2017-11-07T12:04:11-06:00 2016-12-31 990 2016-01-01 363573805 UCare Minnesota UCAR 6126766500 500 Stinson Blvd NE Minneapolis MN 55413 Beth Monsrud SVP & CFO/Treasurer 6126766500 2017-11-02 192.31.188.252 2017-11-07 11:58:18 CS P 96BC5637564A7949694375C8E3BA3A57F149EC0A 9441BAE2D6CDDD596F7D6C51223BC651677B384C 2016 2021-01-29 14:40:06Z Mark W Traynor 500 Stinson Blvd NE Minneapolis MN 55413 2122759199 0 X www.ucare.org X 1987 MN To operate a health maintenance organization dedicated to promoting the health of the community served by making quality health care available on an economically advantageous prepaid basis. 15 7 919 2600 0 0 58095 133852 3523952199 1686189115 12874374 17563014 662623 1367823 3537547291 1705253804 0 0 0 0 91198551 65339542 0 0 0 3419448244 1663487885 3510646795 1728827427 26900496 -23573623 1272748895 984957312 687562462 422368840 585186433 562588472 X UCare will improve the health of our members through innovative services and partnerships across communities. 0 0 1678259716 0 1686189115 UCare operates a health maintenance organization (HMO) providing coordinated health care and coverage for over 152,183 individuals from the community enrolled in state public programs, federal Medicare Advantage programs, and Mnsure marketplace plans, including Medicaid and Medicare, and indivudual and family policies. UCare's programs provide services to seniors, low-income families, those with physical disablilities and other individuals who may have challenges accessing health care. UCare also serves those seeking individual and family plan coverage through Mnsure. UCare's mission is to improve the health of our members through innovative services and partnerships across communities.In 2016, UCare's quality monitoring and program initiatives demonstrated many significant activities and outcomes. The highlights are outlined as follows;-Statistically significant (p>0.05) clinical improvements for our members were identified in the following Healthcare Effectiveness Data and Information Set ("HEDIS") measurements for Medicare and Medicaid: Controlling High Blood Pressure, HbA1c Control for Diabetes, Asthma Medication Adherence, Annual Monitoring for Members on Persistent Medications, and Medication Reconciliation Post Discharge. Beyond HEDIS measures, statistically significant improvement was observed in Medication Adherence for Diabetes, Statins, and Hypertension Medications.-UCare's health improvement efforts also were reflected in 2016 by earning 4.5 stars out of 5 in the CMS Medicare Performance Assessment report for its UCare for Seniors product and 3.5 for the Minnesota Senior Health Options product.UCare provides many health promotion, disease management, care management and wellness programs. These efforts not only benefit the health of its enrollees, but positively affect their families and larger communities. Examples include: disease management programs for asthma, diabetes, chronic kidney disease and congestive heart failure; falls prevention programs to improve safety of seniors; Management of Maternity Services (M.O.M.S.) programs that provide resources to enrollees and providers to improve pregnancy and post-partum health, car seat distribution and education to pregnant women; and distribution of free materials on health education and proper use of urgent and emergency facilities at community forums. In addition UCare supports member health with access to many different fitness options as well as discounts on services that are health and wellness related but may not be covered by the members plan, including alternative medicine and community education. UCare's Mobile Dental Clinic, operated with the University of Minnesota's School of Dentistry, offers quality oral health care to UCare members with dental access issues. From September-December 2016, the MDC staff performed 692 preventive and restorative procedures for more than 277 members at nine sites in Minnesota.UCare health plan employees also devoted time to participate in collaborations that support efforts to improve health care quality and advance public health and health care access, including projects aimed at reducing language and cultural barriers. Examples of organizations and collaborations with which our employees worked include: Community Health Worker Project, Institute for Clinical Systems Improvement, Minnesota Community Measurement, Health Literacy Partnership, Interpreter Stakeholders Group, Metro and Minnesota Public Health Association/Health Plan Collaboration, and the Multilingual Health Resource Exchange. 