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Law

Prepare for Compliance

By David A. Parke, Esq.

 

The new reporting rules that became effective Jan. 1, 2024, under the federal Corporate Transparency Act (CTA) now require many small businesses and other entities to file reports with the U.S. Financial Crimes Enforcement Network (FinCEN). FinCEN estimates there are more than 30 million entities that are subject to these reporting rules on their effective date.

The CTA is intended to provide law enforcement with a means to combat crimes, like money laundering, that are aided through the use of shell companies. The CTA applies to ‘domestic reporting companies’ and ‘foreign reporting companies,’ as defined in the rules. This article will focus on domestic reporting companies.

Under the CTA, a reporting company, subject to the CTA, must file information with FinCEN regarding itself and its beneficial owners. For a reporting company formed on or after Jan. 1, 2024, the company must also report information regarding the individuals who created the company. Any changes to previously reported information must also be reported in a timely manner to FinCEN. The rules specify the information that must be reported about a reporting company and its beneficial owners and company applicants.

David A. Parke

David Parke

“The CTA is intended to provide law enforcement with a means to combat crimes, like money laundering, that are aided through the use of shell companies.”

A domestic reporting company under the CTA is any corporation, limited-liability company, or other entity created by filing a document with the secretary of State or a similar office under the law of a state or Indian tribe, unless exempt. There are 23 categories of entities that are exempt from reporting. The exemptions include highly regulated entities like issuers of securities registered under Section 12 of the Securities Exchange Act of 1934, banks, insurance companies, regulated public utilities, and certain tax-exempt organizations. Many small entities are likely not covered by an exemption and will need to report. The rules define more specifically the conditions of each exemption.

One exemption is for a ‘large operating company,’ as defined in the rules. This is a company that employs more than 20 full-time employees in the U.S., has an operating presence at a physical office within the U.S., and has more than $5 million in annual gross receipts or sales, excluding gross receipts or sales from sources outside the U.S., according to the company’s federal income-tax return for the previous year.

A ‘beneficial owner,’ whose information must be reported to FinCEN, is any individual who exercises substantial control over the reporting company or who owns or controls, directly or indirectly, at least 25% of the ownership interests of the reporting company. The reporting rules address various types of direct or indirect control or ownership arrangements under which an individual would be a beneficial owner.

An individual would be included as a beneficial owner if that individual is a ‘senior officer,’ which includes the president, chief financial officer, general counsel, chief executive officer, chief operating officer, or any other officer who performs a similar function. The rules also include as a beneficial owner any individual who has authority over the appointment or removal of any senior officer or a majority of the board of directors or similar body, or has substantial influence over important decisions, including decisions of the type enumerated in the rules.

A ‘company applicant,’ whose information must be included for a domestic reporting company created on or after Jan. 1, 2024, is an individual who files the document that creates the company, and the individual who is primarily responsible for directing or controlling the filing where more than one individual is involved.

Any domestic reporting company created before Jan. 1, 2024, must file its initial report with FinCEN by Jan. 1, 2025. Any domestic reporting company created during 2024 must file within 90 days. Any domestic reporting company formed on or after Jan. 1, 2025 must file within 30 days. The deadlines are measured from the earlier of actual or public notice that creation is effective. If there is a change in any information previously reported to FinCEN regarding a reporting company or its beneficial owners, an updated report must be filed with FinCEN within 30 days.

FinCEN has an E-filing website for reporting information (boiefiling.fincen.gov), and charges no filing fee. FinCEN has also published a Small Entity Compliance Guide and Frequently Asked Questions to provide guidance regarding the CTA reporting rules. FinCEN allows for use of a FinCEN identifier, which is a unique number assigned by FinCEN to an individual who applies for such a number and submits the information required of a beneficial owner or company applicant. The reporting company’s report may include the FinCEN identifier in lieu of the information otherwise required for the individual.

The consequences of non-compliance can be significant. It is unlawful under the CTA for any person to willfully provide or attempt to provide false or fraudulent beneficial ownership information to FinCEN, or to willfully fail to report complete or updated beneficial ownership information to FinCEN. Under the CTA, violators are liable for a civil penalty of not more than $500 for each day the violation continues, and may be fined not more than $10,000, imprisoned for not more than two years, or both.

An entity that is or may become a reporting company should consider establishing an internal compliance program to identify reportable changes and assure that the necessary information is received in a timely manner. A company should also consider if any changes should be made to its governance documents to require beneficial owners to provide (again, in a timely way) the information needed for the reporting company to comply with its CTA reporting obligations.

These new reporting requirements will affect many entities. It is important for companies to inform themselves of the CTA’s requirements, determine if the CTA applies, and prepare for compliance.

 

David A. Parke is a partner in the Business/Finance department at Bulkley Richardson.

Law

Unmarried Parents Are Still Parents

By Julie A. Dialessi-Lafley, Esq.

 

More and more frequently, people are opting not to get married, but are still desirous of having children and becoming parents, whether or not they are in a committed relationship with their partner. The decision to have a child or children creates a permanent connection to the other parent, regardless of the marital status of the parents.

Unmarried parents have various types of relationships. We see unmarried parents that live together, some have separate households but spend time together, and many are not together any longer and may have new relationships. The unmarried parents need to navigate how to bring up their child together while being apart. This requires that both parents understand that the other parent has a right to be in the life of the child. The law supports the idea that fathers and mothers both have the right to parent their children, even if unmarried.

Emotions of the parties often cloud their judgment when considering the role of the other parent in the life of the child. Did the parties break up? Has one person (or both) moved on? Was the relationship short-term without commitment and lacking a foundation between the parents? The history of the relationship is certainly impactful on the parent; however, first and foremost, parents need to be reminded that fathers need to be responsible, present, and cooperative with the mothers of their children, and mothers need to encourage, support, and accept the relationship a child has with their father.

 

The Child’s Best Interest

The standard in the Commonwealth of Massachusetts to determine a parenting plan and custodial relationship with children and parents starts with a best-interest standard. The presumption is that both parents should play a role in the life of a child unless it is not in the child’s best interest. It is often difficult for a parent to separate their feelings about the other parent when trying to determine the parenting relationship. It is clear, however, that simply because someone is not a good partner does not mean they should not be in the life of their child.

Julie A. Dialessi-Lafley

Julie A. Dialessi-Lafley

“First and foremost, parents need to be reminded that fathers need to be responsible, present, and cooperative with the mothers of their children, and mothers need to encourage, support, and accept the relationship a child has with their father.”

When parents are not married, the law provides that, absent an agreement or court order otherwise, the mother has sole legal and physical custody of the child. This is rebuttable and is not intended to prevent fathers from having equal footing in the lives of their children.

More times than not, with good communication, the parents can develop a parenting plan that provides for both parents to be involved in the legal decision making for the major medical, educational, and religious decisions of the child. This is what is known as legal custody. Parents can agree to share legal custody and make these major decisions together.

If they are unable to agree, a court may order shared legal custody if a history of the parents being able to work together to make these decisions can be demonstrated. Even if the court does not order shared legal custody, both parents still have the right by statute to have access to the medical and educational information and records of the child. It does not mean that a parent is excluded from knowing these things about their child.

There are always exceptions that need to be considered, such as domestic violence or history of restraining orders, which impact the ability of the court to grant certain relief if the parents are unable to agree.

It is worth reiterating that, if the parents are able to put their feelings about the relationship with the other parent aside and focus on the child, they can in most circumstances — if certainly not every one — develop a parenting relationship where both parents can be involved in the child’s life.

Parenting plans that deal with the actual parenting time the parties spend with the child should include the normal parenting plan, a holiday schedule, and vacation schedule, so that there is a clear plan for each parent’s time with the child. The location of pick-up and drop-off of the child, the specific time for exchange of the child, and who may transport the child are critically important in developing the parenting plan. Being clear and specific with these terms may create a plan that will reduce conflict between the parties when they may not both have the same philosophy about co-parenting with the other parent.

Parenting plans should also deal with child support, health insurance, uninsured medical expenses, extracurricular activities and payment of those expenses, education of the child, and the primary residence of the child, at a minimum.

The parenting plan also can include terms around communication. Communication is key, and throughout the child’s life, there are going to be countless times when the parents will need to discuss or exchange information with the other parent, make a decision together, or attend parent-teacher conferences, activities, or countless different life events.

A method of communication can be defined, such as through text, a parenting application which tracks communication, or through parent meetings on a scheduled basis. Regardless of the method, it is often key to successful co-parenting for there to be set rules as to where, when, and what the parents talk about.

By agreement, parents can include terms around phone calls or video calls with the child, as well as any other contact they want to have in between their parenting time. Language that fosters a positive and supportive parenting relationship between the child and the other parent can be included by agreement of the parents to prevent disparaging, disrespectful discussions.

 

The Court as a Last Resort

If the parents are unable to agree on how to develop a parenting plan, the court ultimately has the jurisdiction to make the decision. The court will do its job, but most every judge will encourage the parents to come to an agreement if they are able to do so, as they know their child better than anyone.

If the court is ultimately the decision maker, the court will consider the age and developmental stage of the child, the individual needs of the child, the history of the relationship between the parents, how close the parents live to each other, the parents’ work schedule, and problems such as substance abuse, domestic violence, child abuse, or a criminal record.

Naturally, this is not the exhaustive list, and the topics of this article are general. When navigating these issues, you should seek advice of an attorney in order to understand all the issues that need to be addressed and understand your rights as a parent.

 

Julie A. Dialessi-Lafley is a shareholder with the law firm Bacon Wilson, P.C. and chairs the firm’s Family Law department. She is a certified family law mediator, a member of the Springfield Women’s Leadership Council, a member of the United Way of Pioneer Valley board of directors, and is licensed to practice law in both Massachusetts and Connecticut; (413) 781-0560; [email protected]

 

Law

Walking a Fine Line

By Trevor Brice, Esq.

 

As Massachusetts employers know, one of the best defenses to a discrimination or retaliation suit is to implement preventive measures. One of the most commonplace of these preventive measures is anti-harassment training courses for the workforce that can show the employer is in compliance with state and federal law.

However, a recent case shows that this preventive measure, while it is virtually always a helpful addition to an employer’s preventive measures against discrimination and retaliation, can go too far if not managed or implemented properly.

 

Anti-harassment Training Can Benefit the Workplace

Generally, anti-harassment training is a helpful addition the employer’s tool chest for preventive measures against discrimination and harassment. It gives employees the tools to be able to identify situations in which employees are harassed, discriminated against, and/or retaliated against; identify the classes upon which discrimination, harassment, and retaliation are illegal; and utilize the employer’s reporting procedures to prevent further discrimination, harassment, and retaliation when it is identified.

When deployed properly, anti-harassment training has the effect of creating, at the very least, a discussion in an educational environment about the influence of discrimination, harassment, and retaliation within the workplace.

“Generally, anti-harassment training is a helpful addition the employer’s tool chest for preventive measures against discrimination and harassment.”

Anti-harassment training also makes for an open forum in which employees can learn basic concepts that will make for a safer and inclusive environment that will help to prevent illegal discrimination, harassment, and retaliation. The court in the recent case of De Piero v. Pennsylvania State University acknowledged the positives in anti-harassment trainings, stating that “training on concepts such as ‘white privilege,’ ‘white fragility,’ implicit bias, or critical race theory can contribute positively to nuanced, important conversations about how to form a healthy and inclusive working environment.”

 

Anti-harassment Training Can Create a Hostile Work Environment

However, the court in De Piero also pointed to a more novel concept, that anti-harassment training can make for a hostile work environment. The plaintiff in De Piero sued on the hostile work environment theory, stating that he had to attend at least five conferences or trainings that discussed racial issues in “essentialist and deterministic terms, ascribing negative traits to white people or white teachers without exception and as flowing inevitably from their race.”

In order to prove hostile work environment, the plaintiff had to prove that he suffered intentional discrimination because of his protected status; the discrimination was severe or pervasive, it detrimentally affected him, and it would detrimentally affect a reasonable person in like circumstances (Castleberry v. STI Grp.).

In this case, the defendant employer moved to dismiss the plaintiff’s complaint, stating that the anti-harassment training did not create a severe or pervasive work environment and that it did not interfere with the plaintiff’s work performance.

However, the plaintiff succeeded, with the court ruling that the plaintiff had pled sufficient facts to go forward with his hostile work environment claim. Specifically, the court stated that the plaintiff “was obligated to attend conferences or trainings that discussed racial issues in essentialist or deterministic term, ascribing negative traits to white people or white teachers without exception.”

The court pointed out a training in which the trainer in the anti-harassment conference forced the plaintiff and other white and non-Black people to hold their breath longer to feel pain. It is this and other examples from the defendant’s anti-harassment training that led the court to conclude that the plaintiff’s hostile work environment claim could survive.

 

Conclusion

While the De Piero decision points to how employers can have possible liability when implementing preventive measures, employers should not abandon anti-harassment training and other preventive measures. The court specifically stated that anti-harassment training can aid employers and that “discussing in an educational environment the influence of racism on our society does not violate federal law.”

The takeaway from the De Piero decision is therefore not to eliminate anti-harassment training, but to instead emphasize that the communication and substance of these trainings matter and that anti-harassment trainings can violate federal law if not implemented properly. If employers have questions or concerns about their anti-harassment training following this decision, it is prudent to contact employment counsel.

 

Trevor Brice is an attorney who specializes in labor and employment-law matters at the Royal Law Firm LLP, a woman-owned, women-managed corporate law firm that is certified as a women’s business enterprise with the Massachusetts Supplier Diversity Office, the National Assoc. of Minority and Women Owned Law Firms, and the Women’s Business Enterprise National Council.

Healthcare News

Easing the Load

 

Currently, there are more than 11 million family members and friends across the country providing care to more than 6 million Americans living with Alzheimer’s disease.

Caring for those living with Alzheimer’s or other dementia poses special challenges for family caregivers. As dementia symptoms worsen, caregivers can experience increased emotional stress, depression, anxiety, and new or worsened health problems. Caregivers often experience depleted finances due to disruptions in employment and paying for healthcare or other services.
“Caring for a person with Alzheimer’s takes longer, lasts longer, is more personal and intrusive than most other diseases, and takes a heavy toll on the health of the caregivers themselves,” said Monica Moreno, senior director of Care and Support for the Alzheimer’s Assoc. “During the course of the disease, caregiving tasks escalate and become more intensive. Alzheimer’s and dementia caregivers are often managing multiple conditions, including memory loss, co-morbidities, loss of mobility, reduced communication skills, and behavioral and personality changes.”

Alzheimer’s Caregiving by the Numbers

• More than 11 million people in the U.S. are providing unpaid care to a person living with Alzheimer’s or dementia.
• Eighty-three percent of the help provided to older adults in the U.S. comes from family members, friends, or other unpaid caregivers.
• Nearly half of all caregivers (48%) who provide help to older adults do so for someone with Alzheimer’s or another dementia.
• Among primary caregivers of people with dementia, more than half take care of their parents.
• Approximately two-thirds of caregivers are women, and one-third of dementia caregivers are daughters.
• Approximately one-quarter of dementia caregivers are ‘sandwich generation’ caregivers, meaning they care not only for an aging parent, but also for children under age 18.
• In 2022, the lifetime cost of care for a person living with dementia was $377,621.
• Seventy percent of the lifetime cost of care is borne by family caregivers in the forms of unpaid caregiving and out-of-pocket expenses.
• Forty-one percent of caregivers have a household income of $50,000 or less.
Source: Alzheimer’s Assoc.

Across the country, 59% of dementia caregivers report high to very high emotional stress due to caregiving, and 38% report high to very high physical stress due to caregiving. Seventy-four percent of dementia caregivers report they are “somewhat concerned” to “very concerned” about maintaining their own health since becoming a caregiver.

To help caregivers balance competing priorities while maintaining their overall health and well-being, the Alzheimer’s Assoc. offers these tips:

• Find time for yourself. It’s normal to need a break from caregiving duties. No one can do it all by themselves. Consider taking advantage of respite care or help from family and friends to spend time doing something you enjoy.

• Become an educated caregiver. Understand the disease, its progression, and accompanying behavioral and physical changes. Know resources in your community that can help.

• Build a support network. Organize friends and family who want to help provide care and support. Access local caregiver support groups or online communities such as ALZConnected to connect with other caregivers. If stress becomes overwhelming, seek professional help.

• Take care of yourself. Try to eat well, exercise, and get plenty of rest. Making sure that you are healthy can help you be a better caregiver.

• Accept changes. Eventually, your loved one will need more intensive kinds of care. Research care options now so you are ready for the changes as they occur.

• Know you’re doing your best. It’s normal to lose patience or feel like your care may fall short sometimes. You’re doing the best you can. For support and encouragement, consider joining an online or in-person support group.

“As difficult as it may be, caregivers need to make their health and well-being an equal priority,” Moreno said. “Maintaining your health can help you be a better caregiver. No caregiver should face this disease alone. The Alzheimer’s Association is here to help.”

The Alzheimer’s Assoc. provides local support and programs to families facing this devastating disease, including a 24/7 helpline staffed by master’s-level clinicians and specialists who are available 365 days a year and can help families navigate a variety of disease-related issues. Call (800) 272-3900.

Law Special Coverage

New Year, New Protections

By John S. Gannon, Esq.

 

Last month, the U.S. Department of Labor (DOL) issued a final rule that provides businesses with guidance to be used when evaluating whether a worker should be classified as an employee or an independent contractor under the Fair Labor Standards Act (FLSA). The DOL is also expected to issue a final rule that will extend overtime protections to an estimated 3.6 million salaried workers who are currently exempt under the law. Read on for more details about both of these developments.

 

Employee or Independent Contractor?

There are lots of reasons why a business would want to classify an individual as an independent contractor instead of an employee. For starters, employees are entitled to minimum wage and overtime pay protections, while independent contractors are not.

Moreover, Massachusetts employees are afforded rights and protections under the state Paid Family and Medical Leave program and the Earned Sick Time Law. Employees can also take advantage of workers’ compensation benefits when they are injured on the job, and typically can collect unemployment if they lose their job. Independent contractors do not get these benefits.

As a result, agencies like the DOL and the Massachusetts Attorney General’s Office consider misclassifying employees as independent contractors to be a serious problem. To combat this, DOL recently released guidance that explains how to analyze whether a worker is an employee or independent contractor under the FLSA.

The new rule is generally considered more employee-friendly than previous guidance, and it looks at the ‘economic realities’ of the working relationship. If the economic realities show that the worker is economically dependent on the employer for work, then the worker is an employee. If the economic realities show that the worker is in business for himself or herself, then the worker is an independent contractor.

The following factors are used to guide the assessment of whether a worker is an employee under the FLSA or an independent contractor in business for himself or herself:

• Opportunity for profit or loss depending on managerial skill. If the worker has no opportunity for profit or loss in connection with the project they are working on for the business, they are probably not in business for themselves, and therefore employee status is suggested.

• Investments by the worker and the employer. This factor looks at whether the individual uses their own tools/equipment and the labor of others to further a true business. If these investments are being made, it suggests the worker is an independent contractor.

• Permanence of the work relationship. Independent-contractor relationships are typically set for a defined period of time, or until a project is finished. If the relationship is continuous/indefinite in duration, it suggests an employee-employer relationship.

• Nature and degree of control. Independent contractors set their own schedules free from supervision by their clients or customers. Conversely, if the worker is being supervised and has a set schedule, employee status is suggested.

• Whether the work performed is integral to the employer’s business. This factor looks at whether the work is critical, necessary, or central to the potential employer’s principal business, which indicates employee status. Where the work performed by the worker is not critical, necessary, or central to the potential employer’s principal business, this indicates independent-contractor status.

• Skill and initiative. The focus here is on whether the worker uses their skills in connection with business initiative. If the worker does, that indicates independent contractor status; if the worker does not, that indicates employee status.

Proper classification of workers is of critical importance to employers. As explained above, when an employer misclassifies an employee as an independent contractor, the worker cannot take advantage of numerous workplace protections afforded to employees. This can lead to significant administrative penalties for businesses, not to mention costly misclassification lawsuits. When the classification analysis is a close call, employers should consult with their employment counsel prior to making the determination to avoid costly mistakes.

 

New Overtime Protections for Millions of Employees

Last fall, the DOL announced a proposed rule that would increase the salary threshold for exemptions from minimum wage and overtime pay requirements under the executive, administrative, or professional exemptions — otherwise known as the EAP exemptions.

As a reminder, in order to qualify for an EAP exemption, employees generally must be paid a salary of at least $684 per week ($35,568 annually). The DOL’s proposed rule would raise the current minimum weekly salary threshold for exempt employees to $1,059 per week, which amounts to $55,068 annually. In short, this means that most employees with a salary of less than $1,059 per week will soon be entitled to overtime when working more than 40 hours in a workweek.

The DOL’s proposed salary threshold rule would also automatically update these earnings thresholds every three years. We expect the rule will be finalized in April, and may go into effect as soon as June. With the 2024 presidential election approaching, the Biden administration will want to finalize this rule as soon as possible to avoid a new administration rescinding the rule.

 

Bottom Line

We encourage clients to take a proactive, preventive approach to wage and hour laws. Consider having your compensation practices audited by experienced counsel to be sure your business is not mistakenly classifying employees as independent contractors. Also, an audit will help spot overtime exemption problems before litigation ensues.

 

John S. Gannon is a partner with Skoler, Abbott & Presser, P.C., one of the largest law firms in New England exclusively practicing labor and employment law. Gannon specializes in employment litigation and personnel policies and practices, wage and hour compliance, and non-compete and trade-secrets litigation; (413) 737-4753; [email protected]

Opinion

Opinion

By State Rep. Aaron Saunders

 

I grew up in a home where it was OK to ask if you were OK, mentally or physically, at the dinner table. This was not common during the 1980s, when a stay in a psychiatric ward could be a mark against you for life, but my dad was a psychologist, and my mother, a teacher.

They knew the importance of conversations with their boys about feelings, expectations, and disappointments and not just a skinned knee and how you got it.

I was reminded of this recently during a visit to the newly renovated adolescent unit of MiraVista Behavioral Health Center in Holyoke. Its recent reopening brought back on line 16 much-needed inpatient beds in Western Mass. for youth ages 13 to 17. The redesigned environment enhances delivery of care and healing for this population, in which recent government data estimates that nearly 50% have had a mental-health disorder at some point in their lives.

Massachusetts, with its Roadmap for Behavioral Health Reform, introduced last year a Behavioral Health Line to call 24/7 and network of community behavioral-health centers that provide broader access to mental-health services for those in crisis. The state, too, has added inpatient psychiatric beds to ease Emergency Department boarding that continues for all age groups.

We, as legislators, need to ensure that there is ongoing funding for such services and adequate reimbursement rates for such beds, as well as for addiction-treatment programs. Mental-health and substance-use disorders co-occur frequently, and it is important for both to be treated.

We also need to continue to consider policies that address staffing shortages and issues like educating students and their families on the importance of mental healthcare.

Yet, there is another barrier — stigmatization — around lessening disabling behavioral-health conditions. Massachusetts has a campaign that seeks to educate that addiction is a chronic illness and not a personal choice, but stigma and misinformation continue to prevent individuals with behavioral-health issues from seeking treatment.

You can’t legislative away all stigma. We all need to be better-educated that mental illness can be treated and that there are steps to be taken to prevent poor mental health from progressing to where it interferes with daily life. This is what I reflected on during my recent visit to MiraVista.

I hear from my constituents of the need for services close to home and, in applying the lessons learned from my parents in asking my own three children about their feelings, I get a look into their day in an age when bullying and pressure to engage in unhealthy behavior can come from anywhere.

We all need to be more open to talking with our families, friends, and healthcare providers about our mental health and that of those in our care, as this, too, is part of the roadmap to raising emotionally healthy children and staying emotionally healthy, too.

 

State Rep. Aaron Saunders represents the 7th Hampden District.

Accounting and Tax Planning

Make the Right Choice

The Internal Revenue Service today reminds taxpayers that carefully choosing a tax professional to prepare a tax return is vital to ensuring that their personal and financial information is safe, secure, and treated with care.

Most tax-return preparers provide honest, high-quality service. But some may cause harm through fraud, identity theft, and other scams. It is important for taxpayers to understand who they’re choosing and what important questions to ask when hiring an individual or firm to prepare their tax return.

Another reason to choose a tax preparer carefully is because taxpayers are ultimately legally responsible for all the information on their income tax return, regardless of who prepares it.

The IRS has put together a directory of federal tax-return preparers with credentials and select qualifications (irs.treasury.gov/rpo/rpo.jsf) to help individuals find a tax pro that meets high standards. There is also a page at irs.gov for choosing a tax professional that can help guide taxpayers in making a good choice, including selecting someone affiliated with a recognized national tax association. There are different kinds of tax professionals, and a taxpayer’s needs will help determine which kind of preparer is best for them.

 

Red Flags to Watch Out For

There are warning signs that can help steer taxpayers away from unscrupulous tax-return preparers. For instance, not signing a tax return is a red flag that a paid preparer is likely not to be trusted. They may be looking to make a quick profit by promising a big refund or charging fees based on the size of the refund.

These unscrupulous ‘ghost’ preparers often print the return and have the taxpayer sign and mail it to the IRS. For electronically filed returns, a ghost preparer will prepare the tax return but refuse to digitally sign it as the paid preparer. Taxpayers should avoid this type of unethical preparer.

