2018-11-14T20:27:20-06:00 2017-12-31 990 2017-01-01 464991603 CareSource Kentucky Co % JANET FERNANDES CARE 9375313027 10200 Forest Green Blvd 400 Louisville KY 40223 DAVID W GOLTZ CFO 9375313027 2018-11-12 128.136.202.167 31883020183185000001 2018-11-14 P C85B5279DC67EE319A1E363305D92183F51E14D3 0092E3F9704882A60A3E4E8637C91DC6489D1226 2017 2019-02-21 02:37:17Z Pamela B Morris PO Box 8738 Dayton OH 45401 102086373 false X N/A X 2014 KY To Make a Lasting Difference in our members' lives by improving their health and well-being. CareSource Kentucky Co is a nonprofit medicaid HMO licensed by the State of KY. 3 2 0 0 0 0 0 0 31757049 102021012 4467 65361 0 0 31761516 102086373 4000 2000 0 0 0 0 0 0 0 40443875 108553829 40447875 108555829 -8686359 -6469456 31378367 59799747 22241005 40631841 9137362 19167906 X TO MAKE A LASTING DIFFERENCE IN OUR MEMBERS LIVES BY IMPROVING THEIR HEALTH AND WELL-BEING. false false 96507175 2000 102021012 CareSource Kentucky Co. (CSKY or CareSource Kentucky) is a nonprofit organization established under the state law of Kentucky. CSKY was granted a Certificate of Authority by the Kentucky Department of Insurance (KDOI), allowing it to operate as a Health Maintenance Organization (HMO). On July 7, 2016, CSKY received a determination letter from the Internal Revenue Service, recognizing CSKY as an organization exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code, effective as of the date of CSKY's formation. CSKY is a member of the CareSource group of nonprofit organizations (the "CareSource Group"). The mission of the CareSource Group is to make a lasting difference in its members' lives by improving their health and well-being. CSKY firmly adheres to this mission, which it terms as the organization's "heartbeat," by providing services that go well beyond the delivery of medical benefits. CSKY began offering a Qualified Health Plan (QHP) on the Kentucky Health Insurance Marketplace beginning in January 2015, providing low-cost comprehensive coverage for uninsured individuals and families. Importantly, CareSource Kentucky received accreditation from the National Committee for Quality Assurance (NCQA) for its qualified Health Insurance Marketplace plan. CSKY focuses on prevention with a goal of improving member health, the quality of health care services received, and accessibility of health care services for its members. This is done through an innovative health and wellness methodology. CSKY has built a high-performing provider network to operate as an HMO. This provider network relies heavily upon Federally Qualified Health Centers (FQHCs). FQHCs are generally health care providers that have been recognized by the federal government as providing care to populations that have limited access to medical treatment due to conditions such as poverty and geographic location. CSKY's Qualified Health Plan on the Health Insurance Marketplace primarily serves low-income individuals and was designed for those low-income adults who are recently uninsured or have never been insured. The plan is affordable, with a majority of members qualifying for subsidies to lower their monthly premiums, and free generic prescriptions for some members. Members have the choice of buying dental and vision plans in addition to their medical plan, plus the option to add fitness benefits. Members can receive assistance through CSKY's many programs designed to remove barriers to health and well-being. CareSource Kentucky can, therefore, further its mission as a means of improving the health and well-being of Kentucky's low-income populations. In support of CSKY's commitment to its charitable purposes, some of its appointed trustees and committee members elect to earn charitable credits for board or committee meetings attended. At year-end, trustees and committee members may designate their credits to their Internal Revenue Code Section 501(c)(3) tax exempt charity of choice. Charitable donations in the amount of $2,000 were paid or accrued for in 2017 under this policy by the Organization. 