From ChamberChoice and Smart Business Pittsburgh As the cost of health care continues to rise, it is crucial for consumers to better understand the actual cost of health care and the need for greater price transparency. “After all, we practice consumerism when it comes to shopping at the grocery store, buying clothes and other products and services. We shop for sales, compare prices, brands and research online with one goal in mind — to find the lowest price and save money,” says Ron Smuch, insurance and benefits analyst at JRG Advisors. Smart Business spoke with Smuch about how employers can encourage price transparency in their health plans. Why isn’t the consumerism that comes so naturally in other areas of our lives used in health care? Understanding the true price of health care can be mind-boggling. Rates and costs can fluctuate depending on your insurance plan and where services are provided. Often, as a patient, we have no idea the total amount we will pay for a test or procedure until we receive the bill from the insurance company. We rely on the assumption that we simply ‘have insurance’ with no consideration or research as to the actual cost of a procedure. Greater price transparency allows consumers to clearly see the price of treatment and determine their out-of-pocket costs before receiving care. The importance of transparency is such that there are several provisions in the Affordable Care Act addressing the issue. Although there are requirements for health plans as to transparency and reporting, there has yet to be full implementation of the law. How else can price transparency lower health care costs? In addition to educating consumers, price transparency in health care can also lower costs for claims payments and common medical services. When consumers are aware of the price for tests, procedures or medications, they pay more attention to treatment options, provider options and the actual need for a given test and whether there is a more affordable option available. Ultimately, known pricing creates smart shopping. Health care cost transparency creates competition, which lowers costs. A 2014 study published in the Journal of the American Medical Association found that allowing patients to access price information for several medical procedures before obtaining health care services could lead to lower health care costs. The study targeted medical claims paid by employers on behalf of their employees after a price transparency tool was made available to them. The costs for employees who utilized the price transparency tool were lowered by 14 percent for lab tests, 13 percent for imaging procedures and 1 percent for office visits, in comparison to employees who didn’t use the tool. The actual dollar savings for those using the transparency tool for imaging procedures equated to a per incident savings of $124.74, $3.45 for lab testing and $1.18 for office visits. What tools are available to help promote price transparency? Price transparency has slowly evolved through the continued popularity of health savings accounts and high deductible health plans in an effort for consumers to lower their health care spending. A person with a high deductible is more likely to be more conscious and concerned about price, which results in their curiosity to inquire about how much things cost. This will likely force medical providers to be more transparent with their pricing. The on-going demand and attention to price transparency in health care has resulted in the development of medical cost savings companies offering price transparency tools that allow a consumer to ‘shop’ the price for medical services in their surrounding area often by zip code and before the time of service. These tools and capabilities are useful to consumers who want to compare prices in order to make more informed decisions about their health care. Price transparency can have a tremendous impact, educating consumers about health care costs and their understanding that more expensive doesn’t always mean better. Furthermore, transparency can lead to a more efficient health care delivery system and curb rising costs.
Since last year’s election and the new executive administration and legislators took their offices in January, one issue that has been discussed but hasn’t necessarily been at the forefront of the daily news is federal tax reform. That issue will likely be front and center soon, as congressional leaders have said they will be taking up the issue soon, and it is also one that when resolved, will likely have an impact on all businesses large and small.
With that in mind, the PA Chamber of Business & Industry will hold a webinar about what businesses should do in preparation for the expected changes to the federal tax code in the next year. The webinar will be held on Friday, Oct. 20, from 11 am – noon. Visit the PA Chamber page for more information or to register. Also, below is the full description of the event (via the PA Chamber).
The Potential Impact of Federal Tax Reform Proposals on Businesses— between the broad outline of the Trump administration tax reform plan and the House Republicans’ “Blueprint” business tax plan, sweeping changes are being discussed for federal tax reform that could have a significant impact on companies, as well as individuals. Indications are that some federal tax reform will become law in late 2017 or early 2018.
While the final outcome is uncertain, businesses should consider taking immediate measures to best position themselves for anticipated changes to the tax code. It’s important not to wait for the legislative process because many opportunities must be implemented, or require significant planning, before tax reform becomes effective. Business decisions made now have a long-term economic impact that could change under tax reform.
