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InsideTucsonBusiness.com

AUGUST 9, 2013

NEWS

Tucson businesses consider options as federal health-care act approaches By Alan M. Petrillo Inside Tucson Business The Patient Protection and Affordable Care Act, now better known as Obamacare, is coming to Tucson businesses — small, medium and large — with rule changes that might modify the way those businesses approach offering medical coverage to their employees. While the act seeks to provide medical coverage for those who currently have no coverage and extend various types of medical coverage for those who already do, it also could be the cause of unintended consequences that will affect a wide swath of businesses and their employees. Last month, those businesses got a temporary reprieve from some of the regulations when the Obama administration delayed the implementation of what’s called the “employer mandate.” Chris Gordon, a benefits consultant at Crest Insurance Group, said the Affordable Care Act aims to make health coverage available to everyone, which is a laudable goal. “But the necessary increase in premiums for individual and group plans will be the largest unintended consequences of this Act,” Gordon said. “The act wanted to make coverage available for everyone, including those uninsured, but what we are seeing from premium renewals for businesses right now for 2014 is in the 20 percent to 50 percent increase for groups of two to 50 employees. Currently, the annual trend of increase is 12 percent.” The employer mandate, which requires employers with 50 or more full-time employees to purchase insurance for their employees or pay a penalty for not doing so, was due to go into effect in five months, on Jan. 1, 2014. But the Obama administration has now delayed the reporting requirement

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of the mandate, and thus the employer mandate’s implementation, for one year. “There’s some question about the legality of the delay because the law says it should go into effect this Jan. 1,” Gordon said. “The administration has said that the Internal Revenue Service, which is charged with verifying who is covered or not, would not have the employer reporting documents ready in time for a Jan. 1 implementation. That document would have the employer identify which of its employees is covered, who is not, why, and where they are covered elsewhere.” The political wrangling over the Affordable Care Act has continued, with the U.S. House of Representatives arguing that as long as the employer mandate is postponed, the individual mandate should also be postponed. Gordon said there also is a question of whether the health insurance exchanges created by the act, where individuals can purchase insurance, will be up and running in two months, by Oct. 1, as required. “There are some state exchanges that are ready to go right now, but Arizona is not one of them because our state has declined to set up its own exchange and opted to use the exchanges set up by the feds,” Gordon said. “But if this piece of the act also is delayed, it changes the picture for a lot of larger employers. They had been faced with an uncomfortable decision — either cut into their margins and pay increased costs of insurance for their employees or drop their plan and pay a penalty.” Jay Heydt, employee benefit manager at Crest Insurance, said a combination of elements is causing the increases in projected insurance costs. “We’re now entering the period of guaranteed issue,” he said. “In 2014, insurance carriers can no longer ask any medical questions to determine any risk they are

presented with in insuring someone.” Also in 2014, individuals will have to have medical insurance through some type of provider and if they don’t they’ll be penalized. “Next year, there’s a tax of $95 for not having insurance,” Heydt said. “It’s been said that many young people won’t pay for insurance, and we need them in the system, but it’s cheaper for them to pay the tax than to pay a health exchange for the insurance.” Heydt noted that currently there are seven tiers of rate comparisons, but those will be reduced to only three tiers in 2014. Who benefits from the smaller number of tiers? Older folks, he maintained. “Older persons will be averaged in with the younger population, who will see their rates go way up, perhaps up to a 100 percent increase,” he said. “But some older folks will see their rates go down, because if you’re under the age of 40 you’ll see the bulk of the increase, while those age 50 to 58 will see a negligible increase or a decline in rates. We need to have young people participating and paying their premiums, but if there are high rates and a low penalty, they won’t buy the insurance in 2014.” Heydt pointed out that by eliminating the preexisting condition clause in medical insurance policies, insurers might not get young people into the system. “Insurance companies are very concerned because the government has required them to take everyone into the system with no questions asked,” Heydt said. “But now there’s no incentive for young people to buy medical insurance, especially by getting rid of the preexisting condition clause. Remember that about 20 percent of the people use 80 continued on page 9

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Inside Tucson Business (ISSN: 1069-5184) is published 53 times per year, once weekly on Fridays plus the Book of Lists in January, by Territorial Newspapers, 3280 E. Hemisphere Loop, Suite 180, Tucson AZ 85706-5027. Cost is $1 per issue, $50 per year, $85 for two years and $105 for three years. The Book of Lists is included in annual and multi-year subscriptions or can be purchased separately for $50 per copy. Back issues from within the past 12 months are $1 each, older issues are $5 each. Home delivery is offered to addresses in metropolitan Tucson. Delivery by U.S. Postal Service is also available in the Tucson metropolitan area and is the only delivery method available outside the area. Telephone is (520) 294-1200. ©2013 Territorial Newspapers. Reproduction or use of material contained in Inside Tucson Business without permission of publisher or editor is prohibited. POSTMASTER: Send address changes to Inside Tucson Business, 3280 E. Hemisphere Loop, Suite 180, Tucson, AZ 85706-5027

