Stay up-to-date on the companies, people and issues that impact businesses in Syracuse, Central New York and beyond.
M&T outstrips pledge to ramp up small-business lending
M&T Bank exceeded a promise it made last year to boost small-business lending, it said today. The Buffalo–based bank increased small-business lending by $196 million
Baldwinsville business owner wins pitch competition
BALDWINSVILLE — The owner of a Baldwinsville–based business was one of 30 winners of the Make Mine a Million competition in New York City. Kelli
Centro wheeling out new buses in Syracuse
SYRACUSE — Centro is taking 56 new buses to the streets of Syracuse. The new vehicles use compressed natural gas (CNG) for power and are
Upstate Economy Pays the Price for Health-Care Law
On March 21, 2010, the U.S. House of Representatives passed the President’s health-care bill by just seven votes. Two days later, the president signed the bill into law. As a result of this law, medical-device companies will be required to pay a 2.3 percent tax on the sales of medical devices beginning in January 2013.
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On March 21, 2010, the U.S. House of Representatives passed the President’s health-care bill by just seven votes. Two days later, the president signed the bill into law. As a result of this law, medical-device companies will be required to pay a 2.3 percent tax on the sales of medical devices beginning in January 2013. Recently, Welch Allyn, a global medical device and solutions company headquartered in Skaneateles, announced that it would lay off 275 employees, or 10 percent of its work force, over the next three years as a direct result of this new tax.
This tax, one of 21 in the president’s health-care law, unfairly burdens medical-device companies and, as demonstrated by Welch Allyn, will drive jobs from our local community. During these challenging economic times, the government should be implementing policies that help the economy grow jobs and keep American workers employed. The medical-device tax is an egregious, misguided policy that damages the Central New York economy and negatively affects our local community.
Members of the House of Representatives rightly recognized the impact that the tax will have on the medical-device industry and, in June of this year passed H.R. 436, on a bipartisan basis, to repeal the tax. The Senate has failed to take up the bill for consideration.
The medical-device tax is a clear example of the detrimental effect the health-care law is having on businesses and hard-working Americans across the country. It also makes a strong case for why health-care reform, while undoubtedly needed, cannot be achieved in a massive 2,000 page bill. Reforms must be developed incrementally so that we ensure we are not further burdening small businesses and are actually increasing access to quality, affordable health care.
Last April, President Obama signed into law H.R. 4, which repealed the Affordable Care Act’s (ACA) 1099 reporting requirement for small businesses. At the time, I commended him for doing the right thing. Once again, the U.S. Senate and president have an opportunity to stand for small businesses and repeal another onerous aspect of the ACA, the medical-device tax. I have urged President Obama and Senate leadership to pass this vitally important legislation and sign it into law before this tax does any further damage.
No nation has ever taxed itself into prosperity, but with the implementation of the medical-device tax looming, we now see that a nation can tax people into unemployment. As I said in one of my recent town hall meetings, as a member of Congress, if something is not good for your district, you do not vote for it. It’s that simple, because at the end of the day, this is not about politics; this is about saving upstate New York jobs. It is about investing in American manufacturing; it is about protecting small businesses and health-care providers. Most importantly, it is about saving lives. We must repeal this ill-considered tax and keep our medical-device companies, like Welch Allyn, alive and prospering.
Ann Marie Buerkle (R–Onondaga) represents the current 25th Congressional District of New York, which will become the 24th District. The new district encompasses all of Onondaga, Cayuga, and Wayne counties, and part of Oswego County.
Do you get tired of politicians talking about how many jobs they have created? Or how few jobs their opponents have created? The president claims his administration has created so many million jobs. And Gov. Romney says his policies will create so many million jobs. They speak rubbish. If government creates a job, it does
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Do you get tired of politicians talking about how many jobs they have created? Or how few jobs their opponents have created? The president claims his administration has created so many million jobs. And Gov. Romney says his policies will create so many million jobs.
They speak rubbish.
If government creates a job, it does so with money it takes from someone. It takes it from individual taxpayers. It takes it from businesses — as taxpayers.
What do you suppose people and businesses would have done with the money that government took? Would they have baked it into casseroles? People would have spent it, which would have created jobs. People would have invested it, which would have produced jobs. Businesses would have done the same, thus creating jobs.
