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North Country CEO uses Entrepreneurship Bootcamp for Vets training to grow firm
SYRACUSE — Thad Hunkins took over as owner, president, and CEO of NCC Systems, Inc. at the beginning of the year. The family-owned NCC Systems is an electronics-integration company with locations in Watertown, Potsdam, and Plattsburgh, as well as Washington, D.C., per its website. The company’s products include fire systems, commercial and residential-security systems, CCTV […]
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SYRACUSE — Thad Hunkins took over as owner, president, and CEO of NCC Systems, Inc. at the beginning of the year.
The family-owned NCC Systems is an electronics-integration company with locations in Watertown, Potsdam, and Plattsburgh, as well as Washington, D.C., per its website. The company’s products include fire systems, commercial and residential-security systems, CCTV camera systems, door-access control systems, phone systems; and pro sound and public-address systems.
Hunkins’ father, David, is the firm’s VP and minority owner.
Thad Hunkins returned to the company after serving in the U.S. Air Force for nearly 30 years, having retired from service in July 2018.
When he agreed to assume control and operate the business, Hunkins realized he had a problem. “That’s not something I have any experience in,” he noted.
Hunkins was among 30 veteran entrepreneurs who participated in the 12th annual Entrepreneurship Bootcamp for Veterans (EBV) held in July at Syracuse University. The program targets those who want to start or grow their own business.
Getting involved
Once his family learned that Hunkins would be leading the family business, one of Hunkins’ sons asked him if he would be taking any business classes to prepare him for his new role.
“I thought that was very sage advice,” said Hunkins, noting his son is a computer electrical engineer who works in New York City.
Hunkins spoke with reporters during an EBV media day held July 24 at Syracuse University’s Martin J. Whitman School of Management.
As he was transitioning out of the military, he had a chance to participate in the military’s transition-assistance program, or TAP. It provides programs offering help in how to find a job and includes a program on entrepreneurship and starting your own business. Hunkins signed up for “all of them,” he said.
At the same time, he also met Chris Dambach, president of Industry Standard USA of Clay, at a Veterans Institute for Procurement program. Dambach had recommended he get involved in the EBV program.
“I had not heard of that … It was never on my list of things to do,” Hunkins recalled.
But it became part of his to-do list in 2019. Before the program concluded, all the veteran entrepreneurs went before an expert panel to pitch an idea they were pursuing to get some feedback on how to proceed.
For his presentation, Hunkins planned to discuss NCC’s plans for growing geographically, specifically mentioning that the firm has a presence in Plattsburgh with “couple of technicians” but no dedicated office building. But he wants to change that.
“The team is on board with let’s go to Plattsburgh. Got some land. We’re going to put up a building and fill it with technicians who do nothing but secure and protect Plattsburgh,” Hunkins said of the firm’s plans for that area of Northern New York.
About EBV
Veterans from more than 12 states participated in EBV, an eight-day program focused on starting and building a business offered through Syracuse University’s Institute for Veterans and Military Families (IVMF).
Participants attended classes, networking events, and presentations, “learning the fundamentals of running a business from over 30 accomplished entrepreneurs and professors,” per a July 22 news release about the program. The program at Syracuse University continued from July 20 through July 27.
They learned about subjects that include social media, human resources, technology, accounting, and personal branding, said Misty Stutsman, director of entrepreneurship and small business at the IVMF.
“They really get a whole breadth of knowledge throughout the week,” Stutsman said in speaking to reporters at the July 24 media day at the Whitman School.
Since its founding at Syracuse in 2007, EBV has expanded to a consortium of nine schools across the country and has graduated nearly 2,000 aspiring entrepreneurs, 79 percent of whom have gone on to start their own business. And, 92 percent of those are still in business, Syracuse University says.

Auburn selects 13 projects to benefit from state downtown-revitalization money
AUBURN — The city of Auburn has unveiled a plan involving 13 projects that it will target with its $10 million Downtown Revitalization Initiative (DRI) award. Lt. Gov. Kathy Hochul announced the projects during a July 30 event at the Auburn Public Theater. The state had announced the funding award last July. Auburn developed a
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AUBURN — The city of Auburn has unveiled a plan involving 13 projects that it will target with its $10 million Downtown Revitalization Initiative (DRI) award.