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Aug. 30 Expo Nogales invites industry goods, service firms Providers of goods and services to industry are invited to showcase and attend the third annual Expo Nogales, to be held Friday, Aug. 30 from 8:30 a.m. to 6 p.m. at Nuevo Nogales Industrial Park in Nogales, Sonora. The gathering serves as a showcase to members of the Asociación de Maquiladoras de Sonora (AMS), better known as the Twin Plant Association. The organization boasts more than 100 members, many of whose plants are on the cutting edge of aviation, medical and consumer-products fabrication and who employ more than 36,000 people. The gathering will be held at Master Lock Building on Fortune Brands Avenue, about two miles into the city. The public is also invited to participate in a golf tournament the following day at Tubac Country Club that raises funds for offspring of twin-plant employees. Last year, the tournament raised more than $30,000, and this year the hopes are to exceed $40,000, said Jesus Montoya, the association’s executive director. More information is available at the association’s website, www.exponogales.org, by emailing comunicacion@amsnogales.com or by calling (01152) (631) 314-011 and 314-1228.

Roche seeks to unseat Ventana Medical board Swiss-based drug manufacturer Roche has given notice it intends to nominate candidates to replace Ventana Medical Systems entire nine-member board of directors at its 2008 stockholders meeting to be held in June. Ventana Medical’s bylaws require written notice of proposed stockholder nominations for the election of directors at the next meeting be received no later than Dec. 7. On June 27, Roche launched a $3 billion hostile takeover effort of Oro Valley-based Ventana Medical, whose board of directors has steadfastly recommended against shareholders accepting the $75 per share deal as under-valued. Roche has extended its offer four times, with the current set to expire Jan. 17. Ventana Medical has agreed to open its books to allow due diliegence, which Roche says it has done to a limited degree.

Edition index Inside Media Public Notices Calendar Lists Profile Meals and Entertainment Arts and Culture

5 6 6 14 15 17 17

Finance Briefs Real Estate & Construction Biz Buzz Editorial Classifieds

18 19 19 20 20 23


InsideTucsonBusiness.com

AUGUST 9, 2013

HEALTH CARE SPECIAL EDITION

Summer 2013 AFFORDABLE CARE ACT CONTINUED FROM PAGE 3

percent of the medical expenses.” Gordon pointed out that “the Obama administration, with the delay of the employer mandate, kind of pulled the rug out from under health insurers, who had been cheerleaders for the act. They were guaranteed to get a large number of uninsured individuals, but had to agree to no underwriting, no pre-existing conditions and limits on the kinds of plans offered and what is mandated in those plans.” Gordon says, “Insurance companies are scrambling now because they’ve already filed their rates based on the promise of increases in rosters and enrollment. If that doesn’t happen, they’ll have to refile the rates and instead of expecting a 20 percent to 40 percent increase in premiums, the rates might go up that much more again.” Terry B. Dwyer is executive director of the Udall Law Firm in Tucson, a litigation and intellectual property legal services firm with 43 employees, including attorneys and support staff. The law firm currently pays 100 percent of the employee’s cost for health and dental care coverage and a portion of the premium of the employee’s spouse and family members. “We finished a salary review for nonpartners recently and after hearing various reports of the tremendous increases in health care costs looming, kept the salary increases low out of a precaution the insurance rates will go up,” Dwyer said. “So Obamacare has affected our planning where we’ll take a wait-and-see approach

about health care coverage.” Dwyer said that Crest Insurance advised the law firm it might consider dropping health care coverage to allow employees to get their insurance through the health care exchanges that are being set up. “It’s an option for us to consider,” he said, “especially if health insurance coverage becomes unaffordable for companies like us.” Dwyer noted that in the health insurance exchanges, employees would be able to purchase health coverage based on their income levels. “We would be allowed to give an employee an allowance to purchase health insurance through the exchange, and as long as we make provisions for them, the firm would be below the threshold for the penalty.” The act assesses businesses a penalty of $2,000 annually for each full-time equivalent employee in the workforce in excess of 30 if the employer fails to provide what the Act calls “minimum essential coverage.” However, this part of the Act essentially has been delayed with the delay of the employer mandate. Rachel Chanes, practice administrator for Pima Dermatology in Tucson, said the practice has 28 employees — 20 full-time and eight part-timers. “As long as an employee of ours works 30 hours a week, they have the option of joining our PPO or HMO sponsored health insurance program,” Chanes said.