In addition, taxpayers should always choose a tax professional with a valid preparer tax identification number (PTIN). By law, anyone who is paid to prepare or assists in preparing federal tax returns must have a valid PTIN. Paid preparers must sign and include their PTIN on any tax return they prepare.

 

Other Tips

Here are a few other tips to consider when choosing a tax return preparer:

• Look for a preparer who’s available year-round. If questions come up about a tax return, taxpayers may need to contact the preparer after the filing season is over.

• Review the preparer’s history. Check the Better Business Bureau website for information about the preparer. Look for disciplinary actions and the license status for credentialed preparers. For CPAs, check the State Board of Accountancy’s website, and for attorneys, check with the State Bar Assoc. For enrolled agents, go to irs.gov and search for ‘verify enrolled agent status’ or check the IRS Directory of Federal Tax Return Preparers.

• Ask about service fees. Taxpayers should avoid tax-return preparers who base their fees on a percentage of the refund or who offer to deposit all or part of the refund into their own financial accounts. Be wary of tax-return preparers who claim they can get larger refunds than their competitors.

• Find an authorized IRS e-file provider. They are qualified to prepare, transmit, and process electronically filed returns. The IRS issues most refunds in fewer than 21 days for taxpayers who file electronically and choose direct deposit.

• Provide records and receipts. Good preparers ask to see these documents. They’ll also ask questions to determine the client’s total income, deductions, tax credits, and other items. Do not hire a preparer who e-files a tax return using a pay stub instead of a Form W-2. This is against IRS e-file rules.

• Understand the preparer’s credentials and qualifications. Attorneys, CPAs, and enrolled agents can represent any client before the IRS in any situation. Annual Filing Season Program participants may represent taxpayers in limited situations if they prepared and signed the tax return.

• Never sign a blank or incomplete return. Taxpayers are responsible for filing a complete and correct tax return.

• Review the tax return before signing it. Be sure to ask questions if something is not clear or appears inaccurate. Any refund should go directly to the taxpayer — not into the preparer’s bank account. Review the routing and bank-account numbers on the completed return and make sure they are accurate.

• Taxpayers can report preparer misconduct to the IRS using Form 14157, Complaint: Tax Return Preparer (www.irs.gov/pub/irs-pdf/f14157.pdf). If a taxpayer suspects a tax-return preparer filed or changed their tax return without their consent, they should file Form 14157-A, Tax Return Preparer Fraud or Misconduct Affidavit (www.irs.gov/pub/irs-pdf/f14157a.pdf).

 

Extended Hours

In addition to this advice, the IRS also announced nearly 250 IRS Taxpayer Assistance Centers around the country will extend their weekly office hours to give taxpayers additional time to get the help they need during the filing season. The extended office hours will continue through Tuesday, April 16.

The Springfield office, located at 1550 Main St., offers extended hours on Tuesdays and Thursdays. For questions about available services or hours of operation, call (413) 788-0284.

The expanded hours at the assistance centers reflect funding and staffing made possible under the Inflation Reduction Act, which is being used across the IRS to improve taxpayer service, add new technology and tools, as well as help tax-compliance efforts.

“This is another example of how additional IRS resources are helping taxpayers across the country,” IRS Commissioner Danny Werfel said. “Adding extra hours provide more options for hardworking taxpayers to get help with their tax issues. The IRS is continuing to work hard both during the upcoming tax season and throughout the year to find ways to make it easier for people to interact with us.”

Accounting and Tax Planning Special Coverage

Potential Tax Relief

By Kristina Drzal Houghton, CPA

This article, written on Feb. 2, highlights the U.S. House of Representatives’ Jan. 31 passage of the Tax Relief for American Families and Workers Act of 2024 (H.R. 7024). However, it’s important to note that the details are subject to change pending the Senate’s vote and the ultimate signing into law by the president.

Despite concerted efforts to get the bill to the Senate in time for the current tax-filing season, this deadline has unfortunately lapsed, causing some concern over timing and efficacy. However, lawmakers remain optimistic about swift passage in the subsequent stages, aiming to minimize the impact on the IRS and enable prompt relief for taxpayers.

 

INDIVIDUAL TAX RELIEF

One of the core components of this legislation includes an increase in the child tax credit, a move set to benefit families with children across the nation. This concept is further strengthened by the introduction of a refundable portion determined per child, a clear advantage for growing families.

The proposed bill introduces a single change regarding the child tax credit. Currently, the credit is $2,000 per child for taxpayers who do not exceed certain income thresholds. A portion of this credit can be refunded up to $1,600 in 2023. The refundable portion is limited based on the number of qualifying children and the taxpayer’s earned income.

Under the proposed law, the refundable amount will be calculated per child, resulting in a total refundable amount. This change applies to the 2023-25 tax years. Additionally, the maximum amount of the refundable credit will be increased to $1,800 for 2023, $1,900 for 2024, and $2,000 for 2025. The overall child tax credit will also be adjusted for inflation from 2024 onward.

Kristina Drzal Houghton“One of the core components of this legislation includes an increase in the child tax credit, a move set to benefit families with children across the nation. This concept is further strengthened by the introduction of a refundable portion determined per child, a clear advantage for growing families.”

Notably missing from this legislation was a provision that addresses an aspect of the state and local tax deduction, which was capped at $10,000 by the Tax Cuts and Jobs Act in 2017. The $10,000 cap applies to taxpayers filing either single or married filing jointly. Advocates were hoping for a provision to increase the married filing joint cap to be twice the single cap and eliminate that marriage penaly.

 

BUSINESS TAX RELIEF

In a bid to support the innovative spirit of America, the Tax Relief for American Families and Workers Act also includes provisions to delay the requirement to capitalize and amortize research and experimentation expenditures. This is further bolstered by an extension of the 100% bonus depreciation for properties in service prior to Jan. 1, 2026.

For the hardworking business sector, the Act provides an increase in the Code Sec. 179 deduction limitation and expense limitation for property put into service post-2023.

 

Research and Experimental Expenses

Under current law, domestic research and experimental expenditures incurred in tax years starting after Dec. 31, 2021 must be amortized over five years. Previously, these expenses could be immediately deducted in the year they were paid or incurred. Research or experiment costs outside the U.S. are deductible over a 15-year period. The proposed law would postpone the application of this rule for research and experimental costs related to domestic activities until tax years starting after Dec. 31, 2025. There will be no change for activities outside the U.S. The bill includes transitional rules for research credits and accounting changes.

Observation: H.R. 7024 provides that a taxpayer can reflect the retroactive application of Section 174 expensing via a change in method of accounting with either a one-year Section 481(a) adjustment or an elective two-year Section 481(a) adjustment. Alternatively, eligible taxpayers generally would be permitted to amend their first tax year beginning on or after Jan. 1, 2022, to reflect current expensing of eligible Section 174 expenditures. Due to the late passage of this bill, businesses may want to consider applying for an extension of time to file their returns so they can analyze which of the three options is most beneficial for them.

 

Business Interest Limitation

Under current tax law, prior to 2022, the calculation of adjusted taxable income for the business interest expense limitation (Code Sec. 163(j)) excluded deductions for interest, taxes, depreciation, amortization, or depletion (IBITDA). However, starting from 2022, only deductions for interest and taxes were considered, excluding depreciation, amortization, and depletion. The new law would reintroduce depreciation, amortization, and depletion for tax years starting after Dec. 31, 2023, and before Jan. 1, 2026. Additionally, taxpayers can choose to include depreciation, amortization, and depletion for tax years beginning after 2021 and before 2024.

Observation: H.R. 7024 provides that a taxpayer can reflect the retroactive application of using IBITDA to calculate the interest limitation. The bill does not provide as much information on how to effect the retroactive elction as it does with Section 174. Taxpayers with large limitation in 2022 may find it advantageous to amend their returns for this retroactive adoption. It is also unclear if you can elect to provide the provision for 2023 without amending 2022.

For the hardworking business sector, the Act provides an increase in the Code Sec. 179 deduction limitation and expense limitation for property put into service post-2023.

 

Bonus Depreciation

The most recent change, under the Tax Cuts and Jobs Act of 2017, allowed for immediate expensing of qualified property placed in service between Sept. 17, 2017 and Jan. 1, 2023 (100% bonus depreciation). Starting in 2023, the first-year depreciation gradually reduces (80% in 2023, 60% in 2024, 40% in 2025, 20% in 2026) until it is eliminated for property placed in service in 2027. The proposed bill extends 100% bonus depreciation for property placed in service before Jan. 1, 2026 (Jan. 1, 2027 for longer production period property and certain aircraft). In 2026 and 2027, the 20% and 0% bonus depreciation rates would continue to apply.

 

Increased 179 Deduction

Under current law, businesses can choose to expense certain qualifying property instead of depreciating it. This includes tangible personal property, off-the-shelf computer software, and qualified real property used in the active conduct of a trade or business. The deduction is limited to an inflation-adjusted amount. In 2024, the deduction is capped at $1.22 million, reduced dollar-for-dollar by expenses exceeding $3.05 million.

 

Employee Retention Credit

The Employee Retention Tax Credit (ERTC) was established in March 2020 during the COVID-19 pandemic. The purpose of the credit was to provide businesses with a credit against certain payroll taxes if they retained employees during lockdowns that may have impacted their income. The American Rescue Plan Act of 2021 extended the credit and expanded its scope to include Medicare taxes and dropped the precentage threshold for revenue decrease establishing eligibility for the credit. Taxpayers were able to make ERTC claims until April 15, 2025, despite the expiration of the period for which the credit can be claimed.

The IRS has identified fraudulent claims made by taxpayers, often unknowingly, facilitated by third-party processors (COVID-ERTC promoters) who boldly advertised on television and plagued businesses with calls implying that almost any business qualified due to facts and circumstances. To address this issue, the IRS temporarily suspended the acceptance of new claims in late 2023 while investigating potential instances of fraud in its backlog. Additionally, an amnesty program was established for taxpayers to voluntarily withdraw unqualified claims or repay the credit without penalty.

The proposed bill aims to combat fraudulent claims by increasing penalties for COVID-ERTC promoters, extending the limitations period on assessments of ERTC claims to six years, and imposing reporting requirements on COVID-ERTC promoters similar to promoters of listed transactions. Notably, the bill sets Jan. 31, 2024 as the deadline for making ERTC claims.

 

In Addition

In an effort to reduce compliance burdens on businesses, the Act raises the filing threshold for Form 1099-NEC and 1099-MISC from $600 to $1,000 for payments post-Dec. 31, 2023. The $1,000 will be adjusted for inflation.

 

IN SUMMARY

In essence, the Tax Relief for American Families and Workers Act of 2024 is a comprehensive package addressing varied aspects of the American economic landscape with a keen eye on relief and progression. These changes aim to promote economic growth, support independent contractors and businesses, and address housing affordability concerns.

While the House’s passage of the Act marks a significant milestone, it’s important to keep a vigilant eye on the upcoming Senate proceedings, as the Act still requires approval there before becoming law.

 

Kristina Drzal Houghton, CPA is a partner at the Holyoke-based accounting firm Meyers Brothers Kalicka, P.C.

 

Features

It’s Not Going Away

By Linn Foster Freedman

Consumers have embraced the use of artificial intelligence (AI) tools in their everyday lives since ChatGPT was introduced into the economy last year. Employees are using AI technology in their workplaces, which causes risks to companies. In addition, third-party vendors are embedding AI technology into their products and services, often without companies’ knowledge, and are using company data to teach AI tools.

This article provides practical tips to evaluate the use of AI tools within an organization and by third-party vendors, how to minimize that risk, and how to approach the use of AI tools as technology advances.

Although AI technology has been in existence for decades, it has become mainstream over the past year with the arrival and novelty of ChatGPT’s use by consumers. When consumers embrace technology before companies, it is only a matter of time before consumers start to migrate that use into the workplace, whether it is approved or not.

Companies are struggling with how to introduce AI tools into their environment, as the risks associated with AI tools have been well-documented. These include copyright infringement, use and disclosure of personal information and company confidential data, bias and discrimination, hallucinations and misinformation, security risks, and legal and regulatory compliance risks.

These risks are real and compelling, especially when employees are sharing company data with AI tools. Once employees upload company data to an AI tool, that data may be used by the AI tool developer to teach its AI model, and the company’s confidential data may now be publicly available. Further, many companies are embedding AI into their products or services, and if you are disclosing confidential company data to vendors, they may be using your data to teach their AI tools or feeding your confidential data to other third-party AI tools.

Linn Foster Freedman

Linn Foster Freedman

“Companies are struggling with how to introduce AI tools into their environment, as the risks associated with AI tools have been well-documented.”

The risk is daunting, but manageable with strategy and planning. Here are some tips on how to wrap your arms around your employees’ use of AI tools in your organization. Tips to manage the risk of vendors using AI tools will be addressed later on.

 

Tips for Evaluating Your Organization’s Use of AI Tools

1. Don’t put your head in the sand. AI is here to stay, and your employees are already using it. They don’t understand the risk, but it seems cool, so they are and will continue using it. They will use any tool that will make their jobs easier — that’s human nature. Embrace this fact and commit to addressing the risk sooner rather than later. Ignoring the issue will only make it worse.

2. Don’t prohibit the use of AI tools in your organization. AI tools can be used to increase efficiencies in the workplace and increase business output and profits. Prohibiting its use will put you behind your competition and be a failed strategy. Your employees will use AI tools to make their work lives more efficient, so getting ahead of the risk and communicating with your employees is essential to evaluate and develop the use of AI in your organization.

3. Find out who the entrepreneurs and AI users are in your organization. Encourage the entrepreneurs in your organization to bring use cases to your attention and evaluate whether they are safe and appropriate. There are many uses of AI tools that do not present risks. The use cases should be evaluated, and proper governance and guardrails should be implemented to minimize risks.

4. Develop and implement an AI governance program. While AI tools are developing rapidly, it is essential to have a central program that will govern its use, internally and externally. Gather an AI governance team from different areas in the organization that will be responsible for keeping a tab on where and when AI is used; a process for evaluating uses, tools, and risks; putting guardrails and contractual measures in place to reduce the risk; and processes to minimize the risk of bias, discrimination, regulatory compliance, and confidentiality. The team will start slow, but once processes are in place, they will mature and pivot as technology develops.

5. Communicate with your employees often about the risks of using AI tools, the company’s AI governance program, and the guardrails you have put in place. Companies are better now than ever at communicating with employees about security risks, particularly email phishing schemes. Use the same techniques to educate your employees about the risks of using AI tools. They are using ChatGPT because they saw it on the news or one of their friends told them about it. Use your corporate communications to continually educate your employees using AI tools in the company and why it is important that they follow the governance program you have put in place. Many employees have no idea how AI tools work or that they could inadvertently disclose confidential company information when they use them. Help them understand the risks, make them part of the team, and guide them on how to use AI tools to improve their efficiency.

6. Keep the governance program flexible and nimble. No one likes another committee meeting or extra work to implement another process. Nonetheless, this one is important, so don’t let it get too bogged down or mired in bureaucracy. Start by mapping the uses of AI in the organization, evaluating those uses, and learning from that evaluation to become more efficient in the evaluation process going forward. Put processes in place that can be replicated and eventually automated. The hardest and most important work will be setting up the program, but it will get more efficient as you learn from each evaluation. The governance program is like a mini-AI tool in and of itself.

7. Be forward-thinking. Technology develops rapidly, and business organizations can hardly keep up. This is an area on which to stay focused and forward-thinking. Start by having someone responsible for staying abreast of articles, research, laws, and regulations that will be important in developing the governance program. Right now, a great place to start is with the White House’s Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence. It gives a forward-thinking view of the development of regulations and compliance around AI that can be used as a prediction of what’s to come for your governance program.

8. Evaluate the risk of the use of AI tools by vendors. The AI governance team should be intimately involved with evaluating vendors’ use of AI tools, which is discussed in more detail below.

 

Tips for Evaluating the Risk of Use of AI Tools by Vendors

1. Carefully map which vendors are using AI tools. It might not be readily apparent which of your vendors use AI tools in their products or services. Team up with your business units to question which vendors are or may be using AI tools to process company data. Then, evaluate what data is disclosed and used by those vendors and determine whether any guardrails need to be put in place with the vendor.

2. Implement a process with business units to question vendors upfront about using AI tools. Business units are closest to the relationship with vendors, providing services to the business unit. Provide questions for the business units to ask when pursuing a business relationship with a vendor so you can evaluate the risk of using AI tools at the start. The AI governance team can then evaluate the use before contract negotiations begin.

3. Insert contractual language around the disclosure and use of company data and using AI tools. Companies may wish to consider developing an information security addendum (ISA) for any vendor with access to the company’s confidential data if they do not have one in place already. As the AI governance team evaluates the disclosure and use of company data to new vendors and the use of AI tools when processing company data, vendors should be questioned on the tools used, security measures used to protect company data (including from unauthorized use or disclosure of AI tools), and contractual provisions on the use of AI. Contractual language should be clear and concise about the vendor’s obligations and the remedies for a breach of the obligations, including indemnification. This language can be inserted in the ISA or the main contract.

4. Evaluate and map existing vendors’ use of AI tools. There may be some vendors you have already contracted with that are using AI tools to process confidential company information of which you are not aware. Prioritize which vendors have the highest risk of processing confidential company data with AI tools and review the existing contract. If applicable, request an amendment with the vendor to put appropriate contractual language in place addressing the processing of company confidential information with AI tools.

5. Add the evaluation of AI tools to your existing vendor-management program. If you have an existing vendor-management program in place, add the use of AI tools into the program going forward. If you don’t have an existing vendor-management program in place, it’s time to develop one.

 

Conclusion

Now is the time to implement a strategy and plan around the use of AI tools within your organization and externally by your vendors. It seems daunting, but the risk is clear and will be present until you address it. Hopefully, the tips in this article will help you start taking control of AI use in your organization and by your vendors and minimize the risk, so you can use AI to make your business more efficient and profitable.

 

Linn F. Freedman is a partner and chair of the Data Privacy + Cybersecurity Team at Robinson+Cole.

Health Care Healthcare News

Off on the Right Foot

 

Did you include better health in your New Year’s resolutions?

Health experts at Baystate Health suggest setting realistic goals and prioritizing what is most important to you, taking small steps, and remembering not to beat yourself up if you encounter a setback in your health goals for 2024. Here are three goals to consider as you continue on your journey:

 

Improve Your Blood Sugars

From Dr. Cecilia Lozier, chief of the Division of Endocrinology and Diabetes, Baystate Health:

There are three important approaches to improve your blood-sugar numbers as we start the new year. First, moderate your carbohydrate intake. No dramatic approach is needed. If before you would take two scoops of potatoes, now consistently take one and fill the empty space with non-starchy vegetables.

Dr. Cecilia Lozier

Dr. Cecilia Lozier

“Moderate your carbohydrate intake. No dramatic approach is needed. If before you would take two scoops of potatoes, now consistently take one and fill the empty space with non-starchy vegetables.”

Second, increase your physical activity. Using your muscles will push sugar into your cells and out of your bloodstream. The more you move and are physically active, the better your numbers will look. Third, modest weight loss. Losing between 5% and 10% of your body weight will have a dramatic impact on how you metabolize sugar. Speak with your healthcare provider to personalize this approach for you.

 

Address Sleep Problems

From Dr. Karin Johnson, medical director, Baystate Health Regional Sleep Program and Baystate Medical Center Sleep Laboratory, Baystate Health:

Stress levels are higher today in the world we live in. While stress can make sleeping well more challenging, it is important to prioritize sleep, which is necessary for health and well-being. Most adults function best with seven to eight hours of sleep, and teenagers need around nine hours.

Good-quality sleep is important for preventing infections and keeping your immune system working well. Studies have shown that sleep-deprived people don’t mount the same immune response after vaccinations as good sleepers, so it is important to make sure you get a good night’s sleep prior to getting a flu or COVID vaccine, for example.

Keeping a regular sleep schedule will allow your body’s internal clock to help you get the best night’s sleep. If you are having difficulty sleeping or show signs of poor-quality sleep with loud snoring, difficulty staying asleep, urinating frequently at night, or daytime sleepiness or tiredness, you may benefit from a sleep-medicine evaluation.

 

Control Your Weight

From Eliana Terry, registered dietitian, Baystate Noble Hospital:

Is your New Year’s resolution to eat healthier, exercise more, or achieve another health-related goal? The new year brings with it the opportunity to start on a path toward wellness or, if you’ve already done so, to maintain healthy habits. However, it can be difficult to make these goals stick with all the challenges the year throws our way. What is the best way to be successful in achieving your health resolutions? Consider the following.

• Be specific with your goals. Instead of ‘I will eat healthier,’ consider something like ‘I will replace four sodas per week with water.’ Setting a more specific goal can help you actually check whether you have completed the goal each day and, thus, be successful long-term.

• Make sure your goals are measurable. If your goal is weight loss, for example, set a measurable amount with a time frame to reach your goal by. For example, ‘I want to lose 10 pounds by April 2024’ and ‘exercise for 30 minutes, three times per week’ are more measurable goals than ‘lose weight this year.’

• Make your goals realistic for you. For example, if you travel daily for work, ‘no longer eat on the go’ as a resolution may be unrealistic for your lifestyle. You may find yourself giving up by February if you have purchased any meals out. This hinders any progress you could have made in a longer period. Instead, try a more realistic and flexible goal such as ‘pack a healthy lunch to keep in a cooler four times per week.’

Set yourself up for success this year with specific, measurable, realistic resolutions. Otherwise, you may find yourself quickly frustrated by your inability to stick to and achieve your goals.

Cover Story Creative Economy

Music Will Live Again

By Emily Thurlow

Chris Freeman

Chris Freeman, executive director of the Parlor Room Collective
Photo by Emily Thurlow

There’s a lot to love about the Iron Horse Music Hall.

Though it’s not as apparent from the outside, with its large storefront windows covered in layers of tape holding up posters advertising myriad performers and upcoming shows, the downtown space holds countless special memories for lovers of live music in Western Mass., as reflected in its venerable slogan, “music alone shall live.”

Over the course of its more than four decades in existence, thousands of musical acts have graced the stage at the historic Northampton venue — one of a handful of hotspots, in fact, that helped define the city as an entertainment destination.

Whether leaning on the balcony railing or sitting at a table, or swaying from side to side at the edge of the stage, audiences of multiple generations have been entertained time and time again by artists like jazz musicians Freddie Hubbard and Bobby McFerrin, singer-songwriters from Brandi Carlile to Robyn Hitchcock, rockers like Graham Parker and the Smashing Pumpkins, and contemporary folk icons like Dar Williams and Dan Bern.

And while concertgoers and performers alike cherished the intimate atmosphere within the historic walls, it’s no secret that the Iron Horse also carries a less-pleasant legacy with regard to uncomfortable room temperatures, underwhelming bathrooms, and a poorly maintained green room — not to mention labor complaints and an extended closure that marred the last few years of the venue’s previous ownership by Eric Suher.

The the new owner, however — a nonprofit called the Parlor Room Collective that operates other small, local performance spaces — has plans to make those less-appealing accounts a thing of the past and reopen the Iron Horse this May.

“This is a living place. You can have people seated around the outside on the balcony or standing, and you could have college kids moshing and dancing in the pit while you have all of their parents eating a nice meal around the outside. Everyone feels safe.”

Nearly halfway to the $750,000 goal of a capital campaign launched in November, the Valley-based nonprofit continues to call on the public to invest in the Iron Horse Music Hall. The Parlor Room Collective will use that investment to expand and renovate the facility’s footprint to enhance the overall experience for patrons and improve the space for artists, which will, in turn, bring people together through music as it did not so long ago, said Chris Freeman, executive director of the Parlor Room Collective.

“Our mission at the Parlor Room Collective is to enhance the health and vitality of our community through the power of music. We have witnessed the magic of our local music scene and its ability to fuel the engine of our economy, enhance the overall well-being of our community, and contribute to our cultural vitality,” Freeman said. “And now we stand at a pivotal moment in our journey as a nonprofit arts organization. We have a unique opportunity to revive a local treasure that has resonated with music lovers for generations: the Iron Horse.”

 

The Good, the Bad, and the Disgusting

Many who have entered the music industry at a grassroots level have performed at one point or another at the Iron Horse, Freeman said.

Take singer-songwriter Tracy Chapman, for example. Prior to taking home numerous Grammy awards for her eponymous 1988 debut, Chapman played at the Northampton venue, long before it was the multi-level experience it is today, Freeman noted.

“From John Mayer and Wynton Marsalis to Allen Ginsberg and Beck … the amount of performers that have played here goes on forever, and in every genre,” he said.

Before earning that reputation, the 20 Center St. mainstay was known as the Iron Horse Coffeehouse. At the time of its opening in 1979, the club’s capacity was limited to 60 people. Co-founded by Jordi Herold and John Riley, the venue was named for a work of sculpture that Herold’s mother had created.

About a decade — and a few expansions — later, the club could accommodate 170 seats and had became known as the Iron Horse Music Hall. Suher, a notable Northampton developer, purchased the venue in 1995 and owned it until its sale to the Parlor Room Collective in 2023.

Though he’s spent considerable time in the space, Freeman still marvels at how the unique venue lends itself to an eclectic, multi-generational experience. “This is a living place. You can have people seated around the outside on the balcony or standing, and you could have college kids moshing and dancing in the pit while you have all of their parents eating a nice meal around the outside. Everyone feels safe.”

