Lerner Center adds “Monday Mile” walking loop around St. Joseph’s Hospital

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SYRACUSE — A group of employees at St. Joseph’s Hospital Health Center on Aug. 4 participated in a noon-hour walk in a designated area around the hospital’s campus and its surrounding neighborhood. The “Monday Mile” loop around St. Joseph’s joins 14 similar pathways near Syracuse City Hall, the Near West Side, and on the Syracuse […]

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The “Monday Mile” loop around St. Joseph’s joins 14 similar pathways near Syracuse City Hall, the Near West Side, and on the Syracuse University (SU) campus, SU said in a news release.

The St. Joseph’s trail winds its way through North Side neighborhoods and the business district along North Salina Street.

The Monday Mile is a way to help people “kick start” their fitness for the week, Thomas Dennison, director of the Lerner Center for Public Health Promotion, said while speaking to reporters outside St. Joseph’s on Monday.

Dennison is also a professor of practice, public administration, and international affairs at SU’s Maxwell School of Citizenship and Public Affairs.

“It’s a structured opportunity for people to take some time out of their day using Monday as the day that many people decide to go on a diet or begin exercising,” said Dennison.

If people start exercising, perhaps they’ll stick with it for the whole week and the rest of their lives, he added.

“… because we know that exercise and movement has a direct relationship to good health,” said Dennison.

Each trail is designated with a sign.

“Every loop is about one mile, and they go in a loop so people can follow the signs really easily and get 20 minutes or so of exercise in just by following the signed trail,” he said.

St. Joseph’s believes that improving the community’s health is where health care “needs to start,” Kathryn Ruscitto, president and CEO of St. Joseph’s Hospital Health Center, said in speaking with reporters.

“There’s so much that we do very well to treat illness. We want to get further upstream and engage with people in their communities, in their workplaces to understand all those things to improve health,” said Ruscitto.

The “Monday Mile” is part of Healthy Monday, an initiative of the Lerner Center for Public Health Promotion at SU’s Maxwell School.

The Healthy Monday effort is focused on creating healthy communities and reducing the burden of chronic disease by getting people active, helping them eat healthier, and learn strategies to better manage stress.

“It’s the brainchild of a gentleman in New York City, Sid Lerner. We’ve had a Lerner Center here in Syracuse for the last three years,” said Dennison.

The Lerner Center has a mission “to improve the health of the community through service, research, education, advocacy, and policy,” according to the SU news release.

The center works in partnership with organizations across campus and in the community to implement the Healthy Monday campaign.

Contact Reinhardt at ereinhardt@cnybj.com

Syracuse startup launches wellness platform

Employee Benefits & Human Resources, Health Care, Small Business, Subscriber Only

SYRACUSE — 3Pound Health, a health and wellness software company, recently released its Euco personal health-manager platform, the next step in the company’s goal to help doctor’s more effectively communicate with patients in order to generate lasting health changes. Euco is a patient-engagement platform comprised of a clinician-focused web application that connects to a corresponding

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Euco is a patient-engagement platform comprised of a clinician-focused web application that connects to a corresponding mobile app for patients called the Euco Personal Health Manager. The platform allows clinicians to put advice in their patients’ hands every day while also giving insight to how well patients are adhering to doctor’s orders.

Euco allows clinicians to “coach” patients in five key areas: nutrition, activity, medications, measurements, and labs, Katie MacIntyre, marketing and PR manager at 3Pound, says in an email. “The platform provides a simple way to put clinician advice in participants’ hands everyday while providing a secure connection for encouragement and support between face-to-face interactions.”

The company was founded in 2012 and has an office in Syracuse’s Technology Garden.

3Pound’s initial target market is surgical and non-surgical obesity-treatment programs, MacIntyre says. The estimated medical cost of obesity is expected to hit $200 billion this year .More than one-third of U.S. adults are classified as obese, according to the Centers for Disease Control and Prevention. It’s estimated that less than 4 percent are actively being treated by a physician for their obesity, MacIntyre says. And even for those receiving treatment, it’s a struggle to support patients outside the office, making it difficult for those patients to continue making positive changes. That’s where Euco can come into play, providing that tool for doctors to check in with patients, make recommendations, and make sure patients are following up on them.

The company is marketing Euco along three different avenues, MacIntyre says. 3Pound is engaging its target market by attending, exhibiting, and speaking at key obesity-related conferences. The company will participate in the American Society of Bariatric Physicians Annual Conference in Texas Sept. 10-12, the MedTech 2014: Redefining Innovation in the Face of Healthcare Reform event in Albany Sept. 15-16; and Obesity Week in Boston Nov. 2-7.

“We also just kicked off a digital campaign to drive our audience from targeted digital ads and social media to landing pages that offer more information about Euco and the opportunity to contact us for a live demo,” MacIntyre says.

