Seeds of Change A People First Perspective Takes Root in Health Insurance

Transcription

1 Annual Report to Stakeholders Seeds of Change A People First Perspective Takes Root in Health Insurance

2 Much respect for your vision, your competency, your tenacity, and, finally, congratulations on your success. I am proud to be insured by, and be a member of Common Ground Healthcare Cooperative, representing a terrific example of small business entrepreneurism success. Thank you!! - CGHC Member, November 25, 2014 Strong Roots: A Thank You to Those that Brought Us Here Common Ground Healthcare Cooperative owes its existence to numerous individuals that contributed time, effort, expertise and financial support to the cooperative during its infancy. These individuals include community leaders, business owners, healthcare experts, health insurance experts, elected officials and regulators from local communities and around Wisconsin. We are proud of our roots, and we owe our growth to all of you who helped us along the way. While we have too many cultivators to mention by name, we do want to thank in particular: Bob Connolly for his unwavering vision and commitment to finding a better way forward for the people of Wisconsin; Jim Wesp for always asking the most important question, How can we do this better for our members? and Bob De Vita, for coming out of retirement to coach our team during the first segment of the marathon we re running. Last but not least, we want to thank the thousands of individuals, families, nonprofits and small employers that joined us in You are our foundation - our common ground - and we wouldn t be here without you.

3 Dear Stakeholders and Members, It is my pleasure to present to you the first annual report of the Common Ground Healthcare Cooperative (CGHC). Much has happened since the kickoff of our cooperative in 2012, it s hard to know where to start. I ll begin with what s top of mind for me. It goes without saying that I am proud of what we ve accomplished when I think back to our humble beginnings. But what I am most proud is not what we ve done in the past but where we are headed. Our mission to change the way people think about health insurance is why all of us at CGHC are honored to do the work we do. This is the yardstick by which we will meaure our success. So while this Annual Report is our opportunity to highlight some of our accomplishments to date, please undertand that we are still at the very beginning. We ve done some heavy lifting to get established but we have not reached our goals. That s why the theme of our 2014 Annual Meeting is Seeds of Change, because we know we have a lot of growing to do. We look forward to working with you in 2015 and beyond to move our new perspective forward, and create the kind of cooperative we can all be proud of together. Cathy Mahaffey, CEO When I talk to any of my clients, they are so pleased with their insurance with Common Ground! - Independent Insurance Broker, July 17, 2014

4 CGHC Interim Board of Directors Thank you to the volunteers and community leaders that have selflessly given their time to help make Common Ground Healthcare Cooperative a success: Robert Connolly - Chair Co-owner of The James Company, a fund-raising consulting firm for churches and church-related organizations, Mr. Connolly has an advanced degree in social work and spent many years working in community organizing. He serves as the President of Common Ground Healthcare Cooperative and Staff Director to Common Ground. Jim Wesp - Vice Chair Mr. Wesp is a small business owner who has developed and run businesses for 35 years. He is an active member and volunteer for St. Frances Cabrini parish in West Bend. In addition, he is member of the Common Ground healthcare study group and Vice President of Common Ground Healthcare Cooperative.

5 Harry Moseley - Secretary Mr. Moseley has had a long career in the Information Technology side of medical delivery. He retired from Aurora Medical as their Director of Information Services in 2008, however he still consults with them. Prior to this he worked with various hospital and medical companies in the US and Europe in the area of computerized information systems. Michelle Puzin Mooney - Treasurer Ms. Mooney has been long involved in social justice issues, from her early work to provide low cost housing, to her current activities with The Gathering of Southeast Wisconsin and as a Deacon at St. Mark s Episcopal Church, where she is responsible for outreach and Pastoral Programs. T. Michael Bolger, JD Mr. Bolger is President Emeritus of the Medical College of Wisconsin. His faculty appointment at the Medical College is Adjunct Professor of Bioethics. He holds a law degree from Northwestern University and is currently working toward his PHD in Urban Studies from the University of Wisconsin - Milwaukee. Robert De Vita Mr. De Vita, former CEO of CGHC, began a 38 year career as a healthcare executive for academic medical practices in Wisconsin, Virginia and Tennessee, followed by stints in HMO leadership for Blue Cross and Blue Shield in Tennessee as well as chief administrator for Marshfield Clinic in Marshfield, Wisconsin. He is currently a member of the adjunct faculty for the University of Wisconsin - Milwaukee MBA program. Kevin Kane Mr. Kane is a Healthcare Organizer for an affiliate of Families USA, a consumer healthcare advocacy organization. Mr. Kane offers his experience with Marquette Economics Association, legislative work on Capitol Hill during passage of the Affordable Care Act and knowledge of social media communication and health policy. John Meurer, MD, MBA Dr. Meurer is Professor and Director of the Institute for Health and Society as well as directs the Institute/ Pediatrics Primary Care Research Fellowship and the Medical School Health Policy Course at the Medical College of Wisconsin. He is a general pediatric clinician-educator. James Rabbitt Former Director of Government Relations at Cooperate Network and former head of the Wisconsin Bureau of Consumer Affairs, Mr. Rabbitt is an expert in State and Federal regulations regarding healthcare and consumer cooperatives. He has also served as a policy analyst. Theresa W. Tobin Dr. Tobin is an Assistant Professor of Philosophy at Marquette University. She is a specialist in Theoretical and Practical Ethics, Global Ethics and Feminist Ethics. Currently she teaches, among other courses, undergraduate courses in Health Care Ethics and Medical Ethics. Timothy Vellinga, MD Dr. Vellinga is in private practice as a Cardiovascular Interventionist. He is able to practice at numerous hospitals in Southeastern Wisconsin, including Aurora St. Luke s, West Allis Memorial, The Wisconsin Heart Hospital and St. Francis Hospital.