At the same time, the venue has presented some unpleasantness for its guests. In recent years, some artists have publicly addressed such issues. Freeman recalled attending a show for Vanessa Carlton, who talked about how cold she was during her 2017 performance at the venue.

Carlton, best known for her 2002 hit single, “A Thousand Miles,” publicly thanked an audience member who loaned her fingerless gloves via a post on Twitter, stating, “it was freezing on stage” and Suher’s Iron Horse Entertainment Group “wouldn’t turn the heat up.”

In response, Suher denied Carlton’s assertions and told the Daily Hampshire Gazette at the time that “the performer was cold on the stage. The venue temp was 70 degrees.”

Carlton further spoke of the disarray in the green room, which was also located in the basement. On Twitter, she posted a photo of furniture with ripped and torn fabric and cushions collapsing and urged owners to toss it, so that she would return to the venue again in the future.

Though the space allowed fans to get close to artists, the space wasn’t especially welcoming, Freeman noted, adding the green room was known in the area for its poor condition, and the basement was the only place on site equipped with bathrooms. “These two disgusting bathrooms are supposed to serve 250 people — including the artists. They’re so, so gross.”

“Understanding its history, I kept thinking about how it’s just such an important place for our whole community, and I thought that somebody has to reopen this place.”

As for the HVAC unit, Freeman said the Iron Horse is in need of a serious upgrade. He explained the challenges of trying to keep a packed house well-regulated, whether the meant warm enough or cool enough. “There are tons of famous artist complaints of playing in here with it being 90 degrees — and 20 degrees outside.”

 

Music and Memories

Freeman’s knowledge of the Iron Horse goes well beyond his time as a board member for the Parlor Room. Growing up in Farmington, Conn., he would often attend shows at the Iron Horse with his father. The Valley’s music scene was especially attractive to him and made him want to move to the area, he said.

“Northampton was kind of like a grungy, artsy, cool place where people knew about artists. People had an understanding of bands that ran a little bit deeper than whoever’s on the big country radio station or the big pop stuff,” he said. “I remember the first time I came here. I knew I wanted to be a musician, and I thought that if I could just open a show at the Iron Horse, I’ll have made it.”

By his 10th or 11th visit to the Iron Horse, Freeman did just that and performed with the Americana/folk-rock group he helped found, Parsonsfield.

His band, which was signed to the Signature Sounds record label, was among the first artists to perform at the Parlor Room, located at 32 Masonic St. — just a block away from the Iron Horse. The Parlor Room was founded by Signature Sounds Recordings in the fall of 2012 as an “artist-and-audience-friendly” listening room, performance space, and school of music, he explained.

Chris Freeman

Chris Freeman sits on the Iron Horse’s prominent stairs to the second level, where the new restrooms will be located.

Freeman spent roughly a decade touring with Parsonsfield at venues throughout the U.S. In February 2022, he transitioned into the role of executive director of the Parlor Room and played a critical role in helping the organization transition into a nonprofit music venue and school last January.

On a near-daily basis, Freeman, who is now a resident of Northampton, would find himself walking by the Iron Horse, seeing the legendary venue remain dark.

“Understanding its history, I kept thinking about how it’s just such an important place for our whole community, and I thought that somebody has to reopen this place,” he told BusinessWest. “This was a place that is the heart of the whole Western Mass. music scene. The culture and the city around it made me want to move here.”

Freeman’s understanding of the value of the property led him to reach out to Suher. This past September, the Parlor Room announced it had reached an agreement with Suher to purchase the business, which includes the venue’s liquor license.

The Parlor Room signed a 15-year lease to not only operate the business at its current space at 18 and 20 Center St., but also to expand into 22 Center St. Connecting the adjacent storefronts will allow the Iron Horse to have a dedicated bar and community space and will increase the venue’s overall square footage by 40%, he explained.

Once renovations are completed and the Iron Horse has reopened, the Parlor Room will be, as its name suggests, a collective that encompasses three projects: the Iron Horse, the Parlor Room, and the Parlor Room School of Music. The original Parlor Room venue on Masonic Street will live on as the headquarters for the School of Music and an intimate performance venue.

“My main goal is, I wanted this place to come back, and I wanted to live in a city that has music — that’s why I moved here in the first place. My secondary goal is to make the Parlor Room become just as big of a part of this community,” Freeman said. “The ability to merge these together and to make sure that this place comes back — in the right way and with the right mission and in line with the community’s goals — felt like a really important thing to do.”

 

What’s the Plan?

With the aim of reopening this spring, the Parlor Room has set an ambitious renovation timeline that’s already underway, while the capital campaign continues. To date, the campaign has surpassed $317,500.

Among the biggest costs will be an upgraded sprinkler system and HVAC unit, Freeman said. The first phase of renovations also encompass updates to flooring, a new sound and lighting system, and stage and bar enhancement funded in part by a $73,000 American Rescue Plan Act grant from the city of Northampton.

The nonprofit has also partnered with Dave Schrier, co-owner of Easthampton’s Daily Operation, to redesign the dining and bar experience at the Iron Horse.

Phase two of the renovations will focus on accessibility and other upgrades. Instead of the two basement bathrooms, the new space will include 10 bathrooms that will be relocated for increased accessibility. This also includes two bathrooms accessible for those who use wheelchairs, in compliance with the federal Americans with Disabilities Act. A wheelchair lift will also be installed to make the stage accessible for all.

The Parlor Room Collective will also establish a brand-new green room that includes private bathrooms with a shower. A new floor layout will allow for 300 people for standing-room-only events and variations of more than 200 people seated in new furniture.

“There is no better investment in our community — and what, historically, has seen Northampton as a community thrive, business-wise — than bringing back the Iron Horse and having this place open 250 nights a year with a bar, with the way that it impacts other restaurants and tourism in the area,” Freeman said.

To donate to the “Revive the Iron Horse” capital campaign, visit ironhorse.org.

Healthcare News Special Coverage

One Workout at a Time

By Emily Thurlow

Steve Conca

Steve Conca, owner of Conca Sport and Fitness

Between platefuls of coma-inducing turkey, complete with all the fixings, and palatable pies and pastries, it’s safe to say that many people are happy to see the hearty overindulgences of the 2023 holiday season firmly in the rear-view mirror.

For many, the start of the new year provides an opportunity to start out on the right foot, by developing better habits and establishing goals. Through myriad resolutions, one theme that tends to stand out year after year is health.

Notably, an October 2023 survey from Forbes Health/OnePoll revealed that 48% of U.S. adults say improving fitness is a top priority for them in 2024. Google Trends also released data showing that some of the top health-related searches in January include meal preparation, healthy meal ideas, and gym memberships.

And while some say they resolve to lose weight or improve their health in January, it often takes another month before they will deliver, said Danny Deane, who owns two local F45 Training franchises with his wife, Jessye.

“February is the number-one month in the fitness industry, with September being second,” he said. “In January, everybody starts to think about it, and then, by the time February rolls around, they’re really making good on their promise.”

Whether it’s during the winter doldrums or as the leaves begin to turn in the fall, local fitness studios and gyms continue to see positive gains in this post-pandemic climate — in both their business and their clients.

“I think people are realizing that putting an investment into themselves pays big dividends.”

“I think people are realizing that putting an investment into themselves pays big dividends,” said Steve Conca, owner of Conca Sport and Fitness in West Springfield.

During the pandemic, gyms and fitness centers were severely challenged by shutdowns and limitations on the amount of people in a space at any given time. For some, the impact was minimal. For others, it’s been rather extreme.

F45 Training

One key to success at gyms like F45 Training is accountability with a workout partner.

In fact, 25% of fitness studios and gyms have closed permanently since the onset of COVID-19, according the National Health & Fitness Alliance, an industry group.

However, Jon Davis, owner and performance director of Powerhouse Training in East Longmeadow, said business is “as good as it ever has been.”

Powerhouse Training, which Davis founded in 2010, offers sports-specific lessons for baseball and softball athletes as well as general performance training in speed, agility, strength, and mobility. The majority of his clientele includes athletes between age 8 and pro-rank levels.

Because Powerhouse Training provides more of a specialized kind of exercise regimen, Davis said he didn’t see the decline in attendance that many commercial gyms did. He said he’s also found that parents are valuing their children’s access to being physically active.

“I think a lot of parents realize the importance of having their kids get outside and socialize and stay active, for not only their physical health, but also their mental health,” he told BusinessWest. “Since we provide more of a specialized training, the kids really can’t train on their own, and they need assistance as well as special equipment, and they need a lot more space. So I think we were a necessity for them, which has certainly helped out.”

The group training, which involves youth athletes coming in two to three times a week, costs between $145 and $195 per month. Prices range between $50 and $90 for baseball lessons and $50 and $75 for fitness training.

 

Investing in Health

For the most part, Conca’s entire membership stuck with his gym. He expressed gratitude for the tight-knit community, or “family,” that is Conca Sport and Fitness, which first opened in 2009.

For months, all the personal training and small-group training was done outside. Unlike more recent weather patterns, the forecast remained relatively sunny, with little precipitation. And once the clouds of the pandemic restrictions cleared, he actually saw a slight resurgence.

“People are always going to want the newest, latest, and greatest thing — and, certainly, some of those innovations are really helpful — but honestly, I think learning good form and focusing on staying balanced, working mobility, and strength training will never get old.”

“I think it’s opened people’s eyes to realize, ‘I really wasn’t taking great care of myself,’ so it’s led them to want to invest in themselves,” he said. “Here, we call investing in yourself a health savings account. The more you can put in now, the more you can reap the benefits.”

In addition to personal training and group training, Conca Sport and Fitness also offers health nutrition and wellness coaching. Memberships range between $209 to $349 a month, with individual sessions ranging between $20 to $37.

“When people come here, they aren’t just going to bang out a few workouts, high-five, fist-bump, and ‘see ya later,’” he said. “It’s a whole process that includes teaching people how to take better care of themselves as they age.”

As for the Deanes, the couple, who opened their first gym, F45 Training Hampshire Meadows in Hadley in 2018, decided to open a second location in West Springfield in 2020.

“A lot of doors closed throughout the last couple years in the fitness world, but we are lucky enough to be on the other side of it and are actually above pre-COVID numbers at Hampshire Meadows,” Danny said. “We made it through.”

The 45 in F45 stands for 45 minutes of functional fitness, with sessions led by two personal trainers in a motivating team environment, said Jessye Deane, who is also executive director of the Franklin County Chamber of Commerce and Regional Tourism Council.

F45 Training does not employ heavy equipment or machinery

F45 Training does not employ heavy equipment or machinery, but it does include the use of kettlebells, free weights, and body-weight-based movements.

“The goal is really functional fitness. It’s scalable and adaptable, so it fits every fitness level,” she said. “A lot of times, what we hear is that folks go to the gym and want to get healthier, want to be able to move better, and want to be able to feel better, but they don’t quite know how to work the machines or they don’t know what they’re doing, and they get hurt, or they get frustrated. And this is kind of the answer to that. All you have to do is walk through the door, and we will take it from there.”

Every day, the gym features a different workout. F45 Training does not incorporate heavy equipment or machinery, but it does include the use of kettlebells, free weights, and body-weight-based movements.

The workouts for the Australian-based franchise combine elements of high-intensity interval training, circuit training, and functional training. The West Springfield location also currently offers a free seven-day trial, and the Hadley location is offering a seven days for $7 offer.

Trends come and go, but according to the area gym owners BusinessWest spoke with, having a healthier lifestyle comes down to the basics.

“People are always going to want the newest, latest, and greatest thing — and, certainly, some of those innovations are really helpful — but honestly, I think learning good form and focusing on staying balanced, working mobility, and strength training will never get old,” Davis said. “I think those tend to produce the best results.”

Conca agreed, noting that, as people age, he explained, they lose strength, muscle mass and function.

“Father time just begins chipping away,” Conca said. “That’s why maintaining muscle mass and strength levels — the fundamentals — is super important. I’d argue that it’s more important than so-called cardio, because you can get a good cardiovascular response with some very good strength training.”

According to the National Institutes of Health, muscle mass decreases approximately 3% to 8% per decade after age 30. After age 60, the rate of decline is even higher.

While F45 workouts have the adaptability to pull in emerging trends, Jessye Deane emphasized that trends are not the mainstay of the gym.

“We want you to feel great now, and we want you to feel great in 20 years — that’s our motivator,” she said. “The focus of our programming is to make sure that we’re providing people the safest, most effective functional fitness workout they can have.”

One way F45 workouts tap into recent trends is through supersets, she added. A superset includes performing a set of two different exercises back to back with little to no rest in between. One example of this would be doing a set of 10 push-ups, followed immediately by pull-ups.

 

Sticking with It

Finding motivation to stick with any new habit can be difficult, of course. It can potentially be even harder when the only opportunity to dedicate time to fitness is before the sun rises or well after it sinks below the horizon. That time crunch, combined with inclement winter weather, can make someone want to shed their new goal before they even begin.

One way Conca and the Deanes have seen clients stick with their fitness routines is by not doing it alone.

“Accountability is key. Having a group of people that you’re excited to see every day helps,” Jessye Deane said, adding that her husband is her workout partner. “Danny is my accountability partner. He wakes me up every morning whether I want to or not.”

At Powerhouse, Davis coaches each athlete differently based on their personality. Some kids may require more positive affirmation to help build their confidence, while others require him to be blunt and upfront and tell them directly what they’re doing incorrectly.

“It’s getting to know these athletes — getting to know what they like, what they don’t like, what motivates them, and then trying to find out what makes them tick and make sure that, when it’s time to push, we know what button to push,” he explained.

Throughout his tenure, Davis has produced more than 100 All-Western Mass. high-school all-stars, 13 All-Americans at the high-school and collegiate levels, and three Western Mass. Players of the Year in football, baseball, and girls lacrosse. He’s also helped produce 10 Major League Baseball draft picks out of the high-school ranks, including Isan Díaz and Seamus Curran.

At Conca’s gym, motivational phrases festoon the walls, including quotes from famous folks ranging from Wayne Gretzky to Amelia Earhart. The gym also features a so-called ‘strong wall’ that includes one-word motivational phrases that clients create to help drive their personal success. At the time of this interview, Conca was still tinkering with the specifics of the acronym LIFT, with the goal of lifting others up.

For those looking to dip their toe into the fitness and exercise pool, Jessye Deane said anytime is a good time to start.

“There is nothing more important than your health,” she told BusinessWest. “Whether you’re working out at an F45 or you’re doing yoga or you’re visiting any of the wonderful studios in the Valley, we really want people just to feel better and be healthier.”

 

Opinion

Opinion

By Sandra Mauro

 

As human-resource professionals partner with their organization’s senior leaders to set priorities for 2024, we at the Employers Assoc. of the NorthEast (EANE) can’t help but reflect on the 2023 workplace predictions and ask, how effective were we at deciding where to focus our efforts, and, more importantly, did we move the needle on the critical issues we faced?

In 2023, seven key challenges were forecasted. Number one was quiet hiring, challenging us to look internally and determine if our workforce strengths would meet future organizational needs. Number two was equitable flexibility for frontline workers, an inspirational idea to open up the dialogue for frontline workers to freely express their preferences on how, when, and with whom they work.

Three through six were manager support, pursuing non-traditional talent, coping with stress, and workplace civility. Number seven? Technology and the entrance of AI.

Focusing forward on 2024, two through seven are green workplaces, civil culture, defining the new workplace, psychological safety, learning and upskilling, and career advancement. What a difference a year makes. AI has catapulted to number one.

When we think about AI and ask what will my organization do (or not do) with this new technology, we first need to acknowledge that Gen Z now makes up 23% of our 2024 workforce. This generation literally grew up with technology at their fingertips from the time they could touch it, and will expect nothing less in their workplace. Gen Z is not only tech-savvy, they are highly motivated for change thinking and will quickly move into key positions with great influence over our workplaces.

Yes, the demand for faster information, revolutionary thinking, and finding how and where AI can enhance — or threaten — our workplace will dominate our organizations. And equally important on every generation’s mind are the other six priorities.

There is no question 2023 was filled with turning our organization’s energy from day-to-day survival to blazing our future path. We tiptoed through return to the workplace, fought through scarce candidate pools, and contemplated solutions to quiet quitting and disengagement.

With our sights on what to implement to stay relevant in 2024, we need to collaboratively decide where we are going to focus our resources. Now more than ever, we need to keep our doors open and ask for employee ideas, buy-in, and commitment. Fight not only to align your operational objectives, but to nurture your organizational values, welcome authenticity, and embrace a culture where collaboration across every department is encouraged and celebrated.

And when 2025 is around the corner, let’s reflect back together and ask again, how did we do? After all, what gets measured gets done.

 

Sandra Mauro is a human resource business partner at the Employers Assoc. of the NorthEast. This article first appeared on the EANE blog; eane.org

Opinion

Opinion

By Dr. Negar Beheshti

In a world where the pursuit of perfection can sometimes overshadow the significance of self-compassion, MiraVista Behavioral Health Center emphasizes the need for New Year’s resolutions that prioritize mental health and are both realistic and achievable. This approach aims to reduce the pressure often associated with traditional New Year’s resolutions and promotes a more holistic perspective on personal growth. The key themes are:

Prioritize self-care rituals. Resolve to incorporate daily self-care rituals into your routine. This could include activities like meditation, reading, taking a warm bath, or going for a nature walk.

Establish healthy boundaries. Set clear boundaries in your personal and professional life. Learn to say ‘no’ when necessary and prioritize activities that contribute positively to your well-being.

Cultivate mindfulness and presence. Make a commitment to being more present in the moment. Practice mindfulness through activities like meditation, deep-breathing exercises, or simply taking a moment to appreciate the present.

Nurture positive relationships. Focus on building and strengthening positive relationships. Invest time in meaningful connections with friends and family, fostering a support system that contributes to your emotional well-being.

Limit screen time. Reduce the time spent on electronic devices and social media. Allocate time for activities to promote mental health, such as reading, engaging in hobbies, or spending quality time with loved ones.

Practice gratitude. Start a gratitude journal and make it a habit to reflect on the positive aspects of your life. Regularly expressing gratitude can shift your focus towards positivity.

Engage in regular physical activity. Choose physical activities that you enjoy and make them a regular part of your routine. Exercise has proven benefits for mental health, releasing endorphins that can boost mood and reduce stress.

Seek professional support. Break down the stigma surrounding mental health by committing to seeking professional support when needed. Therapy or counseling can provide valuable tools for managing stress, anxiety, or other mental-health challenges.

Embrace a healthy sleep routine. Prioritize sleep by establishing a consistent sleep routine. Ensure that you are getting enough restorative sleep each night, as it plays a crucial role in mental and emotional well-being.

Learn a new skill or hobby. Engage your mind in positive and creative activities by learning a new skill or picking up a hobby. This can provide a sense of accomplishment and contribute to your overall sense of well-being.

 

Dr. Negar Beheshti is a board-certified child, adolescent, and adult psychiatrist and chief medical officer for both MiraVista and TaraVista Behavioral Health Centers.

Employment

Starting Fresh

By John S. Gannon, Esq.

 

The new year often brings new challenges to your business. But it also brings new opportunities. Picture this scenario: after months of searching, you have just recruited a person who seems like the perfect fit for a position you have been struggling to fill.

While this is certainly good news, there is more heavy lifting to be done. Employers must create and implement an effective onboarding experience that will help improve employee retention and increase job satisfaction. Here a few tips and suggestions that can create positive and effective onboarding experience for new hires.

 

Have a Plan

As with most things in the workplace, employers should have a carefully considered plan in place when it comes to onboarding new employees. This means devising an onboarding strategy aimed at ensuring new hires get the most out of the introductory period. Leaders from different departments should be included in the overall onboarding strategy to make sure important aspects of mission statements, strategic plans, and workplace culture are effectively communicated to new employees.

Remember that onboarding is more than a one or two-day orientation, and a successful onboarding plan takes a true team effort.

 

Ensure Legal Compliance

New hires also come with new legal obligations. For instance, all new employees must complete a form I-9, and employers are required to review the proper employment authorization documents to establish employee identity and authorization to work in the U.S.

Employees should also know what their compensation and benefits package will look like. And, depending on the size of the business, distribution of polices on benefits like sick time and paid family leave should be part of the onboarding process.

John Gannon

John Gannon

“Leaders from different departments should be included in the overall onboarding strategy to make sure important aspects of mission statements, strategic plans, and workplace culture are effectively communicated to new employees.”

Finally, although not legally required in Massachusetts, employers should strongly consider conducting education and training programs on preventing harassment and discrimination in the workplace. Keep in mind that this type of training may be required as part of the onboarding process if you have employees working outside Massachusetts.

 

Protect Confidential Information and Trade Secrets

Sometimes, what you don’t know can hurt you the most. Unfortunately, bringing on new employees can put businesses at risk of unwanted access to sensitive trade secrets and other confidential business information of your competitors.

For instance, suppose you bring on a new sales executive who has worked for one of your competitors for the last decade. What if that person brings spreadsheets or other documents with sensitive information about his former employer’s top accounts? If handled improperly, this could expose the new employer to legal risk for misappropriation of trade secrets and unlawful inference with business relationships. Similarly, if new employees try to recruit their former colleagues or contact former clients to drum up business in violation of anti-solicitation provisions, this could create legal risk for the new employer.

On the other hand, businesses need to take steps to protect their own confidential business information from disclosure into competitors’ hands. This can (and should) be addressed during the onboarding stage. First, new employees should be instructed in writing not to take any documents, data, or other sensitive business information with them when they leave their former employer. In addition, new employees who have access to your confidential information should be required to sign agreements confirming they will not take or otherwise misappropriate your sensitive data.

These are commonly referred to as non-disclosure agreements, or NDAs. If your employees have access to sensitive or confidential business information as part of their jobs, and you do not have up-to-date NDAs in place, consult with labor or employment counsel with experience in trade-secret protection strategies.

 

Consider Using Mandatory Dispute Resolution Agreements

In a perfect world, every employment relationship would be smooth and harmonious. However, there are times when employees and employers disagree. In most instances, these differences can be resolved through internal dialogue without resorting to outside resources, such as lawyers and court systems. But, of course, disputes do arise where internal dialogue does not produce a satisfactory result.

One way to avoid costly employment litigation when disputes cannot be resolved internally is through the use of alternate dispute resolution (ADR) agreements, which call for private mandatory mediation and/or arbitration in lieu of court.

Mandatory ADR agreements have a number of practical advantages for employers. First and foremost, mediation/arbitration is typically both less expensive and speedier than a jury trial. Alternate dispute resolution can also shield businesses from unwanted publicity associated with public lawsuits. This is because mediation and/or arbitration involve private hearings that typically do not reach media outlets.

If ADR agreements sound like they might work for your business, they definitely should be part of your onboarding plan.

 

John Gannon is a partner with the Springfield-based law firm Skoler, Abbott & Presser, specializing in employment law and regularly counseling employers on compliance with state and federal employment laws, trade-secret protection, and strategies for alternate dispute resolution; (413) 737-4753; [email protected]

Law

A Brave New Year

By Lauren C. Ostberg, Esq. and Michael McAndrew, Esq.

 

Artificial intelligence — specifically, natural-language chatbots like ChatGPT, Bard, and Watson — have been making headlines over the past year, whether it’s college writing teachers’ attempts to avoid reading machine-generated essays, the boardroom drama of OpenAI, the SAG-AFTRA strike, or existential anxiety about the singularity.

On the frivolous end of the spectrum, one of the authors of this piece used ChatGPT to find celebrity lookalikes for various attorneys at their firm, and learned that ChatGPT defaults to the assumption that, irrespective of race or gender or facial features, most people (including Lauren Ostberg) look like Ryan Reynolds. On the more serious end, the legislatures of state governments, including those in Massachusetts and Connecticut, have labored over bills that will harness, regulate, and investigate the power of AI.

Lauren Ostberg

“The legislatures of state governments, including those in Massachusetts and Connecticut, have labored over bills that will harness, regulate, and investigate the power of AI.”

In Massachusetts, for example, the Legislature is considering two bills, one (H.1873) “To Prevent Dystopian Work Environments,” and another (S.31) titled “An Act Drafted with the Help of ChatGPT to Regulate Generate Artificial Intelligence Models Like ChatGPT.” The former would require employers using any automatic decision-making system to disclose the use of such systems to their employees, and give employees the opportunity to review and correct the worker data on which those systems relied. The latter, sponsored by Hampden County’s state Sen. Adam Gomez, aims to regulate newly spawned AI models.

While the use of AI to draft S.31 is, in its own right, an interesting real-world application of AI, the use of AI in this way is not the only important part of S.31, which proposes a regulatory regime whereby “large-scale generative artificial intelligence models” are required to register with the attorney general. In doing so, AI companies would be required to disclose detailed information to the attorney general, including “a description of the large-scale generative artificial intelligence model, including its capacity, training data, intended use, design process, and methodologies.”

In addition to requiring the registration of AI companies, S.31 (if passed) would also require AI companies to implement standards to prevent plagiarism and protect information of individually identifiable information used as part of the training data. AI companies must “obtain informed consent” before using the data of individuals. To ensure compliance, the bill gives the AG enforcement powers and grants it the authority to propound regulations that are consistent with the bill.

While S.31 provides robust protections against using data garnered from citizens of the Commonwealth in programming AI models, it may fail because of the amount of disclosure required from AI companies. As part of a new and fast-moving field, AI companies may be hesitant to disclose their processes, as is required by S.31.

