2014-10-20T14:25:13-05:00 2013-12-31 BDO USA LLP 3200 BRISTOL ST 4TH FLOOR COSTA MESA CA 92626 990 2013-01-01 953858259 SCAN HEALTH PLAN % VIRGINIA HAVAI SCAN 5629895100 3800 KILROY AIRPORT WAY Suite 100 LONG BEACH CA 90806 CHRISTOPHER WING CEO 5629895218 2014-11-01 true WALTER H HICK JR P01070437 5629895218 2013 2015-11-30 17:44:51Z CHRISTOPHER WING 3800 Kilroy Way ste 100 Long Beach CA 90806 2366981412 false X WWW.SCANHEALTHPLAN.COM X 1983 CA OUR MISSION IS TO FIND WAYS TO ENHANCE SENIORS' ABILITY TO MANAGE THEIR HEALTH AND INDEPENDENCE. 11 10 906 2850 0 3705569 3635285 1682067393 1862239432 48887048 49206792 0 0 1734660010 1915081509 340575 310677 0 0 65564154 71330277 0 0 0 1607489703 1797106008 1673394432 1868746962 61265578 46334547 721721783 647648097 223215900 186176330 498505883 461471767 X OUR MISSION IS TO FIND WAYS TO ENHANCE SENIORS ABILITY TO MANAGE THEIR HEALTH AND INDEPENDENCE. false false 1689196050 31934 1862239427 Flexibility in the use of community resources to help seniors stay healthy and independent at home. Many of the SCAN members are also receiving "Independent Living Power" services or other home and community-based services. These are personal care services that are above and beyond typical Medicare health care benefits and available to SCAN members who, typically, might otherwise be living in a skilled nursing facility. These personal care services include items such as light housekeeping, home delivered meals, caregiver relief, and transportation escorts. 6828397 INDEPENDENCE AT HOME (IAH): INDEPENDENCE AT HOME (IAH) IS THE HOME AND COMMUNITY-BASED SERVICES DIVISION OF SCAN HEALTH PLAN. SCAN RECOGNIZES THE MULTIPLE UNMET NEEDS OF THE FRAIL AND ECONOMICALLY DISADVANTAGED MEMBERS OF THE COMMUNITY AND THE FAMILY MEMBERS THAT CARE FOR THEM, AND ADMINISTRATIVELY AND FINANCIALLY SUPPORTS IAH IN HELPING TO MEET THESE NEEDS. SCAN CONTINUES TO STRENGTHEN AND EXPAND IAH THROUGH DEVELOPING NEW PROGRAMS AND INCREASING CARE MANAGEMENT SERVICES TO INDIVIDUALS NOT ENROLLED IN THE SCAN MEDICARE ADVANTAGE HEALTH PLAN. 1345830 278743 SCAN HEALTH PLAN COMMUNITY GIVING PROGRAM: THE SCAN HEALTH PLAN COMMUNITY GIVING PROGRAM IS FOCUSED ON MEETING BASIC NEEDS SUCH AS NUTRITION, SHELTER, HEALTH AND SOCIALIZATION, AND ON ENHANCING AN INDIVIDUALS ABILITY TO REMAIN INDEPENDENT IN THEIR OWN COMMUNITY. THIS IS ACCOMPLISHED THROUGH ONE-TIME OPERATING GRANTS. THE SCAN COMMUNITY OUTREACH GOVERNANCE COMMITTEE IDENTIFIES ORGANIZATIONS WHOSE WORK FITS WELL WITH THE PROGRAM PRIORITIES. AS A RESULT OF THIS APPROACH, THE MAJORITY OF GRANTEES ARE IDENTIFIED AND CONTACTED BY OUR STAFF. 1697370277 true true false true false false false false false false true true false false true true true true false false false false false false false false false true false true false false false false false false false false false false false false false true true true true false true 4135 0 true 906 true false false false false false false false false false false X 11 10 false false false false true true false true true false false true true true true true true true true false CA X VIRGINIA HAVAI 5629898300 3800 KILROY AIRPORT WAY SUITE 100 LONG BEACH CA 908065616 Ryan Trimble Chairperson 0.6 8.4 X 136200 Colleen Cain Secretary 0.5 7.6 X 123000 Leo Estrada Director 0.3 2.5 X 46667 Thomas Higgins Director 0.4 6.7 X 105000 Andrew Allocco Director 0.7 5.4 X 88000 Kim Hunter Director 0.6 5.0 X 70000 Patrick Seaver Director 0.6 6.6 X 114000 Thomas McDaniel Director 0.4 4.1 X 70000 Michael Noel Director 0.6 7.0 X 106200 Francesca Ruiz De Luzuriaga Director 0.6 5.7 X 82000 Christopher Wing President/CEO 17.0 23.0 X X 1024500 606581 William Roth COO 20.0 20.0 X 637149 279773 Walter Stone CFO 18.0 22.0 X 510313 249595 Nancy Monk Chief Risk Officer 18.0 22.0 X 411753 157608 Catherine Batteer SVP All Markets 10.0 30.0 X 417932 161425 Douglas Jaques General Counsel 17.0 23.0 X 473641 180929 Gilbert Miller SVP National Sales 18.0 22.0 X 443140 136712 Sherry Stanislaw SVP GM So Cal Market 20.0 20.0 X 426691 158925 