2019-10-10T07:18:48-05:00 2018-12-31 420714325 RSM US LLP 1861 INTERNATIONAL DRIVE SUITE 400 MCLEAN VA 22102 990 2018-01-01 383676760 PHARMACEUTICAL CARE MANAGEMENT ASSOCIATION PHAR 2027565700 325 7TH STREET 9TH FLOOR WASHINGTON DC 20004 RYAN HICKEY CHIEF FINANCIAL OFFICER 2027565700 2019-10-09 1 YONG ZHANG CPA P01249785 7033366400 66.98.98.130 2019-10-09 12:16:10 ED P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 5BB3B986E96693C9FA12ABDB8E5DE88F5CFF60A5 2018 2020-01-14 16:20:31Z PCMA MARK MERRITT 325 7TH STREET 9TH FLOOR WASHINGTON DC 20004 28068221 0 X WWW.PCMANET.ORG X 2003 DE THE PHARMACEUTICAL CARE MANAGEMENT ASSOCIATION (PCMA) IS THE NATIONAL ASSOCIATION REPRESENTING AMERICA'S PHARMACY BENEFIT MANAGERS (PBMS). PBMS ADMINISTER PRESCRIPTION DRUG PLANS FOR MORE THAN 270 MILLION AMERICANS WHO HAVE HEALTH INSURANCE FROM A VARIETY OF SPONSORS INCLUDING: COMMERCIAL HEALTH PLANS, SELF-INSURED EMPLOYER PLANS, UNION PLANS, MEDICARE PART D PLANS, THE FEDERAL EMPLOYEES HEALTH BENEFITS PROGRAM (FEHBP), STATE GOVERNMENT EMPLOYEE PLANS, MANAGED MEDICAID PLANS, AND OTHERS. 9 9 29 9 0 61466 0 0 24142480 27955124 60601 113097 0 0 24203081 28068221 0 0 0 0 10208396 14145613 0 0 0 14090006 13137695 24298402 27283308 -95321 784913 14781146 18991760 7866018 11291719 6915128 7700041 X PCMA'S VISION AND MISSION ARE TO HELP PEOPLE OPTIMIZE PRESCRIPTION DRUG THERAPY TO LIVE HEALTHIER LIVES. WE STRIVE TO CREATE A FAVORABLE PUBLIC POLICY AND BUSINESS ENVIRONMENT FOR PHARMACEUTICAL CARE BENEFITS MANAGERS INDUSTRY (PBM) TO ACHIEVE POSITIVE HEALTHCARE OUTCOMES FOR PEOPLE BY MANAGING ACCESS TO APPROPRIATE, AFFORDABLE, AND SAFE PRESCRIPTION DRUGS. 0 0 PCMA SHAPES PRO-PBM FEDERAL AND STATE LEGISLATIVE AND REGULATORY ENVIRONMENTS BY ADVANCING PCMA MEMBER COMPANY APPROVED POLICY PRIORITIES. PCMA'S OBJECTIVE IS TO BUILD A FOUNDATIONAL UNDERSTANDING OF THE VALUE OF THE PBM INDUSTRY AMONG FEDERAL AND STATE POLICYMAKERS, THOUGHT LEADERS AND THE MEDIA. PCMA'S GOAL IS TO DEEPEN THE PBM'S RELATIONSHIP WITH PATIENT GROUPS, HEALTHCARE PROVIDERS, PAYORS, DRUG MAKERS AND OTHER STAKEHOLDERS IN THE PHARMACEUTICAL SUPPLY CHAIN TO FIND AREAS OF ALIGNMENT THAT WILL BUILD STRATEGIES TO MITIGATE CONFLICTS AND BUILD POSITIVE RELATIONSHIPS BETWEEN INDUSTRIES. 