From PA Chamber of Business & Industry On the legislative front, the fall legislative session is in full swing, and while the PA Chamber continues to keep a close eye on the yet-to-be resolved budget stalemate, we are also working on a host of other pro-business issues. Part of our agenda this fall includes two important updates to Pennsylvania’s Workers’ Compensation law that will help to rein in rising costs for employers. One important reform that we are advocating to enact is H.B. 18 – legislation that would implement a workers’ compensation drug formulary in which doctors writing prescriptions that are not FDA-approved or otherwise demonstrated to be effective must at least explain why the prescription is necessary for the patient. Drug formularies have been shown to address overuse of and addiction to prescription drugs among injured workers. For example, in the three years after Ohio implemented its formulary in 2011, the number of workers’ compensation patients considered opioid dependent was reduced by half. The bill passed the House Labor and Industry Committee; however a parliamentary procedural motion led by Rep. Gene DiGirolamo, R-Bucks, circumvented a vote by the full House earlier this year. A recent article in the Philadelphia Inquirer shed some light on some of the true motives of those who are leading opposition to the bill. The newspaper investigation unveiled a complex system wherein a large scale, well known workers’ compensation claimants law firm in the Philadelphia area is directing their clients to specific doctors who prescribe medications with dubious legitimacy and then funnel the unsuspecting patients to pharmacies that are owned by the doctors and lawyers themselves. According to the article: “The pharmacy then charges employers or their insurance companies for the workers’ pain medicine, sometimes at sky-high prices.” Several examples were highlighted in the article, including one instance in which the pharmacy charged $1,900 for a tube of cream that retails for around $14 – an over 13,000 percent mark-up. The law firm highlighted in the article has been a leading opponent of H.B. 18. Following the publication of the article, the PA Chamber issued a press release calling on the legislature to quickly pass H.B. 18 in order to help improve outcomes for injured workers, while at the same time combat the Commonwealth’s prescription drug and opioid crisis. The second issue we are working on is a legislative fix to the Protz V. Workers’ Compensation Appeals Board case – an issue that was the topic of a House Labor and Industry Committee informational hearing last week. In a recent decision, the state Supreme Court eliminated Impairment Rating Evaluations – an important cost-containment provision of the state’s Workers’ Comp Act – based on a technicality. IREs have been in existence since 1996 and are used by physicians – in tandem with guidelines from the American Medical Association – to assess an employee’s level of impairment and determine their disability status. As a result of this court action, in August, the Pennsylvania Compensation Rating Bureau took the unprecedented action of filing for a mid-year loss cost increase. We issued a statement at the time warning employers that this filing could lead to workers’ comp cost increases. We are leading a multi-industry coalition in support of legislation that will help ensure the constitutionality of the IRE process by updating the law with the most recent edition of the AMA guidelines and applying it to current and future claims. Over the next several weeks, the PA Chamber will be working hard to help move these important bills through the legislative process and to the governor’s desk – where they will hopefully be signed into law.The PA Chamber organized a multi-industry coalition letter last week urging House lawmakers to sign on as cosponsors and lend support to soon-to-be-introduced legislation that would accommodate a recent state Supreme Court decision related to workers’ compensation.
In August, the court ruled in the Protz v. Workers’ Compensation Appeals Board case to throw out Impairment Rating Evaluations that have been integral over the last two decades in bringing structure, fairness and stability to the workers’ compensation system. Conducted by physicians using guidelines from the American Medical Association, IREs have been part of the system since 1996 to assess an injured employee’s level of impairment and determine if they should receive lifetime wage benefits. When the court made its ruling, the PA Chamber issued a press release that warned business leaders about the significant cost hikes they could see in the near future and called for a legislative remedy.
