2015-08-13T09:03:45-05:00 2014-12-31 990 2014-01-01 208295948 UCare Health Inc UCAR 6126766500 500 Stinson Blvd NE Minneapolis MN 55413 BETH MONSRUD SVP & CFO/Treasurer 6126766500 2015-08-13 2014 2016-02-25 16:41:14Z James W Eppel Jr 500 Stinson Blvd NE Minneapolis MN 55413 73921471 0 X www.ucare.org X 2006 WI To provide comprehensive health services and care management services to our members. 15 7 0 0 0 0 0 0 59047228 73917089 2909 -5983 0 0 59050137 73911106 0 0 0 0 486878 345168 0 0 0 63907583 84312449 64394461 84657617 -5344324 -10746511 19943947 23841271 23732602 38376437 -3788655 -14535166 X UCare Health, Inc. will improve the health of our members through innovative services and partnerships across communities. 0 0 83857126 0 73917089 UCare Health, Inc. (formerly UCare Wisconsin) is a non-profit service insurance corporation providing access to comprehensive health services and to care management programs designed to improve the health of our enrolled members.UCare Health, Inc. is committed to serving individuals in public health care programs; its sole program activity is to provide Medicare Advantage coordinated care plan services to seniors linving in 26 counties in western Wisconsin. As of December 2014, it was serving over 9,694 Medicare beneficiaries. UCare Health, Inc. is a wholly owned subsidiary of UCare Minnesota, a tax-exempt organization serving Medicaid and Medicare recipients in Minnesota, Medicare recipients in Wisconsin and enrollees in UCare's individual and family plans available through Minnesota's Mnsure marketplace. This activity is intended to further the organization's mission to improve the health of our members through innovative services and partnerships across communities.In 2014, UCare's quality monitoring and program initiatives demonstrated many significant gains. The highlights are outlined below:o Results for UCare's health improvement outcomes for members were demonstrated in 2013 by the following measures: o UCare Health's plans scored 4.5 out of 5 stars in the CMS Medicare Performance Assessment report for its Medicare plans for overall health plan quality. o In the CMS Medicare Consumer Assessment of Healthcare Providers and Systems (CAHPS) survey, UCare performed significantly higher than the national average on the following measures: Rating of All Health Care, Rating of Specialist, Rating of Health Plan, Getting Needed Care, Getting Care Quickly, Customer Service, Coordination of Care, Getting Needed Prescriptions. o UCare also performed significantly higher than the national average on the Health Outcome Survey (HOS) for Improving or Maintaining Physical Health. o Improvements for our members were identified in the following Healthcare Effectiveness Data and Information Set ("HEDIS") measurements for Medicare: Comprehensive Diabetes Care, A1C Control, Eye Exam, LDL Testing, LDL Control and Control for Nephropathy, Cholesterol Management, and Colorectal Cancer Screening.In addition to quality improvement, UCare supports member health programs, community activities and collaborations, and health education programs integral to the products offered to members. One example is our fitness benefit, with a choice of the Healthways SilverSneakers Fitness program or UCare's Health Club Savings network of fitness centers. Members also have access to flu shot clinics, smoking cessation programs, and mammogram reward programs. Community activities and events are also integral to improving health of our community. Examples include participating in the Institute for Clinical Systems Improvement, Coalition of Wisconsin Aging Group Convention, as well as the Vital Aging Conference, Senior American Days, Health and Wellness EXPO, Alzheimer's Memory Walk, and St. Johns Health Fair. 83857126 0 0 0 0 0 0 0 0 0 0 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 0 0 1 816 0 0 0 0 0 0 0 0 X 15 7 0 1 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 0 0 0 X Greg Marshall 6126766500 500 Stinson Blvd NE Minneapolis MN 55413 Macaran Baird MD Board Chair 0.20 40.20 X X 0 322843 58456 James Van Vorren MD Vice Chair 0.20 40.20 X X 0 187850 47195 Patricia Adam MD Director 0.20 40.20 X 0 178017 44093 Kimberly Carter Director 0.10 0.20 X 0 8915 0 Catherine Godlewski Director 0.20 40.20 X 0 185477 41590 John Gross Director 0.10 0.20 X 0 12126 0 P Jay Kiedrowski Director 0.10 0.20 X 0 11130 0 Teresa McCarthy MD Director 0.20 40.20 X 0 187727 47242 Bert McKasy Director 0.10 0.20 X 0 9152 0 James Miller Director 0.10 0.20 X 0 9611 0 Peter Mitsch Director 0.20 40.20 X 0 219196 49798 William Roberts MD Director 0.20 40.20 X 0 202360 52747 Sharon Shonka Director 0.10 0.20 X 0 10202 0 Lance Teachworth Director 0.10 0.20 X 0 2828 0 Michael Wootten MD Director 0.20 40.20 X 0 228041 47224 William Brombach Director 0.10 0.20 X 0 6428 0 Nancy Feldman President & Chief Executive Officer 40.00 0.20 X 0 1008645 