“Seventy-five percent of our employees participate, while others are covered by their spouse’s plan.” Chanes said Pima Dermatology pays 75 percent of the medical premium for employees and 100 percent of the dental coverage premiums. “Every year we’ve been accustomed to having premium increases and tinkering with the plan so we don’t pass on steep increases to employees because we want to retain them,” she said. “But we have more questions than answers with Obamacare, which is very unsettling for us.” Chanes said the practice is undecided as to whether it will assume the extra costs under the Act or provide employee vouchers to participate in the health care exchanges. “We’re having open enrollment for our plans right now, so we know our reality for the next 12 months,” she observed. “But after that, Crest Insurance has advised us that the insurance market might be like the wild, wild West.” Another unintended consequence of the Affordable Care Act, according to Gordon, is that while many employers currently pay a portion of the premiums for an employee’s covered dependents, a huge increase in premium costs might cause them to rethink that policy. “If an employer sees costs go up by 40 to 50 percent, it might limit its contribution to the employee’s premium only,” Gordon said. “Dependents might have to pay full price, drop coverage or go into the

health insurance exchange for coverage, but they won’t be eligible to a tax credit in the exchange.” There are other impacts to the act, Heydt added. “There’s a new requirement for minimum essential coverage — pediatric visual and pediatric dental coverage,” he said, “which typically are not covered in plans today. These and other supplemental mandates are getting heaped on the medical plan where a certain level of benefits must be provided to pass muster with the government. So everyone is paying to cover a small segment of the population.” For individuals not covered by an employer plan, there’s the possibility of getting subsidies from the federal government, Gordon pointed out. “The act says verifiable information must be given by the applicant about their income and the Internal Revenue Service was supposed to check on that figure on an individual basis through IRS technology,” he said. “But the IRS has said its too difficult to check each individual claim and instead will rely on stated income by the applicant and do random spot checks.” Gordon shakes his head before continuing. “Using stated income is how the country got into the housing market troubles with mortgages a few years ago,” he said. “I think with this act, the legislators bit off more on a technological basis (with IRS monitoring) than they could possibly chew. And instead of swallowing, they are spitting it out.”

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10 AUGUST 9, 2013

HEALTH CARE

InSIde TUcSon BUSIneSS

Noelle Haro-Gomez

Building the infrastructure for the Affordable Care Act

Brian Barker, co-owner and vice president of BarkerMorrisey Contracting (left), with Kevin Morrissey, co-owner and president.

By Stacy Naughton Inside Tucson Business With the Affordable Care Act (ACA) scheduled for implementation in early 2014, there is a lot of talk about the insurance aspect of the bill but little is being said about where the newly insured will go for medical treatment. BarkerMorrissey Contracting, 3619 E Speedway, is doing a lot of talking and preparing for the surge in the construction of medical facilities throughout Tucson and Southern Arizona. With a combined 50 years of experience, BarkerMorrissey is confident that it will be at the center of this new wave of construction especially since they do not utilize the older logic of building, which is to design, bid, then build. Oftentimes this method of building is more costly and increases the time it takes to complete a project. “One of the drawbacks is the changes that are made after the drawings and bid is complete — that is the most expensive time to make changes,” said Brian Barker, vice president of BarkerMorrissey. So BarkerMorrissey gets involved in the drawing or designing aspect of a project to give its client an accurate, up-front picture of what the costs will be. This is called Integrated Project Delivery (IPD) or Construction Management at Risk. This team approach — having the architect, contractor and owner working together —is not only cost-effective but also speeds up the process of building, explained Barker. “It really is a team approach,” said Barker. “It’s a win-win for everybody.”

According to Barker, it can take up to 24 months to build out a project using the traditional design, bid, build. But BarkerMorrissey can pull permits and begin the initial demoing or construction process within six to eight weeks. “The time saved is huge,” said Barker, “It’s a big, big difference.” BarkerMorrissey is focusing its efforts primarily in Tucson and Southern Arizona since it estimates more clinics being built in rural areas similar to a CVS or a Walgreens and less like a hospital setting. “We just want to be prepared,” said Barker. “We can compress (building) schedules considerably by picking the right team and working as a team.” BarkerMorrissey not gets only involved early on in the planning of a new or repurposed project but is also able to make changes to a building while the site is still open for business. For a contractor to be able to do this for a medical facility takes an extra level of caution, explains BarkerMorrissey. With 17 percent of Arizonans uninsured, the number of medical facilities that will need to be built is unknown. “People are still trying to understand the Affordable Care Act and what it means,” said Keven Morrissey, president of BarkerMorrissey. “We are trying to get in front of that curve and help clients as they see fit.” The company is currently preparing for what the ACA will mean for the construction industry. “It’s a brand new concept,” said Morrissey, “It’s exciting.” For more information about BarkerMorrissey Contracting, visit their website at www. barkermorrissey.com or call 520-323-3831.


