Wednesday turned out to be even better than the previous two days.  The quality of the panelists and speakers was extremely impressive.  Two speakers stood out:  Steve Larsen, Deputy Administrator and Director of the Center for Consumer Information and Insurance Oversight, (CCIIO), Center for Medicare and Medicaid Services (CMS), U.S. Department of Health and Human Services, and John Boehner, Speaker of the U.S. House of Representatives, Representative (R-OH).  The fact that NAHU was able to hear the Speaker of the House on the morning after the State of the Union address is a testament to the influence and recognition our association now has in Washington.

Yesterday, a milestone was announced by our association Executive Vice President and CEO, Janet Trautwein.  Very soon, a piece of legislation to help protect agents’ jobs by taking agent commissions outside the Medical Loss Ratio (MLR) requirements will be introduced in the Senate.   The bi-partisan group with their name on the bill at this point are: Mary Landrieu (D-LA), Johnny Isakson (R-GA), and Ben Nelson (D-NEB). The announcement of a fourth sponsor is expected very soon.   This bill will compliment HR 1206 in the House which currently now has over 170 signatures thanks, in part, to the effort of NAHU members this week.  Our own representative, Trey Gowdy (R-4th), put his name on the bill yesterday as well.  We met with the staff of both of our Senators today and encouraged them to support the bill when it is introduced to the Senate.

I can tell you that my time at Cap Conference was time well spent.  I would encourage all of our members to take advantage of attending next year’s conference. The representatives with whom we met admitted that they rely heavily on information provided by NAHU, in conjunction with industry professionals, in formulating their position.  They encouraged us to contact them when there are issues that we feel need to be addressed.

In the coming days, I will be forwarding some information to assist you in spreading the word to your clients as well as your local representatives. Engaging your clients in the discussion will further support the value we, as agents, bring to our clients.   We need to keep the dialogue going, as it will only benefit you in the future.  I want to personally thank each of you for allowing me the opportunity to represent LAHU in Washington, and I again will encourage more of our membership to attend next year.

Tuesday’s visit to the hill was extremely interesting.  The fact that the President gave the State of the Union address last night adds an additional dimension to the visit.

As is often the case, we met primarily with staffers to discuss the issues they felt they needed to gain a better understanding of and offer our expertise to assist them going forward.  The representatives from our state, for the most part, are behind our efforts and agree that PPACA will impose a significant cost burden on the citizens of South Carolina.  The representatives with whom I met, Scott and Mulvaney, both support HR 1206, and we thanked them for their support.

The topic of repeal came up in all of our conversations.  We all agreed that the outcome of the Supreme Court decision, as well as the outcome of the elections, can and will have a significant impact on the direction reform takes.  However, the prevailing sentiment is that regardless of the above outcomes, health reform is here to stay.  Representatives will continue efforts to dismantle certain provisions by proposing legislation that will focus on specific aspects of the bill, such as those that essentially add an additional tax and negatively impact premiums.  With this being an election year, as would be expected, the posture will be to not rock the boat too much. 

It has become very apparent to me that we must continue to press our legislators and educate them as to the role we play as agents.  They have a general understanding but for the most part, this is not their area of expertise.  What we bring to the table essentially is a marketplace to create access to the purchase and understanding of health insurance-an Exchange.  We do not need to reinvent the wheel but rather expand on the resources currently available.  All of us need to make every effort to educate our state representatives and business owners as to the impact reform is going to have on them.  By doing so, all of us will be increasing the value we bring to our clients as well as improving our chances of playing a key part in our future ability to be paid as professional advisors.

Cap Conference 2012 has begun and I am reminded why I avoid traveling north this time of year.  This being my first Cap Conference, I was unsure as to what to expect.  I can tell you this is something everyone in our industry should be required to attend.  In the short time I have been here, I have gained a much greater appreciation of the work done by our association leaders.  What they do on our behalf to make sure we have a role in the future is evidenced in the work they did to put together this conference.  NAHU is a well recognized force on Capitol Hill and there will be 700 of us meeting with approximately 400 of our states representatives to discuss the role and value of agents.

