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      <MissionDescription>UCare Minnesota will improve the health of our members through innovative services and partnerships across communities. See also response to Part 1, Line 1.</MissionDescription>
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      <Description>Operates a HMO providing coordinated health care and coverage for 277,784 individuals from the community enrolled in state and federal public health care programs, including Medicaid and Medicare. UCare's programs provide services to seniors, low-income families, the physically disabled and other individuals who may have challenges accessing health care. UCare does not offer any traditional commercial HMO or insurance products.UCare's mission is to improve the health of our members through innovative services and partnerships across communities. In 2011, UCare's quality monitoring and program initiatives demonstrated many significant activities and outcomes. The highlights are outlined below.Statistically significant (p&lt; 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; Managing Diabetes by Controlling LDL-C; Weight Assessment and Counseling for Nutrition for Children; Chlamydia Screening; Spirometry Testing for COPD; Colorectal Cancer Screening; Adult BMI Assessment; Glaucoma Screening; Managing Diabetes by Controlling HbA1c (&lt;8); and, Care for Older Adults-Pain Screenings &amp; Functional Status Assessments.UCare offers a telemonitoring program for qualifying members with heart failure. Members report a 92% satisfaction rate with the program. Ninety percent of participants agree that they have learned to make changes in the way they take care of their heart failure. Program participants were also 41% less likely to have an inpatient event for heart failure than their non-program counterparts. Additional significant clinical improvements included exceeding the goals for improving the rate of: Pneumococcal vaccine in a Medicare special needs plan community population; and Chlamydia screening in Medicaid enrollees. The Human Papilloma virus Performance Improvement Project aimed at increasing vaccination rates for females, eleven to twelve year of age, realized significant gains in 2011.The Aspirin Therapy in Ischemic Heart Disease and Diabetes Mellitus Performance Improvement Project aimed at increasing aspirin utilization among members, 65 to 84 years of age, realized significant gains.Satisfaction in UCare's health improvement efforts from members was reflected in 2011 by earning 4.5 stars out of 5 in the CMS Medicare Performance Assessment report for its UCare for Seniors plans In the CMS Medicare CAHPS survey, UCare performed significantly higher than the national average on the following measures: overall rating of health plan; overall rating of care received; and overall rating of prescription drug coverage. It also performed at a high level on other Medicare measures, and on the Medicaid CAHPS survey.UCare's Community Benefit ProgramIn addition to UCare's core business of providing public health care program plans that seek to improve the health of our communities, UCare provides community benefit through a variety of activities that reach beyond its everyday commitment to its enrollees. Through UCare's community benefit program, UCare reaches out to the larger community to: address social needs that may undermine the health of the community; strengthen the providers that serve populations with challenges accessing care; encourage the wellness of families and seniors; and support research, programs, and organizations that benefit health care quality and delivery.UCare engaged in the following examples of additional community benefit activities in 2011.During 2011, UCare helped fund many community organizations and providers delivering services, research, and programs that reach beyond UCare's membership into the larger community, including efforts to strengthen the social safety net for at-risk families and seniors. Examples include funding for the following: Human Rights Campaign, Minneapolis Urban League Scholarship Program, National Alliance of the Mentally Ill, Lutheran Social Services, Lifeworks Services and Minnesota Academy of Family Physicians Research Forum.In addition to funding quality improvement and public health efforts in the community, UCare employees devoted substantial time to participate in many collaborations working to improve health care quality and to advance public health and health care access, including projects that seek to break down language and cultural barriers between the traditional health care system and minority communities. Examples include participating in the following: Community Health Worker Project, Institute for Clinical Systems Improvement, Minnesota Community Measures, Health Literacy Partnership, Interpreter Stakeholders Group, Metro and Minnesota Public Health Association/Health Plan Collaboration, Multilingual Health Resource Exchange and, Metro Refugee Health Task Force.UCare provides many health promotion, disease management, care management and wellness programs. These efforts not only benefit the health of its enrollees, but also 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 living at home; 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 a variety of community forums.UCare 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 include support for the following: Adopt-a-Family Gift Drive, Food and School Supply Drives, Jeremiah House "Cook for Kids", Meals on Wheels Northeast Dinner Bell, Pratt Community School Reading and Little Brothers Friends of the Elderly.In addition, UCare provides funding to community partners and providers to help cover gaps in reimbursement, improve access to dental services, provide outreach to the uninsured and diverse communities, support obesity initiatives, community clinic infrastructure and improve quality of care. Examples include funding for the following: Culture Care Connection on-line cultural competence resource center for providers, Rural Palliative Care Project, ECHO Program on Obesity, Portico Healthnet, Reach Out and Read and Southern Minnesota Regional Legal Services.UCare also provides support for the UCare Fund. The UCare Fund of the Minnesota Medical Foundation is a community-directed initiative providing financial support for health care research projects and special programs by practitioners affiliated with the University of Minnesota Medical School as well as community healthcare providers. Funding focuses on programs and projects that improve the health of underserved populations through innovative services, education, community outreach, and research. Priority was given in 2011 to projects focusing on obesity reduction and preventive health. Examples include support for the following: Health Commons/Fairview Foundation, Special Olympics Minnesota, Opportunity Partners, University of MN-College in the Schools, City of Bloomington Public Health, Comunidades Latinas Unidas En Servicio, and Fillmore, Clay and Blue Earth County Public Health Agencies.UCare's financial contributions to the University of Minnesota Medical School, Department of Family Medicine and Community Health supported activities in 2011 to enhance and strengthen family medicine education, research, and innovative health service delivery that improves the health of people and communities of Minnesota and the nation. In addition to providing critical funding to support family medicine education, examples of funded efforts include: the Rural Physician Associate Program; development of global health educational experience for residents and medical students; volunteering to provide preventive health services to underserved populations at homeless and free clinics; curriculum development for delivering team-based care to chronically ill patient; conducting childhood obesity prevention programs; Palliative Care Fellowship; working with community groups regarding depression in immigrant and American Indian populations and collaboration with Clinical Systems Improvement. It should also be noted that UCare made a one-time contribution to the State of Minnesota in the amount of $30 million to help address a historic budget deficit that was negatively impacting our members, potential members,contracted providers and the broader community.</Description>