3Pound is also focused on developing research studies involving Euco. “We would like to publish research that helps validate our software and adds credibility to our sales efforts,” she says.

Community engagement is the third marketing element. “We are working on a community initiative to make Euco available for community partners such as universities and health organizations to trial the software and see how it works for their programs,” MacIntyre says. “We are also engaging with universities to connect with local talent and to support programs that need host companies for research and internship opportunities.”

3Pound will generate its revenue from health and wellness companies that will, in turn, offer Euco to their patients. Companies will pay a nominal training and implementation fee and then a volume-based per-participant fee, MacIntyre says.

Workplace wellness & growth
While the company is targeting the medical weight-loss market initially, the Euco platform is designed to support broader initiatives including efforts such as workplace-wellness programs. 3Pound has already begun development strategic relationships with program providers and population health software partners to accelerate its entry in that market, MacIntyre says. “Our intention is to provide market-leading patient-engagement tools for broad use in population health management,” MacIntyre says.

Growth will primarily be in the customer-support area, she says, as the company begins to hit its sales goals. She declined to provide sales projections. As the company’s sales grow, she expects employment will grow as well. 3Pound’s staff has already increased from two employees to 12 over the past year.

3Pound Health (www.3poundhealth.com) is the vision of Dr. Robert Corona, a John Bernard Henry professor and chairman of pathology and laboratory medicine at Upstate Medical University, and Dr. Wendy Scinta, chief medical officer of 3Pound and board certified in obesity medicine and family medicine, in cooperation with Jud Gostin, CEO of Aspen Hollow Ventures, LLC. Gostin was formerly the longtime president and CEO of Sensis Corp. before retiring. All three serve on 3Pound’s advisory board.

Brian J. Buys is president and CEO of 3Pound Health.

Contact The Business Journal News Network at news@cnybj.com

WellTrail strives for growth in Central New York, Midwest

Employee Benefits & Human Resources, Health Care, Small Business, Subscriber Only

VAN BUREN — WellTrail, Inc., a Van Buren–based health and injury-management services company, is aiming for additional growth in 2015, both in Central New York and in its service area in the Midwest. “My goal is to finally market [locally],” says Kelli LaPage, founder, CEO, and sole owner of the WellTrail, Inc. “I haven’t marketed

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“My goal is to finally market [locally],” says Kelli LaPage, founder, CEO, and sole owner of the WellTrail, Inc. “I haven’t marketed here.”

The firm works with companies of all sizes and demographics to determine the best options to help employees improve or sustain “optimal” health, she says.

“A component of that is certainly what a lot of people think of as traditional wellness, but WellTrail takes that a number of steps further,” says LaPage.

LaPage operates the firm from her home in the town of Van Buren to lower the cost of doing business.

She spoke with the Business Journal News Network on Aug. 1

WellTrail currently services more than 30 companies and about 4,800 lives in seven states, including New York.

In Central New York, WellTrail’s clients include the Syracuse–based law firm Hancock Estabrook, LLP and Syracuse–headquartered Anoplate Corp., which provides metal-finishing services to industry.

WellTrail in 2012 expanded its service area to include work with Zeigler Cat, a Minneapolis–based Caterpillar construction-equipment dealer with locations in Minnesota, Iowa, Wisconsin, and Missouri.

LaPage has worked with the Caterpillar dealerships since her days at Blue Bell, Pa.–based Wellness Coaches USA, a firm she worked at in the mid-2000s in capacities that included regional operations and sales manager.

WellTrail generated revenue of more than $500,000 during 2013, and LaPage projects the firm will increase its revenue to about $750,000 in 2014 and possibly eclipsing the $1 million mark in 2015, she says.

To reach that $1 million revenue figure in 2015, LaPage wants her client growth to include additional companies in both parts of WellTrail’s current service area.

She believes her firm has “brand awareness” in Central New York, but she won’t be surprised if the growth results from the company’s work with Zeigler Cat.

“I do foresee that a good chunk of this expansion will come from actual Caterpillar dealerships and they’re across the country,” says LaPage.

WellTrail is currently in talks with four additional Caterpillar dealerships for service in 2015, she adds.

WellTrail has also hired a business-development specialist in the Midwest, where it offers more full-time WellGuide service, says LaPage.

“I’m searching for [a similar service] here locally to get some partners to help us with that [in Central New York],” she adds.

About the company
WellTrail offers health-risk assessments, biometric screenings, wellness-credit programs, injury-prevention services, injury-management services, educational services, wellness challenges, customized progress reporting, and consulting services through people it calls WellGuides.

WellGuides are health-care professionals who can assist employees following wellness programs with one-on-one guidance, support, and motivation.

“We only employ medical professionals, so my staff is exercise physiologists, licensed athletic trainers, physical therapists, physical-therapy assistants … people with certifications and licenses in the medical field,” says LaPage.

