the state; (N) None of the above - Not allowed to write business in Ihe stale. (0) Insert the number of l responses except for Canada and other Allen.

14

..... t11


SCHEDULE Y -INFORMATION CONCERNING ACTIVITIES OF INSURER MEMBERS OF A HOLDING COMPANY GROUP PART 1 - ORGANIZATIONAL CHART

]"'hgeIlan Health, 1nc. Fed][) 58-1076937

I Mlg~nan HeaHhw~, Inc.

Fed ID 52-2135463

I .Merit Behavioral Care

Ccxporalion Fed ID22-3236927

I l\.1a!e1lan Behavioral C.m of

Iowa, Inc. Fed ID 22-H41S50


SCHEDULE Y PART 1A - DETAIL OF INSURANCE HOLDING COMPANY SYSTEM

2 3 4 5 6 7 8 9 10 11 12 13 14 15 I

Name of Type of Control Securities (Ownership.

I Exchange if Board, If Control is Ultimate NAIC Publicly Name of Relationship to Management, Ownership Controlling

Group Company 10 Federal Traded (U.S. or Parent Subsidiaries Domiciliary Reporting (~Directty Controlled b~) Attorney-in-Fact, Provide Enti1y(~~~ I Code Group Name Code Number RSSO CIK Intemation~J)- or Affiliates Location Entity Name of Entity/Person Influence, Oth~ii Percentaae Person s

~~~~~~~~j)OOoo 19411 NASDAQ~~~~~ -...... Magellan Health, Inc .. ~~~U w~~~ ~~~~~ Sto<khoiders ----- Ownersh i p. __ ... ___ ~100 .0 .~~~~~~O Magellan Health,

~~.~O I ... _---------,., .. -- Magellan Healtheare, Inc. ___ U I P.~ ~~~~~ Magellan Health, Inc .. ----, Ownership ... ~~100. 0 Inc .... Merit Behavioral Care Magellan Health,

--..... Corpora! iOl1-....... _ ~UOP~~. ~~~~~ Magellan Health, Inc._ ----- Ownership_ .. ~~~~~JOO .0 Inc ....

:1 Magel Ian Behavioral Care of Magellan Heallh, ----... Iowa, Inc. ___ ~~ IL~~ ----- Magellan Health, Inc. ----- Ownersh i p ___ .100.0 Inc .. . _

~~~~ .. O.O 01 .. _----------..... ~~~~.~~O.O ~~~~~O

-- ---...... _---- ._--------....... _-- ~~~~.O .0 ~~~~O ~~~ .. O.O ~~~O

._---------...... _- ~~ ..... ~O.O ~.~~~~~~O .. _---------- ...... ~~~~.O. 0 ----- .... _----_ ... ~~~~~~O -------....... _--- ~~~.O.O ~~~O

~~ .. ~O.O ~~~~~~.~O ... ~~~O.O ~~~~~O

.. _- ------.-...... ~~~.O.O ~~~.O ~~.O.O ~~ .... ~O

~

0> .. ~~~~~O. 0 ~~~~~ .. O - -----....... --- ._-----------..... _. ~~~.O.O .. ~O - -----....... --- ~~~ .. O .0 ~~~~~~~O

....... _-----.....

I Asterisk r-- -- __ __ __ Explanation _ I ,- -,- .- .- - - - __ - __ - __ ~ ______________ ~ _____ - - - I


SUPPLEMENTAL EXHIBITS AND SCHEDULES INTERROGATORIES The following supplemental reports are required to be filed as part of your statement filing. However, in the event that your company does nol transact the type of business for which the special report must be filed, your response of NO to the specific interrogatory will be accepted in lieu of filing a "NONE" report and a bar code will be printed below. If the supplement is required of your company but is not being filed for whatever reason enter SEE EXPLANATION and provide an explanation following the interrogatory questions.

RESPONSE

1. Will the Medicare Part D Coverage Supplement be filed with the state of domicile and the NAte with this statement? NO ...

Explanation:

1.