Lt. Gov. Kathy Hochul announced the projects during a July 30 event at the Auburn Public Theater. The state had announced the funding award last July.
Auburn developed a plan to revitalize its downtown with $300,000 in planning funds from the $10 million DRI grant. A local planning committee made up of municipal representatives, community leaders, and other stakeholders led the effort, supported by a team of private-sector experts and state planners.
Projects involved
Crews will also redevelop a 1970s strip mall on Seminary Street as a new shared-services, public-safety building to create office space for a city and county emergency operations center and emergency-management office, as well as facilities to replace the deteriorating City of Auburn Fire Department facility “currently located in a dam inundation zone.”
Another project will renovate the Auburn Public Theater to allow for a greater variety of programming and ensure the community anchor’s long-term stability, the state said. The project includes the creation of a café, community event space, a black box theater, an Auburn Music Hall of Fame, an elevator, kitchen space, a new entryway, and exterior renovations such as a new entrance, digital sign, awnings, and marquees.
Auburn also wants to convert a vacant commercial structure at 22 East Genesee St. into apartments and ground-floor retail space. The scope of the project includes new plumbing, electrical, sprinkler, and heating, ventilation, and air-conditioning systems; energy-efficient windows; apartment kitchens and bathrooms; an elevator; fire-rated stairways; façade improvements; flooring and finishes; masonry and carpentry; and storage units.
In addition, crews will convert the Rudolph Building at 99 Genesee St. into a mixed-use development across from the Auburn Public Theater. New ground-floor retail space and upper-story residential units will boost traffic downtown following installation of a sprinkler system and new electrical and plumbing, renovations to apartments and other interior spaces, and façade improvements.
The plan also calls for work on a vacant three-story structure at 13 Chapel St. into a central facility for recovery, treatment, and complementary health-care services. The facility will house the existing nonprofit Nick’s Ride 4 Friends and other health-based organizations targeting issues of addiction. The project will include both interior and exterior renovations.
Auburn also wants to renovate the Willard Memorial Chapel, a National Historic Landmark, to improve its community event venue. The project consists of the interior restoration of the chapel in keeping with its original design and finishes, and exterior improvements to the parking lot and landscaping.
Also on tap is renovation work at the Seward House Museum’s barn and carriage house to serve as meeting, office, and event spaces. The project will include stabilizing and repairing the barn foundation and façade, repairing interior and exterior features, updating electrical service, conducting thermal improvements, and either fixing or removing an adjacent potting shed.
The plan also calls for the redevelopment of a centrally-located vacant site into a public plaza for events, festivals, and socializing to “round out the vision for the State Street Creative Corridor.” DRI will fund site preparation, water lines, stormwater management, seating areas, landscaping, fencing, hardscaping, and flexible performance space. The project will also include public art, moveable furniture, pedestrian-scale lighting, bike racks, and interpretive signage.
Crews will also rehabilitate 10,000 square feet of space within the Health Central building to house medical, surgical, behavioral, and dental specialties, as well as additional diagnostic and treatment services. Examples of improvements include the creation of a waiting room and reception area, exam or therapy rooms, individual and group offices, nursing or staff working areas, and administrative areas and storage.
Auburn additionally wants to establish a fund to support the establishment and growth of small businesses, improve the built environment, and increase housing options in the downtown area. The program will provide financial support to establish or expand businesses, implement exterior improvements that complement the character of downtown, and undertake interior improvements to renovate or create upper-story housing.
Arts projects
The Auburn projects include architectural and site improvements around the campuses of the Schweinfurth Art Center and Cayuga Museum of History and Arts, the office of Gov. Andrew Cuomo said in a news release.
Proposed improvements include a continuous outdoor walkway, parking lot and driveway upgrades, new plazas, new accessible entryways to both museums, and amenities such as lighting, signage, interpretive panels, bike racks, benches, and a play sculpture.
Crews will also renovate the vacant Plaza of the Arts building to accommodate Cayuga Community College’s new culinary arts program and provide a café and central space for community events. Interior renovations will include instructional space as well as build-out and fixed equipment for a commercial grade kitchen.