WellTrail employs six WellGuides, with all but one serving in a full-time capacity. The employee count doesn’t include LaPage, she says.

Half of the employees service dealer locations for Zeigler Cat, she says.

Beyond the employees, WellTrail also operates with independent contractors, interns, and graduate assistants, says LaPage.

Contact Reinhardt at ereinhardt@cnybj.com

Slowdown in health spending led by sluggish economy, not health reform, Health Affairs study finds

Employee Benefits & Human Resources, Health Care, Subscriber Only

About 70 percent of the recent decline in health-care spending growth from 2009-2011 was due to the economic downturn, and not because of other factors such as health-care sector responses to the Affordable Care Act. That’s according to a news release from the Health Care Cost Institute, citing a new study published in the August

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The Health Care Cost Institute says it was launched in 2011 to “promote independent, nonpartisan research and analysis on the causes of the rise in U.S. health spending.”

As the economy recovers, spending on health care is likely to increase at a faster pace, conclude the study authors, David Dranove, Craig Garthwaite, and Christopher Ody of the Kellogg School of Management at Northwestern University.

“The source of the slowdown in health care spending growth, and whether this slowdown will continue, has been much debated,” Dranove, a professor at the Kellogg School of Management at Northwestern University, said in the news release. “Our analysis shows that the slowdown was mostly due to the sluggish economy, not to structural change in the health care sector. The Affordable Care Act may ultimately succeed at reducing costs, but it hasn’t done so yet.”

The Northwestern researchers are among the first to pinpoint the effect of the economic slowdown on health-care spending for the privately insured, working-age population, the Health Care Cost Institute news release stated. The academics examined private insurance-claims data covering 2007-2011 from the Health Care Cost Institute (HCCI), which represents the health-care spending of nearly 47 million people with employer-sponsored insurance in all 50 states.

From 2009-2011, health-spending growth for this population slowed by 2.6 percentage points from the previous two years. By calculating the overall decline in employment during this period, the study authors predict that health-spending growth would have been 1.8 percentage points higher if the economy had not faltered in 2008. Thus, they concluded that 70 percent of the decline in health-care spending growth resulted from the stagnant economy, the HCCI release said.

“There has been disagreement over the years as to whether health spending is recession proof. This study shows it’s not,” said Garthwaite, an assistant professor at the Kellogg School of Management.

The analysis, which focuses on privately insured individuals, highlights that the slowdown in health spending was not caused solely by individuals who lost their jobs and employer-provided health insurance, the news release stated.

“Even individuals who retained insurance during the downturn reined in their health spending. This demonstrates the broad effects of a recession on health spending,” said Garthwaite.

The researchers compared health spending in areas of the country affected by the economic downturn with parts of the economy that were largely unaffected. Insured people living in the hardest-hit areas faced the smallest increases in health spending.
For example, from 2008-2009, Las Vegas, Nev. — a particularly hard-hit region — experienced a 5.6 percentage point decline in the fraction of residents working, the release noted. From 2007 to 2011, health spending in Las Vegas increased 5.4 percent. In contrast, Trenton, N.J. experienced a 1.6 percentage-point decline in the fraction of residents working and a 29 percent increase in health spending.

The Kellogg School of Management at Northwestern University is an academic partner of HCCI.

HCCI said it currently holds one of the largest, private, health-insurance claims databases available for public reporting and academic-research purposes.

“The majority of Americans have private insurance, so understanding their health spending patterns is critical to understanding what influences national health care expenditures,” HCCI Executive Director David Newman said in the release.

The full study by the Northwestern researchers can be found and accessed at: http://content.healthaffairs.org/content/33/8/1399.abstract

Mercer launches “Mercer Benefits U” total wellness campaign

Employee Benefits & Human Resources, Health Care, Subscriber Only

The global human resources and employee-benefits firm Mercer recently announced that it has launched “Mercer Benefits U” (www.MercerBenefitsU.com). It says the initiative is a new “total wellness” education campaign for employees whose retirement and health plans it administers. Mercer, which serves the upstate New York market through its office near Rochester, defines total wellness as

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Mercer, which serves the upstate New York market through its office near Rochester, defines total wellness as a “holistic approach” to managing one’s health, wealth, and wellbeing.

Featuring a college-campus visual theme and app-like functionality developed especially for mobile devices, Mercer Benefits U offers interactive “courses” in three different schools: The School of Retirement, School of Health, and School of Total Wellness, according to a Mercer news release. By engaging with educational “courses” such as “Diversification 101,” “Saving for Health Care,” and “Intro to Flexible Spending Accounts,” employee “graduates” learn strategies for taking greater control of their overall well-being, including their physical and financial health, Mercer contends.

