Nancy Smith has been selected to serve as executive director of the Health Advancement Collaborative of Central New York (HACCNY). Smith has extensive experience in health policy reform and health systems design across government, nonprofit, for profit, and academic sectors. She brings the passion and management skills required to meet the goals and objectives of the organization.

HACCNY, a not for profit corporation, was formed by the Greater Syracuse Chamber of Commerce, Metropolitan Development Association of Central New York (MDA), Manufacturers Association of Central New York (MACNY), Onondaga County Medical Society, Excellus, and the Hospital Executive Council, for the purposes of advancing the delivery of quality care, improving access to quality care, and employing technology to enhance the delivery of care and controlling health care costs in CNY.

The board of directors is comprised of members from each of the founding organizations. Steve McCormick, senior plant manager of Anheuser Busch, Inc., serves as chairman of the board.

The board has created various subcommittees to address the major concerns confronting stakeholders comprising the health care system. These stakeholders include government agencies, providers and facilities, employers, employees, insurance carriers, and pharmaceutical companies. These subcommittees are researching the effectiveness of proposed programs and are developing implementation strategies for each of the projects identified.

HACCNY is also working to improve efficiency within the health care system and to educate individuals about how to effectively navigate the health care system. The organization will identify and analyze changes in the industry and share this information with patients, providers, insurers, employers and other stakeholders.

For more information about HACCNY, please contact Nancy Smith at (315) 671-2241 or nsmith@healthadvancementcollaborativecny.com.

New York State Senate Passes Mental Health Parity
by Deb Warner, Director of Government Affairs, Greater Syracuse Chamber of Commerce

After several years of lobbying, the New York State Senate and Assembly reached agreement on a compromise version of this new health coverage mandate.  The Senate recently returned to Albany to pass the bill. The Assembly is expected to return before the end of the year for their vote.  Proponents have been persistent in their efforts to enact a state mandate that mental and emotional ailments be covered on par with physical ailments in all health care policies in New York.  However, this legislation, like other state mandates, does not apply to groups that self insure.

The bill’s requirements spell out a list of disorders covered on an unlimited basis with special emphasis on children.  For children under 18, policies would cover attention deficit/hyperactivity disorders, disruptive behavior or pervasive development disorders where there are serious symptoms of suicide or other life-threatening destructive behavior; significant psychotic symptoms, behaviors caused by emotional disturbances that place a child at risk of personal injury, etc.   Not included are treatments for drug and alcohol additions. 

Insurance companies will have to cover 30 inpatient days and 20 outpatient days of treatment per year.  Coverage is mandated for “biologically based” mental illnesses, such as schizophrenia/psychotic disorders, major depression, bipolar disorder, delusional disorders, panic disorder, obsessive-compulsive disorder, bulimia, anorexia and binge eating. 

In response to concerns voiced by the small business community, the agreement requires the state superintendent of insurance to develop a means to hold businesses with fewer than 50 employees harmless from any increase in costs resulting from this act.  Also required is a utilization analysis for two years to assess effectiveness.  If approved, as expected by the Assembly and Governor, it will take effect on January 1, 2007 and sunset on December 31, 2009.

How much will this cost?  Most expect a premium increase of one to two percent.  Estimates for the cost to taxpayers of the small business subsidy range from $30 to $90 million, with more agreeing in the area of $60 million.  Proponents have made a strong case that businesses will benefit with increased wellness and productivity of their employees and families.

A New Chapter for Retirement

“Will you still need me...when I’m 64?”

It’s a question Paul McCartney asked in a song he wrote as a young man. In it, the former Beatle envisioned life at 64 “doing the garden, digging the weeds...yours sincerely wasting away.” Yet it seems as though Paul has defied his original vision of retirement. Reaching 64 himself this year, he is still recording music and playing to sold-out crowds. He is even thinking about rewriting his now-famous song. *

Just as Paul McCartney has rewritten his vision of retirement, today’s companies are rewriting the retirement rules for working Americans. Many companies are shifting away from traditional defined-benefit pensions and moving to defined-contribution plans like the 401(k), which makes employees responsible for funding their own retirement.

Defined-contribution plans offer workers a number of benefits. Plan participants typically have several investment options and greater control over their retirement accounts, which are portable when they change jobs. Many employers may also offer matching employee contributions.

Distributions from most employer-sponsored retirement plans are taxed as ordinary income and, if taken prior to reaching age 59 1/2, may be subject to an additional 10 percent federal income tax penalty.

Making the Switch
A number of companies are taking steps to help ease the transition for workers. Many are enhancing the benefits of their existing defined-contribution plans by increasing the amount they contribute to employees’ accounts and/or enhancing matching contributions.

Congress, too, recognizes the need to help workers save more for retirement and is expected to offer incentives to help spur savings. It is also taking steps to help shore up funding for the Pension Benefit Guaranty Corporation, which helps protect American workers who have pensions from the risk of pension default. **

What to Do
The good news is that a majority of companies should be able to pay their promised pension benefits. But in light of recent trends, it may be wise to consider all possible sources of retirement income when reviewing your retirement strategy.

With the changing retirement landscape, there may be no better time to size up your current situation. Your pension may be just one piece of your retirement funding pie.

Please visit www.DonahueFinancial.com for more information and articles like this.

* The Sun Online, 2005
** The Wall Street Journal, January 4, 2006

BSNY Expands Products and Services

Meet Thomas Donahue, CFBS & Donna Herlihy of Donahue Financial Management Group (DFMG). Benefits Specialists of NY (BSNY) and Donahue Financial Management Group (DFMG) formed a strategic alliance in September 2006 to better serve our clients and the Central New York Community.

Tom earned his designation as a Certified Family Business Specialist in 2005. A CFBS professional is a designation held by approximately 300 financial services professionals who have completed a rigorous educational program at The American College in Bryn Mawr, Pennsylvania. This achievement places him in a distinct class in the financial services industry where providing services to family-owned businesses regarding succession planning, business valuation, family business dynamics, and financial service products specifically tailored to family business needs is critical.

Donna has worked in the insurance industry since 1999 and specializes in income replacement strategies and life insurance, individual disability income contracts, retirement contribution protection, buy-sell disability income contracts and business overhead contracts.

Through the end of 2006, DFMG will be offering a free BusinessReview. This exciting benefit will include a review of your business insurance costs and compliance with 404C and your fiduciary liability under ERISA.

Please call us at (315) 470-1889 to schedule a free BusinessReview.

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