From ChamberChoice Under the Affordable Care Act (ACA) taxpayers are required to maintain what is considered “minimum essential coverage” (MEC) health care for themselves, their spouses and dependents, as applicable. Failure to maintain MEC during any month in the year (with limited exceptions) exposes a taxpayer to a “shared responsibility” penalty. Because the tax penalty has the effect of requiring individuals to have health coverage, this aspect of the ACA is commonly referred to as the “individual mandate.” Additionally, the ACA requires that an Applicable Large Employer (ALE) offer its full-time employees and dependents minimum essential coverage. That coverage must also provide minimum value and be affordable for the full-time employee. If the employer does not meet this responsibility, and a full-time employee receives subsidized coverage from the Marketplace, then the employer may be assessed a penalty. The amount of the penalty will depend on whether the offer of MEC was met (it must be offered to 95 percent of full-time employees and dependents), and whether the coverage offered was affordable minimum value. This penalty is referred to as the “employer mandate.” The Internal Revenue Service is the agency that is responsible for the enforcement of both mandates. Individual Mandate For individuals who were covered with minimum essential coverage in 2015, coverage providers began providing individuals with a Form 1095-B or 1095-C in 2016. This information was also provided to the IRS as assistance with the administration and enforcement of the individual mandate. These forms are required to be provided every year in January as long as the ACA is in effect. Taxpayers use the information from a Form 1095-B or 1095-C to indicate on their 1040 tax filing whether they and everyone on their returns had health coverage, were exempt from the health coverage requirement, or are making a penalty payment. In response to President Trump’s executive order telling agencies to exercise authority and discretion to reduce potential burdens under the ACA, the IRS accepted 2017 tax returns, regardless of whether the health coverage information was or was not provided. Thus, the tax filing process may have been delayed, but it was not rejected. In mid-October, the IRS stated that for the 2018 tax filings, electronic taxpayer returns that do not indicate meeting the ACA health coverage requirements or are not paying the penalty will be rejected. If a taxpayer files a paper return, the IRS provides it could suspend processing of the return and delay any taxpayer refund if the filing omits information addressing the individual shared responsibility. Employer Mandate As to the employer mandate, the IRS has confirmed that employers are still subject to the mandate and compliance is expected. There are indications that the IRS will begin mandate enforcement and will begin issuing penalty notices. Take note, “indications” does not mean a confirmed statement from either the IRS or
the Administration. As a reminder, an ALE’s ACA reporting obligation requires that it must provide its full-time employees a Form 1095-C by Jan. 31 of every year. The employer then files a Form 1094-C with the IRS attaching copies of the 1095-C distributed to employees. In 2016, the IRS sent letters notifying employers that they may be noncompliant with their ACA reporting obligations. This communication gave employers the opportunity to either file their ACA returns late, or provide further information to the IRS. However, receipt of a letter, or actually not receiving a letter, was not a determination that the employer would, or would not be penalized. Conclusion The IRS’ guidance on the collection of information under the individual and employer mandates is a reminder that the Affordable Care Act is still a viable law and requires compliance. The ultimate enforcement
of the ACA mandate provisions by the agency remains to be seen and probably relies on further Administration guidance. In the meantime, employers should continue their ACA compliance strategy in order to avoid possible penalties. If that strategy consisted of not complying with the mandate, then a possible strategy review may need to be considered.
Panelists at the recent community health insurance forum included (L-R); Craig Pritts, ChamberChoice; Craig Shively, Geisinger Health Plan; Sandy Darlington, Columbia Montour Area Agency on Aging; and Mark Middlebrook, PA Health Access Network.
As evaluating and selecting health insurance in today’s ever-changing environment is confusing, resources exist to help individuals and businesses choose the best option. At a recent community forum co-sponsored by the Chamber, panelists advised people on the marketplace to reevaluate their coverage. This year’s timeline for making changes is considerably shorter than in previous years, as open enrollment ends Dec. 15.
Recent changes to the Affordable Care Act are significantly impacting health insurance marketplace rates, particularly with silver-level plans, according to the panelists. In some cases, gold-level plans with better benefits can be competitive with silver plans. Group plans have also seen smaller annual increases, compelling small business owners to revisit the overall affordability of having an employer-sponsored plan.
The forum, held Nov. 15 at The Greenly Center, was co-sponsored by the United Way of Columbia and Montour County. Panelists included representatives of Geisinger Health Plan, the Columbia Montour Area Agency on Aging, the PA Health Access Network, and ChamberChoice, the Chamber’s member benefits program. The PA Health Access Network offers the services of free navigators to help individuals register and enroll with the marketplace. ChamberChoice agents can also help individuals select plans and work with members to set up group plans for employers, including health savings accounts and flexible spending accounts. Certified counselors at the Agency on Aging can work with anyone of any age who is eligible for Medicare. Geisinger Health Plan has local representatives to help individuals and businesses understand their options on and off the marketplace.