Employees are increasingly seeing the importance of planning for health-care costs in retirement as a key part of getting ready for their post-work years. The most-recent Mercer Workplace Survey found that 86 percent of employees say they need to save more for retirement because of rising health-care costs, while 34 percent consider doing so a “major” savings objective. That has doubled since 2007, according to Mercer. At the same time, a substantial majority of employees believe they bear primary responsibility for both their retirement income (84 percent) and their retiree health expenses not covered by Medicare (71 percent).

“Mercer Benefits U is our latest in a series of interactive tools and educational programs that help employers better ensure that their employees are able to live, work and retire well,” Rich VanThournout, partner in Mercer’s benefits administration business, said in the news release. “It also directly addresses … the undeniable shift of accountability from employer to employee self- sufficiency. As employees are asked to plan and direct their careers, retirement, and overall wellbeing, employers need to ensure that they have access to help and guidance through resources…”

Mercer has 20,000 employees based in more than 43 countries and the firm operates in over 130 nations. Mercer is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), which has 55,000 employees worldwide, and annual revenue exceeding $12 billion.

PPI survey shows trends in nonprofit employee-benefit plans

Employee Benefits & Human Resources, Health Care, Nonprofits, Subscriber Only

PPI Benefit Solutions says its fourth annual Nonprofit Employee Benefits Study reveals that despite challenges, private nonprofit employers remain committed to delivering health and welfare benefits to their employees but are seeking solutions to help manage costs and improve employee engagement. PPI Benefit Solutions (PPI), a provider of benefits-administration technology and services with more than

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PPI Benefit Solutions (PPI), a provider of benefits-administration technology and services with more than 40 years experience working with nonprofit organizations, recently released the results of fourth edition of the Nonprofit Employee Benefits Study, which measures and tracks benchmarks of private, nonprofit employee-benefit plans.

The study results indicate a growing trend toward consumer-driven options (such as high-deductible health plans) and online employee self-service tools as employers try to curb rising premiums and cut administration costs while continuing to offer competitive benefit programs, according to a news release.

The nationwide survey, completed by more than 250 small- to mid-sized nonprofit organizations last November, found that the use of traditional “medical” plans has declined from 96 percent in 2009 to nearly 84 percent in 2013. Meanwhile, the use of high-deductible health plans (HDHPs) has nearly doubled, rising from 22 percent in 2009 to 43.5 percent in 2013, according to PPI. At the same time, employers are offering more voluntary benefits to help subsidize the higher deductibles and offer employees more choice.

“Nonprofits are really struggling to maintain a comprehensive benefits package, and consumer-driven plans like HDHPs, health savings accounts, and flexible spending accounts can be great, lower-cost options,” Karen Greco, director of marketing for PPI Benefit Solutions, said in the news release. “The growth in these plan types, combined with the appeal of a predictable benefits budget, is also driving a lot of interest in alternative funding and enrollment solutions like defined contribution with an online marketplace that offers a wide array of product options.”

To address issues of efficiency, more nonprofit employers are recognizing the value of automated benefits administration and enrollment, as indicated by the 77 percent of employers (up from 28 percent in 2012) who consider benefits-administration platforms to be very important and the 44 percent of employers (up from 10 percent in 2012) who believe employee self-service portals to be very important, PPI said.

“Although the nonprofit sector has been somewhat slow in adopting employee self-service enrollment, the number is steadily growing,” Greco said. “We see it in our own business, as year after year more nonprofit employers recognize how online, employee-directed enrollment improves accuracy, transparency, and engagement and provides employees with a greater understanding of their benefit options.”

As the health-care marketplace continues to evolve, nearly 85 percent of nonprofit employers remain committed to delivering health and welfare benefits to employees in order to improve satisfaction and maintain a competitive advantage for talent, PPI contends.

The key findings of the Nonprofit Employee Benefits Study include the following.

Prevalence of benefits (percentage of nonprofit employers who offer):
83.6 percent offer traditional medical plans (down from 87 percent in 2012)
43.5 percent offer HDHPs (up from 39 percent in 2012)
88.7 percent offer group dental (down from 90 percent in 2012)
59.1 percent offer ancillary coverage (up from 46.5 percent in 2012)
Voluntary benefits (percentage of nonprofit employers who offer):
20.3 percent offer voluntary dental (up from 17 percent in 2012)
49.7 percent offer voluntary life (up from 43 percent in 2012)
9.6 percent offer critical illness insurance (up from 6 percent)
34.5 percent offer accident insurance (up from 34 percent in 2012)
24.3 percent offer transit reimbursement (up from 17 percent in 2012)
Contribution strategies:
16.1 percent of nonprofit employers pay the full cost of health insurance
74.8 percent share the cost of health insurance between employer and employee
21.9 percent already use or are likely to use a defined contribution funding approach
Benefits administration:
77.2 percent of nonprofit employers view benefits-administration platforms as very important
44.3 percent believe employee self-service portals are very important (up from 9.6 percent in 2012)
14.5 percent of nonprofit employees utilize employee self-service (up from 8.8 percent in 2012)
Health-care reform:
16.2 percent of nonprofit employers are moderately to very likely to discontinue health-care coverage and send employees to a public, state, or federal exchange
60.5 percent of nonprofits have not calculated the cost of compliance with Affordable Care Act regulations
Private-exchange marketplace:
15.8 percent of nonprofit employers are somewhat to very likely to begin offering benefits through a private exchange
47.6 percent would consider using a private exchange if they had more information