Michael McAndrew

Michael McAndrew

“This proposed legislation is, of course, just the beginning of government’s attempts to grapple with the ‘responsible use’ (an Orwellian term, if ever there was one) of AI and technology.”

Though commendable in its effort to protect creators and citizens, S.31 may ultimately drive AI-based businesses out of the Commonwealth if they fear that their competitively sensitive AI processes will be disclosed as part of the public registry envisioned by S.31. However, the structure of the proposed registry of AI businesses is currently unclear; only time will tell how much information will be available to the public. Time will also tell if S.31 (or H.1873, referenced above) makes it out of committee and into law.

Meanwhile, in Connecticut

This past June, Connecticut passed a law, SB-1103, that recognizes the dystopian nature of the government using AI to make decisions about the treatment of its citizens. It requires that — by, on or before Dec. 31, 2023 — Connecticut’s executive and judicial branches conduct and make available “an inventory of all their systems that employ artificial intelligence.” (That is, it asks the machinery of the state to reveal itself, in part.)

By Feb. 1, 2024, the executive and judicial branches must also conduct (and publicly disclose) an “impact assessment” to ensure that systems using AI “will not result in unlawful discrimination or a disparate impact against specified individuals.” ChatGPT’s presumption, noted above, that every person is a symmetrically faced white man would be much more serious in the context of an automated decision-making system that impacts the property, liberty, and quality of life of Connecticut residents.

This proposed legislation is, of course, just the beginning of government’s attempts to grapple with the ‘responsible use’ (an Orwellian term, if ever there was one) of AI and technology. Massachusetts has proposed the creation of a commission to address the executive branch’s use of automated decision making; Connecticut’s new law has mandated a working group to consider an ‘AI Bill of Rights’ modeled after a federal blueprint for the same. The results — and the inventory, and the assessments — remain to be seen in the new year.

 

Lauren C. Ostberg is a partner, and Michael McAndrew an associate, at Bulkley Richardson, the largest law firm in Western Mass. Ostberg, a key member of the firm’s intellectual property and technology group, co-chairs the firm’s cybersecurity practice. McAndrew is a commercial litigator who seeks to understand the implications and risks of businesses adopting AI.

Law

Dispelling Medicaid Myths

By Hyman G. Darling, Esq.

 

It seems like every day a client tells me they are going to protect their assets from long-term care expenses by making a gift of $10,000 to their children. If this writer got paid every time a client misspoke about this rule, he quite possibly could be retired.

First of all, the amount a person can gift to a child or another person on an annual basis is $17,000 per year without having to file a gift tax return. ($18,000 in 2024). Any amount over this annual amount will require a gift-tax return to be filed, but at the current time, the exclusion of the gifts is $12.92 million ($13.61 million in 2024). Therefore, most people should not be concerned about limiting a gift to $18,000.

Hyman Darling

Hyman Darling

“If the person has an interest is protecting assets from long-term care expenses, they can make gifts five years prior to needing care, give a child a remainder interest in a house, create an irrevocable trust (also a five-year lookback), or purchase a long-term care policy or hybrid policy.”

Again, this is only a tax rule, not a Medicaid rule. Any amount that is given to a person triggers a five-year waiting period, which means basically that the amount of the gift, whether it is $5 or $500,000, carries with it a five-year look-back. The donor will not be qualified for Medicaid benefits until either the five years is lapsed or all of the funds transferred are utilized for the benefit of the donor. There is no threshold for a de minimis amount that may be given without triggering the look-back. Some states even question and disqualify Christmas, anniversary, and birthday gifts.

Here is a relatively short list of permissible expenditures that do not normally disqualify a person for Medicaid eligibility, although these amounts may vary from state to state:

• $2,000 personal-needs account;

• Pre-paid burial account;

• $1,500 burial account earmarked specifically for funeral and related expenses;

• Purchase of any necessary medical equipment;

• Payment of expenses of a home while a person is living there;

• A home while the person is living in it (with a limit on equity in some states);

• Personal belongings and household goods; or

• One car.

All other assets, including jointly owned bank accounts, CDs, retirement plans, revocable trusts, second cars, second residences, value of life insurance, U.S. savings bonds, etc., are countable and will have to be spent on a person’s long-term care. Unless a person (usually a child) can prove that they contributed to the parent’s accounts, these assets are not protected as the account will be deemed to be owned 100% by the parent, and thus counted as long-term care assets.

Of course, there are many exceptions to the rules, such as having a minor child, a disabled child, or a child who is blind.

If the person has an interest is protecting assets from long-term care expenses, they can make gifts five years prior to needing care, give a child a remainder interest in a house, create an irrevocable trust (also a five-year lookback), or purchase a long-term care policy or hybrid policy. If a person is not interested in these options, then the decision is to take their chances and hope they are never institutionalized.

While this article is repetitive of prior articles, hopefully the annual exclusion rule for taxes will be understood by more people so that the misinformation will not continue to be spread. There is no substitute for good legal advice from a qualified elder-law attorney when considering any Medicaid or tax-planning strategy or transfer.

 

Hyman Darling, a shareholder at Bacon Wilson and chair of the firm’s estate-planning and elder-law department, is recognized as the area’s preeminent estate planner, with extensive experience with all aspects of estate planning, trusts, tax law, probate and estates, guardianships, special-needs trusts and planning, elder law, and long-term care planning, and additional specialties including adoption and real estate; (413) 781-0560.

Healthcare News Special Coverage

Bridging the Gap

By Emily Thurlow

With classic Christmas carols softly emanating from a TV across the room and an Irish wolfhound named Veren panting rhythmically a short distance behind her, Barbara Chiampa pedaled a stationary bicycle on a recent afternoon at Mont Marie Rehabilitation & Healthcare Center’s therapy gym.

With guidance from Reliant Rehabilitation physical therapy assistant Tara McCauley, Chiampa was working on improving her balance and walking. After noting improvement in her gait and movement with a handheld assist, Chiampa paused for a few kisses from Veren, a 2-year-old therapy dog.

The staff at the Holyoke facility benefits from the canine too, said his handler, registered occupational therapist Sylvia Korza of Reliant Rehabilitation. “He comes to work with me, and he loves everybody. He’s great for therapy — even the staff. He helps lift everyone’s mood.”

The gym, which was expanded in 2016, features several pieces of equipment dedicated to improving mobility, including parallel bars and practice stairs. Beyond the machines, the therapy gym offers opportunities for McCauley and Korza to customize regimens that are tailored to the specific needs of patients recovering from medical procedures, injuries, or illnesses.

The therapy offered at the center’s gym is one of multiple subacute rehabilitation care services offered at the 84-bed Mont Marie facility, which was built in 1962 and formerly owned and operated by the Congregation of the Sisters of St. Joseph. In 2014, Mont Marie was purchased by Tryko Partners, which is headquartered in New Jersey, and is managed by its healthcare subsidiary, Marquis Health Consulting Services. Mont Marie is one of 10 of Marquis’ facilities in Massachusetts.

In recent years, the licensed nursing facility’s short-term rehabilitation care services have continued to grow, adding new programs and certifications, to meet the growing needs of the community.

A need for subacute or short-term rehabilitative care can emerge after a hospital stay for hip surgery or a stroke, or if an individual needs some physical strengthening or medication management, said Natasha Pieciak, administrator at Mont Marie.

“Baby Boomers are getting older, so as the population ages, there’s more of a demand for supportive services. We’re not a hospital — we’re kind of like a step down; we’re supportive services to bridge that gap between home-care services and the hospital.”

Initially, the 26-bed first floor was dedicated to this service, but it has since expanded to the 29-bed second floor as well. At times, admissions have jumped as high as 50 per month.

“There are a lot of factors that influence this growth,” said Pieciak, who has served as administrator of the center since September 2022. “Baby Boomers are getting older, so as the population ages, there’s more of a demand for supportive services. We’re not a hospital — we’re kind of like a step down; we’re supportive services to bridge that gap between home-care services and the hospital.

“With the aging population, I think these services become more needed out in the community, so we’re here to support people in that way, so they can be successful at home. People want to be at home, so we’re really here to try to support them to get them ready to do that.”

Barbara Chiampa

Barbara Chiampa pedals an exercise bicycle at Mont Marie Rehabilitation & Healthcare Center in Holyoke.

Through Mont Marie’s partnerships with Baystate Medical Center in Springfield and Holyoke Medical Center, as well as referrals from Mercy Medical Center in Springfield and Cooley Dickinson Hospital in Northampton, Pieciak said Mont Marie has been made aware of the growing demand for these rehabilitative services.

“We work closely with our partners within the hospital systems; we collaborate,” she said. “With Baystate, for example, we have weekly calls with their accountable-care organization management team, who will follow a patient from hospital to home, and we communicate with them, and they tell us what they’re seeing, what their needs are. We’re just really building that relationship and working with them to help identify and meet the needs that we’re seeing out in the community.”

“The goal of these specialty programs is to educate and train the residents how to manage and live with their conditions.”

In working with Baystate, Pieciak said Mont Marie has become one of two skilled-nursing facilities that have qualified for a waiver for the three-day requirement under the Medicare Shared Savings Program. The waiver eliminates the requirement to have a three-day inpatient hospital stay prior to a Medicare-covered, post-hospital, extended-care service.

What this means, Pieciak explained, is that, if a patient is in a hospital emergency department but don’t have a three-day stay, instead of going back home and potentially falling or fracturing a hip, they could go to Mont Marie as long as they meet a skilled need.

“This is huge because there’s a gap there,” she said. “Residents would go home and could potentially have worse outcomes. What we’re doing is bridging that gap from hospital to home.”

In addition to physical and occupational therapies, Mont Marie’s subacute rehab offers speech therapy up to seven days a week.

 

Life Goals

Within its major focus on subacute rehabilitation care, Mont Marie offers three specialty programs: cardiopulmonary, chronic kidney disease management, and heart failure.

“The goal of these specialty programs is to educate and train the residents how to manage and live with their conditions,” Pieciak said.

Natasha Pieciak

Natasha Pieciak says Mont Marie works closely with its partners within hospital systems.

The cardiopulmonary rehabilitation program is physician-led under the direction of a pulmonologist and focuses on helping patients achieve the most active life possible despite any physical limitations and/or cardiopulmonary diagnoses. The program, which is geared toward individuals with diagnoses of chronic obstructive pulmonary disease (COPD), post-lung transplants, emphysema, and acute respiratory failure, offers access to lab and radiology services, tracheostomy care and management, nebulizer therapies, bladder scanning, and several oxygen therapies, including liquid nitrogen.

The renal program is focused on reducing symptoms of chronic kidney disease, increasing a patient’s quality of life, and promoting independence. Mont Marie offers onsite dialysis provided by American Renal Associates, consultative visits by staff nephrologists, diabetic management and education, a monthly support group, and health coaching.

In October, Mont Marie received its skilled-nursing facility heart-failure certification from the American Heart Assoc. (AHA). In order to be considered eligible for this certification, facilities must be located in the U.S. or a U.S. territory and implement a heart-failure program that uses a standardized method of delivering clinical care based on current evidence-based guidelines.

“This was a huge accomplishment,” Pieciak said. “There are very few facilities that are credentialed. The American Heart Association has armed us with innovative methods and additional tools so that we can be trailblazers and give our heart-failure patients the best care.”

The vetting provides an evidence-based framework for evaluating skilled-nursing facilities against the AHA’s science-based requirements for heart failure patients, including care coordination, clinical management, quality improvement, program management, and patient and caregiver education and support.

According to the AHA, nearly one in four heart failure patients are readmitted within 30 days of discharge, and approximately half are readmitted within six months. It has also been suggested that about 25% of readmissions may be preventable.

“We’re trying to get ahead of hospital readmissions,” said Raymonda Sample, the lead for the heart-failure program and unit manager.

With the certification, Mont Marie has been provided with access to centers on treating heart failure and its co-morbidities.

Sample noted that one of the biggest benefits to the staff’s education on the heart-failure program is being able to educate patients on how they can live more independently with fewer flareups of their disease.

To that end, Mont Marie uses what’s called a ‘zone tool.’ The traffic-light color-coded guide indicates an all-clear, or green, when a patient has no shortness of breath; chest pain; swelling of the feet, ankles, legs, or stomach; or weight gain of more than two pounds. It’s time to call a doctor if a patient is in the so-called warning (yellow) zone, when they’re experiencing dizziness; dry, hacking cough; more shortness of breath; uneasy feelings; no energy; difficulty breathing when lying down; swelling of the feet, ankles, legs, or stomach; or weight gain of three or more pounds in one day or five pounds in one week.

A medical alert, or red zone, is when the previous symptoms have been exacerbated and a patient is having a hard time breathing or is experiencing unrelieved shortness of breath while sitting still, chest pain, or confusion.

In addition to this tool, Sample has created an entire guide board for staff that she also uses to educate family members of patients. The tool helps provide a better continuity of care, she explained.

“With this education, we are able to identify how the patient is feeling for the day,” she said. “If say, the patient is in the middle of therapy and they’re feeling short of breath, or telling the therapist maybe they haven’t eaten much in the last couple of days, or not sleeping well — there’s a sort of board out there where you can see the different signs and symptoms of heart failure.”

 

Safe at Home

Even though a patient has a plan in place to be discharged from the facility following treatment at Mont Marie, care doesn’t end at the door.

“When we discharge patients, we do follow-up calls with the patient just to find out how the transition back home goes, the home care services … we make sure they’re seen by their primary-care physician within 10 days, and if they don’t have a scale, we make sure we send them home with one,” Sample said. “This is so both our patients and the staff recognize the signs and symptoms of heart failure, so we can try to avoid rehospitalization.”

Law Special Coverage

Guilty by Association

By Trevor Brice, Esq.

Under the Americans with Disabilities Act (ADA), employers are required to provide reasonable accommodations to qualified individuals with disabilities who are employees or applicants for employment. However, the ADA does not require an employer to assist — or in other words, accommodate — a person without a disability due to that person’s association with someone with a disability.

Still, an employer cannot discriminate against an employee or applicant because of that person’s association with someone with a disability. This is what is called ‘associational discrimination,’ which, in the below case, was due to another’s disability under the ADA.

On Sept. 19, 2023, the U.S. Equal Employment Opportunity Commission (EEOC), announced that it had sued a private school for associational discrimination under the ADA. According to the EEOC’s announcement, the school allegedly discriminated against one of its teachers by refusing to renew her contract over her daughter’s disability.

Trevor Brice

Trevor Brice

“An employer cannot discriminate against an employee or applicant because of that person’s association with someone with a disability. This is what is called ‘associational discrimination.’”

This was “precisely the kind of conduct the ADA’s associational-discrimination provision was intended to prohibit,” said Rosemarie Rhodes, EEOC’s Baltimore Field Office director. On Dec. 15, the EEOC announced that the matter had been settled for just over $85,000 by the private school, with the school to pay $50,858 in back pay, $4,428 in interest on the back pay, and $30,000 in non-wage damages.

This settlement brings associational-discrimination enforcement into the limelight and presents more scenarios for employers to look out for and train their employees on for the new year.

 

Associational Discrimination and the ADA

Associational discrimination based on another’s disability requires “that (1) the employee was qualified for the job at the time of the adverse employment action, (2) that the employee was subjected to an adverse employment action, (3) that the employer knew at the time of the adverse employment action that the employee had a relative or associate with a disability, and (4) that the adverse employment action occurred under circumstances raising a reasonable inference that the disability of the relative or associate was a determining factor in the employer’s decision” (Carey v. AB Car Rental Servs. Inc.).

The EEOC, in its announcement, stated that the school was aware of the teacher’s daughter’s disability and that it decided to not renew the teacher’s contract because it assumed (without investigation, or even asking the teacher) that her daughter’s disability, coupled with the COVID-19 pandemic, would undermine the teacher’s focus and commitment to her job. The school instead decided to renew the contracts of other teachers who had less experience and tenure than the teacher whose daughter had a disability.

In its complaint, the EEOC pleaded the requirements of an associational-discrimination claim based on disability through the circumstances described in its announcement. The teacher performed her job satisfactorily, according to the EEOC, making her qualified for the job at the time the private school refused to renew her contract. In order to not be qualified for her job, the school would have had to demonstrate the teacher had performance deficiencies or otherwise could not perform the essential functions of her job.

Further, the private school subjected the teacher to an adverse employment action by not renewing her employment contract. An adverse employment action can be any action by an employer that takes away a benefit of an employee’s employment, e.g. taking away a company car, suspension from employment, termination, etc.

“Without both knowledge and a reasonable inference, associational discrimination will most likely be unactionable. Nevertheless, it is important to stress to employees that discrimination and harassment based on protected class is prohibited, no matter the circumstance.”

Finally, the EEOC pleaded that the private school knew of the teacher’s daughter’s disability and allegedly specifically cited that reason for not renewing the teacher’s contract, making for the reasonable inference that the teacher’s daughter’s disability was a determining factor in its decision. As such, the EEOC met its burden for pleading its case of associational discrimination based on disability, which most likely prompted the private school to settle the claims.

 

Pitfalls of Associational Discrimination

As shown by the EEOC’s enforcement action, associational-discrimination claims are actionable claims that can cost employers a substantial amount of money. The pitfalls of these claims are that they are not the easiest to catch. For example, it is comparatively easier to catch when there is direct discrimination (e.g. a racial remark, comment against a disability) than to read into the subtext of a conversation that is deprecating to an associate of an employee who is part of a protected class.

However, there are ways to teach this kind of discrimination and harassment to frontline employees and make them aware enough of an associational-discrimination or harassment issue to report it.

First, employees should be aware that discrimination or harassment based on protected class (e.g. race, religion, sexual orientation, ethnicity, gender, etc.) is prohibited. Along these lines, it is equally prohibited to discriminate or harass another employee based on the protected characteristics of someone with whom the employee associates. For example, it is illegal to use the knowledge that an employee has Jewish friends to discriminate against that employee and subject him to adverse employment actions based on that knowledge.

Second, it is important to stress that it is the knowledge of the employee’s associates’ protected classes that makes associational discrimination actionable. An offhand comment by an employee that happens to relate to an employee’s associates’ or relatives’ protected class will not necessarily implicate associational discrimination, but making the same comment and directly referencing the associate or relative and their protected class will make for this implication. In this sense, if it is discriminatory or harassing to the associate or relative, it will most likely be discriminatory or harassing to the employee.

If cornerstones of associational discrimination like these are taught and enforced, it will be less likely that an employer will be subject to the same fate as the above-referenced private school.

 

Takeaways

Associational discrimination can raise its head in a variety of circumstances, including the contract-renewal scenario above; hiring, termination, and other employment decisions; as well as discriminatory and harassing behaviors from employees.

Though it is more difficult to catch than scenarios in which discrimination or harassment based on protected class is direct, the pivotal elements of associational discrimination are knowledge of the associates’ or relatives’ protected class and the reasonable inference that the knowledge was a determining factor in the adverse employment decision. Without both knowledge and a reasonable inference, associational discrimination will most likely be unactionable. Nevertheless, it is important to stress to employees that discrimination and harassment based on protected class is prohibited, no matter the circumstance.

Further, a related claim to associational discrimination is a retaliation claim for reporting discrimination or harassment perpetrated against another employee. In this scenario, an employee reports that another employee is being discriminated against because of their protected class, and then the reporting employee is subjected to an adverse employment action. This kind of ‘associational’ activity by employees is protected, and an employer can be subjected to legal action if the report is not handled properly.

As associational discrimination and related retaliation can be difficult to detect, it is prudent to contact legal counsel in order to avoid any potential liability and train staff to recognize and report associational-discrimination scenarios.

 

Trevor Brice is an attorney who specializes in labor and employment-law matters at the Royal Law Firm LLP, a woman-owned, women-managed corporate law firm that is certified as a women’s business enterprise with the Massachusetts Supplier Diversity Office, the National Assoc. of Minority and Women Owned Law Firms, and the Women’s Business Enterprise National Council.

Opinion

Opinion

By Ben Brubeck

 

The Biden administration’s final rule, “Federal Acquisition Regulation: Use of Project Labor Agreements for Federal Construction Projects,” implements Executive Order 14063, which requires federal construction contracts of $35 million or more to be subject to controversial project labor agreements (PLAs).

The Biden administration’s burdensome, inflationary, and anti-competitive PLA mandate rule will needlessly raise costs on taxpayer-funded construction projects and steer contracts to unionized contractors and workers. Absent a successful legal challenge, this executive overreach will reward powerful special interests with government construction contracts at the expense of taxpayers and the principles of free enterprise and fair and open competition in government procurement.

When mandated by governments, PLAs increase construction costs to taxpayers by 12% to 20%, reduce opportunities for qualified contractors and their skilled craft professionals, and exacerbate the construction industry’s worker shortage of more than a half-million people in 2023.

Associated Builders and Contractors (ABC) will continue to fight on behalf of quality, experienced contractors harmed by this rule and the 88.3% of America’s construction industry who have made the choice not to belong to a union and want a fair opportunity to participate in federal construction projects, but cannot do so because of PLA schemes.

In addition, ABC condemns Biden administration policies independent of this rulemaking that push PLAs on competitive grant programs administered by federal agencies, affecting nearly $260 billion worth of federally assisted infrastructure projects procured by state and local governments, as well as schemes by the Biden administration to coerce private developers of hundreds of billions of dollars’ worth of clean energy and domestic microchip manufacturing projects to mandate PLAs. Biden’s PLA policies circumvent congressional intent as none of these policies were passed in funding legislation.

Some background: on Aug. 19, 2022, the Federal Acquisition Regulatory Council issued its proposed rule implementing Executive Order 14063. In October 2022, ABC submitted more than 40 pages of comments to the Federal Acquisition Regulatory Council, calling on the Biden administration to withdraw its controversial proposed rule.

ABC’s opposition was shared by more than 50 members of the U.S. Senate and U.S. House of Representatives, 19 Republican governors, and a diverse coalition of construction-industry, small-business, and taxpayer advocates urging the administration to withdraw its proposal and additional policies promoting PLA mandates on federal and federally assisted construction projects.

At least 8,000 stakeholders across the country — including 2,500 ABC member contractors — submitted comments opposed to this proposed rule during the 60-day comment period. In a September 2022 survey of ABC contractor members, 98% opposed this proposed rule, and 97% said a construction contract that required a PLA would be more expensive compared to a contract procured via fair and open competition.

ABC plans to challenge this Biden administration scheme in the courts on behalf of taxpayers and the majority of the construction industry. In the interim, ABC will continue to oppose its special-interest-favoring policy using all tools in our advocacy and legal toolbox while educating stakeholders about the negative impact of government-mandated PLAs on federal and federally assisted projects.

 

Ben Brubeck is vice president of Regulatory, Labor, and State Affairs at Associated Builders and Contractors.

Accounting and Tax Planning

Setting the Course

By Barbara Trombley, CPA, MBA

 

As we usher in the new year, it is an opportune time to make financial resolutions that will secure your financial future. Whether you are new to investing and personal financial planning or you are approaching retirement and contemplating estate planning, here are some tips for making the most of your financial life in 2024.

“Peace of mind comes with knowing you can cover unexpected expenses in the case of emergency or job loss.”

Build or Enhance Your Emergency Fund

In an era marked by economic uncertainty, we all need a robust emergency fund. This means having three to six months of living expenses in a money market or high-yield savings account. Peace of mind comes with knowing you can cover unexpected expenses in the case of emergency or job loss.

 

Pay Down Debt

In today’s world of high interest rates, it is imperative to not carry ‘bad debt.’ What is bad debt? Credit cards, personal loans, and some car loans are all examples. The interest on some of these debt instruments can be financially crippling. Come up with a plan to tackle the debt sooner rather than later.

 

Review Your Credit Report and Credit Score

Federal law gives you the right to get a free copy of your credit report every 12 months from the three nationwide credit bureaus. To get the free credit report, go to annualcreditreport.com. Review for any inaccuracies and report them right away. Make a plan to increase your score, if needed, by making timely payments and attacking outstanding debt. A strong credit score is the key to favorable interest rates when financing a house, car, or other business opportunities.

 

Meet Your Match

Many companies offer a match in contributions to retirement plans. There is a reason this is called ‘free money.’ You do not have to earn the money. You need to contribute enough to get the match that the company provides. Most companies match 50% or 100% of your contribution, up to a certain percentage.

 

Increase Your Retirement Contributions

Beyond just getting a match, you should increase your retirement-plan contributions each year and certainly when receiving any type of raise or bonus. The 2024 contribution limit for 401(k), 403(b), and most 457 plans is increased to $23,000, up from $22,500. The catch-up contribution for those turning 55 or older in 2024 is $7,500. The limit on annual contributions to an IRA plan will increase to $7,000, up from $6,500. If you are over 55, the limit is $8,000.

Also consider whether a Roth 401(k) or IRA is a good option for you. You need to weigh whether it is more advantageous to pay taxes now or later on to the contributions to your retirement accounts. Having both a traditional retirement account and a Roth retirement account may give you the tax flexibility that you need in retirement.

 

Review Social Security

Social Security makes up the bulk of many Americans’ retirement income. Do you know how much you will get at full retirement age? Do you know that you receive about 30% less if you take your social security payment at age 62? Do you know that you can wait until age 70 to begin your payments and realize a significant pay increase of 8% for each year that you wait? Be cognizant of how much you can anticipate receiving in retirement and how much your spouse will receive. Work with a financial planner to strategize the possibility of staggering claiming ages to reach your retirement goals.