The objective of this webinar is to help companies understand the federal tax reform initiatives by providing strategies on what they should be doing now to plan for these reforms. The presentation will be delivered by leading tax professionals from the Stevens & Lee/Griffin platform, including Scott Balestrier, former senior income tax partner at E&Y, KMPG, and Anderson; Jay Wagner, a noted estate tax lawyer; and Joe Harenza, Chairman of Stevens & Lee/ Griffin and CEO of Griffin Financial Group, one of the largest investment banks in the Northeast headquartered outside of NYC. They will discuss:
- A Brief Overview of the Policy Considerations Driving Federal Tax Reform and related timing
- Budget Deficits, Federal Debt, Sluggish GDP Growth
- Less than Competitive Tax System
- Stated Goals of Tax Reform
- Challenges
- Tax Reform: “If” and “When”
- Outline and Analysis of Important Provisions
- Individual Taxes: Income and Estate
- Corporate Taxes, Taxation of Pass-through Entities
- Capital Investment and Interest Expense
- International Issues
- Potential Impact of Tax Reform on M&A, Real Estate and Manufacturing and Industries
- M&A for For-Profit Companies
- Manufacturing
- Other Industries
Also available to provide commentary on the international aspects of tax reform will be Wilfred Muskens, President of Stevens & Lee/Griffin International (SLGI) and Samuel A. McCullough, former Secretary of DCED and Chairman of SLGI.
Al Neuner, Vice President of Facilities Operations for Geisinger, explains the operation of one of the numerous systems used to generate electricity at the Danville campus.
Improving energy efficiencies at your home and business will not only save you money, but also result in a healthier environment. Reducing the demand for traditional power generation lowers emissions of carbon dioxide, sulfur dioxide, and mercury, with tangible health benefits.
Opportunities to improve efficiencies can be as simple as replacing older lighting with LED bulbs to generating electricity on-site at a higher efficiency.
The Keystone Energy Efficiency Alliance and the Chambers for Innovation & Clean Energy recently worked with Geisinger to host a tour of the Danville hospital’s campus to highlight ways companies can become more energy efficient. Through a variety of efforts, Geisinger has lowered its utility costs system-wide about $10 million annually. Utility expenses in 2016 with eight hospitals were lower than in 2010 with four hospitals. The Danville campus has a EPA Energy Star rating of 100%. The benefits of these energy efficiencies are discussed by Geisinger Vice President of Facilities Operations Al Neuner in the short YouTube video below.
A number of the efficiency improvements at Geisinger have been partially funded through Pennsylvania’s energy efficiency law, Act 129. The legislation requires each of the seven Pennsylvania electric distribution companies to reduce energy demand and consumption within its service territory. Utilities meet Act 129 targets by contracting with third party providers to implement programs. Ideas for improving efficiencies at your home or business are available at energystar.gov.
Chamber members enjoyed delicious food and sweets from fellow member Lucy’s Kitchen & Catering and also had an opportunity to go on a tour of Kawneer’s state-of-the-art manufacturing facility in Bloomsburg at September’s Business After Hours last Wednesday, Sept. 20. Those that went on the tour saw Kawneer’s massive plant where thousands of door and window frames, both standard and custom, are made each day. Attendees saw how the raw materials are molded into various shapes and sizes to fit all of the various orders that Kawneer receives from architects and builders all across the world, as well as how the frames are painted, welded and put through an automated production line run by robots.
Of course, in addition to the plant tour and outstanding food, attendees also enjoyed a chance to network with business colleagues and several also won prizes, which were provided by Kawneer and distributed to the winners by the Chamber later in the week. Attendees also were able to take home a puzzle of one of Kawneer’s most interesting and unique building jobs – the Museum at Prairiefire in Winona, Minn., for which Kawneer made all of the custom window and door frames at the Bloomsburg plant, as well as other building materials at other plants.
