AASP-MN News June 2016

June 2016

PLUS: A Night Out With the St. Paul Saints Registration (see pg. 17) www.grecopublishing.com

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AASP-MN News

AASP-MN News

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AASP-MN News

CONTENTS AASP-MN News is the official publication of the Alliance of Automotive Service Providers, Minnesota, Inc. 1970 Oakcrest Ave., Suite 102 • Roseville, MN 55113 Phone: 612-623-1110 • Fax: 612-623-1122 email: aasp@aaspmn.org • website: aaspmn.org. To keep its readers better informed, AASP-MN News allows its columnists to fully express their opinions. All views expressed are not necessarily those of the publication. AASP-MN News is published by Thomas Greco Publishing, Inc. © 2016 All rights reserved. Cover image © www.istockphoto.com.

AASP of Minnesota is an association of independently-owned automotive service businesses and industry suppliers dedicated to improving the state’s automotive service industry and the success of its members.

AASP-MN BOARD MEMBERS 2016 - 2017

Vol. 24 No. 6

COLLISION DIVISION DIRECTOR’S MESSAGE .................................................6 April CIC/SCRS Meeting Recap

by Will Latuff, AASP-MN Collision Division Director LEGISLATIVE UPDATE .............................................................................7 Tax Package Could Benefit Businesses

by Kevin Walli, AASP-MN Lobbyist LOCAL NEWS .......................................................................................8

PRESIDENT Greg Kasel, AAM

NATIONAL NEWS ..................................................................................12

IMMEDIATE PAST PRESIDENT Tom Gleason

DEG ESTIMATING TIPS ..........................................................................15

SECRETARY-TREASURER Wayne Watson

AASP-MN NIGHT OUT WITH THE ST. PAUL SAINTS REGISTRATION ......................17

COLLISION DIVISION DIRECTOR Will Latuff MECHANICAL DIVISION DIRECTOR Mars Overlee ASSOCIATE DIVISION DIRECTOR Dave Bock

INSURANCE I.Q. ..................................................................................19 Some Thoughts About ACA for the Small Business Owner: A Health Care Reform Update, of Sorts

by Dennis Begley, LCU / ChFC / CBC CASH IN ON YOUR MEMBERSHIP!..............................................................22 AASP-MN and Certegy Partnership UPCOMING EVENTS

COLLISION SEATS Jim Siegfried, AAM Bruce Tschida, AAM MECHANICAL SEAT Carl Thomas

STAFF EXECUTIVE DIRECTOR Judell Anderson, CAE, AAM OFFICE ADMINISTRATOR Jodi Pillsbury MEMBERSHIP COORDINATOR Tom Kluver

June 21, 2016 22nd Annual Golf Outing Keller Golf Course, Maplewood

For more information, contact the AASP-MN office at 612-623-1110 or visit the Association’s website, www.aaspmn.org.

ADVERTISERS’ INDEX

PUBLISHED BY: Thomas Greco Publishing, Inc. 244 Chestnut St., Suite 202 Nutley, NJ 07110 PHONE: 973-667-6922 • FAX: 973-235-1963 PUBLISHER Thomas Greco (thomas@grecopublishing.com) SALES DIRECTOR Alicia Figurelli (alicia@grecopublishing.com) EDITORIAL DIRECTOR Joel Gausten (tgpjoel@verizon.net) CREATIVE DIRECTOR Lea Velocci (lea@grecopublishing.com) OFFICE MANAGER Donna Greco (donna@grecopublishing.com)

August 24, 2016 A Night Out with the Saints CHS Field St. Paul

AmeriPride ................................................7 Axalta Coating Systems ............................OBC Blue Net, Inc. ............................................13 Buerkle Hyundai ........................................10 Choice Auto Rentals ..................................18 Dentsmart ..................................................6 FinishMaster ....................................................20 Inver Grove Honda / Inver Grove Toyota..........4 Jack McClard ............................................14 Keystone....................................................18 Libson Twin City........................................14

Maplewood Toyota ....................................16 Mills Parts Center......................................10 Morrie’s ....................................................9 Motorwerks BMW......................................IBC MPA ............................................................................11 Rosedale Chevrolet....................................20 Roseville Chrysler ....................................10 Straight & Square ......................................4 Toyota Group ............................................3 West Bend Insurance ................................IFC

www.grecopublishing.com

AASP-MN News

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COLLISION DIVISION DIRECTOR’S MESSAGE

April CIC/SCRS Meeting Recap

by Will Latuff AASP-MN Collision Division Director

Members of AASP-MN recently traveled to attend the April Collision Industry Conference (CIC) and Society of Collision Repair Specialists (SCRS) Affiliate Conference in Seattle, Washington. AASP-MN was represented by Executive Director Judell Anderson, AASP-MN member (and AASP National president) Bruce Tschida, owner of Lake Marion Collision, and myself – Will Latuff from Latuff Brothers Auto Body, your Collision Division Director.

There were several topics covered during the CIC conference. The most intriguing or highly-contested topics were autonomous vehicles, National AutoBody Research's variable rate system, the definition of a Class "A" body shop, and Alt-OE parts.

