Monday, January 12, 2015

Credit Cards/Senator Seat


It is estimated that one quarter of all credit cards are owned in the US.  It is also estimated that one half of credit card fraud and theft is from US cards.  This is because the US has been slow to adopt chips in their credit cards which are certainly more secure.

In October 2015, credit card companies like Visa, Master Card, American Express Discover, etc. will be issuing new cards with the smart-chip technology, thus passing on the liability for fraud and theft to businesses who do not have the technology in place to accept smart-chip cards.  Keep in mind, it is not mandatory to have smart-chip credit card readers, but again the business will have the liability if they don't use them.  If you have the technology in place and a customer swipes a card that uses the old magnetic strip technology and it is stolen, you will not be liable.
There is a cost for using this technology.  See below for links.


http://www.usatoday.com/story/tech/2015/01/06/chip-and-pin-credit-cards-computer-security/21008389/

https://www.chasepaymentech.com/faq_emv_chip_card_technology.html

Gavin Newsom announced today that he will not be entering his name for retiring Senator Barbara Boxer’s seat. Clearly this makes Kamala Harris the front runner if she decided to run.

Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA  94116
shauge@cal-insure.com
415-680-2188 

Thursday, January 08, 2015

ACA/Businesses paying for individual coverage on Exchange/CALGOLD

Many of the Republicans in Congress are looking to eliminate the Affordable Care Act, or at least weaken it.  They are trying  to do so at the Supreme Court.  The Court has agreed to hear a case revolving around whether the federal government can allow subsidies to individuals when their state has opted not to set up its own Exchange.  Clearly this is not applicable in California, but it is a big issue nationally.
They are also trying to do this in Congress.  A bill will be moving forward in the House to change the definition of full time work from 30 hours to 40 hours.  The President has given the indication that he will veto this.  It appears at this time it will have the votes in the House and can stop a filibuster.  It does not appear, however, to have the votes to override a veto.

The other day I was talking to a small business owner who said he dropped his group health insurance telling employees to go to Covered California and get individual  subsidized coverage.  He indicated he would pay for this and the employee would get coverage on a pretax basis.  I suspect there are a lot of small businesses that have done this.  The problem is that it is illegal according to the IRS.  Not only can employers not pay for this, they can't even talk about it.  You can increase the salary of an employee but cannot require they buy coverage and certainly not with pretax dollars.

If you are looking to see what requirements a city or county has for businesses, take a look at  
www.calgold.ca.gov.  It will prompt you to select the city and then ask what type of business you have.  Not all cities are listed but it may be a good resource for you.

The trivia for the day is that it is Elvis Presley 80th birthday today!


Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA  94116
shauge@cal-insure.com
415-680-2188 

Tuesday, January 06, 2015

Cyber Attacks/Return to Work/People who have helped small business

Many small business owners believe that only larger companies are subject to cyber-attacks.  A 2014 study by Symantec revealed that 61% of all targeted attacks are on small and midsize businesses. This is up 13% from a study done in 2013.  Midsize companies are defined as businesses with less than 250 employees.  The National Small Business Association did a study and found that 44% of small businesses have been the subject of at least one cyber-attack.  This is typically not covered on your general liability policy but some companies provide a limited amount on their package policies.
I have been amazed how many small businesses don’t think that they have any exposure because they have a fire wall or antivirus on their computer.  They also think that because they have an IT company overseeing this they have no exposure.  Actually most IT companies don’t protect their clients from a cyber-attack and some even have the business owner indemnifying them.

Do you have a return to work policy for injured employees?  If you have an experience modification this can save you money.  Even if you don’t have an experience modification this is still a proactive tool that will assist in getting your employee back to work.  Did you know that if you take someone back to work at a lesser salary, the insurance company can make up some or all of the difference between what you pay the injured worker and what their salary was before the workplace injury?  Talk to your insurance broker about this.  Keep in mind the maximum the insurance company will pay is two thirds of the salary up to a maximum of about $1100 a week.  These benefits are not taxable.

