2015-11-09T18:05:03-06:00 2014-12-31 BDO USA LLP 3200 BRISTOL ST 4TH FLOOR COSTA MESA CA 92626 990 2014-01-01 953826037 SCAN GROUP % VIRGINIA HAVAI SCAN 5629895100 3800 KILROY AIRPORT WAY STE 100 LONG BEACH CA 90806 NANCY MONK CRO 5629895100 2015-11-06 true WALTER H HICK JR P01070437 7149573200 2014 2016-02-25 16:41:14Z CHRISTOPHER WING 3800 KILROY AIRPORT WY STE 400 LONG BEACH CA 90806 43200316 false X N/A X 1983 CA TO SUPPORT THE CHARITABLE MISSION OF SCAN HEALTH PLAN AND ITS AFFILIATES. 10 9 272 0 0 0 0 0 0 539959 1428574 11156 -3196 551115 1425378 0 0 0 0 28399432 28955480 0 0 0 -28399432 -28955480 0 551115 1425378 99562918 102019915 11174457 11340907 88388461 90679008 X TO SUPPORT THE CHARITABLE MISSION OF SCAN HEALTH PLAN AND ITS AFFILIATES. false false 0 SCAN Group is a California nonprofit public benefit corporation which is a supporting organization to a related section 501(c)(3) tax exempt organization, SCAN Health Plan, and also with respect to the section 501(c)(3) activities of two related Arizona nonprofit corporations exempt under section 501(c)(4), SCAN Health Plan Arizona and SCAN Long Term Care. SCAN Group Supports SCAN Health Plan, SCAN Health Plan Arizona, SCAN Long Term Care and SCAN California Management Company in activities that support the goal of SCAN Health Plan to keep seniors healthy, independent and at home. These activities include research studies related to the needs of frail seniors. SCAN Group also provides support services to the SCAN Foundation. 0 true false false false false false false false false false false true false false true true false true false false false false false false false false false false false true false false false false false false false false false false false false false true true true true false true 1 0 272 true false false false false false false false false false false false X 10 9 false false false false false false false true true false false true true true true true true false true false CA X VIRGINIA HAVAI 5629898300 3800 KILROY AIRPORT WAY SUITE 100 LONG BEACH CA 90806 Ryan Trimble Director 6.4 3.9 X 0 136200 0 Colleen Cain Director 5.0 4.1 X 0 123000 0 Leobarda Estrada Director 5.4 0.6 X 0 78000 0 Thomas Higgins Director 3.9 2.8 X 0 105000 0 Andrew Allocco Director 4.7 0.5 X 0 82000 0 Kim Hunter Director 3.5 0.4 X 0 70000 0 Patrick Seaver Director 5.2 3.7 X 0 114200 0 Michael Noel Director 4.4 3.6 X 0 106200 0 Francesca Ruiz De Luzuriaga Director 5.9 0.7 X 0 82000 0 Christopher Wing CEO 18.0 22.0 X X 0 980319 547891 William Roth COO 17.0 23.0 X 0 646670 372915 Walter Stone Outgoing CFO 19.0 21.0 X 0 1244603 40673 Nancy Monk Chief Risk Officer 19.0 21.0 X 407835 0 199752 Catherine Batteer SVP & GM All SCAN Markets 10.0 30.0 X 0 463703 185539 Vinod Mohan CFO 19.0 21.0 X 0 339703 63378 Janet Kornblatt General Counsel 19.0 21.0 X 259699 0 111469 Douglas Jaques Outgoing General Counsel 19.0 21.0 X 779252 0 13996 Gilbert Miller Outgoing SVP National Sales 18.0 22.0 X 359370 0 18192 Sherry Stanislaw SVP & GM So Cal Market 20.0 20.0 X 0 418422 151314 Peter Begans SVP Public & Government Affair 20.0 20.0 X 442935 0 185385 Eve Gelb SVP Healthcare Services 20.0 20.0 X 0 319673 141570 Merlin Swackhamer Outgoing CIO 18.0 22.0 X 476794 0 13000 Josh Goode Chief Information Officer 20.0 20.0 X 308640 0 87416 David Milligan SVP National Sales 18.0 22.0 X 0 305667 124813 Kwan- Moon Leung VP Healthcare Informatics 18.0 22.0 X 401496 0 142245 Christian Zorn VP Internal Audit 17.0 23.0 X 271265 0 93189 Emily Arison VP Human Resources 20.0 20.0 X 278330 0 79247 Jill Selby VP Strategic Initiatives 20.0 20.0 X 291828 0 88621 Michael Montevideo VP Strategic Development 18.0 22.0 X 381901 0 14950 Timothy Schwab Outgoing Chief Med & Vision 20.0 20.0 X 0 338652 0 4659345 5954012 2675555 78 true true false 0 0 0 1334614 1334614 0 0 0 0 0 41868898 41774938 93960 93960 93960 0 0 0 OTHER INCOME 