0 0 1 1 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 0 0 0 1 1 0 0 1 68 0 1 29 1 1 1 0 0 0 0 0 1 0 X 9 9 0 0 0 0 1 1 0 1 1 0 0 0 1 1 1 1 1 1 1 0 DC X RYAN HICKEY CFO 2027565700 325 7TH STREET 9TH FLOOR WASHINGTON DC 20004 RANDY HYUN DIRECTOR 1.00 0.10 X 0 0 0 JON ROBERTS DIRECTOR 1.00 0.10 X 0 0 0 TIM WENTWORTH DIRECTOR 1.00 0.10 X 0 0 0 WILLIAM FLEMMING DIRECTOR 1.00 0.10 X 0 0 0 MOSTAFA KAMAL DIRECTOR 1.00 0.10 X 0 0 0 GREG WATANABE DIRECTOR 1.00 0.10 X 0 0 0 JOHN PRINCE DIRECTOR 1.00 0.10 X 0 0 0 CHRIS BRADBURY DIRECTOR 1.00 0.10 X 0 0 0 JIM DUCHARME DIRECTOR 1.00 0.10 X 0 0 0 MARK MERRITT PRESIDENT & CEO 40.00 X 1491828 0 80259 JUAN CARLOS SCOTT PRESIDENT & CEO 40.00 X 393776 0 42028 KRISTIN BASS SENIOR VP 40.00 X 806014 0 58140 BRIAN MCCARTHY COO 40.00 X 592800 0 5090 BARBARA LEVY VP/GENERAL COUNSEL/SEC. 40.00 X 551247 0 73356 BRENDA PALMER CAO & TREASURER 40.00 X 469524 0 68469 RYAN HICKEY CFO 40.00 X 251692 0 34612 LAUREN ROWLEY VP STATE AFFAIRS 40.00 X 511983 0 55686 WENDY KRASNER VP REGULATORY 40.00 X 469074 0 74568 GREG JOHNSON VP STRATEGIC INITIATIVES 40.00 X 439451 0 71390 CHARLES COTE VP PUBLIC AFFAIRS 40.00 X 403828 0 32503 JONATHAN HEAFITZ VP FEDERAL AFFAIRS 40.00 X 390237 0 65682 6771454 0 661783 12 0 1 0 MCDERMOTT WILL & EMERY LLP PO BOX 6043 CHICAGO IL 60680 INDUSTRY LEGAL SUPPORT 860449 MCCARTHY GROUP INCORPORATED C/O 325 7TH STREET NW 9TH FLOOR WASHINGTON DC 20004 INDUSTRY STRATEGY & CONFERENCE CONSULTAN 706073 FOLEY HOAG LLP 155 SEAPORT BOULEVARD BOSTON MA 02210 INDUSTRY LEGAL SUPPORT 467285 TOBA COMMUNICATIONS 12931 OAK LAWN PLACE OAK HILL VA 20171 PR AND MEDIA CONSULTANT 449517 JENNINGS POLICY STRATEGIES INC 401 9TH ST NW - SUITE 770 WASHINGTON DC 20004 CORE ISSUES STRATEGY CONSULTANT 275000 14 MEMBERSHIP DUES 900099 16499492 16499492 INDUSTRY RELATIONS 611430 10699661 10699661 LITIGATION SUPPORT 900099 755971 755971 27955124 113097 113097 28068221 27955124 0 113097 X 4918835 7505485 533844 394924 792525 245541 6765357 1611421 130601 182342 1151465 490601 1662249 195527 37404 PERSONNEL SEARCH 506667 DUES / SUBCRIPTIONS 68956 CONTENT DEVELOPMENT 49780 OTHER EXPENSES 39784 27283308 3207828 6301150 5302491 5194417 1781582 2734077 546233 791469 1797888 692713 1286059 1105175 2270966 2492137 385987 373335 14781146 18991760 1165026 3923151 2703205 4318638 3997787 3049930 7866018 11291719 X 6915128 7700041 6915128 7700041 14781146 18991760 784913 0 X X 0 1 X 1 0 81800 81800 81800 1 0 0 0 16499492 2776574 2776574 2776574 PART I-A, LINE 1: DURING 2018 PCMA CONTRIBUTED TO VARIOUS STATE AND LOCAL POLITICAL CAMPAIGNS. 