The first day began with a presentation about autonomous vehicles that was delivered partially by webinar to the CIC conference. The presentation discussed the five-level hierarchy of autonomous vehicles, which ranges from level 1, a vehicle with park assist, to level 5, a vehicle capable of driving without the need for human intervention. One of the main technologies driving the autonomous vehicles is Lidar (light detection and ranging). Lidar is used on the Google cars and could soon see its way into production vehicles. A related technology coined S.L.A.M. (simultaneous localization and mapping) was also discussed.

S.L.A.M also uses Lidar, but continually gathers information from a crowd of vehicles. Picture driving your car home for the first time. Your car's Lidar would scan your surroundings as you drive through your neighborhood. The information would be good, but may not be complete or high resolution based upon the first pass through your neighborhood. Next, your neighbor drives

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to his house. Your neighbor's car already has the data about the neighborhood from your vehicle’s scan, but your neighbor's car also rescans the neighborhood while driving, further refining the detail and increasing the image resolution to share with the crowd.

The second topic that drew attention at CIC was National AutoBody Research's variable rate system. The premise behind the variable rate system is that it enables any shop to research retail labor rates in their market with a great deal of definition. National AutoBody Research allows shops to complete an online survey and provide their door rates, equipment, repair capabilities and OEM certifications. The monthly, subscription-based service then allows a shop to search by mileage radius to find out what the prevailing door rates are. The variable rate system also allows the labor rate searches to be filtered to show only rates from shops with a specific OEM certification, repair capability, or set of equipment. This level of filtering allows shops with special training, capabilities, or tooling to compare themselves – apples to apples – with like shops. This presentation generated discussion from both the insurers and repairers.

The third topic, and probably the most highly discussed and contested, was the presentation from the definitions committee regarding the revision of the "definition of a Class ‘A’ body shop" document. This presentation began with an apology from the committee for not listening to the CIC body during the previous meeting. The conversation quickly moved to reveal the fact that the document would not be revised to include an extremely controversial cosmetic repair category. The feedback was clear, continued on pg. 16

AASP-MN News

LEGISLATIVE UPDATE

Tax Package Could Benefit Businesses As the 2016 Legislative Session winds down, there is still some prospect that a Tax Bill could be enacted that would provide some tax relief for Minnesota businesses.

The House and Senate have developed very different proposals for tax relief. The DFL-controlled Senate has proposed a package that reduces the overall tax burden by approximately $600 million. The Republican-controlled House proposed a package with approximately $2.2 billion of tax relief.

One of the great challenges for the House package is that the amount of tax relief provided exceeds the amount of surplus revenue that the state is generating.

Tax cuts of this magnitude could create state budget deficits.

One area where there has been considerable discussion regarding business tax relief is the statewide commercial and industrial property tax. This tax was established in 2001 as part of a large tax reform initiative. Funds generated from the state commercial and industrial property tax flow to the state general fund rather than to local units of government.

One of the methods being considered to reduce the commercial and industrial property tax is to increase the amount of property value that would be exempt from the tax.

The House proposal would exempt the first $500,000 of commercial/industrial property tax value from the state property tax.

by Kevin Walli, AASP-MN Lobbyist

The statewide property tax is also applied to seasonal recreational property.

This is a tax that is imposed on cabins and lake homes all across the state. Both the House and Senate have proposals that would exempt a greater amount of the value of seasonal recreational property from the statewide property tax.

Business organizations such as the Chamber of Commerce are pressing for the commercial/industrial tax reduction to be included in the House/Senate tax compromise that may yet emerge in the 2016 Session. If the Tax Bill does emerge, AASP-MN will analyze the results and report to members on any beneficial change that may result in the area of the state of property tax.

Welcome New Members:

MAY 2016

Maple Grove Tire & Service Maple Grove

Complete Auto Repair & Service (CARS) Duluth

AASP-MN News

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LOCAL NEWS

AASP-MN AWARDS $14,000 IN SCHOLARSHIPS TO AUTOMOTIVE STUDENTS AASP-MN awarded $14,000 in scholarships to help postsecondary automotive students pay for tuition during the 2016-17 school year. The scholarships are in the amount of $1,000 per student and were made possible by a successful fundraising drive within the AASP-MN membership, as well as a generous donation from the Minnesota State I-CAR Committee. All recipients will be entering the second year of a NATEF-certified automotive program based in Minnesota.

Congratulations to this year’s recipients!

Auto Body Collision Repair Student Winners: • Dylan Ahrndt, Ridgewater College, Willmar • Trevor Dosch, Dakota County Technical College, Rosemount • Jamie Garciano Acosta, Hennepin Technical College, Brooklyn Park • Kevin Nguyen, Hennepin Technical College, Eden Prairie • Codey Owen, Dakota County Technical College, Rosemount • Ben Scherger, Dakota County Technical College, Rosemount

Automotive Service Technology Student Winners: • Rachel Meisch, MN State College Southeast Technical, Winona • Kevin Miller, Century College, White Bear Lake • Juan Mireles, MN State Community & Technical College, Detroit Lakes • Ryan Moe, Century College, White Bear Lake • Cory Reller, Century College, White Bear Lake • Bryant Swiers, MN State Community & Technical College, Moorhead • Beverly White, Dunwoody College of Technology, Minneapolis • Bradley Williams, Dunwoody College of Technology, Minneapolis

Thirty students from 12 schools applied for the scholarships.