Business After Hours provide regular opportunities to build business relationships while learning about the services offered by other Chamber members. The next Business After Hours will be co-hosted by the Borough of Danville and SEDA-COG on Wednesday, Oct. 18 in the ballroom of the Danville Borough Hall, 239 Mill St., Danville.
For more photos from last week’s event, check out the Chamber’s Facebook page.
Member News
- First Keystone Bank is lending a hand to support the relief efforts in Texas and Florida due to the recent hurricanes. It is holding collections for the Texas and Miami diaper banks through this Friday, Sept. 29. The goal is to fill a truck with baby items, and the bank will cover costs for the delivery of the items to Texas and Florida. They are currently in need of diapers of all sizes including adult diapers, as well as blankets, bottles, toys, wipes, pull-ups, books and any other baby items. Donations can be made at any one of First Keystone’s 18 branch locations.
- The United Way of Columbia and Montour County held its 2017 Campaign Kickoff event last Tuesday, Sept. 19. Ronn Cort, president and COO at SEKISUI SPI served as the keynote speaker, while Kathy Lowe of Key Partners Realty sponsored the kickoff breakfast. If you or your organization would like more information about running a United Way campaign at your location, please contact campaign coordinator Bryne Lewis at 570-784-3134 or email.
- The Bucknell Small Business Development Center will host a presentation from the Rural Business Innovation titled “Personal Credit Repair & Establishing Business Credit,” on Wednesday, Oct. 4, from 9-11 a.m. at the Bucknell SBDC in the DeWitt Bldg., 416 Market St., Lewisburg. This credit boot camp-type discussion will explore your personal credit, its effects on your business, establishing and keeping good business credit and what all these scores mean. The featured speaker will be John Yoder from the Hutchison Insurance Agency. Cost to attend is $10. Register for either event on the RBI website.
- State Rep. David Millard will host a Senior Caregiver Support Forum on Thursday, Oct. 5, beginning at 6 p.m. at the Central Susquehanna Community Foundation, 725 West Front St., Berwick. Intended for people that help care for aging loved ones, this forum will provide attendees with an opportunity to learn about important resources available to them. It will feature some brief informative sessions, along with a chance to get questions answered. Organizations scheduled to be on hand include the Columbia Montour Aging Office, Commonwealth Home Health and Hospice of Berwick, which is affiliated with Berwick Hospital Center, and an elder law attorney from the Law Office of Lutz & Petty. RSVP to Rep. Millard’s office at 570-759-8734 or on RepMillard.com.
- Geisinger Health will hold its inaugural Dream Big Hot Air Balloon Festival on Saturday, Oct. 7, from 7 a.m. – 5 p.m. at Spyglass Ridge Winery, 400 Plum Creek Rd., Sunbury. Proceeds from this event will benefit Geisinger’s Comprehensive Breast care Program. Activities include balloon rides (weather-permitting), live bands and food trucks, children’s activities and family fun, professional and amateur photo competitions, performances by local dance groups, a fresh food farmers market and family photo sessions in front of the balloons. Admission is free. For more information, read this flyer.
Event organizers are also seeking donations of small items (approx. $10-20 in value) from area businesses and individuals for an auction. If interested in making a donation, please contact Linda Vaji at 570-214-2581 or email.
- Co., a social and professional networking group that is run by the United Way of Columbia and Montour County, will hold a pair of events during October. It will host a networking event on Tuesday, Oct. 10, from 5:30-7 p.m. at the Capitol Bar & Grille, 45 East Main St., Bloomsburg. It will also hold a fun evening at Can You XCape followed by a mixer at the Wagon Shed on Thursday, Oct. 26, beginning at 6 p.m. Co. was founded to give area residents the opportunity to take advantage of all the great things this area has to offer. This group is for everyone, which means any age, ability, or area of residence. It holds multiple events each month. For more information about Co., including future events, visit its Facebook page.
- As part of its 30th anniversary season, the Weis Center for the Performing Arts will celebrate the legacy, tradition and craftsmanship of Martin Guitars with a full day of events on Saturday, Oct. 14.