BarCode:

1 . 11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 o 0 0 0 020 1 6 3 6 5 0 0 0 0 2

17


OVERFLOW PAGE FOR WRITE-INS

18

----------------------STATEMENT AS OF JUNE 30, 2016 OF THE Magellan Behavioral Care of Iowa, Inc.

SCHEDULE A - VERIFICATION Real Estate

1. Book/adjusted carrying value, December 31 of prior year .. 2. Cost of acquired:

3. ~~1~i~~I~~~~~~e;~:::~;:;:cqUisition •. · •• · •.•••••• K .. '()K··.··lmn ........... · ..... ·· :: 6~:~~a!"r!:~~ ~~~=s:~sdi·~posals __ .. ··· ......... -.-_-_-_-_-_-_-_I_:.:.:.~_-_-_-_· ___ .... ._ ... -_-_-_-______ -_-_·.·.I.:.:_:_:~.·.·.·_· ____ -_-.-.-_-_·_·.·.· ............ --6. Total foreign exchange change in book/adjusted carrying value. __

7. Deduct current year's other-than-temporary impairment recognized ... 8. Deduct current year's depreciation ... 9. Book/adjusted carrying value at the end of current period (Lines 1+2+3+4-5+6-7-8) .... __ ...

10. Deduct total nonadmitted amounts .... _____ .'_ ......... ______ .'_ ...................... . 11. Statement value at end of current period {Line 9 minus Line 10)

SCHEDULE B - VERIFICATION Mortgage Loans

1. Book value/recorded investment excluding accrued interest, December 31 of prior year ... 2. Cost of acquired:

2.1 Actual cost at time of acquisition .. 2.2 Additional investment made after acquisition ...

3. Capitalized deferred interest and other................. ... ~.. . .. ()..... ....... ~... .E· 4. Accrual of discount.. .. .............................................. ...... .... ......... .... ...... .... . .......... . 5. Unrealized valuation increase (decrease~............................ .. ... ... ............ .. .. ... ... .. 6. Total gain (loss) on disposals...... ............................. ..... ... .......... .... ..... .... . ........... . 7. Deduct amounts received on disposals..... ............ ........ ....... ...... ........ . .. . 8. Deduct amortization of premium and mortgage interest points and commibnent fees ..... . 9. Total foreign exchange change in book value/recorded investment excluding accrued interest ..

10. Deduct current year's other-than-temporary impainnent recognized ... 11. Book value/recorded investment excluding accrued interest at end of current period (Lines 1 +2+3+4+5+6-7-

8+9·10).. .................... . ................ . 12. Total valuation allowance ... 13. Subtotal (Line 11 plus Line 12) .... 14. Deduct total nonadmitted amounts ....................................................... . 15. Statement value at end of current period (Line 13 minus Line 14)

Year To Date

........ 0

....... D o

Year To Date

....... D ................... ..0

o

SCHEDULE BA - VERIFICATION Other Long-Tenn Invested Assets

1. Book/adjusted carrying value, December 31 of prior year ... 2. Cost of acquired:

2.1 Actual cost at time of acquisition ..

3. ~·;Pi~~::~~c:!t~;:';;::~~~~~ ~~~.~Uisition ............... ~~ ...... f\Jn€lf\J···~~····· ~~~~E···········~ 4. Accrual of dlscounl...... ............ ." .. ... ............ ..' ... . .... . ........... .

~: ~~::,a~!~d(~~~):~nd:~~~~:..~~~ase>- ............ ........ ..... .......... ............... . ...................... .

