SEMA News—September 2012

INDUSTRY NEWS 

Now Underway: SEMA Mustang Build Powered by Women 

	SBN volunteer Theresa Contreres removed underhood components so that the area could be painted black to conform to the project paint scheme.

For this year’s SEMA Show, Ford Motor Co. and SEMA have teamed up on a unique project: the SEMA Mustang Build Powered by Women. Under the direction of the SEMA Businesswomen’s Network (SBN) and built entirely by SBN members, the project is designed to shine the light on women working in the automotive aftermarket and encourage more women to pursue careers in the industry.

Donated by Ford, the vehicle will be auctioned on eBay, with proceeds benefitting the SEMA Memorial Scholarship Fund, thereby helping to foster the industry’s next generation of leaders. The satin-black luxury Mustang concept, designed by Jennifer Seely of Ford and known as High Gear, was adopted after an intense period of Internet voting and an ambitious build schedule was developed.

The first to get their hands on the donated ’13 Mustang GT were SBN members Theresa Contreras and Sara Morosan of L&G Enterprises in San Dimas, California. L&G is an award-winning, family-owned, full-service paint and body shop that has developed a national reputation for custom paint and design. L&G’s work has appeared on over a dozen magazine covers and at many custom car shows, and its team regularly builds customs that end up at the SEMA Show.

Contreras is an experienced car builder and custom painter, and Morosan is L&G’s sales manager. Both grew up working in the L&G body shop and clearly relished the job at hand.

The High Gear Mustang GT came in white from the factory but is slated to receive a custom black-satin exterior finish. The paint is scheduled to be the last job in the build sequence, but because the plan includes adding underhood performance mods, the engine compartment needed to be painted first. That meant that all of the engine accessories bolted to the fenderwells, firewall and framerails had to be removed, along with the entire front clip, before the engine compartment could be painted black.

Contreras and Morosan, working as a team, took on the tedious job of removing everything that might hinder a perfect underhood paint job, which included removing components such as the battery and battery box, air intake and air filter, brake line plumbing, hood release mechanism, CPU, wipers and washer fluid reservoir, driving lights and fog lights and the hood and entire front bumper, plus all of the assorted pieces of insulation and heat shielding, among other things. The hardware was meticulously labeled and stored in plastic bags, and all of the connectors and fasteners were taped off and labeled.

After a few hours of work, the white engine compartment walls and framerails were completely exposed. Factory stickers and labels were removed, then the engine and remaining lines and wiring harness pieces were masked off and all of the white underhood surfaces were sanded and wiped down with tack cloth prior to painting.

At the spray booth, Contreras carefully sprayed the underhood area, paying attention to all the little nooks and crannies that might show up if any white remained visible. When she was satisfied, the paint was allowed to dry, and all of the pieces that had been removed for painting were carefully re-installed, including the factory labels. The end result was an all-black underhood area that looked exactly as if it had come that way from the factory.

Next stop for the High Gear Mustang will be the shop at Source Interlink Media headquarters, where other teams of SBN-member volunteers will add more custom touches, such as quilted suede seats and Rosegold chrome accents throughout the exterior and interior. They will also make modifications to the engine, undercarriage, drivetrain and sound system.

The SBN vehicle build task force is comprised of Task Force Chair Rose Kawasaki (Exports International), Project Vehicle Coordinator Sherry Kollien (Ford Motor Co.), Assembly Coordinator Kellie Colf (Colf Creative Resources), PR/Media Coordinator Camee Edelbrock (Schiefer Media Inc.) and Product Coordinator Susan Carpenter (JR Products). Advisors include Mike Spagnola (Street Scene Equipment), Joel Ayres (Bedslide/Tākit) and Marla Moore (Hypertech).

To learn more about the SEMA Mustang Build, e-mail SEMA Project Manager Bryan Harrison at bryanh@SEMA.org.

SEMA News—September 2012

INDUSTRY NEWS 

Now Underway: SEMA Mustang Build Powered by Women 

	SBN volunteer Theresa Contreres removed underhood components so that the area could be painted black to conform to the project paint scheme.

For this year’s SEMA Show, Ford Motor Co. and SEMA have teamed up on a unique project: the SEMA Mustang Build Powered by Women. Under the direction of the SEMA Businesswomen’s Network (SBN) and built entirely by SBN members, the project is designed to shine the light on women working in the automotive aftermarket and encourage more women to pursue careers in the industry.

Donated by Ford, the vehicle will be auctioned on eBay, with proceeds benefitting the SEMA Memorial Scholarship Fund, thereby helping to foster the industry’s next generation of leaders. The satin-black luxury Mustang concept, designed by Jennifer Seely of Ford and known as High Gear, was adopted after an intense period of Internet voting and an ambitious build schedule was developed.

