Is Government Doing Enough to Support the Business Community?   For many business owners, the day-to-day concerns of running the business are top priority.  Often, these entrepreneurs overlook the exterior forces that can have a profound effect on the health of the business, from government regulations to the ongoing strife between insurance providers.  Recent years have seen the emergence of independent “watchdog” organizations that have monitored these factors, including the SMC Business Councils.  Tom Henschke, the President of SMC Business Councils, joins The American Entrepreneur, Ron Morris, to discuss how the dispute between Highmark and UPMC affects health insurance costs for Western Pennsylvania business owners, as well as his recent trip to Washington, DC to discuss ways government can better support businesses.   To Listen to the Recording of Henschke on TAE Radio

SMC Welcomes New Chairman and Board Members!

Please join us in welcoming SMC’s new Chairman Dan Galbraith as he takes the lead for our organization.  Dan officially accepted the chairmanship at the Chairman’s Reception on Tuesday, September 6, 2011 at the Green Oaks Country Club from outgoing Chairwoman, Cookie Driscoll. 

“Dan has the creativity, expertise, and know-how to lead SMC through the challenging times ahead.  We are pleased to welcome him aboard,” stated Henschke.  Prior to his election as Chairman, Galbraith served on a number of committees, including the Executive and Communications Committees.  He has been a member of SMC since 2004. 

Along with our new Chairman, please also welcome our newly elected Board Members George Halula (re-elected), Glen Maus (re-elected), John Nikoloff (re-elected), Eric Riske (returning), Christine Simcic, Bill Ringle, Dave Carlson, Brian Stein, and Larry Rife. 

Let us also honor our outgoing Chairwoman Cookie Driscoll for her tireless dedication throughout the past two years.  “Cookie has navigated SMC Business Councils through complex economic times, as well as changing political tides.  Her skilled leadership will be truly missed,” commented SMC Business Councils’ President Tom Henschke.  Prior to being Chairwoman, Driscoll had served on various committees, including the Executive and Government Relations Committees.

Other retiring Board Members include: William J. Snyder, William J. Snyder, CPA, Board Member from 2005-2011, served on the Finance, SMC Ambassadors, and Government Relations Committees, and assisted with the Ask the Expert Helpline Panel/Accounting; Nancy Wintner, GWN Consulting, Board Member from 2006-2011, served on the Communications and SMC Ambassadors Committees, and assisted with the Ask the Expert Helpline Panel/Marketing; and Chuck Wozniak, KCB Associates, Board Member from 2008-2011 and served on the Finance Committee.

Below are photos from the Chairman's Reception on September 6, 2011:

At SMC Headquarters … We’re Working for You!

Over the past few months, SMC Business Councils has been busy working on a number of health care issues that may affect our members across Pennsylvania.  (Other issues we are tackling for our members include tax reform, regulatory reform, tort reform, and manufacturing issues.  We will keep you posted on our progress on those fronts in the months to come.)  We wanted to make you aware of our recent efforts and assure you that we are working for our members and their businesses.   If you have a concern that we might be able to assist you with, be it health care related, human resources, government relations, or communications efforts, please call our Pittsburgh Office at 412-371-1500 or our Harrisburg Office at 717-761-1660.  Remember, we are working for you!

SMC President Tom Henschke Speaks on Behalf of Small Businesses to the PA House of Representatives Insurance Committee on the UPMC/Highmark Provider Contract Dispute 

On Thursday, August 25, 2011, SMC Business Councils President Tom Henschke testified at the Allegheny County Courthouse in Pittsburgh, PA on behalf of Pennsylvania small businesses before the Pennsylvania House of Representatives Insurance Committee.  He relayed his concern about provider contract issues and insurance options with regard to the disputes currently taking place between UPMC and Highmark, Inc.

When asked what Henschke thought SMC’s small business  members need, he stated, “Our members need clarity and a timely resolution.  They are very concerned about a disruption in medical care and losing long-standing relationships with physicians.”

After opening remarks by Rep. Curt Sonney, Chairman Tony DeLuca, Rep. Mike Turzai (Rep. Floor Leader), and Rep. Frank Dermody (Dem. Floor Leader), testimonies were given by Jeffrey A. Romoff, President & CEO, and W. Thomas McGough, Jr., Senior Vice President & Chief Legal Officer, of the University of Pittsburgh Medical Center.

UPMC says it has no plans to negotiate with Highmark.  “Because Highmark has abandoned its neutrality as the region’s gatekeeper for healthcare, UPMC cannot and will not renew the contracts that allowed Highmark to maintain its dominance in this market,” Romoff stated.  “UPMC will not renew its contracts with Highmark. This is not a negotiating ploy, but rather in inevitable decision dictated by the realities of competition.”

With those comments stated, the floor was then turned over to Highmark, Inc. as President & CEO Kenneth R. Melani, M.D., Executive Vice President of Health Services Deborah L. Rice, and Vice President of Government Affair Michael G. Warfel gave compelling testimony on behalf of their company. 

“Our goal is to reach an agreement with UPMC that achieves a delicate balance: We want to fairly reimburse UPMC to provide proper quality care for the millions of members that we serve, but we also must maintain comprehensive and affordable health benefit programs for our customers.  UPMC, however, has demanded unacceptable reimbursement rates that would translate into significant increases in health care costs for the community, and significant increases in local insurance premiums,” stated Melani.