7. Deduct amounts received on disposals ...... . 8. Deduct amortization of premium and depreciation .................... . 9. Total foreign exchange change in book/adjusted carrying value

10. Deduct current year's other-than-temporary impainnent recognized ... 11. Book/adjusted carrying value at end of current period (Lines 1+2+3+4+5+6-7-8+9-10) ... 12. Deduct total nonadmitted amounts ........................................................ . 13. Statement value at end of current period {Line 11 minus Line 12)

SCHEDULE D - VERIFICATION Bonds and Stocks

1. Book/adjusted carrying value of bonds and stocks. December 31 of prior year .. 2. Cost of bonds and stocks acquired .. 3. Accrual of discount ......... . 4. Unrealized valuation Increase (decrease) ... 5. Total gain (loss) on disposals ..... . 6. Deduct consideration for bonds and stocks disposed of... 7. Deduct amortization of premium ... 8. Total foreign exchange change in book/adjusted carrying value ... 9. Deduct current year's other-than-temporary impairment recognized ...

10. Book/adjusted carrying value at end of current period (Lines 1 +2+3+4+5-6-7+8-9) ... 11. Deduct total nonadmitted amounts ........................................................ . 12. Statement value at end of curren~riod (bine 10 minus Line 11l.

5101

Year To Date

....... 0

.......................... D ..... 0

o

Year To Date

.......... .27 ,208. 488

............ 9.850,000 ........... 299.263

......... 17,059,225 .... 0

17 .059 ,225

2 Prior Year Ended

December 31

.......... 0 ....... 0 ...... 0

... D ........ 0 ...... 0

. .......... 0 .0

. ........ 0 . .................... 0

o

2 Prior Year Ended

December 31

2

..... 0

........... 0 . ....... 0 . ...... 0 ......... D

. ... D . ........ 0 . .... 0 ..0 . ....... D

.D

.......... D . .. D

. ........ D D o

Prior Year Ended December 31

.......... 0

o ..D

........ D

.... 0 . .......... 0

. ...... 0 ..... 0

. ........ 0

. ....... 0

....... 0 . ..... D

. .................. .... .0 o

2 Prior Year Ended

December 31

....... 57 . 396 , 289 . ......... ], 156.730

. ..... 0 ..0

. ........... 16, 196 ..36 ,429.987

........... 930.739 o

. .. 0 . ... .27 ,208,488

.0 27.208,488

Ul o ">


SCHEDULE D - PART 1 B Showing the Acquisitions. Dispositions and Non-Trading Activity

Durlna the Current Quarter for all Bonds and Preferred St. OCK DV NAI~ uesl nauon

2 3 4 5 Book/Adjusted Non·Trading Book/Adjusted Carrying Value Acquisitions Dispositions Activity Carrying Value

Beginning of During During During End of NAle Desianation Current Quarter Current Quarter Current Quarter Current Quarter First Quarter

BONDS

1. NAIC 1 (a).. . ........ Bl,726,952 ...... ..72,518,095 ... B3,833,OOO ................ (214,771) ...... .. Bl,726,952

2. NAIC2M .0 .... _-------- ................................... 0

3. NAIC 3 (a) ... .... D ......D

4. NAIC 4 (a) 0 ................................ 0

5. NAIC 5 (a) .... ..... 0 ---......... -------..... ........ .. 0

6. NAIC 6 (a) 0 0

7. Total Bonds 81.726,952 /2,518,095 83,833,000 1214,771 81,726,952

PREFERRED STOCK

8. NAIC 1. .... 0 .............. 0

9. NAte 2._ ... 0 --...... _----------, ...... .._--------- .... ,-- ............... 0

10. NAIC 3 .. ....... 0 ....0

11. NAIC4._ ..... 0 ............... 0

12. NAIC 5. 0 ........... D

13. NAle 6 __ 0 0

14. Tolal Preferred Stock.. __ 0 0 0 0 0

~5~ Total Bonds & Preferred S~ ~26~ /2,518,095 ~,833,0~ (214,771) 81.726,952

(a) Book/Adjusted Carrying Value column for the end of the current reporting period includes the following amount of non-rated short-tenn and cash equivalent bonds by NAIC designation: NAIC 1 $

NAIC 3 $ ;NAIC4$ ......... ;NAIC5$ .. ;NAIC6$.

