WILL HEALTH CARE REFORM MEAN HEADACHES...OR HIDDEN DIVIDENDS?

Provided by Cheri Johnson, Financial Advisor, Kaiser Wealth Management

Increased costs or savings in years to come? What do the federal health care reforms mean for your company? Will they lead to thousands of dollars in extra costs and more paperwork? Or will federal subsidies make this a “game changer” for small companies that have struggled to provide insurance plans? If you employ 50 or more, you will face a major choice. Businesses with 50 or more employees will have a choice beginning in 2014: they can sponsor a health plan for 100% of their workers (even those signed up for government-subsidized health insurance) or pay $750 per worker in penalties to the federal government.¹ A business might opt to take the penalty and do away with health insurance. Paying the annual penalty might be cheaper. So that would leave the employees uninsured, and they would have to go to state health plan exchanges to buy health coverage that could be more expensive. Some analysts warn that another macroeconomic effect might result - years of high unemployment. They think that increased insurance costs will discourage business hiring in the next decade. The new reforms don’t put any caps on health insurance premiums. Insurers have every reason to hike rates before the new insurance markets come around in 2014 with added competition.

If you employ 25-49 people, you won’t face this choice. The government won’t require companies with fewer than 50 employees to offer health insurance starting in 2014, and therefore these companies won’t have to contend with possible fines like their big brothers. But while firms with 50 or fewer workers would be exempt from coverage provisions, they will still have to contend with rising premiums.

A major tax credit for smaller firms and solopreneurs. If you employ less than 25 or are self-employed, you may find that the healthcare reforms bring you tax relief. Beginning in 2010, companies with less than 25 employees that pay the majority of health care premiums for their workers qualify for a tax credit up to 35% of their premiums. (In 2014, that credit could be as great as 50% of premiums if you arrange insurance via one of the Small Business Health Options Programs, or SHOP Exchanges). The tax break you get will depend on a couple of variables: the number of employees you have and their average salary.  However, this tax break won’t be offered to sole proprietorships. That factor may encourage you to incorporate or become an LLC.

If you own a smaller company, insurance might become cheaper. The idea is that small businesses can pool together in the SHOP Exchanges and negotiate insurance coverage as a group. Greater buying power implies lower premium costs (in theory). Businesses with 100 or fewer workers can jump into a state SHOP Exchange pool starting in 2014; states may choose to limit the pools to firms with 50 or fewer employees through 2016.
The non-partisan Congressional Budget Office estimates that the SHOP Exchanges would lower annual premiums for these businesses by 1-4% with a 3% increase in the amount of coverage. That could mean a savings of more than $10 billion nationally.^1,4
If you work for yourself, you will likely be able to take advantage of government health care subsidies in 2014. If you are self-employed in 2014 and earn less than four times the poverty level, you can qualify for these subsidies. (To give you some idea, in 2010 400% of the poverty level comes to $88,200 for a family of four.)

Some notes for 2011. In 2011 as a result of the new law, a business will have to report the value of an employee's health care coverage on W-2 forms. Many companies provide coverage for employee dependents not enrolled in other employer-based health plans up to age 22 or 23; next year, that age limit will rise to 26. All lifetime caps on insurance policies offered through employer-sponsored plans will be eliminated in 2011. Penalties will increase for the misuse of HSA funds, and workers with FSAs and HSAs will not be reimbursed for money used for over-the-counter drug purchases.
Cheri Johnson is a registered representative of Kaiser Wealth Management, 5790 Soundview Drive Suite 201, Gig Harbor, WA 98335, 253.858.4411  cheri@kaiserwealthmanagement.com

Grab the Spotlight, Host or Co-host a Notorious Networking Night (N3) Event

Do you want your business to be seen?  Do you want your business to be noticed?  Want to make more contacts?  Then the chamber has just the opportunity for you.  Sign up to host or co-host a Notorious Networking Night Event. 

There are several spots to host or co-host an N3 event still available for 2010!

Dates still available in 2010 are:

Month	Host	Co-host 1	Co-host 2
May 2010 -	Harbor Point Excavating	More Than Just Errands	Open
June 2010 -	CenturyLink	Open	Open
July 2010 -	Boys & Girls Club of South Puget Sound	Open	Open
August 2010 -	Peninsula Retirement	Open	Open
September 2010 -	Open	Open	Open
October 2010 -	Open	Open	Open
November 2010 -	Open	Open	Open
December -	No	Event

You’re probably thinking, “What’s in it for me?”  If you host an N3 event, attendees come to your place of business.  This means more exposure for your business, and more chamber contacts in the chamber.  Chamber members are looking to contact you, they want your business, your services. This is a great way to connect and let the community know all about your business and what you have to offer.

