Upstate New York consumer sentiment tumbles in July

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International headlines overwhelmed the domestic economic storylines in July, leaving upstate New York consumers more hesitant than they’ve been in 2014 to spend money on big-tickets items. That’s the assessment of one analyst following the release of a monthly survey on confidence among New York consumers, including those in Upstate. Consumer sentiment in upstate New […]

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International headlines overwhelmed the domestic economic storylines in July, leaving upstate New York consumers more hesitant than they’ve been in 2014 to spend money on big-tickets items.

That’s the assessment of one analyst following the release of a monthly survey on confidence among New York consumers, including those in Upstate.

Consumer sentiment in upstate New York plummeted 8.2 points to 68.3 in July, according to the latest survey the Siena (College) Research Institute (SRI) released Aug. 6.

Upstate’s overall-sentiment index of 68.3 is a combination of the current sentiment and future-sentiment components. The region’s current-sentiment index of 77.3 decreased 6.4 points from June, while the future-sentiment level fell 9.3 at 62.5.

Upstate’s overall sentiment was 5.2 points below the statewide consumer-sentiment level of 73.5, which fell 5.3 points from June, SRI said.

New York state’s consumer-sentiment index was 8.3 points lower than the July figure of 81.8 for the entire nation, which slipped 0.7 points from June, as measured by the University of Michigan’s consumer-sentiment index.

The results for the July survey were “fairly dismal,” says Douglas Lonnstrom, professor of statistics and finance at Siena College and SRI founding director.

“I was actually quite surprised that they [the index figures] dropped so much,” says Lonnstrom.

At 73.5, New York’s consumer-sentiment level hadn’t registered that low since the 73.3 figure posted in November 2013, he added.

The economic news “wasn’t terrible” in July with the stock market climbing above the 17,000 mark, gas prices fell, and the economic forecasts weren’t “real bad,” says Lonnstrom.

“And yet every [sentiment] number is down [in the July survey],” he adds, noting index levels for the state’s regions and demographic groups, including gender, age range, income level, and political-party affiliation.

Lonnstrom contends the international headlines in Ukraine, including the downed Malaysian Airlines jet, and the ongoing conflict between Israel and Hamas “just kind of made consumers very uncertain and very worried.”

When compared with the previous three years, the state’s overall-confidence sentiment of 73.5 is down 1.9 points from July 2013 and July 2012, and has increased 10.5 points compared to July 2011, according to the SRI data. The sentiment index measured 64.3 in July 2009.

In July, buying plans were up 1.2 points to 13 percent for cars and trucks, increased 2.4 points to 22.1 percent for furniture, and rose 0.8 points to 5.1 percent for homes.

Buying plans fell 1 point to 33.1 percent for consumer electronics and slid 6.6 points to 14.3 percent for major home improvements.

Gas and food prices
In SRI’s monthly analysis of gas and food prices, 59 percent of upstate respondents said the price of gas was having a serious impact on their monthly budgets, which is down from 65 percent in June and 67 percent in May.

In addition, 51 percent of statewide respondents indicated concern about the price of gas, down from 54 percent in June and 58 percent in May, according to SRI.

“The gas price news was good [in July], and yet, the world news just overwhelmed it,” says Lonnstrom.

When asked about food prices, 68 percent of upstate respondents indicated the price of groceries was having a serious impact on their finances, down from 73 percent in June.

At the same time, 67 percent of statewide respondents indicated concern about the price of food, down 1 percentage point from June, according to the SRI data.

Food prices aren’t nearly as “volatile” as gas prices, says Lonnstrom.

“Gas is one commodity, so if I went in last week and it cost me $40 to fill my tank and this week, it cost me $50, I feel that and sense that,” he says.

In their trips to the grocery store, consumers are buying several items which may or may not have fluctuating prices. It takes “much longer” for an effect in the food-price chain to impact the numbers that much.

SRI conducted its survey of consumer sentiment in July by random telephone calls to 629 New York residents over the age of 18.

As consumer sentiment is expressed as an index number developed after statistical calculations to a series of questions, “margin of error” does not apply, according to SRI.

Buying plans, which are shown as a percentage based on answers to specific questions, have a margin of error of plus or minus 3.9 points.

Contact Reinhardt at ereinhardt@cnybj.com

FAA awards grant funding to five upstate regional airports

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The U.S. Department of Transportation’s (USDOT) Federal Aviation Administration recently awarded five regional airports grant funding for upgrades at each facility. The USDOT on July 31 awarded the Syracuse Regional Airport Authority a grant of $315,000. The Airport Authority will use the funding to acquire land-easement access to properties in close proximity to the airport

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The U.S. Department of Transportation’s (USDOT) Federal Aviation Administration recently awarded five regional airports grant funding for upgrades at each facility.

The USDOT on July 31 awarded the Syracuse Regional Airport Authority a grant of $315,000.

The Airport Authority will use the funding to acquire land-easement access to properties in close proximity to the airport to remove trees and ensure safe takeoffs and landings in accordance with federal law.