6 7 8 Book/Adjusted Book/Adjusted Book/Adjusted Carrying Value Carrying Value Carrying Value

End of End of December 31 Second Quarter Third Quarter Prior Year

..70,197,276 ... ... 0 .........B1 ,342,404

0 ....... 0 ....... .....0

... D .. ....... 0 .. ___________ .... _.0 I

0 ....... 0 ......0

.. 0 . ... 0 ..... ... 0 I

0 0 0

70,197,276 0 81,342.404 I

I

.0 ... 0 ....................••••••••••••.••••• ~ I

0 ....... 0

.. 0 ...... 0 ..... .. 0

0 ..0 ......... 0

.D .. ..... 0 .........0

0 0 0

0 0 0

70,197,276 0 81,342,404

____ ..... ____ ; NAIC 2 $ _


SCHEDULE DA - PART 1 Short-Term Investments

1 2 3 4 5 Paid for Accrued

Book/Adjusted Interest Collected Interest

Carrvina Value Par Value Actual Cost YearTa Date Year To Date

9199999 31,145,843 XXX 31,154,668 i8,825 72,479

SCHEDULE DA - VERIFICATION Short-Term Investments

1 2 Prior Year

Year To Date Ended December 31

1. Book/adjusted canying value, December 31 of prior year ... ... 29,319,848 20,194,085

2. Cost of short-term investments acquired . ___ .. .. A4,41O,839 ........ A3,814,056

3. Accrual of discount .. .................. 2,100

4. Unrealized valuation increase (decrease) ____ .0

5. Tatar gain (loss) on disposals __ ..1,519

6. Deduct consideration received on disposals __ ----------..... .. .... A2, 302,000 .. ....... 34,078,348

7. Deduct amortization of premium . _----------...... . _---------........ -----------...... .. _-----------.. - ..... _-----------.- ... ..282,844 ................ 613,565

8. Total foreign exchange change in book/adjusted carrying value _____ .0

9. Deduct current year's other-than-temporary impairment recognized. __ .. ....... 0

10. Book/adjusted carrying value at end of current period (Lines 1 +2+3+4+5-6-7+8-9) ... .. 31,145,843 .. .... 29,319,848

11. Deduct total nonadmitted amounts ... .. .... ~

12. Statement value at end of current period (!.ine 10 minus Line 11) 31,145,843 29,319,848

8103


Schedule DB - Part A - Verification

NONE Schedule DB - Part B - Verification

NONE Schedule DB - Part C - Section 1

NONE Schedule DB - Part C - Section 2

NONE Schedule DB - Verification

NONE

8104, 8105, 8106, 8107

---------_._------_._----


SCHEDULE E - VERIFICATION (Cash Equivalents)

1. Book/adjusted carrying value, December 31 of prior yaaL

2. Cost of cash equivalents acquired __

3. Accrual of discount ________ '_ .......... .

4. Unrealized valuation increase (decrease) __

5. Total gain (loss) on disposals __ _

6. Deduct consideration received on disposals __

7. Deduct amortization of premium

8. Total foreign exchange change in book/adjusted carrying value

9. Deduct current year's other than temporary impainnent recognized __

10. Book/adjusted carrying value at end of current period (Unes 1+2+3+4+5-6-7+8-9) ..

11. Deduct total nonadmitted amounts __

12. statement value at end of current period lLine 10 minus Line 11}

SI08

Year To Date

2 Prior Year

Ended December 31

~~~~~.~~~~85, 980 ,250~~~~~~~~~~ .. ~~~.~~ ..... A5, 720,363

~~~~~~~108, 832, 181 ~~~~~~~~~~~~~~.~86, 975,306

~~~~~~~~~~ 71 ,291 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~23 , 381