One of the breakout sessions today focused on the state and federal exchanges.  Tim Hill, Deputy Director of Consumer Information and Insurance Oversight, CMS, the newly formed division to help states oversee the development of their exchanges, gave us an update on the progress of the federal exchange. He presented us with the challenges that lie ahead in meeting the time constraints but seemed to indicate things were on track.  What was positive in the message was the fact that agents will play a part in the delivery process.  How agents will be compensated remains a topic of intense discussion.

As states determine what they will do, our association needs to take a grassroots proactive approach in making sure that our legislators understand the role the agent plays in today’s health insurance delivery system.  Our clients have a greater appreciation of what we do and that message needs to be conveyed to the people who will legislate our future.  As I have said, we need to make our voices heard in our communities, with our state representatives as well as our national representatives.  Being a member of NAHU is the first step.  Being an active participant and supporter is the most important step. 

Tomorrow, we will be lobbying our respective representatives of our districts.   I will let you know how that goes and the general sentiment on the hill.

Until then, stay tuned and enjoy your week.

Tom Swayne

The David M. Gilston Insurance Agency, which supports insurance brokers and agents, now has exclusive rights in South Carolina to sell Netchex, the fastest growing payroll, benefits, human resources, and time and attendance service in the U.S. As the first insurance agency in South Carolina offering this technology, the Gilston Agency is able to minimize the complexity and cost of benefit administration.

Netchex integrates payroll and employee benefits through one web portal, which helps companies easily manage employee information and simplify the entire payroll process.  Clients are able to automate many processes that were handled manually, such as COBRA and notifications of when new hires are eligible for various benefits. With Netchex, the human resource team doesn’t have to keep track of such dates; instead, they’re notified by the system. 

The Gilston Agency has access to benefits information from the system allowing them to communicate with insurance carriers on clients’ behalf regarding new hires, terminated employees and open enrollment. This allows the Gilston Agency to provide assistance with plan design, employee enrollment meetings and cost-saving strategies.

“With the rules regarding health reform looming on the horizon, we felt the need to bring this technology to the small employer market, as well, says Tom Swayne, president of the Gilston Agency. “We believe companies who integrate benefit and payroll administration realize true cost savings by taking advantage of the efficiencies afforded by this technology. Compliance and reporting responsibilities placed on employers in the future will create an even greater need for employers to outsource this aspect of their business.”

Netchex is available to businesses of any size across the state of South Carolina, regardless of whether they currently do business with the Gilston Agency. Netchex can tackle HR duties, such as administration for benefits, 401(k) and COBRA; tax filing; year-end W2 processing; time and attendance tracking; flexible pay options, as well as tracking employee interactions, such as performance reviews, job history and workers’ compensation management.

For more information about Netchex, please call the Gilston Agency at 843-576-3720.

Gov. Nikki Haley’s spokesman, Rob Godfrey, confirmed that David Black has stepped down as Director of South Carolina’s Department of Insurance after 11 months. Black said in an email sent to employees that he made his decision the previous week and gave no reason for resigning. “Since I have enjoyed this work and your friendship, this was not an easy decision,” Black wrote in his email obtained by The Associated Press. “I know you’re proud of how much has been accomplished on every front in 2011.” Haley said that Black’s experience and customer-friendly attitude made him ideal for this position. The Senate confirmed Black for the job in February.

Planning on hiring in 2012? If so, be sure to keep in mind that the South Carolina legislature has amended the South Carolina “Illegal Aliens and Private Employment” law. This requires that, starting January 1, 2012, all employers must verify the legal status of their new hires through the U.S. Department of Homeland Security’s E-Verify system within three business days of the new employee’s hiring date. Any employer who fails to comply can result in probation or possibly lose their business licenses. The South Carolina Department of Labor, Licensing and Regulation (LLR) will conduct random audits of employers to assure compliance.

As well as completing and maintaining the federal employment eligibility verification form, Form I-9, within three business days of the hire date, all South Carolina employers must keep in mind:

1. To verify the employee’s work authorization through the E-Verify federal work authorization program administered by the U.S. Department of Homeland Security.
2. That employers may no longer confirm a new employee’s employment authorization with a driver’s license or state I.D. card.

It does not cost anything to use the E-Verify internet-based system. To read the South Carolina law and learn more about the E-Verify program, please click here. To enroll in E-Verify, click here.