Applications were reviewed by a committee of industry representatives, with consideration given to scholastic achievement, education and career goals, financial need and written recommendations.

The scholarship awards are the centerpiece of AASP-MN’s Automotive Education Fund, which was established to provide financial resources to support automotive students, enhance automotive programs and raise awareness of career opportunities in the independent automotive service industry.

AASP-MN TO HOST A NIGHT OUT WITH THE SAINTS AASP-MN is pleased to announce it will host “A Night Out with the Saints” again this year. “Last year’s event was so well attended and so much fun, we had to do it again,” said Executive Director Judell Anderson.

Bring your family, employees and friends out to watch an exciting game of baseball as the St. Paul Saints take on the Wichita Wingnuts at 7:00 pm on Wednesday, August 24 at CHS Field.

AASP-MN member Carl Thomas of Lancer Service Auto Care (St. Paul) will host a tailgate party prior to the game and provide free parking for those that attend. (See page 17 to register.)

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COMPLETE YOUR AASP-MN MEMBER PROFILE The AASP-MN website was designed to help members seek out and connect with other members when looking for products, services, tools or equipment and has unbeatable search capabilities. However, in order for the search results to include information about your shop, you must complete your member profile on the website.

To do that, go to www.aaspmn.org and click on the “Members Only” button in the upper right corner. You will be prompted for a username and password. Your default username is the first letter of your first name and your last name (i.e. JDoe). Your password is the telephone number of your business, including the dashes (i.e. 612-623-0000). Note: You do have the option to change these settings once you are logged in.

Once you are logged into the site, click on “Members Only” on the navigation bar. A drop-down menu will appear. The first option on that menu is “My Profile.” Click on the “My Profile” option to update your company profile. Once you’ve completed your profile, hit the save button at the bottom of the page.

Please take the time to check out all of the great information and resources on the AASP-MN website, including: Information about: • Association news • Member benefit programs • The Get to Know Your Neighborhood Auto Repair Pro campaign • Current and past legislative activities & find your legislator • Industry training and upcoming events

Member shops, tools and equipment: • Search our database to find a member shop, see what diagnostic or other equipment they own, what repair information they subscribe to, which management system they use, and more! Our extensive database was designed to help members connect with and be a resource to other members. So be sure to login and complete your member profile!

Resources/links: • Regulation of Claims Practices & Prohibition on Insurers Statutes • Truth in Repairs Act • Insurer Unfair Claims Practices Report • MN Motor Vehicle Damage Disclosure & Reporting Requirements • P-Pages, DEG & other estimating resources • OEM service information • MPCA Fact Sheets and other regulatory compliance information

Sample documents: • Complaint Letter to Department of Commerce • Loaner Car Agreement • Repair Authorization form • Assignment of Insurance Proceeds • Sheriff’s sale instructions and documents

AASP-MN News

Consumer info: • Find a Shop • Auto Insurance Claims & Claimants’ Rights “Nuts & Bolts” brochure • Consumers’ “Know Your Rights” (after submitting an automobile accident claim to your insurance company) • Motor Vehicle Service Contracts: FTC, MN Attorney General and Consumer Reports • FTC Consumer Alerts on auto warranties and warranty scams • Automotive career and scholarship info, including links to state college automotive programs

And much more! Please take the time to check out the resources available to you from AASP-MN at www.aaspmn.org.

THANK YOU TO OUR SPONSORS! Gold Sponsors Auto Value Parts Stores/APH Autoshop Solutions Axalta Coating Systems CBIZ AiA Meadowbrook Insurance PPG Automotive Finishes United Fire Group Silver Sponsors aaa Auto Parts Dent Impressions Enterprise Rent-A-Car LKQ/Keystone Automotive Lowell's Performance Coatings & Equipment Midwest Parts Advantage Mitchell International O'Reilly Auto Parts PAM's Auto, Inc. R.O. Writer Suburban Chevrolet Other Sponsors 3M Choice Auto Rental Dentsmart Paintless Dent Removal FinishMaster Global Finishing Solutions Hertz Corporation Insurance Brokers of MN, Inc./The Jensen Agency Kukui Corporation Net Driven Sherwin Willams Single Source, Inc. Valspar AASP-MN News

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NATIONAL NEWS

AMI ACCEPTING APPLICATIONS FOR SCHOLARSHIPS Application Deadline is July 1, 2016 The Automotive Management Institute (AMI) is accepting applications for the annual $1,000 Tom B. Babcox Memorial, BodyShop Business Magazine, Emil Stanley Merit and Arrowhead Automotive Aftermarket “High Octane” Scholarship Awards.

The scholarships will be applied toward the recipient’s expenses to attend the 2016 Congress of Automotive Repair and Service (CARS) and International Autobody Congress & Exposition (NACE) events in Anaheim, CA August 10–12. CARS and NACE are sponsored by ASA and offer an educational lineup of AMI seminars, technical courses and industry sessions, an exposition displaying the latest equipment, products and services and technology available to today’s automotive service and collision repair professionals.