Auburn also wants to install public art throughout the DRI area to attract visitors to a new “Avenue of the Arts.” Proposed installations include sculpture and green-space improvements at the Boyle Center; a Harriet Tubman life-cycle sculpture at Freedom Park; a sculpture at South Street and Genesee Street; a mural at the Auburn Public Theater; a mural at Nash’s Art Supply; and light-pole banners along Loop Road establishing the “Avenue of the Arts.”
All CNY jobless rates dip in June, but only two areas gain jobs
Unemployment rates in the Syracuse, Utica–Rome, Watertown–Fort Drum, Binghamton, Ithaca, and Elmira regions all declined in June compared to a year ago, according to New York State Department of Labor data released July 23. On the job-growth front, the Syracuse and Ithaca areas gained jobs between June 2018 and this past June, while the Utica–Rome
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Unemployment rates in the Syracuse, Utica–Rome, Watertown–Fort Drum, Binghamton, Ithaca, and Elmira regions all declined in June compared to a year ago, according to New York State Department of Labor data released July 23.
On the job-growth front, the Syracuse and Ithaca areas gained jobs between June 2018 and this past June, while the Utica–Rome region lost jobs in the same period.
In the Watertown–Fort Drum, Binghamton, and Elmira regions, there was no change in jobs the last 12 months.
That’s according to the latest monthly employment report that the New York State Department of Labor issued July 18.
Regional unemployment rates
The jobless rate in the Syracuse area dipped to 3.6 percent in June from 4.3 percent in June 2018.
The Utica–Rome region’s jobless rate fell to 4 percent from 4.3 percent; the Watertown–Fort Drum area’s rate slipped to 4.2 percent from 4.7 percent; in the Binghamton region, it declined to 4 percent from 4.7 percent; in the Ithaca area, the rate dipped to 3.4 percent from 4.2 percent; and in the Elmira region, the unemployment rate fell to 3.8 percent from 4.7 percent in the year-earlier period.
The local-unemployment data isn’t seasonally adjusted, meaning the figures don’t reflect seasonal influences such as holiday hires.
The unemployment rates are calculated following procedures prescribed by the U.S. Bureau of Labor Statistics, the state Labor Department said.
State unemployment rate
New York state’s unemployment rate remained at 4 percent in June for a second straight month. It was higher than the U.S. unemployment rate of 3.7 percent in June.
The June statewide unemployment figure of 4 percent was down from 4.1 percent in June 2018, according to department figures.
The federal government calculates New York’s unemployment rate partly based upon the results of a monthly telephone survey of 3,100 state households that the U.S. Bureau of Labor Statistics conducts.
June job-growth data
The Syracuse region gained 7,100 jobs in the past year, a 2.2 percent increase.
The Utica–Rome region lost 600 jobs, a decrease of 0.7 percent; the Ithaca area gained 1,400 positions, an increase of 2.2 percent; the Binghamton region had no change in jobs; the Watertown–Fort Drum region was unchanged; and the Elmira region also had no change.
New York state as a whole gained more than 111,000 jobs, an increase of 1.1 percent, in that 12-month period. The state economy gained nearly 13,000 jobs, a 0.1 percent rise, in June compared to May, the labor department said.
Jefferson County hotel occupancy rate jumps 10 percent in June
WATERTOWN — Hotels in Jefferson County were substantially fuller in June than in the year-ago month, according to a new report. The hotel occupancy rate (rooms sold as a percentage of rooms available) in the county increased 10 percent to 68 percent in June from 61.8 percent a year before, according to STR, a Tennessee–based
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WATERTOWN — Hotels in Jefferson County were substantially fuller in June than in the year-ago month, according to a new report.
The hotel occupancy rate (rooms sold as a percentage of rooms available) in the county increased 10 percent to 68 percent in June from 61.8 percent a year before, according to STR, a Tennessee–based hotel market data and analytics company. That snapped a string of five straight months in which Jefferson County’s occupancy rate declined compared to the year-earlier period. Year to date, hotel occupancy in the county was down 1.1 percent to 47.2 percent.
