Health. Wealth. Life. 75th Anniversary Edition - Spring 2023

Page 4

In This Issue

forward thinking

Page 6: Long-Term Care

Page 7: The Waymark Collective: United in Savings and Solutions

Page 8 & 9: Benchmarking: Everything Begins and Ends with Data working knowledge

Page 11: 2023 Events & Education

Pages 22 & 23: A Total Rewards Strategy Built to Propel Business Success

trending now

Page 18: Terence L. Horan: 2023 Good Scout Award Honoree

Page 19: HORAN In The Community

Pages 20 & 21: SECURE 2.0: The Impact on Retirement Plans

75th anniversary pageS 12-15

Saul Steinberg (American, 1914–1999), Mural of Cincinnati, 1947, oil on canvas, Cincinnati Art Museum; Gift of Thomas Emery’s Sons, Inc., 1965.515, © 2023 The Saul Steinberg Foundation / Artists Rights Society (ARS), New York

health.wealth.life.
A menu from The Terrace Plaza Skyline Restaurant in 1948, highlighting a portion of the Steinberg Mural. Credit: Cincinnati Art Museum. Client Spotlight: Mike’s car wash Page 16 & 17 Client Spotlight: metcut Page 10
2 800.544.8306 © 2023 HORAN. All Rights Reserved.
Wellness Works: Piqua City schools PageS 4 & 5

A Letter from the President

Jack Horan began as an agent for the Great West Life Insurance Company in 1948. I doubt he imagined HORAN would grow into four different companies offering employee benefits consulting, wealth management, life insurance and financial planning to thousands of clients in the mid-west region. This is where we are today.

Through 14 presidents, beginning with Harry Truman, and 30% of American history, HORAN has grown and thrived by responding to the needs of our clients. Our 156 employees work diligently each day to provide highquality health care through the bridge of insurance, to help individuals with their goals to accumulate, invest, and ultimately distribute wealth over what will be a long life, and provide those products that protect against living too long, dying too soon, or becoming disabled.

Our magazine celebrates HORAN’s 75th anniversary. We look forward to the next 75 years. Those years will be different, but we intend to provide the same level of service to our clients as we grow across the country. We will be in place as long as people need access to quality health care and wealth accumulation solutions.

A bit of history; in 1948, the Cincinnati Terrace Hilton was one of the first hotels opened after WWII. The Terrace contained iconic pieces of art, some of which are now housed at the Cincinnati Art Museum.

There are pictures of these works in our magazine. In addition, our client, Mike’s Carwash started in 1948 in Indiana. They are celebrating their 75th this year too. Congratulations to Mike Dahm and his family!

The magazine contains interesting articles about our clients, Piqua City Schools, Mike’s Carwash and Metcut. There is an article on retirement planning after the SECURE 2.0 Act. You will find an educational article on long-term care insurance. There is also a fascinating benchmarking report by Carrie Glandorf and her team on pharmacy and plan renewal insights.

I want to take the opportunity, on behalf of all HORAN associates, to thank you for your continued support, business, and encouragement throughout the years. We are honored to serve you and look forward to finding ways to be of greater service in the future.

Spring 2023
Terence L. Horan, CLU, ChFC, CAP President and Chief Executive Officer Saul Steinberg (American, 1914–1999), Mural of Cincinnati, 1947, oil on canvas, Cincinnati Art Museum; Gift of Thomas Emery’s Sons, Inc., 1965.515, © 2023 The Saul Steinberg Foundation / Artists Rights Society (ARS), New York

Wellness works: Piqua City Schools

“Going to Your Doctor Is Like Managing Your Very Own Check Engine Light”

Heading into 2020, the team at Piqua City Schools was facing a massive 57 percent increase in health care costs on a fixed budget. The district, which employs 354 staff across two primary schools, one intermediate, one junior high, and one high school, has not dealt with an operations levy since 2007. A cost increase of that magnitude would have been devastating, with ripple effects that would impact every single staff member.

“We needed an out-of-the-box, innovative solution to support our teachers and staff, and prevent a catastrophic financial situation,” said Piqua City Schools Treasurer Jeremie Hittle.

Piqua City Schools is a Kindergarten through 12th grade rural community located approximately 30 minutes north of Dayton, just off Interstate 75. The community of Piqua includes

21,000 residents, many of whom regularly move in and out of town thanks to the low cost of living and easy access to Dayton. The district is the heart of the community, and residents depend on school support to help educate great students.

“At the end of the day, we must have the staff here, we must have them healthy to educate the kids. That’s what it all goes back to, and what’s most important,” said Hittle. “There is a reason and rationale for the changes we made, and it’s all about our students.”

To battle such a hefty increase and improve the overall health and wellbeing of their district staff, leaders at Piqua City Schools worked alongside HORAN Benefit Consultants and company leaders like Martha Dils, Cheryl Mueller, and others to develop a multi-faceted program

that accomplished their goals and kept teachers in the classroom. The solutions included a new Health Savings Account (HSA) plan, nicotine surcharge, pharmacy solution, Enrollment Management Solution (EMS), regular Biometric Screenings, Employee Assistance Program (EAP), and wellness incentive options for all staff members.