U.S. Representative Daniel Maffei (D–DeWitt) and Syracuse Mayor Stephanie Miner (D) announced the grant award in a news release Maffei’s office distributed July 31.

With this grant announcement, the federal government has awarded more than $6.3 million in funding for Syracuse Hancock International Airport since July 2013.

In addition to the Hancock Airport funding, the USDOT has also awarded the Oswego County Airport two grants totaling more than $569,000 to help “modernize” the facility.

The work will include upgrades to the taxiway, lighting, and wiring.

Maffei’s office also announced the Oswego facility grant awards in a separate news release that same day.

“This funding will help significantly modernize our airport, attract more travelers to Oswego County, and grow our local economy,” Bruce Bisbo, manager of the Oswego County Airport, said in the release.

This is the second grant the federal government has awarded the Oswego County Airport in less than a year.

Maffei’s office also announced more than $1.5 million in funding for the facility in August 2013.

U.S. Representative Richard Hanna (R–Barneveld) on his office’s Twitter feed on July 31 announced $6.2 million in federal grants for “needed upgrades” at Griffiss International Airport in Rome.

The airports in Salina, Volney, and Rome weren’t the only regional facilities benefitting from federal grant announcements.

The FAA also announced nearly $3 million for airports serving the Ithaca and Elmira–Corning areas.

U.S. Senators Charles Schumer (D–N.Y.) and Kirsten Gillibrand (D–N.Y.) made the announcement in a news release that Gillibrand’s office distributed on Aug. 1.

The FAA is part of the USDOT.

The Ithaca Tompkins Regional Airport will use more than $2.1 million in federal funding to expand the terminal apron and purchase snow-removal equipment, the lawmakers said.

The facility will use more than $1.6 million of that amount to expand the apron to provide more parking for the aircraft.

The airport will increase the size of its de-icing area so it can treat several aircraft at one time, which will lead to “more efficient travel times,” according to the lawmakers’ news release.

Ithaca Tompkins will use the remaining $477,000 for snow-removal equipment, the news release said.

Its current equipment is 18 years old and reaching “the end of its lifespan,” the lawmakers said.

“Both of the grants will make travel significantly more efficient, especially during the winter,” Bob Nicholas, manager of the Ithaca Tompkins Airport, said in the news release.

Besides the funding for Ithaca Tompkins, the Elmira Corning Regional Airport will use $720,000 in federal funding to purchase an aircraft rescue and firefighting truck.

Elmira Corning Regional Airport has accommodated “dramatic” passenger growth over the last five years, Ann B. Crook, director of aviation at the Elmira Corning Regional Airport, said in the release.

“We now offer direct flights to Chicago, Detroit, Philadelphia, Orlando, and St. Petersburg with a nearly all-jet fleet,” said Crook.

The federal government awards the funding through the Airport Improvement Program (AIP), which the FAA administers.

The AIP awards grants to public agencies for the planning and development of public-use airports that are included in the National Plan of Integrated Airport Systems (NPIAS).

The government draws funds obligated for the AIP from the Airport and Airway Trust fund, which user fees, fuel taxes, and other similar revenue sources support, the senators said.

Contact Reinhardt at ereinhardt@cnybj.com

PAR Technology reports net loss, lower revenue in Q2

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NEW HARTFORD — PAR Technology Corp. (NYSE: PAR) on July 31 reported a net loss from continuing operations of $519,000, or 3 cents per share, in the second quarter that ended June 30. That figure compares to net income of $248,000, or 2 cents a share, during the same quarter in 2013, according to PAR

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NEW HARTFORD — PAR Technology Corp. (NYSE: PAR) on July 31 reported a net loss from continuing operations of $519,000, or 3 cents per share, in the second quarter that ended June 30.

That figure compares to net income of $248,000, or 2 cents a share, during the same quarter in 2013, according to PAR Technology’s earnings news release.

The firm generated revenue from continuing operations of $57.4 million, down from $59.5 million in revenue generated during the year-earlier quarter, the company said.

Based in New Hartford, PAR provides hardware and software to the hospitality industry. PAR’s government business offers computer-based system design, engineering, and technical services to the U.S. Department of Defense and various federal agencies.

Lower revenue in PAR’s government segment, due to the timing of “certain task orders,” affected the quarter’s results, Ronald Casciano, president and CEO of PAR Technology, said in the news release.

“Our bottom line results were impacted by the continuing investments in our hospitality segment and specifically regarding our next generation hotel products.

However, we continue to make progress on executing that investment strategy and are making important strides towards broadening our customer base as well.

While certainly not satisfied with our results, we remain confident in our market opportunities and our leading technology and services in our hospitality and government segments,” said Casciano.

Conference-call comments
On the firm’s earnings conference call that same morning, Casciano indicated he was “encouraged” to report revenues in PAR’s hospitality business were up compared to the same time period in 2013 and 15 percent higher compared to the previous quarter, which he described as “sluggish.”