 

Do a Pension Calculation

About 20% of Americans receive a pension. This is a stream of payments that come each month in retirement. Do the research now to calculate at what age your pension will be maximized. Also, find out what options you may have in retirement to provide for a spouse. There also may be the ability to consider a lump-sum payment in lieu of monthly payments. Knowing all your options will allow you to calculate how much additional money you may need to save to have an enjoyable retirement.

 

Consult a Financial Planner

It is never too early or too late to see if you are on track for retirement. A good financial planner is a trained professional in the field and can assist you in setting and achieving your financial goals. A financial planner can also evaluate your investment options and suggest suitable investments for your risk profile. Many planners will also help optimize your tax strategy and possibly save you money in the long run.

 

Barbara Trombley is a financial planner with Wilbraham-based Trombley Associates Investment and Retirement Planning. Securities offered through LPL Financial. Member FINRA/SIPC. Advisory services offered through Trombley Associates, a registered investment advisor and separate entity from LPL Financial. This material was created for educational and informational purposes only and is not intended as ERISA tax, legal, or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Accounting and Tax Planning Special Coverage Wealth Management

Planning Is Key

By Kristina D. Houghton, CPA

 

Surprisingly, 2023 was a year with no tax-law changes. Congressional members of both parties introduced major tax policy legislation, but so far, most of those bills were partisan. For Congress to pass tax legislation, it will need to be the product of bipartisan compromise. Any tax-policy legislation should also adhere to core values of fostering domestic economic growth, providing support for workers and their families, and prioritizing fiscal responsibility.

Despite the lack of legislation, year-end is still the optimal time for tax planning. But you must be careful to avoid potential pitfalls along the way.

We have prepared the following 2023 year-end tax article divided into three sections:

• Individual Tax Planning;

• Business Tax Planning; and

• Financial Tax Planning.

Be aware that the concepts discussed in this article are intended to provide only a general overview of year-end tax planning. It is recommended that you review your personal situation with a tax professional.

“If you come out ahead by itemizing, you may want to accelerate certain deductible expenses into 2023.”

INDIVIDUAL TAX PLANNING

Itemized Deductions

When you file your personal 2023 tax return, you must choose between the standard deduction and itemized deductions. The standard deduction for 2023 is $13,850 for single filers and $27,700 for joint filers. (An additional $1,850 standard deduction is allowed for a taxpayer age 65 or older.)

YEAR-END MOVE: If you come out ahead by itemizing, you may want to accelerate certain deductible expenses into 2023. For example, consider the following possibilities:

• Donate cash or property to a qualified charitable organization.

• Pay deductible mortgage interest if it otherwise makes sense for your situation. Currently, this includes interest on acquisition debt of up to $750,000 for your principal residence and one other home, combined.

• Make state and local tax (SALT) payments up to the annual SALT deduction limit of $10,000.

 

Charitable Donations

The tax law allows you to deduct charitable donations within generous limits if you meet certain record-keeping requirements.

YEAR-END MOVE: Step up charitable gift giving before Jan. 1. As long as you make a donation in 2023, it is deductible in 2023, even if you charge it in 2023 and pay it in 2024.

• If you make monetary contributions, your deduction is limited to 60% of your adjusted gross income (AGI). Any excess above the 60%-of-AGI limit may be carried over for up to five years.

• If you donate appreciated property held longer than one year (i.e., it would qualify for long-term capital-gain treatment if sold), you can generally deduct an amount equal to the property’s fair market value (FMV) on the donation date, up to 30% of your AGI. But the deduction for short-term capital-gain property is limited to your initial cost.

 

Higher-education Credits

The tax law provides tax breaks to parents of children in college, subject to certain limits. This often includes a choice between one of two higher-education credits.

YEAR-END MOVE: When appropriate, pay qualified expenses for next semester by the end of this year. Generally, the costs will be eligible for a credit in 2023, even if the semester does not begin until 2024.

Typically, you can claim either the American Opportunity Tax Credit (AOTC) or the Lifetime Learning Credit (LLC), but not both. The maximum AOTC of $2,500 is available for qualified expenses for four years of study for each student, while the maximum $2,000 LLC is claimed on a per-family basis for all years of study. Thus, the AOTC is usually preferable to the LLC.

Both credits are phased out based on your modified adjusted gross income (MAGI). The phase-out for each credit occurs between $80,000 and $90,000 of MAGI for single filers and between $160,000 and $180,000 of MAGI for joint filers.

TIP: The list of qualified expenses includes tuition, books, fees, equipment, computers, etc., but not room and board.

 

Miscellaneous

• Install energy-saving devices at home that result in either of two residential credits. For example, you may be able to claim a credit for installing solar panels. Generally, each credit equals 30% of the cost of qualified expenses, subject to certain limits.

• Avoid an estimated tax penalty by qualifying for a safe-harbor exception. Generally, a penalty will not be imposed if you pay 90% of your current year’s tax liability or 100% of your prior year’s tax liability (110% if your AGI exceeded $150,000).

• Empty out flexible spending accounts for healthcare or dependent-care expenses if you will forfeit unused funds under the ‘use it or lose it’ rule. However, your employer’s plan may provide a carry-over to 2024 of up to $610 of unused funds or a two-and-a-half-month grace period.

 

BUSINESS TAX PLANNING

Depreciation-based Deductions

As the year draws to a close, a business may benefit from one or more of three depreciation-based tax breaks: the Section 179 deduction, first-year ‘bonus’ depreciation, and regular depreciation.

YEAR-END MOVE: Place qualified property in service before the end of the year. If your business does not start using the property before 2024, it is not eligible for these tax breaks.

Section 179 deduction: Under Section 179 of the tax code, a business may currently deduct the cost of qualified property placed in service during the year. The maximum annual deduction for 2023 is $1.16 million, provided your total purchases of property do not exceed $2.89 million.

Be aware that the Section 179 deduction cannot exceed the taxable income from all your business activities this year. This rule could limit your deduction for 2023.

First-year bonus depreciation: The first-year bonus depreciation applicable percentage for 2023 is 80% and is scheduled to drop to 60% in 2024.

 

Qualified Retirement Plans

The new SECURE 2.0 law includes a number of provisions affecting employers with qualified retirement plans.

YEAR-END MOVE: Position your business to maximize available tax benefits and avoid potential problems. Consider the following key changes of particular interest:

• For 401(k) plans adopted after 2024, an employer must provide automatic enrollment to employees. Certain small companies and startups are exempt.

• Beginning in 2023, employers with 50 or fewer employees can qualify for a credit equal to 100% of their contributions to a new retirement plan, up to $1,000 per employee, phased out over five years. The 100% credit is reduced for a business with 51 to 100 employees. This tax break is in addition to an enhanced credit for plan startup costs.

• Beginning in 2024, employers may automatically provide employees with emergency access to accounts of up to 3% of their salary, capped at $2,500.

• Beginning in 2024, an employer may elect to make matching contributions to an employee’s retirement-plan account based on student-loan obligations.

• The new law shortens the eligibility requirement for part-time workers from three years to two years, beginning in 2023, among other modifications.

• Any catch-up contributions to 401(k) plans must be made to Roth-type accounts for employees earning more than $145,000 a year (indexed for inflation).

TIP: This last provision was initially scheduled to take effect in 2024, but a new IRS ruling just delayed it for two years to 2026.

 

Employee Bonuses

Generally, employee bonuses are deductible in the year that they are paid. For instance, you must dole out bonuses before Jan. 1, 2024 to deduct those bonuses on your company’s 2023 return. However, there’s a special rule for accrual-basis companies. In this case, the bonuses are currently deductible if they are paid within two and a half months of the close of the tax year.

YEAR-END MOVE: If your company qualifies, determine bonus amounts before year-end. As a result, the bonuses can be deducted on the company’s 2023 return as long as they are paid by March 15, 2024. Keep detailed corporate minutes to support the deductions.

This special deduction rule does not apply to bonuses paid to majority shareholders of a C-corporation or certain owners of an S-corporation or a personal-service corporation.

TIP: Note that the bonuses are taxable to employees in the year in which they receive them — 2024. Thus, the employees benefit from tax deferral for a year even if the company claims a current deduction.

 

Miscellaneous

• Stock the shelves with routine supplies (especially if they are in high demand). If you buy the supplies in 2023, they are deductible this year even if they are not used until 2024.

• Maximize the qualified business interest deduction for pass-through entities and self-employed individuals. Note that special rules apply if you are in a ‘specified service trade or business.’ See your professional tax advisor for more details.

• If you buy a heavy-duty SUV or van for business, you may claim a first-year Section 179 deduction of up to $28,900. The luxury-car limits do not apply to certain heavy-duty vehicles.

 

FINANCIAL TAX PLANNING

Securities Sales

Traditionally, investors time sales of assets like securities at year-end to maximize tax advantages. For starters, capital gains and losses offset each other. If you show an excess loss for the year, you can then offset up to $3,000 of ordinary income before any remainder is carried over to the next year. Long-term capital gains from sales of securities owned longer than one year are taxed at a maximum rate of 15%, or 20% for high-income investors. Conversely, short-term capital gains are taxed at ordinary income rates reaching as high as 37% in 2023.

YEAR-END MOVE: Review your portfolio. Depending on your situation, you may want to harvest capital losses to offset gains, especially high-taxed short-term gains, or realize capital gains that will be partially or wholly absorbed by losses.

Be aware of even more favorable tax treatment for certain long-term capital gains. Notably, a 0% rate applies to taxpayers below certain income levels, such as young children. Furthermore, some taxpayers who ultimately pay ordinary income tax at higher rates due to their investments may qualify for the 0% tax rate on a portion of their long-term capital gains.

However, watch out for the ‘wash sale rule.’ If you sell securities at a loss and reacquire substantially identical securities within 30 days of the sale, the tax loss is disallowed. A simple way to avoid this adverse result is to wait at least 31 days to reacquire substantially identical securities.

Note that a disallowed loss increases your basis for the securities you acquire and could reduce taxable gain on a future sale.

 

Net Investment Income Tax

When you review your portfolio, do not forget to account for the 3.8% net investment income tax, which applies to the lesser of net investment income (NII) or the amount by which MAGI for the year exceeds $200,000 for single filers or $250,000 for joint filers. (These thresholds are not indexed for inflation.)

The definition of NII includes interest, dividends, capital gains, and income from passive activities, but not Social Security benefits, tax-exempt interest, and distributions from qualified retirement plans and IRAs.

You may consider investing in municipal bonds (‘munis’). The interest income generated by munis does not count as NII, nor is it included in the MAGI calculation. Similarly, if you turn a passive activity into an active business, the resulting income may be exempt from the NII tax.

TIP: When you add the NII tax to your regular tax, you could be paying an effective 40.8% tax rate at the federal level alone. Factor this into your investment decisions.

 

Required Minimum Distributions

For starters, you must begin ‘required minimum distributions’ (RMDs) from qualified retirement plans and IRAs after reaching a specified age. After the SECURE Act raised the age threshold from 70½ to 72, SECURE 2.0 bumped it up again to 73 beginning in 2023 (scheduled to increase to 75 in 2033). The amount of the RMD is based on IRS life-expectancy tables and your account balance at the end of last year.

YEAR-END MOVE: Assess your obligations. If you can postpone RMDs still longer, you can continue to benefit from tax-deferred growth. Otherwise, make arrangements to receive RMDs before Jan. 1, 2024 to avoid any penalties.

Conversely, if you are still working and do not own 5% or more of a business with a qualified plan, you can postpone RMDs from that plan until your retirement. This ‘still-working exception’ does not apply to RMDs from IRAs or qualified plans of other employers.

Previously, the penalty for failing to take timely RMDs was equal to 50% of the shortfall. SECURE 2.0 reduces it to 25% beginning in 2023 (10% if corrected in a timely fashion).

TIP: Under the initial SECURE Act, you are generally required to take RMDs from recently inherited accounts over a 10-year period (although previous inheritances are exempted). These rules are complex, so consult with your tax advisor regarding your situation.

 

Estate and Gift Taxes

During the last decade, the unified estate- and gift-tax exclusion has gradually increased, while the top estate rate has not budged. For example, the exclusion for 2023 is $12.92 million, the highest it has ever been. (It is scheduled to revert to $5 million, plus inflation indexing, after 2025.)

YEAR-END MOVE: Reflect this generous tax-law provision in your overall estate plan. For instance, your plan may involve various techniques, including bypass trusts, that maximize the benefits of the estate- and gift-tax exemption.

In addition, you can give gifts to family members that qualify for the annual gift-tax exclusion. For 2023, there is no gift-tax liability on gifts of up to $17,000 per recipient (up from $16,000 in 2022). You do not even have to file a gift-tax return. Moreover, the limit is doubled to $34,000 for joint gifts by a married couple, but a gift-tax return is required in that case.

TIP: You may ‘double up’ again by giving gifts in both December and January that qualify for the annual gift-tax exclusion for 2023 and 2024, respectively.

 

Miscellaneous

• Contribute up to $22,500 to a 401(k) in 2023 ($30,000 if you are age 50 or older). If you clear the 2023 Social Security wage base of $160,200 and promptly allocate the payroll tax savings to a 401(k), you can increase your deferral without any further reduction in your take-home pay. Note that SECURE 2.0 further enhances catch-up contributions for older employees after 2023.

• If you rent out your vacation home, keep your personal use within the tax-law boundaries. No loss is allowed if personal use exceeds the greater of 14 days or 10% of the rental period.

• Consider a qualified charitable distribution (QCD). If you are age 70½ or older, you can transfer up to $100,000 of IRA funds directly to charity, free of tax (but not deductible). SECURE 2.0 authorizes a one-time transfer of up to $50,000 to a charitable remainder trust or charitable gift annuity as part of a QCD.

 

CONCLUSION

This year-end tax-planning article is based on the prevailing federal tax laws, rules, and regulations. Of course, it is subject to change, especially if additional tax legislation is enacted by Congress before the end of the year.

Finally, remember that this article is intended to serve only as a general guideline. Your personal circumstances will likely require careful examination.

 

Kristina D. Houghton, CPA is a partner at the Holyoke-based accounting firm Meyers Brothers Kalicka, P.C.

 

Opinion

Opinion

By Henry Howard

 

There is nothing minor about the support the American Legion Department of Massachusetts receives from the Springfield Thunderbirds.

For years the Thunderbirds have supported Massachusetts Legion programs such as Boys State, Junior Law Cadet, American Legion Baseball, and the developing softball program. The hockey team honors a Veteran of the Game and regularly conducts a jersey raffle, with proceeds going to a Legion program.

Department of Massachusetts NECman Jodie Pajak raves about the support. “There’s no question, no feedback, no static when we ask them for anything. There is no hesitation from anybody on their staff. I’ve never been to any establishment where they are that welcoming. They want to be part of the community, and it definitely shows. The relationship is phenomenal.”

The Legion-Thunderbirds partnership was on full display on Dec. 1, the Legion’s Be the One Day. American Legion members set up a booth inside the arena to educate fans about the organization’s primary mission to reduce the number of veteran suicides. Legion family members handed out customized brochures to thousands of fans. Additionally, a special Be the One jersey, signed by the entire team, was revealed. It will be raffled off at the end of the season, with proceeds going to the Veterans & Children Foundation to support Be the One.

The Be the One mission is especially meaningful for Pajak. “Veterans suicide is a cancer that should not be,” she said. “There are way too many resources, way too many programs to help veterans and their families, to help combat these needs and feelings that these veterans develop in their military careers and come across as they try to transition out of service and back to civilian life. You can’t just flip a switch and go from structured to unstructured. You have to have some help. After a few years, you find you just can’t cope. With this program, we hope that they see us and seek us out.”

Be the One was a natural tie-in this season for the Thunderbirds, which have regularly honored veterans. Their nickname, appropriately enough, is related to the Air Force Thunderbirds.

The team “wanted to get more involved with the community, and they are wonderful to work with,” said Pajak, who, along with her husband, Drew, are members of Post 185 in Agawam. “They felt the need, and they did want to help. They have been phenomenal in promoting this as a way to reduce the stigma. We have a partner that loves putting the Legion first.”

The Thunderbirds highlight the American Legion at all 36 home games. The Legion staffs a table inside the arena, promoting timely programs and initiatives. Over the course of a season, that outreach connects the Legion with at least 220,000 fans.

“At this level, specifically, I thought it was crucially important for us to build our business to open our doors to community projects and give it back to a number of programs, specifically the Legion,” said Nathan Costa, Thunderbirds team president. “Part of the vision from the very beginning was how we can do things to make an impact on the community while also trying to do the right thing.”

Ryan Smith, who manages the team’s media, community relations, and broadcasting, said his grandfather served in World War II. “It’s wrenching for me that there are so many of these military folks who come back and, for a variety of reasons, are not able to reacclimate to society,” he said, adding that he is thankful for the freedom he enjoys thanks to generations of veterans.

“This is a chance to thank them for all that they do, because without them, who knows what we could be doing on a day-to-day basis?” he said. “There is no amount of thanks that we can give them for all that they do for us.”

Strong community partners embolden the Be the One mission.

“It should be important to everybody,” Pajak said. “Everybody should be aware. The Thunderbirds are family-oriented and community-oriented. It’s not only veterans; it’s the community itself. It could be your neighbor. It could be your friend. It could be your co-worker that might need some help. They are willing to help us spread the word and make sure that it is known that is it OK to not be OK.”

 

Henry Howard is deputy director of Media and Communications for the American Legion.

Workforce Development

Expanding the Talent Pipeline

UMass Amherst Chancellor Javier Reyes

UMass Amherst Chancellor Javier Reyes speaks during the announcement of the $5 million grant from the MassTech Collaborative.

Leaders from the Massachusetts Technology Collaborative, also known as MassTech, recently announced a $5 million award from the Healey-Driscoll administration to UMass Amherst to help create an open-access additive manufacturing and design/testing facility on campus.

The grant, from the Collaborative Research and Development (R&D) Matching Grant Program, will augment UMass Amherst’s capabilities in the advanced-manufacturing space and increase its collaboration with universities across Massachusetts around research and development for advanced optical technologies, which have applications in biotechnology, defense, aerospace, environmental monitoring, and general electronics.

“The Healey-Driscoll administration is committed to building a more dynamic manufacturing ecosystem by supporting research and development opportunities across the state,” said Secretary Yvonne Hao of the Executive Office of Economic Development. “This investment will help connect leading innovators, foster workforce opportunities, promote creative problem solving, and accelerate the potential for breakthroughs in a field that underpins so many other essential industries.”

Carolyn Kirk, executive director of MassTech, added that “this investment is another example of Massachusetts’ commitment to strengthening innovative technologies and making R&D tools more accessible to growing businesses, academic researchers, and entrepreneurs across the state, providing opportunities that would normally be cost-prohibitive. Placing it at our flagship university, which has a track record of proven success and partnerships in the advanced-manufacturing space, made perfect sense. When we invest in technical training at a leading institution like this, we can expand training opportunities and the talent pipeline to manufacturing careers, helping diversify our workforce and the ability of the state to compete on a global scale.”

The announcement comes on the heels of the state’s recent award of $19.7 million in funding through the federal CHIPS and Science Act to expand production of microelectronics in the Northeast, work that will benefit from increased R&D in related sectors, including advanced optical technologies.

“We’re proud to make this investment in UMass Amherst to help establish a first-of-its-kind open-access facility that will expand our capability for innovation and strengthen training opportunities in a sector that will be so critical to the future of our economy.”

“Optical technologies are essential in the 21st century, acting as the backbone for transformational industries ranging from semiconductors to mobile technologies, medicine to national defense,” said Pat Larkin, director of the Innovation Institute at MassTech, which manages the collaborative R&D grant program. “That’s why it is critically important to expand collaboration and partnerships in this space, to encourage increased engagement between research institutions and private industry. We’re proud to make this investment in UMass Amherst to help establish a first-of-its-kind open-access facility that will expand our capability for innovation and strengthen training opportunities in a sector that will be so critical to the future of our economy.”

The facility will be the first publicly accessible facility of its kind in the country and will support testing, research, and production of advanced optical technologies. Through the project, UMass Amherst will collaborate with Electro Magnetic Applications Inc. (EMA), which specializes in the testing and design of materials used in space and operates at the Berkshire Innovation Center (BIC) in Pittsfield, and other industry partners, as well as Northeastern University, Springfield Technical Community College, and Berkshire Community College. The BIC will act as a bridge between industry, academia, and government to help develop an additive-manufacturing talent pipeline by providing workforce-development opportunities for students and young professionals.

“For 160 years, UMass Amherst has been an incubator for revolutionary thinking and big ideas,” UMass Amherst Chancellor Javier Reyes said. “Today we further this legacy as we celebrate advancements in precision optics, coatings, and metalens technologies in Western Mass. and prepare to establish an advanced optics manufacturing and characterization facility right here at UMass. By bringing together leading scientists, engineers, researchers, and industry partners, this new facility will accelerate the development and adoption of these transformative technologies.”

UMass Amherst will also use the grant to fund a full wafer imprint tool, which is a low-cost, high-resolution, nano-imprinting lithography device that generates patterns for various applications, a technology that is not currently available in any public facility in the U.S. This investment will provide a singular opportunity for research and collaboration for companies and institutions in Massachusetts.

“The state of Massachusetts and MassTech continue to prioritize investing in critical technologies and capabilities within the Commonwealth,” said Justin McKennon, principal scientist ii and the co-principal investigator for this project on behalf of EMA. “It sets the state apart as a place that not only welcomes, but believes in the companies that reside here. At EMA, we understand that any new technology requires the ability demonstrate it can work in harsh environments, and with our test and simulation capabilities, we are beyond excited to play a key role in helping companies in and around the Commonwealth to prove out their technologies in space and other harsh environments.”

The Collaborative R&D Matching Grant Program has awarded nearly $60 million to projects across the state that have leveraged more than $180 million in matching contributions from project partners. This includes 20 projects that have supported innovative industry and academic collaborations and investments in novel R&D infrastructure to bolster the Massachusetts tech and innovation economy.

The grant program has supported projects in emerging industries such as cloud computing, quantum computing, marine robotics, printed electronics, cybersecurity and data science, and nanomaterials and smart sensors. These investments have led to more than 80 industry partnerships and 60 intellectual-property and licensing agreements in the past two years.

 

Health Care Healthcare News

An Unsustainable Path

 

The Massachusetts Health Policy Commission (HPC) recently voted to issue the 2023 Health Care Cost Trends Report and comprehensive policy recommendations.

Notably, the HPC reports that the average expense of employer-based private health insurance in 2021 climbed to $22,163, outpacing growth in wages and salaries. Including co-payments, deductibles, and out-of-pocket spending, healthcare costs for Massachusetts families neared $25,000 annually. The HPC found that 72% of small-business health-insurance plans featured deductibles exceeding $2,800 for families (or $1,400 for individuals) in 2021, with annual family premiums simultaneously surging from $16,000 to $23,000 since 2012.

The report highlights the unequal burden of these trends, finding persistent disparities across income and racial/ethnic groups, with nearly one in five lower-income residents having high out-of-pocket spending, for example, and significantly higher infant-mortality rates and rates of premature deaths from treatable causes among Black and Hispanic residents compared to other residents. To address these complex and interrelated challenges, the HPC calls for urgent action to update the state’s policy framework to more effectively contain cost growth, alleviate the financial burden of healthcare costs on Massachusetts families, and promote equity in access to care and outcomes for all residents.

“Policymakers do not have to choose between high-quality care and affordability. We have tremendous opportunities for transformative action to support patients and employers.”

“The 2023 Health Care Cost Trends report makes clear how we must do more in Massachusetts to provide more affordable and equitable access,” said Deb Devaux, HPC board chair. “Policymakers do not have to choose between high-quality care and affordability. We have tremendous opportunities for transformative action to support patients and employers.”

Among the report’s findings were that, on average from 2019 to 2021, total healthcare spending increased 3.2% per year, higher than the 3.1% healthcare cost growth benchmark. Commercial spending grew by 5.8% per year, far outpacing the national average in a reversal of prior years of relatively slower growth.

Commercial expenditures for prescription drugs and hospital outpatient care grew the fastest; the average price per prescription for branded drugs exceeded $1,000 in 2021, up from $684 in 2017, while the average commercial price for hospital outpatient services grew by 8.4% from 2019 to 2021.

The average price for many common hospital stays also increased, with most growing by 10% or more over the same period. The HPC estimates that, by eliminating excessive spending due to unreasonably high prices, overuse of high-cost sites of care, and overprovision of care, the Commonwealth could see systemwide savings of nearly $3.5 billion annually.

 

Policy Recommendations

With the report, the HPC announced nine policy recommendations.

“The residents of the Commonwealth deserve a policy framework equal to the novel challenges facing our healthcare system today,” said David Seltz, HPC executive director. “The recommendations in this report provide a roadmap for policymakers to equip the state with the tools it needs to constrain healthcare cost growth equitably and sustainably in a manner that meaningfully addresses existing disparities in access and outcomes.”

The HPC recommends the following reforms to reduce healthcare cost growth, promote affordability, and advance equity, with an emphasis on modernizing the state’s nation-leading benchmark framework.

• Modernize the Commonwealth’s benchmark framework to prioritize healthcare affordability and equity for all. As recommended in past years, the Commonwealth should strengthen the accountability mechanisms of the benchmark, such as by updating the metrics and referral standards used in the performance improvement plan (PIP) process and enhancing transparency and PIP enforcement tools. The state should also modernize its healthcare policy framework to promote affordability and equity, including through the establishment of affordability and equity benchmarks.