The first to get their hands on the donated ’13 Mustang GT were SBN members Theresa Contreras and Sara Morosan of L&G Enterprises in San Dimas, California. L&G is an award-winning, family-owned, full-service paint and body shop that has developed a national reputation for custom paint and design. L&G’s work has appeared on over a dozen magazine covers and at many custom car shows, and its team regularly builds customs that end up at the SEMA Show.

Contreras is an experienced car builder and custom painter, and Morosan is L&G’s sales manager. Both grew up working in the L&G body shop and clearly relished the job at hand.

The High Gear Mustang GT came in white from the factory but is slated to receive a custom black-satin exterior finish. The paint is scheduled to be the last job in the build sequence, but because the plan includes adding underhood performance mods, the engine compartment needed to be painted first. That meant that all of the engine accessories bolted to the fenderwells, firewall and framerails had to be removed, along with the entire front clip, before the engine compartment could be painted black.

Contreras and Morosan, working as a team, took on the tedious job of removing everything that might hinder a perfect underhood paint job, which included removing components such as the battery and battery box, air intake and air filter, brake line plumbing, hood release mechanism, CPU, wipers and washer fluid reservoir, driving lights and fog lights and the hood and entire front bumper, plus all of the assorted pieces of insulation and heat shielding, among other things. The hardware was meticulously labeled and stored in plastic bags, and all of the connectors and fasteners were taped off and labeled.

After a few hours of work, the white engine compartment walls and framerails were completely exposed. Factory stickers and labels were removed, then the engine and remaining lines and wiring harness pieces were masked off and all of the white underhood surfaces were sanded and wiped down with tack cloth prior to painting.

At the spray booth, Contreras carefully sprayed the underhood area, paying attention to all the little nooks and crannies that might show up if any white remained visible. When she was satisfied, the paint was allowed to dry, and all of the pieces that had been removed for painting were carefully re-installed, including the factory labels. The end result was an all-black underhood area that looked exactly as if it had come that way from the factory.

Next stop for the High Gear Mustang will be the shop at Source Interlink Media headquarters, where other teams of SBN-member volunteers will add more custom touches, such as quilted suede seats and Rosegold chrome accents throughout the exterior and interior. They will also make modifications to the engine, undercarriage, drivetrain and sound system.

The SBN vehicle build task force is comprised of Task Force Chair Rose Kawasaki (Exports International), Project Vehicle Coordinator Sherry Kollien (Ford Motor Co.), Assembly Coordinator Kellie Colf (Colf Creative Resources), PR/Media Coordinator Camee Edelbrock (Schiefer Media Inc.) and Product Coordinator Susan Carpenter (JR Products). Advisors include Mike Spagnola (Street Scene Equipment), Joel Ayres (Bedslide/Tākit) and Marla Moore (Hypertech).

To learn more about the SEMA Mustang Build, e-mail SEMA Project Manager Bryan Harrison at bryanh@SEMA.org.

SEMA News—September 2012

INDUSTRY NEWS 

Now Underway: SEMA Mustang Build Powered by Women 

	SBN volunteer Theresa Contreres removed underhood components so that the area could be painted black to conform to the project paint scheme.

For this year’s SEMA Show, Ford Motor Co. and SEMA have teamed up on a unique project: the SEMA Mustang Build Powered by Women. Under the direction of the SEMA Businesswomen’s Network (SBN) and built entirely by SBN members, the project is designed to shine the light on women working in the automotive aftermarket and encourage more women to pursue careers in the industry.

Donated by Ford, the vehicle will be auctioned on eBay, with proceeds benefitting the SEMA Memorial Scholarship Fund, thereby helping to foster the industry’s next generation of leaders. The satin-black luxury Mustang concept, designed by Jennifer Seely of Ford and known as High Gear, was adopted after an intense period of Internet voting and an ambitious build schedule was developed.

The first to get their hands on the donated ’13 Mustang GT were SBN members Theresa Contreras and Sara Morosan of L&G Enterprises in San Dimas, California. L&G is an award-winning, family-owned, full-service paint and body shop that has developed a national reputation for custom paint and design. L&G’s work has appeared on over a dozen magazine covers and at many custom car shows, and its team regularly builds customs that end up at the SEMA Show.

Contreras is an experienced car builder and custom painter, and Morosan is L&G’s sales manager. Both grew up working in the L&G body shop and clearly relished the job at hand.

The High Gear Mustang GT came in white from the factory but is slated to receive a custom black-satin exterior finish. The paint is scheduled to be the last job in the build sequence, but because the plan includes adding underhood performance mods, the engine compartment needed to be painted first. That meant that all of the engine accessories bolted to the fenderwells, firewall and framerails had to be removed, along with the entire front clip, before the engine compartment could be painted black.