To request a scholarship application, call AMI at (817) 5142900, or email tslaton@amionline.org. Applications must be received by AMI on or before July 1, 2016. Recipients will be notified by AMI on or before July 8, 2016.

BRAND SHIFT & FOREIGN REPAIR The use of different brands for foreign nameplate repair has accelerated over the past five years. This brand-selection behavior will continue to gain momentum as foreign nameplate cars and light trucks ratchet up their share of the light vehicle repair market across the U.S.

Six Major Takeaways • More service stations and garages are purchasing different brands of key products when repairing foreign nameplates than the brands they buy for domestic cars and light trucks, particularly service stations and garages conducting 40% to 75% of foreign nameplate repair.

• Service stations and garages for which foreign nameplates generate 40% to 55% of their business select different brands of major products approximately one-third of the time when repairing foreign nameplates compared to brands they use when repairing domestic cars and light trucks. Use of different brands for foreign nameplates is even more prevalent among service stations and garages for which foreign nameplates comprise 56% to 75% of their business.

• Use of different brands for foreign nameplates occurs most often across five major product groups: electrical components, engine control products, ignition parts, exhaust parts and brake parts.

• Service stations and garages using different brands for foreign nameplates often buy OE brands (approximately one-third of the time); while aftermarket brands such as OE supplier brands, foreign brands, and domestic brands specializing in foreign applications are used approximately two-thirds of the time.

• Changing brand-buying habits impact product flow through parts outlets and distribution channels, as each type of parts outlet and distribution channel varies in the brands they handle: 12 June 2016

OE brands, OE supplier brands, foreign brands, and domestic brands.

• As foreign nameplates rapidly expand their repair share of independent service outlets, such as service stations and garages, over $14 billion in product sales will be subject to brand share shift by 2017, prompted by the increasing use of different brands for foreign nameplates by service outlets across a growing array of products.

Courtesy of the Lang Aftermarket iReport

CHEAP GAS PUMPS UP AFTERMARKET Prices at the gas pump are in free fall. With oil prices plunging, a glut of oil on the world market, and sluggish global oil demand, some analysts predict pump prices in the U.S. could fall below $1.25 this year.

Cheap gas is shaping the aftermarket in a number of significant ways, from changing the mix of new vehicle sales to influencing the types and ages of cars and light trucks on U.S. roads.

Six Major Takeaways • Gas prices in the U.S. are down more than 30% in just eight months, and pump prices nationwide are lower than 12 years ago.

• With cheap gas prices, Americans are adjusting new vehicle buying habits, driving more miles, and holding onto their vehicles longer.

• Domestic nameplate new vehicle sales, because of the large domestic nameplate share of the light truck market, are benefiting from low pump prices.

• Lower pump prices are helping to keep gas-guzzling, older SUVs and pickups on the road, increasing the age of vehicles-inoperation.

• Domestic nameplates hold a disproportionate share of older vehicles. Keeping older vehicles in operation will slow the shift of vehicle registration share from domestic to foreign nameplates.

• Low gas prices bolster aftermarket parts volume by putting money in the pockets of consumers (the average U.S. household saved approximately $1,120 last year), encouraging Americans to drive more miles, increasing the number of light trucks in operation (which consume more parts per-vehicle than cars) and enabling consumers to keep older, less fuel-efficient vehicles longer (older vehicles use more aftermarket products per-mile than newer vehicles).

Courtesy of the Lang Aftermarket iReport

RESULTS OF REFINISH-RELATED “WHO PAYS FOR WHAT?” SURVEY AVAILABLE ONLINE FOR FREE Nearly seven out of 10 shops say they need to “denib” or “finish sand and buff” at least threequarters of the vehicles they paint, yet nearly one-third of shops believe that the top eight insurers “never” pay for the extra time it takes to do it.

AASP-MN News

“Not true,” says Mike Anderson of Collision Advice. “Other shops report being paid by the top eight insurers for these operations, according to the results of our ‘Who Pays for What?’ survey series.”

Each of the four different “Who Pays for What?” surveys, conducted by Collision Advice and CRASH Network, explores a different area of shop operations, including “Who Pays for What?” in terms of aluminum repair and “not-included” body labor operations, refinish operations, and structural/frame and mechanical operations.

Anderson is making the 60-page results of the “refinish-related” survey, completed by more than 870 shops back in February, available to shops at no charge.

“The survey results are always free to the shops who participate, but I’m making the refinish-related ‘Who Pays’ survey results available for free to all shops because I believe when more shops see the kind of information the surveys offer, they will participate in our future surveys,” Anderson said.

The survey results, for example, show that a third of shops are routinely paid for ‘denib’ or ‘finish sand and buff.’ On a national basis, across all insurers, 39 percent of shops that bill for ‘denib’ are paid “always” or “most of the time,” while 31 percent are paid “always” or “most of the time” for ‘finish sand and buff.’

Perhaps equally as valuable, the survey results also reveal just how often these operations are required.

“In fact, over a quarter of all shops surveyed (28.5 percent) say they perform these procedures on 100 percent of the

AASP-MN News

cars they paint,” Anderson pointed out.

