montana automobile dealers associationfiles.constantcontact.com/ec176d7f501/d25f3688-b91... ·...

The Montana Auto Dealers trust has been around for over 50 years. Because of the increased cost of healthcare nationwide in the last several years, we added plans, raised deductibles and increased premiums. In the last several years the MADA insurance trust has lost several million dollars due to extraordinarily high hospital claims. The MADA needed to do something drastic or the trust would have gone out of business, leaving us with no choice but to pay considerably more for healthcare in the marketplace. Our consultant, the Leavitt group, introduced us to a company named ELAP. ELAP analyzes, audits and reprices hospital claims. ELAP defends balance billed claims with a staff of lawyers: How can hospitals justifiably charge employers and their workers so much more than they accept from Medicare? How can hospitals bill $30 for an aspirin? How can employee-patients consent to prices they will never see until after they’ve been discharged? Our Trust was the first in Montana to utilize ELAP. Although it has been a very challenging 21 months for everyone regarding healthcare costs and claims, ELAP helped get the hospitals to the table to talk about transparency and sign direct contracts, which saved the trust a substantial amount of money.

Through the ELAP program, we have been able to sign a direct contract with the Northern Rockies Health Care Alliance (NRHA) which includes the following hospitals: St. Vincent’s in Billings, Holy Rosary in Miles City, St. James in Butte, and Central Montana Medical Center in Lewistown. If trust members use the NRHA hospitals, they will receive better benefits. The NRHA hospitals are committed to deliver integrated care and must meet quality targets. Members will also receive lower deductible and out-of-pocket limits when using any of the NRHA facilities. Also, members who receive care at one of the NRHA Hospitals will not be at risk of being balance billed. This means if you go to these hospitals, ELAP will not audit these claims and it will be business as usual as you receive care from these hospitals. We have also signed contracts with Rosebud Health Care Center in Miles City, North Valley Hospital in Whitefish, Great Falls Clinic and Community Hospital in Anaconda. The signed contracts with those hospitals allow our members to receive benefits and care as usual without the risk of being balanced billed. This will be an outstanding benefit to our members and we are continually working on negotiating contracts with many more Montana hospitals.

Because of the ELAP program we were able to give our plans a decrease in 2015 and a small increase of 5.71-8.71 % in 2016. According to the Commissioner of Securities and Insurance, the average rate increase in 2015 across all plans in Montana ranged between 22% and 34%. Our minimal increase in rates help keep more of your hard earned money in your pocket. The MADA will continue to work hard for members in our Trust to ensure that they have access to quality, affordable care.

With that being said, it’s that time of year again for open enrollment. The open enrollment period is November 1, 2016 – November 30, 2016. This is the time frame that your employees have to make a decision on what benefits they are going to elect and also for those who are not on the trust health plan to join. All changes will be effective January 1, 2017. If you have any questions, please do not hesitate to call the MTADA office at 406-442-1233. n

Montana Automobile Dealers Association

SEPTEMBER 2016 NEWS BULLETIN


Montana Automobile Dealers Association • 501 North Sanders • Helena Montana • 406.442.1233

THE MADA TRUST TODAY

Whitney Olson MTADA President

IN THIS ISSUENADA News p2

Chairman’s Message p3

Proposed Regulations p4

Legal Update p5

OSHA Forms p7

and more!

2



SEPTEMBER 2016 MTADA NEWS BULLETIN

DIRECTOR’S MESSAGE:

NADA President Peter Welch Testifies

Don Kaltschmidt NADA Director

at House Committee Hearing on Fuel Economy and GHG EmissionsWASHINGTON – Peter Welch, president of the National Automobile Dealers Association (NADA), urged lawmakers and regulators on Thursday to keep the issue of affordability at the forefront of the debate over increasing fuel-economy standards for new cars and trucks.

At the House Energy and Commerce joint subcommittee hearing on the Midterm Review for CAFE standards, Welch was one of several industry leaders who stressed that consumer affordability is the No. 1 factor to determine whether the government’s fuel-economy and greenhouse gas reduction goals will be achievable.

Here’s an excerpt of Welch’s oral testimony at the committee hearing:

“In America, motor vehicles are not luxury goods. Af-fordable transportation is critical to personal mobility and freedom; essential to individual economic empower-ment; and a key driver of national productivity. Cars and trucks open up employment and housing opportunities that many Americans would not otherwise enjoy.