The coalition letter stresses that the court’s decision to declare IREs unconstitutional was only made because AMA guidelines are updated periodically (twice since the law was first enacted) and therefore, since the current version differs from the version used in 1996, the Court said their use is an unconstitutional delegation of authority. Both House and Senate Labor and Industry Committee Chairs Rob Kauffman, R-Franklin, and Kim Ward, R-Westmoreland, respectively, have indicated their intention to introduce legislation that aims to fix this issue by updating the law with the most recent edition of the AMA guidelines and applying it to current and future claims. Chairman Kauffman hosted an informational committee meeting on the topic last Wednesday.
“IREs also helped stabilize the overall workers’ compensation system which had experienced massive cost increases in the late 1980s and early 1990s,” the coalition wrote. “We urge you to cosponsor this legislation.”
As part of the ongoing budget negotiations in Harrisburg, a new proposal is in the works that would increase the statewide hotel tax in Pennsylvania by 5%. Hotels already pay a 6% statewide hotel tax. A statewide tax rate of 11 percent would have a negative impact on the tourism industry.
The Columbia-Montour Visitors Bureau is urging businesses to call or email their state legislators immediately to voice opposition. Find your legislators here. Voting on this proposal will start today. Confirm your call to action by emailing Mary Yoder.
TALKING POINTS
– Hotels already pay a 6% statewide hotel tax in addition to local taxes that no other entity pays.
– This increase would make Pennsylvania hotel rooms the highest-taxed in the entire country.
– This tax will place our state’s tourism industry at an even steeper disadvantage and give tourists another reason not to come to Pennsylvania.
– Fewer tourists hurts businesses and brings fewer dollars into the state.
Member News
- State Rep. David Millard will host a Senior Caregiver Support Forum tomorrow, 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 this 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.
- Also occurring this weekend are two traditional events in Columbia County – Bloomsburg University’s Homecoming and the Columbia Montour Visitors Bureau’s annual Covered Bridge Festival held at Knoebels Amusement Resort. Bloomsburg’s Homecoming will feature the dedication of David L. Soltz Hall on Friday, Oct. 6 at 11 a.m., with the ribbon cutting at approximately 11:10 a.m. The schedule of events also features fireworks on Friday night, several athletic and alumni events on Saturday, and much more. The 36th annual Covered Bridge Festival gets underway on Thursday, Oct. 5 and run through the weekend. It features several vendors, music and entertainment, covered bridge bus tours, and much more.
- 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.
- The Danville Borough fall newsletter is now available. It includes a general update from the Borough Council president, information on upcoming events, including the annual Halloween Parade on Thursday, Oct. 27 beginning at 7 p.m., the borough being designed a River Town, the restoration of the World War I monument in Memorial Park, the borough being awarded a PennDOT grant, and much more.
- SEKUSUI SPI recently introduced a new addition to its high-impact product line for the aviation industry – KYDEX® 6523HI. SEKISUI SPI’s high-impact products, KYDEX® 6523HI and KYDEX® 6565HI, are designed to absorb more impact energy prior to failure. For more information on this new product, visit its product page.
- The United Way of Columbia and Montour County, AGAPE Love from Above to our Community and the Coalition for Social Equity will hold a three-part series the will explore the barriers our fellow community residents who live in poverty face every day. Join them to learn more and be part of the solution. The first event, a poverty simulation, will take place on Tuesday, Oct. 10, at 6:30 p.m. at Wesley United Methodist Church, 130 West 3rd St., Bloomsburg. This guided experienced will expose participants to the realities of poverty, including navigating the complex world of government services and other essential service providers. Registration is required for this part of the series. The other two events will take place on Tuesday, Oct. 17 and Tuesday, Oct 24. Registration is not required for either of those events. Oct. 17 will be a poverty panel that will feature participants sharing their stories of living in poverty, and Oct. 24 will be a community conversation. Both of those events will be held at First Presbyterian Church, 345 Market St., Bloomsburg.
- 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.