“And another 41 percent say that at least three-quarters of the cars they paint require at least one of these procedures.”

Results of the previous surveys are available at www.crashnetwork.com/ collisionadvice.

The 60-page report breaks the survey findings down by region, by insurer and

by DRP vs. non-DRP, and includes analysis and resources to help shops better understand and use the information presented.

“Participating in the surveys can be a good reminder to shops of ‘not-included’ operations that they are doing so they can decide whether to include them as line items on their estimates,” Anderson said.

Collision Advice (www.CollisionAd vice.com) is an independent training and consulting firm featuring some of the most respected and experienced experts in the collision repair industry. Mike Anderson and his team offer real-world, cutting edge training and guidance both in the classroom and one-on-one in the shop.

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AASP-MN News

ESTIMATING TIPS

Clear Coat Edges in CCC One If you need to refinish the edge when repairing a panel, you must select the “edging” option under the part as shown in the image below. Doing this allows for refinish of the edge, but does not include clear coat for the edge. To add clear coat to the edge, you must right click the “Add for Edging” line of the estimate, then select clear coat. This would be for most any panel that allows the user to edge.

Mixing toners in Mitchell is a not-included operation DEG Inquiry 9220 shows that Mixing individual toners from a mixing bank per a formula to create a quantity of paint for a specific paint color or code is not included in any published Mitchell labor time.

It goes on to say that determining the correct color variation is not included, as well, and gives 2 examples of how retrieving that variation could be accomplished: Determining the correct variant of a specific paint code by utilizing variant card decks or by using an automated tool that examines the color of the vehicle finish to arrive at a correct formulation to mix toners to create a quantity of paint of a specific color is not included in any Mitchell refinish time.

Test Drive Vehicle Test drive a vehicle is a not-included operation with all three estimating systems. Note that the exceptions listed below (when a test drive is performed as a procedural step after the alignment process) would only apply in cases where the IP-designated labor is used for the alignment, not necessarily as part of a sublet, unless specified by the sublet provider.

Audatex – DEG Inquiry 9207 This is addressed in the Audatex Database Reference Manual. Test Driving the vehicle is a not-included operation.

This is listed in the Labor Exclusions section and listed on these specific operations: Frame Replacement, Engine Assembly R&I, Transmission R&I, Engine/Cradle/Suspension/Steering R&I, Engine and Transmission/Transaxle Assembly R&I. If needed, this would be a manual entry.

Audatex DBRM states on page 82, “Remove vehicle from alignment rack and road test.”

CCC – DEG Inquiry 9206 MOTOR stated: According to the “Guide To Estimating: LABOR TIME PREMISE,” “Road Test Vehicle” is listed as “Not Included.” “Please note; there is one exception to this rule – for a Wheel Alignment, driving the vehicle (Road Test) is considered one of the procedural steps after performing a Wheel Alignment.”

Mitchell – DEG Inquiry 8996 As to “Road Test” in the Mitchell P-pages, Road testing the vehicle is only included in our Alignment procedures, “Verify Alignment by Road Test.” The operation of “Diagnostic road test to determine if alignment operations are necessary” is still a Not-Included Operation.

Note: The estimating databases are all intended to be used as a GUIDE ONLY - it is important to remember that the auto body professional performing the repair is in a position to thoroughly inspect, diagnose and identify the methodology and their unique cost of the vehicle damage repair.

You can view these tips and others on the DEG website,

WWW.DEGWEB.ORG. AASP-MN News

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COLLISION DIVISION DIRECTOR’S MESSAGE continued from pg. 6

concise and plentiful from the CIC body. The overwhelming majority commented on the need to sunset this document and acknowledge OEM procedures and equipment specifications as the only standard to properly and safely repair today's vehicles. At the conclusion of this debate, I was left to wonder whether the CIC chairman or the definitions committee actually listened to the commentary and guidance that was provided by the industry.

On the last day of CIC, the topic of Alt-OE parts was discussed. Alt-OE parts are new, in-the-box OEM parts that are sold at a lower manipulated list price, in essence providing a parts discount to insurers. John Eck from GM spoke about Alt-OE parts and stated that GM did not create this category. He alluded to the fact that this category was created by the market and that GM could not stop its dealers from discounting the list price of GM parts. John also provided clarity on the difference between AltOE, OE surplus, and new take-off parts. All of these parts types drove excellent discussion during CIC and a commitment from the assigned CIC committee to continue vetting the terminology, quality, and ramifications of these alternative part types. During the discussion, it was suggested that the information providers be held accountable for all of these part types showing up in the estimating databases. Unfortunately, no information providers were willing to step up to the open microphone and contribute to the conversation.

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AASP-MN's trip finished with the SCRS affiliate conference, where association leaders from across the country gathered to discuss achievements, challenges and initiatives. AASP-MN drew great recognition and praise for its role in spearheading the MNCARS initiative to address the technician shortage. During the affiliate conference, participants were also led in a rapid strategic planning session. The ideas identified by the group echoed the strategic vision and initiatives already in place with AASP-MN. All in all, this trip was a great experience and a great opportunity for AASP-MN to represent and advocate for Minnesota on a national scale to help make a better industry for all involved.