If you’re thinking, “I have a small office, I don’t have the space to host an event,” then co-hosting an N3 is just the thing.  Co-hosting an N3 event ensures that you still get the front-and-center attention as you would if you had hosting space.  Working with the co-host, you will be able to display your business promotional material, and introduce all attendees to the event to your services.  What could be better than that?  Grab your spot while it’s still available, call Barb Sykes at 253-851-9921 to

CHAMBER GETS A CARROT

The Gig Harbor Chamber of Commerce is proud to announce that it has signed an agreement with CarrotStick Marketing (CarrotStick) as the Chamber’s advertising and marketing agency. The Chamber selected CarrotStick for its expertise in building brands and identities, as well as increase membership, involvement and participation.

The Chamber Board of Directors, recognizing the need to update The Chamber’s identity and improve the services it provides its members, conducted an extensive search for firms that provide these kinds of services. CarrotStick is excited to have been chosen by the Chamber. Work has already begun redefining the Chamber’s identity. CarrotStick will be, in collaboration with Tacoma’s Site Crafting, revamping the Chamber’s web site to give it greater functionality, make it more robust, and to better serve its members and their needs.

CarrotStick Marketing, a Gig Harbor Chamber of Commerce member, is located in Gig Harbor. The firm specializes in advertising and brand building. Their mission is to help their clients raise the quality and level of their communications, which will increase their visibility and make their marketing efforts and activities in the community more successful.

The principals of CarrotStick bring years of experience to the harbor, having started their careers working for the world’s top ad agencies in New York, Chicago and Los Angeles. Their portfolio of clients includes many of the fortune 500. In addition to the Gig Harbor Chamber of Commerce, some of CarrotStick Marketing’s clients include The Harbor History Museum, The City of Gig Harbor, LeMay - America’s Car Museum, Experience Music Project as well as Choice Carpentry, Six Ingredients or Less – cookbook series and many other local and regional companies.

For more information about CarrotStick Marketing, please visit their website at www.carrot-stick.com or call Al or Virginia Abbott at 253.853.4424.

Why Attend Networking Events?

Q: Why is it a good idea to attend networking events and what are the benefits of attending?

A: The Chamber provides essential member–to–member networking opportunities as well as frequent occasions to meet with civic leaders and lawmakers to discuss issues affecting your business and your community.  What does this mean for you?  This means that you have several opportunities to meet with your fellow business and civic leaders to increase your chamber contacts.  

Meeting with your fellow business leaders also gives your business more exposure within the chamber and the business community.  Members are looking for your services and what you provide.  Members are also looking to refer your business to their own clients. 

Along with making chamber contacts, you also have an opportunity to win the Member Spotlight in our Weekly Snapshot.  More than your business listing on the chamber website, the Member Spotlight is a feature article about your business and services you offer.  This is a fabulous opportunity for any of our chamber businesses. 

As you can see, attending chamber events is just one of many benefits of joining.  Why not attend the next upcoming chamber events.  Go to the chamber calendar to see upcoming events and call the chamber at 253-851-6865 to RSVP to an event and increase your visibility today!

Why Should I Join the Chamber?

Have We Got a “Gig” For You

Why would you want to be a part of the Gig Harbor Chamber of Commerce? The Chamber can be a vital asset to your business or organization in so many ways.

Market Your Business and Expand Your Customer Base

The Chamber of Commerce is open Monday through Friday, 9:00 a.m. to 5:00 p.m. Chamber staff and volunteers operate a community Welcome Center providing information about the harbor area and referrals to more than 500 Chamber member businesses.

Get to Know Your Local Business Leaders

The Chamber provides essential member–to–member networking opportunities as well as frequent occasions to meet with civic leaders and lawmakers to discuss issues affecting your business and your community.

Join a Greater Force

The mission of the Gig Harbor Chamber of Commerce is to take strong leadership positions for business and community interests that create and maintain economic opportunity and goodwill for its membership. When you join, we help you buy down essential products and services, attend affordable professional development seminars and join a sometimes animated dialogue between civic leaders and COC members.  We are the community leaders who provide a vibrant economic base creating jobs to ensure our community is a desirable place to live.