Peter Begans SVP Public & Government Affair 20.0 20.0 X 411382 204884 Eve Gelb SVP Healthcare Services 20.0 20.0 X 280368 131839 Timothy Schwab Outgoing Chief Med & Vision Of 20.0 20.0 X 860825 13941 Merlin Swackhamer Outgoing Chief Information Off 17.0 23.0 X 568226 130204 Russell Brower Corporate Medical Director 40.0 X 364293 121753 Bevann Moreland VP Claims 35.0 5.0 X 359903 93047 Raymond Chan Medical Director So Cal 40.0 X 343453 111449 Romilla Batra Corporate Medical Director SG 40.0 X 335765 111369 Sharonjit Bakshi VP Pharmacy 38.0 2.0 X 319363 107818 Elizabeth Russell President, Southwest Region 0.0 0.0 X 233860 0 7676515 1687109 2957852 122 true true false EXPRESS SCRIPTS 21653 NETWORK PLACE CHICAGO IL 60673 MEDICAL SERVICES 242705514 Heritage Provider Network 777A FLOWER ST GLENDALE CA 91201 MEDICAL SERVICES 206002588 Healthcare Partners Associates 19191 S VERMONT SUITE 200 TORRANCE CA 90502 MEDICAL SERVICES 136571350 HEALTHCARE PARTNERS 19191 S VERMONT SUITE 200 TORRANCE CA 90502 MEDICAL SERVICES 102654544 PRIMECARE MEDICAL NETWORK 3281 E Guasti Rd 7th Floor ONTARIO CA 91761 MEDICAL SERVICES 102575555 437 3632705 2580 3635285 MEDICARE PREMIUMS 900099 1824518144 1824518144 MEDI-CAL PREMIUMS 900099 37721288 37721288 1862239432 11114175 11114175 0 0 0 0 0 489984620 7900 451899835 68 38084785 7832 38092617 38092617 0 0 0 0 1915081509 1862239432 49206792 310677 310677 0 0 0 6909073 6909073 43165714 12694215 30471499 5425287 37708 5387579 4114122 788340 3325782 7607460 1401490 6205970 4108621 1029173 3079448 485180 11400 473780 20397 20397 190658 34000 156658 634949 634949 0 1390178 1390178 1706057511 1677640078 28417433 0 15296705 118313 15178392 3022103 273793 2748310 319160 26697 292463 0 238856 195972 42884 1341155 181544 1159611 0 96235 4401 91834 0 0 8159101 1316777 6842324 0 ALLOCATIONS TO/FROM AFFILIATES 46806333 1269282 45537051 BROKER COMMISSIONS 10865152 10865152 ALL OTHER 2182335 36417 2145918 1868746962 1697370277 171376685 0 -32537606 -9441824 92921880 87493057 0 0 59545638 58321946 0 0 0 0 0 31792000 0 0 3823710 6409471 44207386 29884995 17833907 14322391 95600831 51726742 443782069 406724314 0 0 1225000 0 39526354 300000 721721783 647648097 213796187 181708215 8379 90870 2122474 608069 0 0 0 0 0 0 0 0 0 0 7288860 3769176 223215900 186176330 X 498505883 461471767 0 0 0 0 498505883 461471767 721721783 647648097 X 46334547 -8368663 -75000000 X false true X true true true X 3980819 3871403 3830105 3705569 3635285 19023181 1588944407 1629939148 1634965549 1682067393 1862239431 8398155928 0 0 0 1592925226 1633810551 1638795654 1685772962 1865874716 8417179109 0 0 0 8417179109 23271203 27286098 2795274 14221474 11114175 78688224 0 23271203 27286098 2795274 14221474 11114175 78688224 0 0 1616196429 1661096649 1641590928 1699994436 1876988891 8495867333 0.99074 0.98840 0.00926 0.01160 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X X true false false false true 8497 false false true 567382 false true 58882 634761 false Form 990, Schedule C, Part II-B: LOBBYING ACTIVITIES: TRADE DUES 18596157 12915959 5680198 25498187 16969036 8529151 113040 113040 14322389 OBLIGATIONS 64905554 F CORPORATE BONDS 57470116 F INTL. EQUITY SECURITIES 5208653 F ASSET-BACKED SECURITIES 73886595 F MORTGAGE-BACKED SECURITIES 75248884 F MUTUAL FUNDS 119008194 F COMMINGLED FUNDS 10996318 F 406724314 0 DEFERRED COMPENSATION LIABILITIES 3769176 3769176 X 1905322675 -8368656 -8368656 1913691331 1390178 1390178 1915081509 1867356784 1867356784 1390178 1390178 1868746962 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, 2013 and 2012, there were no liabilities recorded for uncertain tax positions. true Healthcare Partners Institute 19191 S Vermont Ave Torrance CA 90502 954591816 501( c )(3) 300000 Applied Research & Educ, commitment and continued Univ of Southern California 3434 S Grand Ave 130-11 Los Angeles CA 90089 951642394 501( c )(3) 300000 Applied Research & Educ, commitment and continued City of Oakland 150 Frank H Ogawa Plaza Ste 4340 Oakland CA 94612 946000384 government 