1373056 452091 920965 424832 240622 184210 1105175 DEFERRED RENT 1729597 DEFERRED COMPENSATION 373335 DEFERRED LITIGATION SUPPORT 946998 3049930 X 28068221 0 28068221 0 28068221 27283308 0 27283308 0 27283308 PART X, LINE 2: THE ASSOCIATION IS GENERALLY EXEMPT FROM FEDERAL INCOME TAXES UNDER THE PROVISIONS OF SECTION 501(C)(6) OF THE INTERNAL REVENUE CODE (IRC). INCOME, WHICH IS NOT RELATED TO EXEMPT PURPOSES, LESS APPLICABLE DEDUCTIONS, IS SUBJECT TO INCOME TAXES. EFFECTIVE JANUARY 1, 2018, THE ASSOCIATION IS NOW SUBJECT TO UNRELATED BUSINESS INCOME TAX ON CERTAIN PRETAX BENEFITS AND CERTAIN SALARY LEVELS OF EMPLOYEES. INCOME TAX EXPENSE FOR THE YEAR ENDED DECEMBER 31, 2018 WAS INSIGNIFICANT. MANAGEMENT EVALUATED THE ASSOCIATION'S TAX POSITIONS AND CONCLUDED THAT THE ASSOCIATION HAS TAKEN NO UNCERTAIN TAX POSITIONS THAT REQUIRE ADJUSTMENT TO THE FINANCIAL STATEMENTS. X X X 1 0 0 MARK MERRITT PRESIDENT & CEO 991138 0 0 0 500690 0 41250 0 39009 0 1572087 0 0 0 JUAN CARLOS SCOTT PRESIDENT & CEO 393776 0 0 0 0 0 41250 0 778 0 435804 0 0 0 KRISTIN BASS SENIOR VP 434392 0 370332 0 1290 0 41250 0 16890 0 864154 0 0 0 BRIAN MCCARTHY COO 136800 0 0 0 456000 0 0 0 5090 0 597890 0 0 0 BARBARA LEVY VP/GENERAL COUNSEL/SEC. 336023 0 213934 0 1290 0 41250 0 32106 0 624603 0 0 0 BRENDA PALMER CAO & TREASURER 292904 0 174640 0 1980 0 41250 0 27219 0 537993 0 0 0 RYAN HICKEY CFO 170299 0 81123 0 270 0 25839 0 8773 0 286304 0 0 0 LAUREN ROWLEY VP STATE AFFAIRS 345059 0 166234 0 690 0 41250 0 14436 0 567669 0 0 0 WENDY KRASNER VP REGULATORY 296449 0 168815 0 3810 0 41250 0 33318 0 543642 0 0 0 GREG JOHNSON VP STRATEGIC INITIATIVES 292269 0 146770 0 412 0 41250 0 30140 0 510841 0 0 0 CHARLES COTE VP PUBLIC AFFAIRS 200523 0 203080 0 225 0 30078 0 2425 0 436331 0 0 0 JONATHAN HEAFITZ VP FEDERAL AFFAIRS 270687 0 119250 0 300 0 41250 0 24432 0 455919 0 0 0 PART I, LINE 4A COMPENSATION FOR TWO EMPLOYEES THAT RECEIVED A SEVERANCE PAYMENT FROM THE ORGANIZATION WAS PROPERLY REPORTED ON FORM 990 PART VII AND SCHEDULE J. PART II AND RESPECTIVE W2S. THE TERMS AND CONDITIONS OF THE AGREEMENT ARE CONFIDENTIAL AND CAN BE MADE AVAILABLE TO THE IRS UPON REQUEST. MCCARTHY GROUP INCORPORATED SEE PART V 706073 SEE PART V 0 SCH L, PART IV, BUSINESS TRANSACTIONS INVOLVING INTERESTED PERSONS: (A) NAME OF PERSON: MCCARTHY GROUP INCORPORATED(B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION:FORMER OFFICER, BRIAN MCCARTHY, OWNS MCCARTHY GROUP INCORPORATED.(C) AMOUNT OF TRANSACTION $ 706,073.