Recently, President Trump declared the opioid epidemic a national public health emergency, which is touching all socioeconomic classes. From a legislative perspective, one strategy for addressing the crisis would be to implement a prescription drug formulary in Pennsylvania’s workers’ compensations system, which would streamline medication prescriptions to help patients avoid the overuse that can result in addiction. In doing so, it is also expected to lower rising costs within the workers’ compensation system – as has been proven in other states like Ohio, where the number of opioid prescriptions dropped by 38 percent and the number of opioid-dependent WC patients was reduced by half just three years after their formulary was adopted.
Over 70 chambers from across Pennsylvania, including the Columbia Montour Chamber, are supporting House Bill 18 and Senate Bill 936, which would create a drug formulary. A letter was sent to members of the General Assembly in mid-November. S.B. 936 recently cleared the Senate with bipartisan support and the House is expected to consider the legislation in the few session days remaining this year.
Organizations and individuals are also encouraged to contact their state representative and urge them to support S.B. 936. Tell them that drug formularies are common across other state workers’ compensation systems, private healthcare and public programs like Medicare and the Children’s Health Insurance Program; and have been shown to help address overuse of and addition to prescription drugs among injured workers in the states that adopt these policies.
More than 400 businesses and organizations belong to the Chamber to receive benefits and support efforts to strengthen their businesses and our region. Increased membership allows us to offer additional programs and benefits, have a stronger voice in advocacy and be involved in more activities and initiatives in our communities. The Chamber welcomes its newest members, four McDonald’s franchise locations in and around Columbia County, to help us fulfill our mission.
The McDonald’s in Bloomsburg, Berwick, Mifflinville and Elysburg are all owned by franchisee R&K Foods of PA, and we welcome all four locations as our newest members in the Chamber. These locations in and around Columbia County are just four of the more than 36,000 McDonald’s restaurants around the world, more than 80% of which worldwide and nearly 90% of which in the United States, are owned and operated by approximately 5,000 independent small and mid-sized businessmen and women as franchises. The McDonald’s in Bloomsburg recently debuted a new touch-screen kiosk that allows customers to place their own orders, which can then be brought directly to their table. The McDonald’s in Bloomsburg is located at 945 New Berwick Highway (Rt. 11), and can be reached at 570-784-3906. McDonald’s in Berwick is located at 10 Briar Creek Plaza, right in front of Giant and across the street from Sheetz just off Route 11, and can be reached at 570-752-2729. McDonald’s in Mifflinville is located at 435 West 3rd St., just off exit 242 on I-80 and can be reached at 570-752-4333. McDonald’s in Elysburg is located at 1 W Valley Ave (Rt. 487), right next to Sheetz and can be reached at 570-672-2890.
McDonald’s in Elysburg
McDonald’s in Mifflinville
McDonald’s in Berwick
McDonald’s in Bloomsburg
Member News
- Longstanding local retail floral owner Todd D. Wagner enthusiastically announced the acquisition of the assets of Ralph Dillon’s Flowers on Nov. 13. Dillon’s customer base both locally and out of the area will be serviced by Bloomsburg Floral and Berwick Floral from the headquarters at 201 W. 2nd St., Berwick.After the passing of Ralph Dillon, Jr. earlier this year, the retail location of Ralph Dillon’s Flowers at 254 East St., Bloomsburg, was closed as they searched for a potential buyer or partner to continue the operation. Effective Nov. 13, an agreement was reached with Dillon’s family giving Wagner the authority to service all existing customers of the operation.Ralph Dillon’s Flowers was an institution in Bloomsburg for decades and served their customer base with quality products and outstanding customer service. Wagner entered the retail floral business in 1996 with the purchase of Bloomsburg Floral Center and then acquired Berwick Floral Center and The Flower Station in Benton. In 2013, Wagner expanded his Berwick operation with the purchase of the Nardi Funeral Home building at 201 W. 2nd St., Berwick, where he opened The Shoppes at Woodin Place, which houses his floral and gift establishment, Autumn’s Haven, Suntex Dry Cleaners and a host of other consignment vendors. Berwick Floral hosted a Chamber Business After Hours last week.
- Secret Agent 23 Skodoo will bring its unique kid-friendly hip-hop to the Weis Center for the Performing Arts on Tuesday, Dec. 5 at 7 p.m.
Secret Agent 23 Skidoo
The performance is free and tickets are not required. More Fraggles than Wiggles, more Soul Train than Thomas the Train, Secret Agent 23 Skidoo is equal parts Dr. Seuss and Dr. Dre. This Grammy-winning artist combines the excitement of hip-hop with the magical world of childhood. With sophisticated instrumental funk and positive, witty wordplay, he has earned a loyal national following. His latest album, Infinity Plus One, took home the Grammy Award for Best Children’s Album of the Year.