David Setz

David Setz

“The residents of the Commonwealth deserve a policy framework equal to the novel challenges facing our healthcare system today.”

• Constrain excessive provider prices. As found in previous cost-trends reports, prices continue to be the primary driver of healthcare spending growth in Massachusetts. To address the substantial impact of high and variable provider prices, the HPC recommends the Legislature enact limitations on excessively high commercial provider prices, require site-neutral payments for routine ambulatory services, and adopt a default, out-of-network payment rate for ‘surprise billing’ situations.

• Enhance oversight of pharmaceutical spending. The HPC continues to recommend that policymakers take steps to address the rapid increase in retail drug spending in Massachusetts with policy action to enhance oversight and transparency. Specific policy actions include adding pharmaceutical manufacturers and pharmacy benefit managers (PBMs) under the HPC’s oversight, enabling the Center for Health Information and Analysis to collect comprehensive drug-pricing data, requiring licensure of PBMs, expanding the HPC’s drug-pricing review authority, and establishing caps on monthly out-of-pocket costs for high-value prescription drugs.

• Make health plans accountable for affordability. The Division of Insurance (DOI) should closely monitor premium growth factors and utilize affordability targets for evaluating health-plan rate filings. Policymakers should promote enrollment through the Massachusetts Connector and the expansion of alternative payment methods (APMs). Lower-income employees should be supported by reducing premium contributions through tax credits or wage-adjusted contributions.

• Advance health equity for all. To address enduring health inequities in Massachusetts, the state must invest in affordable housing, improved food and transportation systems, and solutions to mitigate the impact of climate change. Payer-provider contracts should promote health equity via performance-data stratification and link payments to meeting equity targets. Payers should commit to the adoption of the data standards recommended by the Health Equity Data Standards Technical Advisory Group, and efforts should be made to ensure that the healthcare workforce reflects the diversity of the state’s population.

• Reduce administrative complexity. The Legislature should require standardization in payer claims administration and processing, build upon the momentum from recent federal initiatives to require automation of prior authorization processes, and mandate the adoption of a standardized measure set to reduce reporting burdens and ensure consistency.

• Strengthen tools to monitor the provider market and align the supply and distribution of services with community need. The HPC recommends enhanced regulatory measures including focused, data-driven assessments of service supply and distribution based on identified needs and updates to the state’s existing regulatory tools, such as the Essential Services Closures process, the Determination of Need (DoN) program, and the HPC’s material change notice oversight authority.

• Support and invest in the Commonwealth’s healthcare workforce. The state and healthcare organizations should build on recent state investments to stabilize and strengthen the healthcare workforce. The Commonwealth should offer initial financial assistance to ease the costs of education and training, minimize entry barriers, explore policy adjustments for improved wages in underserved areas, and adopt the Nurse Licensure Compact to simplify hiring from other states. Healthcare delivery organizations should invest in their workforces, improve working conditions, provide opportunities for advancement, improve compensation for non-clinical staff (e.g., community health workers, community navigators, and peer recovery coaches), and take collaborative steps to enhance workforce diversity.

• Strengthen primary and behavioral healthcare. Payers and providers should increase investment in primary care and behavioral health while adhering to cost growth benchmarks. Addressing the need for behavioral-health services involves measures such as enhancing access to appropriate care, expanding inpatient beds, investing in community-based alternatives, aligning the behavioral-health workforce to current needs, employing telehealth, and improving access to treatment for opioid-use disorder, particularly in places where existing inequities present barriers.

 

Key Findings

Prices continue to be the primary driver of healthcare spending growth in Massachusetts. In the report, the HPC identifies price, rather than utilization, as the primary driver of the increase in spending. Commercial prices grew substantially from 2018 to 2021, with an 8.8% increase for office-based services, a 12.1% rise for hospital outpatient services, and a 10.2% uptick for inpatient care. Total payment per hospital discharge for commercially insured patients grew by 23% between 2017 and 2021, primarily driven by a 34% price increase for non-labor-and-delivery discharges.

HPC’s analyses of excess spending found that private insurers paid providers more than twice what Medicare would have paid for nearly 40% of all lab tests and imaging procedures in 2021. Taken together, commercial spending on lab tests, imaging procedures, inpatient hospital stays, clinician-administered drugs, endoscopies, prescription drugs, and certain specialty services accounted for 45% of commercial spending. Among this spending, 27% was in excess of double what Medicare would have paid (or 120% of international drug prices), equivalent to approximately $3,000 annually for a family with private insurance.

Other findings include:

• Unnecessary utilization of care, such as procedures that could be performed in more cost-effective ambulatory surgery centers, care that provides no clinical benefit to patients, and low-risk births in academic medical centers that are reimbursed at higher rates than those in community hospitals, contribute to excessive spending.

• Administrative spending of both hospitals and insurers has increased substantially, with hospital administrative costs nearly doubling from 2011 to 2021 and insurers experiencing growth in administrative spending for both small- and large-group coverage.

• Escalating price trends are evident from 2018 to 2021, with commercial prices increasing for various services, including office services, hospital outpatient care, and inpatient services. Payments for inpatient hospital care grew by 23%, driven primarily by non-labor-and-delivery discharges.

• Variation in provider organization performance continues, with medical spending differing widely between major provider groups and the rate of avoidable visits and imaging utilization varying significantly.

• Massachusetts maintains the highest hospital-utilization rate for Medicare beneficiaries among all states, as well as higher statewide rates of inpatient stays, outpatient visits, and emergency-department visits. The Commonwealth also ranks among the highest in the nation in preventable hospitalizations and readmission rates.

• Between 2017 and 2021, primary-care spending grew more slowly than other medical spending, leading to a decrease in primary care’s share of total commercial spending. Meanwhile, significant disparities in access to primary care between low- and high-income communities persist.

• Behavioral-health trends show a substantial increase in psychotherapy visits and mental-health prescriptions among young adults, alongside a rise in the proportion of patients admitted to acute-care hospitals for mental-health conditions. While opioid-related hospitalizations declined overall, Black non-Hispanic residents experienced persistent increases until 2020.

Construction

A Long-awaited Transformation

Holyoke Mayor Joshua Garcia

Holyoke Mayor Joshua Garcia says the mill-conversion project will impact the city for many years to come.

 

On Nov. 20, Holyoke city officials and legislative leaders joined WinnDevelopment executives and Massachusetts housing lenders to break ground on a $55.3 million adaptive-reuse project at a long-vacant, historic mill complex that will be transformed into 88 affordable apartment homes for seniors ages 55 and older.

The redevelopment at the Appleton Mill property in downtown Holyoke will create new, loft-style apartments in three interconnected, 111-year-old industrial buildings that were once home to Farr Alpaca Co. and have been vacant for decades. In addition, WinnDevelopment will construct a new community building and connect it to the residential space via a closed skybridge spanning nearby railroad tracks.

“We’re excited to get to work on preserving this important feature of Holyoke’s proud industrial legacy and transform it into much-need housing for seniors who want to stay in the community they love,” WinnDevelopment President and Managing Partner Larry Curtis said. “This project is the first part of a two-phase redevelopment effort that will revitalize this historic mill complex and provide an economic boost to Holyoke’s downtown.”

All 88 apartments will be reserved for low- and moderate-income seniors, with 12 units reserved for households below 30% of area median income (AMI), 63 for those below 60% of AMI, and 13 for households below 80% of AMI. Eight of the units will be available to eligible households through the U.S. Department of Housing and Urban Development’s project-based voucher program, and five units will be set aside for Massachusetts Department of Mental Health clients through the Facilities Consolidation Fund.

“This project represents our commitment to history, preservation, and housing. It also represents our commitment to senior living, affordability, compassion, and care,” Holyoke Mayor Joshua Garcia said. “The renovation of the former 111-year-old Alpaca Mill building to achieve these commitments is another Holyoke thing we do. I am excited to witness this unfold at this time in our city’s history and even more excited to see the impact it will have for many years to come.”

The project was made possible with significant federal, state, local, and private financing. Bank of America is serving as the project construction lender and as the investor in the project’s state and federal Low Income Housing Tax Credits, authorized by the Massachusetts Executive Office of Housing and Livable Communities (EOHLC), and state and federal Historic Tax Credits, awarded by the Massachusetts Historic Commission and the U.S. National Park Service.

“We’re pleased to help finance much-needed affordable housing for seniors in Holyoke,” said Mary Thompson, senior vice president of Community Development Banking at Bank of America. “We applaud Winn for their sustainable design that incorporates modern, energy-efficient heating, cooling, and appliances, while preserving the historic character of the Farr Alpaca Company complex.”

MassHousing provided tax-exempt bonds for the project financing, while the EOHLC provided soft financing, along with its partners, the Community Economic Development Assistance Corp. and the MassHousing Affordable Housing Trust.

The property’s current condition is a stark contrast to what it will look like in the future, according to this rendering.

The property’s current condition is a stark contrast to what it will look like in the future, according to this rendering.

“This decades-long-vacant and blighted mill property in the heart of Holyoke will be transformed into new, vibrant housing for older residents who will be able to live affordably and comfortably in downtown Holyoke,” MassHousing CEO Chrystal Kornegay said. “WinnCompanies has the experience and expertise to make this abandoned eyesore into a new affordable-housing community that will serve city residents for many years to come. The city of Holyoke has provided strong support, and MassHousing is pleased to be among the many public and private partners working closely together to complete this important project.”

Enterprise Bank, a locally owned and managed full-service commercial bank based in Lowell, played a key role in the redevelopment through the direct purchase of the bonds and the provision of bridge financing.

“We are pleased to have been able to partner with WinnDevelopment, a respected, award-winning property manager and creator of high-quality and exceptionally managed affordable housing, on this transformative project,” Enterprise Bank CEO Jack Clancy said. “We continue to remain committed to supporting affordable-housing initiatives throughout our footprint.”

The Holyoke Redevelopment Authority (HRA) provided a ground lease for the mill structure for a discounted value and provided additional funds for structural stabilization of the mill complex. Additional local partners include the city of Holyoke and local nonprofit OneHolyoke, which provided critical gap financing through local ARPA and CDBG funds. BlueHub Capital served as lender on the state credit loans.

“The HRA is proud of the partnership with WinnDevelopment and excited to see this project come to fruition,” said Aaron Vega, Holyoke’s director of Planning and Economic Development. “The whole team in our office worked on this project, and we believe in its transformative impact for our downtown and in addressing the housing needs of our community.”

Once the largest alpaca wool mill in the world, the 168,000-square-foot, brick mill complex features nine buildings on six acres and is one of Holyoke’s most prominent historic properties. After the Farr Alpaca Co. ceased production in the early 1940s, the complex declined and has been largely vacant since the 1970s, with deteriorating conditions hindering efforts to revitalize the area.

Located across the street from a state park dedicated to showcasing Holyoke’s industrial and cultural heritage, the site has been a priority for redevelopment since the city took title to the property a decade ago.

WinnDevelopment’s work is focused on an 86,000-square-foot section of the complex that includes three structures: Building 4, erected in 1880 and the oldest on the site; Building 5, a storage, washing, and sorting facility erected in 1905; and Building 6, also built in 1905 and the largest structure on the property.

Designed to meet the sustainability criteria of Enterprise Green Communities, the new apartment community will be completely fossil-fuel-free and will feature LED lighting; Energy Star appliances; low-flow, water-conserving plumbing fixtures; and premium roof insulation.

Resident amenity spaces will include on-site management offices, a fitness center, a resident lounge, an outdoor recreation area along the adjacent canal, laundry facilities, and 109 parking spaces.

Scheduled for completion in the spring of 2025, the project is being led by WinnDevelopment Senior Project Director Matt Robayna, with support from Senior Project Director Lauren Canepari and Assistant Project Director Hagop Toghramadjian.

Keith Construction of Canton is serving as general contractor for the construction effort, with the Architectural Team of Chelsea serving as architect. VHB is providing civil engineering and permitting services through its office in Springfield. Robinson+Cole of Boston served as transaction counsel.

Construction Special Coverage

Building Momentum

By Emily Thurlow

With the federal COVID-19 public-health declaration coming to an end this past May, the once-global pandemic may seem all but a distant memory. For many businesses, however, its impact certainly hasn’t vanished from sight.

Challenges in obtaining materials and equipment continue to vex general contractors in the construction industry in Western Mass. and across the nation. This extended period of uncertainty — in both duration and scope — has left many feeling uncertain about the future beyond 2023, but there are positive signs, too.

Rising building costs and higher interest rates have been of particular concern to Kevin Perrier, president and CEO of Five Star Building Corp. After work in the Easthampton company’s largest sector — aviation — was essentially grounded for the past two years, Perrier says he was expecting business to be on the slower side.

But to his pleasant surprise, he was wrong. Quite wrong.

“We really saw the aviation sector rebound this year. It makes up for essentially two years of no growth and no construction,” he said. “Honestly, this was one of our busiest years I can remember.”

And Five Star isn’t alone. In fact, despite ongoing resource constraints, construction firms like Laplante Construction Inc. in East Longmeadow and Sweitzer Construction LLC in Monson are reporting an increase in the volume of their work, while Fontaine Bros. Inc. in Springfield calls 2023 the firm’s best-ever year for revenue.

“We really saw the aviation sector rebound this year. It makes up for essentially two years of no growth and no construction. Honestly, this was one of our busiest years I can remember.”

“This year has been good. It’s been steady,” said David Fontaine Jr., CEO of Fontaine Bros. “I think our efforts to work really hard to deliver our projects on time and on budget have really strengthened our relationships with our clients because they’ve seen that we’re still getting things done, successfully, no matter how difficult the climate is.”

Reflecting back on those unprecedented times, BusinessWest spoke with several companies in the region who shared how they have been constantly rolling with the punches by being as strategic as possible when planning out projects and seeking alternatives in design, materials, or vendors when applicable, and, above all, maintaining the safety of everyone involved.

 

Gaining Altitude

Within two weeks of the national shutdowns to stop the spread of COVID-19 in March 2020, Perrier estimates that Five Star lost “millions upon millions of dollars worth of work.” Initially, projects were put on a temporary hold, but shortly thereafter, the majority of those projects were canceled, he said.

Laplante Construction recently completed this new home build in East Longmeadow.

Laplante Construction recently completed this new home build in East Longmeadow.

This year, the company, which has been working up and down the East Coast in the aviation sector for the past 13 years, has more than made up for that lost time working with clients like Delta Air Lines and HMSHost International, a U.S. highway and airport food and beverage service company that is a subsidiary of the Italian company Autogrill SpA.

Some of the projects Five Star has completed include the new Gachi Sushi House in Terminal C at Boston Logan International Airport, as well as a Hudson store, offering food, beverages, and travel amenities, in the Terminal B/C connector, and a Hudson Nonstop at Charleston International Airport in South Carolina.

More recent projects underway at Logan include a new hangar roof for Delta Air Lines, some infrastructure work in the lower levels of the airport, and building the new Fox & Flight Restaurant in Terminal A for travel retailer and restaurateur Paradies Lagardère. Perrier said the new restaurant is slated to be the largest restaurant at the airport.

“I think our efforts to work really hard to deliver our projects on time and on budget have really strengthened our relationships with our clients because they’ve seen that we’re still getting things done, successfully, no matter how difficult the climate is.”

“At any given time, we usually have six to 12 projects going in the aviation sector, primarily at Logan,” he said. “The new Terminal E expansion at Logan kept us very busy; it generated quite a bit of work for us to the point that we were actually turning down bids out there. We just kind of reached our capacity for the summer because it was such a push all at once.”

Combined with several mixed-use projects, Five Star had its hands full, he added.

Meanwhile, Laplante Construction and Fontaine Bros. also share glowing reports for their work in the residential and commercial sectors, respectively.

Since expanding his business three years ago to Cape Cod, specializing in mid- to high-end home building and remodeling, Bill Laplante, president of Laplante Construction, says he hasn’t seen any kind of slowdown as a result of increased interest rates. Approximately 80% of the company’s business involves residential projects.

“So the Cape market has been very, very good. There’s an awful lot of work out there,” he said. “I just think there are fewer people out there that are relying on mortgages and are self-financing, or they’re paying cash for work to be done out there.”

For Fontaine Bros., projects that have been publicly funded have remained more consistent than privately funded or developer-driven projects.

Recently, the company completed the three-story DeBerry-Swan Elementary School project on Union Street in Springfield, which opened in the fall. Fontaine is also currently working on school-building projects in Westfield, Worcester, Tyngsboro, Walpole, Fitchburg, and East Brookfield, as well as the UMass Amherst campus.

Pat Sweitzer, operations manager of Sweitzer Construction, also described 2023 as an especially good year. She said that she and her husband, Craig Sweitzer, who co-own and operate the company, attribute this year’s successes to their employees and partners.

Sweitzer Construction has developed an expertise in dental-office construction

Sweitzer Construction has developed an expertise in dental-office construction, including this project for Alliance Dental Care in East Longmeadow.

Pat also offered praise to her sons, Brian and Michael Sweitzer, as both have taken on leadership roles as the firm is in the process of transitioning into a second-generation company.

On the smaller end of projects, the company repaired some buildings at Smith College’s campus and built a new dental office at 265 Benton Dr. in East Longmeadow. One of the larger projects on the company’s docket this year was the conversion of a 19th-century mill building in Northampton into Cambium Analytica’s safety-compliance lab for cannabis products. The new sterile testing lab, which hasn’t opened yet, is located at 320 Riverside Dr., at the site of the former Northampton Cutlery Co.

“Taking a former very old factory building and turning it into a sterile testing lab … the outcome is just remarkable,” Sweitzer said.

Mark Sullivan, president and executive project manager for D.A. Sullivan & Sons Inc., called 2023 the Northampton company’s “first normal year” in several years, adding that things started to stabilize, in a post-COVID sense, during the second half of 2022, and that momentum has carried through 2023.

 

Strength Amid Challenges

While supply-chain issues have dramatically improved across the board since the middle of the pandemic, almost every contractor BusinessWest spoke to has highlighted challenges with electrical components and equipment like meter sockets, switch gears, generators, and transformers. The demand for transformers has been exacerbated by the lack of available domestic manufacturers to meet the increased need.

“Some of those electrical items still have ridiculously long lead times,” Laplante said. “We built a house — literally finished the house a year and a half ago — and there was supposed to be a ground-mounted transformer for the electric service to the house, and they didn’t have them.”

While waiting for the transformer to come in, he said the electric company has supplied the customer with temporary power. “That transformer has been on back order for a year and a half, and we probably won’t see it for another year. When it comes in, we’ll swap it out.”

For the most part, customers have remained understanding, he added. Other materials that continue to be difficult to source in a timely manner include mechanical equipment, like rooftop units for healing and cooling equipment.

“It seems like anything that has a manufacturing process that has a lot of little pieces and parts that are coming from all over continues to be difficult,” Fontaine said. “And for things like, say, a chiller or a piece of switchgear, they won’t start the manufacturing process until they have every little piece or part of what they need at the facility where they put it together.”

Highlighting a similar concern, Sweitzer said her company has made efforts to order products ahead of time. On Nov. 28, a groundbreaking ceremony was held for one of its projects, Embr Springfield, a $2 million dispensary on Boston Road. At nearly the same time, Sweitzer Construction was ordering the rooftop heating and cooling unit.

“We’re just digging the foundation now, and we already ordered the rooftop unit because it will take that long for it to come in,” she said. “The long lead times are a challenge.”

Sullivan noted that, because lead times for electrical components and mechanical equipment are still driving the overall work schedule for D.A. Sullivan & Sons, the firm’s focus has been on pre-construction services and identifying items they feel may trip up their plans.

Another niche facing long lead times is luxury appliance brands like Wolf and Sub-Zero, according to Laplante. Under current lead times, both brands are averaging roughly 12 months to arrive once ordered. Similar to the transformer problem, Laplante said both manufacturers are providing small, temporary refrigerators until the one that was ordered arrives.

“A lot of the appliance companies and the manufacturers are doing the best they can to provide a temporary fix until the final product is delivered,” he said.

 

View to the Future

As the end of the year beckons, many of the companies BusinessWest spoke to are feeling cautiously optimistic about 2024.

Sweitzer has a number of projects on the books, including a few with new partnerships with other contractors like Kleeberg Sheet Metal Inc. in Ludlow.

Sullivan said his firm is wrapping up some municipal work and starting some new projects at libraries, fire stations, and safety complexes, and even has a few projects at local universities and colleges in the queue for next year.

“Next year and beyond, we have the biggest backlog we’ve had in over 10 years,” he said.

Meanwhile, Fontaine Bros. has secured a healthy amount of public-education work for next year and is positioning itself to be ready for other projects on the horizon.

“I think, generally speaking, the industry is always changing. It’s always exciting,” Fontaine said. “It’s been a challenging couple of years, for sure, but it’s something new and exciting to wake up to every day, and we’re thankful that we’ve continued to be able to be successful through it. So hopefully, 2024 and on will get easier, but whatever happens, we’ll be ready to tackle it.”

Though the residential trend of smaller luxury homes looks to continue, Laplante said there are also a number of very large-scale luxury home builds on the books.

“We’ve seen people downsize and go from a large, two-story home to a high-end, smaller ranch with very, very nice amenities on one-floor living, but interestingly enough, we also have some very large homes in the pipeline for next year,” he said. “This is particularly interesting because, generally speaking, over the last five years, there’s been a trend to reduce the overall size of the homes that are being built to single-story living.”

As for Five Star, Perrier says the new year still holds a lot of question marks for him as the aviation sector tends to be a little more unpredictable. Though there are infrastructure and retail build-out projects on the books, higher fuel costs and tightening budgets can often bump jobs at the last second, he explained.

“What tomorrow brings, I don’t know. I guess I’m still going in with the same hesitation I had for 2023,” he said. “Hopefully, I’ll be pleasantly surprised again.”

Opinion

Opinion

By Kimberley Lee

 

In the vast landscape of public service, few figures stand as tall and unwavering in their commitment to mental-health advocacy as Rosalynn Carter. The former U.S. first lady carved a legacy defined by compassion, resilience, and an unyielding dedication to destigmatizing mental health. Her journey, spanning decades, has transformed the conversation around mental well-being and left an indelible mark on the global pursuit of mental-health awareness.

Carter’s journey into mental-health advocacy began at a time when discussing mental illnesses was often shrouded in silence and shame. In the 1970s, as the first lady, she fearlessly stepped into the spotlight to challenge societal norms, becoming a powerful voice for those whose struggles were often overlooked. Her early advocacy laid the foundation for a lifelong commitment to breaking down barriers and fostering understanding.

In 1991, she took a monumental step by establishing the Carter Center Mental Health Program. This initiative, born out of a deep sense of empathy, has been a driving force in shaping mental-health policies, conducting groundbreaking research, and providing resources to educate the public. It stands as a testament to Carter’s foresight and determination to create a world where mental health is prioritized.

At the core of Carter’s advocacy was a relentless pursuit of accessibility to mental healthcare. She tirelessly championed policies that recognized mental health on par with physical health, dismantling obstacles that impede individuals from seeking the support they deserve. Her vision extended beyond borders, advocating for a global approach to mental health that transcends cultural boundaries.

A defining aspect of Carter’s impact was her courage in confronting the stigma surrounding mental health. Through personal stories and public discourse, she became a beacon of hope, normalizing conversations that were once deemed uncomfortable. Her ability to connect with people on a personal level inspired others to share their experiences and contribute to the ongoing dialogue.

Beyond the accolades and recognition, Carter’s legacy is one of empathy in action. Her work has not only shifted policies, but has also sown the seeds of understanding and compassion in communities worldwide. In a world where mental health is gaining the recognition it deserves, she stands as a pioneer, a visionary who dedicated much of her life to ensuring that no one feels alone in their mental-health journey.

As we reflect on her profound impact, we are reminded that the journey toward mental-health acceptance is ongoing. Her example serves as both a call to action and a source of inspiration for individuals, communities, and nations to continue the important work of fostering a world where mental health is a priority and compassion knows no bounds.

Our work at MiraVista is very much a reflection of Rosalynn Carter’s significant contributions and commitment as our daily efforts continue with a profound sense of purpose and dedication, directly contributing to improving mental-health awareness and access to services.

 

Kimberley Lee is chief of Creative Strategy and Development at MiraVista Behavioral Health Center in Holyoke.

Features

At a Loss

By Dr. Jennifer Sowards

 

The year-end holidays are fast-approaching, and it can be a festive time, with many people busy meal planning and shopping for the perfect gift.

However, for people with hearing loss, it may also be a stressful time, filled with gatherings where it will be difficult to understand conversations with family and friends. Hearing loss is tricky because it’s not an all-or-nothing thing: most people report they can hear, but it’s the clarity that becomes a problem. This is why many people still have untreated hearing loss. Most people don’t notice their own hearing loss because, to them, it sounds like other people are mumbling.

One of the first signs of hearing loss is difficulty understanding speech when there is background noise present — and this is what happens at holiday gatherings.

Even with hearing aids, navigating group settings can be a challenge. Here are some tips for the upcoming gatherings:

• Try to pick a spot that will be less noisy (away from fans or music).

• Try to position yourself as close as possible to the people you are trying to hear.

• Try not to be embarrassed to tell people you are having difficulty, and ask them to speak less rapidly or to move to a quieter spot with you.

• Pay attention to context clues to help you predict what comes next. For example, if you hear the word ‘weather,’ the next topic will likely pertain to cold, snow, rain, warm, etc.