InsideTucsonBusiness.com

AUGUST 9, 2013

HEALTH CARE

11

AHCCCS spurs growth By Stacy Naughton Inside Tucson Business Anyone who will be affected by either the Arizona Health Care Cost Containment System (AHCCCS) expansion or the new Affordable Care Act (ACA) slated to begin in January of 2014 should be making plans now. The Community Partnership of Southern Arizona (CPSA), 4575 East Broadway, is anticipating growth to its facility primarily due to the 300,000 additional Arizonans who will be eligible for AHCCCS. “The growth isn’t all going to hit in January,” said CPSA President and CEO Neal Cash. “It will be staged.” The $1.6 billion expansion of AHCCCS falls under the ACA and that means more Arizonans will have their insurance reinstated or be newly insured. CPSA is the Regional Behavioral Health Authority (RBHA) contracted by the state of Arizona to ensure that individuals and families receive behavioral health services. Cash estimates that of the 300,000 people who will qualify for AHCCCS, 20 percent, or 60,000, are in Pima County. Of

those, an estimated 10,000 may be sent to CPSA. Cash said many people who lost medical coverage under AHCCCS may now be eligible again. Those who thought they were ineligible in the past are encouraged to find out if they can now receive coverage. “That will be the biggest expansion we will see,” said Cash, who is preparing for the increase of individuals insured through AHCCCS. CPSA will know what its funding for the next fiscal year will be in October 2013. It will track growth and the increase in those insured to see what changes need to be made and adjust funds accordingly. Those individuals who do not qualify for AHCCCS can still access medical insurance through the ACA’s insurance exchange or it may be provided by their employer once the bill goes into effect. Either way, between AHCCCS and the exchange, Cash anticipates a lot of change and growth for CPSA. “We will see how it rolls out over time,” said Cash. For more information about CPSA, go to www.cpsa-rbha.org or call 520-325-4268.

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12 AUGUST 9, 2013

InSIde TUcSon BUSIneSS

HEALTH CARE

Lovitt & Touché campaigns for health care education By Christy Krueger Inside Tucson Business If you’re an employer, there’s more to swallow than you may imagine when it comes to the new health care law. But if you become educated and plan in advance, you may find the Affordable Care Act offers new opportunities, according to Chris Helin, vice president of Lovitt & Touché Insurance. Helin and other representatives of Lovitt & Touché began offering seminars to clients and prospective clients shortly after the law was passed in 2010. The presentations are two-fold — educating businesses on the ins-and-outs of the law — and offering suggestions on how the law may benefit them. There are many variables of the Affordable Care Act, but one of the most important issues for employers to understand, and what Lovitt & Touché concentrates on with its clients, is compliancy — who the law affects and what their obligations are. Here, with help from Helin, is an explanation of some primary issues. These will deal with legislative mandates for compa-

BIZ FACTS

BY THE NUMBERS $11,490 is the single-person household adjusted gross income Federal Poverty Level for 2013 $15,856 is the single-person household adjusted gross income Arizona Poverty Level (133% of the Federal Poverty Level) for 2013 $126 per month is 9.5% of the single-person household’s adjusted gross household income. $45,960 is 400% of the federal poverty level for a single-person household, under which an employe can receive tax credits and the employer can be charged a Shared Employee Responsibility Penalty.

nies with the equivalent of 50 or more fulltime employees. It requires three things from them. “Insurance coverage must be fair, affordable and acceptable,” Helin stated. To be fair, the employer must offer health insurance to all staff members who work at least 30 hours per week. Affordability is judged by how much the

employer charges each employee for insurance premiums. This cost must be less than 9.5 percent of the worker’s adjusted gross household income (AGHI). And to be acceptable, Helin said, the plan has to cover, on average, at least 60 percent of medical costs. If the employer misses any of these three conditions, the employee can go to the state insurance marketplace starting Oct. 1 to buy medical coverage. If that person’s AGHI is less than 400 percent of the federal poverty level, he or she can also receive tax credits, and the employer will be charged a Shared Employee Responsibility Penalty. Residents of Arizona and 33 other states are expected to use the federally operated Health Insurance Marketplace. When a company meets all the employer mandates, it has what Helin calls a lock-out strategy in place, so if an employee tries to buy insurance from a marketplace exchange, he or she will not receive tax credits. Another scenario involves Medicaid-eligible employees. Arizona’s legislature this past session voted to expand the Medicaid qualification to 133 percent of the federal poverty level in order to receive additional monies from the federal government. Businesses will not be penalized for these employees. In addition to meeting the above three rules of health insurance compliance, companies with 50 or more full-time equivalent employees are required to file paperwork concerning their benefits to the IRS (Forms 6055 and 6056). This portion of the law was recently postponed, but everything else is on track. “Separate from the penalties, you must

give notice to employees by Oct. 1 and explain how exchanges work — a description of the services and how to contact the exchanges,” Helin reported. Although the federal government issued a model notice, Helin recommends businesses go beyond the minimum requirements and provide their employees with as much information as possible. Companies should be able to receive help understanding the Affordable Care Act from their insurance provider. Attorneys and accountants are also consulting on health care reform questions. Wherever the help comes from, Helin said it’s important for employers to become familiar with all facets and choices available because it could save them money. Tax rules may come into play, and issues such as having employees in other states can complicate matters. On the other side of the coin, Lovitt & Touché has the philosophy that the Affordable Care Act may present opportunities to employers. Benefits have always been an important part of an employee compensation package, but now they could make or break a potential new hire’s decision. Helin offered the example of an interviewee who is better informed on the personal impact of marketplace exchanges than his potential new boss. A manager or human resources director who can clearly communicate the company’s benefits to prospective employees may have a hiring advantage. “Employers have a choice,” Helin said. “They can decide to comply with the legislation and stop there or they can use the opportunities included in this law and restructure compensation so they become more competitive for talent.”