AASP-MN on Facebook! www.facebook.com/aaspmn

AASP-MN News

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AASP-MN News

INSURANCE I.Q.

by Dennis Begley, LCU/ChFC/CBC

Some Thoughts About ACA for the Small Business Owner: A Health Care Reform Update, of Sorts

It’s pretty obvious that the Affordable Care Act (ACA) is here to stay. We are all trying to figure out how to make this work for businesses and their employees. There are some things you should know:

1. The small group premiums are pretty stable. The carriers have to file their rates far in advance now. I am seeing rate increases in the four-to-six percent range. That is a tremendous improvement over what happened during the initial transition into the ACA changes.

2. The rates are high no matter how you look at it. Most of my clients have added or changed their plans to include a Health Savings Account (HSA) plan. The rates are cheaper than nonHSA plans, but the employees need to learn how to use an HSA. And they need to set up an account to funnel money into on a regular basis.

3. While I am talking about HSA plans, it makes great sense for the employer to set up a payroll deduction plan to withhold employee contributions to HSA accounts. If this is done, then the contributions come off the top of the paycheck so no withholding taxes have to be paid on those dollars.

4. Eligible expenses can be paid from the HSA account with NEVER-TAXED dollars. This can be huge. Why pay medical, dental and vision expenses with taxed dollars?

5. To facilitate this, the employer must adopt a Section 125 Premium-Only-Plan (POP) so the employee contributions are PRE-TAX. It does not make good sense for the employees to pay income taxes on their contributions to the medical premium or their HSA contribution. Your business must adopt a POP plan to do that, though.

6. Many of my business clients offer a match to get the employees to contribute to their HSA accounts. Most are a dollar-for-dollar, up to a desired maximum. The largest complaint I hear from medical providers is that people come in for care, have an HSA and have NO money in their accounts to pay the bills with.

7. The carriers allow employers with five or more employees to offer more than one medical plan. Most of my eligible employers are doing this. HSAs don’t work for everyone. Give your people the option of more than one medical plan. There is a requirement for the employer to cover no less than 50 percent of the single employee rate in group plans. (There is no requirement for the employer to contribute towards dependent coverage.) That contribution can be based on the lowest-cost plan offered. Most of my clients are doing this and giving the employee the option to buy up to the more expensive and better coverage plan.

8. It is still possible to offer coverage to non-discriminatory

classes of employees. That means if it makes sense to the situation, an employer can restrict eligibility to a class of employees, like management. The ACA requirement that eliminates that has been put on hold for the time being. This makes sense when there are a lot of lower-income employees who could be better off getting coverage through the MNSure Exchange, where they could qualify for a premium subsidy.

The employer cannot contribute to individual coverage in MN Sure. Also, if an employee is eligible for coverage through a group medical plan at their employer, they are NOT eligible for the premium subsidy. Therein lies the reason to exclude classes of employees from the group medical plan.

9. Speaking of MNSure, if a person’s income is such that they qualify for a premium subsidy, that is the place to get individual medical insurance. If you don’t qualify for the premium subsidy, there is no reason to use MNSure. The same plans, plus more, are available outside MNSure. Individual medical premiums are now as high as, or even higher than, small group rates. Most companies that dropped their group plans to go with the cheaper individual are now going back to group medical plans.

10. BCBS (Blue Cross Blue Shield) just made a HUGE change in how small group plans (fewer than 50 employees) are administered. Effective April 1, BCBS has implemented new, online administration software. All new cases to BCBS MUST use this portal to enroll employees and make future changes.

On new cases, BCBS will NO LONGER accept paper or PDF forms. Existing BCBS small group cases can still send in paper/PDF forms, but all renewals must be handled through the portal. Brokers do NOT have access to this portal automatically.

If you do business with CBIZ, expect to see a form emailed to you to authorize us to access your BCBS employer portal. Stay tuned as we figure out how this is going to work.

11. Most of my clients are offering a payroll deduction for additional, voluntary plans alongside their medical plans. There are many reasons to do this: • One primary reason is that employees want access to other products and look to the employer to give them a way to do that.

• Reason two is the convenience of payroll deduction for the employees – and they are also portable.

• Third reason, as we move to larger deductibles on the medical, it’s nice to give employees the option of purchasing a plan that pays extra dollars for an accident or hospitalization to cover that deductible.

• The fourth, and probably most important, reason is the counselors that talk with your employees will discuss the

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INSURANCE I.Q.

core benefits. This is appreciated and of huge value if you offer more than one medical plan. Medical Insurance is one of the most confusing things you have to purchase.

One company we use offers a wellness benefit that pays a cash benefit for taking the annual wellness exam. This cash offsets a good portion of the premium of the voluntary benefit.

Some of these plans can be pre-tax to the employee as well.

The most popular voluntary benefits for employees are: • Accidental injury cash benefit • Hospitalization • Cancer and dread diseases • Additional life insurance, including term and whole life • Short-term disability income.

12. Reminder that the annual wellness exam is covered the SAME on any plan that you select, including HSA plans. And included in the wellness is an eye exam. The glasses or contacts are not covered, but the eye exam is paid at 100 percent.