129241 Mark Traynor Secretary/SVP & General Counsel 40.00 0.20 X 0 365251 59960 Beth Monsrud Treasurer/SVP & CFO 40.00 0.20 X 0 408617 73682 Edith Dorsey SVP Operations 40.00 0.20 X 0 231007 59093 Russel Kuzel SVP & Chief Medical Officer 40.00 0.20 X 0 471332 63931 Thomas Mahowald SVP Strategy & Product Development 40.00 0.20 X 0 316666 66815 Hilary Marden-Resnik SVP & Chief Administrative Officer 40.00 0.20 X 0 357647 66026 Ghitann Worcester SVP Public Affairs & Development 40.00 0.20 X 0 375235 57231 Michael Lynch Medical Director 40.00 0.10 X 0 304674 29954 Jamie Carsello Chief Informatics Officer 40.00 0.10 X 0 235303 22077 Alan Heaton Pharmacy Director 40.00 0.10 X 0 196636 22043 Patricia Ball Director of Provider Network 40.00 0.10 X 0 205377 8598 Jeri Peters Chief Nursing Officer 40.00 0.10 X 0 203628 8469 0 6461921 1055465 0 0 1 0 UCare Minnesota 500 Stinson Blvd NE Minneapolis MN 55413 Management Services 995050 1 Medicare/Medicaid Payments 524114 65578012 65578012 Medicare Member Premiums 524114 8339077 8339077 73917089 2282 2282 2100 10365 -8265 -8265 -8265 73911106 73917089 0 -5983 X 280991 280991 11680 11680 29042 29042 23455 23455 995050 658438 336612 568 568 45937 24642 21295 81910067 81648388 261679 872496 872496 148170 114102 34068 32323 32323 38189 24955 13234 51482 51482 40332 40332 93360 93360 5831 3858 1973 Liceenses, Fees & Prof 45707 31014 14693 Taxes & Assessments 23009 23009 Bad Debt Expense 7978 7978 Other Misc 1950 1950 84657617 83857126 800491 0 -218648 733341 19777181 20972463 369217 2135467 0 16197 19943947 23841271 9469200 18500675 240174 483775 14023228 19391987 23732602 38376437 X -3788655 -14535166 -3788655 -14535166 19943947 23841271 -10746511 0 X 0 1 X 1 0 0 Surplus Note Payable to UCare Minnesota 18000000 Intercompany Payable to UCare Minnesota 1391987 19391987 X Part X, Line 2: UCare as 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 evaulating 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 examinatin by federal, state and local authorities. The tax returns for the years 2011 to 2013 are open to review and examination. Part X Other Liabilities Total capital and surplus includes three surplus notes payable to UCare Minnesota of $3,000,000 issued on February 21, 2007, $10,000,000 issued on April 1, 2012 and on September 26, 2014, $5,000,000 in exchange for cash. The surplus notes accrue interest annually on December 31 of each year at the 1 Year LIBOR Rate of interest as published in The Wall Street Journal on the first day of business of each January thereafter. Interest rates were 0.63% and 0.84% at December 31, 2014 and 2013, respectively. Payment of principle and interest are subject to certain restrictions regarding the overall level of surplus of UCare Health, Inc. and subject to the prior written approval of the Commissioner of Insurance. Payment of interest and principle are subordinate to the claims of all policyholders and of all contract creditors and all other obligations of UCare Health, Inc. 0 0 0 0 0 0 0 0 0 Macaran Baird MD Board Chair 0 322500 0 0 0 343 0 33800 0 24656 0 381299 0 0 James Van Vorren MD Vice Chair 0 187507 0 0 0 343 0 25415 0 21780 0 235045 0 0 Patricia Adam MD Director 0 177674 0 0 0 343 0 24375 0 19718 0 222110 0 0 Catherine Godlewski Director 0 185134 0 0 0 343 0 24463 0 17127 0 227067 0 0 Teresa McCarthy MD Director 0 187384 0 0 0 343 0 22750 0 24492 0 234969 0 0 Peter Mitsch Director 0 218853 0 0 0 343 0 28373 0 21425 0 268994 0 0 William Roberts MD Director 0 202017 0 0 0 343 0 27755 0 24992 0 255107 0 0 Michael Wootten MD Director 0 227698 0 0 0 343 0 27755 0 19469 0 275265 0 0 Nancy Feldman President & Chief Executive Officer 0 669712 0 233417 0 105516 0 116320 0 12921 0 1137886 0 105516 Mark Traynor Secretary/SVP & General Counsel 0 269232 0 61118 0 34901 0 45779 0 14181 0 425211 0 34901 Beth Monsrud Treasurer/SVP & CFO 0 331122 0 77495 0 0 0 51837 0 21845 0 482299 0 0 Edith Dorsey SVP Operations 0 231007 0 0 0 0 0 37536 0 21557 0 290100 0 0 Russel Kuzel SVP & Chief Medical Officer 0 344720 0 78596 0 48016 0 54184 0 9747 0 535263 0 48016 Thomas Mahowald SVP Strategy & Product Development 0 258365 0 58301 0 0 0 44307 0 22508 0 383481 0 0 Hilary Marden-Resnik SVP & Chief Administrative Officer 0 265235 0 62507 0 29905 0 43401 0 22625 0 423673 0 29905 Ghitann Worcester SVP Public Affairs & Development 0 277041 0 66793 0 31401 0 46383 0 10848 0 432466 0 31401 Michael Lynch Medical Director 0 255155 0 49519 0 0 0 9449 0 20505 0 334628 0 0 Jamie Carsello Chief Informatics Officer 0 198838 0 36465 0 0 0 8976 0 13101 0 257380 0 0 Alan Heaton Pharmacy Director 0 165364 0 31272 0 0 0 7783 0 14260 0 218679 0 0 Patricia Ball Director of Provider Network 0 174843 0 30534 0 0 0 8443 0 155 0 213975 0 0 Jeri Peters Chief Nursing Officer 0 171603 0 32025 0 0 0 8315 0 154 0 212097 0 0 Supplemental Information The compensation for the President and CEO