But they did not, because government took that money and tried to create jobs with it. There have been many studies that have concluded this: Government is the least efficient in creating anything, including jobs. Individuals and businesses are far more efficient than government. So why not leave more money with them? And stop taxing it away?
The best way government can help an economy is by getting out of the way of its people. By getting off their backs. By truly reducing the regulations and red tape.
This is not brain surgery. Everywhere you look, government slows business. It impedes business. It does not mean to, but it does.
You want to make a few bucks braiding hair for your neighbors? Hey, you could start a business braiding hair. Nope, it’s against the law. You must take some courses, get a certificate, and pay for a license — to braid hair.
You want to leave your job to start a business? You don’t dare, because you would have to leave your health insurance behind.
Who says you cannot take it with you? Government.
Why is basic health care so expensive? Because governments insist that health-insurance policies cover 10,000 different ailments and services. You ought to be able to pick and choose from basic ingredients in a policy. Maybe you don’t want to pay for coverage of illnesses and diseases that only a tiny number of people get. Well, there ain’t no maybes. Governments force you to pay.
And, governments won’t allow a less costly policy from Idaho to be sold to you in New York. All this government interference makes insurance too expensive — for employers, for small-business owners. These are the people we expect will create jobs for us.
Here is another reason your business will cost more than it should. You have to pay huge amounts for liability insurance. Why huge? Because government won’t reform the laws that let people sue you for millions when they stub their toes on your sidewalk.
In thousands of ways, government impedes business. And thereby, it lowers the growth of our economy and the growth in the number of jobs.
The politicians jabber on about jobs, jobs, jobs. The best thing they can do for jobs in this country is to shrink, shrink, shrink government. Trim its tentacles, and get it out of the way of thousands of corners of the economy where it impedes.
From Tom…as in Morgan.
Tom Morgan writes about financial, political, and other subjects from his home near Oneonta, in addition to his radio shows and new TV show. For more information about him, visit his website at www.tomasinmorgan.com
Mackenzie Hughes seminar tackles election-year HR headaches
DeWITT — Business human-resources departments should be ready to head off potential problems resulting from this year’s heated political-campaign period, attendees of a recent Central New York seminar heard. “It’s election season,” said Christian Jones, a partner in Mackenzie Hughes LLP’s business department. “Along with that season can come some difficult issues for employers with
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DeWITT — Business human-resources departments should be ready to head off potential problems resulting from this year’s heated political-campaign period, attendees of a recent Central New York seminar heard.
“It’s election season,” said Christian Jones, a partner in Mackenzie Hughes LLP’s business department. “Along with that season can come some difficult issues for employers with respect to politics in the workplace.”
Jones spoke at a Labor Law Review seminar that his Syracuse–based law firm held at Drumlins Country Club in the town of DeWitt. Nearly 30 people attended the event.
A common question tied to the political-campaign period is centered on free speech, Jones said. Freedom of speech does not necessarily apply to employees expressing political views in the workplace, he continued.
“First Amendment rights apply to governmental actions,” Jones told attendees. “As a private employer, you can, generally speaking, prohibit political speech in the workplace.”
Public-sector employers face a trickier situation, he added, as employees of governmental agencies have greater First Amendment protections. But public-sector workers still don’t have the right to disrupt their workplace, harass fellow employees, or antagonize other staff members.
Both public and private employers can step in when an employee is harassing or antagonizing others, Jones said. Private employers even have the right to lay down policies against political discussions in the workplace if they see political discussions getting out of hand.
“Not everyone wants to go that far, and, let’s be honest, a lot of people can discuss political issues in a completely civil manner,” Jones said. “At a minimum, if someone’s viewpoints and activities are getting to the point where it’s interfering with work, it’s interrupting your whole process, it’s infringing upon your business objectives, you have the right to take some type of disciplinary action.”
Jones cautioned employers to be careful when taking such action, however. Enforcement of policies against harassing others must be evenhanded, he said. Employers should not act only against workers who do not share their own political points of view.
Later, Jones talked about political campaigning. Private employers can generally restrict political campaigning at work, he said. Employee handbooks commonly have rules against solicitation and distribution during work hours and in work areas — rules that would cover such actions undertaken as part of a campaign, he said.
Again, he stressed the importance of across-the-board enforcement of such rules.