PPI Benefit Solutions says the full report is available at www.ppibenefits.com/public/resources/research.aspx.

I Don’t Have Any Competition … or Do I?

Business Mentors, Small Business, Subscriber Only

Often, business owners will say a variation of, “Well, at least there is no one who is doing exactly the same thing I am. That’s what competition is, right?” Not necessarily. It’s impossible to run your business successfully in a vacuum; someone out there is going to attempt to one-up your idea. That’s the philosophy

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Often, business owners will say a variation of, “Well, at least there is no one who is doing exactly the same thing I am. That’s what competition is, right?” Not necessarily.

It’s impossible to run your business successfully in a vacuum; someone out there is going to attempt to one-up your idea. That’s the philosophy this country was founded on: free enterprise. And, that is why your business adviser will prompt you to find your niche and stick to it. Build on your strengths.

You cannot, however, stick your head in the sand and ignore your direct and indirect competitors. In the world of small business, we refer to these folks as “your new best friends.” You must keep them in your sights constantly to provide your business the edge it needs to survive and flourish.

Your direct competitors will be the most obvious to identify — they are offering the exact product or service you are, in the same manner. These competitors are targeting the identical customers that your business is seeking.

Meanwhile, your indirect competitors will be providing the same product/service in a slightly different way, or related products in the same way, or products complementing yours that could lead to eventually marketing the same products as your business. In my opinion, the latter indirect competitors present the biggest threat.

This premise may cause some raised eyebrows, but think about it. When you least expect it, the store with the complementary items will introduce your product as the next, and necessary, step in serving its customer base. While you were busy focusing on what your direct competitors were doing (hosting sales events, handing out tchotchkes, offering coupons) and directing your energies to thwart their efforts, your indirect competitors are sneaking into the forefront to become direct rivals.

Here are some recommendations to handle this threat:

1. Keep all possible competitors as close as you would good friends. In fact, think of them that way — know their locations, phone numbers, advertising techniques, promotional trends. Above all, know their customers. Where are these customers coming from, why do they shop with this competitor, and what are these customers seeking that you could be offering? Believe it, your competition is studying you in equal proportions;

2. Maintain records of your competition’s particulars and performance. Purchase that $1.49 binder and enlist the help of an employee or family member to gather all pertinent data on each competitor as well as local ads and promotions. Establish a page for each separate business or create a grid including all of them. Have the employee or relative visit the competitor’s business or call for service information in an effort to gain valuable insight into their next steps. You can position yourself to gain customer share by making your next move a step ahead of the competition. It just makes good business sense.

Nancy Ansteth is a New York State certified business advisor with the Small Business Development Center at Onondaga Community College. Contact her at anstethn@sunyocc.edu or (315) 498-6072.

True Community Relations — “Creating a Lovemark”

Business Mentors, Employee Benefits & Human Resources, Small Business, Subscriber Only

People get a certain feeling when they think about brands like Disney or Wegmans (Note: neither is a client of ours). That emotion is built proactively, consistently, and very intentionally by these companies. It takes their bands to a higher level — almost untouchable by any negative publicity. This success is founded in community relations

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This success is founded in community relations — what an organization does to engage with its local community, in ways that are mutually beneficial. And, it is a major component of your overall public-relations strategy.

Kevin Roberts, CEO of the advertising agency Saatchi & Saatchi, recently wrote a book called “Lovemark,” and if you get the chance, you should read it. Creating a “lovemark” is a concept that is intended to enhance, even replace, the traditional marketing of brands. It is exactly what it sounds like: adding an emotional component, specifically love, for your brand. And if successful, it tends to inspire “loyalty beyond reason.”

You can’t just sponsor a few community events or make some charitable donations. While those tactics do play a part in your overall community-relations plan, it’s important to find ways that truly make sense for your organization to be involved with the local community. What does your company offer in the regular course of business that would be of the most benefit to individuals or other organizations? And what other local organizations tie in with your own business goals and objectives? And how will this make people in the community start to see your brand as “human” and emotional?

Taking the first step to identify and define the best fit for your company in the community will make it much easier to execute this initiative and sustain its long-term success.