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        <Identifier>Explanation of Other Lobbying Activities:</Identifier>
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        <Identifier>Description of Uncertain Tax Positions Under FIN 48:</Identifier>
        <ReturnReference>Part X:</ReturnReference>
        <Explanation>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. The tax returns for the years 2007 to 2011 are open to review and examination.</Explanation>
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          <BusinessNameLine1>Apple Tree Dental</BusinessNameLine1>
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          <City>Minneapolis</City>
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      <RecipientTable>
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          <BusinessNameLine1>Minnesota Community Foundation</BusinessNameLine1>
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          <State>MN</State>
          <ZIPCode>55101</ZIPCode>
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        <EINOfRecipient>410832480</EINOfRecipient>
        <IRCSection>501(c)(3)</IRCSection>
        <AmountOfCashGrant>25000</AmountOfCashGrant>
        <PurposeOfGrant>Support Give MN Program.</PurposeOfGrant>
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      <RecipientTable>
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          <BusinessNameLine1>Minnesota Medical Foundation</BusinessNameLine1>
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          <State>MN</State>
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        <PurposeOfGrant>Support health research, medical education, and community health programs.</PurposeOfGrant>
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          <BusinessNameLine1>University of Minnesota Dept of Family Medicine</BusinessNameLine1>
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        <PurposeOfGrant>Support medical education and community health programs.</PurposeOfGrant>
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          <BusinessNameLine1>State of Minnesota Office of Minnesota Management &amp; Budget</BusinessNameLine1>
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        <IRCSection>115</IRCSection>
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        <PurposeOfGrant>General support for a Cooking Matters Nutrition Program.</PurposeOfGrant>
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        <PurposeOfGrant>General Support for NE Community Meals on Wheels Program.</PurposeOfGrant>
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        <ReturnReference>Part I, Line 6</ReturnReference>
        <Explanation>Incentive compensation is not available unless the organization has net positive earnings. Amounts paid are based on the calender year performance in relation to pre-established criteria that are not necessarily, but can be tied to net earnings. Payments are made in March following the completion of the incentive plan year.</Explanation>
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    <IRS990ScheduleO documentId="RetDoc1044400001">
      <GeneralExplanation>
        <ReturnReference>Form 990, Part VI, Section A, line 1</ReturnReference>
        <Explanation>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. In addition to the above directors, UCare's current board includes seven independent directors: six directors who are enrollees of UCare's plans, 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.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>Form 990, Part VI, Section A, line 6</ReturnReference>
        <Explanation>Individuals enrolled in UCare's health plans are considered members, although they do not elect all of the directors in the board. Their only right is to elect six of the board's directors who are enrolled members. There are no classes of member or other rights.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>Form 990, Part VI, Section A, line 7a</ReturnReference>
        <Explanation>Under Minnesota law, at least 40% of a HMO's board must consist of members of the HMO elected by the membership. Accordingly, UCare's board includes six members nominated by its Governance Committee and elected by its enrolled members. In addition, under UCare's bylaws, the chair of the board has 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.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>Form 990, Part VI, Section B, line 11</ReturnReference>
        <Explanation>UCare provides a copy and reviews the detail of the 990 with the Finance and Audit Committee. UCare also provides a copy of the 990 to all Board of Directors members via e-mail, prior to the Finance and Audit Committee's report to the Board. Upon approval by the Board of Directors, the 990 is filed with the Internal Revenue Service.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>Form 990, Part VI, Section B, line 12c</ReturnReference>
        <Explanation>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 a 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 corporation, 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 or designated committee even for transactions not requiring board action.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>Form 990, Part VI, Section B, line 15</ReturnReference>
        <Explanation>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 2010. 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 data 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 approves the annual cash compensation package for the President &amp; CEO. 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 reports its actions to the Board. The Compensation Committee also participates in the compensation process for other senior executives, including the Treasurer &amp; Chief Financial Officer, the Secretary &amp; General Counsel, the Chief Medical Officer, the Senior Vice President of Administration, the Senior Vice President of Operations, the Senior Vice President of Public Affairs &amp; Marketing, and the Senior Vice President of Stragegy and Product Management. 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 2010. The Compensation Committee receives and discusses the analysis and recommendations with the independent consultant organization, and provides input for the President &amp; CEO in determining cash compensation for the officers and senior executives. All changes in the benefit structure are approved 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.</Explanation>
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      <GeneralExplanation>
        <ReturnReference>Form 990, Part VI, Section C, line 19</ReturnReference>
        <Explanation>UCare's 990 Form is available on the Minnesota Department of Health website at www.health.state.mn.us/divs/hpsc/mcs/financial.htm. UCare's year-end financial statements are also available on this site. 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. In addition, UCare would provide copies of these documents, if requested.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Changes in Net Assets or Fund Balances:</Identifier>
        <ReturnReference>Form 990, Part XI, line 5:</ReturnReference>
        <Explanation>Contributed Paid-in capital to its wholly owned subsidiary UCare Wisconsin -2,500,000. Total to Form 990, Part XI, Line 5: -2,500,000.</Explanation>
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