~~~~~~~D

~~~O

~~..159,468,291

..81,956

~~~~~~~~.~ A6 , 626 , 417

~~.~.~~....112, 383

o ~~......O

~ .. ~~~.35, 333, 47 4~~~~~~~~~~ .. ~~B5, 980,250

~~~~~~~ .. ~O

35,333,474 85,980,250


Schedule A - Part 2

NONE Schedule A - Part 3

NONE Schedule B - Part 2

NONE Schedule B - Part 3

NONE Schedule BA - Part 2

NONE Schedule BA - Part 3

NONE Schedule 0 - Part 3

NONE

E01, E02,E03,E04

m o (J'I

CUSIP Identifica"--

2 3

F 0 , e

9

ltas, Territories and Pos:

4

Disposal Date

Bond: !10m ~on(

-=- litical Subdivisions of Sti E!E!cial Revenue and Special As

• mouslrial and Miscellaneous Unaflilia AII·L A & , Inc.. ..05/ ... _ ....

b!lJ4!l11-TS-L NBC Universal Media, LLC. ..04/0112016 .. 05531F-AF-0 .. 88&L .. 04129/2016 ..

3899999· Bonds· Ind Bonds - rid Securitie Bonds - Paren Subsldb

8399997 • Subtotals· I:IOno'" • 8399999 - Subtotals - Bonl .t., _ Industrial

, _ D" ... nI Cl;.

Common Common

la) n stock bearing the

tOuslL I Aflilia ::::;-nj

• 6

Number of Shares of

Name of Purchaser Stock

J" provide: the number·


SCHEDULE D - PART 4 Show All Lona·Tenn Bonds and Stock Sold Redeemed or otherwise OlsDOSed of During the Current Quam

7 8 • 10

Prior Year BookIAdjusted

Carrying Consideration Par Value Actual Cost Value

. ..... 2:050:000 [ :::::~2:050:ooo [ :::::2: 1i9:isj [ :::::2 :06i :502 ....... 900,000 ........ 900,000 L ........ 936,018 L .u ..... 908,m

7.250.000

7.250. 7,250,

11

Unrealized Valuation Increase!

(Decrease)

Chan e in Book/Acfusted Ca

12 13

Current Year's Other Than

Current Year's Temporary (Amortization)! Impairment

Accretion Recognized

.... ___ (11

"

n Value

14

T olal Change in B./A.C.V.

(11+12-13)

..... \ .1.502) . . .. IS.821

is.891

"

Total Foreign Exchange Change in B./A.C.V.

16

Book! Adjusted

Carrying Value at

Disposal Date

___ ...... 2.050,000 ,:::,~,~

17 18 " 20 21 22

NAIC Desig-

Bond nation Foraign Interesl/Stock Stated oc

Exchange Gain Realized Gain Total Gain Dividends Contractual Market (Loss) on (Loss) on (Loss) on Received Maturity Indicator Disposal Disposal Disposal During Year D"e Ie)

STATEMENT AS OF JUNE 3D, 2016 OF THE Magellan Behavioral Care of 10wa,lnc.

Schedule DB - Part A - Section 1

NONE Schedule DB - Part B - Section 1

NONE Schedule DB - Part D - Section 1

NONE Schedule DB - Part D - Section 2

NONE Schedule DL - Part 1

NONE Schedule DL - Part 2

NONE

E06,E07,EOB,E09,E10,E11

STATEMENT AS OF JUNE 30, 2016 OF THE Magellan Behavioral Care of Iowa, Inc. ,

SCHEDULE E - PART 1 - CASH Mon' , End ,- 2 3 4 5 , a. End. ~-!"':r 9

Month Amount of Amount of 6 7 8

Interest Interest Received Accrued at

Ra •• During Current

r.nrl. ! 'n'~: •• ' g~~~~~ sta6~,:!ent Fiffil Mnn'h "Aoond Mnnlh Th;,d Mnn'h .

, ~EL 'i;~~~ . j13.:~) I::: 0'99998 ~iDo'~;)!(!::::i!:i lor;:~;~r;r~

XXX

::Eli: I XXX

0" "0 r;oTB.735 B17.NT XXX

~ J:'Rrf'

E12

m ......

'"


SCHEDULE E· PART 2· CASH EQUIVALENTS

Osseri lion Bonds: U.S. Goverll!lenis· Issuer Obli alions Bonds: U.S. Goverrrnents· eSidential Mort Bonds: U.S. Governments· Coomercia/ Yort -Backed