• Don’t nod your head and smile if you didn’t understand what was said; ask the speaker to repeat to avoid embarrassing exchanges.

• If someone tells you a phone number or spells a name for you, repeat back what they said to make sure you heard it correctly.

• If you misunderstood part of a sentence, ask a specific question about the part you missed, rather than saying “what?” (For example, “where did you hide the gifts?” or “who is Ted bringing to dinner?”)

• Try to keep a positive attitude. There are some situations where it is hard to hear even for people with normal hearing.

Communication partners can also support their friends and family with hearing loss during the holidays:

• Enunciate words and face the person you are speaking with.

• Make sure you have the person’s attention if you want to tell them something important.

• Help manage background noise. Lower the volume or turn off background music or television, put down rugs in areas with hard floors (echoes in a room can exacerbate the noise), and make sure the room is well-lit to allow for clear visual cues.

• It’s OK to be frustrated, but try not to take it out on the person with hearing loss. Gentle reminders about their dependence on you might actually be helpful motivation to address any untreated hearing issues.

• Hearing aids aren’t hearing cures; even those with treated loss or normal hearing can still struggle at noisy events.

At Florence Hearing Health Care, our recommendation is for anyone noticing any hearing difficulties to have a comprehensive hearing evaluation with an audiologist to establish a baseline. The first thing we do is check to make sure there is no wax blocking the ears. We also make sure there are no infections or eardrum problems that could be treated by a physician. From this evaluation, the audiologist will be able to tell you exactly what your hearing ability is and if treatment is recommended.

Sometimes, holiday gatherings provide the inspiration for this first step in diagnosing and treating hearing loss.

 

Jennifer Sowards, Au.D. is an audiologist and founder of Florence Hearing Health Care.

Building Trades

Beyond Four Walls

By Emily Thurlow

The Newman Catholic Center

The Newman Catholic Center at UMass Amherst is among PDC’s notable recent projects.

One of Nick Shaink’s earliest memories with Professional Drywall Construction Inc. was working as a laborer for the buildout of the Target store at the Holyoke Mall. As a teenager, he worked with the Springfield-based commercial drywall contractor on weekends and on summer breaks.

Now, more than two decades later, the firm is undertaking larger-scale projects, like a 900-room dormitory at the University of Connecticut, and Shaink is co-owner and vice president of PDC Inc.

While the company’s name reflects its origins in drywall, PDC offers services in structural metal framing, finish carpentry, acoustical ceilings, wood framing, plastering, toilet partitions, and more. Most recently, the company landed a job that solely involves installing metal panels on the exterior of a building.

“We’re starting to get work that’s not our traditional scope of work — it’s our expanded scope of work,” co-owner and President Ron Perry said.

Founded in 1994 by John Kendzierski, PDC has been affiliated with the local carpenters’ and laborers’ unions since 1997.

Over the course of Shaink’s career with PDC, he’s held nearly every job — from carpenter and general superintendent to vice president of Operations. A native of Connecticut, he had aspirations of running his own business and eventually relocated to Hampshire County.

Perry, who has been with the company for eight years, was previously a construction manager for two decades. In that prior capacity, he often hired PDC for construction projects, which is how he met Shaink. Over time, Perry learned that they shared similar ambitions. After Shaink approached Perry about going into business together, the pair purchased the company in 2018.

“I’ve always wanted to own a business; that’s always been a dream of mine,” Perry said. “So when this opportunity came up, it was something that I couldn’t pass up.”

Since then, the business has expanded its footprint into Connecticut, opening an office in Norwalk in 2018, and into New York, with an office in Malta in 2021. The multiple locations support each other, Perry said.

While PDC’s Springfield headquarters is handling some of the larger projects, such as the interior framing, insulation, and drywall for UConn’s hockey arena, its Malta location is currently working on a Starbucks at Rivers Casino & Resort Schenectady. For now, the decision remains to take the growth pattern a little slower at the company’s newest office.

“I’ve always wanted to own a business; that’s always been a dream of mine. So when this opportunity came up, it was something that I couldn’t pass up.”

“We want to make sure that we build the right team. We want to make sure that we have the right manpower, instead of taking the giant job out in New York where we could potentially fail,” Perry said. “We’re starting a little slower and trying to grow responsibly there.”

 

Piecing It Together

Over the years, PDC has built a name for itself in renovation and new, large-scale construction projects for retail, medical, and educational organizations in Massachusetts, Vermont, New Hampshire, and Connecticut. The company also has a bonding capacity of up to $100 million.

Notable structures that PDC has had a hand in include the Bone & Joint Institute at Hartford Hospital, Baystate Medical Center’s Hospital of the Future expansion, Taconic High School in Pittsfield, and Wahconah Regional High School in Dalton.

PDC owners Nick Shaink (left) and Ron Perry

PDC owners Nick Shaink (left) and Ron Perry say they want to keep growing the company gradually and smartly.

The company has also worked on more than 30 projects at UMass Amherst in the last 15 years, Shaink said, from its striking design of Isenberg School of Management to the UMass Design Building and the Newman Catholic Center.

At the campus’s Old Chapel, the company installed pre-fabricated, structural cold-formed metal framing, sheathing, and roof blocking on the building’s exterior, and installed framing walls and drywall on the interior. Workers also installed soffits, which is the underside of part of an architectural structure like an arch.

Work also included the installation of wood stairs, acoustical ceiling tiles, and acoustical plaster systems.

“Our goal is to try to do as many of the things we’re good at under one contract. It gives us more control over costs. It gives us more flexibility … it gives us more work on that job, as contracts are a little bigger,” Perry said. “We’re able to do more work with less — that’s why we want our jobs to be bigger. We want to do a bigger scope of work.”

Drywall — a staple in modern homes and buildings in the U.S., also referred to as wallboard or plasterboard — is made of two paper boards with gypsum, a gray or white soft sulfate mineral, in the middle.

The prototype for the invention was patented by Augustine Sackett in 1894, according to the National Inventors Hall of Fame. However, it wasn’t widely accepted as a building material until the 1940s.

Taking the art of drywall a step further in customization, PDC uses a unique method to mill a perfect corner, called ‘origami.’ Much like the Japanese art of folding objects out of paper, PDC’s approach enables its employees to shape a piece of drywall to fit a space more efficiently at the Springfield shop beforehand. Instead of using three separate pieces of drywall to make a column, they can use one piece of drywall, fold it, and glue it together in the desired angle, then install it in one piece.

By using this method, Perry explained, the drywall is not only a durable solution, but it is also a more efficient one, as the profiles are pre-fabricated in the shop. “It makes our lives in the field less complicated. It’s efficiency in the field.”

And, as with most contractors, time and scheduling are of the utmost importance.

 

Leveraging Growth

About a decade ago, the annual drop in temperature also meant a drop in projects. But for the past five years, PDC hasn’t really slowed with the changing of the seasons, Perry said. “It doesn’t ever stop.”

In the months leading up to COVID-19, the company secured a number of jobs, which helped carry it through what were some trying times for other organizations. Despite the uncertainty, Shaink said the company’s workload never really slowed down.

Fortunately, even as businesses across all sectors, especially in the construction realm, have battled persistent workforce shortages, labor has not been much of an issue at PDC, as the company continues to fluctuate between 280 and 300 employees.

The main obstacle during the pandemic — and it’s still an issue — is supply-chain issues for materials. The variety of metal studs the company uses for projects has traditionally been available within a week or two. But in the post-pandemic world, those same metal studs are taking up to eight weeks to arrive. That delay impacts the schedule, which in turn impacts the company’s ability to forecast as accurately as it would like.

“When that lead time is eight weeks and you’re buying material that’s eight weeks away, and it comes, and it turns out you don’t have enough — that’s eight more weeks,” Perry said. “And guys standing around is what costs us the most amount of money.”

One of the hardest-to-get products has been insulation. At one point, insulation, which was typically available within a few weeks, took up to nine months to arrive. In an effort to overcome such delays, Perry said PDC purchased multiple truckloads of insulation in advance and then had to find a place to store it all, hoping the job would still come to fruition.

“It’s complicated to forecast,” he said. “It’s a risk of where to put so much money.”

As for future projects, PDC has been awarded the construction of the new Holyoke Veterans Home. The 350,000-square-foot facility will include a chapel, outdoor gardens, and a pavilion for physical and occupational therapy, as well as outdoor events.

PDC will be tackling the interior and exterior framing, installation of medical headwall systems, drywall installation, and finishing. Once completed, the $483 million project will house 234 long-term-care beds for the medically vulnerable veteran population. Work is slated to begin in the fall of 2024.

In the meantime, both Shaink and Perry still have their sights set on growth, and they’re not getting hung up on a particular volume of work, but rather focusing on sustainability.

“We want to grow the business to be as big as we can and as profitable as we can,” Perry said. “I’d rather do a little bit less work, and make the margins that we need to be sustainable, than to try to take on additional risk and maybe not make as much money. We’re finding that balance between growth and profit.”

Architecture

‘A Labor of Love’

River Valley Co-op in Easthampton

River Valley Co-op in Easthampton demonstrates that on-site solar power can reach net-zero for a grocery store.

 

River Valley Co-op and Co-op Power recently announced a significant achievement: 65 families with low incomes or who are situated within Eversource’s environmental-justice neighborhoods have signed up for low-cost solar power, marking a local step toward mitigating the environmental impact of global warming while promoting community well-being.

In 2014, River Valley Co-op set a sustainability goal to generate 50% of the electricity used annually for its then-future second store through on-site green energy. Upon engaging in real-estate negotiations in 2017 for the second store, on the site of a former Oldsmobile dealership in Easthampton, the co-op simultaneously engaged Co-op Power for support with feasibility of solar power at the store.

Working with the engineering team of Solar Design Associates, a solar canopy over the rooftop and parking lot was proposed. The result was a preliminary, groundbreaking grocery-store design that could achieve River Valley Co-op’s net-zero goal, offsetting 100% of the new store’s electricity.

“The journey has been filled with challenges, but after six years of relentless effort in partnership with our solar developer, Co-op Power — a labor of love for and with our community — we successfully energized the rooftop system,” said Rochelle Prunty, general manager of River Valley Co-op, adding that “we finalized the subscription of 65 community solar shares that were essential to the project, and within a month, we anticipate energizing the solar canopy.”

The success of this project demonstrates that on-site solar electricity can reach net-zero for a grocery store. Moreover, it brings significant relief to 65 community households with low incomes or those situated within Eversource’s environmental-justice neighborhoods, collectively saving them $20,000 on their annual electric bills through the community solar aspect of this project. The economic relief to these community families, including some co-op employees, is timely as many people are struggling with especially high inflation in electric costs over the past year.

“River Valley Co-op remains committed to our mission of creating a just marketplace that nurtures the community through our community-owned retail grocery business operations,” Prunty said. “We leverage our business for addressing the pressing issues of fostering sustainable local food-system development, fighting global warming, and working for overall environmental and social justice.”

The hope, she added, is that this grocery-store solar project inspires others and drives systemic changes that support more widespread community ownership of solar- and green-energy innovations to democratize sustainable energy production. Partners on the project include Co-op Power, PV Squared, EOS Energy Systems, Sunwealth, Solar Design Associates, Wright Builders, Thomas Douglas Architects, and Berkshire Design Group.

Prunty also credited support from U.S. Rep. Richard Neal, Easthampton Mayor Nicole LaChapelle, and Eversource in making the project a reality.

“It feels great to have been able to exceed our 2014 stretch goal of 50% for site-generated solar power to net-zero,” she added. “It took years of work to get here, navigating a system that was not designed for short-term profits for corporations, but instead for net-zero, local, community-owned solar production for either individuals or businesses. But with steadfast support from Co-op Power and so many others in our community, we are about the reach the finish line.”

 

Architecture

The Road Ahead

 

Last year, trucks moved 73% — 11.5 billion tons — of the freight in the U.S., making trucks, and truckers, crucial to the U.S. economy. With automation in trucking projected to grow 22% over the next 10 years, a team of UMass Amherst researchers has received a grant to explore how automation will affect the role of American long-haul truckers.

An interdisciplinary group of researchers led by Shannon Roberts, associate professor of Mechanical and Industrial Engineering, has been awarded nearly $2 million over four years by the National Science Foundation’s (NSF) Future of Work Program.

“We know that, when automation is introduced into trucks, it changes the role of a trucker,” Roberts said. “The question we are asking is, how do we examine and improve upon the future of work in long-haul trucking not by focusing on technology development, but rather by focusing on the trucker?”

Laurel Smith-Doerr, professor of Sociology and co-principal investigator on the study, noted that, “unlike other research projects on the future of work in long-haul trucking that assume driverless automation, our interdisciplinary, NSF-funded project centers the driver in the process of imagining the future of work in trucking.”

Roberts added that the role technology plays and the needs of truckers have to be carefully balanced. “Let’s focus on taking the best of both worlds to make sure they work together seamlessly. In the end, that will reap the greatest benefit.”

“Technology is good at handling consistent situations with predictable, rational people, but humans are not predictable, rational beings. Because of this, technology will not be able to react to everything that might happen on the road. It’s impossible. We will need a person in the truck.”

Automation has many benefits, like fewer crashes and better efficiency, but that doesn’t mean the human should be removed from the equation entirely, she added. “Technology is good at handling consistent situations with predictable, rational people, but humans are not predictable, rational beings. Because of this, technology will not be able to react to everything that might happen on the road. It’s impossible. We will need a person in the truck.”

At the same time, automation can’t make workers feel expendable, she said. “People take pride in what they do. We don’t want to take everything out of that job such that people are unsatisfied and unhappy. Many people get into trucking as a means to move into the middle-class lifestyle with a high-school diploma or a GED. It’s a means of betterment for a large chunk of the population.”

Roberts added that there’s a significant equity factor to consider as well. She sees how automation can also help relieve the ongoing trucker shortage by making the field more accessible to people who are underrepresented in the field — veterans, women, and minorities.

Ultimately, these questions converge on a topic she calls the human-truck symbiosis. “How do we take advantage of all the things that people are good at doing, and all the things that technology is good at doing, to make sure we have a system that works really well?”

Such a complex landscape requires an interdisciplinary team to evaluate it from all angles. Other principal investigators include Henry Renski, professor of Regional Planning; Shlomo Zilberstein, professor of Computer Science; Michael Knodler, professor of Civil Engineering; and Robin Riessman of the UMass Transportation Center as senior personnel.

Some of the methods the team plans to use to collect the information include ride-alongs with truckers, participatory design with truckers, and workforce-development analysis.

“We’re working with this workforce — that is, truckers,” Roberts said. “One of the things that will make this project successful is our stakeholders.”

 

Law

Families Can Save Close to $100,000 Under New Rules

By Hyman G. Darling, Esq.

 

At long last, Massachusetts has passed a law increasing the estate-tax exemption. Under the prior law, if a person died with less than $1 million, there was no estate tax due. However, if they died with more than $1 million, the $1 million exemption basically disappeared, and taxes were due on all assets back to the first dollar. This includes assets such as real estate, stocks, bonds, retirement plans, life insurance, annuities, etc.

Under the new law, the exemption has increased to $2 million, but this is a true exemption. Therefore, if a person dies with less than $2 million, there is no estate tax due. If their estate is greater than $2 million, the tax will be calculated on all assets, but basically, the first $2 million is exempt from tax.

Hyman G. Darling

This does have the effect of taxing all assets at a bit higher rate, but the exemption of $2 million basically applies to a credit. The credit is $99,600, which would have been the tax on the first $2 million. In other words, if a person dies under the new law, and if the estate was greater than $2 million, the family basically saves $99,600, which would have been the tax on the first $2 million. The law is retroactive to any individual who dies on or after Jan. 1, 2023. Therefore, if you are reading this article, you have the benefit of the increased exemption amount.

Under the new law, there is also a provision that attempts to impose an estate tax on out-of-state property, which was not the case under the old law. The new law will allocate the tax and charge only a proportionate share of the estate tax as it applies to the Massachusetts property, but the out-of-state property is included, thus increasing the total of the taxable estate. This probably will be challenged by an individual who has a significant amount of out-of-state property, which would therefore increase their estate tax in Massachusetts. However, it may be some time before the litigation on this matter makes its way through the court system.

For a married couple, they each now have an exemption of $4 million. However, they must use the exemption, or it is otherwise lost. For instance, if one spouse dies, leaving all assets to the surviving spouse, there is no tax because the unlimited marital deduction allows a spouse to receive an unlimited amount of money from the deceased spouse. If this is the case, then the person who died did not use their $2 million exemption, and the assets are then in the surviving spouse’s estate. If that surviving spouse has greater than $2 million, there will be a tax, and only the exemption will be allowable on the second to die.

Therefore, the first spouse should consider establishing a trust with up to $2 million in assets. The trust fund will be available for the surviving spouse, and that spouse may receive income and principal at the discretion of the trustee. At the death of the second spouse, the funds remaining in this trust will pass to the children or other contingent beneficiaries without any estate tax, and the surviving spouse will still have their $2 million exemption available. Thus, they have sheltered $4 million of assets to pass to beneficiaries, which is a significant change over the prior law.

An alternative would be to have $2 million of assets left outright to the children on the death of the first spouse, but then the surviving spouse will not have availability of those assets to use during their lifetime. The use of the trust is more advisable since it is flexible in allowing the surviving spouse to have access to income and principal, but not have those assets taxed in their estate.

An additional benefit of utilization of a trust is that the funds may be held in the trust for the benefit of children until they attain desired ages when they may be more mature to receive their funds for distribution. The funds may also be distributed in intervals such as one-third at age 25, one-third at age 30, and one-third at age 35, with also giving the trustee discretion to utilize funds for the children for their health, maintenance, education, support, etc.

While the increase in the exemption has finally increased, it is still not as desirable as many other states that have either no estate tax or a significantly higher exemption. The federal exemption is currently $12.92 million for each person who dies as a U.S. citizen, but this amount is proposed to be reduced in 2026 to approximately half of this amount unless Congress extends the higher exemption amount.

In any event, this is a good time to review all estate -planning documents to be sure they are up to date, including a will, a healthcare proxy, a power of attorney, and any other estate-planning documents a person may have. Of course, use of the new tax credit should be considered to reduce or eliminate the tax.

 

Hyman Darling, a shareholder at Bacon Wilson and chair of the firm’s Estate Planning and Elder Law department, is recognized as the area’s preeminent estate planner, with extensive experience with all aspects of estate planning, trusts, tax law, probate and estates, guardianships, special-needs trusts and planning, elder law, and long-term care planning, and additional specialties including adoption and real estate; (413) 781-0560.

Law

Employers, Take Note

By Amelia J. Holstrom, Esq.

 

The Massachusetts Paid Family and Medical Leave (PFML) law is a relatively new statute that employers have to comply with in the Commonwealth. Under that law, eligible employees can take up to 26 workweeks of job-protected leave each benefit year for various reasons, including leave for their own serious health conditions or the serious health condition of their family members; leave to bond with children after birth, adoption, or placement; and leave for certain military-based reasons.

During any PFML leave, an employee is paid a portion of their regular pay as a PFML benefit. While some Massachusetts employers have a private PFML plan, the majority provide PFML to their employees through the Commonwealth’s Department of Family and Medical Leave.

Recently, two very important changes were announced regarding the PFML law. As a result of those changes, employers need to take action in the coming weeks. Here is what you need to know.

 

The Contribution Rate Is Increasing

Employees (and employers at companies with 25 or more employees) fund the PFML program through contributions deducted from their wages. For employers who provide PFML through the Commonwealth, rather than a private program, the Department of Family and Medical Leave sets the contribution rates annually, and it recently announced that contribution rates will increase in 2024.

“Recently, two very important changes were announced regarding the PFML law. As a result of those changes, employers need to take action in the coming weeks.”

Beginning on Jan. 1, 2024, the PFML contribution rate for businesses with 25 or more employees is increasing from 0.63% of wages to 0.88%. Of the 0.88%, 0.18% applies to the family-leave portion of the law and may be paid for solely by the employee. The remaining 0.7% is applicable to the medical-leave portion of the law, of which 0.28% may be paid for by the employee, with the remaining 0.42% to be paid for by the employer.

Similarly, the PFML contribution rate for businesses with fewer than 25 employees is increasing from 0.318% to 0.46%. Employers with fewer than 25 employees may require the employee to pay the full 0.46% contribution, or they can pay a portion of the contribution at their option.

Individual contributions are still capped by the federal Social Security taxable maximum. In other words, PFML contributions are not paid by the employee or employer on any income over that maximum. For 2024, that maximum is $168,600.

The increase is not surprising given statistics recently released by the Department of Family and Medical Leave in its FY 2023 Report. The report, which covered July 1, 2022 through June 30, 2023, indicates that the department approved more than 143,000 applications for PFML in FY 2023, which was a 27.39% increase in approved applications over FY 2022. With more PFML claims receiving approval, the department is paying out more in benefits, which are funded by employer and employee contributions.

 

A New Notice Is Now Required

The change in the contribution rate means that employers need to issue a new PFML notice to employees. Under the law, employers are required to give employees a written notice, which includes information on the contribution rates, among other things, at the time of hire and 30 days in advance of any contribution-rate change.

The new contribution rates will be effective Jan. 1, 2024. As a result, employers must provide notice to their employees no later than Dec. 2, 2023. The Department of Family and Medical Leave issues a model notice for employers to use each year, which will be found on the department’s website once it is released.

 

‘Topping Off’ PFML Payments

Since its inception, the PFML statute prohibited an employee from using company-provided paid time, including but not limited to vacation, personal, and sick time (collectively, PTO) and receiving PFML benefits from the Department of Family and Medical Leave at the same time.

In other words, an employee who chose to use PTO during their PFML leave was not permitted to receive any payment from the state. Employees could not even supplement — frequently referred to as ‘topping off’ — their reduced-PFML benefit using PTO to receive 100% of their pay during their leave. This, however, has recently changed.

Employees who apply to the department for PFML benefits on or after Nov. 1, 2023 will be allowed to supplement their PFML benefits with accrued PTO provided by their employer at their option. This will enable an employee to receive their full pay while on PFML leave, if they choose to do to. It is important to note that employers cannot require an employee to use their company-provided paid time to top off.

Employers with private plans may need to make some changes, too. Prior to Nov. 1, 2023, employers with private plans could choose whether or not to permit employees to top off their reduced PFML benefit by utilizing company-provided PTO. There is no longer a choice. Beginning on Nov. 1, employees working for employers with private plans will also be permitted to utilized company-provided paid time off, at their option, to supplement their PFML benefit to receive their full pay while on leave.

 

What Should Employers Do Next?

Employers should review the Department of Family and Medical Leave website regularly for the new contribution-rate notices and send those out to employees no later than Dec. 2, 2023. Additionally, now that employees have the option to top off their PFML benefits with PTO offered by the employer, employers should review their PFML policies and other related documents to make any necessary changes in light of the new topping-off option.

Employers who have questions about the changes to the law or edits to their policies and related documents should work with their labor and employment counsel to address those questions.

 

Amelia Holstrom is a partner with the Springfield-based law firm Skoler, Abbott & Presser, P.C., with a practice that focuses on litigation avoidance, employment litigation, and labor law and relations; (413) 737-4753.

Healthcare News

A Survivor’s Story

By James Basler

 

There have been 1 million drug-overdose deaths in this country since 1999. On March 21, 2018, my brother was one of them.

I am very lucky, at age 46, to not be one of them, as I, too, have overdosed, but survived. My paper route, as I tell people about my life’s journey, has not been an easy one, with jail time for aggressive behavior while under the influence, time wasted in denial about my substance use and mental health, and letting judgment of others keep me from seeking treatment.

However, I did seek treatment, finding success with daily medication to maintain recovery, along with the behavioral-health counseling that goes with it, in my mind, like peanut butter and jelly. I now share my story with others, as many of us have lost family members and friends to drug overdose.

I tell anyone with addiction that if I can maintain recovery — despite a long history of misuse, startovers, and decisions that did not focus on what I needed to do — you can do it, too. You can find the right combination of support to start and sustain recovery.

My substance use dates to weekend drinking as a young adult, and my addiction and recovery are, you might say, a timeline for the public-health emergency that substance use and mental health have become during the last two decades.

My journey has included alcohol, the once widely prescribed pain med Oxycontin that flamed the country’s overdose crisis, heroin, Section 35 court-order treatment, stays in residential recovery programs, and hospital admissions on a voluntary basis for psychiatric treatment.

I got married; fathered three children, whom I see regularly; and learned and accepted that my addiction, the most severe form of substance use, may have started as a form of self-medication in response to mental-health issues and exposure to trauma.

“I tell anyone with addiction that if I can maintain recovery — despite a long history of misuse, startovers, and decisions that did not focus on what I needed to do — you can do it, too. You can find the right combination of support to start and sustain recovery.”

I have been clean for the last five years except for one relapse three years into my sobriety. Anyone in recovery will tell you relapse is part of recovery. Your brain misses the pleasurable feelings drug dependency produces, especially when life’s realities sideline how such dependency can ruin your life altogether.

I live in sober housing and work daily to maintain recovery, as no one ever said recovery is easy, despite its rewards. You need to stay connected to your treatment and supports, and not go it alone.

I take methadone at the MiraVista Behavioral Health Center in Holyoke, and I also do one-one-counseling for my mental health, as well as group sessions. Substance use can contribute to poor mental health, and poor mental health can contribute to substance use. Finding the right medications and getting the right providers in place for both can take time, but are what enable individuals like myself with a substance-use and mental-health diagnosis to lead fulfilling lives in our community and have healthy relationships.