is determined by UCare Minnesota, the sole member. The following methods are used by UCare Minnesota when determining the President and CEO's compensation: (1) compensation committee; (2) independent compensation consultant; (3) Form 990 of other organizations; (4) written employment contract; (5) compensation survey or study; and (6) approval by the Board or Compensation Committee. Form 990, Part VI, Section A, line 3 UCare Health, Inc. has an administrative service agreement with UCare Minnesota to provide overall management and administration of UCare Health, Inc.'s business. UCare Health, Inc.'s business, includes but is not limited to, administrative management, financial management, provider contracting services, marketing services and public affairs services, and other tasks as may be necessary to carry out any policies related to UCare Health, Inc.'s business. UCare Health, Inc. reimburses UCare Minnesota for all costs and expenses directly and indirectly incurred and associated with the business and operation of UCare Health, Inc. Form 990, Part VI, Section A, line 6 The corporation's sole member is UCare Minnesota, a Minnesota non-profit corporation organized to operate as a health maintenance organization under Minnesota Statutes, Chapter 62D and exempt from taxation under section 501(c)(3) of the Internal Revenue Service Code. UCare Minnesota as the corporate member, has all powers and voting rights afforded by law to voting members of services insurance corporations under Wisconsin Statutes, Chapter 613 and applicable sections of Wisconsin Statutes. Form 990, Part VI, Section A, line 7a The Board of Directors shall consist of 15 Directors. The Directors shall be elected automatically by virtue of their election to the UCare Minnesota Board of Directors, unless a different Director is elected by UCare Minnesota as a corporate member acting through its Board of Directors. Such different Directors need not be resident of Wisconsin, and may or may not be enrollees receiving coverage or services from the Corporation although at least 40% of the Directors shall be enrollees of the Corporation or UCare Minnesota. Form 990, Part VI, Section A, line 7b In addition to the powers set forth in Wisconsin law for members, UCare Minnesota has reserved to itself the following powers concerning the governance of the Corporation, which shall be expressed through the UCare Minnesota Board of Directors: (a) The approval of any plans of merger or consolidation by the Corporation with any foreign or domestic Corporation, voluntary dissolution of the Corporation, or any sales, lease, or transfer of all or substantially all of the Corporation's assets; (b) the approval of the grant of a security interest in all or substantially all of the Corporation's assets or the guarantee of any indebtedness before such security interest or guarantee becomes legally binding; and (c) the amendment of the articles of incorporation or bylaws. Form 990, Part VI, Section B, line 11 The 990 Form is prepared by the controller and reviewed by an independent accounting firm. UCare provides a copy and reviews the details 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 email, and the Board's 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 identify 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 the designated committee even for transactions not requiring Board action. Form 990, Part VI, Section C, line 18 UCare Health, Inc.'s Form 990 is available upon request. Form 990, Part VI, Section C, line 19 UCare will provide governing documents,Conflict of Interest Policy and/or Financial Statements upon request. Form 990, Part IX, line 11g Medical Costs: Program service expenses 78,872,679. Management and general expenses 0. Fundraising expenses 0. Total expenses 78,872,679. Purchased Services: Program service expenses 635,092. Management and general expenses 155,079. Fundraising expenses 0. Total expenses 790,171. Mayo Service Fees: Program service expenses 75,870. Management and general expenses 38,787. Fundraising expenses 0. Total expenses 114,657. Broker Commissions: Program service expenses 1,009,252. Management and general expenses 0. Fundraising expenses 0. Total expenses 1,009,252. Disease Management: Program service expenses 5,404. Management and general expenses 0. Fundraising expenses 0. Total expenses 5,404. Outsourced Services: Program service expenses 1,050,091. Management and general expenses 67,813. Fundraising expenses 0. Total expenses 1,117,904. UCare Minnesota 500 Stinson Blvd NE Minneapolis MN 554132615 363573805 Not for Profit Health Maintenance Organization MN 501(c)(3) Line 9 U of MDept of Family Practice 0 U of Mn Med SchoolDept of Family Practice 516 Delaware St SE 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 of UCare Minnesota MN 501(c)(3) Line 11a, I UCare Minnesota 0 0 0 0 0 1 0 0 0 0 0 0 0 1 1 1 1 1 0 0