Governments - Other loan-Backed and SITu IIXJIIU~. till Other Goverll!lenis

d Secur i ties

All Other Governments· Other loan-Backed and Strucl U.S. Stales, Territories and Possessions (Direct aoc U.S. States, Territories and Possessions (Direc! and Guaranteed) • Residential

3onds: U.S. States, Territories and Possessions Direct and Guaranteed • CormIercial Bonds: U.S. States, Territories and Possessions (Direct and Guaranteed) • ther loan·

··2

Code

3

ACQuired

Bonds: U.S. Political Subdivisions of States, Territories and Possessions (Direct and Guaranteed) - Issuer Obligations

Show

Bonds: U.S. Political Subdivisions of Stales, Territories and Possessions Direct and Guaranteed - Residentiaillort -Backed Bonds: U.S. Political Subdivisions of States, Territories and Possessions Direct and Guaranteed - Coomercial Mort -Backed Securities Bonds: U.S. Political Subdivisions of States. Territories and Possessions Direct and GJaranteed - Otner Loan-Ba::ked and Struclur Secur II ~ ~""";,,I D"""~",, ","..l <,,,,,,,;,,1 '''M''''~MI I'\I.I;""I;M" ",~..l ... 11 Non Guaranteed Obi gat ons of Agencies and Aulhorilies of Governments and T

wn Guaranteed Obi gat ons of Agencies and Authorities of Governments an< 'km Guaranteed Obi gal ons of Agencies and Author i Ii"" ", ~""M .. I ... ~.

ial Assessment Obi igat ions and all Non Guaranteed Obi gat ons of Agencies and Autho . (Unaffiliated) - 1~~lu!r nhlin:l/iMIl.

!.irgi.nia Electric Power coomerci.al PapeL ___ ... Virginia Electric Power ConInercial PapeL ____ _ Virginia Electric Power ConInercral PapeL __

-- .... -. Inc. Ccmercial paper IIIIllercial Pas; II and Miscel II" ..... """ II.".

Securities· Residen" Securities - Corrmerc

Residi Come -.-.,-

lcige-BackeifSeCUr i tie! !!!lE! -Backed Secu r i ties 1 and Structured SeCUl ,I~I~

" ies - Other Loan-Backed and Structured Securit ie!; iaries and Affiliates Bonds - Issuer Obligations liar ies and Aff i I iates Bonds - Resident ial Mortgage-Backed Securi t ie~

iales Bonds - Coornercial Mortgage-Backed Securities "iates Bonds - Other Loan-Backed and Structured Secur

s _ Subtotals _ Issuer 1'\1.1 ;nool ;M~

S - Subtotals - Bonds iiS

We lis Fargo-Operat ions ... Wells Far -CoI1IIIuni t

8499999 - 'Ii Acc( Other Cash E uivalent~ 869~9 Total Cash I

sOwned End 4

Rate of Interest

It 01

5

Date

.. cal Subd v s ons - Issuer Obi igalions cal Subd v s ons - Resideotial Martgat cal Subd v s ons - Connercial MortgagE cal Subd v s OIlS - Other Loan-Backed <

. •. 750 •... ..... D.700

.D.720 •..

------::::::::::~: ~~_ t-- ------------.-~; ~~;

6

. ....... v· • __ •• __

______________ 6.497.725 ____________ 3.997.440

___ .4,999,007 2,999,567 1,992,

~ 21,992.207

),278

35.33,4741

7 Amount of Interest

Due & Accrued

...Q.

8 "., ...... 'tRt=¥ ..... ,

During Year

•

o

....Q.

____ B70 .... 376

-:w ',247

Documents

Magellan Behavioral Care of Iowa, Inc.111111111111 111111111111111111111111111111 o 0 0 0 0 2 0 11111111111111111111111111111111111111 0100102 quarterly statement as of …