- The Greenwood Friends School will host a fall festival at its school located at 1509 State Route 254, Millville on Saturday, Oct. 14, from 10 a.m. – 2 p.m. There is no admission charge, all are welcome and the event will be held rain or shine. It will feature fun games and face painting for children and teens, a food and bake sale, live music, unlimited inflatable rides for children (with a wristband purchase), and a large flea market with crafts and vendors. Vendors interested in participating should call 570-458-5532 to reserve a spot.
- 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.
As originally communicated over the summer, the third annual Taste of the Valley will be held this year at Ponduce Farms, 270 White Church Rd., Elysburg, on Sunday, Oct. 15, from 12-3 p.m. Interested vendors in the food, catering and beverage categories are still welcome to sign up. Vendors will be accepted up through the day of the event, and there is no cost for vendors to participate.
After being held in Lewisburg and Sunbury in its first two years, Taste of the Valley will be held in Columbia County this year as it attempts to highlight businesses in Columbia and Montour Counties. This annual event provides patrons with samples of local food and beverages from the areas top farms, wineries, breweries and restaurants. This annual fall event, which began in 2015, is primarily a fundraiser to benefit the Central Pennsylvania Food Bank, but it also offers an opportunity for businesses in the food and beverage industry to have their products featured in front of a large audience ― all for a good cause.
For more information or to register as a vendor, download a vendor information form, visit Taste of the Valley’s Facebook page, or call Sharon at AgChoice Farm Credit at 570-524-2204 or email.
From PA Chamber of Business & Industry
The Senate wasn’t scheduled to return to session until Monday, Oct. 16, unless any real progress had been made on negotiations to finalize the $32 billion 2017-18 state budget with a revenue plan that will pay for it. It now appears that is the case, as the Senate has announced its return to session today to join the House in hopefully closing out a deal on the months-late spending plan.
While details remain limited, it appears that the plan will include fund transfers, video gaming terminals at truck stops and borrowing against the state’s Tobacco Settlement Fund. It is also said to include a commercial storage tax that will impact companies that lease commercial space. The governor has emphasized that he is only interested in signing a budget with recurring revenue. Last week, it was rumored that completion of the deal was hinging in part on whether it would include another tax on the natural gas industry – a proposal that the PA Chamber continues to lead a coalition against due to the hardships it would place on one of the state’s most promising industries. Early last week, House Democrats were planning to bring up a discharge resolution to force a natural gas severance tax proposal (H.B. 113) to the House floor – a plan that ended up falling through due to lack of support to get 102 votes in favor of the resolution. Before the decision was made to shelve the proposal, the PA Chamber sent a memo urging House lawmakers to vote “no” on the discharge resolution to H.B. 113, along with any other proposal that would result in higher energy taxes on our state’s businesses, consumers and industries.
If the new revenue plan earns enough support in the House and Senate, it could be voted on as early as this week – a situation that we are closely monitoring as we continue to advocate for a budget that doesn’t put undue burdens on the state’s business community.
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 member, Econo Lodge Bloomsburg, to help us fulfill our mission.
Previously a member that the Chamber is happy to welcome back, Econo Lodge is located at 189 Columbia Mall Dr., Bloomsburg, next to the Columbia Mall and Quaker Steak & Lube. It features 80 rooms, a fitness center, breakfast area with complimentary breakfast daily, free WiFi and also offers pet accommodations. Econo Lodge was the winner of a Gold Hospitality Award from Choice Hotels in both 2015 and 2016. Gold Hospitality Awards annually recognize the top 10 percent of hotel properties within each Choice Hotels brand. Under new ownership since May, Econo Lodge will soon be undergoing renovations, which are scheduled to get underway this fall, and will end with it being rebranded as a Quality Inn, another Choice Hotels brand, sometime next spring. The renovation project will include new furniture for the guest rooms and an expansion of the breakfast area and fitness center, among other things. For more information, visit its website, or call general manager Montana Jandrasitz at 570-387-0490.
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.