He reiterated that a “key” element of PAR’s strategy is to diversify its “go-to-market” activities toward a “broader” range of prospective customers.

“During the quarter, we experienced positive signs this strategy is gaining momentum, as our worldwide-dealer network revenue grew 48 percent over last year.

Our dealers were successful in selling our products, not only to restaurants, but other entertainment venues, including casinos and cinemas,” Casciano said in his remarks during the conference call.

He also noted that PAR’s “largest allocation” of new product investments is on the hotel side of the hospitality segment.

“Although the adoption rate for ATRIO has been slower than anticipated, we are continuing building our base and successfully deployed the system to a number of customers this quarter,” said Casciano.

ATRIO is a hospitality-management product.

In PAR’s government segment, the firm generated revenue of $19.5 million, a decline of 11 percent from the second quarter in 2013, he said.

“This decline in revenue was expected and is primarily attributed to the timing of requirements and task orders associated with our Eagle Intel-X ISR integration contract [with the U.S. Army] and due to the completion of additional technical-services contracts,” Casciano said.

PAR has a contract with the U.S. Army Research Development and Engineering Command (or DECOM) Natick Contracting Division to provide Intelligence Surveillance and Reconnaissance (ISR) technologies and services in support of the Eagle Intel-X effort, according to its website.

The company also continues to monitor the impact of federal-budget cuts on its government segment. But it does remain “confident” that the revenue decline is “simply a timing issue,” as the U.S. Department of Defense remains “consistent” with funding focused upon ISR initiatives in the Pentagon, said Casciano.

In Casciano’s closing remarks, he noted that PAR’s continued investment in next-generation products for its hospitality business is “impacting” its bottom-line results.

The firm remains “encouraged” in its cloud products, ATRIO and SureCheck, which are drawing “interest” from prospective and existing customers, according to Casciano.

SureCheck is a product that targets food safety in the restaurant portion of its hospitality business.

“We are regaining positive momentum in our restaurant business with the release of PAR Tablet 8 and by the accelerated growth in our distribution-channel business,” he said in his closing remarks.

PAR Tablet 8 is a point-of-sale tablet that restaurants can use.

PAR’s government segment “exceeded” the company’s internal plan, and the firm remains “confident” in its “go-forward strategy” in the segment.

“Our financial condition remains strong and we expect to utilize that strength to enhance our business opportunities within both segments. We expect that our company will return to profitability in the second half of the year,” Casciano said.

Contact Reinhardt at ereinhardt@cnybj.com

State approves SUNY Oswego campus plan for START-UP NY

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OSWEGO — Empire State Development has approved the plan by the State University of New York at Oswego (SUNY Oswego) for the START-UP NY initiative. Empire State Development is New York’s chief economic-development agency. The approval means the university can begin reviewing applications from businesses interested in partnering with it in START-UP NY, SUNY Oswego

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OSWEGO — Empire State Development has approved the plan by the State University of New York at Oswego (SUNY Oswego) for the START-UP NY initiative.

Empire State Development is New York’s chief economic-development agency.

The approval means the university can begin reviewing applications from businesses interested in partnering with it in START-UP NY, SUNY Oswego said in a news release.

The initiative provides incentives for qualifying businesses to relocate or expand through affiliations with colleges and universities.

Companies will have the chance to operate free of state and local taxes on or near academic campuses. Their employees will pay no state or local income taxes for 10 years.

In return, the businesses must add new jobs, providing an “economic lift” to the surrounding community without endangering nearby competitors, SUNY Oswego said.

SUNY Oswego’s newly approved plan designates more than nine acres of land and nearly 10,500 square feet of office space as START-UP NY tax-free zones for business development.

Its initial efforts to attract new or expanding businesses include parcels along Route 104 near Romney Field House and near the Lake Ontario shore to the west of the main campus in Oswego. In addition, the plan includes space in the SUNY Oswego Phoenix Center and in the Syracuse Tech Garden, the school said.

SUNY Oswego’s START-UP NY plan also lists future parcels and office spaces that the college may seek to designate as tax free.

They include land in Oswego’s Intermodal Center and Port Expansion Center; the city’s Lake Ontario Industrial Park; the Oswego County Industrial Park in the town of Schroeppel; along with space in SUNY Oswego’s Mackin Hall and in office buildings around the city and county.

“Advancing our academic mission while creating jobs for our region is an exciting opportunity for our college, which is already an economic anchor in Central New York and the largest employer in Oswego County,” Deborah Stanley, president of SUNY Oswego, said in the news release.

SUNY Oswego plans to target “innovation-oriented” industry sectors, including advanced manufacturing, robotics, information technology, automation-control systems, sustainable and green processes, energy-related manufacturing, electronics and computer software, telecommunications, and telemedicine.

Following Stanley’s approval, SUNY Oswego will submit partnership proposals to Empire State Development for final approval, the school said.

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

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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.

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