Issuu

New Board Leader

Garden City and Northville Jeweler Orin Mazzoni, Jr., takes over as chair of MRA’s 2016-17 Board of Directors. Page 2

It’s the Law

Baby Boomers and Medicare

“Trickle-down legislation” poses potential problems for Michigan businesses, but MRA is up to the challenge. Page 9

If you’re a Baby Boomer turning 65 – and 10,000 do every day! – you can get help from MRA’s expert on all things Medicare. Page 12

® October 2016 Vol. 41 No. 5

Prohibition of local taxes on bags, other containers wins key legislative vote Legislation to prevent local governments from taxing or banning plastic bags and other carryout containers has cleared another important hurdle in the Michigan Legislature. The House Commerce Committee voted on September 21 in favor of Senate Bill 853, legislation to preempt local ordinances that ban or require a fee on plastic bags and other containers. The bill was approved earlier by the Senate and now goes to the full House. Sen. Jim Stamas (R-Midland) introduced the legislation on March 15 following news reports that at least two local governments were considering measures against plastic bags. This summer, Washtenaw County approved a 10-cent per plastic bag tax on consumers that takes effect next April. The ordinance requires local merchants to enforce and collect the tax. Amy Drumm, MRA vice president of government affairs, testified in favor of the ban on local ordinances during the House committee hearing on the legislation. She stressed the importance of ensuring there is consistent policy for businesses to follow rather than a patchwork of local regulations that increase costs for retailers and consumers through new taxes. Troubling Precedent Committee members listened as MRA and other business groups explained the harm and uncertainty that local regulations on commerce place on businesses and the importance of keeping choice in the checkout lane. “The Washtenaw County bag tax was the first of its kind in Michigan and sets a troubling precedent,” Continued on page 8

The official publication of Michigan Retailers Association

www.retailers.com

Sales rise during Buy Nearby event Retail sales across Michigan rose significantly during the first “I Buy Nearby Weekend” celebration. An analysis of more than 1,000 Michigan Retailers Association members’ credit card transactions during

October 1 and 2 found that samestore sales increased by a total of 24 percent on a year-over-year basis. Most areas of the state experienced gains. Especially strong sales were recorded in Southeast Michigan in and

around Detroit, as well as in Southwest Michigan, Flint, Bay City and the Upper Peninsula in and around Marquette. “While we can’t credit all of those gains to our Buy Nearby campaign, it obviously contributed to the positive results,” said James P. Hallan, MRA president and CEO. In a separate email sur vey of retailers, most of whom said they participated in I Buy Nearby Weekend, 39 percent of the respondents said their weekend sales were “much better” or “better” than the year before. Only 10 percent said sales were “worse” or “much worse.” Special Promotions Weekend promotions by retailers and communities ranged from special Continued on page 6

Andrew Gemmen, grandson of the founder of Gemmen’s Home & Hardware, always knew he wanted to work in the family business. Photo by David Trumpie

over the business from his father, Larry. It’s keeping a laser focus on the hardware store’s formula for success. “It can be summed up with our store motto, which is: ‘Serving others as we would like to be served,” Andrew said. “We provide both a product and a service. The business we’re really in is solving other people’s problems.” The Gemmens began doing that when Al gave up his IGA store to buy a small hardware and plumbing supply business. Within three years, he transitioned the shop to a conventional hardware store and moved it a mile away to a 4,000-square-foot space he built at the store’s current location. Semi-active in the business until

Fifty-six candidates for the Michigan House of Representatives in the November 8 election received the “Friend of Retail” designation from Michigan Retailers Association. The designation means the candidates generally understand the challenges facing the retail industry in Michigan and support retail’s positions on major legislative issues. The list was approved by the Association’s Legislative Committee and is based on an analysis of voting records and candidate questionnaires. The six highest scoring candidates also received MRA’s outright endorsement. “The Friends of Retail have demonstrated through their votes on key issues and their answers to critical policy questions that they understand the importance of the retail industry to Michigan’s economy,” said James P. Hallan, MRA president and CEO. “We look forward to working with them to continue to make job-creating improvements in Michigan’s retail business climate.”

Continued on page 8

Hardware’s success formula unchanged over generations by Doug Henze Much has changed at Gemmen’s Home & Hardware in Hudsonville since Andrew Gemmen’s grandfather, Al Gemmen, started the business in 1955. The store’s size, range of products and buying practices are light years away from what they were in the middle of the past century. But one thing remains exactly the same, said Andrew, the 40-year-old co-owner and president who took

56 House candidates earn ‘Friend of Retail’

Michigan Retailer

A positive message worth repeating by James P. Hallan, MRA President and Chief Executive Officer An abbreviated version of this advice to Michigan shoppers appeared in The Detroit News during the run-up to I Buy Nearby Weekend. It bears repeating. Shoppers, go ahead and ignore, for just a moment, all the promises and plans put forth by political office seekers in this never-ending and often ugly election season. Here’s something you can do, right now, to make a positive difference in the lives of everyone around you while making your community and state stronger. This “something” doesn’t require a new government program. It doesn’t rely on additional federal or state spending. It doesn’t need any paperwork, permits or licenses. It only requires you to think for a moment before you make your next retail purchase. When it comes to shopping, your choices of merchandise are seemingly endless. But when it comes to the mode of shopping, you have essentially two choices. One, you can sit at your computer or use your phone or tablet to buy from a giant, faceless company with no actual stores in Michigan. Or two, you can buy nearby from a store or a website located in Michigan. When you choose the first option, the dollars you spend leave your community and your state. As far as the Michigan economy is concerned, as well as the livelihoods of all your friends and neighbors, those dollars don’t do a bit of good. When you choose the second option, about half of all the dollars you spend remain in your community and state, where they recirculate many times over. They support local businesses that provide jobs, pay taxes and support community projects. They pay wages for Michigan workers, who use the money to pay for goods and services from businesses in Michigan. They help pay for vital services such as roads, schools and police and fire protection. They make life better for everyone here. 75,000 New Jobs Michigan economists say our residents send more than nine billion of their shopping dollars out of the state and into the pockets of companies outside Michigan every year. If those

dollars were spent in Michigan, at retail businesses that invest in Michigan and employ Michigan workers, they would create 75,000 new jobs throughout the state, and not just in retail. You, as a consumer, hold the key to this new, $9 billion economic stimulus program to help our communities and our state. All you have to do is Buy Nearby. Michigan Retailers Association launched the Buy Nearby campaign to encourage Michigan shoppers to do just that – make purchases from retail stores and websites in our state. And that’s why the campaign came up with “I Buy Nearby Weekend” on October 1 and 2 this year to give Michiganders the opportunity to explore all the great shopping in our communities and make a personal commitment to supporting businesses that support Michigan’s economy in a big way. I Buy Nearby Weekend is a good

reason to get out for a day of nearby shopping with family and friends. While out, watch for retailers who are offering special Buy Nearby promotions to make your shopping even more rewarding. You could even win a $500 gift card simply for shopping. Post photos on social media of yourself Buying Nearby that weekend, and be sure to use the hashtag #ibuynearby. If your photo is selected in a random drawing, you win a $500 gift card. There you have it. You have the power to make things better for your family, your friends, your neighbors, your town and your state without running for office or making a speech or television commercial. All you need to do is Buy Nearby.

www.retailers.com

Board of Directors: Orin Mazzoni, Jr.