“You can’t just enforce it with respect to campaign materials and union materials,” Jones said. “You have to prohibit all solicitations during working times and in work areas.”
Picking and choosing which distributions to ban would make a no-distribution rule invalid, he added. If it were applied only to union materials, it would be considered an unfair labor practice by the National Labor Relations Board, Jones said.
State law does prohibit employers from acting against employees for their legal political activities away from work, according to Jones. Unless a political activity could cause a material conflict of interest related to the employer’s business, an employer cannot discipline a worker for running for public office, campaigning for a candidate, or participating in fundraising activities away from the office.
Another state law entitles employees to take time off from the job so they can vote if they do not have sufficient time to do so outside of working hours. The rule only comes into play if an employee does not have four straight hours before work or after work when the polls are open.
An employee can take off as much time as he or she needs to vote, but employers can ask for an explanation of why the time is needed. Employees can take off as much time as they can justify. And up to two hours of that time off must be granted with pay, according to Jones.
Employees wishing to take time off to vote have to inform employers between two days and 10 days before the election, Jones said.
“You probably have some type of bulletin board with all of your notices up,” he said. “It’s probably a good idea to do a posting [of this law.] And you have to do it at least 10 days before Election Day.”
Other speakers at the seminar included Mackenzie Hughes business department partner Jacqueline Jones, who discussed National Labor Relations Board rules on confidentiality and investigations, and partner Mary Anne Cody, who covered regulations related to fees associated with retirement plans.
Contact Seltzer at rseltzer@cnybj.com
Mercer: Health-benefit costs in line for 6.5-percent rise
Employers anticipate the cost of health-insurance coverage will rise slightly faster in 2013 than it has in recent years, according to early results from an upcoming survey. The average per-employee cost of health coverage will rise by about 6.5 percent in 2012, preliminary responses to an annual health-benefits survey show. The human-resources firm Mercer is
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Employers anticipate the cost of health-insurance coverage will rise slightly faster in 2013 than it has in recent years, according to early results from an upcoming survey.
The average per-employee cost of health coverage will rise by about 6.5 percent in 2012, preliminary responses to an annual health-benefits survey show. The human-resources firm Mercer is conducting the survey and released its advance results on Sept. 11.
Health-insurance benefit costs posted an actual increase of 6.1 percent in 2011, Mercer found. Last year, its polling predicted a 5.7-percent increase for 2012.
The 2013 anticipated increase reflects responses submitted by about 2,000 employers nationally through Sept. 4. They are likely close to cost increases that will be felt in upstate New York, according to Thomas Flynn, a principal at Mercer’s Rochester office, which covers the Upstate region.
“I think when you look at percentages, we’re probably pretty close,” he says. “The average increase is similar, but we’ve got a lower starting point in most cases. Those premiums that you’re going to see [when the national survey is released] are much higher than we pay in upstate New York.”
Employers said health-benefit costs would increase by about 8 percent if they made no changes to their current plans. That’s slightly lower than the cost trend in recent Mercer surveys, which averaged 9 percent.
Health-benefit costs won’t be jumping by 8 percent in part because many employers are shifting costs to employees. More than half of employers, 58 percent, said they planned to hold down their own cost increases by shifting costs to employees.
“I think over the last couple of years people have tried to keep that as steady as possible just because of the state of the economy,” Flynn says. “Now people are saying, ‘I have to focus on the budget this year, and I’m going to have to take one of two actions to manage my costs.’ One is to pass them along to employees.”
The other strategy employers are using to blunt spiking health-insurance premiums is moving workers to high-deductible health plans (HDHP), Flynn says. Those plans, which carry deductibles in the thousands of dollars, are typically paired with health-savings accounts or other medical-spending accounts controlled by an employee.
“These are things people have been saying they’re going to do and haven’t done for the last four years,” Flynn says. “This year people actually pulled the trigger because it fits nicely with a longer-term health-reform strategy.”
Setting up HDHPs as a base plan allows employers to offer their workers health insurance that will meet affordability requirements under the federal health-care reform law, according to Flynn. And many employers use some of the cost savings from HDHPs to make contributions to employees’ medical-spending accounts. Employees who directly control part of their medical spending could have an incentive to manage their health better, he adds.