A Martin Guitar
All of the day’s programming is free except for the 7:30 p.m. performance of the Del McCoury Band. The day includes facilitated workshops including blues slide guitar basics, guitar repair consultations, guitar theory, and a roots music recording session, as well as Martin Guitar displays and merchandise, a community guitar jam, a film screening and panel discussion, and evening performances. Visit here for a complete schedule and description of all events on this day.
- PPL Electric Utilities and its supply chain division is hosting a Diversity Meet and Greet event on Friday, Nov. 17, from 8 a.m. – 4 p.m. at the PPL Conference Center at Walbert, 1639 Church Rd., Allentown. This event is designed for business owners who are veterans, women, minorities, LGBT and disabled, to have an opportunity to find out more about PPL and its opportunities for suppliers. Attendees will have a chance to meet and speak to PPL leaders and the staff that works with suppliers. There is no cost to attend, but those interested in attending should register online by Friday, Oct. 27. For more information, see this flyer.
- PA CareerLink of Columbia/Montour Counties, along with the Innovative Manufacturers Center (IMC), will host a collaborative robot workshop on Monday, Oct. 30, from 9-11:30 a.m. at the Pine Barn Inn, Danville. There is no cost to attend and a light breakfast will be served. Around the world, thousands of robots work collaboratively alongside humans with no safety guards and no problems. Come and learn about universal robots, robot programming, end effector solutions, stands and protective covering, and participate in hands-on activities. Visit online to register or learn more about this event.
- Innotek Computer Consulting will host its annual Technology and Security Expo on Wednesday, Nov. 8 at Sand Springs Country Club, 10 Clubhouse Dr., Drums. This annual event, billed as “Northeast Pennsylvania’s biggest technology and security expo,” brings together IT managers, executives and business owners to discuss the impact of technology and security on business. There is no cost to attend. For more information or to register, visit the event page on Innotek’s website, or the Facebook event page.
- Along with the Bloomsburg University Regional STEM Education Center, the Foundation of the Columbia Montour Chamber will co-sponsor the Future Careers Expo on Thursday, Nov. 9, from 6-8:30 p.m. at the Kehr Union Ballroom on the BU campus. The annual event allows attendees to explore career in science, technology, engineering and math and it open to all students in grades 7-12, as well as their parents. Participants can receive a BU application fee waiver just for attends, and there will also be door prizes for those that sign up. For more information and to register, visit here. For businesses that are interested in participating as vendors, please fill out this form and return it to the email address on the form by Oct. 20. For questions from businesses, please call the Chamber Foundation at 570-784-2522 or email.
The Pennsylvania Department of Health is seeking input from patients and their caregivers on what should be included in the proposed regulations for the state’s new medical marijuana program. The deadline to submit public comments is next Monday, Oct. 2. The draft regulations can be viewed on the PA Dept. of Health’s website. The draft regulations were posted just last Friday, so the public comment period is set for just 10 days. Anyone interested in making comments should go the department’s online form to submit.
Pennsylvania’s medical marijuana was signed into law last year and is expected to be fully implemented in early 2018. The program allows residents of PA that have one or more of 17 medical conditions to access medical marijuana with a prescription. Locally, Green Thumb Industries (GTI) is in the process of setting up a medical marijuana cultivation center in downtown Danville, where it will grow (but not distribute) medical marijuana that will be distributed in other parts of the state. GTI expects its Danville operation to be up and running by the end of the year, and plans to add up to 100 jobs in Danville within the next three years. Earlier this month, it held a job fair and town hall at the Danville Borough building, both of which attracted hundreds of attendees.
From PA Chamber of Business & Industry
The state Senate returned to Harrisburg last week, days after the House passed its version of a non-tax revenue package to pay for the $32 billion General Fund budget that became law on July 10. Senate leaders quickly made it clear that they didn’t support the House’s plan to fill a $2.2 billion revenue gap through one-time transfers, securitization of the Tobacco Settlement Funds and liquor and gaming expansion; and voted 43-7 on Wednesday to non-concur in the legislation.