(D) DESCRIPTION OF TRANSACTION: THE FORMER OFFICER SERVED AS AN INDUSTRY STRATEGY AND CONFERENCE CONSULTANT.(E) SHARING OF ORGANIZATION REVENUES? = NO FORM 990, PART VI, SECTION A, LINE 6 PCMA HAS 9 BOARD LEVEL MEMBERS AND 8 NON-BOARD LEVEL MEMBERS. FORM 990, PART VI, SECTION A, LINE 7A PCMA HAS 9 VOTING MEMBER COMPANIES THAT VOTE ON NEW MEMBERS AND ALSO WHETHER THEY CAN SIT ON THE BOARD. FORM 990, PART VI, SECTION B, LINE 11B THE CHIEF FINANCIAL OFFICER REVIEWS THE ASSOCIATIONS FORM 990 PRIOR TO MAILING TO THE IRS. THE 2018 FORM 990 WAS REVIEWED ON AUGUST 26, 2019. THE REVIEW INCLUDES COMPARISON OF ALL REPORTED NUMBERS TO THE AUDITED FINANCIAL STATEMENTS FOR ACCURACY. A REVIEW OF ALL WRITTEN STATEMENTS IS CONDUCTED FOR ACCURACY AND CONSISTENCY WITH THE STATED PURPOSE. FORM 990, PART VI, SECTION B, LINE 12C PCMA'S EMPLOYMENT HANDBOOK DEFINES CONFLICT OF INTEREST FOR PCMA. IT IS EACH EMPLOYEE'S RESPONSIBILITY TO READ AND ABIDE BY ALL EMPLOYMENT POLICIES OF PCMA. PCMA PERIODICALLY UPDATES THE EMPLOYEE HANDBOOK AND THE CAO FORWARDS UPDATED COPIES TO ALL EMPLOYEES WITH A REQUEST THAT THEY REVIEW AND BECOME FAMILIAR WITH THE UPDATES AND ALL SECTIONS OF THE HANDBOOK. FORM 990, PART VI, SECTION B, LINE 15 PCMA PURCHASES VARIOUS ASSOCIATION SALARY STUDIES TO ENSURE THAT ALL SALARIES ARE COMMENSURATE WITH THE INDUSTRY AND THE ASSOCIATION MARKET PLACE. THE BOARD OF DIRECTORS WILL REVIEW THE CEO'S SALARY WHEN APPROPRIATE. FORM 990, PART VI, SECTION C, LINE 19 FORM 990 IS AVAILABLE FOR INSPECTION BY REQUEST AT PCMA OFFICES LOCATED AT 325 7TH STREET NW, 9TH FLOOR, WASHINGTON, DC 20004. GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE NOT MADE PUBLICLY AVAILABLE. FORM 990, PART IX, LINE 11G STATE CONSULTANTS 1,761,280. COALITION BUILDING 545,921. CONSULTANTS-OUTSIDE 1,874,918. LITIGATION 755,971. OTHER FEES 344,676. PROFESSIONAL SUPPORT 773,840. RESEARCH STUDIES 580,857. STATE TRACKING SERVICE 127,894. FORM 990, PART XII, LINE 2C THE PROCESS FOR OVERSEEING THE AUDIT OF THE FINANCIAL STATEMENTS AND SELECTION OF AN INDEPENDENT ACCOUNTANT THAT AUDITED THE FINANCIAL STATEMENTS HAS BEEN CONSISTENT WITH PRIOR YEARS. PCMA FOUNDATION 325 7TH STREET 9TH FLOOR WASHINGTON DC 20004 472487430 RESEARCH ON PRESCRIPTION DRUG MANAGEMENT AND OTHER CHARITABLE ACTIVITIES DC 501(C)(3) LINE 12B, II PCMA 1 PCMA PAC 325 7TH STREET 9TH FLOOR WASHINGTON DC 20004 200117371 PAC DC 527 PCMA 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0