Chair Orin Jewelers, Garden City

James P. Hallan

President and CEO Michigan Retailers Association

Becky Beauchine Kulka

Vice Chair Becky Beauchine Kulka Diamonds and Fine Jewelry, Okemos

Peter R. Sobelton

Treasurer Mondial Properties, Birmingham

William J. Hallan

Secretary Michigan Retailers Association

Dan Marshall

Past Chair Marshall Music Company, Lansing

Brian Ducharme AT&T Mobility

Ken Hayward

Grand Hotel, Mackinac Island

Joseph McCurry

Credit Card Group

Larry Mullins

Brandon Tire & Auto Service Center, Ortonville

Barb Stein

Great Northern Trading Co., Rockford

Joe Swanson Target Corp.

Thomas Ungrodt

Mazzoni elected MRA board chair Jeweler Orin Mazzoni, Jr., was elected chair of the MRA Board of Directors for 2016-17 and Becky Beauchine Kulka, also a jeweler, was elected vice chair during the board’s organizational meeting on August 23.

owner of Mieras Family Shoes, Grand Rapids, was re-elected chair of the Retailers Insurance Company Board of Directors. RIC policyholders elected one new director and re-elected three during their Annual Meeting, also held at MRA on August 23. In addition, MRA directors elected one new member and reelected four to the board of MRA subsidiary Michigan Retailers Services, Inc.

Officers Mazzoni is president of Orin Jewelers, Inc., which owns and operates stores in Garden City and Northville. He served as board vice chair the past two years. He was first elected to the board in 2007 and Joyce Gemmen Ayers is a past president of the Michigan Jewelers Association, Members of the Association elected a division of MRA. one new director and re-elected four Kulka is founder and CEO of during the MRA Annual Meeting the Becky Beauchine Kulka Diasame day at MRA headquarters in monds and Fine Jewelr y in Lansing. Continued on page 9 Jeff Joyce, vice president and co-

Mazzoni

Kulka

Hayward

Ideation, Ann Arbor

James Walsh

Meijer, Inc., Grand Rapids

D. Larry Sherman

Board Member Emeritus

Michigan Retailers Services, Inc. Board of Directors: Chad Ayers Allendale True Value, Allendale

Bo Brines

Little Forks Outfitters, Midland

Bill Golden

Golden Shoes, Traverse City

Emily Matthews

Potent Potables Project, Lansing

James P. Hallan Thomas B. Scott Publisher

Editor

Pat Kerwin

Design Manager

Publication Office: 603 South Washington Avenue Lansing, MI 48933 517.372.5656 or 800.366.3699 Fax: 517.372.1303 www.Retailers.com www.RetailersInsurance.com www.BuyNearbyMI.com

Subscriptions:

Michigan Retailer (USPS 345-780, ISSN 0889-0439) is published in February, April, June, August, October and December for $20 per year by Michigan Retailers Association, 603 South Washington Ave., Lansing, MI 48933. Subscription fees are automatically included in the Michigan Retailers Asociation membership dues. Periodical postage paid at Lansing, Michigan. POSTMASTER: Send address changes to 603 South Washington Ave., Lansing, MI 48933. The Michigan Retailer may be recycled with other white office paper.

October 2016

MICHIGAN RETAIL INDEX

Autumn sales outlook shows modest improvement percent reported no change. The results create a seasonally adjusted performance index of 50.8, up from 45.7 in July. A year ago August the performance index stood at 43.9. The 100-point index gauges the performance of the state’s overall retail industry, based on monthly surveys conducted by MRA and the Federal Reserve Bank of Chicago’s Detroit branch. Index values above 50 general-

Current

ly indicate positive activity; the higher the number, the stronger the activity. Looking forward, 56 percent of retailers expect sales during September–November to increase over the same period last year, while 12 percent project a decrease and 32 percent no change. That puts the seasonally adjusted outlook index at 71.6, up from 65.6 in July. A year ago August, the outlook

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index stood at 68. State sales tax receipts totaled $631.7 million in August, up 1.1 percent from August 2015. Complete results of this month’s Michigan Retail Index—including data on sales, inventory, prices, promotions and hiring—are available at www. retailers.com/mra/news/michigan-retail-index.html. The website includes figures dating back to July 1994.

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Michigan retailers’ autumn sales forecasts rose modestly following sluggish sales growth in August, according to the Michigan Retail Index, a joint project of Michigan Retailers Association (MRA) and the Federal Reserve Bank of Chicago. Retailers’ three-month projections moved up 6 points on the 100-point, seasonally adjusted index to return to June’s level after a dip in July. August sales moved up 5 points to 50.8, but barely broke into positive territory. Still, that appeared better than other states. U.S. retail sales fell 0.1 percent in August, according to the U.S. Commerce Department. “Consumer spending slowed across the nation,” said MRA President and CEO James P. Hallan. “Moving into autumn, we expect more positive retail numbers. Consumers have caught their breath now after a buying spree, and the underlying positives of the Michigan economy – including lower unemployment and lower gasoline prices – should push up sales.” The August Michigan Retail Index survey found 40 percent of Michigan retailers increased sales over the same month last year, while 42 percent recorded declines and 18

Seasonally adjusted diffusion index, calculated by adding the percent of respondents indicating increased sales and half the percent indicating no change, and then seasonally adjusting the result using the U.S. Census Bureau’s X-11 Seasonal Adjustment procedure. Index values above 50 generally indicate an increase in activity, while values below 50 indicate a decrease.

200 (millions)

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Be sure to complete your online survey each month!