This makes it all the more likely that the revenue deal will ultimately be decided through a conference committee in the coming weeks. This little-utilized procedural move will form a committee comprised of lawmakers from both chambers to reach consensus on a revenue plan that will then be voted up or down in the House and Senate. The need for them to act has hastened quite a bit, as the Commonwealth was met with the unwelcome news last week that credit rating agency Standard & Poor’s downgraded the state to an A+ rating; which is only better than two other states well known known for their financial problems – Illinois and New Jersey. According to S&P, among the reasons for Pennsylvania’s downgrade were a “misalignment” of revenues and expenses in the 2016-17 fiscal year that triggered the current deficit; failure to finalize the revenue package for the $32 billion budget that became law in July; and state Treasurer Joe Torsella’s decision to stop extending a line of credit to pay the state’s bills, which has resulted in missed payments due to cash flow problems.
Following the Senate’s non-concurrence vote last Wednesday, the chamber recessed to the call of the President Pro Tempore (a six-hour call) meaning that they will be ready to return to the Capitol should a revenue resolution be reached.
Under the Affordable Care Act (ACA) “grandfathered plans” are group health plans (or health insurance coverage) that were in existence on March 23, 2010, and have not undergone certain prohibited design changes since then. Those prohibitions, in summary fashion, are: an elimination of benefits, an increase in percentage cost-sharing requirements, and an increase in a fixed amount cost-sharing requirement other than a co-payment (with some limitations) or a decrease in employer contributions by more than 5% of its established contribution on March 23, 2010.
Needless to say, not many grandfathered plans remain. In the Kaiser Health Organization 2016 Employer Benefit Survey it was noted that only 23 percent of employers nationally, maintain at least one grandfathered benefit option. Grandfathered plans are excused from some of the requirements under the ACA, such as coverage of preventive health services without any cost-sharing and the expanded appeals process and external review.
However, they still must comply with other provisions, including: (1) provide a uniform explanation of coverage, (2) report medical loss ratios and provide premium rebates if medical loss ratios are not met, (3) prohibit lifetime and annual limits on essential health benefits, (4) extend dependent coverage to age 26, (5) prohibit health plan rescissions, (6) prohibit waiting periods greater than 90 days, and (7) prohibit coverage exclusions for pre-existing health conditions.
Employers of grandfathered plans have a notice requirement where the plan must provide, in any plan materials describing benefits for participants or beneficiaries, (a) a statement that the plan or coverage is believed to be a grandfathered plan, and (b) contact information for questions or complaints. Failure to provide this notice can result in loss of grandfather status. Another condition of retaining grandfather status is that as long as the status is asserted documentation must be maintained to show that the coverage in effect as of March 23, 2010 has not made any of the prohibited changes. This requirement reinforces the importance of a plan sponsor having and keeping an updated plan document, which must be available for review upon request. Grandfathered status can be maintained indefinitely as long as no prohibited plan changes are made, however, once lost, it cannot be regained.
In contrast, the ACA did not make any particular allowances for individual and small group plans that became effective after March 23, 2010. It was expected that these plans would terminate at the end of 2013 and be replaced with ACA compliant coverage. However, due to multiple problems for small groups with ACA implementation, the Department of Health and Human Services (HHS) issued transitional relief that allowed states to permit non-grandfathered plans to renew their pre-ACA plans.
Therefore, a “grandmothered plan” (also referred to as a transitional health policy) is a non-grandfathered health plan that is subject to a HHS transition policy. This policy allows insurers to extend coverage which are free from certain ACA reforms, basically, they are non-compliant plans. The main insurance market reforms to which grandmothered plans are not required to comply are the premium rating rules, guaranteed availability and renewability and the requirement to provide the ten Essential Health Benefits.
Originally issued in 2013, transition relief for grandmothered plans has been extended several times with the most recent extension permitting insurers that have continually renewed grandmothered plans since January 1, 2014, to renew such coverage again for any policy year beginning on or before Oct. 1, 2018 (However, the insurance policies must not extend past Dec. 31, 2018). As a reminder whether a plan can be grandmothered is governed by state insurance law, and not all states have adopted the transitional relief. Additionally, an insurer that renews a grandmothered plan is required to provide an annual notice explaining the right to retain existing coverage to affected individuals and small businesses.