96507175 true false false true false false false false false false false false 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 false false false true 1094 0 true 0 false false false false false false false false false false X 3 2 false false false false true false false true true false false true true true true true true false false false KY X JANET FERNANDES 9375313027 PO BOX 8738 Dayton OH 454018738 X J Thomas Maultsby Chairman/Trustee 3.0 17.0 X X 0 55000 0 Kevin R Brown Vice Chair/Trustee 3.0 17.0 X X 0 136250 0 Pamela B Morris President & CEO/Sec/Treas 5.0 55.0 X X 0 3626452 1072127 Craig Thiele MD Chief Medical Officer to 6/17 2.0 58.0 X 0 1248029 37111 Daniel McCabe Chief Administrative Officer 3.0 57.0 X 0 811840 239153 L Tarlton Thomas III Chief Operating Officer 7.0 53.0 X 0 1044863 285766 David W Goltz Chief Financial Ofr from 12/17 0.2 59.8 X 0 153601 775 0 7076035 1634932 0 false true false CVS Caremark 9501 E Shae Blvd MC 143 SCOTTSDALE AZ 85260 PHARMACY Services 29550061 KentuckyOne Health Medical Group CO 200 Abraham Flexner Way LOUISVILLE KY 40202 Medical Services 12252579 St Elizabeth Healthcare Center Inc 1 Medical Village Dr EDGEWOOD KY KY 41017 Medical Services 11442352 Norton Hospital Inc 1930 Bishop Lane 1017 LOUISVILLE KY 40218 Medical Services 8674487 University of Kentucky 800 Rose Street LEXINGTON KY 40536 Medical Services 6756228 52 X 0 STATE HEALTH INSURANCE EXCHANGE 524114 93666036 93666036 MEDICARE ADVANTAGE 524114 8354976 8354976 102021012 65361 65361 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 102086373 102021012 0 65361 2000 2000 0 0 0 0 0 0 0 0 0 0 15789 15789 78736 9799 68937 59480 1429 58051 0 0 2909609 345786 2563823 199664 209 199455 1716467 1135 1715332 0 0 218647 145 218502 0 0 89113 5905 83208 351 351 0 0 0 MEDICAL EXPENSES 70422882 70422882 PHARMACY EXPENSES 24906758 24906758 FEES AND ASSESSMENTS 2116189 2116189 MGMT FEES CARESOURCE MGMT GRP 5565832 773365 4792467 254312 37762 216550 108555829 96507175 12048654 0 X 28315457 500000 0 53939104 0 0 3062910 5360643 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 31378367 59799747 9115134 19672888 0 0 12590982 20370803 0 0 0 0 0 0 0 0 0 0 534889 588150 22241005 40631841 X 9137362 19167906 0 0 0 0 9137362 19167906 31378367 59799747 X -6469456 16500000 X false true X true false X 0 0 0 0 0 0 9995816 31664913 102021012 143681741 0 0 0 0 0 9995816 31664913 102021012 143681741 0 0 0 143681741 4467 65361 69828 0 4467 65361 69828 0 0 0 0 9995816 31669380 102086373 143751569 X 0.00000 false false false false false false true 114610 false true 4350 118960 false Form 990, Schedule C, Part II-B, Line 1g Lobbyists are retained to provide updates and represent the Organization's interests with federal and state legislators who deal with legislation related to Government sponsored health care programs. Form 990, Schedule C, Part II-B, Line 1i $4,350 is the allocable portion of the Organization's dues paid to the Kentucky Association of Health Plans for lobbying and grassroots efforts conducted by the trade association on behalf of its members. 0 RELATED PARTY PAYABLE 588150 588150 X FIN 48 (ASC 740) Footnote As outlined in the CareSource Management Group Co.'s Audited Consolidated Financial Statements, which include the activity of CareSource Kentucky Co.: The Company annually reviews its tax positions and has determined that there are no material uncertain tax positions that require recognition in the consolidated financial statements. Currently, tax years 2014-2017 are open for audit by the Internal Revenue Service. true true false false false false true false false Pamela B Morris President & CEO/Sec/Treas 0 1129563 0 0 0 2496889 0 1060343 0 11784 0 4698579 0 1392500 Craig Thiele MD Chief Medical Officer to 6/17 0 181209 0 0 0 1066820 0 12277 0 24834 0 1285140 0 708397 Daniel McCabe Chief Administrative Officer 0 392201 0 0 0 419639 0 216651 0 22502 0 1050993 0 223292 L Tarlton Thomas III Chief Operating Officer 0 482383 0 75019 0 487461 0 260446 0 25320 0 1330629 0 261987 David W Goltz Chief Financial Ofr from 12/17 0 31457 0 121718 0 426 0 0 0 775 0 154376 0 0 Form 990, Schedule J, Part II All compensation amounts reported on Schedule J, Part II for all listed persons are paid by CareSource Management Group Co. ("CSMG"), a related organization to CareSource Kentucky Co. Compensation paid to the CEO is pursuant to the terms of a written employment agreement between Ms. Morris and CSMG. Form 990, Schedule