From ChamberChoice and Smart Business Pittsburgh Today’s health care environment is riddled with complex plan designs and rigorous government regulations, leaving many employers to feel as though their hands are tied when it comes to finding unique, innovative and cost-saving solutions. But a new concept is emerging that will enable small employers to identify current and future risk, influence behavior and control costs. Smart Business spoke with Aaron Ochs, a consultant at JRG Advisors, about strategic analysis and risk management in the small group health insurance market. How is the small group health insurance market changing? Typically, small employers have been unable to maximize the value of their medical benefits due to lack of claims utilization and analysis from their insurance company. In the typical buying arrangement, the small group market is a fully insured contract that does not offer the employer much control over the health plan. Self-funding works differently. In addition to providing protection against excessive costs in years with high claims and the opportunity to keep the profits from favorable years, the availability of data, including claims utilization, is a significant advantage for the employer. Knowing the health and risk factors of the employee population helps the employer determine the appropriate benefits strategy. Self-funding is not a new concept; but it is new to the smaller employer — with many insurance companies offering level-funding premium options (a form of self-funding) to groups with as few as 10 insured employees. With level funding, the employer puts aside enough money to cover anticipated claim expenses and the monthly premium remains level for the entire plan year. If claims are less than the funded amount at the end of the year, a rebate or credit is issued. If claims exceed the funded amount, the employer is protected by stop loss. How can employers use data as a tool to help? The ability to anticipate or predict claims costs hasn’t been available in the small group market due to the absence of claims data from the insurance companies — until now. This is where newly developed risk management and predictive modeling tools come into play, making it possible to take a much ‘deeper dive’ into the composition and risk of the smaller employer, proactively identifying members with markers for chronic illness to predict health risks and determine if self-funding is a viable solution. The deeper dive begins with employee data that is captured through a custom access portal, scrubbed and reviewed. The portal is an insurance company-accepted, Affordable Care Act and HIPAA compliant online benefits application tool designed to reduce the amount of time, cost and paperwork for employers. Employees are asked to complete an online enrollment interview. The employer receives a confidential de-identified aggregate report with an overall analysis. This expert analysis guides the business owner through the benefit decision process with the power of knowledge. Gaining insight into the composition and health status of the group means plan design decisions can be strategic rather than an annual game of ‘pinning the tail on the donkey’ to find a tolerable solution. What kind of results can employers expect? Often, the same portal technology can reduce or eliminate many administrative burdens by providing the added support of employee enrollment, communication and plan election/waivers. The solution is a faster and more efficient approach to benefits. This means employers can essentially build their own health plan, which can lead to generous cost savings, greater transparency and understanding, and better overall cost control. Over half of an average employer’s health care budget is spent on members with preventable conditions. It’s time for small employers to take control of their health care plans. Talk to your advisor to learn how these funding arrangements and risk analysis tools can help with your strategic benefits planning needs.
From PA Chamber of Business & Industry
On Friday, Jan. 26, Gov. Tom Wolf held a press conference to announce that his administration was working toward making several positive changes to the state’s existing and cumbersome regulatory and permitting process – reducing permit backlogs, modernizing permitting processes and better utilizing technology to improve regulatory oversight and efficiency. This will include a request in Gov. Wolf’s budget of hiring more people within the Department of Environmental Protection.
Other efforts will include expanding the e-permitting system with several key development permits, to reduce paperwork between DEP and industry; creating a new analytics program to track permit times; releasing new review processes and registration practices to make application processes easier; and supporting legislation to bring permitting in line with the industry it is engaged with – for example, extending permit terms and allowing multi-well pad permitting.
Following the press conference, PA Chamber President Gene Barr issued a statement applauding the governor for taking steps toward reducing long-term regulatory burdens for the private sector. “Today’s announcement is a step in the right direction to making it easier for job creators to operate in the Commonwealth,” Barr said. “We look forward to working with the legislature and the Wolf administration on additional steps to improve the state’s regulatory and overall business climate.”
The Columbia Alliance for Economic Growth is scheduled to hold its annual meeting on Tuesday, Feb. 20 at 4:30 p.m. at The Inn at Turkey Hill. In addition to electing members to the Board of Directors, several changes to the by-laws have been proposed. Members of the Chamber are automatically members of the Alliance and invited to participate in the meeting.
Nominated to serve three-year terms on the Board are:
Tim Karr, Villager Realty
Vic Klein
Harry Mathias, Central Columbia School District
A listing of the Alliance’s current Board of Directors is available online.
Prior to voting on Directors, several changes to the organization’s by-laws are being proposed as follows. Deletions are noted as strikethroughs, additions as underlines:
ARTICLE I, Section 2 – The mailing address of this organization for legal notices shall be the office of the organization’s solicitor 17 Woodbine Lane, Suite 103, Danville, PA 17821.