Are you being heard?

Crystal (Smith) DeStefano is the president and director of public relations at Strategic Communications, LLC, which says it provides trusted counsel for public relations, including media relations, employee relations, and community relations. Contact (Smith) DeStefano at csmith@stratcomllc.com

Employer Mandate Hits in 2015: Make Sure Your Business is Ready

Business Mentors, Employee Benefits & Human Resources, Health Care, Insurance & Financial Services, Law, Accounting & Taxes, Subscriber Only

If you were like most business decision-makers in the winter and spring of 2013, you were frantically trying to prepare for the implementation of the Affordable Care Act’s (ACA) employer-mandate provision that was set to go into effect Jan. 1, 2014. Business decision-makers at large employers across the nation heaved a collective sigh of relief

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Business decision-makers at large employers across the nation heaved a collective sigh of relief on July 2, 2013, when the U.S. Treasury Department announced that enforcement of the employer mandate would be delayed until 2015.

Our yearlong reprieve is almost at an end, however. Over the past 12 months, the U.S. Department of the Treasury has issued final clarifying regulations regarding the provisions of the mandate, which include yet another one-year delay in potential penalties for small employers. Whether your business is subject to the employer-mandate provision in 2015, or 2016, here is what you need to know to be prepared for this complex piece of legislation and to avoid unnecessary, costly penalties.

The employer mandate, often referred to as the “pay or play” mandate, establishes that large employers must offer the majority of their full-time employees, and their children, health-benefit coverage that is affordable and meets established minimum-value requirements, or else they may be subject to a financial penalty.

The first step in determining if your organization will be subject to the employer mandate is determining whether or not your business meets the definition of a “large employer.” While this determination will be obvious for some, ACA defines a large employer as an organization with at least 50 full-time and full-time equivalent employees during the preceding calendar year.

In this definition of a large employer, the Department of the Treasury recently established a transitional rule. For calendar year 2015 only, a large employer will be defined as having 100, rather than 50, full-time employees. This exception will only be granted to an organization, however, that did not reduce its workforce or overall number of workable hours simply to avoid incurring an ACA penalty, and that did not eliminate or materially reduce any health benefits that were in effect as of Feb. 9, 2014, (the date that the transitional rule was announced).

Employers with less than 100 full-time employees will not be subject to penalties in 2015, but they will still have to report information to the IRS regarding their number of full-time employees and the plan coverage made available to those individuals.

Defining a full-time employee
Once it has been determined that your organization meets the definition of a large employer, you should look to the ACA’s definition of a full-time employee. A full-time worker has been defined by the ACA as an individual who works an average of at least 30 hours per week (or 130 hours per month). This definition includes both work time and paid time off.

To ensure consistent calculation methods, the ACA has established two methods of determining full-time status: the monthly method, and the look-back method. Both options require detailed administrative monitoring of hours worked on an individual-employee level over a period of several months.

It is important to note that by defining a full-time employee as one working at least 30 hours a week, the employer mandate’s definition will supersede your organization’s existing definition of a full-time staffer. For organizations that previously defined full-time employees as those working 35 or 40 hours a week or more, this federal definition now increases the number of employees who must be offered health benefits.

For many employers — especially retailers, municipalities, and other companies reliant on a large part-time workforce — the financial impact of expanding health-plan eligibility could be significant. However, the cost of not providing adequate coverage to these individuals could be even more impactful, as it would come in the form of penalties established under the ACA.

The delay in the employer-mandate provision did not result in significant changes in the pay-or-play penalties themselves. As previously established under the ACA, two penalties could apply to employers who fail to meet the law’s requirements for offering affordable and adequate coverage. First, the “no offer penalty” is imposed when an applicable large employer fails to offer health coverage to substantially all full-time employees, and their children, and at least one full-time employee purchases health coverage on an exchange with premium assistance.

Subsidies are available for individuals whose annual household incomes are less than 400 percent of the federal poverty level. If only one of your firm’s full-time employees who, by definition of your health-benefit plan’s eligibility requirements, is not eligible for coverage but obtains a subsidy to purchase coverage on the exchange, your organization will be subject to the no-offer penalty.

The penalty is calculated on a monthly basis, and is equal to 1/12 multiplied by $2,000 for each full-time employee at your organization, less the first 30 fill-time employees. Since the penalty is not based on just the number of full-time employees who obtain subsidized exchange coverage, but on almost your entire full-time employee population, the penalty costs could be extremely significant.

There is a transitional rule for 2015 to continue to help employers make the administrative changes needed to avoid unnecessary penalties. For calendar-year 2015 alone, a large employer will be deemed as having offered health coverage to “substantially all” of its full-time employees, and will avoid the no-offer penalty, if it offers health benefits to at least 70 percent of its full-time employees, rather than the 95 percent previously described in the initial regulations. Employers that benefit from this transitional rule, should work with their benefits administrators or insurance carriers to make the eligibility requirements necessary of its health plan in order to meet the 95 percent requirement prior to 2016.