100000 Emergency Assistance Funds. Alliance for Leadership and Education 1107 Ninth Street Suite 701 Sacramento CA 95814 942506624 501( c )(3) 2000000 Community Health Home Project, commitment and cont Conejo Valley Senior Concerns 401 Hodencamp Rd Thousand Oaks CA 91360 952992927 501( c )(3) 12500 Nutrition assistance to funds. St Barnabas Senior Center of Los Angeles 675 S Carondelet St Los Angeles CA 90057 951641435 501( c )(3) 25000 Nutrition assistance to seniors. South County Senior Services 24300 El Toro Rd Bldg A 2000 Laguna Woods CA 92637 931163563 501( c )(3) 25000 Emergency Assistance Funds. Rehabilitation Services of Northern California 490 Golf Club Rd Suite 90 Pleasant Hill CA 94523 942822559 501( c )(3) 25000 Emergency Assistance Funds. Family Service Association of Western Riverside Co 21250 Box Springs Rd Suite 215 Moreno Valley CA 92557 951803694 501( c )(3) 25000 Senior Nutrition Programs. City of Ventura 501 Poli St Ventura CA 93001 956000807 government 12500 Nutrition assistance to seniors. Meals on Wheels of San Francisco Inc 1375 Fairfax Ave San Francisco CA 94124 941741155 501( c )(3) 50000 Emergency Assistance Funds, Senior Nutrition, comm Second Harvest Food Bank of Orange County Inc 1814 Marin Way Irvine CA 92618 320362611 501( c )(3) 25000 Senior nutrition assistance. Meals on Wheels and Senior Outreach Services 1300 Civic Dr Walnut Creek CA 94596 680044205 501( c )(3) 25000 Senior nutrition assistance and emergency assistan Mexican American Opportunity Foundation 401 N Garfield Ave Montebello CA 90640 952594166 501( c )(3) 50000 Senior nutrition assistance and emergency assistan Project Access Inc 3900 Birch St Suite 113 Newport Beach CA 92660 330834635 501( c )(3) 50000 Senior emergency assistance funds. Smiles for Senior Foundation 34910 Avenue C Yucaipa CA 92399 260373602 501( c )(3) 25000 Senior emergency assistance funds. Senior Community Centers of San Diego 525 14th St Suite 200 San Diego CA 92101 952850121 501( c )(3) 50000 Senior nutrition assistance and emergency assistan Project Angel Food 922 Vine Street Los Angeles CA 90038 954115863 501( c )(3) 10000 Daily home-delivered meal program serving seniors Harvesters Group 28247 Mariners Way Manifee CA 92584 320068318 501( c )(3) 10000 To feed 350 seniors who would go hungry without. Seal Beach 510K Run Non-Profit Corp 1077 Pacific Coast Hwy Seal Beach CA 90740 912009870 501( c )(3) 9500 Run Seal Beach race event sponsorship. California Foundation on Aging 73 Colgate Drive Rancho Mirage CA 92270 770187875 501( c )(3) 6700 $1,700 for Sponsorship to the California Senior Le Meals on Wheels West 1823 Michigan Ave Suite A Santa Monica CA 90404 954613280 501( c )(3) 12000 Support of home-delivered meal program. Senior Gleaners Inc 1951 Bell Ave Sacramento CA 95838 510183481 501( c )(3) 15000 Commitment to the senior population and continued San Francisco Food Bank 900 Pennsylvania Ave San Francisco CA 94107 943041517 501( c )(3) 10000 Brown Bag Pantry senior nutrition program. Project Angel Food 922 Vine St Los Angeles CA 90038 954115863 501( c )(3) 10000 Nutrition program for Seniors in Los Angeles Count Jewish Federation & Family Services Orange County 1 Federation Way Suite 210 Irvine CA 92603 952407026 501( c )(3) 10000 Commitment to the senior population and continued The Food Bank of Sothern California 1444 San Francisco Ave Long Beach CA 90813 953557056 501( c )(3) 10000 Brown Bag Network Program for seniors in Los Angel Marin Senior Coordinating Council Inc 930 Tamalpais Ave San Rafael CA 94901 941422463 501( c )(3) 20000 Meals on Wheels Program in Marin County. Human Services Association 6800 Florence Avenue Bell CA 90201 951816054 501( c )(3) 15000 Emergency Assistance Funds. Food Share Inc 4156 Southbank Rd Oxnard CA 93036 770018162 501( c )(3) 10000 Brown Bag Network Program for seniors. Jewish Federation of Greater Long Beach & West Ora 3801 E Willow St Long Beach CA 90815 951647830 501( c )(3) 18000 Senior lunch program. 