Contreras and Morosan, working as a team, took on the tedious job of removing everything that might hinder a perfect underhood paint job, which included removing components such as the battery and battery box, air intake and air filter, brake line plumbing, hood release mechanism, CPU, wipers and washer fluid reservoir, driving lights and fog lights and the hood and entire front bumper, plus all of the assorted pieces of insulation and heat shielding, among other things. The hardware was meticulously labeled and stored in plastic bags, and all of the connectors and fasteners were taped off and labeled.

After a few hours of work, the white engine compartment walls and framerails were completely exposed. Factory stickers and labels were removed, then the engine and remaining lines and wiring harness pieces were masked off and all of the white underhood surfaces were sanded and wiped down with tack cloth prior to painting.

At the spray booth, Contreras carefully sprayed the underhood area, paying attention to all the little nooks and crannies that might show up if any white remained visible. When she was satisfied, the paint was allowed to dry, and all of the pieces that had been removed for painting were carefully re-installed, including the factory labels. The end result was an all-black underhood area that looked exactly as if it had come that way from the factory.

Next stop for the High Gear Mustang will be the shop at Source Interlink Media headquarters, where other teams of SBN-member volunteers will add more custom touches, such as quilted suede seats and Rosegold chrome accents throughout the exterior and interior. They will also make modifications to the engine, undercarriage, drivetrain and sound system.

The SBN vehicle build task force is comprised of Task Force Chair Rose Kawasaki (Exports International), Project Vehicle Coordinator Sherry Kollien (Ford Motor Co.), Assembly Coordinator Kellie Colf (Colf Creative Resources), PR/Media Coordinator Camee Edelbrock (Schiefer Media Inc.) and Product Coordinator Susan Carpenter (JR Products). Advisors include Mike Spagnola (Street Scene Equipment), Joel Ayres (Bedslide/Tākit) and Marla Moore (Hypertech).

To learn more about the SEMA Mustang Build, e-mail SEMA Project Manager Bryan Harrison at bryanh@SEMA.org.

SEMA News—September 2012 

FROM THE HILL
By Dan Sadowski

Sorting Out Health Care Options

Supreme Court Upholds Affordable Care Act; Employers Face Important Decisions

After months of speculation and uncertainty, the U.S. Supreme Court ruled that the Patient Protection and Affordable Care Act (ACA) was constitutional, including the mandate that requires individuals to obtain minimum coverage by 2012 or face a penalty tax. The Court’s decision now sets in motion full implementation of the law. This article focuses on upcoming decisions to be considered by SEMA-member companies.

Employer Mandate

The law treats employers differently based on size. For small companies (fewer than 50 employees) there is no mandate to provide coverage. For larger companies (50 or more full-time equivalent workers), employers are essentially required to provide coverage, since they will face a penalty as soon as any full-time employee files for a government subsidy to help secure individual coverage. While the compliance requirements do not begin until 2014, business owners should begin preparing for the future.

If the penalty is triggered, the government will impose a fee of $2,000 for each full-time employee (30 or more hours per week), excluding the first 30 employees. Therefore, a company with 51 employees would be assessed a fine of $42,000 annually for non-compliance with the ACA.

Of course, there are no penalties if the company provides coverage. Rather, a primary concern is whether insurance will be affordable and whether there is an incentive to stop providing insurance and simply pay the penalty. In the coming years, we will see if there is a trend away from employer-based insurance or whether most companies will continue to offer health insurance as a benefit to retain
their workforces.

Exchanges

In terms of managing costs, the law establishes SEMA-supported “Health Benefit Exchanges,” through which small businesses and individuals will be able to compare all of the available health plans in their state. Consumers will be provided with a standardized method for comparing policies (covered benefits, deductibles, premium costs, etc.) posted on a website.

	In terms of managing costs, the law establishes SEMA-supported “Health Benefit Exchanges,” through which small businesses and individuals will be able to compare all of the available health plans in their state.

The plans will be divided into four types based on the level of benefits: bronze, silver, gold and platinum. The premiums will be different depending on the amount of coverage included per plan and geographic location. However, insurers will be prohibited from raising premiums based on gender or health condition.

States are required to establish these exchanges by 2014, and many have already begun organizing the framework for their programs. The states may also work collectively to establish regional plans, and the federal government will establish a plan when a state fails to do so. The federal government will also offer at least two multi-state plans in each state exchange. The federal government has already started a website (www.healthcare.gov) that is gradually being expanded with new information.

Initially, exchanges will be available to employers with 100 or fewer workers and individuals purchasing their coverage who do not have access to employer coverage. In 2017, states will have the option of allowing larger companies to participate.