I was oblivious, growing up in Middlesex County during the 1990s, to the dangers and consequences of substance use. I now understand addiction for what it is: a medical condition that needs individualized treatment, and that there is no shame in getting treatment to manage it.

I have survived to 46 thanks to a little luck, as illicit drugs laced with fentanyl, a laboratory-made opioid that is cheap and 100 times more potent than heroin, have become mainly responsible for the majority of overdose deaths at record numbers in this country; much ongoing support from family and friends; and access as well as commitment to medication-assisted recovery like that at MiraVista.

I hope that my story offers hope for recovery to anyone with substance-use and mental-health disorders. Medications can get you into recovery, and the work you do in counseling motivates and helps sustain it.

 

James Basler was born in Melrose and raised in Burlington. He is a resident of Holyoke, the father of three, and a patient of MiraVista Behavioral Health Center’s Opioid Treatment program. He is in his fifth year of successful, sustained recovery. For more information on MiraVista’s treatment and recovery programs, call (413) 701-2600, option 3, or visit www.miravistabhc.care.

Holiday Party Planner

What’s on the Menu?

By Manon L. Mirabelli

Ralph Santaniello

Ralph Santaniello says the Federal fits the bill as an upscale, special-occasion restaurant and also as an affordable, sociable spot.

Monica Guarneri has seen a noticeable trend in party planning — specifically, parties outside the home.

And that’s good for business at Shortstop Bar & Grill in Westfield, where Guarneri is executive chef and co-owner alongside her parents, Nabil and Julie Hannoush.

In the 10 years that facility has been open, she explained, more people are choosing to host parties in public rather than private spaces such as homes and offices, a trend driven by the COVID-19 pandemic. To accommodate that demand, Shortstop offers a newly redecorated, 3,000-square-foot banquet room that can hold 25 to 100 people.

“A lot of people don’t want to worry about having people in their homes,” Guarneri said. “What attracts clients is the ease and comfort of having someone else do the work for them so they can enjoy the party.”

While the space is tastefully appointed, she added, those hosting parties may opt to decorate the room to their liking to create a custom experience. “We are the go-to spot for several business clients. We offer convenience, consistency, and a private atmosphere.”

The holiday season is traditionally a time when employers celebrate their employees’ contributions to a successful business year with festive gatherings, and Western Mass. has no shortage of distinctive venues of all sizes, from the Berkshires to the Pioneer Valley.

One of the most notable local venues is Springfield’s world-renowned Naismith Memorial Basketball Hall of Fame, which has the capability to host events of all sizes, intimate to large-scale.

Chelsea Johnson, manager of internal events for the Hall of Fame, said most businesses begin booking their holiday parties in the summer, and those that return regularly begin planning for the following year immediately after their parties.

“We are the go-to spot for several business clients. We offer convenience, consistency, and a private atmosphere.”

“It’s definitely a unique venue,” she said. “It’s not your standard banquet hall.”

Indeed, it is not. Party planners have a wide range of options, including Center Court, which typically accommodates 500 to 800 guests; the Theater, which holds 100 to 200 people; and the Boardroom and Hall of Honor, both more intimate spaces that can accommodate 50 to 100 guests.

Johnson said the Hall of Fame is an ideal venue for holiday parties because of its proximity to major highways, plenty of free parking, and free on-site valet service, to name just a few reasons.

“We are the premier location for events of any size or type in Western Massachusetts and New England,” she added. “We have more than 80,000 square feet of flexible function space, and each year we host hundreds of local and global corporate meetings, award dinners, private socials, and internationally televised events.”

 

Go West

Party planners seeking a more intimate venue a bit farther west might find the traditional elegance of the Red Lion Inn in Stockbridge an ideal location for a quintessential New England holiday experience.

Tim Eustis, director of Sales and Catering, said the storied eatery can accommodate 65 to 120 people and can customize space to suit every party, and companies who hold holiday events at the Red Lion can expect “a warm space, good food and drinks, and excellent service.”

The Red Lion’s Hitchcock Room

The Red Lion’s Hitchcock Room is the historic inn’s most spacious banquet option.

“We’re very good at throwing parties,” he noted. “We have the Hitchcock Room, the main dining room, front and back dining rooms, and part of the lobby.”

One local business-client stalwart for the Red Lion Inn, Eustis said, is the Jane Iredale international cosmetics company, as well as U.S. Rep. Richard Neal’s annual gathering for staff and friends.

“Congressman Neal’s parties are one of our favorites to plan and be a part of,” Eustis said. “They have a great team.”

Back in the Springfield area, the Federal is a historic site in Agawam that has become synonymous with excellence in fine dining.

Owners Ralph Santanielo and Michael Presnal strive to integrate the white-linen elegance of a bygone era with a fresh and innovative, ‘new American’ cuisine. “We rely on strong Italian and French influences to inspire the contemporary culinary style of Chef Presnal in dishes such as his red beet risotto, burnt tangerine glazed cod, and white-chocolate panna cotta” Santaniello said.

One big advantage of hosting a holiday event at the Federal, he added, is that the space is “dressed up as a special-occasion restaurant, but is sociable and affordable enough for every occasion.”

For those who choose to have the Federal cater their events off-site, parties from 15 to 300 can be served from a menu of specialty items.

 

Beyond the Table

Some venues offer more than a meal experience. Not unlike the Basketball Hall of Fame, but on a smaller scale, Shortstop also offers an interactive party experience with indoor batting cages to encourage mingling and hands-on fun.

“The batting cages are a great icebreaker,” Guarnieri said. “They make it easy to make conversation and make the party more interactive.”

Shortstop provides all food and beverages in party packages and may include chef-made desserts, though guests are also welcome to bring in their own desserts.

Speaking of the Hall of Fame, that venue provides local businesses with a one-of-a-kind party facility where guests can enjoy an interactive experience shooting hoops and touring the museum.

Johnson noted that Max’s Downtown is the exclusive caterer for Hall events, ensuring that visitors will enjoy a gourmet dinner experience in addition to a fun venue.

She noted that two of the biggest local companies that utilize the spot for their holiday parties are Advanced Manufacturing in Westfield and the Sarat Ford group, which includes Enfield Ford, Ford of Northampton, and the flagship Sarat Ford Lincoln in Agawam, for a total of more than 250 guests.

Jack Sarat, president of the auto group, said 2022 was the company’s first year at the Hall of Fame, and it was a great choice enjoyed by employees and their families. “Everybody had a great time. The food was excellent, and the venue is excellent. They really did a great job. A lot of people had never been there. It was a lot of fun.”

The Sarat patriarch said the company has used quite a few banquet facilities throughout the years it has been in business, but the Hall of Fame provided one of the most memorable parties.

“Overall, we had such a great time last year. They really sold us, and there was no reason not to go back this year.”

Shop Local Special Coverage

Gifts for Every Season

By Manon L. Mirabelli

Michelle Wirth says the Feel Good Shop Local

Michelle Wirth says the Feel Good Shop Local website gives area merchants access to many more shoppers.

The gift-giving season is quickly approaching, and the business of everyday life can make it difficult to find the perfectly thoughtful gift. Fortunately, the 413 is full of good ideas.

Michelle Wirth, founder and CEO of Feel Good Shop Local — and a believer in the importance of supporting local retailers — has been working with area merchants since 2020, when the COVID-19 pandemic halted business as we knew it.

A successful marketing executive and entrepreneur, Wirth — who, with her husband, Peter, brought Mercedes-Benz of Springfield to the region — said she has always been passionate about supporting local, independent businesses.

“People today are busy and don’t have time to do research to find small businesses,” she said. “But we can’t have a vibrant downtown if we don’t support small businesses throughout the year so they can survive.”

Wirth established Feel Good Shop Local (FGSL) and its website, www.feelgoodshoplocal.com, to support independent merchants and empower conscientious consumers by offering a simple online solution for those who want to shop locally and/or to support small businesses, she explained.

“Small business is the backbone of any thriving community, and FGSL wants to create an elevated online experience so shopping locally becomes the go-to solution when trying to find great products easily.”

Not only does FGSL support local commerce, the nonprofit organization also increases sales for small-business merchants by making its online store available to them to sell their goods. The concept behind the website is to offer consumers an alternate shopping stream while boosting sales for the businesses.

The website, Wirth noted, gives merchants access to a significantly greater number of shoppers. It started with 20 businesses and has increased to 50 this year, offering consumers a wide array of shopping options.

“Our online e-commerce website shop is a one-stop shop that gives small, local business access and exposure to new consumers who would not otherwise know about the business,” she said. “We’re giving these businesses access to sales, vitality, and exposure. We’re doing the heavy lifting for business and the consumer.”

As a busy mom of four and business owner, Wirth understands the challenges consumers face when balancing the need for convenience and the desire to make value-driven purchasing choices. She personally curates a selection of the best products from independent merchants and local makers.

The shopping convenience and variety of choice, as well as the benefits to business owners, make up just some of the bigger economic picture. The importance of shopping locally benefits the long-term success of any community’s downtown offerings and can make the difference between a stagnant town center and one that thrives with activity.

“It’s important to shop local,” Wirth said. “We all want a vibrant downtown community. When people shop local, they are voting with their wallets and making dreams come true for the business owner.”

Just as important, the consumer benefits by having the opportunity to purchase unique items, she added. “There is a higher propensity of finding something unique while providing economic growth in the community. We pride ourselves on providing a personalized experience. We know the owner, remember what you like, and the money is going to a person, not a faceless corporation. We offer a higher level of customer experience.”

Claudia Pazmany, executive director of the Amherst Area Chamber of Commerce, echoed Wirth’s sentiments on how critical supporting local business owners can be to a community’s success.

“They create the fabric of our community. Entrepreneurship is soaring since the pandemic, and as a result, Amherst alone has an array of new retail offerings and many new restaurants and food establishments,” Pazmany said. “When you support local, you are directly investing in positive social and economic impact. We developed our Amherst Area Gift Card program to showcase local and remind our community that these small businesses should be your first place to turn for gift giving.”

For our annual Shop Local Gift Guide, BusinessWest offers up 18 such options, whether you’re looking for a physical gift to wrap up, a service, or an always-welcome gift card.

Arts Unlimited Gift Gallery
25 College St., South Hadley
(413) 532-7047
www.arts-unlimited.com
Arts Unlimited was founded with one goal in mind: to provide customers with a high-quality, smart, and reliable gift shop. Offerings include a wide variety of art, accessories, and decorations, and gifts for birthdays, retirements, weddings, holidays, and more.

The Baker’s Pin
34 Bridge St., Northampton
(413) 586-7978
www.thebakerspin.com
This extensive kitchen store carries a wide range of cookware, cutlery, electric devices, bakeware, kitchen tools, home goods, cookbooks, and food products as well. But it also offers an array of cooking classes, both online and in person, exploring different foods and techniques appropriate for the season.
 
Berkshirecat Records
63 Flansburg Ave., Dalton
(413) 212-3874
www.berkshirecatrecords.com
Berkshirecat Records is an independent record store located inside the Stationery Factory building, selling quality vintage and new vinyl records of classic rock, blues, jazz, psychedelic, garage rock, folk, indie, pop, and metal recordings.

The Bookstore and Get Lit Wine Bar
11 Housatonic St., Lenox
(413) 637-3390
www.bookstoreinlenox.com
The Bookstore, a fixture in Lenox for more than 40 years, was actually born in the neighboring town of Stockbridge, in the living room of a small rented house behind an alley that housed a then little-known café that later came to be known as Alice’s Restaurant. The bar is open whenever the bookstore is, and the bookstore stays open later some nights when the bar is open as well.

The Closet
79 Cowls Road, Amherst
(413) 345-5999
www.thecloset.clothing
The Closet’s mission goes beyond connecting shoppers to the perfect black dress or favorite pair of shoes. Environmentally conscious, the shop wants to do its part to prevent clothing from being thrown away. Buying previously loved apparel stops the further use of natural resources and prevents clothing from wasting away in landfills.

Fresh Fitness Training Center/Fresh Cycle
320 College Highway, Southwick
(413) 998-3253
Fresh Fitness is a new, full-service, state-of-the-art gym with brand-new equipment and training for all fitness levels, from beginner to advanced, and is located in the same building that houses Fresh Cycle, one of the region’s premier indoor cycle studios, with more than 25 classes per week led by certified instructors.

Glow Studio Suites
2260 Westfield St., West Springfield
(413) 579-8455
Glow Studio Suites features individual beauty experts in one location. Walk in the door and find a lash artist, nail technician, esthetician, and injector. In addition, spray tan and waxing services are available.

Highlands Cards and Gifts
303A Springfield St., Agawam
(413) 315-3442
www.highlandscardandgift.com
Highlands Card and Gifts features a large selection of Irish and Celtic products, Irish knit sweaters, and Irish saps year round, as well as Celtic jewelry, Emmett glassware, Irish and Celtic themed sweatshirts and tees, wool capes, handbags, mugs, teapots, wall hangings, lamps, Irish foods, and much more.

Julie Nolan Jewelry
40 Main St., Amherst
(413) 270-6221
www.julienolanjewelry.com
Julie Nolan’s work blends traditional techniques of wax carving, diamond setting, and goldsmithing with a modern sensibility for design and composition. She sells her own handcrafted, one-of-a-kind heirloom pieces by hand in her studio and boutique, alongside a curated selection of home and gift items by Western Mass. makers.

Pilgrim Candle
36 Union Ave., Westfield
(413) 562-2635
www.pilgrimcandle.com
Pilgrim Candle Co. opened its doors in 1992 and expanded its already-busy operation in 2000 by acquiring Main Street Candlery. In 2007, Pilgrim expanded into private-label manufacturing. Since its first sale more than 30 years ago, Pilgrim Candle has developed a high-quality line of scented candles for candle lovers all around the world.

Pioneer Valley Food Tours
(413) 320-7700
www.pioneervalleyfoodtours.com
This enterprise creates walking food tours that explore local flavors from Northampton and around the region. It also creates gift boxes sourced from the region’s fields and farms, as well as Pioneer Valley picnic baskets of selections ready to bring on an outdoor adventure. Choose a pre-set tour itinerary, or create a custom tour to suit your tastes.
 
Pottery Cellar
77 Mill St., Westfield
(413) 642-5524
www.potterycellar.com
Located in the Mill at Crane Pond, the Pottery Cellar offers the largest selection of authentic Boleslawiec pottery in New England. From holiday-themed seasonal pieces to full dining sets, Pottery Cellar is a regional destination for authentic Polish pottery.

Renew.Calm
80 Capital Dr., West Springfield
(413) 737-6223
www.renewcalm.com
Renew.Calm offers an array of both medically based and luxurious spa treatments, with services including skin care, therapeutic massage, nail care, body treatments, yoga, hair removal, makeup, and lashes. Multi-treatment packages make great gifts.
 
The Shot Shop
722 Bliss Road, Longmeadow
(413) 561-7468
www.ssmedspa.com
The Shot Shop medical rejuvenation spa offers medical rejuvenation treatments for a wide variety of needs. Anyone feeling run down and tired, noticing visible signs of aging, or with other concerns that need to be addressed may find a medical rejuvenation treatment here that will help.

Springfield Thunderbirds
45 Bruce Landon Way, Springfield
(413) 739-4625
www.springfieldthunderbirds.com
A great deal for big-time hockey fans and folks who simply enjoy a fun night out with the family, Thunderbirds games are reasonably priced entertainment in Springfield’s vibrant downtown. The AHL franchise plays home games through April at the MassMutual Center, with a constant stream of promotions.

Springfield Wine Exchange
1500 Main St., Springfield
(413) 733-2171
Located on the ground floor of downtown Tower Square, the Springfield Wine Exchange offers customers local select craft beers and wines imported from around the world, providing a wide array of options for any occasion.

Visual Changes Salon
100 Shaker Road, East Longmeadow
(413) 525-1825
www.visualchangesinc.com
With more than 30 years dedicated to all dimensions of the hair industry, salon owner Mark Maruca is widely respected for his innovative approach hair styling. Services and products are individualized to suit client needs.

Zen’s Toyland
803 Williams St., Longmeadow
(413) 754-3654
www.zenstoyland.com
Zen’s Toyland sells a variety of items ranging from baby teethers to adult puzzles, including high-quality, unique items that aren’t available elsewhere. All the toys are handpicked, and the shop also has a playroom for children to ‘test drive’ items.

Opinion

Opinion

By Judy Herrell, John DiBartolo, James Winston, Jon Reed, and Amy Mager

 

Save Northampton Main Street has surveyed the Northampton Main Street business district to assess the number of businesses in favor or opposed to the city of Northampton’s redesign. In the media, city officials have touted that 50 businesses on Main Street are in favor of their redesign.

However, our findings clearly show that most downtown businesses are opposed to the current redesign plans by the city of Northampton. Our results show, of 100 businesses surveyed, 69 are opposed, while only two are in favor. Several businesses were not aware of the proposed changes and needed more information, and four businesses were neutral about the changes.

What was the most interesting was how businesses listed on the city’s list that were surveyed by our team were not aware they were on any list, let alone one that was published.

Additionally, Save Northampton read and analyzed the Toole Design report [detailing the Main Street redesign]. John DiBartolo of our group wrote a letter outlining these issues to the City Council in Northampton and the Mayor’s office. Some of these issues are:

• Traffic increase and travel time. This new design will create traffic jams and extended travel time for people traveling down Route 9 through Northampton for any reason. According to the city, the intention of the project is to slow down traffic for safety, and it was never an objective to keep travel time or improve traffic flow.

• Bike safety. This new design will create unsafe bike crossings at intersections without traffic lights and visibility issues with drivers, bikers, and pedestrians. According to the city, the current design’s internal lanes are 40% safer than other designs, including our suggestion of adjacent-to-traffic bike lanes with enhancements.

• Requested public meetings. The city refuses to meet with business owners and residents except individually. They claim to have had many in-person meetings during COVID, which were Zoom meetings. There was no city public hearing on this subject (only one Zoom hearing by the DOT). The city feels that their process was robust and inclusive.

• Comparing Northampton’s redesign to Concord, N.H. While the size of Concord and Northampton are relatively the same, Concord is set up as a grid, which Northampton is not. Northampton has no natural bypass for drivers who wish to bypass the Northampton shopping district. Furthermore, Concord has shared bike and vehicle lanes with no separate bike path and was always a one-lane-in-each-direction road. In Concord, they removed parking to create larger sidewalks and green areas. Concord’s main shopping district is not a state highway. Concord’s city officials conducted 50 meetings in person with concerned businesses and residents before deciding on their plan. Northampton had only 20 Zoom meetings, the last of which was both in-person and over Zoom.

• A new design alternative. Save Northampton has had numerous discussions with residents, businesses, and property owners and is currently working with an architect to provide the city with an alternative plan which can also receive the same funding and might be a bit less expensive.

We continue to hope the city of Northampton will call for a public meeting to access the city’s views on the current design, as our data indicates more residents are opposed than in favor of this design. Our Save Northampton Main Street petition currently has more than 2,000 signatures, mostly from Northampton, Florence, and Leeds residents and business owners.

 

Judy Herrell, John DiBartolo, James Winston, Jon Reed, and Amy Mager are members of Save Northampton Main Street.

Cannabis

A Banking Breakthrough?

 

Late last month, the U.S. Senate Banking Committee approved the Safe and Secure Enforcement and Regulation (SAFER) Banking Act, clearing the way for a floor vote. The bipartisan legislation, introduced by U.S. Sens. Jeff Merkley and Steve Daines, would allow financial institutions to do business with the legal cannabis industry without fear of running afoul of federal banking regulations. The legislation cleared the committee on a 14-9 vote.

The SAFER Banking Act would afford the cannabis industry better access to financial services that are currently unavailable or not reliably accessible, including depository services, electronic payments, and lending. Similar bipartisan legislation has passed in the U.S. House of Representatives seven times in previous congressional sessions, but has yet to receive a vote in the Senate. Last month’s committee vote clears a path for the bill to finally make its way to the Senate floor for a vote.

Aaron Smith

Aaron Smith

“The committee’s approval of the SAFER Banking Act gives hope to thousands of compliant, taxpaying businesses desperately trying to access the basic financial services other businesses take for granted.”

During the markup session, multiple amendments were offered. One would create a five-year sunset for the legislation unless a report from the Treasury Department certified that it had decreased the racial wealth gap and ameliorated other negative economic impacts of the war on drugs. This amendment ultimately failed.

Advocates are hopeful the Senate will approve the SAFER Banking Act given the strong bipartisan support. Seventy-six senators currently represent states that regulate the sale of cannabis for medical or adult use, including 28 Republicans.

“The committee’s approval of the SAFER Banking Act gives hope to thousands of compliant, taxpaying businesses desperately trying to access the basic financial services other businesses take for granted,” said Aaron Smith, CEO of the National Cannabis Industry Assoc. “This uniquely bipartisan legislation has the potential to save lives and help small businesses; it’s time for Congress to get it to the president’s desk without further delay.”

The Department of Health and Human Services and the Food and Drug Administration also recently made an official recommendation to move cannabis from Schedule I to Schedule III status in the federal Controlled Substances Act (see story on page 37), but that change would not affect the current banking situation for the industry.

The SAFER Banking Act is endorsed by the National Assoc. of Attorneys General, the National Assoc. of State Treasurers, the American Bankers Assoc., the Credit Union National Assoc., Independent Community Bankers of America, the NAACP, Americans for Prosperity, the United Food and Commercial Workers Union, and a bipartisan group of 20 state governors.

Smith noted that current banking regulations force cannabis businesses to operate in a very cash-heavy environment as they are unable to process credit cards and sometimes even unable to access depository services. The situation has led to numerous robberies and violent crimes targeting cannabis retail facilities and industry employees.

The bill would also open the door to greater business lending in the industry, providing access to capital that advocates say is sorely needed by small and independently owned cannabis businesses.

Laws to make cannabis legal for adults have passed in 23 states as well as the District of Columbia, while 38 states have comprehensive medical cannabis laws. Three in four Americans live in a state where cannabis is legal in some form.

“The vast majority of Americans now live in a state that is effectively regulating legal medical or adult-use cannabis sales,” Smith added, “but federal banking regulations are exposing millions to an unnecessary and completely avoidable risk of violent crime.”

Insurance

Addressing Unique Needs

 

Health New England is the sixth health plan in the country to earn the National Committee for Quality Assurance (NCQA) Health Equity Certification for Medicare, and the first in Massachusetts to earn the recognition for both its Medicare and commercial health plans.

Health New England received this certification for its Medicaid, Medicare, and commercial plans by demonstrating exceptional efforts in reducing health disparities and addressing the unique needs of diverse populations.

To earn NCQA Health Equity Certification, health plans must build an internal culture that supports health-equity work; collect and assess data to help create and offer culturally humble care, including language services; ensure that its provider networks are delivering culturally and linguistically appropriate care to meet individuals’ diverse needs; and identify and act on opportunities to reduce health inequities and improve care.

Richard Swift

Richard Swift

“We are committed to continually improving our efforts to reduce health disparities, eliminate barriers to care, and ensure equitable access to healthcare services for all.”

“At Health New England, we believe that everyone should have the opportunity to achieve their best possible health. Receiving Health Equity Certification from NCQA underscores our commitment to advancing health equity for our members and the communities we serve,” said Richard Swift, president and CEO of Health New England. “This achievement reflects the hard work and dedication of our entire team, as well as our ongoing collaboration with healthcare providers, community organizations, and members. We are committed to continually improving our efforts to reduce health disparities, eliminate barriers to care, and ensure equitable access to healthcare services for all.”

NCQA President Margaret O’Kane noted that “the prevalence of racial and ethnic disparities has been a barrier to improving the quality of healthcare of many Americans for too long. Organizations achieving Health Equity accreditation are leaders in closing this gap, and NCQA commends them for their dedication.”

NCQA Health Equity Certification debuted in late 2021. Massachusetts will require health plans to obtain the certification for their Medicaid (MassHealth) plans by 2025. To ensure equity for all members, Health New England led an organization-wide strategy to achieve the certification for all plans.

“We believe that all customers deserve fair and equitable access to care and services no matter what type of health plan they have,” said Shelly McCombs, Quality and Accreditation manager for Health New England. “We are not just looking at whether people have physical health problems like diabetes. We are looking at the social determinants of health — the societal factors that affect people’s ability to be well, such as housing, healthy-food access, the availability of good jobs and childcare, and more. These are all factors that impact people’s ability to focus on their well-being.”

Such health-equity practices have had real-world outcomes. For example, Health New England worked to develop a program through its BeHealthy Partnership Plan with Revitalize Community Development Corp. and Baystate Health. Health New England identified the need to address social determinants of health to help diabetic members access healthy food. Members enrolled in the program receive a cooking appliance of their choice (microwave, slow cooker, or induction cooktop); a kitchen-supply bag; diet education; and 10 weeks of home-delivered, nutritious groceries specially curated for people with diabetes by registered dietitians. The groceries are culturally tailored and feature foods that promote a carbohydrate-controlled, therapeutic diet.

Health New England has made an organization-wide commitment to health equity, McCombs said, and continues to work with the healthcare practitioners in its network, community organizations, and other stakeholders to provide culturally humble care, identify health inequities, and bridge gaps. NCQA Health Equity Certification has helped Health New England earn a four-star overall health-plan rating from NCQA for commercial and Medicaid plans.