31 Part I, Line 2 SCAN has a community giving committee, ("CGC"), which is a nine member committee representative of all levels of management and is chaired by the Vice-President of SCAN's independence at home division. The CGC meets on a bimonthly basis to evaluate, select and decide the amount to be awarded to grantee organizations. It bases its decision to award money on the infrastructure of the grantee organization, its perceived ability to effectively and efficiently impact the lives of seniors and ability to continue a sustainable relationship. Prior to the selection of prospective grantee organizations by CGC, such organizations are subjected to a vetting process and measured against the following criteria: 1) Align with SCAN Mission, 2) Serve residents in SCAN Health Plan California service areas, 3) Must be verified nonprofit with tax exempt status and 4) must be in existence for at least 2 years. In 2011, SCAN Health Plan agreed to make a $2,000,000 grant to Healthcare Partners Institute which addresses the health needs of California's seniors that allows them to remain healthy and independent, at home. The grants awarded as part of this commitment were distributed as follows: $800,000 in 2012, $600,000 in 2013 and $600,000 in 2014. In 2011 an accrual for the $2,000,000 was included in Schedule I and in 2013, $600,000 was paid against the accrual. In 2011, SCAN Health Plan agreed to make an additional $4,000,000 in community grants which address the health needs of California's seniors that allow them to remain healthy and independent, at home. The grants awarded as part of this commitment were distributed by December 31, 2013. Amounts awarded to specific organizations during 2013 that were unknown at the time of the commitment and accrual are included in Schedule I. X X true true X X X X X X true true true false false false false false false Christopher Wing President/CEO 596228 407160 21112 582294 24287 1631081 William Roth COO 439156 177128 20865 277273 2500 916922 Walter Stone CFO 379038 108244 23031 198733 50862 759908 Nancy Monk Chief Risk Officer 284032 108755 18966 138201 19407 569361 Catherine Batteer SVP All Markets 303942 92832 21158 161425 579357 Douglas Jaques General Counsel 315305 96531 61805 127877 53052 654570 Gilbert Miller SVP National Sales 305102 99958 38080 136531 181 579852 Sherry Stanislaw SVP GM So Cal Market 290913 85561 50217 145837 13088 585616 Peter Begans SVP Public & Government Affair 299776 89532 22074 154985 49899 616266 Eve Gelb SVP Healthcare Services 220126 42002 18240 104202 27637 412207 Timothy Schwab Outgoing Chief Med & Vision Of 293871 151846 415108 13941 874766 Merlin Swackhamer Outgoing Chief Information Off 373533 99280 95413 130204 698430 Russell Brower Corporate Medical Director 272557 53925 37811 99373 22380 486046 Bevann Moreland VP Claims 248422 49243 62238 91433 1614 452950 Raymond Chan Medical Director So Cal 273800 51667 17986 90988 20461 454902 Romilla Batra Corporate Medical Director SG 269883 48206 17676 87004 24365 447134 Sharonjit Bakshi VP Pharmacy 242310 47614 29439 85129 22689 427181 Elizabeth Russell President, Southwest Region 0 0 233860 0 0 233860 216360 Part I, Line 4A During 2013 the employment relationship of the following employee of SCAN Group and SCAN Health Plan ended. In connection with his termination of their respective employment, SCAN Group negotiated and paid severance to the employee. The severance payment was in accordance with the terms of highly compensated employees' then existing employment agreement. Matthew Shifflett, VP Strategic Analytics - Highly compensated employee - SCAN Group, $202,292 Part I 4B The Company provides a supplemental non-qualified retirement plan; only senior executives of the company, officers and senior vice presidents are eligible to participate in the section 457(F) plan. The following individuals participated in the company's section 457(F) plan during the year 2013: Christopher Wing, Walter R. Stone, Peter Begans, Timothy Schwab, Douglas Jaques, Sherry Stanislaw, Merlin Swackhamer, Catherine Bateer, Nancy J. Monk, William H. Roth, Gilbert J. Miller, Moon Kwan-Leung and Elizabeth Russell. 