900099 -3196 -3196 -3196 1425378 1425378 X 0 0 0 0 4262252 4262252 0 18055881 18055881 1713215 1713215 3288661 3288661 1635471 1635471 498175 498175 1070572 1070572 0 0 0 0 10279067 10279067 0 3177872 3177872 4853525 4853525 0 8684833 8684833 241179 241179 0 36944 36944 0 0 0 483724 483724 FIXED ASSET USAGE FEE 1303130 1303130 LICENSE AND DUES 644924 644924 OTHER MEDICAL REVIEW -4664 -4664 ALLOCATION TO AFFILIATE -60559146 -60559146 334385 334385 0 0 0 0 0 -18368 16166403 15488301 0 0 1222905 1304461 0 0 0 0 0 0 0 0 2238146 2832977 0 28562623 30132299 48774750 49855229 0 0 0 0 2598091 2425016 99562918 102019915 8173866 6850671 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3000591 4490236 11174457 11340907 X 88388461 90679008 0 0 0 0 88388461 90679008 99562918 102019915 X 1425378 865169 X false true X true false X X 1 SCAN HEALTH PLAN 953858259 09 true 0 0 1 0 true false false false false false false false false false false false false false false true ASSET BACKED 6893880 F CORPORATE BONDS 26267648 F MORTGAGE BACKED SECURITIES 3185717 F US GOV. & AGENCY OBLIGATIONS 13507984 F 49855229 0 DEFERRED COMPENSATION LIABILITY 1636118 DEFERRED RENT 2854118 4490236 X PART X, FIN 48 FOOTNOTE TO FINANCIAL STATEMENTS Under FASB ASC 740, Income taxes, the Company is required to recognize a liability for each uncertain tax position at the amount estimated to be required to settle the issues. As of December 31, 2014 and 2013, there were no liabilities recorded for uncertain tax positions. X X true true X X X X X X true true false false false false false false false Christopher Wing CEO 0 626966 0 331820 0 21533 0 522786 0 25105 0 1528210 0 331820 William Roth COO 0 428181 0 194463 0 24026 0 306018 0 66897 0 1019585 0 194463 Walter Stone Outgoing CFO 0 294585 0 287324 0 662694 0 18100 0 22573 0 1285276 0 287324 Nancy Monk Chief Risk Officer 284809 0 103535 0 19491 0 180187 0 19565 0 607587 0 103535 0 Catherine Batteer SVP & GM All SCAN Markets 0 333779 0 108712 0 21212 0 185539 0 0 0 649242 0 108712 Douglas Jaques Outgoing General Counsel 11220 0 140659 0 627373 0 10237 0 3759 0 793248 0 140659 0 Gilbert Miller Outgoing SVP National Sales 223689 0 81223 0 54458 0 18054 0 138 0 377562 0 81223 0 Sherry Stanislaw SVP & GM So Cal Market 0 292699 0 104919 0 20804 0 139736 0 11578 0 569736 0 104919 Peter Begans SVP Public & Government Affair 311498 0 108737 0 22700 0 150787 0 34598 0 628320 0 108737 0 Eve Gelb SVP Healthcare Services 0 231224 0 69641 0 18808 0 112935 0 28635 0 461243 0 69641 Timothy Schwab Outgoing Chief Med & Vision 0 0 0 0 0 338652 0 0 0 0 0 338652 0 0 Merlin Swackhamer Outgoing CIO 0 0 138107 0 338687 0 13000 0 0 0 489794 0 138107 0 Kwan- Moon Leung VP Healthcare Informatics 293533 0 88961 0 19002 0 139268 0 2977 0 543741 0 88961 0 Christian Zorn VP Internal Audit 202498 0 53295 0 15472 0 68529 0 24660 0 364454 0 53295 0 Emily Arison VP Human Resources 225984 0 33934 0 18412 0 71229 0 8018 0 357577 0 33934 0 Jill Selby VP Strategic Initiatives 239243 0 36951 0 15634 0 73917 0 14704 0 380449 0 36951 0 Vinod Mohan CFO 0 121598 0 200000 0 18105 0 59385 0 3993 0 403081 0 0 Janet Kornblatt General Counsel 236784 0 10000 0 12915 0 110167 0 1302 0 371168 0 0 0 Josh Goode Chief Information Officer 290179 0 2500 0 15961 0 64896 0 22520 0 396056 0 0 0 David Milligan SVP National Sales 0 247848 0 37487 0 20332 0 104564 0 20249 0 430480 0 37487 Michael Montevideo VP Strategic Development 181850 0 56240 0 143811 0 14950 0 0 0 396851 0 56240 0 FORM 990 SCHEDULE J - PART I, LINE 1A At the Company's request, spouses/guests of certain SCAN Group, SCAN Health Plan and SCAN Health Plan Arizona executives attended a Company business event in 2014. The business purpose of the event was informing our distribution partners regarding the Company's upcoming Annual Enrollment Period (AEP) and soliciting input on how to best position SCAN for increased