Last week I asked people on my email to identify an elected official or government employee that has been helpful to  small businesses or helpful to your company.  I did not get many responses.  The people who were given to me were Libby Schaaf, the new Mayor of Oakland, and Senator Ted Gaines.  I chose Toni Symonds, Chief Consultant of JEDE.  I will try one more time.  Send me the name of an individual, what they have done and their contact information.  I will send a letter from Small Business California thanking them.  I will send a copy of the letter to you.



Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA  94116
shauge@cal-insure.com
415-680-2188 

Friday, January 02, 2015

Small Business Friends

About once a year I send out an email asking small business people to let me know an elected official or government employee that has been a friend of small business or who has helped you in your business.  Ideally this would be someone at the state level but someone in your local community is okay also.
I will send a letter to them from Small Business California thanking them for what they have done.  Please provide specifics of what they have done along with their contact information including their email if you have it.  Also if they work for someone let me know who that is and I will copy them on the letter.

My choice for this year is Toni Symonds the Chief Consultant of the Assembly  Committee on Jobs, Economic Development and the Economy.  Toni has worked very closely with Small Business California on a number of bills over the years and has been someone we can go to for advise on how to be effective in the legislature.  Last month the Board of Small Business California had a teleconference on what will be happening in the  new  legislative session and how to work with the new Chair Eduardo Garcia.  Thank you Toni.  You are a true friend to California small businesses.


Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA  94116
shauge@cal-insure.com
415-680-2188 

Pay for Performance Update eNewsletter - December 31, 2014



We hear a lot of negatives about the Affordable Care Act.  See below a very positive outcome on Patient Safety.  Pay for Performance has done some great things saving lives and reducing costs.  It is important people understand that reducing health care cost and improving outcomes are not mutually exclusive.
All the best to you in 2015!

 

Welcome to the Pay for Performance Update eNewsletter
Editor: Philip L. Ronning
This issue sponsored by the
National Pay for Performance Summit and the
National Healthcare Transparency Summit
 
Efforts to Improve Patient Safety Result in 1.3 Million Fewer Patient Harms, 50,000 Lives Saved and $12 Billion in Health Spending Avoided
A report recently released by the Department of Health and Human Services shows an estimated 50,000 fewer patients died in hospitals and approximately $12 billion in health care costs were saved as a result of a reduction in hospital-acquired conditions from 2010 to 2013. This progress toward a safer health care system occurred during a period of concerted attention by hospitals throughout the country to reduce adverse events. The efforts were due in part to provisions of the Affordable Care Act such as Medicare payment incentives to improve the quality of care and the HHS Partnership for Patients initiative. Preliminary estimates show that in total, hospital patients experienced 1.3 million fewer hospital-acquired conditions from 2010 to 2013. This translates to a 17 percent decline in hospital-acquired conditions over the three-year period. "Today's results are welcome news for patients and their families," said HHS Secretary Sylvia M. Burwell. "These data represent significant progress in improving the quality of care that patients receive while spending our health care dollars more wisely. HHS will work with partners across the country to continue to build on this progress." (HHS.gov, December 2, 2014)

Pay for Performance Pays off in 50,000 Fewer Deaths
Martin Merritt, JD, applauds the news from CMS cited in the above report. "Critics will certainly argue along the lines of the famous Ronald Coase observation, 'If you torture data long enough, it will confess to anything.' This may be one time, however, when it is OK to be less philosophical. Rarely does the federal government hand physicians a tool that makes life a little better. That's what Office of Inspector General (OIG) Advisory Opinion 12-22 does, and now data backs up the theory, with numbers showing lower program costs, lower injuries and deaths, and greater patient satisfaction." Merritt goes on to explain how relaxed pay-for-performance regulations have engineered the saving of these 50,000 lives. He concludes that "…the OIG had to approve of sharing compensation between the facility and the physicians. Happily, the data suggesting 50,000 lives saved, means the OIG and HHS got one right this time." ( Physicians Practice, December 14, 2014)

How Quality Incentive Payments Vary by Physician Specialty and Position
The Sullivan Cotter & Associates' 2014 Physician Compensation and Productivity survey reports that primary care department chairs have the highest median quality incentive payments among all physician specialties and positions. Surgical specialties see the highest median quality incentive payments.