- The Northeastern Pennsylvania Industrial Resource Center (NEPIRC) will hold the third and final part of a three-part series on supply chain leadership and strategy on Wednesday, Dec. 6, at the NEPIRC Training Center, 75 Young St., Wilkes-Barre, from 8:30 a.m. – noon. The session is free, and is entitled “Competition is no Longer Between Companies – it is Between Supply Chains.”
- Dr. David Hamilton of Hamilton Dental Care and president of the The Jubilate Choir and Orchestra, is pleased to announce The Jubilate Choir and Orchestra’s Annual Christmas Concert, A Holy Night of Angels, will be on Saturday, Dec. 9 at 7 p.m. and Sunday, Dec. 10 at 3 p.m. The choir and orchestra, under the direction of Dr. Alan J. Hack, is made up of community singers and instrumentalists along with Mrs. Kathy George accompanying on the piano. It invites all to join them at St. Matthew’s Lutheran Church, 123 Market St., Bloomsburg for this exciting concert, a high point of the Christmas season celebration in our area!
By Fred Gaffney, President, Columbia Montour Chamber
The Saturday after Thanksgiving has become known as Small Business Saturday, thanks to a campaign started by the American Express credit card company in 2010 to encourage holiday shopping at small businesses. Indeed, small businesses should be patronized and celebrated, but not just one day a year. The vibrancy of our communities is dependent upon people supporting local businesses all year long.
When you spend money locally, more of that money stays in our area. Your dollars support local jobs. Those businesses pay local taxes, and contribute back to the community in other ways. Local businesses support non-profit organizations, youth sports, and cultural activities that enhance our quality of life. The parades, festivals, and visits with Santa that will help us get into the holiday spirit in the coming days are possible thanks to the support of local businesses.
Online shopping may provide endless options and convenience in checking items off your list, but think about the value of talking with someone in a store when trying to find a special gift, or how much you appreciate dining options when you need a break from that shopping. Local businesses also provide the choice and customer service that we often take for granted. They also are an important part of what makes our area a great place to live.
Contact the Chamber of Commerce if you need ideas on how you can support local businesses this holiday season, and throughout the year. The Chamber offers special gift certificates in any amount that can be redeemed at any local business during the year. They can be purchased at the Chamber office at 238 Market St. in downtown Bloomsburg.
From PA Chamber of Business & Industry
Last week, the U.S. House voted mostly along party lines – 227 to 205 – in favor of the “Tax Cuts & Jobs Act” – H.R. 1 – which aims to make significant updates to the Federal Tax Code for the first time in more than 30 years. Every member of Pennsylvania’s GOP Congressional delegation voted in the affirmative on the legislation. The U.S. Chamber is leading the charge in urging Congressional passage of federal tax reforms that would simplify the current, burdensome Tax Code; lower federal tax rates to improve the nation’s ability to compete; allow for the expense of capital investments to help free up a company’s cash flow and move to a territorial tax system, among other changes. All told, H.R. 1 would cut taxes by more than $1.4 trillion over the next decade.
The PA Chamber has joined the U.S. Chamber and more than 100 chambers of commerce nationwide in sending letters to Congress, calling on them to pass the legislation because it would improve America’s competitive edge, help to grow the domestic economy and improve our global standing.
Following the House’s action on H.R. 1, the PA Chamber issued a press release calling on both chambers to act quickly and get a federal tax reform package to President Trump’s desk by the end of the year. Two letters recently sent to Washington, D.C. also communicate the PA Chamber’s support for tax reforms – first, to the state’s congressional delegation urging support for a Main Street lending initiative that will help small business growth; and second, to the Commonwealth’s U.S. Sens. Toomey and Casey urging them to support the Tax Cuts & Jobs Act. The U.S. Senate Finance Committee (on which both Toomey and Casey serve) advanced its own version of a tax reform plan late last week, which could be taken up by the full Senate after the Thanksgiving holiday. Toomey voted ‘yes’ on the Senate bill, while Casey voted in the negative.
“The U.S. House and Senate’s approval of their respective tax bills are critical steps toward the ultimate goal of reforming our federal tax structure,” PA Chamber President Gene Barr stated. “The PA Chamber looks forward to working with our elected officials as the bills move through the legislative process and work begins on a final compromise.”
The Columbia Montour Chamber has not yet taken a position on the House’s tax bill.
From ChamberChoice
PCORI fees, which are used to fund research on patient-centered outcomes, apply to plan and policy years ending before Oct. 1, 2019. The function gives the fee its name, the Comparative Effectiveness Research Fee (sometimes referred to as “CER fees” or “PCORI assessment”). Insurers pay this fee for a fully-insured plan with the cost being built into the premium. Self-insured plan sponsors are responsible for the payment and filing of the fee.