0 0 0 In addition to UCare's core business of providing public health care program plans that seek to improve the health of our communities, UCare's community benefit program reaches out to: -Address social determinants of health; -Strengthen providers that serve populations with challenges accessing care; -Encourage the wellness of families and seniors; -Support research, programs, and organizations that benefit health care quality and delivery.Through UCare's Community Benefit Program, UCare makes financial contributions to the extent funds are available for general community benefit. Previously extended funds to the University of Minnesota Medical School, Department of Family Medicine & Community Health which supported activities in 2016 to enhance and strengthen family medicine education, research, and innovative health service delivery that improves the health of people and communities of Minnesota. In addition to providing critical funding to support family medicine education, efforts include: the Rural Physician Associate Program; development of global health educational experience for residents and medical students; volunteering to provide preventative health services to underserved populations at homeless and free clinics; mentoring North Minneapolis youth interested in medical careers; working with high risk adolescents at job corps centers; and research in health disparities, post-partum, depression, and smoking cessation programs.UCare provides support for the UCare Foundation a community-directed initiative of UCare. Grant-making from the Foundation is focused on programs and initiatives that improve the health of underserved populations in the Twin Cities and throughout Greater Minnesota with innovative services, education, community outreach, and research. 2016 support provided by the Foundation using funds contributed by UCare include the following programs and projects: -Amherst H. Wilder Foundation: Expansion of the Twin Cities Mobile Market, a grocery store on wheels that sells healthy foods at below-market prices in low-income neighborhoods. Over 275,000 low-income residents in the Twin Cities do not have ready access to grocery stores that sell fresh, healthy foods. -Somali Community Resettlement Services: goal to improve the overall health of new immigrant adults and children and help reduce the health disparity gap in our state. -Southern Minnesota Regional Legal Services: provides critical civil legal services to a low income populations. SMRLS helps individuals and families secure and protect their basic needs, maintaining freedom from hunger, homelessness, sickness, and abuse.During 2016, UCare also helped many community organizations and providers delivering services, research, and programs that reach beyond UCare's membership, including efforts to strengthen the social safety net for at-risk families and seniors. Examples include: the Courage Kenny Rehabilitation Institute as they maximize the quality of life for people of all ages and abilities by delivering comprehensive, person-centered rehabilitation; HIV-specific housing and supportive services through Clare Housing; Human Rights Campaign that works to ensure basic equal rights to lesbian, bisexual, transgender and queer people; National Alliance for the Mentally Ill, a grassroots organization dedicated to building better lives for those affected by mental illness; Lutheran Social Services Senior Companion Program as it impacts and enhances the lives of many older adults who are attempting to remain in their own homes; and the Minnesota Academy of Family Physicians Research Forum which provides opportunities for family medicine researchers to share innovations in their field.Finally, UCare also encourages employees and their families to volunteer time and financial resources in the community. UCare provides organizational support for volunteer services to education, social services, and health organizations that build capacity in local communities to improve the welfare of at-risk families and seniors. Examples of employee volunteer efforts include support for the following: Adopt-a-Family Gift Drive, Food/School Supply Drives, Jeremiah House "Cook for Kids", Northeast Dinner Bell, Keystone Community Services and Little Brothers Friends of the Elderly. 