Our Benefits Help Your Bottom Line

• Medical & Dental - Your membership with the Gig Harbor Chamber of Commerce provides you access to exciting benefits from the Affiliated Associations of America (AAOA). There are no additional fees – your Chamber membership already qualifies you to access AAOA’s great benefits. Use your personal PIN number to login online to take advantage of your new member benefits. The Gig Harbor Chamber of Commerce - AAOA program provides members a suite of benefits including Group Medical, Group Dental, and discounts on Travel, Communications, and Business Services. Your membership in the Gig Harbor Chamber of Commerce can give your company a competitive edge with the AAOA group medical and dental plans. The plans take an innovative and exciting approach to group medical coverage, with fixed administration and a full compensation disclosure to show where your dollars go. You can now purchase healthcare like the big companies and rein in runaway costs. The AAOA group healthcare program truly sets a new standard in employee benefits by providing members quality service and products. The AAOA group healthcare partners in the Gig Harbor area are United HealthCare and Washington Dental Service, a Delta Dental affiliate.
• Members Only specials - The weekly online ChamberGram informs members of current Chamber news, including product and service discounts for Chamber members only.
• Advertising - The Discover Guide published yearly in partnership with the Peninsula Gateway and the City of Gig Harbor is a compendium of useful information about the Gig Harbor area. The Discover Guide also includes the Chamber’s annual membership directory. Join a greater force for special "co-op" ads in various publications; for tourism or local events.

New Businesses Get a Jump Start

• Ribbon-cutting ceremonies - The Chamber helps celebrate the grand openings of new businesses that join the Chamber, the relocation of an existing business or to welcome a business to the Chamber.
• Local regulations - The chamber can obtain current copies of city codes, environmental impact statements and tax information.

We market your business to customers

• Referrals - Each month, thousands of Welcome Center guests are referred to local chamber members.
• Community Guide - Members get a free listing in our member directory and can also purchase advertisements.
• Website listing -Chamber members are linked for FREE on our website.

You can network with fellow professionals

• Public Affairs Forum - Join a long-standing dialogue with civic, educational and business thought leaders held every Thursday, 7:30-8:20 a.m., Cottesmore of Life Care, located at 2909 14th Ave NW.
• Business After Hours - These networking events on last Wednesday of each month, increase your Chamber member contacts.
• Direct Mail labels - Purchase the Chamber membership list and send your info to nearly 600 businesses in the area.
• Special events - Help plan or sponsor events at the Chamber of Commerce. It's a fast and cost-effective way to get to know your fellow members.

This dynamic organization boasts a membership of 500 businesses, associations and individuals -- all focused on making this community a great place to work, live and play. We encourage you to become a vital part of the Chamber - join today!

-

MESSAGE FROM SENATOR DEREK KILMER RE: TACOMA NARROWS BRIDGE TOLLS

Earlier this week, the Transportation Commission announced that they would not be increasing tolls on the Narrows bridge this year. I’m very pleased by the commission’s decision. Folks are struggling enough in this lousy economy without having to pay higher tolls on a bridge they’ll cross hundreds of times each year.

This is why we worked so hard this legislative session to defer the Narrows Bridge startup loan and change the way tolls are collected and how fines are administered. This is why we scrub the bridge budget so hard to make sure dollars that are supposed to be spent on bridge operations are actually spent for that purpose.

I want to extend my gratitude to the Gig Harbor Chamber of Commerce and its members. The Chamber was actively engaged throughout the process – sending in a resolution to the Transportation Commission, getting people to show up and testify at the Commission’s meeting, and encouraging folks to send in letters opposing toll increases this year. Having the business community actively engaged on this issue made a real difference. Thanks for being involved – it paid off!

Derek Kilmer
State Representative, 26th District

HIT THE BRAKES BEFORE ACCEPTING THIS RV AND CAMPING OFFER

*This article courtesy of the Better Business Bureau serving Alaska, Oregon and Western Washington*


Research and Verify Before Subscribing To Vacation and Travel Programs

DuPont, Wash. – March 9, 2010 – With camping season just down the road, RV owners are planning their vacations and some travel programs may be trying to capitalize on consumers' hopes to land a good deal.

In the early months of 2010, Better Business Bureau received 219 consumer inquiries on Ultimate RV Camping—a documented increase compared to 35 inquiries in the last half of 2009. Due to its failure to respond to complaints, this business has an "F" rating with your BBB.


