Form 990 for tax year 2023

Revenue

Part VIII, the statement of revenue.

• 2a · Program service revenue: SUBSCRIPTION REVENUE

  total $1,188,123,001 · related or exempt $1,188,123,001

• 2b · Program service revenue: ADMINISTRATIVE SERVICE

  total $2,195,492 · related or exempt $1,246,641 · unrelated business $948,851

• 3 · Investment income

  total $2,900,712 · excluded $2,900,712

• 6a · Gross rents

  real property $53,542

• 6b · Less rental expenses

  real property $50,329

• 6c · Rental income or loss

  real property $3,213

• 6d · Net rental income or loss

  total $3,213 · unrelated business $3,213

• 7a · Gross sales of assets other than inventory

  securities $78,195,337

• 7b · Less cost or other basis and sales expenses

  securities $77,046,963

• 7c · Gain or loss

  securities $1,148,374

• 7d · Net gain or loss

  total $1,148,374 · excluded $1,148,374

• 11a · Other revenue: EQUITY EARNINGS (LOSS)

  total $11,331,512 · excluded $11,331,512

• 11b · Other revenue: MISCELLANEOUS INCOME

  total $42,879 · excluded $42,879

• 11e · Other revenue, total

  $11,374,391

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $545,960 · program services $545,960

• 5 · Compensation of officers, directors and key employees

  total $4,322,598 · management and general $4,322,598

• 7 · Other salaries and wages

  total $12,174,100 · program services $11,321,913 · management and general $852,187

• 8 · Pension plan contributions

  total $290,936 · program services $270,571 · management and general $20,365

• 9 · Other employee benefits

  total $1,271,481 · program services $1,182,478 · management and general $89,003

• 10 · Payroll taxes

  total $300,572 · program services $279,532 · management and general $21,040

• 11a · Fees: management

  total $24,122,065 · program services $24,122,065

• 11b · Fees: legal

  total -$49,278 · management and general -$49,278

• 11c · Fees: accounting

  total $67,288 · management and general $67,288

• 11f · Fees: investment management

  total $127,307 · management and general $127,307

• 11g · Fees: other

  total $3,179,718 · program services $3,179,718

• 12 · Advertising and promotion

  total $344,548 · management and general $344,548

• 13 · Office expenses

  total $2,340,332 · program services $1,884,677 · management and general $455,655

• 14 · Information technology

  total $1,117,402 · management and general $1,117,402

• 16 · Occupancy

  total $658,825 · management and general $658,825

• 17 · Travel

  total $76,487 · management and general $76,487

• 19 · Conferences, conventions and meetings

  total $45,697 · management and general $45,697

• 22 · Depreciation, depletion and amortization

  total $1,092,890 · management and general $1,092,890

• 23 · Insurance

  total $674,213 · management and general $674,213

• 24a · Other expenses: CLAIMS EXPENSE

  total $1,126,028,242 · program services $1,126,028,242

• 24b · Other expenses: UNREL. BUS. INC. TAX

  total $29,945 · management and general $29,945

• 24c · Other expenses: COMMISSIONS EXPENSE

  total $5,120,389 · program services $5,120,389

• 24d · Other expenses: MEMBERSHIP FEES

  total $1,631,237 · management and general $1,631,237

• 24e · All other expenses

  total $1,324,876 · management and general $1,324,876

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $0 · end of year $41,725,749

• 2 · Savings and temporary cash investments

  beginning of year $58,964,425 · end of year $13,128,922

• 4 · Accounts receivable

  beginning of year $37,857,604 · end of year $35,175,114

• 9 · Prepaid expenses and deferred charges

  beginning of year $1,433,159 · end of year $1,565,189

• 10a · Land, buildings and equipment: cost or other basis

  $18,566,803

• 10b · Land, buildings and equipment: accumulated depreciation

  $13,897,982

• 10c · Land, buildings and equipment, net

  beginning of year $6,566,167 · end of year $4,668,821

• 12 · Investments: other securities

  beginning of year $304,453,486 · end of year $337,836,515

• 15 · Other assets

  beginning of year $22,210,474 · end of year $24,397,856

• 17 · Accounts payable and accrued expenses

  beginning of year $73,485,596 · end of year $74,704,056

• 19 · Deferred revenue

  beginning of year $83,447 · end of year $83,447

• 25 · Other liabilities

  beginning of year $7,530,608 · end of year $6,754,233

• 29 · Capital stock, trust principal or current funds

  beginning of year $0 · end of year $0

• 30 · Paid-in or capital surplus, or land, building or equipment fund

  beginning of year $0 · end of year $0

• 31 · Retained earnings, endowment or other funds

  beginning of year $350,385,664 · end of year $376,956,430

The filer's explanations (Part III)