Revenue per available room (RevPar), a key industry gauge that measures how much money hotels are bringing in per available room, soared 13.6 percent to $69.09 in June from $60.83 in June 2018. Through the first six months of the year, the county’s RevPar increased 2.7 percent to $44.25.
Average daily rate (or ADR), which represents the average rental rate for a sold room, gained 3.3 percent to $101.64 in June from $98.40 a year earlier. Year to date, Jefferson County’s ADR was up 3.9 percent to $93.72.

Oneida County hotel occupancy rate declines in June
UTICA — Hotels in Oneida County were slightly less full in June than in the year-prior month, according to a recent report. The hotel occupancy rate (rooms sold as a percentage of rooms available) in the county slipped 1.3 percent to 66.1 percent in June from 67 percent a year ago, according to STR, a
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UTICA — Hotels in Oneida County were slightly less full in June than in the year-prior month, according to a recent report.
The hotel occupancy rate (rooms sold as a percentage of rooms available) in the county slipped 1.3 percent to 66.1 percent in June from 67 percent a year ago, according to STR, a Tennessee–based hotel market data and analytics company. Year to date, the county’s occupancy was up 0.5 percent to 52.3 percent.
Revenue per available room (RevPar), a key industry gauge that measures how much money hotels are bringing in per available room, fell 3.8 percent to $76 in June from $79.03 in June 2018. In the first six months of 2019, Oneida County’s RevPar rose 0.5 percent to $56.01.
Average daily rate (or ADR), which represents the average rental rate for a sold room, declined 2.6 percent to $114.97 in June from $117.99 a year prior. Year to date, ADR was unchanged at $107.04.

New York home sales slide in June, CNY sales mixed
ALBANY — New York realtors sold 11,166 previously-owned homes in June, a decline of nearly 15 percent from 13,076 homes sold in the year-ago period. That’s according to the New York State Association of Realtors (NYSAR)’s June housing-market report issued July 23. Sales data The June statewide median sales price was $299,000, up almost 9
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ALBANY — New York realtors sold 11,166 previously-owned homes in June, a decline of nearly 15 percent from 13,076 homes sold in the year-ago period.
That’s according to the New York State Association of Realtors (NYSAR)’s June housing-market report issued July 23.
Sales data
The June statewide median sales price was $299,000, up almost 9 percent from the June 2018 median price of $275,000, according to the NYSAR data.
Pending sales totaled 13,208 homes in June, down nearly 2 percent from 13,460 in the same month in 2018.
The months’ supply of homes for sale remained unchanged at the end of June at 6.4 months of supply, per NYSAR’s report. It also stood at 6.4 months at the end of June 2018. A 6-month to 6.5-month supply is considered to be a balanced market, per the association.
The number of homes for sale totaled 71,344 in June, down 1.1 percent from 72,166 homes for sale in the year-ago period.
Central New York data
Realtors in Onondaga County sold 473 previously owned homes in June, down nearly 13 percent from 543 sold in the same month in 2018. The median sales price rose almost 4 percent to $164,000, up from nearly $158,000 a year prior, according to the NYSAR report.
NYSAR also says that realtors sold 149 homes in Oneida County in June, down more than 28 percent from the 208 homes sold in June 2018. The median sales price rose almost 6 percent to $130,000 from under $123,000 a year ago.
Realtors in Broome County sold 159 existing homes in June, down 12.6 percent from 182 homes sold a year ago, according to the NYSAR report. The median sales price decreased 10.6 percent to $116,000 from $129,787 a year ago.
In Jefferson County, realtors closed on 105 homes in June, up 1 percent from 104 homes sold a year ago, and the median sales price of $150,000 was up 1 percent from $148,500 a year earlier, according to the NYSAR data.
All home-sales data is compiled from multiple-listing services in New York state and it includes townhomes and condominiums in addition to existing single-family homes, according to NYSAR.

New York maple-syrup production rose nearly 2 percent in 2019
Maple-syrup production in New York state increased 1.7 percent to 820,000 gallons this year from 806,000 gallons in 2018, despite a shorter season, according to the USDA National Agricultural Statistics Service (NASS). New York’s maple-syrup season lasted an average of 32 days in 2019, down from 52 days last year. The earliest sap flow reported
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Maple-syrup production in New York state increased 1.7 percent to 820,000 gallons this year from 806,000 gallons in 2018, despite a shorter season, according to the USDA National Agricultural Statistics Service (NASS).