enrollment. Because the Company requested that spouses and guests attend this meeting for the purpose of creating deeper and more productive relationships between SCAN and important third party business partners, the Company reimbursed these travel expenses. Additionally, the Company reimbursed travel expenses for spouses/guests of members of the Board of Directors of SCAN Group and SCAN Health Plan who attended an offsite Board meeting in 2014. SCAN Health Plan approved and paid for first class travel for CEO Chris Wing on 6 occasions where the flight was 4 hours or longer; as Mr. Wing is 6'5" tall and a regular airplane seat is extremely uncomfortable for flights of 4 hours duration or longer. The Company reimbursed apartment rental fees of its newly hired CFO who was relocating to facilitate an immediate start date. Form 990 SCHEDULE J - PART I, LINE 4A During 2014 the employment relationship of the following employees of SCAN Group and SCAN Health Plan ended. In connection with the termination of their respective employment, SCAN Group negotiated and paid severance to the employees. The severance payment was in accordance with the terms of highly compensated employees' then existing employment agreement. Douglas Jaques, Outgoing General Counsel - Key Employee - SCAN Group, $313,404 Merlin Swackhamer, Outgoing Chief Information Officer - SCAN Group, $308,353 Michael Montevideo, VP Strategic Development - SCAN Group, $106,090 WALTER STONE, OUTGOING CFO - SCAN HEALTH PLAN, $446,349 Form 990 SCHEDULE J - PART I, LINE 4B The Company provides a supplemental non-qualified retirement plan to only officers and senior vice presidents in the section 457(f) plan. The following individuals participated in the company's section 457(F) during the year 2014: Christopher Wing, Walter R. Stone, Peter Begans, Douglas Jaques, Sherry Stanislaw, Catherine Batteer, Nancy J. Monk, William H. Roth, Gilbert J. Miller, Moon Kwan-Leung, Eve Gelb, Janet Kornblatt, Vinod Mohan and David Milligan. Pursuant to the terms and conditions of the Section 457(F) Plan, a participant becomes 100% vested in the employer contribution upon the occurrence of any of the following while the participant is an employee. 1) The participant has ten years of continuous employment, counting only service after December 31, 2005. 2) The participant reaches the age of 62 and has five years of continuous employment; 3) The participant's involuntary termination; 4) The participant's disability; or 5) The participant's death. Deferred compensation for 2014, reported on Schedule J, Part II, Column C consists of the following: 1. 457(f) Employer Contributions subject to vesting terms and conditions as noted in items (1) through (5) above. Based on these vesting terms and conditions, there is substantial risk of forfeiture. 2. The company provides an incentive plan to Vice Presidents, and Senior executives. There are two components of the Company Incentive Plan (ICP): a. Annual ICP Award - represents 2/3 of the total award. b. Deferred ICP Award - represents 1/3 of the total award. Based on the vesting terms and conditions for this component, there is substantial risk of forfeiture. 3. 403(b) Qualified Retirement Plan contributions (Employer match and Safe Harbor). Douglas Jaques, former General Counsel, participated in the 457(f) plan until his employment ended on 1/1/2014; he received 457(f) distributions of $253,550 in 2014. Walter Stone, former Chief Financial Officer, upon his departure, received 457(f) distributions of $144,680. The following individual participated in SCAN Health Plan's Keysop Plan during the taxable year: Timothy Schwab. The plan has been frozen since May 2002 and no employees have been added as participants. In 2014, Timothy Schwab received a distribution of $321,152 from the Keysop Plan. Form 990 Part VI Line 11b The Form 990 is prepared by BDO USA, LLP, working in