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 year 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. There was one individual who received distributions from the Section 457(F) plan during the year: (1) Elizabeth Russell - $216,360. Part 1 4C 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 are being newly added as participants. There was one individual who received distributions from the Keysop plan during the year: (1) Timothy Schwab - $284,578. Part 1a Significant others of certain SCAN Group, SCAN Health Plan and SCAN Arizona executives attended a Company business event in 2013, at the Companys request, for the business purpose of informing our distribution partners about the Company's upcoming AEP and soliciting tactical input on how to best position SCAN for sales success. Since the Company requested that the SCAN significant others attend for the purpose of achieving a Company business objective, the Company reimbursed the travel expenses of those companions. Additionally, members of the Board of Directors of SCAN Group, SCAN Health Plan, and SCAN Health Plan Arizona, and their companions,attended an offsite board meeting in 2013 which was paid for by SCAN Health Plan. SCAN HEALTH PLAN ALSO APPROVED AND PAID FOR FIRST CLASS TRAVEL FOR CHRIS WING ON TWO OCCASIONS. FORM 990, PART III, LINE 4A Flexibility in the use of community resources to help seniors stay healthy and independent at home. Many of the SCAN members are receiving "Independent Living Power" services or other home and community-based services. These are personal care services that are above and beyond typical Medicare health care benefits and available to SCAN members who, typically, might otherwise be living in a skilled nursing facility. These personal care services include items such as light housekeeping, home delivered meals, caregiver relief, and transportation escorts. FORM 990, PART III, LINE 4B Independence at Home (IAH) provides culturally and economically diverse seniors and disabled adults with personalized home and community-based services. Services are designed to assist clients in maintaining their well-being, dignity and independence at home. The vision of these services is to: Be the community resource of choice for innovative care management. All services provides seniors and disabled adults with easy access to community-based services that would enable them to remain healthy and living in the community instead of in nursing homes or other institutionalized settings. This is a service provided to the community at large. Today IAH has separate programs in place to meet the special needs of the senior and disabled adult community: - Multipurpose Senior Services Program (MSSP) - Supportive Services Program (SSP) - Family Caregiver Program (FCSP) - Los Angeles County's Linkage Program - Innerlinks Advantage (IA) - Volunteer Action for Aging (VAA) - California Community Transitions (CTT) For the year ended December 31, 2013, the Independence At Home program incurred $6,828,397 in program expense and received $3,635,285 in grants. 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 Audit and Compliance Committee in addition to the compensation 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 Health Plan 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 Health Plan 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 & B 15a: The process for determining the compensation of the Chief Executive Officer of SCAN Health Plan 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 Health Plan 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. 