Most states plan to include an option for businesses and individuals to enroll in an exchange-based coverage plan through a certified, licensed independent agent or broker. With the option to comparison shop, the exchanges should increase competition in an open market of private insurance plans. A larger pool of potential consumers should also help control prices.

Tax Credits for Very Small Companies

The law provides a tax credit designed to encourage smaller companies (25 full-time workers or fewer) to maintain health insurance coverage or offer it for the first time. The credit varies according to size, wages and the amount of employer contribution for the premium (minimum 50% contribution). The maximum credit is 35% of premiums paid in 2010–2013. In 2014, this maximum credit increases to 50% for no more than two consecutive taxable years.

The tax credit is targeted to help small businesses that primarily employ low- and moderate-income workers (averaging less than $50,000 per employee per year). A company may be eligible for the tax credit even if it employs more than 25 individual workers, since the formula is based on the number of fulltime workers. The employer cannot claim the credit on its income tax return until the end of the tax year.

For workers seeking coverage through individual plans, the law offers tax credits and cost-sharing subsidies based on income.

Summary

While the law includes provisions designed to spur competition and expand health care coverage, it has not yet tackled the soaring health care costs faced by SEMA-member companies. SEMA remains committed to working with lawmakers and the business community to pursue meaningful reforms.

For more information, please contact SEMA Director of Congressional Affairs Dan Sadowski at dans@SEMA.org.

SEMA News—September 2012 

FROM THE HILL
By Dan Sadowski

Sorting Out Health Care Options

Supreme Court Upholds Affordable Care Act; Employers Face Important Decisions

After months of speculation and uncertainty, the U.S. Supreme Court ruled that the Patient Protection and Affordable Care Act (ACA) was constitutional, including the mandate that requires individuals to obtain minimum coverage by 2012 or face a penalty tax. The Court’s decision now sets in motion full implementation of the law. This article focuses on upcoming decisions to be considered by SEMA-member companies.

Employer Mandate

The law treats employers differently based on size. For small companies (fewer than 50 employees) there is no mandate to provide coverage. For larger companies (50 or more full-time equivalent workers), employers are essentially required to provide coverage, since they will face a penalty as soon as any full-time employee files for a government subsidy to help secure individual coverage. While the compliance requirements do not begin until 2014, business owners should begin preparing for the future.

If the penalty is triggered, the government will impose a fee of $2,000 for each full-time employee (30 or more hours per week), excluding the first 30 employees. Therefore, a company with 51 employees would be assessed a fine of $42,000 annually for non-compliance with the ACA.

Of course, there are no penalties if the company provides coverage. Rather, a primary concern is whether insurance will be affordable and whether there is an incentive to stop providing insurance and simply pay the penalty. In the coming years, we will see if there is a trend away from employer-based insurance or whether most companies will continue to offer health insurance as a benefit to retain
their workforces.

Exchanges

In terms of managing costs, the law establishes SEMA-supported “Health Benefit Exchanges,” through which small businesses and individuals will be able to compare all of the available health plans in their state. Consumers will be provided with a standardized method for comparing policies (covered benefits, deductibles, premium costs, etc.) posted on a website.

	In terms of managing costs, the law establishes SEMA-supported “Health Benefit Exchanges,” through which small businesses and individuals will be able to compare all of the available health plans in their state.

The plans will be divided into four types based on the level of benefits: bronze, silver, gold and platinum. The premiums will be different depending on the amount of coverage included per plan and geographic location. However, insurers will be prohibited from raising premiums based on gender or health condition.

States are required to establish these exchanges by 2014, and many have already begun organizing the framework for their programs. The states may also work collectively to establish regional plans, and the federal government will establish a plan when a state fails to do so. The federal government will also offer at least two multi-state plans in each state exchange. The federal government has already started a website (www.healthcare.gov) that is gradually being expanded with new information.

Initially, exchanges will be available to employers with 100 or fewer workers and individuals purchasing their coverage who do not have access to employer coverage. In 2017, states will have the option of allowing larger companies to participate.

Most states plan to include an option for businesses and individuals to enroll in an exchange-based coverage plan through a certified, licensed independent agent or broker. With the option to comparison shop, the exchanges should increase competition in an open market of private insurance plans. A larger pool of potential consumers should also help control prices.

Tax Credits for Very Small Companies

The law provides a tax credit designed to encourage smaller companies (25 full-time workers or fewer) to maintain health insurance coverage or offer it for the first time. The credit varies according to size, wages and the amount of employer contribution for the premium (minimum 50% contribution). The maximum credit is 35% of premiums paid in 2010–2013. In 2014, this maximum credit increases to 50% for no more than two consecutive taxable years.