PART I, LINE 1A

THE ORGANIZATION PAID FOR TRAVEL TO REQUIRED MEETINGS VIA FIRST CLASS COMMERCIAL FLIGHTS FOR CERTAIN EXECUTIVES.

PART I, LINE 5

ALL ELIGIBLE EMPLOYEES MAY PARTICIPATE IN THE EMPLOYEE INCENTIVE PLAN WHICH IS APPROVED BY THE HUMAN RESOURCES AND COMPENSATION COMMITTEE OF THE BOARD. THE PLAN ALLOWS FOR AN INCENTIVE PLAN PAYOUT BASED ON THREE COMPONENTS: THE COMPANY'S FINANCIAL PERFORMANCE, CUSTOMER AND EMPLOYEE EXPERIENCE, AND INDIVIDUAL GOALS. WITHIN THE CALCULATION OF THE COMPANY'S FINANCIAL PERFORMANCE, THERE IS A COMPONENT BASED ON REVENUE AND A COMPONENT BASED ON OPERATING EARNINGS. THE INCENTIVE AMOUNT IS BASED ON THE MATHEMATICAL CALCULATION OF THE RESULTS FOR EACH COMPONENT. FOR 2023, EACH EMPLOYEE'S AMOUNT WAS CALCULATED WITH 75% WEIGHT BASED ON THE COMPANY PERFORMANCE AND 25% WEIGHT BASED ON THEIR INDIVIDUAL PERFORMANCE.

PART I, LINE 6

ALL ELIGIBLE EMPLOYEES MAY PARTICIPATE IN THE EMPLOYEE INCENTIVE PLAN WHICH IS APPROVED BY THE HUMAN RESOURCES AND COMPENSATION COMMITTEE OF THE BOARD. THE PLAN ALLOWS FOR AN INCENTIVE PLAN PAYOUT BASED ON THREE COMPONENTS: THE COMPANY'S FINANCIAL PERFORMANCE, CUSTOMER AND EMPLOYEE EXPERIENCE, AND INDIVIDUAL GOALS. WITHIN THE CALCULATION OF THE COMPANY'S FINANCIAL PERFORMANCE, THERE IS A COMPONENT BASED ON REVENUE AND A COMPONENT BASED ON OPERATING EARNINGS. THE INCENTIVE AMOUNT IS BASED ON THE MATHEMATICAL CALCULATION OF THE RESULTS FOR EACH COMPONENT. FOR 2023, EACH EMPLOYEE'S AMOUNT WAS CALCULATED WITH 75% WEIGHT BASED ON THE COMPANY PERFORMANCE AND 25% WEIGHT BASED ON THEIR INDIVIDUAL PERFORMANCE.

Disregarded entities

Part I: entities that legally are the filer and file no return of their own.

• DDMN ASO LLC

  ADMIN OF DENTAL SERVICE PLANS · MN · income $1,185,298,054 · assets $77,502,477

  Directly controlled by STRATACOR

Related corporations and trusts

Part IV: related organizations taxable as a corporation or trust.

• HEALTH VENTURES NETWORK

  C · VISION COVERAGE · MN · 100% owned · share of income $853,554 · share of assets $1,162,595 · controlled entity

  Directly controlled by STRATACOR

• ABOVA INC

  C · SALE OF DENTAL PRODUCTS AND CONSULTING · DE · 100% owned · share of income $24,604,300 · share of assets $9,155,088 · controlled entity

  Directly controlled by STRATACOR

• TRASKA INC

  C · BEMIDJI BUILDING HOLDING CO · DE · 100% owned · share of income $1,091,856 · share of assets $9,903,132 · controlled entity

  Directly controlled by STRATACOR