6 2014 July June 2013 June January 2012 Key Milestones December First Annual Meeting and Board Election completed. The CO-OP has nearly 60 employees. October CGHC brings enrollment and billing in-house, to be followed by claims processing. August CGHC opens its Member Services Center in Brookfield, Wisconsin. CGHC renegotiates deal with Xerox to improve several services by bring them in-house, starting with what CGHC feels is most important: Member Services. Cathy Mahaffey is promoted from COO to CGHC s permanent CEO. CGHC has 28 employees. April Open enrollment ends with CGHC more than doubling its projections. January Coverage becomes effective for first CGHC members. October Open enrollment begins. CGHC announces partnerships with Aurora Health Care and Trilogy Health Network to offer consumers a choice of provider networks. March Wisconsin Office of the Commissioner of Insurance grants CGHC its insurance license. CGHC selects Xerox as its Third Party Administrator (TPA) via a competitive bid. Xerox is to provide customer service and administer enrollment, billing and claims processing during CGHC s first three years. March CGHC hires experienced health and insurance leaders as its first staff members, including Bob De Vita as its interim CEO, and Cathy Mahaffey as COO. Over the next few months, CGHC will hire its first eight employees to begin the work of creating an insurance company. February CGHC is named one of the first Consumer Operated and Oriented Plans (CO-OPs) in the United States. CGHC establishes its Interim (Formation) Board of Directors and earlier Volunteers finalize a business plan, feasibility study and competitive application to create CGHC. The mission is to raise the bar on the health insurance market by forcing for-profit insurers to compete against a company focused on the needs of individuals, families, self-employed and small businesses. Affordable Care Act passes with loan dollars included to give Consumer Operated and Oriented Plans (CO-OPs) a start. Volunteers for Common Ground of Southeast Wisconsin identify the rising cost of health insurance as one of the biggest social problems facing communities and small businesses, and vow to find ways to fix the problem.

7 Our Financials Our promise to our members is to meet the highest standards of financial integrity and accountability. Our financials are audited annually by indepedent and certified public accountants working for Baker Tilly. Common Ground Healthcare Cooperative s most recently audited financials are from 2013, prior to the start of our insurance operations. Highlights from the audited report include: 2013 Audited Financial Highlights 2013 Cash Sources Proceeds from Government Loans $23,556,171 Donations 6,800 Investment Income 1,062 Total Cash Sources $23,567, Expenses Salaries, compensation and benefits $ 1,923,315 Professional Fees 1,192,933 Insurance infrastructure 542,626 Depreciation 37,540 Other expenses 627,367 Total Expenses $ 4,323, Net Assets Total Current Assets $23,575,110 Property and Equipment Net 222,679 Total Assets $23,797,789 Current liabilities $ 2,027,793 Long-term Liabilities 27,681,304 Total Liabilities $29,709,097 Net Assets $(5,911,308) I wanted to tell you that I had a really good experience today when I made my first call to the new and improved [customer service representatives]. Wow! I was very impressed with the whole phone system. It s great to know you guys really are a phone call away! - CGHC Member, August 6, 2014

8 What We Stand For MISSION We put our members health and financial wellbeing at the heart of all decisions we make or can influence. VISION For matters we can control: We will work to change health insurance for the better by empowering our members with authority, information and support. We will work with our members to improve their health, wellbeing, security and the affordability of our plans. For matters we can influence: We will be a catalyst for change for the better in the delivery of health care in our community by collaborating with providers and others that support our mission. VALUES We will work to earn the trust of our members and all stakeholders through: Open and honest communication, with an emphasis on listening; Compassion for the needs of our members and support for those that help them; Continual improvement striving for excellence in all services and awareness of what we need to work on; Services and benefits that are responsive to members needs; Financial responsibility and accountability; 100% integrity; and Community partnerships with those that support our mission. Common Ground Healthcare is one of the best things that has happened in my life in a very long time... - CGHC Member, September 10, 2014 CGHC.EO