1678259716 1 1 0 1 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 6643 0 919 1 0 0 0 0 0 0 0 0 0 0 X 15 7 0 0 0 0 0 1 0 1 1 0 0 1 1 1 1 1 1 1 1 0 MN X X Greg Marshall 6126766500 500 Stinson Blvd NE Minneapolis MN 55413 Macaran Baird MD Board Chair 0.20 40.40 X X 9312 354990 107646 James Van Vooren MD Vice Chair 0.20 40.40 X X 11500 183844 76823 Patricia Adam MD Director 0.20 40.40 X 7750 177751 72481 Charity Bennett Director 0.10 0.20 X 3393 0 0 Mirella Ceja-Orozco Director 0.10 0.20 X 4008 0 0 Catherine Godlewski Director 0.20 40.40 X 8000 164205 36550 John Gross Director 0.10 0.20 X 8501 0 0 P Jay Kiedrowski Director 0.10 0.20 X 11407 0 0 Teresa McCarthy MD Director 0.20 40.40 X 12050 182557 53767 Bert McKasy Director 0.10 0.20 X 12466 0 0 James Miller Director 0.10 0.20 X 9164 0 0 Peter Mitsch Director 0.20 40.40 X 10760 243822 61225 William Roberts MD Director 0.20 40.40 X 8126 169872 78822 Sharon Shonka Former Director thru Aug-16 0.10 0.20 X 6198 0 0 Lance Teachworth Director 0.10 0.20 X 7075 0 0 Michael Wootten MD Director 0.20 40.40 X 6500 223344 53609 James Eppel Jr President & Chief Executive Officer 40.00 0.20 X 813573 0 113309 Mark Traynor Secretary/SVP & General Counsel 40.00 0.20 X 407644 0 60620 Beth Monsrud Treasurer/SVP & CFO 40.00 0.20 X 462830 0 69117 Russel Kuzel Chief Medical Officer thru Mar-2016 40.00 0.20 X 177159 0 27944 Hilary Marden-Resnik SVP & Chief Administrative Officer 40.00 0.20 X 385617 0 59468 Ghitann Worcester SVP Public Affairs & Development 40.00 0.20 X 398866 0 58232 Lawrence Lee MD Chief Medical Officer 40.00 0.20 X 224866 0 47153 Michael Lynch Medical Director 40.00 0.00 X 299097 0 16749 Jamie Carsello Chief Informatics Officer 40.00 0.00 X 270119 0 19335 Lisa Mattson Associate Medical Director 40.00 0.00 X 230548 0 20262 Patricia Ball Corporate Strategy Director 40.00 0.00 X 226199 0 21992 Deborah Cashin Chief Information Officer 40.00 0.00 X 221810 0 14947 Thomas Mahowald Former SVP Stategy/Product Development thru Oct-15 40.00 0.00 X 348789 0 3636 Edith Dorsey Former SVP Operations thru Oct-15 40.00 0.00 X 276448 0 6665 4879775 1700385 1080352 149 1 1 0 OPTUMINSIGHT 2771 MOMENTUM PL CHICAGO IL 606895327 Chart Review, Actuarial & Consulting 7581327 PEGASYSTEMS INC 1 ROGERS ST CAMBRIDGE MA 021421209 Software Licensing & Support 2977894 EAGLE CREEK SOFTWARE SERVICES INC 10050 CROSSTOWN CIR 650 EDEN PRAIRIE MN 55344 Contract Programming & Consulting 2235142 TOP TIER CONSULTING 21550 OXNARD ST 3RD FLOOR WOODLAND HILLS CA 91367 IS Consulting Support 1831485 IKASYSTEMS CORPORATION 134 TURNPIKE RD SOUTHBOROUGH MA 01772 Billing & Enrollment Services 1679721 79 133852 133852 Medicare/Medicaid Payments 524114 1508685721 1508685721 Medicare Member Premiums 524114 143246804 143246804 Individual Member Premiums 524114 21444211 21444211 Federal Subsidized Payments 524114 12812379 12812379 1686189115 16763751 16763751 3312491 1945912 1366579 1366579 1366579 416358746 415559410 73 799336 -73 799263 799263 Misc Revenue 524114 1244 1244 1244 1705253804 1686189115 0 18930837 X 3442609 3442609 47597038 37180293 10416745 2121416 1411802 709614 8790130 6564911 2225219 3388349 2571188 817161 267854 267854 273598 15168 258430 127000 127000 613854 613854 1600047102 1595545591 4501511 8129003 8129003 3277944 1591429 1686515 20949040 14295864 6653176 4396592 2742569 1654023 252401 181867 70534 298163 192497 105666 8561813 5893030 2668783 634406 436657 197749 Taxes & Assessments 13091645 13091645 Licenses/Fees/Dues 1715800 1219420 496380 Bad Debt Expense 371388 371388 Other Misc Expenses 274488 161427 113061 205794 205794 1728827427 1678259716 50567711 0 -7893784 64490342 346281791 94948811 224515642 79342653 2621253 2108366 76478678 38971162 40822548 37507516 635420806 676080577 30980639 30479047 1272748895 984957312 557023332 326390025 118085324 90393156 12453806 5585659 687562462 422368840 X 585186433 562588472 585186433 562588472 1272748895 984957312 -23573623 975664 0 X 0 1 X 1 0 X 58095 133852 191947 2233356809 2417633267 360479025 