13. COBRA/Minnesota Continuation is alive and is still a requirement. We strongly recommend that all employers offering medical, dental and/or group life enlist a local COBRA vendor to administer.

Enough for now. If you have questions or need a referral contact me at (763) 549-2260 or dpbegley@cbiz.com.

20 June 2016

AASP-MN News

PARTNERS IN PREVENTION

MPCA Regulatory Updates: Keep Manifests and Don’t Puncture Cans

In most of Minnesota, copies of hazardous waste manifests no longer need to be submitted as of April 30, 2016. Businesses in Anoka and Scott Counties are the exception – they must submit manifest copies to their county environmental department.

Copies of hazardous waste manifests must be kept for three years and you will be expected to produce them if you are visited by an inspector. More information and mailing addresses for Anoka and Scott Counties are in the MPCA’s manifest fact sheet.

To find it type “HW1-07” into the search box on the MPCA website at www.pca.state.mn.us.

In all of Minnesota, after January 1, 2017, aerosol cans and gas cylinders can be punctured or vented only if they are empty or contain non-hazardous product and propellant.

You will no longer be allowed to puncture or vent aerosol cans or gas cylinders that contain hazardous products or propellants.

An aerosol can or gas cylinder is empty when 1) you cannot hear or feel any liquid when you shake it and 2) gas or liquids are not released when the spray valve is pressed and the container is turned in all directions. If it passes those two tests, you can consider the container empty. You can then puncture and recycle it.

For aerosol cans or gas cylinders that aren’t empty, assume the product and propellant are hazardous until you have evaluated them. The MPCA has a fact sheet that walks you through the process of evaluating whether a waste is hazardous or not. To find it type “HW1-01” into the search box on the MPCA website at www.pca.state.mn.us.

Most likely, the can or cylinder isn’t empty and your evaluation will find that the product or the propellant is hazardous. Most paints and degreasers are hazardous wastes. And even when the product itself is benign, propellants are often hazardous waste because they are ignitable. Propane, n-butane and isobutene are common aerosol propellants and they are all ignitable hazardous wastes.

To make things a little easier for you, the MPCA and metro counties allow these hazardous waste aerosol cans and gas cylinders to be managed as universal waste. Universal wastes are hazardous wastes that are so common that almost all businesses generate them. Batteries and fluorescent lights are other universal wastes you are probably familiar with. Collect hazardous waste aerosols and gas cylinders in a closed container. Label the container with the date and a description of the contents, such as “Universal waste – aerosol cans.” You can accumulate universal waste for up to a year. Most hazardous waste haulers will accept aerosol cans and gas cylinders for disposal.

In the uncommon event that you evaluate the product and propellant and find both are non-hazardous, you can puncture the can, collect the contents for disposal and recycle the can.

If you don’t want to deal with assessing cans and cylinders for emptiness or hazardous waste status, look into bulk purchases of less-hazardous products and a reusable squirt bottle or air-rechargeable aerosol can. MnTAP has good information on this topic, including which brake cleaners are known to work for the automotive industry. MnTAP can be contacted at 612-624-1300 or www.mntap.umn.edu.

Puncturing cans releases the hazardous waste propellant into the air and has always been illegal. The MPCA allowed puncturing in order to encourage recycling. The allowance is being discontinued as recycling becomes integrated into disposal and we learn more about the impacts of air pollution on human health.

More information is in the MPCA’s aerosol fact sheet. To find it type “HW4-00” into the search box on the MPCA website at www.pca.state.mn.us.

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CASH IN ON YOUR MEMBERSHIP!

AASP-MN and Certegy Partnership The AASP-MN is pleased to recommend Certegy, an FIS™ Company, as the preferred provider for check warranty/verification services.

For nearly 50 years, Certegy has been the trusted leader in payment processing and loss prevention solutions supporting more than 289,000 merchants worldwide. With proven results built on innovative technology and a solid financial reputation, Certegy brings security and reliability to fraud prevention and risk management – valuable commodities for an ever-changing market.

The following program is customized specifically for AASP-MN members: • Discount rate of only 0.75 percent, which covers NSF, closed accounts and non-disputed stop payment checks • Discount rate of 0.93 percent, which includes full stoppayment coverage • No transaction or statement fees • No check minimums

• $25 monthly minimum • ACH billing and claims payment • $1.25 voice surcharge-only if remote transaction was not obtained • 60-day claim submission • Enhanced Warranty™ program-virtually eliminates disallowed claims • Discounted equipment pricing

For more information on the AASP-MN program, please contact Heather Ellis at (952) 240-5017 or heather.ellis@fisglobal.com.

You may also call toll free (877) 520-2987 to speak with a Certegy representative or email an inquiry with your company name, address and phone number to product.info@fisglobal.com and reference “AASPMN” in the subject line.

AASP-MN MEMBER BENEFIT PROGRAMS WORKERS’ COMP INSURANCE Meadowbrook Insurance Group Contact: Dennis Spindler 763-549-2238 / dspindler@cbizaia.com Up-front scheduled credit makes Meadowbrook one of the most competitive programs around for Worker‘s Compensation insurance. In addition, members are eligible to receive an annual dividend based on the group’s loss ratio. For more information, log on to www.wcpolicy.com/aaspmn.