New York’s maple-syrup season lasted an average of 32 days in 2019, down from 52 days last year. The earliest sap flow reported in the state this year was Jan. 5 and the latest sap flow was May 1.
The number of taps in the Empire State rose 2.6 percent to 2.8 million taps in 2019 from 2.73 million last year. The yield per tap dipped slightly from 0.295 gallons in 2018 to 0.293 gallons this year.
U.S. maple-syrup production totaled 4.24 million gallons in 2019, up 1 percent from nearly 4.2 million gallons the previous year, per the USDA. The number of taps was estimated at 13.3 million this year, down 4 percent from the 2018 total. Yield per tap was estimated to be 0.318 gallons in 2018, up 5 percent from 0.303 gallons the previous season.

CNY Community Foundation announces grants for Madison & Onondaga counties
SYRACUSE — The Central New York Community Foundation announced that it recently awarded $731,745 in grants to support nonprofits in Onondaga and Madison counties. The grants include the following. – Action for Healthy Kids received $50,000 to support the Game On program to promote healthy eating and physical activity in 24 Onondaga County and Madison
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SYRACUSE — The Central New York Community Foundation announced that it recently awarded $731,745 in grants to support nonprofits in Onondaga and Madison counties. The grants include the following.
– Action for Healthy Kids received $50,000 to support the Game On program to promote healthy eating and physical activity in 24 Onondaga County and Madison County schools.
– Central New York Jazz Arts Foundation was allocated $27,000 to complete renovations to the lower level of its theater.
– Central New York Land Trust received $60,000 to establish an Outdoor Watershed Education Center on Skaneateles Lake.
– City of Syracuse/Bureau of Research was provided $39,600 to support SyraCoin Housing Stability program, a peer-to-peer crowd funding platform connecting low-income renters to emergency-housing funding.
– Community Action Partnership for Madison County received a $20,000 grant to continue its Transitional Housing and STEHP programs. The STEHP program provides housing to homeless people and helps people facing eviction with the resources to stay in their home while the Transitional Housing program provides families with housing as they work toward housing stability.
– Food Bank of CNY was allocated a $50,000 grant to renovate a portion of its warehouse to expand the capacity of its volunteer program and maximize distribution efforts.
– Hamilton Central School received $17,995 to purchase virtual welding hardware and software for use in the agriculture education programs of three school districts in Madison County — Hamilton, Madison, and Stockbridge Valley.
– The Haven at Skanda was offered $20,000 to weatherize its barn to accommodate for year-round learning.
– Image Initiative was allocated $15,000 to expand the CHOICES program for SCSD high school girls. The program provides mentorship and workshops that focus on conflict resolution, education, career choices, entrepreneurship, and wellness.
– Jewish Home of Central New York received $23,650 to install a new security system as a result of increased threats of anti-Semitic hate crimes, incidents, and security concerns affecting Jewish senior care facilities.
– Junior Achievement of Central Upstate New York was allocated $10,000 to expand its extended learning, afterschool and business programs for students in the Syracuse City School District.
– Legal Services of Central New York received $25,000 to conduct an equity audit, conduct training and create an advocacy plan to build a race-equity culture.
– Loretto Health & Rehabilitation Center was provided with $75,000 to purchase classroom equipment for its Training Center of the Future that will help increase training opportunities for staff.
– McMahon/Ryan Child Advocacy Site received $36,100 to make HVAC system improvements and install intercom equipment to increase safety measures.
– Mercy Works was offered $13,000 to develop and implement career and life-skill development programming for youth.
– Museum of Science & Technology (MOST) Foundation received $22,000 to purchase a permanent dinosaur exhibit and cafeteria seating for its new student dining space.
– National Math Foundation was allocated $20,000 to purchase marketing materials, supplies and refreshments for its Young Leaders United program. The program helps the United Way of CNY through donations, fundraising, volunteering, and advocacy.
– Onondaga Historical Association received $25,000 to conduct research, development, and artifact selection for the Brewseum, a museum on the brewing history in Syracuse and Onondaga County, located within the Iron Pier facility.
