Form 990 for tax year 2023

Revenue

Part VIII, the statement of revenue.

• 2a · Program service revenue: ENROLLEE FEES

  total $10,888,167 · related or exempt $10,888,167

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

  other assets $141

• 7c · Gain or loss

  other assets -$141

• 7d · Net gain or loss

  total -$141 · excluded -$141

• 11a · Other revenue: MISCELLANEOUS

  total $54,723 · related or exempt $54,723

• 11e · Other revenue, total

  $54,723

Functional expenses

Part IX, the statement of functional expenses.

• 7 · Other salaries and wages

  total $6,728,459 · program services $6,728,459

• 9 · Other employee benefits

  total $2,121,931 · program services $2,121,931

• 11g · Fees: other

  total $129,614 · program services $129,614

• 13 · Office expenses

  total $153,266 · program services $153,266

• 14 · Information technology

  total $1,064 · program services $1,064

• 16 · Occupancy

  total $1,182,467 · program services $1,182,467

• 17 · Travel

  total $96,424 · program services $96,424

• 19 · Conferences, conventions and meetings

  total $694 · program services $694

• 22 · Depreciation, depletion and amortization

  total $65,396 · program services $65,396

• 24a · Other expenses: MEDICAL SUPPLIES

  total $168,984 · program services $168,984

• 24b · Other expenses: DUES AND SUBSCRIPTIONS

  total $22,279 · program services $22,279

• 24c · Other expenses: EDUCATION & TRAINING

  total $4,813 · program services $4,813

• 24d · Other expenses: MEALS & ENTERTAINMENT

  total $1,191 · program services $1,191

• 24e · All other expenses

  total $53,160 · program services $53,160

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  end of year $22,383

• 4 · Accounts receivable

  beginning of year $38,564 · end of year $113,438

• 9 · Prepaid expenses and deferred charges

  beginning of year $85,285 · end of year $26,794

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

  $2,217,279

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

  $2,101,018

• 10c · Land, buildings and equipment, net

  beginning of year $130,851 · end of year $116,261

• 15 · Other assets

  beginning of year $52,562,558 · end of year $63,687,424

• 17 · Accounts payable and accrued expenses

  beginning of year $57,728 · end of year $14,778

• 25 · Other liabilities

  beginning of year $60,574,179 · end of year $71,553,164

• 27 · Net assets without donor restrictions

  beginning of year -$7,814,649 · end of year -$7,601,642

The filer's explanations (Part III)

PART I, LINE 3

THE ORGANIZATION RELIED ON COMMONWEALTH CARE ALLIANCE, A RELATED ORGANIZATION, THAT USED ONE OR MORE OF THE METHODS TO ESTABLISH THE TOP MANAGEMENT OFFICIAL'S COMPENSATION.