ARTICLE V, Section 1 – Control and management of this organization shall be vested in the Board of Directors consisting of not less than fifteen (15) nine (9) nor more than thirty (30). Funds of the organization shall be withdrawn from the depository bank by check upon the signature of the President, Treasurer, or other persons designated by action of the Board. The depository bank of the organization for ensuing year shall be chosen by the Board of Directors at the annual board reorganization meeting.
ARTICLE VI, Section 3 – Election of members to the Board of Directors shall be held at the Annual Meeting. At each election, not less than five (5) three (3) nor more than ten (10) Directors shall be elected for terms of three (3) years each or until succeeded, to replace or renew the Directorships whose terms expire.
If you are interested in attending the meeting, contact Jennifer Wakeman at the DRIVE office at 570-284-4296 or by email.
Member News
- The Bloomsburg Municipal Airport, which is operated by the Bloomsburg Municipal Authority, will hold a free six-week Ground School course beginning tomorrow, Thursday, Feb. 1, from 6-9 p.m. and running each of the next five Thursdays at the same time at the airport terminal building, 301 Airport Rd., Bloomsburg. This course is intended to teach prospective pilots about aircraft performance, flight mechanics, weight and balance, navigation, radio communication, weather and FAA regulations, as well as prepare students to take the written Private Pilot Ground School Exam, which is a requirement to obtain a private pilot certificate. For more information, see this flyer or email the airport coordinator.
- The athletics department at Bloomsburg University will host a series of events on National Girls & Women in Sports Day this Saturday, Feb. 3 in Nelson Field House. The events are open to all girls and boys in grades K-8. The day begins with a free basketball clinic at 10 a.m., following by a speed and agility clinic, activities fair and pizza party. All participants are then invited to attend the women’s basketball game vs. Lock Haven (admission is free to participants) and a post-game autograph session. For more information, including how to RSVP, see this flyer.
- Jeb Stotter, president and CEO of North Shore Railroad, was recently named to the 2018 Top 100 People list by Pennsylvania Business Central, a business trade publication. This annual list celebrates the top 100 people in business and economic development who have learned how to develop their organizations and communities. Stotter was named the president and CEO of North Shore last year.
- Ken Pollock Volvo in Pittston, part of the Ken Pollock Auto Group that owns Ken Pollock Ford-Lincoln, was recently awarded a 2018 DealerRater Consumer Satisfaction Award, an annual recognition given to auto dealerships that deliver outstanding customer service as rated by online consumer reviews. DealerRater is the world’s leading car dealer review website, and it created this award program to let online car shoppers instantly spot dealers that provide high-quality customer service. Only the top 10 percent of U.S. new-car dealers are given Consumer Satisfaction Awards.
- GAF, one of the Chamber’s newest members and North America’s largest roofing products manufacturer, will host a job fair on Saturday, Feb. 10, from 8 a.m. – 12 p.m. at its New Columbia facility, located at 2093 Old Route 15. GAF is looking for dedicated, safety-minded individuals with manufacturing experience to join its team. An iPad mini 4 will be given out to one attendee that has completed an online job application prior to arriving at the job fair and who also completes an information card at the event. Attendees will have an opportunity to learn more about GAF, meet its employees, tour the facility and learn about its hiring process. Refreshments will be available. For more information, see this flyer and visit GAF’s career website.
- The Central Susquehanna Community Foundation will hold its Annual Meeting on Friday, Feb. 23, from 12-1:30 p.m. at the Pine Barn Inn. A lunch will be served and attendees will be able to hear four speakers. CSCF president and CEO Holly Morrison will talk about “Spreading the Message of Philanthropy” while board member John Kurelja will speak about the regional impact of the CSCF’s philanthropic activities. Two speakers from Wilmington Trust will also talk about the CSCF’s funds’ performances. For more information, see this invitation, and to RSVP, email or call Karri Harter at 570-752-3930, ex. 6, by Feb. 16.
- Wesley United Methodist Church has been hosting the community friendship meal since 2002. Guests in need are able to be served a warm and nutritious meal every Saturday morning from 10:30 a.m. – 12:30 p.m., free of charge. Volunteer groups are needed to keep this meal going in the future. If you have a group that is interested in volunteering for a few hours on a Saturday morning during the year, please visit the church’s website and click on “community friendship meal.” For questions, please contact Katy Miller at 570-441-2850. Please note that beginning Jan. 6, the community friendship meal will be held at St. Matthew Lutheran Church, 123 N. Market St., Bloomsburg, while the Wesley UM Church kitchen goes through a renovation that may last 8-12 weeks.