We would like to take this opportunity to thank all of you for your continued support of our organization.  The last 18 months have been challenging to say the least, but, as an industry, we are just getting started.  We are very optimistic about our future and the direction of our organization. We firmly believe that each of us needs to look at our business models and challenge ourselves to find new and better ways of providing long term solutions to our clients and carriers.  We have many opportunities on the horizon and we look forward to working with you as we venture into unchartered waters.  

As you know, the Gilston Agency dedicates countless resources to ensure the success of our agents and our staff works diligently on your behalf as reflected below with several noteworthy accomplishments so far this year:  

• Integrated our benefit administration support with payroll through Netchex and began “Doing Benefits Different”
• Agency website updated to include a career page and payroll section
• Posted 28 new articles to the Agent Blog
• Posted 13 new articles to the Health Insurance Reform Blog 
• Obtained renewal rate relief for 48 groups
• Emailed 41 Newsflash updates containing carrier information, training seminars, CE opportunities, blog posts, philanthropy involvement, and health underwriters meetings
• Posted frequent updates to our Facebook page
• Created a tab on our Facebook page for careers, payroll, cost saving strategies and insurance
• Launched a company LinkedIn page
• Sponsored Health Underwriters meetings and events
• Supported several philanthropies including: The American Cancer Society’s Hope Lodge, Lowcountry Food Bank and MUSC Children’s Hospital
• Two staff members attended NAHU’s Annual Convention in San Antonio, TX
• Received the NAHU Golden Eagle Award for the 5th consecutive year for a General Agency
• Supported staff in their efforts towards obtaining professional designations

For over 15 years David Gilston Insurance Agency has supported MUSC Children’s Hospital and their Holiday Card Project. This year we thank Kateleen Julio, age 10, of Summerville who is the artist of our card this year. Kateleen is a former patient of MUSC Children’s Hospital.

Each year the MUSC Children’s Hospital Fund teams up with young patients and their siblings, local businesses and individuals to raise money for the MUSC Children’s Hospital in a very unique way called the “Kids Helping Kids” Holiday Card Project.  This is done with the help of inspired patients and young friends of the Children’s Hospital who paint wonderful holiday themed works of art that, thanks to our sponsors, will be proudly displayed on the front of holiday greeting cards.  Last year this exciting project raised $50,000 for research and the programs at the MUSC Children’s Hospital!  Since its inception, the “Kids Helping Kids” Holiday Card Project has raised more than $800,000 for the MUSC Children’s Hospital.

We hope that you too will capture the magic of the holiday season by devoting your time or money to a cause close to your heart.

Have your employer groups complied with this year’s deadline?  Remember that employers are required to mail an annual notice of Creditable Drug Coverage to the home address of all employees by November 15th of each year.  Model language for the notice can be found at www.cms.hhs.gov/creditablecoverage/.  This Medicare Modernization Act (MMA) and other employer requirements can be found in our Health Insurance Reform Blog.

Latisha Stembridge has joined the David M. Gilston Insurance Agency Inc. as account services representative. She will assist with billing issues, processing claims, answering benefit questions and making sure HRA requests are submitted in a timely manner. She previously worked in billing/coding and patient services for LowCountry Medical Associates. Stembridge lives in Hanahan where she actively supports her son in track/field and football at Hanahan High School.

Kitty Jackson has also joined the agency as marketing and administrative assistant. She will assist with advertising, creation and distribution of marketing pieces, philanthropy, company blog, email newsletters and company events. Jackson graduated from the College of Charleston in May 2011 with a bachelor’s degree in communication with a concentration in media studies and public relations. She lives on James Island where she is an avid equestrian and a member of the Kappa Alpha Theta Alumni Association for the Zeta Lambda Chapter.

Founded in 1962 in Charleston, the Gilston Insurance Agency supports insurance brokers and agents in a behind-the-scenes role that gives agents the service, education and assistance they need to provide quality, timely and informed insurance services to their business and individual clients.

About the Gilston Insurance Agency

Founded in 1962, the David M. Gilston Insurance Agency supports insurance brokers and agents across the state of South Carolina through its Columbia and Charleston locations. The agency’s behind-the-scenes role gives agents the service, education and assistance they need to provide quality, timely and informed service to their business and individual clients. For more information, visit www.dgilston.com or call 843-571-1155 in Charleston or 803-772-3122 in Columbia.