But it’s important that employees in HDHPs know that preventive care like a physical is covered in full even before they reach their deductible, Flynn says.
“You go to any [company] and you’ll have a few employees who think, ‘I’m not going to get a physical done, I’m fine and I don’t need to pay $150,’ ” he says.
Early survey results also found that few employers are ready to stop offering health plans after the federal reform law is fully in place. Just 6 percent of large employers with 500 or more employees said they would terminate coverage, and 16 percent of small employers with 10 to 499 employees said they would do so.
Mercer’s full survey will likely come out within a few weeks of Thanksgiving, Flynn says. It will include responses from 2,700 employers and will break data down by region of the country.
Mercer has 20,000 employees in over 40 countries. It is a wholly owned subsidiary of New York City–based Marsh & McLennan Cos. (NYSE: MMC).
Contact Seltzer at
rseltzer@cnybj.com
EBRI: Consumer-driven health plan members growing more content
Satisfaction with consumer-driven health plans is trending up, even as contentment with traditional plans wanes. Those findings are part of a report from the Washington, D.C.–based Employee Benefit Research Institute (EBRI). They come from an analysis of the 2011 EBRI/MGA Consumer Engagement in Health Care Survey, as well as annual versions of that survey dating
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Satisfaction with consumer-driven health plans is trending up, even as contentment with traditional plans wanes.
Those findings are part of a report from the Washington, D.C.–based Employee Benefit Research Institute (EBRI). They come from an analysis of the 2011 EBRI/MGA Consumer Engagement in Health Care Survey, as well as annual versions of that survey dating back to 2005.
EBRI defined consumer-driven health plans, or CDHPs, as insurance plans that have deductibles of at least $1,000 for individuals or $2,000 for families. To qualify as a CDHP in the report, a plan also had to be paired with an account like a health-savings account or health-reimbursement arrangement that plan members could use to pay medical expenses.
Plans labeled as traditional coverage featured either no deductibles or deductibles below CDHP levels. They were not paired with health-savings accounts or health-reimbursement arrangements. Plans falling under that definition include health-maintenance organizations, or HMOs, preferred-provider organizations, or PPOs, and other managed-care plans, according to EBRI.
Satisfaction with those traditional plans has eroded since 2005. The portion of survey respondents listing themselves as extremely satisfied or very satisfied with their overall traditional plans slipped from 61 percent in 2005 to 57 percent in 2011.
CDHPs, on the other hand, did an increasingly better job of satisfying consumers over the seven-year period. Just 41 percent of
survey respondents said they were extremely or very satisfied with their CDHPs in 2005, a reading that rose to 46 percent in 2011.
The diverging trends are likely due to changes in out-of-pocket costs, according to Paul Fronstin, director of EBRI’s Health Research Education Program and author of the report. Those with traditional health insurance feel changing out-of-pocket costs more directly than those with CDHP-linked spending accounts, he says.
“The difference is that you’ve got an account,” Fronstin says. “People build up account balances, and over time they’re less sensitive to costs.”
EBRI’s surveys show satisfaction with CDHP out-of-pocket health-care costs rising over time. Just 18 percent of CDHP members were extremely or very satisfied with those costs in 2005, but 24 percent were in 2011.
Over the same time frame, satisfaction with traditional plans’ out-of-pocket costs moved in the opposite direction. In 2005, 45 percent of survey respondents were extremely or very satisfied with their out-of-pocket costs, compared with 41 percent in 2011.
Plan members have also grown happier with the quality of health care they receive under CDHPs. While 63 percent were satisfied with their CDHP health-care quality in 2005, 71 percent were satisfied in 2011. Satisfaction with traditional plans’ health-care quality, on the other hand, remained relatively flat. It notched 70 percent in 2005 and 71 percent in 2011.
“Back in 2005 and 2006, just about everybody in these CDHP plans were in one for the first time,” Fronstin says. “Whereas now they’re not so new anymore, they’re not as confusing.”
Although CDHPs are satisfying members at a higher rate than before, traditional plans still have higher overall satisfaction readings, Fronstin points out. And CDHPs continued to stoke higher levels of dissatisfaction, he says.
In 2011, 17 percent of CDHP members were not too satisfied or not at all satisfied with their plans, down from 26 percent in 2005. Yet a mere 10 percent of traditional-plan members voiced those levels of dissatisfaction with their health insurance in 2011, and only 8 percent did so in 2005.