Michigan Retailer

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New MRA director finds challenges exhilarating by Jean B. Eggemeyer

“It’s exhilarating to work at the Grand Hotel,” said Ken Hayward, executive vice president and managing director of the historic and world renown resort on Mackinac Island. “Every day is a different challenge, with a different group of guests.” Hayward loves challenges, one reason he’s looking forward to sharing his skills and unique experiences at the Grand with the Michigan Retailers Association Board of Directors. He was elected to the board at the Association’s annual membership meeting in August. “I think it will be a great opportunity to bring the perspective of a smaller, seasonal, family owned business – and the challenges we face – into board discussions,” he said. “I see it as a two-way street. I think I’m going to learn a lot more about the larger issues that are impacting retail.” Hayward is in charge of overall operations of the hotel, including sales and advertising. He has built his 31-year career there and credits the ability to be flexible – a skill he learned early, as a student athlete – as one of the most important keys to his success. While playing baseball for the University of Michigan, he captured career records for highest batting average, most runs batted in and most games played. He was captain of the team and, among other awards, was a “Big 10 Medal of Honor” recipient – a recognition of success in academics as well as sports – his final year at the school. “The skills I developed in college trying to survive as a Division I student athlete – managing time to get it all done, learning how to rise to challenges, and the importance of ‘team’ – all transitioned well to the hospitality business,” he said. Exceptional Service Hayward joined Grand Hotel as sales manager straight out of college in 1985. In his first season there, he quickly discovered that employees then, as now, are expected to fill any role in order to provide guests with exceptional service. “I worked the front desk for a couple of months, worked in convention services and did many other things that broadened my experience before moving into the sales office,” he said. He sees every day how the Grand’s owners established and maintain a program of legendary service. “The Musser family does hospitality their own way,” he explained, referring to the owners of the resort, both past and present.

and, in subsequent years, for more funding.” He believes Pure Michigan has proven its value many times over. “I’m very proud to have been part of that effort,” he said. “The Pure Michigan campaign has been wonderful for the state’s tourism industry and continues to pay dividends every year. The number of out-of-state visitors to Michigan grows every year.” Out-of-state visitors generally stay longer and, collectively, have a subModern Amenities stantial impact on the Grand Hotel has undereconomy, he explained. In gone many changes during addition to hotels, retail Hayward’s tenure. They instores, gas stations, resclude numerous additions to taurants, entertainment the structure, expansion of venues and many other golf facilities and establishsectors also benefit. ment of off-site restaurants. In 2015, 4.6 million trips The number of uniquely were made to Michigan designed guest rooms has as a result of exposure to grown from 286 to 390. the Pure Michigan camIn recent years, manpaign, according to Travel agement has focused on Michigan data. Out-of-state ensuring the “Grand Old visitors spent nearly $1.4 Lady” – as the 129-yearbillion at businesses across old hotel is affectionately the state. referred to – has the ame“Michigan is a worldnities that today’s guests class destination,” require. Hayward said. “We have Flat-screen televisions, a ‘product’ – great cities, wireless Internet service Ken Hayward oversees all operations of Grand Hotel. great museums, the natuand air conditioning have ral beauty of nor thern been added to the hotel’s Michigan, to name just a rooms within the last 15 few examples – that lives years. Updates such as up to our promotions, and these are no small feat, we’re getting the word out considering the structure to people farther away. is wood frame and boasts “There are a lot of people an iconic facade. who now have Michigan “Our goal is to keep an on their list of places to eye on the future and add Commission in 2005. go and who will come. As we add modern amenities, while keeping the He served as chair of the body more and more for people to do, tradition and ambiance of the grand, from 2008 to 2010 and was active in and if we continue to tweak Pure old, wood structure,” he explains. the effort to develop and launch the Michigan to keep it fresh and in “We can’t ask guests to pay our overwhelmingly successful “Pure tune with what we have to offer, rates and not provide that level of Michigan” tourism campaign. I think our economy will continue comfort.” It was an endeavor that involved to benefit.” Another accomplishment Hayward a lot of people, Hayward said, and Continuing to help build Michiis most proud of is helping the hotel if they had not come together, it gan’s economy is another reason reach and sustain an exceptional occould have been just another “great Hayward is excited to serve on the cupancy level. idea that never went anywhere.” He MRA board. “This year, we operated all of was part of the committee that con“The challenge of any associaAugust and September without a ducted initial interviews with the tion is to effectively represent all vacant room,” he said. “Our average advertising agencies vying for the its members. I see service on the occupancy for the whole season is work, and then later lobbied the legboard as another opportunity to running 97 percent. islature for funding. think about challenges and opportu“I’m ver y proud of that be“We knew a good idea when we nities in a broader perspective, and cause, since business has been saw one,” he said. “Our industry, how they affect the retail economy so good, we’ve been able to imat the time, faced some serious overall.” prove services and amenities. It’s battles in a tough economy and we important to us that we take care knew we had to fight for a ‘piece Jean B. Eggemeyer is a freelance of this treasure.” of the pie.’ I, and a lot of people in writer based in Northwest Illinois and the industry, fought very hard to a former employee of Michigan RetailPure Michigan get state funding for the campaign ers Association. Hayward’s passion for the Grand “Their particular philosophy of running the business is focused on treating guests as if we’re welcoming them into our own homes. They are ‘old-school’ innkeepers: they’re here every day, eating with employees, interacting with guests.… “When you see the owner of the hotel greeting guests and picking a leaf up off the floor that has blown into the lobby, you know they live their philosophy.”

and the hospitality industry overall has opened up other opportunities, including an appointment by the governor to the Michigan Travel

“The Pure Michigan campaign has been wonderful for the state’s tourism industry and continues to pay dividends every year.”

October 2016

RETAIL TECHNOLOGY NEWS

Eager to find more good things around next corner John Mayleben CPP, is MRA senior vice president technology and new product development and a national expert on electronic payment processing. He is the first person in Michigan and among the first in the nation to receive the Certified Payments Professional designation from the national Electronic Transactions Association. In the immortal words of the father of English literature, Geoffrey Chaucer, “All good things must come to an end…” Since that was a statement from the tragic story of a couple during the siege of Troy, I have put a more positive spin on it: “All good things must end, to make space for better things to happen, because the best is yet to come.” Which is also my way of saying that after 30 years, 9 months and 22 days, I am retiring from Michigan Retailers Association at the end of this month. Well, sort of retiring, as I’ll explain in a moment. Great Ride Who would have thought I’d be lucky enough to have my first job out of college turn into such a wonderful career in both association management and the payments industry? It has been a pleasure helping retail grow stronger in Michigan. And it has been a great ride as Michigan Retailers has grown its merchant processing program from one state and $30 million in annual volume to all 50 states and $1.2+ billion (yes, billion with a “b”). During that time, I have had the pleasure of being part of the team that was able to turn MRA into a nationally recognized leader in the merchant processing business. The team has positioned the organization to be a leader with both Michiganbased associations and all of our 50 sister organizations representing retail interests across the nation. While here at MRA, I have witnessed merchant processing evolve from “knucklebusters,” warning bulletins and carbon slips to electronic terminals that take a chip card or allow you to use your smartphone to make a payment. My tenure here has covered an amazing span of innovation and change. Next Corner While I am sure there will be many things I will miss, at the top of the list are all the wonderful members of MRA and my co-workers. In the 30+ years here, I have been able to share the good times with co-