J, Part I, Question 4b The following listed persons listed on Form 990, Part VII, Section A, participate in a supplemental nonqualified retirement plan of a related organization, CareSource Management Group Co. (CSMG): Pamela B Morris, Craig Thiele MD, Daniel McCabe, and L Tarlton Thomas III. Amounts are accrued monthly for plan participants. The plans provide compensation to the participants after a vesting period, and the funds are available to the participants after they retire or resign from the organization. The plans provide for normal terms and conditions contained in a standard nonqualified retirement plan. The following listed persons listed on Form 990, Part VII, Section A, participate in a long-term incentive plan of a related organization, CareSource Management Group Co.: Pamela B Morris, Craig Thiele MD, Daniel McCabe, and L Tarlton Thomas III. The plan provides compensation to the participants based on annual and long-term goals. The long-term incentive plan will pay out if these goals, or a subset of these goals, are achieved over a three year period. If a participant leaves their employment prior to this three year vesting period, they forfeit any amounts accrued under this plan. Amounts paid and accrued in 2017 for both deferred compensation arrangements include the following: Pamela B Morris $2,470,918; Craig Thiele MD $817,884; Daniel McCabe $393,869; and L Tarlton Thomas III $466,997. Form 990, Schedule J, Part I, Question 6b The following listed persons listed on Form 990, Part VII, Section A, line 1a are employees of CareSource Management Group Co, a related organization to CareSource Kentucky Co.: Pamela B Morris, Daniel McCabe, and L Tarlton Thomas III. All of these listed persons are eligible for a performance bonus as part of their compensation packages. The performance bonus is contingent on a combination of both company performance and individual performance against goals. The performance management process documents the company goals and individual goals, the corresponding potential performance bonus, and the progress/outcomes. The performance bonus is based on the employee's calendar year regular earnings. Form 990, Schedule J, Part I, Question 3 The process the Organization goes through to establish the reasonable executive compensation is the same for all the CareSource Family of Companies. The organization utilizes a compensation committee, independent compensation consultant, CEO written employment contract, compensation survey or study, review of Form 990 of other organizations, and approval by the board or executive compensation committee comprised solely of independent trustees. CSMG has in place Clawback provisions within its executive compensation plans that generally require executives to pay back compensation to CSMG in the event a subsequent legal, accounting, regulatory or compliance issue is discovered over which the executive had direct responsibility and control during the executive's employment. Form 990, Schedule J, Part I, Question 4a Craig Thiele MD received a severance payment that is properly reported on Schedule J, Part II, Column B(iii). Form 990, Part VI, Section B, Question 11B The Form 990 was provided to the organization's Finance committee for their review of the return prior to the time of filing Form 990. The Form 990 was made available to each voting member of the governing body of the organization for their review prior to the time of filing Form 990. The Form 990 was reviewed by the CEO, CFO, VP Treasury, an outside CPA firm, outside legal counsel, and by general counsel prior to filing Form 990 with the IRS. Form 990, Part VI, Section B, Question 12C Annually, each trustee, principal officer and member of a committee with Board-delegated powers ("interested person") shall sign a statement which affirms that such person a) has received a copy of the conflicts of interest policy, b) has read and understands the policy, c) has agreed to comply with the policy, and d) understands that the organization is a charitable organization and that in order to maintain its federal tax exemption it must engage primarily in activities which accomplish one or more of its tax-exempt purposes. In connection with any actual or possible conflicts of