Similarly, CDHP members were less likely to recommend their health plan to others or stay with it if given the opportunity to change plans.
In 2011, 41 percent of CDHP members said they would recommend their plans to others, which is lower than the 49 percent of traditional plan members who said they would do so. Meanwhile, 49 percent of CDHP members indicated they would stick with their current plans if given a chance to change, compared to 58 percent of traditional-plan members.
Fronstin has yet to find a reason for that discrepancy.
“I’m not sure what to make of that difference,” he says. “It’s something that I still find interesting.”
EBRI also broke out a third type of plan in its report — plans it dubbed high-deductible health plans, or HDHPs. Members falling into that category had insurance similar to CDHP members, but without paired accounts for health spending.
HDHP members expressed lower satisfaction across the board. For example, 37 percent were satisfied with their overall health plan in 2011, but that was up from just 31 percent in 2005.
Members without spending accounts are likely to feel more pain paying their deductibles, according to Fronstin.
“The biggest number of people who don’t get health benefits from work and get them directly from an insurance company are going to be in HDHPs,” he says. “They may be out of work. It may be the only thing they can afford. Some of them are eligible for an HSA and never opened one, which would imply they don’t have the money to do so.”
Contact Seltzer at rseltzer@cnybj.com
How to Get the Most Out of Your New Hires From Day One
Many companies struggle with designing the right programs to effectively orient employees to the many facets of their roles. Follow these tips, and you’ll be armed with actionable strategies to obtain the peak performance you desire and deserve, straight out of the gate. Start the process before “Day One” Day one can be overwhelming
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Many companies struggle with designing the right programs to effectively orient employees to the many facets of their roles.
Follow these tips, and you’ll be armed with actionable strategies to obtain the peak performance you desire and deserve, straight out of the gate.
Start the process before “Day One”
Day one can be overwhelming for new hires and a waste of your time and theirs if you’re not prepared for them. Contact your new hires prior to day one to communicate what they can expect on the first day. If possible, have them come into the office in advance to cover guidelines, fill out the necessary HR paperwork, and get set up with IT.
This way, the first day isn’t filled with unnecessary down time and waiting. By getting them set up ahead of time, you establish respect for everyone’s time.
Engage your employees on day one
Every position has its share of mundane tasks. But day one is not the time to throw them all at your new employee. First impressions matter, particularly for members of Generation Y (also known as millennials) who make decisions about whether or not to stay with a company long-term during their first days on the job.
Reinforce that they have made the right decision to work for you by getting them contributing right away. Give new employees a task on their first day that allows them to use their brain and tap into their creativity — whether it’s researching a venue for an upcoming event or allowing them to sit in on a brainstorming meeting with you.
Showing new hires that they are important and that you value their contributions will also inspire productivity and loyalty toward your business.
Be a mentor, and help them foster relationships
First-day lunch is one of the most important experiences to get right for new employees. It can solidify that they are a culture fit or reinforce that they are not.
To encourage the former, set your new hires up to have lunch with colleagues or if it is appropriate, take them to lunch yourself. After day one, make it a regular occurrence to ask new hires about their working style and how you can support them in their position. Let your new employees get to know you too. Being a mentor is a two-way relationship. When you act as that mentor for your employees, particularly your young professionals who may be in their first job, you are inviting them into the company family.
You have the opportunity to create a significant, long-lasting, positive impact on your new hires by following these simple and effective tips. The most important thing is that you get to it by day one.
What are your strategies for making day one a success for you and your new hires? How do you get your newest employees oriented, integrated, and delivering results as efficiently, effectively, and energetically as possible?
Alexia Vernon is an author, speaker, certified coach, and trainer who specializes in helping organizations recruit, retain, educate, and grow their young professional work force. This article was provided by and is reprinted with the permission of Liverpool–based Contemporary Personnel Staffing, Inc.
$250K gift to support scholarships at OCC
SYRACUSE — A gift from Syracuse Orthopedic Specialists (SOS) will help create new student scholarships at Onondaga Community College (OCC). SOS is giving the college
Stay up-to-date on the companies, people and issues that impact businesses in Syracuse, Central New York and beyond.