workers I consider both friends and family. I also have become friends with many of you, our members, and appreciate all of the time spent helping you with various issues about retailing and merchant processing. But I am also excited to see what is around the next corner in this grand journey we call life. For those who are curious, I am going to spend the next few years (at a minimum) traveling North America in my RV (named RVTHERE). My late wife, Linda, and I started RVing about 15 years ago. I plan to see, up close, some of those sights that I have spent the last 30 years flying over, or driving past, while on my way to business meetings. There will probably be some volunteer work in the future – maybe service as a docent at a history museum or lighthouse somewhere. I’m also looking forward to spending more time with both of my daughters, who have relocated to Texas, as they continue on their own career paths. I will watch, with excitement, the future growth and development that you all, as members, create with my coworkers at MRA in the coming years. I hope that someday I can say, “I was there in the beginning…” New Role And although I am retiring from MRA, I’ll still be available to provide assistance to members and the MRA team. One of the ways I will continue to help, and at the same time scratch the “itch” of missing everyone, is to take on a new role as consultant to MRA. I’m happy to be able to continue to use my knowledge and experience to help members successfully navigate the complexities of the merchant processing arena and help MRA maintain its industry leadership position. It’s also likely to include continuing to write this column about various aspects of technology and merchant processing. So even though I am leaving MRA, I’ll continue to be in touch in a number of important ways. And if you happen to have a long driveway, big backyard or large parking lot with an outdoor electrical outlet, as well as a landlord who allows RVs, don’t be surprised if I turn up at your business for a night or two. Safe travels to all!

From

Marquette Continued from page 1

merchandise and price discounts to special advertising sections in local publications and a virtual Pokémon hunt in downtown Marshall. Gov. Rick Snyder had issued a proclamation in honor of the weekend and the Michigan Senate declared it I Buy Nearby Weekend in Michigan. Buy Nearby Guy, the campaign mascot, helped kick off the weekend early by participating in a Thursday afternoon grand opening for UPtown Gifts in Ishpeming and a downtown stroll in nearby Marquette on Friday morning. His Saturday and Sunday schedule started in Monroe and included stops in Wayne, Northville, Royal Oak, Marshall, Birmingham and New Baltimore. “Buy Nearby Guy literally went the length of Michigan, from Marquette to Monroe, during I Buy Nearby Weekend to encourage shoppers to support their local communities and retailers who invest in Michigan,” Hallan said. Clockwise, from top: Trying pumpkin painting at Wayne’s Fall Festival; Hands-on at the Birmingham Farmers Market and thumbs up for the sweets vendor; Happy to help Wayne’s Main Street program; All creatures welcome at independently owned Pet Supplies Plus in Royal Oak; Monroe Mayor Robert Clark (right) and volunteers decorate downtown for the season. Photos by David Trumpie

Michigan Retailer

www.retailers.com

October 2016

“The response to the year-round campaign is positive everywhere he goes.” So far this year, the mascot has made more than 75 community visits and put more than 10,000 miles on the Buy Nearby van. Contest Winner The campaign is sponsored this year by DTE Energy. Supporting sponsors are AT&T and Retailers Insurance Company. Individual retailers and others also donated more than $1,000 to the campaign this year. Individual contributions to the campaign can be made on the Buy Nearby web-

site at BuyNearbyMI.com/donate. Michigan Retailers offered a $500 gift card prize for shoppers who entered a drawing by posting on social media a photo of themselves buying nearby during the celebration weekend. The winner was Julie Kowalewski, a former resident and schoolteacher who now lives in Maryland but comes back to Michigan regularly with her husband. She posted a photo of herself wearing the necklace she bought at Becky Beauchine Kulka Diamonds and Fine Jewelry in Okemos. “I was prompted to Buy Nearby because I am proud to be from Michi-

gan. I believe my coworkers are sick of how much I talk about it,” said Kowalewski. This was the first year for I Buy Nearby Weekend. Previously, the annual celebration was the first Saturday in October and was called Get Caught Blue-Handed Day. The event was expanded to a full weekend to give more shoppers the chance to participate, and the name was changed to better fit the Buy Nearby brand. Asked if the celebration should remain a weekend, 87 percent of survey respondents said it should. And 98 percent said they prefer the new I Buy Nearby Weekend name.

Clockwise, from top: Shoppers and entrepreneurs get in the spirit of downtown Marshall’s virtual Pokémon hunt; Shopping to live tunes at Birmingham Farmers Market; Stepping out from the behind the booth at New Baltimore Farmer’s Market; Tailormade stop in Monroe; Scarecrows are nearly blown away by excitement in Wayne; Helping a new U.P. retailer open the doors in Ishpeming.

Monroe

Michigan Retailer

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Candidates earn ‘Friend of Retail’ Hardware’s success formula unchanged Continued from page 1

Receiving MRA endorsements in the House races are incumbents: • Chris Afendoulis (R-73), Grand Rapids Township • Laura Cox (R-19), Livonia • Daniela Garcia (R-90), Holland • Tom Leonard (R-93), DeWitt Township • Jason Sheppard (R-56), Temperance • Rob VerHeulen (R-74), Walker. The complete list of candidates earning the Friend of Retail designation includes: District 13 - Frank Liberati (D-Allen Park) District 15 - Terrance Gerin (R-Dearborn) District 17 - Joseph Bellino Jr. (R-Monroe) District 19 - Laura Cox (R-Livonia) District 23 - Bob Howey (R-Trenton) District 24 - Steve Marino (R-Harrison Township) District 25 - Ronald Albers (R-Sterling Heights) District 25 - Henry Yanez (D-Sterling Heights) District 26 - Randy LeVasseur (R-Royal Oak) District 30 - Diana Farrington (R-Utica) District 32 - Pamela Hornberger (R-Chesterfield Township) District 38 - Kathy Crawford (R-Novi) District 39 - Klint Kesto (R-Commerce Township) District 40 - Michael McCready (R-Birmingham) District 42 - Lana Theis (R-Brighton Township) District 43 - Jim Tedder (R-Clarkston) District 45 - Michael Webber (R-Rochester Hills) District 49 - Phil Phelps (D-Flushing) District 51 - Joseph Graves (R-Argentine Township) District 52 - Randy Clark (R-Salem) District 56 - Jason Sheppard (R-Temperance) District 57 - Bronna Kahle (R-Adrian)