The tax credit is targeted to help small businesses that primarily employ low- and moderate-income workers (averaging less than $50,000 per employee per year). A company may be eligible for the tax credit even if it employs more than 25 individual workers, since the formula is based on the number of fulltime workers. The employer cannot claim the credit on its income tax return until the end of the tax year.

For workers seeking coverage through individual plans, the law offers tax credits and cost-sharing subsidies based on income.

Summary

While the law includes provisions designed to spur competition and expand health care coverage, it has not yet tackled the soaring health care costs faced by SEMA-member companies. SEMA remains committed to working with lawmakers and the business community to pursue meaningful reforms.

For more information, please contact SEMA Director of Congressional Affairs Dan Sadowski at dans@SEMA.org.

SEMA News—September 2012 

FROM THE HILL
By Dan Sadowski

Sorting Out Health Care Options

Supreme Court Upholds Affordable Care Act; Employers Face Important Decisions

After months of speculation and uncertainty, the U.S. Supreme Court ruled that the Patient Protection and Affordable Care Act (ACA) was constitutional, including the mandate that requires individuals to obtain minimum coverage by 2012 or face a penalty tax. The Court’s decision now sets in motion full implementation of the law. This article focuses on upcoming decisions to be considered by SEMA-member companies.

Employer Mandate

The law treats employers differently based on size. For small companies (fewer than 50 employees) there is no mandate to provide coverage. For larger companies (50 or more full-time equivalent workers), employers are essentially required to provide coverage, since they will face a penalty as soon as any full-time employee files for a government subsidy to help secure individual coverage. While the compliance requirements do not begin until 2014, business owners should begin preparing for the future.

If the penalty is triggered, the government will impose a fee of $2,000 for each full-time employee (30 or more hours per week), excluding the first 30 employees. Therefore, a company with 51 employees would be assessed a fine of $42,000 annually for non-compliance with the ACA.

Of course, there are no penalties if the company provides coverage. Rather, a primary concern is whether insurance will be affordable and whether there is an incentive to stop providing insurance and simply pay the penalty. In the coming years, we will see if there is a trend away from employer-based insurance or whether most companies will continue to offer health insurance as a benefit to retain
their workforces.

Exchanges

In terms of managing costs, the law establishes SEMA-supported “Health Benefit Exchanges,” through which small businesses and individuals will be able to compare all of the available health plans in their state. Consumers will be provided with a standardized method for comparing policies (covered benefits, deductibles, premium costs, etc.) posted on a website.

	In terms of managing costs, the law establishes SEMA-supported “Health Benefit Exchanges,” through which small businesses and individuals will be able to compare all of the available health plans in their state.

The plans will be divided into four types based on the level of benefits: bronze, silver, gold and platinum. The premiums will be different depending on the amount of coverage included per plan and geographic location. However, insurers will be prohibited from raising premiums based on gender or health condition.

States are required to establish these exchanges by 2014, and many have already begun organizing the framework for their programs. The states may also work collectively to establish regional plans, and the federal government will establish a plan when a state fails to do so. The federal government will also offer at least two multi-state plans in each state exchange. The federal government has already started a website (www.healthcare.gov) that is gradually being expanded with new information.

Initially, exchanges will be available to employers with 100 or fewer workers and individuals purchasing their coverage who do not have access to employer coverage. In 2017, states will have the option of allowing larger companies to participate.

Most states plan to include an option for businesses and individuals to enroll in an exchange-based coverage plan through a certified, licensed independent agent or broker. With the option to comparison shop, the exchanges should increase competition in an open market of private insurance plans. A larger pool of potential consumers should also help control prices.

Tax Credits for Very Small Companies

The law provides a tax credit designed to encourage smaller companies (25 full-time workers or fewer) to maintain health insurance coverage or offer it for the first time. The credit varies according to size, wages and the amount of employer contribution for the premium (minimum 50% contribution). The maximum credit is 35% of premiums paid in 2010–2013. In 2014, this maximum credit increases to 50% for no more than two consecutive taxable years.

The tax credit is targeted to help small businesses that primarily employ low- and moderate-income workers (averaging less than $50,000 per employee per year). A company may be eligible for the tax credit even if it employs more than 25 individual workers, since the formula is based on the number of fulltime workers. The employer cannot claim the credit on its income tax return until the end of the tax year.

For workers seeking coverage through individual plans, the law offers tax credits and cost-sharing subsidies based on income.

Summary

While the law includes provisions designed to spur competition and expand health care coverage, it has not yet tackled the soaring health care costs faced by SEMA-member companies. SEMA remains committed to working with lawmakers and the business community to pursue meaningful reforms.

For more information, please contact SEMA Director of Congressional Affairs Dan Sadowski at dans@SEMA.org.