conjunction with SCAN's Finance Department. SCAN Health Plan's Director of Accounting has direct responsibility for this effort, subject to supervision by the SCAN Health Plan Controller. After an initial draft of the Form 990 is prepared, it is circulated for review and comment by relevant members of the executive team who have responsibility and/or knowledge about the various matters disclosed and/or described in the Form. The General Counsel, in particular, reviews the Form 990 and ensures accuracy of descriptions and that disclosure is complete. The draft Form 990 is reviewed by the compensation committee, the Audit and Compliance Committee of the Board of Directors of SCAN Group, and is shared with all members of the Board of Directors after it is ready for filing but before it is filed. Form 990 Part VI Line 12c SCAN Group regularly and consistently monitors and enforces compliance with its conflict of interest policy through annual circulation of a conflict of interest questionnaire which is required to be answered by all members of the Board of Directors, officers and members of executive management. In addition, there is regular education and enforcement through oversight of such policy and the SCAN Health Plan Gift and Business Courtesies Policy with respect to each department by members of the senior executive team with responsibility for such department. The Legal Department of SCAN Group reviews all contractual relationships entered into by the organization and the General Counsel of SCAN Group is responsible for monitoring conflicts of interest through the annual circulation and review of the conflict of interest questionnaire. Accordingly, the Legal Department of SCAN Group through the General Counsel is in a position to monitor and enforce compliance with the policy on an ongoing basis. Form 990 Part VI Line 15a The process for determining the compensation of the Chief Executive Officer of SCAN Group is conducted by the Compensation Committee of the Board of Directors of SCAN Group, all of the voting members of which are independent persons. In determining the Chief Executive Officer's compensation, the Compensation Committee works with and relies upon the counsel and expertise of Ernst & Young, a consultant with well-established experience and expertise in the area of nonprofit organization executive compensation and compliance with the intermediate sanctions requirements applicable to such compensation. Ernst & Young provides an "Executive Compensation Report" to the Compensation Committee each year which furnishes the basis for the establishment of the Chief Executive Officer's compensation package during the following year. The Ernst & Young Executive Compensation Report is based on a review of the executive compensation practices of a variety of organizations that are considered comparable to SCAN Group based on various metrics. The Compensation Committee deliberates on the issue of the Chief Executive Officer's compensation package in light of the Ernst & Young Executive Compensation Report and questions are asked of, and answered by Ernst & Young, regarding such report and other matters relevant to such package. Based on such deliberations, the Compensation Committee makes a recommendation to the Board of Directors of SCAN Group regarding the compensation package for the following year. The full Board of Directors of SCAN Group deliberates on and then votes on such recommendation; the Chief Executive Officer is recused for the entirety of such deliberations and vote. The minutes of the Compensation Committee and the Board of Directors for these meetings are prepared substantially contemporaneously and substantiate such deliberations and decisions. Form 990 Part VI Line 15b The process for determining the compensation of officers or other key employees of SCAN Group is conducted by the Human Resources Department and