3523952199 1686189114 10221610414 2233356809 2417633267 360479025 3524010294 1686322966 10221802361 0 0 0 10221802361 6339240 6901539 12789444 16502641 20076242 62609106 6339240 6901539 12789444 16502641 20076242 62609106 83308 25477 32380 7685 1244 150094 2239779357 2424560283 373300849 3540520620 1706400452 10284561561 0.99390 0.99490 0.00610 0.00510 X Schedule A, Part III, Line 12, Explanation for Other Income Other misc revenue RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1 1 0 0 0 0 1 296730 0 0 296730 0 Part II-B, Line 1: Track legislation, attend legislative hearings and meet with legislators to either support or oppose legislation that affects UCare's public program business on both the state and federal level. 2221498 2221498 23577393 1238249 22339144 3893313 3406483 486830 30155034 23321508 6833526 16631440 11004922 5626518 37507516 Post Retirement Benefit Option 5306782 Payable to Subsidiary 278877 5585659 X Part X, Line 2: UCare has elected to adopt guidance in the income tax standard regarding the recognition and measurement of uncertain tax positions. UCare follows the accounting standard for contingencies for evaluating uncertain tax positions. The adoption of this standard has no effect on UCare's financial statements. UCare's tax returns are subject to review and examination by federal, state, and local authorities. X X X X X X 1 0 0 0 0 0 0 0 0 Macaran Baird MD Board Chair 9312 354660 0 0 0 330 0 83075 0 24571 9312 462636 0 0 James Van Vooren MD Vice Chair 11500 183501 0 0 0 343 0 54087 0 22736 11500 260667 0 0 Patricia Adam MD Director 7750 177408 0 0 0 343 0 52087 0 20394 7750 250232 0 0 Catherine Godlewski Director 8000 163862 0 0 0 343 0 26251 0 10299 8000 200755 0 0 Teresa McCarthy MD Director 12050 182214 0 0 0 343 0 27900 0 25867 12050 236324 0 0 Peter Mitsch Director 10760 243479 0 0 0 343 0 39137 0 22088 10760 305047 0 0 William Roberts MD Director 8126 169529 0 0 0 343 0 53005 0 25817 8126 248694 0 0 Michael Wootten MD Director 6500 223001 0 0 0 343 0 33480 0 20129 6500 276953 0 0 James Eppel Jr President & Chief Executive Officer 711853 0 105000 0 -3280 0 99752 0 13557 0 926882 0 0 0 Mark Traynor Secretary/SVP & General Counsel 314305 0 61433 0 31906 0 51628 0 8992 0 468264 0 35278 0 Beth Monsrud Treasurer/SVP & CFO 371283 0 55956 0 35591 0 56322 0 12795 0 531947 0 41610 0 Russel Kuzel Chief Medical Officer thru Mar-2016 120684 0 56475 0 0 0 18606 0 9338 0 205103 0 27945 0 Hilary Marden-Resnik SVP & Chief Administrative Officer 309304 0 46704 0 29609 0 50179 0 9289 0 445085 0 34986 0 Ghitann Worcester SVP Public Affairs & Development 314562 0 46534 0 37770 0 51628 0 6604 0 457098 0 36188 0 Lawrence Lee MD Chief Medical Officer 228876 0 0 0 -4010 0 36290 0 10863 0 272019 0 0 0 Michael Lynch Medical Director 275755 0 27277 0 -3935 0 9288 0 7461 0 315846 0 0 0 Jamie Carsello Chief Informatics Officer 246668 0 27255 0 -3804 0 10304 0 9031 0 289454 0 0 0 Lisa Mattson Associate Medical Director 227065 0 9502 0 -6019 0 9195 0 11067 0 250810 0 0 0 Patricia Ball Corporate Strategy Director 210002 0 22360 0 -6163 0 9295 0 12697 0 248191 0 0 0 Deborah Cashin Chief Information Officer 203606 0 17732 0 472 0 8854 0 6093 0 236757 0 0 0 Thomas Mahowald Former SVP Stategy/Product Developme 0 0 46760 0 302029 0 0 0 3636 0 352425 0 31497 0 Edith Dorsey Former SVP Operations thru Oct-15 -2333 0 30792 0 247989 0 0 0 6665 0 283113 0 30792 0 Part I, Line 4a The following persons listed within the Form 990, Part VII, Section A, Line 1a received severance during 2016. Edith Dorsey in the amount of $221,293; Tom Mahowald in the amount of $275,000. Form 990, Part VI, Section A, line 1 Eight directors affiliated with the University of Minnesota Medical School, Department of Family Medicine are reported here as not independent. The Medical School/Department is not a traditional parent organization of UCare, and does not directly appoint or elect all of these directors. The Department also does not have direct removal authority for all of these directors, and removal of a director under the bylaws requires the vote of at least one director not affiliated with the Medical School/Department. However, the Medical School/Department has indirect control of the appointment and election process of these eight directors. One Director