From PA Chamber of Business & Industry
After a brief government shutdown, a stopgap funding measure was signed on Jan. 22 that also contains a few provisions that makes changes to the federal Affordable Care Act and will have a direct impact on certain employer plans. Among the notable changes are:
- A two-year delay of the “Cadillac” tax – the ACA provision that levies a 40 percent excise tax on the cost of healthcare plans above specific IRS limits delays the tax an additional two years, setting its new effective date to 2022. According to financial consulting firm Conrad Seigel, the delay on the tax (this is the second time it has been delayed), coupled with bipartisan opposition to it has raised speculation over whether the “Cadillac Tax” will ever be fully implemented.
- One-year suspension of the Health Insurer’s Tax in 2019 – Two years ago, Congress and the president issued a one-year suspension on HIT – a provision in the ACA that imposes a tax on health insurers. The delay was in place for 2017, so the tax became effective again this year.
- Two-year suspension of the Medical Device Tax – A 2.3 percent excise tax on U.S. medical device revenues was delayed in 2016 and 2017 and under the new law will continue to be suspended through 2018 and 2019.
- Restoration of federal funding to the Children’s Health Insurance Program – The new stopgap funding bill provides an additional six years of federal funding for CHIP, following months of speculation about the program’s future after its budget expired on Sept. 30 of last year. The funding will assist states in providing health coverage to children and pregnant women in need.
Coordination of the spring festivals that bring people into our communities is well underway. Following Renaissance Jamboree in Bloomsburg on April 28 and Spring Fling in Danville on May 5, Celebrate Berwick will be returning to Market Street in the Borough. A planning meeting for Celebrate Berwick is scheduled for this Thursday, Feb. 1, at 5:30 p.m. at Berwick Brewing Company. Anyone interested in helping with the event is welcome to attend.
From ChamberChoice
The Employee Benefits Security Administration (EBSA) is the enforcement arm for the Department of Labor (DOL) as it relates to employee benefit plans. The EBSA enforces ERISA’s fiduciary, reporting and disclosure provisions. Civil monetary penalties can be assessed for compliance failures of any of these requirements. Penalties however, become less effective when they have not been raised to keep up with inflation. Therefore, based on the Inflation Adjustment Act, new penalty amounts are adjusted annually in January.
Increased penalty limits for 2018 are scheduled to be effective as of Jan. 2, 2018 when they will be published in the Federal Register. Employers need to be aware of these penalties as many are applicable to employee benefits they offer.
At right is a brief table outlining some of the increases.
Although the DOL does not typically assess the maximum permissible penalty under the law, the looming penalties may spur plan sponsors and administrators to more closely scrutinize their compliance efforts.
When one thinks about nuclear power it doesn’t usually conjure the most positive images. Whether those images are from movies like Godzilla, or stark reality, like Three Mile Island, Fukishima and Chernobyl, it just never seems to go well. Leadership Central Penn was lucky enough to be hosted by Talen Energy at the Susquehanna Nuclear Power Plant, to learn the reality of this awesome power. The facts were shared with the group by Todd Martin, corporate communications manager, and Alise Seibert, nuclear training supervisor.
The facts are that nuclear power in the 21st century is safe, as with all things, there are risks, but with Talen’s safety first approach, and the oversight of the National Regulator Commission, nuclear power in our community and the United States is not a public risk, but a benefit. The facility is secure and meets the highest standards with rigorous training metrics. As they generate power for the grid, it is sold, as they are not a public utility. This competitive market has caused some touch choices to be made by the organization.
One effort to maintain flexibility in a market that has spiking load requirements, especially in winter cold snaps, is their ability to bring the Montour Coal Power Plant on line. This plant is maintained locally at all times, and used when the grid has a demand for more competitively priced energy. The class asked what the lowest cost fuel is for generation. However that is like asking which taste better, an apple or a watermelon? There are too many factors that influence that answer. Some include demand, pricing of raw materials, subsidies of generation fuel, etc.
The program from Talen concluded with a tour of the simulator for nuclear training. The class was walked though a program of very excited engineers that liked to challenge themselves with scenarios. They want to simulated load needs, melt down preventions, system failures, and more to ensure safety of the plant, employees and community. Their philosophy is simple – if one safety step is good, two is better, and three is necessary.
After a wonderful lunch from Lucy’s Kitchen & Catering, the class focused on economic development in this region. This discussion and presentation was led by Fred Gaffney, president of the Columbia Montour Chamber. The group learned about the successes and challenges of economic development efforts in the area related to government support, workforce development, and impact on public works. One example that was shared is the ongoing Columbia County Business Park. The class was very engaged in the discussion about the creation and ultimate goals that lead to the development of this industrial/commercial park. The future success of this project is growing with one site currently developed and occupied by the Fairfield Inn & Suites, and two additional sites currently being developed.