The second penalty established for large employers under the ACA is the “unaffordable or inadequate coverage penalty.” This penalty is imposed when an applicable large employer offers medical coverage that is determined, based on established minimum-value criteria, to be unaffordable or inadequate. Again, if only one full-time employee purchases health insurance on an exchange and obtains premium assistance, a penalty will apply.

The unaffordable or inadequate coverage penalty is calculated as 1/12 multiplied by $3,000, multiplied by each full-time employee that obtains premium assistance on an exchange. While the dollar amount for this penalty is more significant on a per individual level, unlike the no offer penalty, the unaffordable or inadequate coverage penalty is only imposed on just the number of full-time employees who purchase subsidized coverage on an exchange.

With the growing list of federal requirements for what each health plan must cover, compounded by the increasing cost of medical care itself, some employers have considered whether they would be better positioned financially to simply terminate their health-benefits plan and absorb the applicable penalties. If this thought has crossed your mind, consider the importance of health-benefit coverage from an employee recruitment and retention perspective. While the ACA’s exchanges have reduced the total number of uninsured Americans across the country, most individuals still value an employer that offers a comprehensive benefit package.

Employers have tools to limit health-benefit plan cost increases through a properly managed benefit plan. With a strategically administered health-benefit plan that complies with the provisions of the ACA’s employer mandate, you can still offer a plan that is affordable for your organization, and valuable to your employees and prospective employees. This will allow you to maintain a competitive position in the corporate marketplace.

Vanessa Flynn is POMCO Group’s vice president of client services. Contact her at vflynn@POMCOGroup.com or view additional blog posts on health-care reform at go.pomcogroup.com/blog

Organization tackles literacy issues in Mohawk Valley

Nonprofits, Small Business, Subscriber Only

UTICA — Imagine not knowing how to read. It’s probably more common than you think. In Herkimer and Oneida counties, nearly half of the residents suffer from low literacy skills, a fact that severely limits future growth and prosperity, according to the Literacy Coalition of Herkimer and Oneida Counties. The National Center for Education Statistics

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UTICA — Imagine not knowing how to read.

It’s probably more common than you think.

In Herkimer and Oneida counties, nearly half of the residents suffer from low literacy skills, a fact that severely limits future growth and prosperity, according to the Literacy Coalition of Herkimer and Oneida Counties.

The National Center for Education Statistics found that 11 percent of adults in Herkimer County lack basic literacy skills. In Oneida County, it’s 13 percent.

Basic skills range from being unable to read and understand any written information to being able to locate easily identifiable information in short, commonplace prose text in English, but nothing more advanced.

In response to the literacy problem facing adults, the Community Foundation of Herkimer and Oneida Counties (CFHOC), with Madison-Oneida BOCES, formed the Literacy Coalition of Herkimer and Oneida Counties in 2008.

“The community said this was important to us,” says Peggy O’Shea, president of the Community Foundation of Herkimer and Oneida Counties, on why the coalition was created.

The coalition is currently made up of more than 300 community members with the common goal of 100 percent literacy through 100 percent community engagement.

During its first few years, the coalition was led by a staff member of the CFHOC with collective community support and the CFHOC “provided backbone support,” says O’Shea.

Then, in an effort to push the initiative forward and increase awareness of local literacy issues, O’Shea says the coalition needed two things: a plan and its own staff person. In April, 2012, the coalition hired Lara Sepanski Pimentel as its first executive director. At the time, Pimentel was commuting from Utica to Syracuse to complete her master’s degree at Syracuse University’s Maxwell School. She graduated in June of that year, and began working full time at the coalition.

Before graduate school, Pimentel worked at the CFHOC as a program associate. In this role, about 25 percent of her workload was dedicated to the coalition, she says. While in graduate school, she was a fellow for the Community Foundation of Central New York in Syracuse, and spent time working with its Literacy Coalition of Onondaga County. By the time she was ready to return to her community, O’Shea says Pimentel was “really seasoned and educated” in the work of a literacy coalition.

The same year Pimentel was hired, the coalition created a community plan with help from a national consultant at the Literacy Powerline. The plan allowed for the coalition to formalize its structure and define its focus areas, which included improving school readiness, creating policies that embrace literacy as a foundation of success, and identifying performance indicators to measure success.

The Literacy Coalition of Herkimer and Oneida Counties is governed by an advisory board, and has eight volunteer action teams in relation to its focus areas.

Now, the coalition is housed at the United Way of the Valley and Greater Utica Area, which serves as Pimentel’s employer. While United Way does not grant money to the coalition, the United Way acts as the coalition’s fiscal sponsor by managing its funds and does not charge administrative fees to do so. With this arrangement, for example, all donation checks for the coalition would be made out to the United Way.