When it comes to decisions that affect the environment, local dealerships are providing their customers with unparalleled choices. In addition to incredibly efficient internal combustion engine vehicles, franchised dealers currently have on their lots over 75 different models of hybrid, plug-in electric and battery electric vehicles. Toy-ota dealers now even offer fuel-cell vehicles for sale. Local dealerships consistently educate buyers on the value of these technologies, and on how these vehicles can fit into their lifestyles.

The No. 1 priority at every new-car dealership is to serve its customers by providing them with the choices they want and at prices they can afford. Every one of our customers deserves to be able to purchase a vehicle that’s right for them.

This means that during the mid-term review, careful thought needs to be given to keeping the cost of new vehicles reasonable and to ensuring that people can still afford to buy the cleaner, greener and safer car or truck

they really need or want. Washington should not make personal mobility so expensive that it is no longer available for average Americans.

Consumers finance more than 90% of all new-vehicle purchases. When regulations drive-up the price of vehicles, fewer of our customers will be able to qualify for a car loan. The average price of a new vehicle is currently $34,250, with an average monthly loan payment of $510. This, with historically low interest rates currently averaging 4.2%, but longer and longer loan terms that now average 68 months. Since 2005, the percentage of personal income necessary to purchase a new vehicle has risen from 9.5% to 12.4%. This already puts a new-vehicle purchase beyond the reach of millions of Americans.

That’s why affordability is everything. We need to ensure that people can buy the cars they want or need, and make it possible for average Americans to afford cleaner new cars and trucks.

If moves here in Washington force our customers out of new cars because the technology needed to attain the 2022 - 2025 regulatory targets raise loan payments by $50 or $60 per month, many of our customers will be forced to drive less safe, less efficient and dirtier used cars and the CAFE/GHG regulations will have become counter-productive.

Let me be clear about one thing: America’s new-car deal-ers are not on opposite sides of this debate. Dealers are in favor national policies to reduce GHG emissions, increase fuel efficiency and promote energy independence. What we are standing up for is affordability and to make sure that our customers – your constituents – are put first.

An approach that enables more of our customers to purchase affordable new cars and trucks will produce a winning scenario for everyone: dealers, manufacturers and the driving public.

If we work together, we have a perfect opportunity during the midterm review to ensure that our customers have access to clean, efficient new vehicles at affordable prices.” Source: NADA n

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CHAIRMAN’S MESSAGE:

Support NADA’s Baton Rouge Flood Relief Efforts

Jeff Carlson 2016 NADA Chairman

On August 15, the residents of Baton Rouge, Louisiana, woke up to the worst flood disaster in the United States since Hurricane Sandy. As much as 22 inches of rain fell in a single weekend. More than 140,000 families were displaced in the flooding, and an estimated 1,500 dealership families were forced to evacuate their homes. Our fellow Baton Rouge dealers, their staffs and their families need help.

I visited Baton Rouge recently and it was heartbreaking to see the devastation in the area. I walked past shoulder-high piles of destroyed furniture, scattered personal possessions, drywall and other debris. Many people lost not only their homes and businesses, they lost their safety and security too.

Immediately after the flooding, NADA mobilized and acted. The NADA Foundation’s Emergency Relief Fund was created as a critical resource for those in need after times of emergency and natural disasters.

Thanks to the support and donations of individuals, dealerships, dealer associations and our industry partners, the Foundation to date has distributed $500,000 in relief checks to more than 400 dealership families affected by the Baton Rouge flooding. But there is still so much more to do. The need for financial assistance is great and it will last for many months to come.

On behalf of NADA and the Foundation, I am asking fellow dealers to help by making a tax-deductible contribution to the Emergency Relief Fund today. With a $1,000 donation, you can “adopt” a dealership family in Baton Rouge and help to make sure they have resources during this challenging time of rebuilding. NADA’s ultimate goal is to raise $2 million for our Baton Rouge relief efforts.

Established in 1992, NADA’s Charitable Foundation has distributed millions of dollars to dealership families in times of need. Dealers can apply for aid on behalf of their employees. NADA picks up all

administrative costs for this fund, and all money donated to the Emergency Relief Fund goes directly to the dealership families.

I would like to thank everyone for their support throughout the nation. Dealers have always come together during challenging times and when we need each other the most; this is no different. I am grateful for all the support you’ve shown to those in Baton Rouge and all that you’ve done to help our fellow dealership families.

Please continue to join us in our Baton Rouge Relief efforts today so that the city can rebuild and re-open better than ever before. Visit nada.org/EmergencyRelief to donate today and learn about the Baton Rouge Relief Efforts or call 703.821.7102.