SEMA News—September 2012 

FROM THE HILL
By Dan Sadowski

Sorting Out Health Care Options

Supreme Court Upholds Affordable Care Act; Employers Face Important Decisions

After months of speculation and uncertainty, the U.S. Supreme Court ruled that the Patient Protection and Affordable Care Act (ACA) was constitutional, including the mandate that requires individuals to obtain minimum coverage by 2012 or face a penalty tax. The Court’s decision now sets in motion full implementation of the law. This article focuses on upcoming decisions to be considered by SEMA-member companies.

Employer Mandate

The law treats employers differently based on size. For small companies (fewer than 50 employees) there is no mandate to provide coverage. For larger companies (50 or more full-time equivalent workers), employers are essentially required to provide coverage, since they will face a penalty as soon as any full-time employee files for a government subsidy to help secure individual coverage. While the compliance requirements do not begin until 2014, business owners should begin preparing for the future.

If the penalty is triggered, the government will impose a fee of $2,000 for each full-time employee (30 or more hours per week), excluding the first 30 employees. Therefore, a company with 51 employees would be assessed a fine of $42,000 annually for non-compliance with the ACA.

Of course, there are no penalties if the company provides coverage. Rather, a primary concern is whether insurance will be affordable and whether there is an incentive to stop providing insurance and simply pay the penalty. In the coming years, we will see if there is a trend away from employer-based insurance or whether most companies will continue to offer health insurance as a benefit to retain
their workforces.

Exchanges

In terms of managing costs, the law establishes SEMA-supported “Health Benefit Exchanges,” through which small businesses and individuals will be able to compare all of the available health plans in their state. Consumers will be provided with a standardized method for comparing policies (covered benefits, deductibles, premium costs, etc.) posted on a website.

	In terms of managing costs, the law establishes SEMA-supported “Health Benefit Exchanges,” through which small businesses and individuals will be able to compare all of the available health plans in their state.

The plans will be divided into four types based on the level of benefits: bronze, silver, gold and platinum. The premiums will be different depending on the amount of coverage included per plan and geographic location. However, insurers will be prohibited from raising premiums based on gender or health condition.

States are required to establish these exchanges by 2014, and many have already begun organizing the framework for their programs. The states may also work collectively to establish regional plans, and the federal government will establish a plan when a state fails to do so. The federal government will also offer at least two multi-state plans in each state exchange. The federal government has already started a website (www.healthcare.gov) that is gradually being expanded with new information.

Initially, exchanges will be available to employers with 100 or fewer workers and individuals purchasing their coverage who do not have access to employer coverage. In 2017, states will have the option of allowing larger companies to participate.

Most states plan to include an option for businesses and individuals to enroll in an exchange-based coverage plan through a certified, licensed independent agent or broker. With the option to comparison shop, the exchanges should increase competition in an open market of private insurance plans. A larger pool of potential consumers should also help control prices.

Tax Credits for Very Small Companies

The law provides a tax credit designed to encourage smaller companies (25 full-time workers or fewer) to maintain health insurance coverage or offer it for the first time. The credit varies according to size, wages and the amount of employer contribution for the premium (minimum 50% contribution). The maximum credit is 35% of premiums paid in 2010–2013. In 2014, this maximum credit increases to 50% for no more than two consecutive taxable years.

The tax credit is targeted to help small businesses that primarily employ low- and moderate-income workers (averaging less than $50,000 per employee per year). A company may be eligible for the tax credit even if it employs more than 25 individual workers, since the formula is based on the number of fulltime workers. The employer cannot claim the credit on its income tax return until the end of the tax year.

For workers seeking coverage through individual plans, the law offers tax credits and cost-sharing subsidies based on income.

Summary

While the law includes provisions designed to spur competition and expand health care coverage, it has not yet tackled the soaring health care costs faced by SEMA-member companies. SEMA remains committed to working with lawmakers and the business community to pursue meaningful reforms.

For more information, please contact SEMA Director of Congressional Affairs Dan Sadowski at dans@SEMA.org.

SEMA News—September 2012 

FROM THE HILL
By Dan Sadowski

Sorting Out Health Care Options

Supreme Court Upholds Affordable Care Act; Employers Face Important Decisions

After months of speculation and uncertainty, the U.S. Supreme Court ruled that the Patient Protection and Affordable Care Act (ACA) was constitutional, including the mandate that requires individuals to obtain minimum coverage by 2012 or face a penalty tax. The Court’s decision now sets in motion full implementation of the law. This article focuses on upcoming decisions to be considered by SEMA-member companies.