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InsideTucsonBusiness.com

HEALTH CARE

LEGAL FRONTLINE

Mandate postponement doesn’t give employers a free pass The federal Affordable Care Act (ACA) has amended the Fair Labor Standards Act to prohibit employers from retaliating against an employee for receiving a tax credit or subsidy for purchasing health coverage through one of the health insurance exchanges or marketplaces set up under Affordable Care Act. Employers are also prohibited from disciplining or firing an employee for complaining about anything the employee reasonably believes is a violation of the coverage requirements under the the new healthcare act. An employer would expose itself to a retaliation claim if, for example, it learns in 2014 that one of its employees is receiving a tax credit or subsidy for purchasing coverage through a marketplace, and in response the employer discharges that employee or reduces KEVIN GREEN his or her hours to avoid the Affordable Care Act employer mandate in 2015. Under the Affordable Care Act employer mandate, employers with 50 or more full-time equivalent employees who do not offer their full-time employees (those working on average of more than 30 hours per week) “minimum essential coverage” that is “affordable” and provides “minimum value,” face stiff tax penalties if one of their employees receives a premium subsidy or tax credit for coverage provided through one of the marketplaces. Many employers have been conducting layoffs and are reducing employees’ hours in 2013 in anticipation of the employer mandate. This strategy presents some risks in 2013 and even though the employer mandate penalties have now been delayed until 2015, it will become far more risky in 2014 after the marketplaces and the related individual tax credits and premium subsidies are in place. The Occupational Safety and Health Administration (OSHA) will enforce the Affordable Care Act Whistleblower/ Retaliation prohibition and its interim enforcement rules establish extremely employee-friendly procedures for investigation and resolution of these claims. For example, a complaining employee can establish a case of retaliation merely by providing evidence that his or her receipt of an Affordable Care Act tax credit or subsidy was a “contributing factor” in the employer’s decision to take an adverse employment action such as a

discharge, lay off or reduction in hours. The burden then shifts to the employer to prove by clear and convincing evidence it would would have taken the employment action even if the employee had not engaged in the protected activity. This will be a difficult bar for employers to overcome if there is evidence the employer knew the employee was receiving a subsidy or tax credit around the time the employer took the complained of action. It is also unlawful under section 510 of the Employee Retirement Income Security Act (ERISA) for an employer to “suspend, expel, discipline or discriminate” against an employee “for the purpose of interfering with the attainment of any right” to which the employee may become entitled under the employer’s health plan. The Affordable Care Act requires employers to enhance coverage under their plans in 2014 in numerous ways, including by eliminating pre-existing conditions exclusions, eliminating annual limits on benefits, and limiting deductibles. Therefore, even if it is not unlawful under the Affordable Care Act to reduce an employee’s hours or lay him or her off in 2013 in order to avoid the ACA employer mandate, an employee may argue that doing so interfered with his attainment of enhanced benefits under the plan in 2014, ERWIN KRATZ in violation of ERISA. Labor and employment issues surrounding the Affordable Care Act, and its relationship to the Fair Labor Standards Act and Employee Retirement Income Security Act are complex and a misstep could be costly. While the one year delay in the employer mandate penalties gives covered employers some breathing room, the options and alternatives for dealing with the new federal mandates will continue to dwindle between now and Jan. 1, 2014, when the risks associated with restructuring your workforce to avoid the mandate will escalate significantly. Covered employers are advised to consult with their counsel well in advance of January 2014 to deal with these issues.

Contact Erwin Kratz at ekratz@fclaw. com and Kevin Green at kgreen@fclaw.com. Both are attorneys with Fennemore Craig. Kratz practices in the areas of ERISA and employee benefits law and Green practices in the areas of civil litigation, employment and civil appeals.