Personal or corporate checks can be made payable and mailed to: NADCF Emergency Fund, c/o NADCF, 8400 Westpark Drive, Tysons, VA 22102.

Jeff Carlson is 2016 NADA chairman and a Ford and Subaru dealer in Glenwood Springs, Colo. n

Carlson is chairman of the National Automobile Dealers Association and a Ford and Subaru dealer in Glenwood Springs, Colo.

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Dealers who are considering making gifts of family owned dealership or related business entities that would be eligible for valuation discounts should consult with their tax advisor about whether to act quickly to make those transfers prior to the regulations being finalized. The IRS has issued proposed regulations that would significantly impact many valuation discounts. These discounts are one of the most effective methods used by dealers in estate planning. Crowe Horwath LLP has created a brief summary of this development shown above. Please contact NADA’s Paul Metrey ([email protected]) if you have questions or would like additional information.

The IRS has issued proposed regulations that are intended to disallow or significantly curtail many valuation discounts. These discounts are one of the most effective methods used by dealers in estate planning. The proposed rules would apply to the valuation of gifts to family members and the value of any dealership or related business owned at death if the entity is controlled by members of the same family. The proposed rules would apply when family members own either more than 50 percent of the voting rights or 50 percent of the equity of the entity. Attribution rules apply for stock or partnership interests held inside other corporations, partnerships, or trusts. Under the proposed rules, members of the same family include:

n The donor of a gift (or decedent at death);

n The donor’s spouse;

n Ancestors and lineal descendants of either the donor or spouse;

n The brothers and sisters of the donor; and

n Any spouse of an ancestor, lineal descendant, brother, or sister.

Under the proposed rules, certain provisions that limit the rights of an entity’s owner would be disregarded and ignored when determining the value of the entity. Another type of provision that would be ignored under the proposed regulations is one that limits the value of an entity to an amount less than what the IRS calls the “minimum value.” The “minimum value” is the net equity of the entity (fair market value of the assets minus

liabilities) multiplied by the percentage ownership. These provisions have the effect of disallowing discounts for lack of control (“minority discount”) or lack of marketability with respect to an ownership interest.

The proposed regulations also contain a provision that would increase the value of a decedent’s estate if, within three years prior to death, the decedent engaged in a transaction that had the effect of changing the decedent’s ownership from a majority control to a minority ownership position.

If adopted, the proposed rules will take effect after they are finalized. An IRS hearing on the proposed regulations is scheduled for Dec. 1, 2016, which means the effective date is likely to be sometime in 2017. Therefore, taxpayers who are considering making gifts of family owned dealership or related business entities that would be eligible for valuation discounts should consider acting quickly to make those transfers prior to the regulations being finalized. n

Joseph A. Magyar CPA Partner, Crowe Horwath LLP Office: 813.209.2435 | Cell: 813.758.5724 [email protected] | www.crowehorwath.com

The foregoing is offered for informational purposes only and is not intended as legal or accounting ad-vice. Consult your tax practitioner for tax planning and compliance guidance specific to your business.

Proposed Regulations Would Limit Valuation Discounts for Gift and Estate Taxes

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LEGAL UPDATE

In the world we live in today, we all need to be on guard of those scammers trying to defraud us. We have all seen those emails that we have inherited millions of dollars or won a trip to some exciting place. Your dealership is not immune from scammers either. Unfortunately, it’s not a question of IF your dealership will be visited by a fraudulent customer (the “Defrauder”), but rather WHEN. The best way to protect your dealership is to be aware of the Defrauder’s tactics, implement prevention measures, and respond appropriately in the event a scam sale occurs.

The best prevention measure is to make your sales staff aware of the Defrauder’s techniques and common tactics. The Defrauder is very educated and knowledgeable about your inventory and your dealership. Most dealerships have their inventory online where it can be viewed, and the Defrauders can pre-select what they know they can profit from. Additionally, they can track the length of time the vehicle has been in your inventory, which will be an indicator of how eager your sales staff will be to move the vehicle. The Defrauder will also know your staff has sales goals and that the average sales person has more pressure to make a sale at the end of the month, quarter, or year.

They are sophisticated regarding the transaction; they know:

n You have less opportunity to verify information in the evening and on weekends.

n When your dealership has less support staff.

n When your staff is too busy to have time for proper review of the deal and documents.

n The sales process (and maybe better than the average sales person).

n What questions your staff will ask and what documents will be requested.

n What products to buy, to get the sales person to push for the sale that otherwise might not be approved.