The amount of the fee is adjusted each year for inflation. On Oct. 6, 2017, the Internal Revenue Service issued IRS Notice 2017-61 providing that the PCORI fee will increase by 13 cents.
Fees and Form
The fee is based on the average covered lives for the applicable 12-month policy or plan year. As a reminder, if an employer’s ERISA plan year is different than their policy year, then the ERISA plan year is used for calculating the fee. CER/PCORI fees are due by July 31, 2018 for 2017 calendar plan years and for plan years ending on or after Oct. 1, 2016 and before September 30, 2017.
• For 2017 calendar plan years, employers must pay a $2.39 per average covered life fee by July 31, 2017.
• For plans ending on or after October 1, 2016 and before Sept. 30, 2017, employers must pay a $2.26 per covered life fee by July 31, 2018.
Plan fees must be paid via IRS Form 720 Quarterly Federal Excise Tax Return annually, a plan sponsor will report and pay the fee on the second quarter Form 720.
Counting Lives
There is a special rule for the PCORI fee when coverage is provided under multiple self-insured health plans:
• Generally, separate fees apply for lives covered by each specified health insurance policy or applicable self-insured health plan.
• However, two or more applicable self-insured health plans may be combined and treated as a single applicable self-insured health plan for purposes of calculating the PCORI fee but only if the plans have:
o The same plan sponsor; and
o The same plan year.
For example, if amounts in an HRA may be used to pay deductibles and copays under a fully insured health policy, the HRA (an applicable self-insured health plan) and the policy would be subject to separate PCORI fees.
However, an HRA that may be used to pay deductibles and copays under an applicable self-insured health plan is not subject to a separate fee (and the fee will apply only to the applicable self-insured health plan) if both the HRA and the applicable self-insured health plan have the same plan sponsor and the same plan year.
Conclusion
The PCORI fee is not payable until July 31 of next year. However, as employers budget for the new year, the 13 cents per average covered life increase recently published by the IRS needs to be taken into consideration. JRG will publish a reminder of the fee and additional information as the July 31, 2018 due date nears.
Pennsylvania’s Office of International Business Development (OIBD), part of the Department of Community & Economic Development, regularly receives economic development lead opportunities from its authorized international representatives concerning businesses that have expressed interest in locating in, investing in, trading with, contracting with, or partnering with businesses located in PA.
Visit DCED’s website to view the latest opportunities from international companies interested in working with a Pennsylvania-based company. If you or your partner(s) are interested in learning more, please use the contact information at the end of this email to send your request for consideration. All information received will be kept confidential.
Please follow this simple process first for any potential leads before sending inquiries to OIBD for consideration:
- Contact your local company to confirm they are interested in initiating the conversation.
- Once confirmed, provide Cindy Hostetler at OIBD with the proper company/contact information.
- OIBD will then confirm with the international client that they are interested in initiating the conversation and will schedule the introductory conference call, including the local EDC when possible.
OIBD will make every effort to include the local EDC and/or referring contact in any and/or all forward movement with the potential prospect(s).
For information about the available opportunities and/or to be added to the email list, please contact:
Cindy Hostetler, International Marketing Executive
Office of International Business Development
Commonwealth Keystone Building
400 North Street, 4th Floor | Harrisburg, PA 17120-0225
Phone: 717.720.7370 | chostetler@pa.gov
Please submit any potential partner information as follows:
- Company Name, Address
- Phone, Fax, Email
- Website URL
- Principal Contact Name, Title
- Principal Contact Office Phone, Cell Phone, Email
- Project ID: JV####
All information received will be kept CONFIDENTIAL and should be sent to the OIBD contact listed above for consideration. These companies plan Pennsylvania visits when suitable partners are identified.
Chambers members had an opportunity to check out the numerous floral and gift offerings from Berwick Floral & Gift at the first of two Business After Hours in November this past Wednesday, Nov. 15. Attendees enjoyed a warm fire on what a chilly night outside and a very homey atmosphere at Berwick Floral & Gift’s retail shop, located in the Shoppes at Woodin Place in downtown Berwick. Members also had the opportunity to network while enjoying hors d’oeuvres, wine, as well as beer from fellow Chamber member Berwick Brewing Company. All attendees also took home a gift bag courtesy of Berwick Floral & Gift, which offers flowers for all occasions, including holidays such as Thanksgiving and Christmas, anniversaries, congratulations, get well, sympathy, weddings and much more. They also offer a full assortment of various arts, crafts, antiques and other decor for homes and businesses.
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 held at Bason Coffee Roasting, located at 14 Rear East Mahoning St., Danville, on Wednesday, Nov. 29, from 4:30-6:30 p.m.