AUGUST 9, 2013

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14 AUGUST 9, 2013

Inside Tucson BusinesS

Supplemental Benefit Plans Rank Rank 2013 2013 2012

Business Business Address

Phone Phone Corporate Email Corporate Website Email

Types of Benefit Plans Carried

Address

Types of Benefit Plans Carried

Available to Available Businessesto

Available to Available Individualsto

Year Establ. Year Establ. Locally

NR

Aflac Aflac N. Oracle Rd., Ste. 240 6700 6700 N.AZ Oracle Rd., Ste. 240 Tucson, 85704

(520) 293-4422 (520) 293-4422 jack_gathings@us.aflac.com jack_gathings@us.aflac.com aflac.com

Accident, cancer, dental, vision, short term disability, hospital, critical care

Yes

Yes

1955

Health, auto, life, home, travel, identity theft

Yes

Yes

2005

Auto, home, powersports, personal umbrella, identity theft, life

Yes

Yes

N/A

Auto, home, powersports, personal umbrella, identity theft, life

Yes

Yes

N/A

Accident, life, disability, cancer, critical illness, hospital indemnity

Yes

Yes

1960

Accident, life, disability, cancer, critical illness, hospital indemnity

Yes

Yes

1960

Short-term medical, critical illness, short-term convalescent care, whole life

Yes

Yes

1929

Short-term medical, critical illness, short-term convalescent care, whole life

Yes

Yes

1929

Whole life, term life

No

Yes

1968

Whole life, term life

No

Yes

1968

Employer stop-loss, group term life, individual medical, small group medical, short-term medical, vision, dental, volunteer firefighters

Yes

Yes

1958

Employer stop-loss, group term life, individual medical, small group medical, short-term medical, vision, dental, volunteer firefighters

Yes

Yes

1958

2012 NR

Tucson, AZ 85704 AIG American International Group, Inc. 70 Pine St. AIG American International Group, Inc. New York, NY 10270 70 Pine St.

NR

NR

New York, NY 10270 Allied Insurance 5010 Shea Blvd., Ste. D100 AlliedE.Insurance Phoenix, AZ 5010 E. Shea85254 Blvd., Ste. D100

NR

NR

American Phoenix, AZFidelity 85254 Assurance Company P.O. Box 25523 American Fidelity Assurance Company Oklahoma City, OK 73125

1

1

P.O. Box 25523 American Republic Insurance Company Oklahoma City, OK 73125

NR

601 Sixth Ave. American Des Moines,Republic IA 50309Insurance Company

NR

601 Sixth Ave. Colonial Penn Life Insurance Company Des Moines, IA 50309

NR

399 Market St. Colonial Penn Insurance Company Philadelphia, PA Life 19181

NR

399 MarketSecurity St. Standard Life Insurance of New York Philadelphia, 19181 485 Madison PA Ave. New York, NY 10022Life Insurance of New York Standard Security

NR

NR

485 Madison Ave.

Website

aflac.com (877) 638-4244 N/A 638-4244 (877) aig.com N/A

aig.com (800) 233-0394 N/A (800) 233-0394 alliedinsurance.com N/A (800) 654-8489 alliedinsurance.com N/A (800) 654-8489 afadvantage.com

N/A (800) 247-2190 afadvantage.com

N/A (800) 247-2190 americanrepublic.com

N/A (877) 877-8052 americanrepublic.com N/A (877) 877-8052 colonialpenn.com

N/A (212) 355-4141 colonialpenn.com info@sslicny.com sslicny.com (212) 355-4141 info@sslicny.com

Businesses

Accident, cancer, dental, vision, short term disability, hospital, critical care

Yes

Health, auto, life, home, travel, identity theft

Individuals Yes

Yes

Yes

Locally 1955

2005

Ranked by theNew number Arizona policies York,of NY 10022 sslicny.com Ranked information is provided by business representatives at no charge and is ranked alphabetically in case of ties. Other businesses were contacted but either declined or did not respond by deadline. There is no charge to be included in Inside Tucson Business listings. N/A=not provided WND=would not disclose NL=not listed last year NR=listed last year but ranking criteria not provided

Ranked by the number of Arizona policies Ranked information is provided by business representatives at no charge and is ranked alphabetically in case of ties. Other businesses were contacted but either declined or did not respond by deadline. There is no charge to be included in Inside Tucson Business listings. N/A=not provided WND=would not disclose NL=not listed last year NR=listed last year but ranking criteria not provided