PART I, LINE 4B

COMMONWEALTH CARE ALLIANCE, A RELATED ORGANIZATION, PROVIDES MR. PALMIERI WITH A LONG-TERM BENEFIT, WHICH IF EARNED IN FULL HAS A TARGET VALUE OF $450,000. MR. PALMIERI IS ENTITLED TO PAYMENTS UNDER THIS AWARD PURSUANT TO A VESTING SCHEDULE WHICH COMBINES BOTH TIME AND PERFORMANCE BASED TARGET. UNDER THIS AWARD, MR. PALMIERI RECEIVED $112,500 IN NOVEMBER 2023, PROVIDED THAT HE WAS EMPLOYED AS CCA'S CEO AT THE TIME OF PAYOUT. THE REMAINING AMOUNT OF THE AWARD IS SUBJECT TO ACHIEVEMENT OF LONG-TERM PERFORMANCE GOALS WHICH WERE SET BASED ON THRESHOLD, TARGET AND MAXIMUM CRITERIA BY THE BOARD IN ADVANCE. THE FINAL TRANCHE VESTED ON NOVEMBER 3, 2023 AND MR. PALMIERI WAS PAID AN AMOUNT BASED ON ACHIEVEMENT OF THE PERFORMANCE GOALS. ON DECEMBER 1, 2023, MR. PALMIERI WAS PAID $281,250 (LESS APPLICABLE TAX WITHHOLDING) UPON VESTING OF THE FINAL TRANCHE UNDER THE 2020 LONG TERM INCENTIVE. THE CEO PARTICIPATES IN THE COMMONWEALTH CARE ALLIANCE SUPPLEMENTAL EXECUTIVE RETIREMENT PROGRAM (SERP), A NONQUALIFIED DEFERRED COMPENSATION PLAN EFFECTIVE JANUARY 1, 2022. $154,710 WAS CONTRIBUTED TO THE PLAN IN 2023 AND HAS BEEN REPORTED IN PART II, COLUMN (C) AS DEFERRED COMPENSATION. THE CEO ALSO PARTICIPATES IN AN DEFINED BENEFIT PLAN IN WHICH $566,000 WAS CONTRIBUTED IN 2023 WHICH IS REPORTED IN PART II, COLUMN C. CERTAIN OFFICERS AND KEY EMPLOYEES PARTICIPATE IN THE COMMONWEALTH CARE ALLIANCE EXECUTIVE RETENTION PLAN, A NONQUALIFIED DEFERRED COMPENSATION PLAN WHICH IN 2020 WAS OFFERED TO CERTAIN MEMBERS OF THE EXECUTIVE LEADERSHIP TEAM AND SUBSEQUENTLY OFFERED TO NEWER EMPLOYEES. PAYMENTS WILL BE MADE TO THE EXECUTIVE ONLY IF THE EXECUTIVE STAYS WITH THE ORGANIZATION THROUGH THE FIVE-YEAR VESTING PERIOD AS THE PRIMARY PURPOSE OF THIS PLAN IS TO PROVIDE FOR THE RETENTION OF THE PARTICIPANTS. THE MARKET FOR EXECUTIVE TALENT IN THIS COUNTRY IS FIERCELY COMPETITIVE AND WE RECRUIT INDIVIDUALS FROM ACROSS THE COUNTRY AND FROM VARIOUS INDUSTRIES. DUTIES ARE BOTH EXTENSIVE AND COMPLEX AND REQUIRE SUBSTANTIAL AND DIVERSE EXPERIENCE AND SKILL SETS TO EXECUTE SUCCESSFULLY. PAYMENTS WILL BE MADE AT THE END OF A FIVE-YEAR PERIOD BASED ON ROLLING EFFECTIVE DATES IN AN AMOUNT EQUAL TO 90% OF THE EXECUTIVE'S BASE SALARY AS OF THE END OF THE YEAR PRIOR TO PAYOUT. ELIGIBLE PARTICIPANTS HAVE 18% OF THEIR SALARY ACCRUED FOR EACH YEAR FOR THE FIVE-YEAR PERIOD. CERTAIN EXECUTIVES PARTICIPATE IN THE EXECUTIVE SERP PLAN. ELIGIBLE PARTICIPANTS HAVE 15% OF THEIR SALARY ACCRUED FOR EACH YEAR WITH A FIVE-YEAR VESTING PERIOD. IN 2023, 15% OF BASE SALARY FOR ELIZABETH GOODMAN WAS ACCRUED AND HAS BEEN INCLUDED AS DEFERRED COMPENSATION IN (SCHEDULE J, PART II, COLUMN C).

Related partnerships

Part III: related organizations taxable as a partnership, with the filer's share.

• VOICE CARE TECH HOLDINGS LLC

  HOLDING COMPANY · MA

• CCA ACO LLC

  MEDICARE SHARED SAVINGS PROGRAM ACO · MI

• RELIANCE NEXT GEN ACO LLC

  MEDICARE FEE FOR SERVICE NEXGEN ACO · MI

Related corporations and trusts

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

• COMMONWEALTH CARE ALLIANCE MASSACHUSETTS INC

  C · MEDICARE ADVANTAGE PRODUCTS · MA

• COMMONWEALTH CARE ALLIANCE RHODE ISLAND INC

  C · MEDICARE ADVANTAGE PRODUCTS · MA

• COMMONWEALTH CARE ALLIANCE INDIANA LLC

  C · MEDICARE ADVANTAGE PRODUCTS · IN

• COMMONWEALTH CARE ALLIANCE MICHIGAN LLC

  C · HOLDING COMPANY · MI

• CCA HEALTH MICHIGAN INC

  C · MEDICAL SERVICES TO PERSONS IN MICHIGAN · MI

• CCA PO INC

  C · PHYSICIAN CONTRACTING ORGANIZATION · MI

• COMMONWEALTH CARE ALLIANCE CALIFORNIA LLC

  C · HOLDING COMPANY · CA

• CCA HEALTH PLANS OF CALIFORNIA (FKA VITALITY HEALTH PLAN OF CALIFORNIA INC)

  C · ARRANGES FOR HEALTHCARE SERVICES TO MEDICARE BENEFICIARIES · CA