– Salvation Army of Syracuse was provided with $64,000 to renovate two elevators at its central office to provide visitors and staff with a dependable way to access the building.
– Skaneateles Festival received $16,500 to expand digital and social-media programs to improve audience engagement and customer relations.
– Syracuse City Ballet was allocated $20,900 to purchase office equipment and technology upgrades to operate more efficiently.
– Syracuse International Film Festival received $18,000 to support the 2019 October film festival. The purpose of the festival is to help increase civic participation and community vitality by opening up the world of film literacy to the Central New York community.
– Syracuse Stage was offered $25,000 to make Federal Communications Commissions (FCC)-mandated upgrades that include re-banding and replacing wireless devices for hearing impaired patrons.
– Town of Nelson received $20,000 to create an Americans with Disabilities Act (ADA)-compliant multi-use trail that will provide the public with access to the Nelson Swamp Unique Area.
– YMCA of the Greater Tri-Valley – Oneida was allocated $18,000 to support for HVAC renovations and upgrades.
The Central New York Community Foundation is a public charity established in 1927 that collects contributions from donors, manages and invests them to grow over time, and then distributes grants to local charities. It says it is the largest charitable foundation in Central New York with assets of more than $280 million and has invested more than $200 million in community improvement projects since its start.

MVP Health Care to administer behavioral-health services
SCHENECTADY — Health insurer MVP Health Care plans to “directly administer” case management, utilization review, claims payment, and network management for all of its New York members that use behavioral-health services. That service will start in early 2020, the Schenectady–based insurer announced July 10. Boston, Massachusetts–based Beacon Health Options has administered behavioral-health services for MVP
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SCHENECTADY — Health insurer MVP Health Care plans to “directly administer” case management, utilization review, claims payment, and network management for all of its New York members that use behavioral-health services.
That service will start in early 2020, the Schenectady–based insurer announced July 10. Boston, Massachusetts–based Beacon Health Options has administered behavioral-health services for MVP customers in New York since 2009.
Behavioral-health services could include mental health and substance-use disorder services.
The MVP announcement comes just over a month after health insurer Anthem Inc. (NYSE: ANTM) announced it had agreed to acquire Beacon Health Options. However, Christopher Del Vecchio, president and COO of MVP Health Care, told the Albany Times Union in a July 10 article that MVP’s decision had been under consideration for more than a year and wasn’t prompted by the acquisition news.
In addition, the Times Union article noted that a group of state behavioral-health agencies had told Crain’s New York Business that they had some payment issues with Beacon, but Del Vecchio said those concerns also weren’t a factor in MVP’s decision to bring the behavioral-health service administration in-house.

Del Vecchio is set to become MVP’s CEO on Sept. 1, replacing current CEO Denise Gonick, who is resigning.
MVP has a total membership of more than 700,000 people, including more than 600,000 in New York state, Michelle Golden, a PR staff person at MVP Health Care, said in an email response to a CNYBJ inquiry.
MVP Health Care noted in its release that, “on average,” 20 percent of its members have a diagnosed behavioral-health condition.
In addition, MVP customers with behavioral-health conditions can incur costs up to “six times more” than those without a behavioral-health diagnosis; and integrating behavioral and physical health care “significantly improves outcomes and lowers costs.”
MVP contends that its new health initiative will “empower primary-care and behavioral-health professionals to succeed at integrating patient care.”
Pending regulatory approval, when MVP assumes the administration of all services from Beacon Health Options, MVP’s behavioral-health network will include personalized service and support directly from the health insurer.
Behavioral-health providers will benefit from a new structure that lets them treat their patients “holistically,” and that “streamlines their reimbursements,” MVP contends.
MVP says it is working with Beacon Health Options to ensure that all areas of care delivery transition over well. Through the remainder of this year, as MVP builds its own behavioral-health network comprised of Beacon’s current providers and other services “deemed essential to MVP’s integrated-health vision,” members’ current 2019 benefits will not be affected.