HMO, PPO, & Indemnity Companies Rank Rank 2013 2013 2012 2012

Business Business Address Address

United Healthcare of Arizona, Inc. United Healthcare 1 1 E. Washington St. of Arizona, Inc. 1 1Phoenix, E. Washington St. AZ 85004 2 Phoenix, AZ 85004 2 Blue Cross Blue Shield of Arizona 2 Blue BlueCir., Shield Arizona 5285 Cross E. Williams Ste. of 1000 2 Tucson, 85711Cir., Ste. 1000 5285 E. AZ Williams 1 Tucson, AZ 85711 1 Health Net of Arizona, Inc. & Health Net Life Insurance Company 3 5255 E. Net Williams Cir., Ste. Inc. 4000& Health Net Life Insurance Company Health of Arizona, 3 Tucson, 85711Cir., Ste. 4000 4 5255 E. AZ Williams Tucson, AZ 85711 4 PacifiCare of Arizona 4 401 N. 44thof St.Arizona PacifiCare Phoenix, AZ 85008 NL 4 401 N. 44th St. Phoenix, AZ 85008 NL Aetna Health, Inc. 5 4350 Cotton Center AetnaE.Health, Inc. Blvd., Bldg. 3 Phoenix, AZ 85040 3 5 4350 E. Cotton Center Blvd., Bldg. 3 CIGNA HealthCare Phoenix, AZ 85040 of Arizona 3 6 11001 N. Black Canyon Hwy., Ste. 400 CIGNA HealthCare of Arizona Phoenix, AZ 85029 56 11001 N. Black Canyon Hwy., Ste. 400 Humana,AZInc. Phoenix, 85029 5 7 5210 E. Williams Cir., Ste. 200 Humana, Tucson, AZInc. 85711 7 7 5210 E. Williams Cir., Ste. 200 Banner Medisun, Tucson, AZ 85711 Inc. 7 8 13632 N. 99th Ave., Ste. B Banner Sun City,Medisun, AZ 85351 Inc. 8 8 13632 N. 99th Ave., Ste. B Scan Health Plan Arizona Sun City, AZ 85351 89 1313 E. Osborn Rd., Ste. 150 Scan Health Plan Arizona Phoenix, AZ 85014 10 9 1313 E. Osborn Rd.,Plan Ste. 150 CareMore Health of Arizona Phoenix, AZ 85014 10 10 7091 E. Speedway Tucson, AZ 85710 9 Health Plan of Arizona 10 CareMore 7091 E. Speedway Arcadian Health Plan, Inc. Tucson, AZ 85710 9 11 3767 Karicio Ln., Ste. D Prescott, 86303Plan, Inc. 11 ArcadianAZHealth 11 3767 Karicio Ln., Ste. Health D Abrazo Advantage Plan, Inc. 12 Prescott, AZ 86303 11 7878 N. 16th St., Ste. 105 Phoenix, AZ 85020 12 Advantage Health Plan, Inc. 12 Abrazo 7878 N. 16th St., Ste. 105 Ranked by the number of Arizona members

Phone Phone Company Email Company Website Email Website

(866) 374-6057 (866) N/A 374-6057 N/A uhc.com uhc.com (800) 621-5563 (800) N/A 621-5563 azblue.com N/A azblue.com (800) 289-2818 N/A (800) 289-2818 healthnet.com N/A healthnet.com (800) 347-8600 N/A (800) 347-8600 pacificare.com N/A pacificare.com (602) 263-3000 N/A (602) 263-3000 aetna.com N/A

No. of Arizona No. of Arizona Members Members

No. of Contracting No. of Contracting Hospitals Hospitals

1,400,000 1,400,000

79 79

1,200,000 1,200,000

77 77

169,215 169,215

66 66

93,982 93,982 89,518 89,518

No. in Network: No. in Network: Primary Care / Primary Care / Specialist Specialist

Top Local Executives Top Local Executives

Year Year Establ. Establ. Locally Locally

Jeri Jones Jeri Jones

1985 1985

3,828 / 11,233 3,828 / 11,233

Richard L. Boals Richard L. Boals

1939 1939

2,721 / 11,021 2,721 / 11,021

Rose Megian Rose Megian

1981 1981

N/A N/A

Brendan Baker Brendan Baker

1985 1985

N/A N/A

Frank Benedetto Frank Benedetto

1984 1984

Stephanie Gorman Hurlbut

1978

(602) 942-4462 57,031 N/A aetna.com N/A (602) 942-4462 57,031 N/A cigna.com N/A (520) 571-6548 56,980 59 cigna.com N/A (520) 571-6548 56,980 59 humana.com N/A (623) 974-7444 21,133 N/A humana.com N/A (623) 974-7444 21,133 N/A bannerhealth.com N/A (866) 490-7226 13,936 N/A bannerhealth.com aznetmgmt@scanhealthplan.com (866) 490-7226 13,936 N/A scanhealthplan.com aznetmgmt@scanhealthplan.com (520) 721-5777 10,185 N/A scanhealthplan.com N/A caremore.com (520) 721-5777 10,185 N/A N/A (800) 887-6177 4,994 N/A caremore.com humanresources@arcadianhealth.com arcadianhealth.com (800) 887-6177 4,994 N/A humanresources@arcadianhealth.com (602) 824-3900 2,643 N/A arcadianhealth.com N/A abrazoadvantage.com (602) 824-3900 2,643 N/A N/A Phoenix, AZ 85020 abrazoadvantage.com 12 Information is provided by the 2011 Arizona Department of Insurance Annual Report and companies. Other companies were contacted but either declined or did not respond by deadline. There is no charge to be included in Inside Tucson Business listings.