PROPERTY/LIABILITY INSURANCE CBIZ AIA Contact: Dennis Spindler 763-549-2238 / dspindler@cbizaia.com CBIZ AIA will present AASP-MN members with quotes from multiple carriers for property/liability insurance and members can choose the program that best fits their situation. As an added bonus, CBIZ AIA will offer members an exclusive 10% discount on their property/liability insurance premiums. Ask about our program with United Fire Group!

EMPLOYEE BENEFITS CBIZ AIA Contact: Dennis Begley 763-549-2260 / dbegley@cbizaia.com CBIZ AIA will provide AASP-MN member with quotes from multiple carriers for life insurance, health insurance, long-term care and disability insurance.

UNIFORM & LINEN SUPPLIES AmeriPride Services Contact: Jim Dillon 651-955-1398 / jim.dillon@ameripride.com Discounted pricing to members on rental of uniforms, entrance mats, shop rags, etc. Purchases are also discounted. Members receive annual rebate equal to 10% of their business with AmeriPride each year.

CREDIT CARD PROCESSING Association BankCard Services Contact: Mac Hardin 952-933-2026 / mach@retailfinancialservices.biz

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Competitive rates for AASP-MN members. Terminals and printers sold at cost. Monthly rental of equipment is also available.

INDUSTRIAL & PAPER PRODUCTS Wipers & Wipes, Inc. Contact: Dennis Julson 651-486-4866 Discounts on industrial supplies and paper products.

Free, next-day delivery is available in the metro area.

Shipping free to outstate members with $100 purchase.

WEBSITE AND INTERNET MARKETING SOLUTIONS Autoshop Solutions Contact: Margaret Klemmer 888-991-3449 / margaret@autoshopsolutions.com AASP-MN members receive a $500 discount off the Website Marketing Success Package set-up fee and special pricing on template websites starting at just $59/month and $149/set-up (regularly $79/month and $250 set-up).

TECHNICAL INFORMATION HOTLINE IDENTIFIX 800-288-6220 Members enjoy discounted prices on the industry’s #1 technical information hotline, Direct-Hit. BUSINESS FORMS/CALENDARS AASP-MN Contact: Jodi Pillsbury 612-623-1110 / jodi@aaspmn.org Discount rate on printed business forms and calendars.

SALES, MARKETING AND CUSTOMER SERVICE SOLUTIONS eMarketing Sherpas Contact: Frank Terlep 888-377-2661 / www.emarketingsherpas.com eMarketing Sherpas provides AASP members up to a 10-percent discount on its Demand Engine CRM Suite, Review Engine online review and reputation marketing system and its Digital Lobby point of sale digital signage, menu board and interactive kiosks solutions.

Net Driven Contact: Jon Napoli 877-860-2005, ext. 400 / jnapoli@getnetdriven.com Net Driven is a market leader in website and internet marketing solutions designed exclusively for the automotive industry. AASP-MN members who choose Net Driven are eligible for a $500 discount off their 1st year setup fees. For more information, contact Jon Napoli.

INFORMATION PROVIDERS Mitchell1 Contact: Mitchell1 Representative 888-724-6742 x 6986 AASP members are eligible for special Mitchell 1 information and management programs at significant discounts. For more information, log onto www.mitchell1.com or contact the Mitchell 1 representative at 888-724-6742, X6986.

AUTO EMPLOYEE ASSESSMENT Assessment Associates International Contact: Ron Page (952) 854-6551 / ronald.page@aai-assessment.com www.auto.aai-live.com Designed to help facilitate and enhance hiring decisions. AASP-MN members receive 50 percent off retail price and starts as low as $15 per assessment.

Mitchell International Contact: Mitchell International Representative 800-238-9111 AASP members receive a 15% discount on any Mitchell RepairCenter TechAdvisor package. Visit http://repaircenter.mitchell.com/Catalog/OEM Repair.aspx for more information.

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PAYROLL PROCESSING CBIZ Payroll Contact: Carrie Hobrough 612-436-4620 / chobrough@cbiz.com Members receive 20% discount off standard payroll products and services (excluding 401k). Members who switch prior to June 30 will receive first month of payroll processing free.

CHECK GUARANTEE SERVICES Certegy Check Services Contact: Heather Ellis 952-240-5017 / heather.ellis@fisglobal.com Discount rate of .75% to AASP-MN members. Use existing credit card terminal. Fast claim payments.

BUSINESS COACHING 180biz 540-833-2014 / info@180biz.com Website: www.180biz.com Members receive a 20-percent discount on one-onone sales and management coaching programs (covering financial planning & analysis, strategic marketing, leadership and personnel development) without long-term commitments. Members also receive a 25-percent discount on monthly sales & management webinars as well as a 20-percent discount on all 180BIZ advisor training programs.

LEGAL CONSULTATION Fryberger, Buchanan, Smith & Frederick 800-496-6789 Members receive free, over-the-phone legal assessment and consultation (some restrictions apply) with an attorney who specializes in the area of law that is the subject of the call.

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