Prior to 2012, the coalition did not have its own operating budget. In 2012 and 2013, the CFHOC was the sole funder of the coalition. This year’s operating budget of $83,000 comes from M&T Bank/Partner’s Trust Bank Charitable Fund, a donor-advised fund of the CFHOC, and the CFHOC, says Pimentel.

Currently in the works
The coalition’s EZ Read book-sharing program, started last year, receives growing community interest. This program provides access to books in places where reading is not the main reason a person would visit the establishment, such as convenient stores, business, and government agencies.

The coalition held book drives to gather books to fill the shelves, resulting in thousands of new and used books donated. This year, the IBEW Local 43 built eight bookshelves for the program. At press time, the coalition has 27 EZ Read bookshelves located throughout the community.

To increase communication efforts, the coalition recently launched a “What’s Up” forum on its website. The forum, created by volunteer, John Sepanski (who’s also Pimentel’s father), allows for the action teams and volunteers to post updates regularly and have sidebar conversations about projects, instead of waiting for updates at monthly meetings or for Pimentel to send out mass emails of information.

On Sept. 25, the Literacy Coalition of Herkimer and Oneida Counties will host its first event fundraiser, Spell-A-Palooza: the Alexandra G. Kogut Literacy Fundraiser, held at Daniele’s at Valley View in Utica. The spelling-bee style event will pit adult local celebrities against 5th-grade students to raise money to support the efforts of the coalition and its partners.

As far as plans for the coalition to become its own 501(c)(3), Pimentel says it’s not in the works now, but the concept has been discussed. One of Pimentel’s concerns with the coalition becoming its own 501(c)(3), is that the area already has a huge number of nonprofits who are consistently tapping the same resources. “That’s not what we’re about,” says Pimentel. The goal, she says, is about being a resource to affect change in the community.

Originally from Whitesboro, Pimentel finds that working in her home community has become a valuable asset to her career. “It’s easier to work in a community when you live there. You have the history, know who’s who, have more help getting the work done …,” says Pimentel. When you know your community, she says, “you can have that much more of an impact.”

Contact Collins at ncollins@cnybj.com

————————————————————————————————–

Literacy Coalition of Herkimer & Oneida Counties
201 Lafayette St.
Suite 201
Utica, NY 13502
(315) 733-4691 x243
Litpower.org

Founded: 2008
Employees: 1 full time
Volunteers: 300
Service Area: Herkimer and Oneida counties

Mission: The Literacy Coalition of Herkimer & Oneida Counties says it connects organizations in the region to the funding, advocacy, professional development, and service support they need to increase the availability of high-quality literacy programs. Through collaboration, the coalition says it raises awareness of low literacy, provides links to available services, and encourages the residents of Herkimer and Oneida counties to become lifelong learners. The goal is that through these commitments, all residents will have the opportunity to fully participate in society and support their community as active citizens.

Programs and Services: EZ READ Community Bookshelves, Herkimer/Oneida Counties Leader of the Campaign for Grade Level Reading, Convener for Literacy, and literacy-support programs.

Recent Organizational Highlights: Two-time recipient of Duffy Books in Homes USA Bonus Books, allowing nearly 50,000 books to be taken home free by local school children. Grant recipient of funding from the Community Foundation of Herkimer & Oneida Counties (HOC) and the M&T Bank/Partners Trust Bank Charitable Fund. Grant recipient of funding from the Alexandra G. Kogut Memorial Fund of The Community Foundation of Herkimer & Oneida Counties. And, a 2014 recipient of the Childcare Council of Cornell Cooperative Extension’s “Friend of Children Award.”

Fundraising Outlook: Inaugural Alexandra G. Kogut Literacy Fundraiser: Spell-a-Palooza on Sept. 25, and Giving Tuesday event on Dec. 3. Fundraising goal is $15,000 for the rest of 2014.

Key Staff
Executive Director: Lara Sepanski-Pimentel

Advisory Board
Chairperson: David Manzelmann, M&T Bank
Burt Danovitz, private consultant
Brenda Episcopo, United Way of the Valley & Greater Utica Area
Barbara Henderson, Community Foundation of HOC
Mary Kline, Herkimer BOCES
Marj Moore, Herkimer County Community College
Kathleen Rinaldo, BOCES Consortium of Continuing Education

Financial Data: Fiscal year ending December, 31, 2013

Revenue
Community Foundation of HOC	$83,430
Events/Annual Celebration	$300
Total Revenue	$83,730

Expenses
Administrative	$71,721
Office	$885
Programs & Marketing	$2,768
Professional Development & Memberships	$4,161
Total Expenses	$79,085

Surplus for the year	$4,645

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