Chief Executive Officer of SCAN Group, with the approval of the Compensation Committee of the Board of Directors of SCAN Group; all of the voting members of such committee are independent persons. In determining such employee's compensation, the Human Resources Department and Compensation Committee works with and relies upon the counsel and expertise of Ernst & Young, a consultant with well-established experience and expertise in the area of nonprofit organization executive compensation and compliance with the intermediate sanctions requirements applicable to such compensation. Ernst & Young provides an "Executive Compensation Report" to the Human Resources Department and Compensation Committee each year which furnishes the basis for the establishment of such employees' compensation package during the following year. The Ernst & Young Executive Compensation Report is based on a review of the executive compensation practices of a variety of organizations that are considered comparable to SCAN Group based on various metrics. The Chief Executive Officer makes a recommendation to the Compensation Committee with respect to each of such employees' compensation package in light of the Ernst & Young Executive Compensation Report. At the Compensation Committee meeting addressing such matters, questions are asked of, and answered by Ernst & Young, regarding such report and other matters relevant to such package. Based on such deliberations, the Compensation Committee makes a decision regarding the compensation package for such employees for the following year. The minutes of the Compensation Committee for this meeting are prepared substantially contemporaneously and substantiate such deliberations and decisions. Form 990 Part VI Line 19 SCAN Group's governing documents and conflict of interest policy are not made available to the public. SCAN Group makes its Form 990, which contains financial information, available for public inspection. Form 990 Part IX Line 11g Consulting Expense: $6,822,106 Outside Service Expense: $3,456,961 Total Other Fees: $10,279,067 FORM 990 PART IX LINE 24 - OTHER EXPENSES DESCRIPTION:OTHER EXPENSES TOTAL EXPENSES:334385 MANAGEMENT AND GENERAL:334385 SCAN HEALTH PLAN 3800 KILROY AIRPORT WAY SUITE 100 LONG BEACH CA 90806 953858259 MEDICARE ADV CA 501(C)(3) LINE 9 SCAN GROUP true THE SCAN FOUNDATION 3800 KILROY AIRPORT WAY SUITE 100 LONG BEACH CA 90806 450552845 GRANT MAKING CA 501(C)(3) L.11,TYPE 2 SCAN GROUP true SCAN HEALTH PLAN ARIZONA 3800 KILROY AIRPORT WAY SUITE 100 LONG BEACH CA 90806 731729007 MEDICARE ADV AZ 501(C)(4) N/A SCAN GROUP true SCAN LONG TERM CARE 3800 KILROY AIRPORT WAY SUITE 100 LONG BEACH CA 90806 204607594 MEDICAID MGMT AZ 501(C)(4) N/A SCAN HP AZ false SCAN 360 CARE 3800 KILROY AIRPORT WAY SUITE 100 LONG BEACH CA 90806 352443412 MEDICARE SVCS CA 501(C)(3) LINE 9 SCAN GROUP true SCAN Health Check Assessment Centers 3800 KILROY AIRPORT WAY SUITE 100 LONG BEACH CA 90806 462962358 HEALTHCARE CA N/A C CORP 285725 94829 1.00000 true SCAN California Management Company 3800 KILROY AIRPORT WAY SUITE 100 LONG BEACH CA 90806 462951831 MANAGEMENT CA SCAN GROUP C CORP 115490 480843 1.00000 true SCAN MANAGEMENT SERVICES COMPANY 3800 KILROY AIRPORT WAY SUITE 100 LONG BEACH CA 90806 900860955 MANAGEMENT CA SCAN GROUP C CORP 0 0 1.00000 true SCAN WELLNESS CENTER PC 3800 KILROY AIRPORT WAY SUITE 100 LONG BEACH CA 90806 900860971 HEALTHCARE CA SCAN GROUP C CORP 0 0 1.00000 true false false false false false false false false false false false false false false false false true false false SCAN HEALTH PLAN ARIZONA Q 1782093 See Part VII Schedule R, Part V The percentage of allocation to affiliated companies is determined based on estimated percentage of time worked, percentage of headcounts, and the percentage of SCAN membership, and the percentage of bid submissions, as appropriate based on the nature of the expense.