Continued from page 1

District 58 - Eric Leutheuser (R-Hillsdale) District 59 - Aaron Miller (R-Sturgis) District 61 - Brandt Iden (R-Kalamazoo) District 62 - John Bizon (R-Battle Creek) District 64 - Julie Alexander (R-Hanover) District 65 - Brett Roberts (R-Charlotte) District 67 - Leon Clark (R-Mason) District 68 - Andy Schor (D-Lansing) District 70 - James Lower (R-Cedar Lake) District 71 - Tom Barrett (R-Potterville) District 73 - Chris Afendoulis (R-Grand Rapids Township) District 74 - Rob VerHeulen (R-Walker) District 75 - Tommy Brann (R-Wyoming) District 78 - Dave Pagel (R-Berrien Springs) District 79 - Kim LaSata (R-Saint Joseph) District 80 - Mary Whiteford (R-Casco Township) District 81 - Dan Lauwers (R-Brockway) District 84 - Edward Canfield (R-Sebewaing) District 85 - Ben Frederick (R-Owosso) District 86 - Thomas Albert (R-Belding) District 88 - Roger Victory (R-Hudsonville) District 90 - Daniela Garcia (R-Holland) District 91 - Holly Hughes (R-Montague) District 93 - Tom Leonard (R-DeWitt Township) District 94 - Tim Kelly (R-Saginaw) District 97 - Jason Wentworth (R-Clare) District 98 - Gary Glenn (R-Larkin Township) District 99 - Roger Hauck (R-Mt Pleasant) District 100 - Scott VanSingel (R-Grant) District 101 - Curt VanderWall (R-Ludington) District 103 - Triston Cole (R-Mancelona) District 104 - Larry Inman (R-Williamsburg) District 106 - Sue Allor (R-Wolverine) District 107 - Lee Chatfield (R-Levering)

Bag tax prohibition wins key legislative vote Continued from page 1

Drumm said. “It was a signal that other local governments might also pursue bag taxes and bag bans at the expense of shoppers and retail businesses.” MRA is part of a coalition of business organizations working with lawmakers to enact the pre-emption bill. SB 853 follows the lead of other states, including Wisconsin and Indiana in the Great Lakes region, that have taken action to prevent a patchwork of local rules on containers, rules that place a burden on retailers and consumers.

“In order to preserve customer and retailer choice and eliminate problems from a patchwork of local packaging regulations, this bill would establish that the state is the only governmental body that could consider packaging regulations,” Drumm explained. A vote by the full House is expected when lawmakers return to Lansing following the November 8 election. The legislature’s “lame duck” session will begin in full force on November 29 and could run through December 22, according to the calendar set by legislative leaders.

his death four years ago, Mr. Gemmen sold the business to son Larry and business partner Mitch Newenhouse in the early 1980s. Larry retired in early 2015, while Newenhouse remains an active partner. Early Start Andrew began working in the store as a child. “I got my first paycheck back in 1989,” he remembered. “I was involved all the way through high school.” In those days, Gemmen did everything from pricing products and making deliveries to rekeying locksets. “Even if the store was closed, I could come in and get some hours fixing windows and screens,” he recalled. He really learned the business when he moved to the sales floor. With no Google or YouTube available to provide instructional videos, he relied on the experienced store staff to teach him. “Those guys were just an abundant wealth of knowledge,” he said, adding that he had another resource as well. “If I didn’t know how something worked, I’d ask the customer, ‘How are you using that?’” Gemmen took a break from the store from 1994 to 2000. He earned a business administration degree from Central Michigan University, worked in concrete construction and was employed by Target and Art Van Furniture. All along, he knew he was hardwired to work in the family hardware business. “The jobs I took were to expand my skills,” he explained. “I knew I always wanted to come back and work at the store.” Constant Curveballs Gemmen married a Hudsonville girl – Jennifer, now his wife of 16 years – and returned to the store as hardware department manager. He rose to general manager before beginning to purchase the store in 2013. It’s a business that’s constantly throwing curveballs, Gemmen said. But that’s what gets him out of bed in the morning. “As much as I may plan what I’m going to do one day, that can change in an instant,” he said. “My love for working with people and solving problems is where my passion is.” Three generations of that passion have sparked Gemmen’s success. The “neighborhood” store, which Gemmen estimated now stocks “tens of thousands” of products, has expanded to 42,000 square feet and a staff of 52. The company is part of the Do It Best cooperative, similar to Ace and True Value, that serves as wholesale supplier to its member owners. “We’ve had growing pains to be

sure,” he said. “We don’t know as many names as we’d like to.” Meeting the level of service customers expect means staffing up, and with the right people, Gemmen said. “We rarely bring on staff for what they know,” he said. “We bring them on for the type of person they are and their interest in helping others. “We like to see ourselves as the little big box.” Community Connection Gemmen’s also connects with customers through events. The store is a Little League sponsor and participant in the Urban HayDay fall festival. The store also holds a Pinewood Derby and brings in instructors for a hunting safety class. “Churches come in and sell baked goods, Boy Scouts sell their popcorn and Girl Scouts sell their cookies,” Gemmen said. “It’s really just being part of the community.” Gemmen is personally active with the local chamber of commerce and the downtown development group. Down time often means a hardware man’s holiday – working on the family home that his wife’s great-grandfather built nearly a century ago and that now houses the family’s fifth generation. For vacations, the Gemmens take the family Airstream around the country – sometimes borrowing retailing ideas they discover along the way. “Our family pastime is visiting hardware stores – you can imagine how excited my kids are,” he said of sons, Jack, 12, and Aiden, 14. Gemmen’s newest pursuit is serving as a director of Retailers Insurance Company, after his election this past August to a three-year term on the nine-member governing board. The Michigan Retailers Association added the Michigan Retail Hardware Association (MRHA) as a division in July and is able to provide workers’ compensation insurance to MRHA members. Gemmen sees important advantages to MRHA joining with Michigan Retailers. “To combine with all other retailers to get the benefits of scale makes sense for receiving the best business services,” Gemmen said, pointing to the shrinking number of independent hardware stores. “The MRA also has lobbying power. I’m interested in making sure we’re looking out for the interests of retailers.” Gemmen said he looks forward to comparing notes with others in retailing. “You can help other people get better at what they do and better at serving their communities,” he said. Doug Henze is a freelance writer and former business reporter for the Oakland Press in Pontiac.

October 2016

IT’S THE LAW

New trend across nation: ‘trickle-down legislation’ by William J. Hallan, MRA Executive Vice President, COO and General Counsel A n e w t re n d is sweeping the country, what I like to call “trickledown legislation.” Policymaking has moved from Congress to the states, from the states to the ballots, and from the ballots to local units of government. Washington is in gridlock. Hamstrung by bitter par tisanship, Congress has accomplished little. That has pushed states to take action on a number of important issues, such as Main Street Fairness.

and costly. Michigan has 83 counties and there are approximately 2,700 local units of government – cities, villages and townships. Imagine if each county enacted a unique plastic bag ordinance. A multicounty retailer would have to implement different procedures at each store. For Michigan to be a competitive business environment, retailers need consistency. In our state, local units of government have restrictive power, meaning that they only have the power to act if that power is granted in Michigan’s constitution or in legislation. Some examples of local power include:

“Policymaking has moved from Congress to the states, from the states to the ballots, and from the ballots to local units of government.” In January 2015, Governor Rick Snyder signed legislation advocated by Michigan Retailers to close a loophole that allowed some out-ofstate merchants to avoid collecting sales tax on merchandise sold in Michigan. On more partisan issues, the GOP’s control of the Michigan House, Senate and governorship has prevented Democrats from advancing their agenda. As a result, we have seen a host of Michigan ballot proposals in recent years serving as alternative vehicles to change public policy. Many of those ballot proposals were unsuccessful. As a result, we are now seeing increased policymaking at the local level. Patchwork Regulation Consider the following local actions: • In June, Washtenaw County approved a plastic bag ordinance that calls for a $0.10 tax for each disposable bag distributed at a grocery store. Muskegon County is considering a similar initiative. • In August, the City of Ann Arbor adopted an ordinance preventing retailers from selling tobacco products to anyone under the age of 21, despite the fact that state law specifically prevents a city from increasing the age limit. This trend is very concerning for retailers because it threatens to create a patchwork of local laws making regulatory compliance burdensome

• Land Use – implementation of zoning laws and ordinances • Public Safety – providing fire, police and emergency services • Tax Collection – property taxes and millages • Roads and Transportation – Maintenance and regulation. Pre-emption Legislation While local government is necessary for the greater good, overregulation is crippling for business. Michigan Retailers Association is working hard to stop this dangerous trend, primarily through legislation that pre-empts certain local actions. In June 2015, after support from an MRA business group coalition, Gov. Snyder signed Public Act 105 that prohibits local units of government from adopting policies on matters such as predictive scheduling, local minimum wage and paid sick leave. MRA is also working to pass Senate Bill 853, which would prevent local governments from enacting plastic bag bans or bag taxes. SB 853 has passed the Senate and was recently voted out of the House Commerce Committee. With policymaking trickling all the way down from Congress to the local level, Michigan Retailers Association is committed to protect the retail industry and maintain a favorable business climate in Michigan.

Mazzoni elected MRA board chair Continued from page 2

Okemos. She was first elected to the board in 2011 and has served as president of the Michigan Jewelers Association. Rounding out the MRA board officers are: James P. Hallan, reelected as president and CEO; Peter Sobelton, of Mondial Properties in Birmingham, re-elected treasurer; William J. Hallan, MRA executive vice president, chief operating officer and general counsel, re-elected as secretary; a n d D a n M a r s h a l l , p re s i d e n t o f M a r s h a l l M u s i c C o m p a n y, headquartered in Lansing, as immediate past chair. New Director Newly elected by MRA members to the Board of Directors was Ken Hayward, executive vice president and managing director of Grand Hotel on Mackinac Island. He succeeds R.D. (Dan ) Musser III, president of Grand Hotel on Mackinac Island. Musser served on the MRA board for six years. Re-elected to the board were: Mazzoni; Barb Stein, owner/operator of Great Northern Trading Co. in Rockford; Joe Swanson, district team leader for Target Corp.’s Indianapolis Region; and Thomas Ungrodt, president and CEO of Ideation Inc. in Ann Arbor. All directors’ terms are three years. Retailers Insurance Retailers Insurance Company (RIC) was established by MRA in 2006 to provide workers’ compensation insurance and other insurance lines to all types of Mich-

igan businesses. In addition to re-electing Joyce as chair, directors re-elected Jim Hallan as president and CEO; and Sobelton as treasurer. Newly elected to the RIC board by policyholders was Andrew Gemmen, co-owner of Gemmen’s Home and Hardware in Hudsonville. He succeeds Mark Miller, a Marsh executive who served on the board the past four years. Re-elected to the RIC board were: Joyce; Marshall; and Larry Meyer, retired president and CEO of MRA and a member of the Lansing Community College Board of Trustees. All directors’ terms are three years. Services Board In addition, the MRA board elected members of the Michigan Retailers Services, Inc. Board of Directors for 2016-17. The wholly owned subsidiary of MRA provides a wide array of profitboosting membership services to MRA members. Newly elected to the MRS board was Chad Ayers, partner and general manager of Allendale True Value in Allendale. Re-elected were Jim Hallan; Bo Brines, owner and president of Little Forks Outfitters in downtown Midland; Bill Golden, co-president of Golden Shoes in downtown Traverse City; and Emily Matthews, manager of Dart Foundation and partner in Potent Potables, which owns and operates Zoobie’s Old Town Tavern, Cosmos and The Creole in Lansing’s Old Town commercial area.

MRA announces business rep for U.P., Northern Michigan David S. Phillips, a Traverse City resident with solid experience in sales and client service, has joined Michigan Retailers Association Phillips (MRA) as its business development representative for the Upper Peninsula and Northern Michigan. He becomes the local contact for members and prospective members in the counties of Alcona, Alger, Alpena, Baraga, Benzie, Charlevoix, Cheboygan, Chippewa, Crawford, Delta, Dickinson, Emmet, Gogebic, Grand Traverse, Houghton, Iosco, Iron, Kalkaska, Keweenaw, Leelanau, Luce, Mackinac, Manistee,

Marquette, Menominee, Missaukee, Montmorency, Ogemaw, Oscoda, Otsego, Presque Isle, Roscommon, Schoolcraft and Wexford. Prior to joining MRA this summer, he was based in Traverse City serving as consumer operations manager for the Northern and Western Michigan Territory of Penske Truck Rental. He previously was in sales and marketing for Ascent Health Care Solutions in Phoenix, Arizona, territory sales representative for PepsiCo Bottling Group in Howell and a mortgage broker for First Premier Mortgage in Farmington Hills. Phillips earned his undergraduate degree in business from Central Michigan University. He and his wife, Amber, have one child and reside in Traverse City.

Michigan Retailer

www.retailers.com

Membership Services Corner by Ally Nemetz, Director, Customer Service and Data Administration Quick notes on key services. Call 800.563.5981 for credit card processing assistance or 800.366.3699 for other matters. We v a l u e your membership and trust. Let us know whenever we can help with your question or problem, no matter how large or small. Blue Cross Rebates Several months after Blue Cross Blue Shield of Michigan announced a comparatively small statewide average rate increase of 2.9 percent for small group employers in 2017 (pending state regulatory approval), there is more good news to share. Blue Cross and Blue Care Network are able to refund a small percentage of 2015 premiums to many of our small-group customers because of lower than expected medical costs last year. A letter (with check enclosed) was scheduled to be mailed by September 30 to employers who had an active group policy in 2015. The employers can either reduce the premium for the upcoming year or provide a cash rebate to each employee who was on the insurance in 2015. It is the employers’ responsibility to communicate how they will handle the rebate with their employees. The rebates are required under the Affordable Care Act. Open Enrollment for Dental Open Enrollment period for Retailers Insurance Company dental plans starts November 1, 2016, and runs through December 15, 2016, with an effective date of January 1, 2017. Eligible employees and dependents have the opportunity to enroll for coverage during this time. To learn more, please contact our office at 800.366.3699, ext. 681.” Blue Cross Mobile App A new mobile app from Blue Cross Blue Shield of Michigan enables you to manage your health plan via smartphone or tablet. It allows you to manage your deductible and out-of-pocket maximum balances, claims activity and explanation of benefits statements. You also can find a doctor, obtain cost estimates for health care services, and much more. Search for Blue Cross Blue Shield of Michigan