Employer Mandate

The law treats employers differently based on size. For small companies (fewer than 50 employees) there is no mandate to provide coverage. For larger companies (50 or more full-time equivalent workers), employers are essentially required to provide coverage, since they will face a penalty as soon as any full-time employee files for a government subsidy to help secure individual coverage. While the compliance requirements do not begin until 2014, business owners should begin preparing for the future.

If the penalty is triggered, the government will impose a fee of $2,000 for each full-time employee (30 or more hours per week), excluding the first 30 employees. Therefore, a company with 51 employees would be assessed a fine of $42,000 annually for non-compliance with the ACA.

Of course, there are no penalties if the company provides coverage. Rather, a primary concern is whether insurance will be affordable and whether there is an incentive to stop providing insurance and simply pay the penalty. In the coming years, we will see if there is a trend away from employer-based insurance or whether most companies will continue to offer health insurance as a benefit to retain
their workforces.

Exchanges

In terms of managing costs, the law establishes SEMA-supported “Health Benefit Exchanges,” through which small businesses and individuals will be able to compare all of the available health plans in their state. Consumers will be provided with a standardized method for comparing policies (covered benefits, deductibles, premium costs, etc.) posted on a website.

	In terms of managing costs, the law establishes SEMA-supported “Health Benefit Exchanges,” through which small businesses and individuals will be able to compare all of the available health plans in their state.

The plans will be divided into four types based on the level of benefits: bronze, silver, gold and platinum. The premiums will be different depending on the amount of coverage included per plan and geographic location. However, insurers will be prohibited from raising premiums based on gender or health condition.

States are required to establish these exchanges by 2014, and many have already begun organizing the framework for their programs. The states may also work collectively to establish regional plans, and the federal government will establish a plan when a state fails to do so. The federal government will also offer at least two multi-state plans in each state exchange. The federal government has already started a website (www.healthcare.gov) that is gradually being expanded with new information.

Initially, exchanges will be available to employers with 100 or fewer workers and individuals purchasing their coverage who do not have access to employer coverage. In 2017, states will have the option of allowing larger companies to participate.

Most states plan to include an option for businesses and individuals to enroll in an exchange-based coverage plan through a certified, licensed independent agent or broker. With the option to comparison shop, the exchanges should increase competition in an open market of private insurance plans. A larger pool of potential consumers should also help control prices.

Tax Credits for Very Small Companies

The law provides a tax credit designed to encourage smaller companies (25 full-time workers or fewer) to maintain health insurance coverage or offer it for the first time. The credit varies according to size, wages and the amount of employer contribution for the premium (minimum 50% contribution). The maximum credit is 35% of premiums paid in 2010–2013. In 2014, this maximum credit increases to 50% for no more than two consecutive taxable years.

The tax credit is targeted to help small businesses that primarily employ low- and moderate-income workers (averaging less than $50,000 per employee per year). A company may be eligible for the tax credit even if it employs more than 25 individual workers, since the formula is based on the number of fulltime workers. The employer cannot claim the credit on its income tax return until the end of the tax year.

For workers seeking coverage through individual plans, the law offers tax credits and cost-sharing subsidies based on income.

Summary

While the law includes provisions designed to spur competition and expand health care coverage, it has not yet tackled the soaring health care costs faced by SEMA-member companies. SEMA remains committed to working with lawmakers and the business community to pursue meaningful reforms.

For more information, please contact SEMA Director of Congressional Affairs Dan Sadowski at dans@SEMA.org.

SEMA News—September 2012 

FROM THE HILL
By Dan Sadowski

Sorting Out Health Care Options

Supreme Court Upholds Affordable Care Act; Employers Face Important Decisions

After months of speculation and uncertainty, the U.S. Supreme Court ruled that the Patient Protection and Affordable Care Act (ACA) was constitutional, including the mandate that requires individuals to obtain minimum coverage by 2012 or face a penalty tax. The Court’s decision now sets in motion full implementation of the law. This article focuses on upcoming decisions to be considered by SEMA-member companies.

Employer Mandate

The law treats employers differently based on size. For small companies (fewer than 50 employees) there is no mandate to provide coverage. For larger companies (50 or more full-time equivalent workers), employers are essentially required to provide coverage, since they will face a penalty as soon as any full-time employee files for a government subsidy to help secure individual coverage. While the compliance requirements do not begin until 2014, business owners should begin preparing for the future.

If the penalty is triggered, the government will impose a fee of $2,000 for each full-time employee (30 or more hours per week), excluding the first 30 employees. Therefore, a company with 51 employees would be assessed a fine of $42,000 annually for non-compliance with the ACA.

Of course, there are no penalties if the company provides coverage. Rather, a primary concern is whether insurance will be affordable and whether there is an incentive to stop providing insurance and simply pay the penalty. In the coming years, we will see if there is a trend away from employer-based insurance or whether most companies will continue to offer health insurance as a benefit to retain
their workforces.