Ultimate RV Camping also goes by Ultimate RV Tool, Internet Camping, Internet Camping Family and JAD Holdings. It advertises the 'Ultimate RV Travel Tool' as "the quickest, easiest way to search, browse, and reserve North America's most popular RV parks … INSTANTLY!" Sites like ultimatervcamping.com, internetcamping.com, and internetcamping.net entice vacationers with a free limited time offer of a RV park computer program guide with a directory of over 17,000 camping sites, including discounts at participating resorts.

Complainants allege that upon contacting the supposed directory members, they discovered the listed camping sites and resorts are not affiliated with the 'Ultimate RV Travel Tool' and no discounts are available. Additionally, consumers say they paid for the "free" offer and are unable to obtain a refund or take advantage of the advertised money back guarantee.


According to BBB's research, Ultimate RV Camping claims locations in University Place, Buckley and Bonney Lake, Wash. and is operated by Craig Kirkland.


Tucson-based Internet Camping appears to be affiliated with Ultimate RV Camping and has accrued several unresolved complaints, resulting in an "F" rating from BBB serving Southern Arizona.

With spring break rapidly approaching, BBB serving Alaska, Oregon and Western Washington cautions vacationers to be on the lookout for travel offers that seem too good to be true:

Steer clear of vacation programs that solicit with high pressure limited time offers.

Beware of companies that claim affiliation with big name resorts or camp sites, but can't provide proof. Contact the resort to confirm affiliation.

Look out for companies with overhyped products, services, or fabricated testimonials on Web sites. If in doubt, ask for past-customer references.

Be careful when signing up for free offers and make sure not to click links and checkboxes for costly, unwanted offers. Carefully read the fine print and any disclaimers before pressing 'submit.'

Before making a purchase, look up the company and program name online. Always check on http://www.bbb.org/ for free business reliability reports and tips.

Say "NO" to State Tax in Washington State

HERE WE GO AGAIN; ANOTHER PROPOSAL IN THE WRONG DIRECTION

A STATE INCOME TAX: Thursday at 12 noon, the public was made aware of SB6250, a bill that would impose the first ever income tax on Washingtonians. SB6250 was not made public before it was read in the Senate Ways and Means Committee, and with just hours to prepare, Washington's business community did its best to speak out in opposition.


There is much speculation that this proposal is a very politically motivated ploy, designed to cause uproar and test the public appetite for a tax that Democrat leadership has wanted to advance for a long time. It does represent another ornament on their tree of tax and fee proposals.

Justifiably, there are a thousands of Washington residents who are angry about this income tax, but in the end, it's just another revenue generating proposal that reminds us of the fact that our state legislators are not debating the right issue.

Even if the idea of an income tax goes no-where this session, we want to give you the opportunity to get "on the record" about how you feel about the proposal. Let your legislators know that you don't appreciate yet another well crafted, political distraction away from the real solution to the budget deficit. It's not about how to extract more tax money from Washingtonians and their private sector businesses; it's about reigning in spending and getting back to the priorities of government so that Washington and its citizens can succeed!

Take Action! Let your voice be heard! Enterprise Washington has set up a special link so you can contact your representatives. Follow this link to let your voice be heard.


TAKE ACTION - SAY NO TO A STATE INCOME TAX FOR WASHINGTON.


This special link will help you generate either electronic or printed letters to send to all representatives for the State of Washington. Take action now!

City of Gig Harbor Receives Standard and Poor’s AA- Rating

Gig Harbor, Wash. – March 3, 2010 – Today the City of Gig Harbor received word it has been upgraded to AA- long term rating by Standard and Poor’s. The rating increase will mean a significant saving over the years to the City and its rate payers – about $92,000 in interest savings over the life of the bonds.

The Standard and Poor’s Report justifies the rating upgrade on;

• Location in the economically diverse Pierce County service area with above –average income levels

• Track record of maintaining adequate debt service coverage (DSC) and good liquidity
• Implementation of rate increases

The reports says the foregoing strengths are partially offset by the city’s additional debt needs to fund its current capital improvement plan and near-term need to expand capacity in both its water and sewer system.

The stable outlook reflects Standard and Poor’s expectation that the city will maintain sufficient system net revenues to ensure good DSC and cash on hand; and the stability of the rating will depend on the city’s ability to pass along future rate increases and remain in line with its forecast.

“I would like to thank Finance Director Dave Rodenbach” said City Administrator Rob Karlinsey, “as well as City Engineer Steve Misiurak, and all their staff for their outstanding work in demonstrating professionally and conservatively run city finances and a well-planned capital program in order to make the case for a higher bond rating.”

The report from Standard and Poor’s is available at http://www.cityofgigharbor.net/