is appointed by the Dean of the Medical School, two Directors (including the Chair) are on the Board by virtue of their positions at the Department, and the Chair appoints five physicians on faculty at the Department. UCare's current Board includes six independent Directors: five Directors who are enrollees of UCare's plan, and an at-large Director from the community. Under Minnesota law, the Board is charged to act in the best interests of the Corporation. See Minn. Stat. Sections 62D.12, subd. 9 and 317A.251. UCare's bylaws describe an executive committee subject to the control of the Board and with the authority to only meet between scheduled meetings of the Board and to take actions on certain matters. This executive committee rarely is convened and did not meet during 2016. Form 990, Part VI, Section A, line 7a UCare's Board of Directors consists of 15 Directors. Under UCare's bylaws, the Chair of the Board had the authority to appoint five physician Directors from the University Of Minnesota Medical School. Department of Family Medicine and the Dean of the Medical School appoints one Director. In addition, two Directors (including the Chair) are Directors by virtue of their positions in the Department. Individuals enrolled in UCare's health plans have the right under the bylaws, and consistent with Minn. Stat. 62D.06, to elect six of the Board of Directors among the enrolled members. Form 990, Part VI, Section B, line 11b The Form 990 is prepared by the Controller and reviewed by an independent accounting firm. UCare provides a copy and reviews the detail of the completed 990 Form with the Board's Finance and Audit Committee. UCare also provides a copy of the completed 990 Form to all members of the Board of Directors via on-line portal prior to the Finance and Audit Committee's report to the Board. Upon approval by the Board of Directors, the 990 Form is filed with the Internal Revenue Service. Form 990, Part VI, Section B, line 12c UCare requires completion of an annual questionnaire by its Board members, Officers, and Senior Executives, which is designed to surface potential conflicts of interest. In addition, UCare's policy requires disclosure to the Board Chair and/or CEO of a potential conflict involving a Director, Officer, or Management staff when a particular transaction arises. If the Board or designated Board Committee determines that a potential conflict exists related to a transaction requiring action by the Board, the policy calls for the Board member with the potential conflict to abstain from voting and for a majority of the disinterested Directors to find that the transaction is fair and reasonable to the operation, and that the organization could not reasonably find a more advantageous transaction from another entity without a potential conflict. In practice, UCare seeks to manage certain business matters so that they are not subject to action by the Board or Senior Executives where a potential conflict exists. For example, the Board includes members who are enrolled in UCare's health plans, and the benefit designs and premium amounts of such plans are not brought before the Board for action. The policy also requires disclosure of potential conflicts to the Board to designated committee even for transactions not requiring board action. Form 990, Part VI, Section B, line 15 On an annual basis, UCare's Compensation Committee reviews and approves the President and CEO's total cash compensation, including base pay and incentive pay. Benefits are reviewed, as described below, every two to three years, with the most recent review in 2014. The Compensation Committee is composed of independent members of the Board of Directors. UCare engages an independent consultant organization that specializes in advising health care organizations about Executive compensation issues. The independent consultant organization conducts a comparability analysis that incorporates multiple industry surveys and compensation for comparable positions at peer organizations. The independent consultant organization then shares the results of this comparability analysis with the Compensation Committee. After deliberation about the comparability analysis and recommendations, the Committee evaluates the annual cash compensation package for the