Daily Business Report-Dec. 20, 2019

Covered California director Peter Lee in Los Angeles (Photo courtesy of Covered California)

An Affordable Care Act success

Dan Morain | CalMatters

California’s version of the Affordable Care Act is experiencing significant enrollment increases, while participants’ health is improving and costs are being contained. Such was the message put out Wednesday by Gov. Gavin Newsom and Peter Lee, who oversees Covered California.

California extended the deadline to Friday for signing up for coverage starting Jan. 1.

Fueling a surge in new enrollees: Newsom and legislators decided to use state tax money to subsidize premiums of Californians whose income makes them ineligible for federal subsidies.

Newsom’s predecessor, Jerry Brown, did not take that step.

Some facts, provided by Covered California:

• California experienced the biggest drop in uninsured people of any state.
• In 2013, 17 percent of Californians had no health insurance.
• Now, 7.2 percent of Californians are not insured. Many of them are ineligible because they are undocumented immigrants.
• Only 3 percent of Californians who are eligible for health insurance are not insured.
• Premiums will rise 0.8 percent.

Meanwhile: The U.S. 5th Circuit Court of Appeals, with jurisdiction over Southern states, on Wednesday declared the Affordable Care Act requirement that people buy health insurance—the individual mandate—is unconstitutional.

That ruling doesn’t impact California for now, though Newsom said President Trump is “hellbent” on gutting the law.

Unaffected: California lawmakers approved a state-only individual mandate, imposing a state tax penalty of $2,000 for a family of four for failing to buy health insurance.

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An Affordable Care Act defeat

Attorney General Xavier Becerra vowed Wednesday to appeal an appellate court decision striking down the individual mandate requirement that Americans carry health insurance.

Becerra, who helped write the law a decade ago when he was in Congress, is taking the lead on behalf of states controlled by Democrats in defending the Affordable Care Act against a broad legal challenge.

On behalf of Republican states, Texas Attorney General Ken Paxton seeks to have the entire entire law declared unconstitutional. The Trump administration sided with Texas and refuses to defend the law.

On Wednesday, the U.S. 5th Circuit Court of Appeals in New Orleans handed Paxton and Trump a partial victory.

By a 2-1 margin, the appellate court judges concluded that the mandate that people buy health insurance was rendered unconstitutional in 2017 when Congress, then fully controlled by Republicans, passed Trump’s tax cut legislation that eliminated the penalty for failing to be insured.

The judges left the remainder of the Affordable Care Act in place. For now, federal law requires that insurance companies provide coverage for people who have preexisting conditions, offer mental health care coverage, and let young adults up to age 26 stay on their parents’ health plans.

Judicial appointments: Presidents George W. Bush and Trump appointed the two judges who struck down the individual mandate. President Jimmy Carter appointed the dissenter.

Becerra intends to file an appeal to the U.S. Supreme Court:

“It’s time to get rid of the uncertainty.”

Money matters: Becerra’s political operation emailed a fundraising appeal late Wednesday citing the ruling and urging people to “chip in today to stop President Trump’s reckless Republican agenda.”

— Dan Morain | CalMatters

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 Alvarado Hospital celebrates completion

of Emergency Department expansion

San Diego-based general contractor Pacific Building Group has completed construction of Alvarado Hospital Medical Center’s expanded emergency department. More than 100 guests including hospital staff, construction professionals, local officials and community members gathered to celebrate the recent unveiling of the 21,000-square-foot facility.

The new emergency department is an addition to the original hospital building built in 1972, and replaces a much smaller 12-bed space. The updated facility owned by Prime Healthcare Services Inc. has 20 beds on the first floor, as well as a designated staff area and shell space for future expansion on the second floor. Additional improvements to the facility include an enclosed cafeteria courtyard, separate entrances to accommodate different types of emergencies, and enhanced connectivity to county EMS for inbound patients.

The comprehensive department serves as a certified heart attack STEMI center, certified primary stroke center and as an accredited geriatric emergency department. The new design features a color scheme with contrasting colors, and improved accessibility to meet the needs of elderly patients.

The construction team included more than 50 local subcontractors assembled by Pacific Building Group.

Robin Gomez is Alvarado Hospital’s chief executive officer.

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Encinitas Introduces the first of three

plastic-waste reduction measures 

The city of Encinitas has introduced the first of three plastic waste reduction measures to bring the city closer to being a single-use plastic-free community. In a unanimous vote, the City Council moved to expand the current expanded polystyrene ban, adopted in November 2016, to include additional restrictions on the use and distribution of single-use plastic straws and utensils.

