Blue Cross Complete of Michigan

Nonprofit profile at a glance

EIN
320026448
IRS 990 coverage
2010–2014
Forms available
Form 990 2014
Location
Philadelphia, PA, USA
Phone
2159378000
Rating
74
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Health, General and Financing

Official website

Reported finances

Revenue
$259,648,178
Expenses
$273,512,782
Assets
$95,310,472
Liabilities
$64,443,150

Source: IRS Form 990. Selected filing: tax year 2014. Amounts in USD.

Leadership & pay

9 people listed

Executive titles in this filing

  • NANCY WANCHIK (CEO, PRES &)

Highest reported compensation

  • MARC KESHISHIAN MD (FORMER CMO): $1,652,778 total reported compensation
  • KEVIN JAMES KLOBUCAR (FORMERCEO,PR): $1,612,238 total reported compensation
  • JEFFREY CONNOLLY (VICE CHAIR &): $1,375,155 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2014. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

To provide a health care delivery system.

What it reported doing in 2014

Health care services - member based blue cross complete of Michigan members had 558,594 ambulatory encounters and 33,546 hospital inpatient days.

Operating model

Revenue model
Earned-program. 99% of the money available for current operations came from fees and other program revenue.
Distribution model
Member-benefit provider. The nonprofit used 96% of its reported program spending for member benefits.

The verdict

SUPPORTED - A large share of available resources goes toward mission work and the filed numbers largely add up. A relatively small share of voting board members are independent and expenses are high relative to revenue.

Rating breakdown

  • Financial Efficiency: 80
  • Transparency & Controls: 82
  • Accountability: 56
  • Sustainability: 19
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 91.4%; rating input score 91
  • Program expense ratio: 86.9%; rating input score 87
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 67th percentile among comparable filings
  • Pay-setting controls: 4 of 6 controls in place; rating input score 67
    • Compensation committee: Pass
    • Independent consultant: Pass
    • Other Form 990s reviewed: Missing
    • Written employment contract: Missing
    • Compensation survey or study: Pass
    • Board or committee approval: Pass
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Limited
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 33.3%; rating input score 33; 9th percentile among comparable filings
  • Governance controls: 8 of 9 controls in place; rating input score 89
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: Pass
    • Other executive compensation review process: Pass
    • Form 990 shared with the board: Fail
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Pass
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: -5.3%; rating input score 9; 9th percentile among comparable filings
  • Total-asset coverage ratio: 0.35; rating input score 14; 14th percentile among comparable filings
  • Liabilities to assets ratio: 0.68; rating input score 23; 23rd percentile among comparable filings
  • Officer compensation ratio: 1.3%; rating input score 70; 70th percentile among comparable filings

Growth

  • Program expense growth: 64.3% per year; rating input score 100; 99th percentile among comparable filings
  • Revenue growth: 36.3% per year; rating input score 100; 97th percentile among comparable filings
  • Asset growth: 50% per year; rating input score 100; 99th percentile among comparable filings

Details

  • Where the money goes: 91.4% of revenue deployed · 86.9% of spending went to programs
  • Governance: 1 of 3 board members independent · 8 of 9 filing controls reported
  • Programs: 1 filed program accomplishment · $237.6M in reported program spending
  • Leadership: top reported pay $1.7M · 9 people listed · 4 of 6 pay-setting controls reported
  • Consistency: 17 of 17 current checks pass
  • Schedules: 3 filed schedules · includes executive pay
  • Filing history: 4 filing years from 2010 to 2014
  • Contacts: How to reach this organization
  • Money network: 1 filed money-flow record
  • Related organizations: 5 filed related-organization links
  • Grant readiness: Federal tax and exclusion status, award history, and grant-maker relationships.
  • People: Everyone the filings name, and which of them the filings identify by more than a name.

Key Signals

Signals prioritize questions for review. They are not findings of misconduct.

  • Moderate — Accountability: Independent voting board scored 33/100.
  • High — Sustainability: Operating margin scored 9/100.
  • High — Sustainability: Total-asset coverage ratio scored 14/100.
  • Review — Accountability: Governance controls: Form 990 shared with the board not reported.
  • High — Sustainability: Liabilities to assets ratio scored 23/100.