3,482 / 4,009

3,482 / 4,009

Stephanie Gorman Hurlbut

1978

Curt Howell Alice Roe Curt KorenHowell Sherrick Alice Roe Peter S.Sherrick Fine Koren

1984

Peter S. Fine

1985

Elizabeth S. Russell

1998

Elizabeth S. Russell

1998

Dan Peterson

2009

Dan Peterson Roy Dickerson

2009 2005

Roy Dickerson Dan Ausman

2005 N/A

Dan Ausman

N/A

1984 1985

N/A=not provided WND=would not disclose NL=not listed last year NR=listed last year but ranking criteria not provided Ranked by the number of Arizona members Information is provided by the 2011 Arizona Department of Insurance Annual Report and companies. Other companies were contacted but either declined or did not respond by deadline. There is no charge to be included in Inside Tucson Business listings. N/A=not provided WND=would not disclose NL=not listed last year NR=listed last year but ranking criteria not provided

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InsideTucsonBusiness.com

AUGUST 9, 2013

HEALTH CARE

15

By Christy Krueger Inside Tucson Business

“A CATCH session lasts one hour. It’s 10 minutes on a lesson, 20 minutes of healthy snacks — carrot sticks, celery, yogurt, fruit — and 30 minutes of moderate to vigorous exercise. They play ball games, non-elimination games, Hula-Hoop, running — to get the heart beat up,” Eppihimer explained. “Lessons include teaching kids to teach Mom and Dad how to buy fresh produce at the grocery store, changing eating habits, learning what’s healthy versus what’s high calorie. They pass it along to parents, friends Students of Soleng Tom and caregivers to change habits and Elementary participate cut down on screen time. Kids learn to in a game with instructor combat peer pressure and how to balD.J. Gregory. OASIS is in ance calories with exercise levels.” partnership with Soleng Feedback from volunteers, here and Tom Elementary. across the country, indicates they’re getting as much out of the healthy curriculum as the kids are. “It fits into our model of health and wellness. They learn the value of exercise and eating well. They report to us they’re learning new exercise habits,” Eppihimer noted. He plans to gradually add more Tucson Unified School District schools, library branches and Boys & Girls Clubs of Tucson clubhouses, depending on the number of

Kids and seniors are joining together in the fight against childhood obesity through an educational program presented by Tucson OASIS. Together, the adult volunteers and the K-5 students they mentor are learning how to live healthy lifestyles while having fun at the same time. In the past 30 years, childhood obesity rates in the U.S. have tripled due to poor eating habits and a decline in physical activity. This, in turn, is leading to an increased risk of chronic conditions in adulthood, costing our nation billions of dollars in patient care, according to a 2012 report by CNN Health. Setting out to reverse this dangerous cycle are Tucson OASIS and 18 other OASIS locations around the country, with its CATCH (Coordinated Approach To Child Health) Healthy Habits program. Founded in St. Louis, Mo., in 1982 as a non-profit organization, OASIS promotes successful aging among adults 50-plus. The Tucson branch opened in 1989 inside what was then the Foley’s department store at El Con Mall. It now operates out of the Junior League of Tucson building on River Road where it holds many of its classes. Originally known as Older Adult Service and Information System, OASIS now simply goes by its acronym. “It’s a three-prong approach,” said David Eppihimer, executive director of Tucson OASIS. “First is lifelong learning — classes, such as the arts and humanities. Second is health and wellness. We have lots of programs to stay active, like exercise and dance. And there’s arthritis and Laura Balis, left, program BIZ FACTS diabetes self-management. The third director of CATCH Healthy is community involvement.” Habits and David EppiTucson OASIS himer, executive director of In June, Tucson OASIS kicked off 2099 E. River Road Tucson OASIS. its free, month-long summer pilot www.oasisnet.org of CATCH Healthy Habits at Soleng (520) 322-5627 volunteers he and Balis can Tom Elementary School, 10520 E. recruit. “We are seeking volCamino Quince off Houghton Road on the east side, and the Boys & Girls Clubs unteers to be mentors for when school starts,” of Tucson Holmes Tuttle Clubhouse, 2585 E. he said. “We’ll need 25-30 volunteers for the 36th St. Laura Balis, who has experience with first eight-week fall session and 50 for the next a similar curriculum in Montana, was hired in fall term.” Mentors attend training sessions May as program coordinator. Funding for the with Balis after going through background Tucson program’s first two years comes from checks. Eppihimer added that OASIS always welCareMore, a Medicare Advantage provider comes donations, and businesses can help operating in Arizona. Fall sessions will expand to eight-week CATCH Healthy Habits grow by becoming after-school programs at the two pilot sites sponsors or providing volunteers. “A lot of businesses encourage their emplus a Pima County Library location yet to be finalized but most likely will be the Eckstrom- ployees to volunteer in the community. Or if Columbus Branch Library, 4350 E. 22nd St. An they would step up to sponsor the program, existing relationship with the library system, we could add another partner or more locawhich provides classroom space for OASIS, tions of the partners we have. We could esnaturally progressed into a partnership with pecially use a business connection tied with exercise, food or health.” CATCH Healthy Habits.

Photos by Noelle Haro-Gomez

Intergenerational mentoring shapes healthy habits

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16 AUGUST 9, 2013

Inside Tucson BusinesS

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Inside Tucson Business Health care special 2013  
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