The first phase of Encinitas’ ordinance, effective Feb. 22, 2020, requires the distribution of beverage straws and plastic utensils only upon request by a customer or upon offer by a food provider, including fast food and takeout. A complete prohibition of the distribution of plastic beverage straws by a food provider will take effect Aug. 1, 2020. The ordinance also prohibits the distribution of plastic utensils and straws at city facilities, city-managed concessions, city-sponsored or co-sponsored events, city permitted special events on city property and all franchisees, contractors, and vendors doing business with the city. Adoption of the new ordinance is expected to take place on Jan. 22, 2020.

The second and third phase of the expansion of their current polystyrene ban, expected to be introduced and adopted in 2020, will include the prohibition of plastic beverage containers at city facilities and events and the prohibition of retail sale of expanded polystyrene, plastic straws and plastic utensils.

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County awarded $2.5 million to house

veterans experiencing homelessness

The county Health and Human Services Agency has been awarded an annual $2.5 million federal grant to fund housing vouchers for veterans who are experiencing homelessness.

The $2,520,346 grant from the U.S. Department of Housing and Urban Development (HUD) will allow the county to issue housing vouchers to 175 unsheltered veterans in San Diego County.

The funds are administered through the Veterans Affairs Supportive Housing program, or VASH, a collaborative effort between HUD and the U.S. Department of Veterans Affairs. VASH provides rental assistance, ongoing VA case management and supportive services, including drug and alcohol counseling and finance education to veterans without a stable home.

According to the 2019 Point-In-Time homeless count, about 14 percent of the local homeless population has served in the military. Veterans are more likely than civilians to be homeless due to higher rates of traumatic brain injuries and Post-Traumatic Stress Disorder.

The $2.5 million grant supplements federal funding the county has already received under VASH. Overall, the county’s VASH program has assisted more than 1,000 veterans in finding a place to live.

Information on how to apply for these vouchers can be found online, or by calling (877) 478-5478. The county is also actively seeking landlords interested in housing veterans selected for the vouchers.

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Mission Federal Credit Union promotes

Vince Nowicki as senior vice president

Mission Federal Credit Union has promoted Vince Nowicki as senior vice president, real estate lending. Nowicki, who joined Mission Fed in 2011, has 26 years of experience in consumer and residential mortgage lending including retail, wholesale, and bulk acquisitions.

“I am very pleased to announce Vince’s promotion to Senior Vice President, Real Estate Lending,” said Debra Schwartz, president and CEO of Mission Fed. “Since Vince came to us in 2011 as manager of the Real Estate Department, he has moved through the ranks taking on additional responsibilities along the way.”

Nowicki is currently responsible for Originations, Loan Servicing, Secondary Marketing, Indirect Auto Lending and Leasing as well as Insurance Services. Through Mission Fed’s CUSO, Nowicki helped create a captive Escrow Company to serve Mission Fed’s members and partners and currently serves as director of operations.

Prior to his tenure at Mission Fed, Nowicki was owner-operator of a small mortgage bank in Carlsbad that offered a menu of home loan products including FHA and VA.

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NAIOP San Diego announces

2020 Board of Directors

NAIOP San Diego, the Commercial Real Estate Development Association, will install Lowe Senior Vice President Todd Majcher as its 2020 president.

Majcher transitions from his role as co-chair of NAIOP San Diego’s legislative committee and will continue to support the work of the committee as members seek to understand and participate in several major election year issues in 2020, including California’s proposed revisions Proposition 13, advocating for housing availability and affordability and improving the speed and certainty in the entitlement/permit process within the City of San Diego.

Also important to Majcher is expanding NAIOP’s ongoing advocacy and diversifying its membership. “I think it is important that our membership profile represent the eclectic mix of employees and employers active in San Diego’s real estate development industry,” said Majcher.

The 2020 NAIOP San Diego board members also include:

President Elect – Eric Hepfer, Hines

Immediate-Past President – Adam Seery, Harvest Small Business Finance

Treasurer – Gary Katz, Presidio Property Trust

Executive committee – Hack Adams, Westcore

Executive committee – Kelly Moden, CHW

Executive committee – Lauree Sahba, San Diego Regional EDC

Executive committee – Jeff Stoke, Procopio

National board rep/board member – Derek Hulse, Cushman & Wakefield