Hartford Business Journal

6 Hartford Business Journal • June 5, 2017 www.HartfordBusiness.com TOP STORY Business leaders say possible Aetna HQs move a 'wake-up call' Business leaders say the pending decision by Hartford health insurer Aetna to move its corporate headquarters should be a wake-up call for policymakers to improve the state's business climate. Connecticut, leaders say, is trailing nearby New York City and Boston in the talent wars, putting the state at a disadvantage in recruiting and maintaining employers and workers. "I think it would be a big, big deal," if Aetna moved its headquarters, said Joe Brennan, president and CEO of the Connecti- cut Business and Industry Association. "When you have such an iconic institution, you can't minimize the impact of that." Last week, former state legislator and Hartford Courant columnist Kevin Rennie made a blog post asserting New York City is winning against Bos- ton in a competition to lure Aetna's headquarters from Hartford. Aetna spokesman T.J. Crawford confirmed the company is negotiating with multiple states but wouldn't elaborate. "We are in negotiations with several states re- garding a headquarters relocation, with the goal of broadening our access to innovation and the talent that will fill knowledge economy-type positions," he wrote via email. "We remain committed to our Connecticut-based employees and the Hartford campus, and hope to have a final resolution by early summer." Gov. Dannel P. Malloy sought to reassure the public that Aetna will remain a major Connecticut employer even if it moves its headquarters. He said the state has offered Aetna, which employs about 5,800 people in Connecticut, direct incentives to maintain its Hartford headquarters, "up to and including matching anything put on the table from a competing state." Brennan said workforce talent today is more attracted to larger urban cen- ters, which is why many companies are interested in Boston and New York City, despite their higher taxes and costs. Oz Griebel, president and CEO of the MetroHartford Alliance, said he is un- aware of Aetna's potential plans to move its headquarters to New York City, but he stressed the insurer's importance to the region. Aetna is one of three insurance companies that pledged to give the city of Hartford a combined $50 million over five years, to help solve its budget deficit. "Aetna is one of the most important employers both in terms of the number of people they employ and what they represent in terms of their commitment to the Capital City," Griebel said. He said the talent wars require companies to be near large numbers of higher-education institutions. Griebel said Connecticut must shore up its shortcomings, including the private sector's lack of confidence in the state's ability to address its fiscal issues. The state must also overcome the realities and perceptions of having a poor business climate, he said. Brennan said policymakers often focus on tax policy, but it's only one factor in the overall business climate. Living affordability and the ability to attract top talent are also very important. BY THE NUMBERS $2B The amount of federal costs that would shift to Connecticut over a decade under President Donald Trump's recently unveiled budget, according to The Center for Budget and Policy Priorities. 36,073 The average number of Connecticut births between 2013 and 2016, down from 42,003 between 2004 and 2007, according to an analysis by the CT Data Collaborative. $235,000 The median price of a Connecticut single-family home sold in April, which was down 2.1 percent from a year earlier, according to the Warren Group. 95,500 The number of registered boats in Connecticut in 2015, down 4.1 percent from 2014, which may be partly due to Rhode Island not charging sales tax on vessels. TOP 5 MOST READ on HartfordBusiness.com ■ In merger aftermath, Cigna stock giveaway aims to reward employees ■ Business leaders say possible Aetna HQs move a 'wake-up call' ■ Dunkin' Donuts Park to host USA vs. Japan game in July ■ Nappier pushes for Tesla board changes ■ Tesla pledges 10 CT stores, dealerships doubtful STAY CONNECTED For breaking and daily Greater Hartford business news go to www.HartfordBusiness.com. HBJ on Twitter: @HartfordBiz HBJ on Facebook: www.facebook.com/HartfordBiz HBJ on LinkedIn: www.linkedin.com/company/ the-Hartford-Business-Journal Daily e-newsletters: HBJ Today, CT Morning Blend www.HartfordBusiness.com/subscribe Weekly e-newsletters: CT Green Guide Weekly, CT Health Care Weekly www.HartfordBusiness.com/subscribe WEEK IN REVIEW ECONOMY & LABOR Greater Hartford cities losing population Hartford and surrounding towns lost population in 2016, according to esti- mates released by the U.S. Census Bureau, while some southwestern and west- ern Connecticut