Conclusion
If you have a grandfathered plan you can keep it indefinitely, as long as your plan does not make any of the certain prohibited plan design changes which causes the loss of grandfather status. Likewise, if you have a grandmothered plan, you can keep it (at least in Pennsylvania) through Dec. 31, 2018. You should continue to stay updated on the status of the ACA and how your grandfathered or grandmothered plan can be affected.
From Williams
Thanks to the tireless efforts of its supporters during the regulatory process, Williams is pleased to announce that on Sept. 15 the Federal Energy Regulatory Commission (FERC) issued a Notice to Proceed for Atlantic Sunrise mainline pipeline construction. Atlantic Sunrise is a nearly $3 billion investment that will boost Pennsylvania’s economy and expand access to abundant, affordable natural gas.
Williams has worked closely with permitting agencies, including FERC, Pennsylvania Department of Environmental Protection (PA DEP) and U.S. Army Corps of Engineers to minimize environmental and community impacts, including making modifications to more than half of the originally proposed pipeline route. Project developers have also partnered with environmental organizations to generate approximately $2.5 million for conservation projects located within the project area.
Atlantic Sunrise is estimated to support 8,000 jobs and inject a $1.6 billion economic impact in the project area during construction, including an estimated $85.5 million in Columbia County and surrounding areas. Local businesses have the opportunity to directly benefit from this economic activity with the exciting, new WILLShop Local App, designed to connect our workforce with local businesses and services. Members can sign up for free to be listed on this app, which is designed to help workers from out of town find the services they need while in town working on the project.
After the approximately one-year construction phase, Atlantic Sunrise will provide enough natural gas to support the daily energy needs of seven million homes. To learn more, read this press release about the construction plans and timeline.
The Atlantic Sunrise outreach team and everyone at Williams thanks all of those that supported the project.
Did you know that turtles can swim in lava and have feelings? The 2017-18 class of the Leadership Central Penn program learned that and much more on Wednesday, Sept. 20, when the group traveled to the Quest Team Building area at Bloomsburg University, where 20 strangers got closer than any could have imagined while solving problems and completing tasks. Leadership Central Penn is sponsored by Bloomsburg University, Kawneer, SEKISUI SPI and USG.
This year’s class is comprised of 20 professionals from three nonprofits and 11 companies – including Chamber members PPL Electric Utilities, Geisinger, SEKISUI SPI, Service 1st Federal Credit Union, First Keystone Community Bank, Autoneum North America, Bloomsburg University, Kawneer, Girton Manufacturing and First Columbia Bank. Other class members are from nonprofits the Hope Center, For the Cause and the Columbia Montour Chamber.
So how do you get such a dynamic group to learn names, professional and personal strengths, and weaknesses – all in a single day? You have the group work a ship in rough seas, flip a capsized life raft (actually a tarp) while all standing on it, race across a lava field (actually imaginary lava on a grass field) on the backs of turtles (actually small squares of plywood), build a house out of rope, and realize that personal space is definitely not part of team building. The group was separated into teams to use their individual skills collectively to solve a variety of problems such as these, each with its own complexities and requirements for an array of talents. Balance, strength, endurance, problem solving, listening, leading, and following was all needed through the day. At times, these were all needed simultaneously to ensure success on tasks. By the end of the day, the group was hot and tired, but also smiling and grateful.
During break, the group was challenged to a couple of riddles, and left at the end of the day wondering what a person who pushes their car into a hotel and says “I’m broke and out” could possibly mean. One thing everyone knew for sure was that they were in this program together, and better off because of it.
Individuals learned who in the group were doers, thinkers, influencers and relaters. They deduced what that means for success in professional endeavors and what each group’s strengths bring to organizational success. At the end of the day there were no losers, and everyone won the day. At the debrief, words like “team” and “family” were used by individuals to describe how they felt about these former strangers.
Here are some additional photos from the day via the Chamber’s Facebook page.