15b: The process for determining the compensation of officers or other key employees of SCAN Health Plan is conducted by the Human Resources Department and Chief Executive Officer of SCAN Health Plan, and 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 employees' 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 Health Plan 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, Governance: SCAN Health Plan's governing documents and conflict of interest policy are not made available to the public. SCAN Health Plan's audited financial statements are available to the Department of Managed Health Care's website and tax returns are available on request. Form 990, Part XI, Line 9, Change in net assets: Fund Balance Transfer out to SCAN Group -75,000,000 Total To Form 990, Part XI, Line 9 -75,000,000 FORM 990, PART III, LINE 4C SCAN Health Plan Community Giving Program: The SCAN Health Plan Community Giving Program is focused on meeting basic needs such as nutrition, shelter, health and socialization, and on enhancing an individual's ability to remain independent in their own community. This is accomplished through one-time operating grants. The SCAN Community Giving Committee identifies organizations whose work fits well with the program priorities. As a result of this approach, the majority of grantees are identified and contacted by our staff. Policies and Procedures: a. Identification and vetting of potential program grantee - Director, Community Outreach collaborates with various SCAN Health Plan Departments (Sales, Health Care Services, Independence at Home, etc.) and reputable agencies to identify prospective grantee organizations. The prospective grantees are subjected to the Community Giving (CG) vetting process and measured against the following criteria: 1) Alignment with the SCAN Health Plan mission 2) must be a verified nonprofit or governmental agency with tax-exempt status and 3) organization must be at least two years old. Successful candidates are added to the larger SCAN Health Plan grantee pool. b. Short listing potential grantee - Director, Community Outreach and Manager, Community Outreach and Giving, use various methods, i.e. outbound calls, internet research, and industry ratings to filter the potential grantee pool into a shortlist. c. Evaluation and selecting of grantees by the Community Giving Committee (CGC) - The CGC is a nine-member committee representative of all levels of management and is chaired by the Vice-President of SCAN's Independence at Home Division. The CGC meets on a quarterly basis and its role is twofold, 1) it evaluates, selects and decides the amount to be awarded to the grantee organizations, and 2) steers the CG program. The CGC bases its decision to award money on the infrastructure of the grantee organization, and its perceived ability to effectively and efficiently impact the lives of seniors and continue a sustainable relationship. d. Grantee outreach - Subsequent to the CGC earmarking and approving funds to be granted, the Manager, Community Outreach and Giving places an outreach call to the prospective grantee organization. The grantee organization is informed of its selection to apply for a one-time grant via our online grant tracking system. The Manager, Community Outreach and Giving, reviews each application and discusses criteria with the Director, Community Outreach to make a recommendation for funding. The list of recommended grantees is submitted to the CGC each quarter to be discussed and voted on. A grant agreement is developed for each approved grant, which contains information on funding restrictions and requirements for grant reporting. Only after a signed agreement has been fully executed will the grant payment phase be initiated. e. Payment of grant - The Manager, Community Outreach and Giving prepares a cover letter, envelope and check request form which is signed and approved by the Vice President, Independence at Home and forwarded to Accounts Payable for processing. Accounts Payable disburses payment. SCAN Health Plan Community Outreach: SCAN Health Plan has a 36 year history of creating programs and providing services to older adults and their caregivers. Our experience with this segment of the population has allowed us to develop a unique expertise in geriatric care and health interventions. SCAN Health Plan is committed to sharing this set of