through Apple App Store or Google Play. It’s available for Android OS 5.0 or higher or iPhone iOS 7.1.2 or higher. You must first set up an online account at bcbsm.com before using the app. Credit Card Processing • We provide merchant assistance via email in addition to over the phone. You can email any general questions to customerservice@retailers.com. The response time for email inquiries is within two business days. • MasterCard is continuing to move toward issuing cards that start with a 2 instead of its usual 5. Those with an integrated solution should be working right now to determine if this change will impact their current processing equipment processing capabilities. • Discover cards will begin issuing cards that may be as many as 19 digits long. Integrated merchants should enhance their system/software to make sure they can accept card numbers for all card types ranging from 13 to 19 digits in length. Both Visa and MasterCard have announced a similar change but have not yet announced a timeline. • If you haven’t upgraded your processing device to accept/process “chip cards,” we strongly recommend you upgrade soon. • As an added security feature, your credit card terminal may prompt for Admin Password on refunds, voids and force or offline transactions. • Chip card terminals may need to complete an update, please call us to verify. • Pin-Based debit transactions cannot be voided. • For your protection, please notify us of any larger than normal sales, out-of-the-country sales or requests to wire money. We may also contact you on occasion to verify large, keyed or duplicate transactions. • If you receive a “Re-Enter or Lost Communication” response when processing a transaction, please contact Customer Service so we can verify the transaction before you continue to process. • To keep processing costs low, answer all prompts on the terminal, including AVS (street number and zip code), CVV (3-digit security code on the back of card), Sales Tax (sales tax amount only), PO Number (if you don’t use a purchase order number, the default would be the last four digits of the card number).

October 2016

LOTTERY

Lottery expects instants to drive up sales, traffic by M. Scott Bowen, Commissioner The Michigan Lottery’s instant games are a perennial favorite with players. Their popularity hit a high point in 2015, when players bought a record $1 billion worth of instant games from retailers across the state. We project continued strong player interest will push sales to another record for the 2016 fiscal year. With a wide range of price points, the Lottery’s instant games are designed to appeal to a broad spectrum of players. Games such as Cashword and Bingo have built strong brand awareness and loyalty among regular Lottery players. Games such as Hot Riches appeal to casual and regular Lottery players. Creating innovative games with broad player appeal, large cash prizes and a variety of price points helps create excitement among players and drive repeat business for retailers. Throughout 2016, the Lottery has introduced instant games that appeal to a wide range of players. That trend continues in October as four new instant games hit the shelves: • The Walking Dead – Themed after the popular AMC TV show, each $2 The Walking Dead instant game ticket will offer players the chance to win prizes ranging from $2 up to $30,000. The game features more than $5 million in total prizes. • Bingo Plus – Bingo games are some of the most popular instant games offered by the Lottery. Players enjoy the long game play that Bingo offers and the game’s online interactive second chance game. Each new $5 Bingo Plus instant game ticket will offer players prizes ranging from $5 up to $300,000. All told, Bingo Plus offers more than $20 million in prizes. • Double Bonus Cashword – Cashword games rank toward the top of the list of best-selling instant games offered by the Lottery. Like Bingo-themed games, Cashword offers players longer game play and an online interactive second chance game. Each $5 Double Bonus Cashword game will offer players the chance to win prizes ranging from $5 up to $300,000. More than $20 million in total prizes are available for players to win.

• Hot Fortune – Instant game families are very popular with players. Offering a similarly themed game at multiple price points helps build brand awareness among a wide range of players. Historically, instant game families have sold very well. In January, the Lottery launched the “Hot” family of games with tickets available at the $1, $2, $5 and $10 price points. To build on the “Hot” games success, the Lottery will offer players a new $20 Hot Fortune instant game. Each ticket will offer players a chance to win prizes ranging from $20 up to $2 million. The game features more than $85 million in prizes. The Lottery expects these exciting new instant games to boost sales and store traffic for retailers and provide a strong start to the 2017 fiscal year, which began on Oct. 1. Digital Drives Traffic The Lotter y’s growing digital presence has helped drive a record number of players to retailers across the state. In 2016 approximately 188,000 players went to retailers to redeem more than $2.2 million in free-play coupons from web-based promotions. Those visits resulted in $445,000 in commissions for retailers! Instants These tickets went on sale October 4: IG # 788 The Walking Dead $2 IG # 797 Double Bonus Cashword $5 IG # 796 Bingo Plus $5 IG # 779 Hot Fortune $20 These tickets expired October 3: IG # 697 Wild Time Gold $2 IG # 704 Magic Number Bingo $5 These tickets expired October 10: IG # 702 $500,000 Doubler $10 About 97 cents of every dollar spent on Lottery tickets is returned to the state in the form of contributions to the state School Aid Fund, prizes to players and commissions to retailers. In the 2015 fiscal year, the Lottery’s contribution to Michigan’s public schools was a record $795.5 million. Since it began in 1972, the Lottery has contributed more than $19.6 billion to education in Michigan. For additional information, follow the Michigan Lottery on Facebook, Instagram, Twitter and online at www.michiganlottery.com.

NEW MEMBERS Ada Congregational Church, Ada Ada Village Preschool, Ada State Street Auto Service Inc., Ann Arbor Pall SoloHill, Ann Arbor Van Straten Brothers Inc., Baraga Lab References Advisory Group, Battle Creek Bentley C-Store LLC, Branch PNH Trucking LLC, Clinton Township Players Enterprises Inc., Detroit House of Pure Vin, Detroit S & M Estate Management Inc., Detroit Lafayette Drugs, Detroit Lansing Laser LLC, East Lansing Flat Black & Circular LLC, East Lansing Eagle Lake Marine of Michigan Inc., Edwardsburg Paul Corporational LLC, Farmington Hills Pine Crest Self Storage, Fennville Florida Boat & RV Storage LLC, FL SMM Enterprises Inc., Flushing The Earlybird, Grand Rapids Action Mold & Machining Inc., Grand Rapids Global Infusion LLC, Grand Rapids Southtown Guitar LLC, Grand Rapids Apogee Therapy Center LLC, Grandville W C Beardslee Inc., Harsens Island Custom Cabinets of W Michigan LLC, Hart Monroe Rd Storage LLC, Hart Embassy Transportation LLC, Haslett In-Tune Imports of Holland Inc., Holland Community Normalization Homes Inc., Jackson