The Defrauder will have the right answers to all of the questions and the requested documents ready to hand over. Defrauder can obtain

fraudulent documents off of the internet with relative ease and at very little cost. They can create pay stubs, W-2s, utility bills, rental agreements, insurance cards, and other necessary documents.

The best prevention is training. Train your staff on the common indicators of fraud; the Defrauder will likely:

n Have no trade-in vehicle.

n Have little to no personal investment in the deal.

n Have the minimal down payment.

n Have a down payment with a starter check or cashier’s check.

n Spend little time negotiating the vehicle price.

Train staff to review all of the documents provided for both the form of the document and the information contained in the documents, does the document look right? Be sure to question anything that does not look right. Compare that information with the credit application and credit report to be sure information such as date of birth, social security number, address, phone number, and place of employment are consistent on all documents and applications. Also make sure any information asserted verbally is verified.

Additionally, make sure you have someone at the dealership responsible for distributing fraud alerts to all staff and make sure to notify MTADA of any scam, so MTADA can distribute that information around the state quickly. Working together is the key to minimizing the impact of a Defrauder.

Remember, the Defrauder’s goal is to leave your dealership with a vehicle. They won’t care about the type of vehicle, how long the tags will be good, or how long it will take your dealership to discover the transaction was a fraud. They just want a vehicle. The Defrauder will leave nothing behind, and the dealership will be left without a vehicle. n

Protecting Against the Fraudulent Customer

Craig D. Charlton MTADA General Counsel

6




OSHAForms for RecordingWork-Related Injuries and Illnesses

What’s Inside…In this package, you’ll find everything you need to complete

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General instructions for filling out the forms in this package

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OSHA’s 301: Injury and Illness IncidentReport

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Dear Employer:This booklet includes the forms needed for maintaining

occupational injury and illness records for 2004. These new forms havechanged in several important ways from the 2003 recordkeeping forms.

In the ,OSHA announced its decision to add an occupational hearing losscolumn to OSHA’s Form 300, Log of Work-Related Injuries andIllnesses. This forms package contains modified Forms 300 and300A which incorporate the additional column M(5) Hearing Loss.Employers required to complete the injury and illness forms must beginto use these forms on January 1, 2004.

In response to public suggestions, OSHA also has made severalchanges to the forms package to make the recordkeeping materialsclearer and easier to use:

• On Form 300, we’ve switched the positions of the day countcolumns. The days “away from work” column now comes beforethe days “on job transfer or restriction.”

• We’ve clarified the formulas for calculating incidence rates.

• We’ve added new recording criteria for occupational hearing lossto the “Overview” section.

• On Form 300, we’ve made the column heading “Classify theCase” more prominent to make it clear that employers shouldmark only one selection among the four columns offered.

The Occupational Safety and Health Administration shares with youthe goal of preventing injuries and illnesses in our nation’s workplaces.Accurate injury and illness records will help us achieve that goal.

December 17, 2002 Federal Register (67 FR 77165-77170)

Occupational Safety and Health Administration

U.S. Department of Labor



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2016 MTADA Board of Directors

PRESIDENT Whitney Olson Bison Motor Co Great Falls 406-727-2552

PRESIDENT-ELECTChuck Notbohm Notbohm Motors Miles City 406-234-4480

VICE PRESIDENT Eric HendricksonSubaru of ButteButte406-676-4420

CHAIRMANJoe Billion Billion Auto GroupBozeman406-582-7777

NADA DIRECTOR Don Kaltschmidt Don “K” WhitefishWhitefish 406-862-2571

NADA PAC Toby Hubbard Denny Menholt University Motors Missoula 406-721-4900

EXEC. VICE PRESIDENT Bruce Knudsen MTADA Helena 406-442-1233 cell: 406-461-7680

DIRECTORSJim Peterson Valley Ford Kalispell 406-755-3673

Wade RehbeinRehbein FordPlains406-826-3381

Eric HenricksenSubaru of ButteButte406-676-4420

Tony Pierce Snowy Mountain Motors Lewistown 406-538-4014

Whitney Olson Bison Motor Co Great Falls 406-727-2552

Joe Billion Billion Auto Group Bozeman 406-582-7777

Chuck Notbohm Notbohm Motors Miles City 406-234-4480

Garry BraykoArchie Cochrane MotorsBillings406-656-1100

Sandi TylerKarl Tyler Chevrolet and CadillacMissoula406-721-2438

OFFICE STAFF Debbie Jean Office ManagerMTADA406-442-1233Cell: 406-461-6333

Kelsey Wandke Director of Dealer Ops.MTADA406-442-1233Cell: 406-439-2692

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