Exchanges

In terms of managing costs, the law establishes SEMA-supported “Health Benefit Exchanges,” through which small businesses and individuals will be able to compare all of the available health plans in their state. Consumers will be provided with a standardized method for comparing policies (covered benefits, deductibles, premium costs, etc.) posted on a website.

	In terms of managing costs, the law establishes SEMA-supported “Health Benefit Exchanges,” through which small businesses and individuals will be able to compare all of the available health plans in their state.

The plans will be divided into four types based on the level of benefits: bronze, silver, gold and platinum. The premiums will be different depending on the amount of coverage included per plan and geographic location. However, insurers will be prohibited from raising premiums based on gender or health condition.

States are required to establish these exchanges by 2014, and many have already begun organizing the framework for their programs. The states may also work collectively to establish regional plans, and the federal government will establish a plan when a state fails to do so. The federal government will also offer at least two multi-state plans in each state exchange. The federal government has already started a website (www.healthcare.gov) that is gradually being expanded with new information.

Initially, exchanges will be available to employers with 100 or fewer workers and individuals purchasing their coverage who do not have access to employer coverage. In 2017, states will have the option of allowing larger companies to participate.

Most states plan to include an option for businesses and individuals to enroll in an exchange-based coverage plan through a certified, licensed independent agent or broker. With the option to comparison shop, the exchanges should increase competition in an open market of private insurance plans. A larger pool of potential consumers should also help control prices.

Tax Credits for Very Small Companies

The law provides a tax credit designed to encourage smaller companies (25 full-time workers or fewer) to maintain health insurance coverage or offer it for the first time. The credit varies according to size, wages and the amount of employer contribution for the premium (minimum 50% contribution). The maximum credit is 35% of premiums paid in 2010–2013. In 2014, this maximum credit increases to 50% for no more than two consecutive taxable years.

The tax credit is targeted to help small businesses that primarily employ low- and moderate-income workers (averaging less than $50,000 per employee per year). A company may be eligible for the tax credit even if it employs more than 25 individual workers, since the formula is based on the number of fulltime workers. The employer cannot claim the credit on its income tax return until the end of the tax year.

For workers seeking coverage through individual plans, the law offers tax credits and cost-sharing subsidies based on income.

Summary

While the law includes provisions designed to spur competition and expand health care coverage, it has not yet tackled the soaring health care costs faced by SEMA-member companies. SEMA remains committed to working with lawmakers and the business community to pursue meaningful reforms.

For more information, please contact SEMA Director of Congressional Affairs Dan Sadowski at dans@SEMA.org.

 

 

SEMA News—September 2012

REQUIRED READING

Trade Publications Connect Dealers to SEMA Industry

Businesses are constantly looking for new markets and ways to expand. While the SEMA Show is best known for the thousands of new products that debut there, savvy industry professionals also use the Show to discover new trends and new markets.

Dealers are finding this to be particularly true. In fact, many trade publications are reporting on the potential profit available to dealers who operate accessory programs. The following are a few publications that have reported on the opportunity and how dealers can capitalize
on it.

Automotive News Lindsay Chappell shared information with Automotive News readers about the “$30 billion customizing business [that] is up for grabs.” The July 2, 2012, article explained that, while not all dealers are convinced that accessory programs are beneficial to dealers, there are dealers that have proven that such programs can be profitable. As the article stated: “Some [dealers] are striking gold in the customizing market.”

Fixed Ops Pick up just about any issue of Fixed Ops magazine, and you’ll find at least one article talking about the potential that an accessory program offers to dealers. Some articles highlight the potential profit; others focus on best practices for establishing a program. Either way, it’s difficult to read this magazine and not be convinced that an accessory program can result in huge profits.

Restyling The company profiles in Restyling often highlight a person who started a small business and eventually grew it into one of the leading companies in the market. What’s great about this feature was that readers were able to leave with specific ideas about what they can do to become successful as well. The July 2012 feature on Midwest Muscle discussed how the company used the SEMA Show to connect with the industry. The company owners credited the 2004 Show for helping them to identify a new trend that grew their business. Since then, they continue to use the Show to learn about new trends and network with others.

Trucking Times In the May/June issue of Trucking Times, Ellen McKoy’s coverage of the 2012 National Automobile Dealers Association (NADA) Convention and Expo noted that more exhibitors are seeking to educate dealers about their products as new-vehicle sales climb. The article explained that events, such as the NADA convention and the SEMA Show, are great for connecting with dealers. One restyler is quoted in the story saying, “I try to partner with one of my key vendors, the same way I do when I go to the SEMA Show…. When I go to their dealerships, I may not see them on a regular basis.”