Check out the graph below, modified from the Sullivan Cotter & Associates' survey.




(Becker's Hospital Review, 2014)

Health Care Pros Confirm It: Coordinating Care of Older Adults Moving Across Treatment Remains a Problem with No Easy Answers: Experts Urge Caution in Implementing Pay-for-Performance Schemes Tied to Coordinating 'Transitional Care' of Older Adults
Alicia Arbaje, MD, MPH, director of transitional care research and assistant professor of medicine at Johns Hopkins Bayview Medical Center and the Johns Hopkins University School of Medicine, was the principal author of "Excellence in Transitional Care of Older Adults and Pay-for-Performance: Perspectives of Health Care Professionals" published in the December issue of the Joint Commission Journal on Quality and Patient Safety. An MDLinx summary of the article follows:
SUMMARY: A study was conducted to characterize health care professionals' perspectives on successful transitional care of older adults (age 65 years and older), suggestions for improvement, and P4P strategies related to transitional care. This study suggests that in characterizing health care professionals' perspectives, specific care processes to target, challenges to address in the design of P4P strategies, and unmet needs to consider regarding education and feedback for health care professionals were described. Future investigations could evaluate whether performance targets, educational interventions, and implementation strategies based on this conceptual framework improve quality of transitional care. (Summary from MDLinx on 12/18/2014)
While the article is only available for purchase at the moment, Johns Hopkins issued a release providing details on the study and its results. According to the release, "the authors note the persistent 'mixed reviews' of the impact of tying compensation to quality of care. They also say that care transitions across health care settings remain "common, complicated, costly and potentially hazardous for older adults." As the ranks of older adults grow and their numerous illnesses require ever more drugs, specialists and facilities, poor transitional care frequently leads to rehospitalizations and complications for patients." (Johns Hopkins Medicine, November 25, 2014)

Reforming Graduate Medical Education in the U.S.
Abstract: The foundation of the U.S. health care system is a workforce of highly competent doctors who are prepared to provide the highest quality health care when they enter practice. However, there is increasing concern that the current system for training doctors following graduation from medical school falls short in terms of producing an adequate workforce to meet the nation's changing health care needs. Reforming the graduate medical education system will require accurate data on the true costs of training physicians, greater oversight and accountability, and a transition from the current outdated financing system that is based mainly on federal support to a system that is more equitably distributed among stakeholders and where the funding is controlled by the states and follows the trainee.
(The Heritage Foundation, December 29, 2014)

Health Care Services Gap Narrows between Whites and African-Americans
A University of Pittsburgh study has found that nationwide disparities in the quality of hospital care between whites and minorities have decreased for those with acute myocardial infarction, heart failure and pneumonia. The Pitt study, "Quality and Equity of Care in U.S. Hospitals," showed progress from 2005 to 2010 with "increased racial and ethnic equity" for hospitalized African-American and Hispanic adults, as compared with white patients. Reductions in disparities between race and ethnic groups resulted from "more equitable care for white patients and minority patients treated in the same hospital," and "greater performance improvements among hospitals that disproportionately serve minority patients," states the study, led by Michael J. Fine, a professor of medicine at the Pitt School of Medicine. The study also involved researchers from Brown University, the Centers for Medicare and Medicaid Services and various veteran health centers. According to the study, "Equity is a key dimension of health care quality. Therefore, efforts to gauge progress in quality of care must include explicit considerations of whether gains have also occurred in health care equity." ( Pittsburgh Post-Gazette, December 30, 2014)



 Integrated Healthcare Association's California Value Based 2014 Pay-for-Performance Program Measurement Manual






Small Business California
2311 Taraval Street
San Francisco, CA  94116
shauge@cal-insure.com
415-680-2188