Emergency Medicine Consultants PC, Jackson Seber Tans PLC, Kalamazoo Green Door Distilling Co., Kalamazoo Capitol Communication Systems Inc., Lansing Great Lakes Artworks Inc., Lansing Foliage Design Systems, Lansing Richardson Meat Processing LLC, Linden Grace Landing Cottages, Ludington Jackpine Business Center, Manistee UP Tax & Accounting, Marquette Blue Water Academy, Marysville Target Trucking I LLC, Milford Total-Lee Sports Inc., Mount Pleasant VFW Post 4249, Newaygo The Beacon, NC Trinity Church of the UCC, Northport County Emmet Celtic Shop Inc., Petoskey Dyck Security Services Inc., Port Huron A+ Nursing Inc., Portage Patty’s Apparel & Bridal Shoppe, Quincy Shelby Square Shopping Center, Rochester Hills Ramona’s Table, Rockford Klassic Tool Crib, Romulus Jacks Place, Roscommon K.R. Strom Machining Inc., Roseville Kaizen Home Care Inc., Saline OxyTech Inc., Sandusky Sheldon Medical Supply, Sandusky Performcoat of Michigan LLC, Springfield Arenac Opportunities Inc., Standish Links at Whitmore Lake Inc., Whitmore Lake

Michigan’s choice for workers’ compensation and group dental insurance. Now providing EFT Guard to protect our workers’ compensation insurance policyholders’ business banking from cyber criminals and other unauthorized electronic transfers.

To learn more, ask your Independent Agent, call 800.366.3699 or visit www.RetailersInsurance.com.

1016

Michigan Retailer

www.retailers.com

Approaching 65? Here’s help with Medicare by Rick Seely Today, 10,000 Baby Boomers will turn 65 and become eligible for Medicare. That will be true t o m o r ro w a n d every day for the next 13 years. The most important thing you can do to prepare for your approaching 65th birthday is to invest some time to ensure your transition to Medicare is as smooth as possible. Medicare is complicated and has many parts. You need to understand what Medicare is and isn’t, what it covers, how and when to enroll, and much more. You don’t need to become a “Medicare scholar,” but you do need to be able to separate the facts from fiction. At the very least, you will need to become familiar with Medicare’s lingo: enrollment periods, election periods, four parts, coverage gaps, “donut hole,” premiums, out of pocket costs, and the “Secondary Payer Rule,” just to name a few. • Some folks believe Medicare is completely free. Fact – it is not. There are monthly premiums for Part B (medical) and Part D (prescription drug plans) that are income-based and pegged to your Modified Adjusted Gross Income from the tax return you filed two years previous. • Some folks believe Medicare provides 100 percent coverage. Fact – it does not. There are deductibles, copays, co-insurance and non-covered items. • Some folks believe the federal

government automatically enrolls into Medicare all U.S. citizens who are turning 65. Fact – the government does not do that, unless the person is

If the employer has 20 or more employees, the group health plan pays first or is “primary” and Medicare is a “secondary” payer. In that case it may be advantageous for you to delay enrollment in Part B until you stop working and/ or are no longer covered by the group health plan. If there are fewer than 20 employees, Medicare pays first or is “primary” and the group health plan is “secondary.” In that case you need to enroll in both Part A and Part B of Medicare.

“Some folks believe Medicare is completely free. Fact – it is not.” already drawing Social Security benefits. Most folks must actively enroll in Medicare. Enrollment Medicare enrollment begins three months before your 65th birthday month and continues for seven months. If you enroll during the three months prior to your birthday month, Medicare will become effective on the first day of your birthday month. The easiest way to enroll is to go online to www.ssa.gov. If that is not an option you can alternatively visit your local Social Security Administration office or call SSA at 800.772.1213. Before you enroll, however, you will need to know whether to enroll in both Part A (hospital) and Part B (medical), or to enroll in Part A and delay enrollment in Part B. That decision will be based on a number of factors such as: – Do you plan to continue working? – What other health insurance, if any, do you have? When you are age 65 or older and covered by a group health plan through your current employer or the current employer of your spouse, the total number of employees who work for the group health plan sponsor determines which entity pays first on a claim – Medicare or the group health plan.

Four Parts Medicare has four parts: • Part A covers inpatient hospital stays, skilled nursing facility stays, some home health visits and hospice care. Part A is subject to a “benefit period” deductible of $1,288 (2016) and coinsurance. It’s administered

help them cover the cost-sharing expenses required by Medicare. Personal Decisions The bottom line is there is no “one size fits all” Medicare answer. The decisions you make regarding Medicare and any additional coverage should be personalized and based on your unique individual circumstances. Medicare decisions that friends, family or even your spouse made for themselves do not necessarily represent what is best for you. More importantly, making enrollment decisions based on assumptions or simply not taking action at the appropriate times can ultimately cost you money or leave you without health insurance for months. The good news is there is assistance available through Michigan Retailers Association (MRA) to help you understand this process. Your MRA memb e r s h i p p ro v i d e s y o u with access to a Medicare specialist through MRA’s partnership with Member Insurance Solutions (MIS). As an account executive and Medicare specialist with MIS, I can meet with you to help you make sense of Medicare and available supplemental options. We can service you on your supplemental products on an ongoing basis as well. I strongly suggest that you schedule a personal appointment at least four months prior to the month you will turn 65. If you would like to take advantage of this valuable MRA member service, please contact Ally Nemetz at MRA first to make that request. You can reach her at 517.372.5656 or 800.366.3699. If you prefer, instead, to conduct your own Medicare research, you can obtain information from the following government resources: • www.medicare.gov • 800.MEDICARE • “Medicare and You” booklet produced by Medicare. Whatever your preference, as you approach age 65 make sure that you invest some quality time to more clearly understand Medicare and its many nuances. A personalized and knowledgeable approach will ultimately result in better decisions and a more effective and successful transition to Medicare.

“Some folks believe Medicare provides 100 percent coverage. Fact – it does not.” by the federal government. • Part B covers physician visits, outpatient services, preventative services and some home health visits. Part B benefits are subject to a deductible of $166 and cost sharing for most benefits. It’s administered by the federal government. • Part C is Medicare Advantage plans. These are private health plans where beneficiaries receive all Medicare-covered Part A, Part B and generally Part D benefits. It’s administered by the insurance company offering the plan. • Part D covers outpatient prescription drugs through private plans where the carriers contract with Medicare. These can be accessed as stand-alone plans or built into Medicare Advantage Plans. This part is administered by the insurance company offering the plan. Medicare provides protection against the costs of many health care services, but Original Medicare (Parts A & B) has relatively high deductibles and cost-sharing and places no limits on beneficiaries’ potential out-of-pocket spending. Most beneficiaries, therefore, pick up some form of supplemental coverage to

Rick Seely is an account executive and Medicare specialist for Member Insurance Solutions, which provides health insurance information and services to MRA members.