skills and knowledge with the broader community by developing community outreach initiatives. These initiatives are an important tool for bringing education directly to community members, contribute to reducing health disparities and improve health literacy, in particular among underserved communities. Through our outreach activities and community giving program, we work to support access to basic needs such as food and nutrition, to encourage active and healthy lifestyles, to engage older adults in health maintenance, and collaborate with local service partners to meet gaps in community services. We do this in many ways, bringing needed resources and a thoughtful presence to older adults and their network of support throughout California. Our goal is to make an impact in all of the communities we serve and to improve the lives of all seniors - not just SCAN members. SCAN Health Plan recognizes that its responsibility to the communities in which we serve goes beyond business and providing quality healthcare. Our Community Outreach department and Independence at Home (IAH) division share the same goals and perform many of the same community functions. For greater consistency and impact, SCAN will move all current Community Outreach activities, valued at $2.6 million, from SCAN Health Plan to IAH, beginning in 2014. While the full merger will take some time, we aim to fully integrate all programs and staff by 2015. In 2013, the SCAN Van participated in 38 events, touching approximately 13,285 people. Additionally, the Trading Ages workshop was delivered to new audiences such as Department of Motor Vehicles staff, city Parks and Recreation directors, American Red Cross volunteers, and family caregivers. Altogether 78 Trading Ages workshops were held and 1,768 individuals attended trainings. For the year ended December 31, 2013 SCAN Health Plan gave $3,380,043 in grants for community giving. For the year ended December 31, 2013 SCAN Health Plan has incurred approximately $1,345,830 in program expenses which include $278,743 for grants and community giving, in support of the Company's community outreach and giving programs. FORM 990, PART VI, LINE 6 The sole member of the organization is SCAN Group, A California Nonprofit organization. FORM 990, PART VI, LINE 7A THE SOLE MEMBER HAS THE POWER TO APPOINT THE MEMBERS OF THE BOARD OF DIRECTORS. FORM 990 PART IX LINE 11G DESCRIPTION:MEDICAL SERVICES TOTAL FEES:1677507706 FORM 990 PART IX LINE 11G DESCRIPTION:MEDICAL REVIEW TOTAL FEES:-63532 FORM 990 PART IX LINE 11G DESCRIPTION:OTHER FEES TOTAL FEES:28613337 SCAN GROUP 3800 KILROY AIRPORT WAY SUITE 100 LONG BEACH CA 90806 953826037 ADMIN SUPPORT CA 501(C)(3) LINE11TYPE2 NA true THE SCAN FOUNDATION 3800 KILROY AIRPORT WAY SUITE 100 LONG BEACH CA 90806 450552845 GRANT MAKING CA 501(C)(3) LINE11TYPE2 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 360 CARE 3800 KILROY AIRPORT WAY SUITE 100 LONG BEACH CA 90806 352443412 MDCARE&MDCAID CA 501(C)(3) LINE 9 SCAN GROUP true SCAN LONG TERM CARE 3800 KILROY AIRPORT WAY SUITE 100 LONG BEACH CA 90806 204607594 MDCARE&MDCAID AZ 501(C)(4) n/a SCAN HP AZ true SCAN MANAGEMENT SERVICES COMPANY 3800 KILROY AIRPORT WAY SUITE 100 LONG BEACH CA 90806 900860955 MANAGEMENT CA SCAN GROUP C CORP 0 0 true SCAN WELLNESS CENTER PC 3800 KILROY AIRPORT WAY SUITE 100 LONG BEACH CA 90806 900860971 HEALTHCARE CA SCAN GROUP C CORP 0 0 true SCAN Health Check Assessment Centers 3800 KILROY AIRPORT WAY SUITE 100 LONG BEACH CA 90806 462962358 healthcare CA SCAN Group C CORP 0 0 true SCAN CALIFORNIA MANAGEMENT COMPANY 3800 KILROY AIRPORT WAY SUITE 100 LONG BEACH CA 90806 462951831 MANAGEMENT CA SCAN Group C CORP 0 0 true false false false false false false false false false false false false false false false true true true false SCAN ARIZONA Q 3459270 See Part VII SCAN FOUNDATION Q 63493 See Part VII SCAN GROUP P 52000931 See Part VII SCAN GROUP R 75000000 CASH 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, as appropriate based on the nature of the expense.