President & CEO. The Committee brings recommendations about CEO base compensation and incentive opportunity to the Board for approval, and reports other actions taken by the Committee to the Board. Minutes are recorded contemporaneously to accurately document the Committee's discussions and actions, and the independent consultant organization's report is retained for recordkeeping purposes. The Compensation Committee also participates in the compensation process for other Senior Executives, including the Treasurer & Senior Vice President/Chief Financial Officer; the Secretary & Senior Vice President of Provider Relations/Chief Legal Officer ; the Senior Vice President/Chief Medical Officer; the Senior Vice President/Chief Administrative Officer, and the Senior Vice President of Public Affairs/Chief Marketing Officer. The process for determining compensation for these positions follows a compensation philosophy approved by the Board of Directors. Every two to three years, an independent consultant organization conducts a comparability analysis for these positions, focusing on total compensation data including base pay, incentive pay, and benefits for comparable positions at peer organizations. The President and CEO's position is also included in this comparability analysis. The most recent analysis occurred in 2014. The Compensation Committee receives and discusses the analysis and recommendations with the independent consultant organization, and provides input for the President & CEO in determining cash compensation for the Officers and Senior Executives. The Compensation Committee has delegated specific cash compensation approval for these leaders to the President & CEO, who is an independent person with respect to these compensation determinations, provided that the President & CEO follows the board-approved compensation philosophy, takes into account the comparability analysis, and obtains annual review by the committee. The Committee's discussion and input are reflected in contemporaneous documentation, and a copy of the independent consultant organization's report is retained. Form 990, Part VI, Section C, line 18 UCare Minnesota's 990 Form is available on www.guidestar.org in addition to being made available upon request. Form 990, Part VI, Section C, line 19 UCare files its governing documents and Conflict of Interest Policy with the Minnesota Department of Health, and this public information would be available from this agency upon request. UCare's financial statements are available upon request. Form 990, Part IX, line 11g Medical Expenses: Program service expenses 1,566,972,996. Management and general expenses 0. Fundraising expenses 0. Total expenses 1,566,972,996. Temporary Employment Services: Program service expenses 2,224,366. Management and general expenses 629,524. Fundraising expenses 0. Total expenses 2,853,890. Other Purchased Services: Program service expenses 10,868,326. Management and general expenses 3,297,086. Fundraising expenses 0. Total expenses 14,165,412. Broker Commissions: Program service expenses 2,697,968. Management and general expenses 0. Fundraising expenses 0. Total expenses 2,697,968. Disease Management: Program service expenses 422,693. Management and general expenses 0. Fundraising expenses 0. Total expenses 422,693. Health Promotions: Program service expenses 702,712. Management and general expenses 0. Fundraising expenses 0. Total expenses 702,712. Outsourced Services: Program service expenses 11,656,530. Management and general expenses 574,901. Fundraising expenses 0. Total expenses 12,231,431. UCare Health Inc 500 Stinson Blvd NE Minneapolis MN 554132615 208295948 Non-Profit Service Insurance Organization WI 501(c)(4) UCare Minnesota 1 U of Mn Med SchoolDept of Family Practice 516 Delaware St Minneapolis MN 55455 416007513 Medical Education MN 115 University of Minnesota 0 UCare Foundation 500 Stinson Blvd NE Minneapolis MN 554132615 464795214 Community-directed initiative MN 501(c)(3) Line 12a, I UCare Minnesota 1 0 0 0 0 0 0 0 0 0 0 0 1 0 1 1 0 1 1 0 UCare Health Inc - Reimbursement of Management Services L 437428 Actual Cost UCare Health Inc - Direct Expense Reimbursement Q 1164152 Actual Cost UCare Health-Transfer of Choices revenue Rx rebates & subrogation payments R 2450831 Actual Cost