A “fragmented” health-care delivery system has kept behavioral health and physical health apart, and as a result, the system has “lost sight of the fact that behavior often drives the morbidity of medical conditions,” MVP Health Care stipulated in its release. Fragmentation also contributes to “poor accessibility, less robust outcomes, and higher medical costs.”
“Our new streamlined approach to providing behavioral-health services will allow us to look at a patients’ entire continuum of care and evaluate the best way to improve their overall health and well-being,” Dr. Bruce Himelstein, chief medical officer at MVP Health Care, said. “Putting the patient back at the center of our health-care system is vital to improving outcomes and by implementing this new initiative, we will provide comprehensive, high quality care to our members.”
MVP Health Care operates a Syracuse office at 333 West Washington St., an Endwell office at 3660 George F Highway, and another location at 421 Broad St. in Utica, per its website.
Study: Number of workers eligible for health coverage at work rises
A new study from the Employee Benefit Research Institute (EBRI) finds the number of workers eligible to receive health insurance through their job rose from 2014 through 2018, despite offer rates from employers “slowly declining.” The Employee Benefit Research Institute says it is a nonprofit research institute based in Washington, D.C., that focuses on health, savings,
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A new study from the Employee Benefit Research Institute (EBRI) finds the number of workers eligible to receive health insurance through their job rose from 2014 through 2018, despite offer rates from employers “slowly declining.”
The Employee Benefit Research Institute says it is a nonprofit research institute based in Washington, D.C., that focuses on health, savings, retirement, and financial security issues.
The EBRI issue brief, “More Workers Eligible for Health Coverage Despite Lack of Growth in Employer Offer Rates,” examines how the availability of employment-based health insurance has been changing. It also looks at how the availability may have been affected by the Affordable Care Act (ACA) of 2010 (Obamacare), as well as the Great Recession of 2007–2009 and the subsequent economic recovery.
“Despite the lack of an increase in offer rates, the percentage of workers eligible for health coverage through their job continued its upward trend,” Paul Fronstin, director of the health research and education program at EBRI, said in a news release about the research. “Between 2014 and 2018, the percentage of workers eligible for health coverage increased from 75.4 percent to 78 percent. We believe this increase is likely due to changes in the composition of the work force. We found a shift to full-time employment, fewer workers considered low-wage, and a shift to larger firms.”
Affordable Care Act impact
The ACA requires employers with 50 or more employees to either offer health-insurance coverage or pay a penalty. Employers with fewer than 50 employees are exempt from this provision. However, the law includes a number of provisions intended to make it easier for small employers to obtain coverage for their employees, including insurance-market reforms, the Small Business Health Options Program (SHOP) or health-insurance exchanges, and small employer tax credits.
Obamacare also required that individuals have health-insurance coverage or pay a penalty, though the Tax Cuts and Jobs Act of 2017 eliminated the financial penalty for not having health insurance starting in 2019.
HRA effect
The EBRI issue brief also explores the future implications of the Trump Administration’s final rule to expand the use of stand-alone health-reimbursement arrangements (HRAs) by employers of all sizes.
HRAs are employer-owned and funded accounts that help workers pay for qualified medical expenses not covered by their health plans.
Under the final rule, employers would be able to offer a stand-alone HRA that employees could then use to purchase health insurance in the non-group market. The HRA would have to be used to purchase ACA-compliant plans and would have to meet ACA-affordability requirements in order for the employer to meet the shared-responsibility requirement.
The HRA would not be subject to ERISA if certain conditions were met and there is no limit to the amount of money that an employer can contribute to an HRA. ERISA is short for the Employee Retirement Income Security Act, “a federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry to provide protection for individuals in these plans,” per the website of the U.S. Department of Labor.
The Trump Administration expects about 800,000 employers will offer stand-alone HRAs by 2024 and beyond. As a result, some 10.7 million individuals would be covered by such an HRA by 2027 and 6.8 million fewer workers (and their dependents) would have traditional employment-based health coverage.
“Ultimately, employers may decide that they no longer need to offer health benefits to be competitive in the labor market during the next recession, and the combination of the insurance-market reforms and the ability to give workers tax-free money to purchase health insurance on their own may finally put the future of employment-based health coverage to the test,” said Fronstin.
Contact Reinhardt at ereinhardt@cnybj.com
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