Addressing the packed audience, questions and answers followed each party’s testimony as they explained their issues and concerns.  Final testimonies were heard from Christine Whipple, Executive Director of Pittsburgh Business Group on Health, Gary Hunt, Esq. and Mark T. Vuono, Esq., from the Allegheny Bar Association, and SMC Business Councils President Tom Henschke. 

During the Executive Deputy Insurance Commissioner Randy Rohrbaugh testimony, he directed all to who were in need of further assistance or those who had health care questions to the newly created toll-free hotline (1-877-881-6388).  The hotline was set up to provide an avenue for individuals to voice their concerns directly to both Highmark and UPMC.  As the Executive Deputy Insurance Commissioner stated, “It is the consumer’s voice that should be heard loudest by both parties.”

For more information on this event, please contact Communications Editor Annette M. Testa at annette@smc.org. 

SMC Hosts Town Hall Meeting with UPMC and Highmark to Discuss Impact of Contract Dispute on Small Businesses 

On Thursday, August 18, 2011, SMC Business Councils hosted a Town Hall Meeting between representatives from the University of Pittsburgh Medical Center (UPMC) and Highmark, Inc. to discuss provider contracts and insurance concerns. 

After a brief introduction by SMC Business Councils President Tom Henschke, the floor was turned over to James L. Fawcett, Senior Vice President of PA Sales and Client Management, of Highmark, Inc.  Diane P. Holder, Executive Vice President, President of Insurance Services Division, and President and CEO, and Gregory K. Peaslee, Senior Vice President and Chief Human Resources and Administrative Services Officer, then spoke on behalf of UPMC.

“SMC Business Councils was the only organization that was able to get both parties together to discuss the issues,” commented Henschke.  Henschke arbitrated the discussion between the two for-profit entities and took questions and comments from the audience of nearly 100 SMC members. 

Members asked about the future of their health care and voiced their health care concerns, such as “What kind of coverage would patients with pre-existing conditions have?”, “Will patients be able to pick the doctor of their choice?”, and “What will this do to the future of health care in our region?”

Although questions were answered by both sides, the attendees were disgruntled with UPMC when they stated that they have no plans to negotiate with Highmark.

Fawcett in turn prompted those in attendance to contact their legislative officials in an effort to make their voice known.  To do so, members should go to www.congress.org, punch in your zip code to find the name of your elected official, and send that official comments on the issue.

For more details on this event or to voice your concerns, please contact SMC Business Councils Communications Editor Annette M. Testa at annette@smc.org. 

SMC President Tom Henschke Attends Health Insurance Exchanges Stakeholders’ Forum to State SMC’s Position

On Tuesday, August 9, 2011, SMC Business Councils President Tom Henschke gave comments to the Health Insurance Exchanges (HIE) Forum at the Doubletree Hotel Pittsburgh/Monroeville Convention Center.  This forum, and two others that were also held this month in Philadelphia and Harrisburg, were conducted by Pennsylvania Insurance Department Commissioner Michael Consedine and key staff in an effort to gain insight into the health care and insurance concerns of small businesses.  

HIE are a website where individuals and small employers will be able to buy health insurance products sold by insurance companies.  The Affordable Care Act anticipates that every state will have a health insurance exchange certified by January 2013 and ready to provide coverage by January 2014.

Henschke was one of more than 30 stakeholders that spoke at the forum. He detailed a list of concerns from SMC members, including: the need for the state to set up the exchange, not federal government, with state-wide control rather than regional exchanges; the ability for small businesses to determine their best health insurance solutions; the creation of a self-sustaining exchange with no cost to small business if they chose not to participate; the establishment of an advisory council for the HIE that is restricted to key stakeholders; and the utilization of private sector solutions that support the existing roles of insurers, brokers/agents/trade associations, and health care providers.   

The Pennsylvania Insurance Department has posted videos from the Pittsburgh and Philadelphia Stakeholder Forums to their website. To access the videos, please click on the link below:

www.portal.state.pa.us/portal/server.pt/community/health_insurance/9189/pa_health_options/982060

You will find two separate videos for each meeting—one for the morning session and one for the afternoon session.  Please remember that the videos may take several minutes to download.  

For more details on this topic or to voice your concerns, please contact SMC Business Councils Communications Editor Annette M. Testa at annette@smc.org.

SMC Met with the Pennsylvania Insurance Department and The Governor’s Office on Health Insurance Exchanges 

On Thursday, April 21, 2011, SMC Business Councils President Tom Henschke and Government Relations Manager Eileen Anderson met with PA Insurance Commissioner Michael Consedine, Deputy Insurance Commissioner Randy Rohrbaugh, four representatives from the Pennsylvania Insurance Department (PID), Deputy COS Todd Shamash, and Deputy Secretary of Legislative Affairs Aaron Shenck, who is also from the Governor’s Office. 

SMC launched its opening salvo in a bid to get small business input into the construction of the Health Insurance Exchanges (HEI), which must be operational by 2014. If HIE are not properly set up, small businesses will suffer.  SMC’s positions on HIE include:

• They must not limit small business choices
• They must not increase small group insurance rates
• They should contain separate risk pools for individuals and small groups
• They must help small employers with the purchase of health insurance
• They must not create another layer of government bureaucracy and expense
• Advisory council should be restricted to key stakeholders, especially small business

For more details on this topic, please contact SMC Business Councils Communications Editor Annette M. Testa at annette@smc.org.

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