Everyone also learned more about the role of The Foundation of the Columbia Montour Chamber of Commerce in the economic development of our counties. These efforts are focused on workforce development and partnership between industry and school districts. Additionally, programming like LCP allows for lifelong learning and community impact programming for professionals.
The final presenter of the day was David “Otto” Kurechian, executive director of the Columbia-Montour Visitor’s Bureau. First, Otto allowed the group to follow-up on the Visitor’s Bureau’s role in economic development and success of the Fairfield Inn at the business park. Everyone is aware that tourism is a large business for our area, especially during the spring, summer and fall season with fairs, wine and craft beer trails, outdoor activities and more. However, the class learned about the impact of certain economic development projects like the Atlantic Sunrise Pipeline. This project has brought many workers to the areas that are staying in local rentals and hotels, eating at local restaurants and shopping at local businesses.
After economic development wrapped up, Otto discussed boardmanship, what it means to serve on a local Board of Directors or Board of Trustees. The presentation focused on how to decide if when and how to serve on these boards. First, he said one should never, ever say yes when initially asked to join a board. Even if it is by one’s employer, and strongly encouraged, or a best friend, neighbor, etc. There are questions people should ask themselves and the organization. The first thing is why do you want to join this organization in this capacity and what you offer them with your skills and interest? You’ll be asked to express these very things when you formally apply to join and are being vetted. You also need to ask to see the organization’s by-laws, financials, and strategic plan. What is your expected time commitment, how long are you expected to serve, what is the financial situation of the organization, and where are they headed? If you can’t be at the first Tuesday of each month meeting, then don’t join. If you don’t agree with the strategic plan, or finances worry you from the organization, don’t join. This is much like looking for a job, and should be scrutinized as such.
When you find the right fit, you will get extreme amounts of personal satisfaction from your service. The organization will benefit from your skills and passion. The community will be impacted positively. This is the goal of boardsmanship, and the LCP class in general.
Leadership Central Penn is sponsored by Bloomsburg University, Kawneer, SEKISUI SPI and USG.
From State Sen. John Gordner
The state Department of Conservation and Natural Resources (DCNR) will begin accepting applications for the latest round of grants for community conservation and recreational projects on January 22, 2018, according to state Senator John R. Gordner.
“This is a special year, as it marks the 25th anniversary of the Keystone Recreation, Park and Conservation Fund,” said Senator Gordner. “Over that time, over 3,000 community park projects and over 12,000 miles in trail projects have been completed or maintained because of this essential program.”
In 2018, DCNR will again focus on grant awards that meet the priorities laid out in the Statewide Comprehensive Outdoor Recreation Plan.
“As usual, the priorities for the program this year include rehabilitation of trails and community parks, land conservation projects and improved access to Pennsylvania waterways,” said Senator Gordner.
The application period will remain open until April 11, 2018. Grants will be funded through a variety of sources, including the Keystone Recreation, Park and Conservation Fund, the Environmental Stewardship Fund, the Pennsylvania Recreational Trails Program and the Land and Water Conservation Fund.
DCNR’s Bureau of Recreation and Conservation staff is available to assist in helping applicants develop and submit a competitive grant application. Detailed program information, access to the online grant application portal and more can be found here.
Information on the Comprehensive Outdoor Recreation Plan may be found here. Grant applications are available here.
A total of 18 member organizations and individuals were nominated for the Columbia Montour Chamber’s four annual awards, which will be given out at the Chamber’s Annual Meeting, sponsored by PPL Electric Utilities, on Thursday, Feb. 8, at Rolling Pines Golf Course.
Congratulations to the following individuals and organizations on their nominations, and special thanks to the following four organizations for sponsoring the annual awards: First Columbia Bank (Small Business of the Year), the Columbia Alliance For Economic Growth (Large Business of the Year), Commonwealth Health-Berwick Hospital Center (Community Progress) and the Berwick Industrial Development Association (BIDA) (Outstanding Citizen).
The Outstanding Citizen Award goes to an individual that is an employee or volunteer for a member of the Chamber, and is involved in civic activities beneficial to the Columbia Montour region and projects a positive community image.
The Small and Large Business of the Year Awards are given to a Chamber member that demonstrates business leadership evidenced by diversification and creativity in the development of new products, services and/or markets, demostrates staying power and positive response to adversity, and demonstrates community involvement.
The Community Progress Award is given to a Chamber member that shows improvement in the internal/external appearance of a commercial property through new construction, renovation/restoration or remodeling, and has completed that construction within the last three calendar years or be completed by Dec. 2017.