interest, an interested person must disclose the existence of his or her financial or conflict of interest and must be given the opportunity to disclose all material facts to the directors and members of committees with Board delegated powers considering the proposed transaction or arrangement. After disclosure of the financial interest and all material facts, and after any discussion with the interested person, he/she shall leave the Board or committee meeting while the determination of a conflict of interest is discussed and voted upon. The remaining Board or committee members shall decide if a conflict of interest exists. An interested person may make a presentation at the Board or committee meeting, but after such presentation, he/she shall leave the meeting during the discussion of, and the vote on, the transaction or arrangement that results in the conflict of interest. The conflicted trustee has no vote on the matter involved with the conflict of interest. At the beginning of each Board Meeting and Committee Meeting, the Board Members and Committee Members are asked to disclose if they have a Conflict of Interest on any item contained in the agenda. In addition, the Board Members and Committee Members are also asked to inform the board chair if a Conflict of Interest arises during the course of the Board or Committee Meeting. When such a conflict is disclosed, then the procedure outlined above is implemented. In addition, a Conflict of Interest Schedule is kept with respect to each declared Conflict of Interest during the course of a Board or Committee meeting. On an annual basis, the Nominating and Governance Committee reviews each Conflict of Interest raised by a Board or Committee Member. Also, the Nominating and Governance Committee conducts a bi-annual evaluation of the Board Members' performance during the course of the Board Meetings and Committee Meetings. The review includes but is not limited to the Board Member's engagement, participation, contributions to board business, attendance, and any absence from a meeting due to a conflict of interest. The Conflicts of Interest declared by the Board Members are reviewed on an annual basis by the Nominating and Governance Committee, and memorialized in meeting minutes, to make sure all policies on Conflict of Interest are adhered to by the Boards, the Committees and the Individual Board or Committee Member. Form 990, Part VI, Section C, Question 19 The company's Form 1023 is available for public inspection upon request, and Form 990 is available for public inspection upon request in accordance with IRC Section 6104(d). The company's Form 990 is also available on the U.S. nonprofit database website at www.guidestar.org. The Company's statutory financial statements are available on the SNL Financial LC website at www.snl.com for a nominal fee. The company's articles of incorporation are available on the Kentucky Secretary of State's website at www.sos.ky.gov. Form 990, Part XI, Line 9 (1) Change in Net Assets: Capital Contribution from parent Organization CareSource Management Group Co during 2017 in the amount of $16,500,000. CareSource Management Group Co PO Box 8738 Dayton OH 45401 311703368 Supporting OH 501(c)(3) 509(a)(3)II NA false CareSource Indiana Inc 135 N Pennsylvania St 1300 Indianapolis IN 46204 320121856 Medicaid HMO IN 501(c)(3) 509(a)(2) CSMG false CareSource Georgia Co 600 Galleria Pkwy 400 Atlanta GA 30339 472408339 Medicaid HMO GA 501(c)(3) 509(a)(2) CSMG false CareSource North Carolina Co PO Box 8738 Dayton OH 45401 811593512 Inactive NC 501(c)(3) 509(a)(2) CSMG false CareSource West Virginia Co PO Box 8738 Dayton OH 45401 473028244 Exchange HMO WV 501(c)(3) 509(a)(2) CSMG false CareSource Life Services Co PO Box 8738 Dayton OH 45401 811602217 Inactive OH 501(c)(3) 509(a)(2) CSMG false CareSource Virginia Co PO Box 8738 Dayton OH 45401 811727271 Inactive VA 501(c)(3) 509(a)(2) CSMG false CareSource Mgmt Grp Foundation PO Box 8738 Dayton OH 45401 814170497 Supporting OH 501(c)(3) 509(a)(3)II CSMG false CareSource Management Services Co PO Box 8738 Dayton OH 454018738 311703371 Adm Mgmt Svcs OH NA C Corp 0 0 0.00000 false false false true false false false false false false false false false true false true true true true