cities gained more residents. The bureau measured population data between July 1, 2015 and July 1, 2016 and found that Hartford lost half a percent of its population, or 626 residents. It now has a total population of 123,243. Other nearby cities also lost population including New Britain (370), East Hartford (268) and Bristol (249). By compari- son, Danbury gained 756 residents, for a total of 84,992, and Stamford added 701 residents, for a total population of 129,113, the data show. As CT population declines, immigrants, Gen-X groups grow Although Connecticut's population has declined over the past three years, populations of immigrants and 30-to-39-year-olds (also known as Generation X) have been on the rise, according to a new study. Connecticut's population has declined from 2014 through 2016, with declin- ing births and increasing deaths playing a role, according to the report on mi- gration trends researched by the state Office of Policy and Management in col- laboration with the Connecticut Data Collaborative. Compared to the mid-2000s, the number of people leaving Connecticut for other states has increased by 55 percent, or about 9,200 individuals. Yet, international migration has boosted the state's population by about 30 percent, or 3,700 people, the study found. More people do leave for Massachusetts and Florida, the study notes, while more people move here from New York or New Jersey. Connecticut also tends to lose youth ages 18 to 21 and Millennials ages 22 to 29. Churn is also evident among high-income earners. HEALTH CARE Hartford HealthCare wants to terminate 12 outpatient lab sites, transfer them to Quest The Hospital of Central Connecticut, which has campuses in Southington and New Britain, and The William Backus Hospital in Norwich are seeking to termi- nate services at 12 laboratory outreach locations and transfer the sites' opera- tions to Quest Diagnostics through a purchase agreement. The hospitals, part of Hartford HealthCare (HHC), offer blood drawing and urine sample collections at the 12 locations, after which specimens are sent to a laboratory for testing. The move, detailed in Certificate of Need applications filed with the state, is part of HHC's exit from operating laboratory outreach locations and follows Quest's acquisition last year of the outreach lab service business of Clinical Laboratory Partners, a wholly-owned subsidiary of HHC. The Hospital of Central Connecticut and Backus proposals for the 12 sites are not part of Clinical Laboratory Partners. Hartford HealthCare and New Jersey-based Quest are in the early stages of the transaction, according to HHC spokesman Shawn Mawhiney. If the deal is completed, and pending state approval, HHC expects the transaction to close late this year, he said. With transfer of the 12 sites, HHC will no longer operate outreach laboratory locations. Anthem, ConnectiCare proposed rate hikes to get public hearings The double-digit health insurance rate hikes proposed by Anthem Health Plans and ConnectiCare Benefits Inc. (CBI) will be the subject of public hearings June 14. Combined, the companies have approximately 86,000 policies in force in Connecticut's individual market. ConnectiCare Benefits sells plans on the state's health insurance exchange, Access Health CT. Anthem is requesting an average rate increase of 33.8 percent for 2018 poli- cies marketed both on and off the state exchange. CBI has requested an average rate increase of 17.5 percent for 2018 policies sold exclusively on the exchange. REAL ESTATE CT April home sales flat Connecticut home sales barely rose in April, as prices were mixed, a fresh statewide sample shows. Single-family home sales across the state rose less than 1 percent last month, according to the latest report from The Warren Group, Boston publisher of The Commercial Record. A total 2,371 single-family homes were sold in Connecticut in April vs. 2,352 sold the same month a year ago, Warren Group said. The median price of a single-family home fell 2.1 percent in April to $235,000 vs. $240,000 a year ago. Year to date, there were 8,435 single-family home sales in 2017, compared to 8,048 over the first four months of 2016 — a 4.8 percent increase. "The market is still slow and far behind the peaks we saw a decade ago," said Warren Group CEO Timothy Warren. "Sales in April were 29 percent below the number in April 2005. And the median price in April is down 19 percent from April 2007. The market is steady and stable, but the recovery leaves us well below our peaks." Joe Brennan, president and CEO, Connecticut Business and Industry Association. Aetna's current Farmington Avenue corporate headquarters in Hartford (shown above) could be moving to New York City. P H O T O | H B J F I L E

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