“When managing our benefits, it’s important to us to insure we are educating our staff on why wellness should be a priority, how it impacts their health insurance, and the ultimate result for salary increases,” Hittle said.

“By implementing all these changes and educating staff through the process, they begin to recognize we are all in this together. By taking care of their own health, they are also taking care of their colleagues.”

Implementing the changes to the district health plan and adding wellness programs and incentives has resulted in dramatic cost savings and a happier, healthier set of teachers. There is proof that it works. When the team moved to an HSA plan, 97% of the district staff made the switch. Adding in the nicotine surcharge encouraged 16 smokers in the district to quit and make healthier choices. The Biometric Screening process has resulted in a 100% participation rate, offering credits

health.wealth.life. wellness works
4 800.544.8306 © 2023 HORAN. All Rights Reserved.
There’s no doubt that by implementing these programs with HORAN’s help, we have saved people’s lives - treasurer Jeremie Hittle

in health insurance and guarantees every single person on the plan sees their general physician at least once per year. The EMS allowed nearly 50% of staff to move to a spousal plan and save money, which in turn saved the district approximately $1.8 million, not including potential claims. The EAP provides staff with mental health support and guidance for family stressors like childcare or aging relatives.

So, what does the administrative team do to celebrate and re-invest in the health of its team? They offer even better incentives for healthy living, with prizes ranging from a kayak to a Peloton Bike.

wellness works

the solutions

100% Participation rate in the Regular Biometric Screenings

“There’s no doubt that by implementing these programs with HORAN’s help, we have saved people’s lives,” shared Hittle. “I know one principal who was shocked to learn his blood pressure was so high, and we were able to prevent so much serious illness for him. People in our district have truly stopped and thanked me because they found out something they otherwise wouldn’t have through our Biometric Screening program.”

Looking back on it, Hittle recognizes that the changes were scary, but it was trust and the strength of relationships, the support from the HORAN team, along with education and transparency, that helped them find success. “Our staff realized that going to the doctor is like managing your very own check engine light.”

Provided mental health support and guidance for staff

$1.8 million in district savings

50% of staff moved to a spousal plan to save money in the Enrollment Management Solution

HSA plan: 97% of the district staff switched to an HSA plan

Nicotine Surcharge

encouraged 16 smokers to quit

wellness incentives for

all staff

members

It’s such a pleasure working with Jeremie Hittle, Dwayne Thompson, and the entire Piqua City Schools team. I love their positive energy, passion for excellence, and forwardthinking approach. PCS has made me a better person and consultant and I will always be grateful.
Spring 2023 5 www.horanassoc.com
- Martha Dils, RHU, REBC, Director of Account Operations

long-term care

What is Long-Term Care (LTC)?

Medical treatment is designed to cure a condition or illness. Long-term care is different; it is meant to address the needs of an individual who, because of a chronic condition, accident, or other trauma or illness, requires assistance with basic selfcare tasks (activities of daily living: ADL’s).

There are six ADL’s that are typically triggering to an individual who needs long-term care: bathing, eating, dressing, toileting, continence, and transferring (getting in/out of bed). A cognitive condition such as Alzheimer’s or Dementia can also trigger long-term care needs.

No one knows for sure whether they will need long-term care, but increased longevity in the population, family medical history, and other factors suggest that everyone should be thinking about it. According to the U.S. Department of Health and Human Services, nearly 70% of 65-year-olds will need some form of long-term care in their lifetimes.

Traditional long-term care insurance is remarkably like individual disability insurance. You pay a premium each year based on the monthly benefit and length of time benefits are paid. The pros of this type of coverage are; maximized long-term care insurance leverage while minimizing premium commitment, the option to add inflation protection, care coordination (concierge health benefit), and the premium can be paid from an HSA (Health Savings Account). The cons for this policy type are premium is not guaranteed; use it or lose it benefit and a dwindling number of providers who offer these policies.

A second option is the asset based/hybrid model of long-term care insurance. This product is usually built on a life insurance chassis. The advantages of the asset based/hybrid model include: the premium can be paid in a lump sum, LTC benefits include inflation protection, the premium is refundable if the policy is canceled, and a death benefit is paid if all LTC benefits are not paid out. The disadvantage of this plan is the opportunity cost (if single pay is chosen).

The third option is the purchase of a traditional life insurance policy that includes a long-term care rider. This rider allows the policy owner access to the life insurance death benefit to pay for long-term care expenses. Typically, the monthly LTC benefit is either two percent or four percent of the policy face amount (i.e., a $500,000 policy x 2% would provide $10k a month for LTC). The premium is low for the monthly benefit provided, however, there is no inflation protection, and over a lifetime the monthly benefit can be limited. The death benefit is reduced dollar for dollar by any benefit used for long-term care expenses and there is no return on the premium.

Those who can afford premiums should explore the options for funding their long-term care risks. However, the final option is, of course, to self-fund the LTC risk. There are no up-front costs to do this while remaining liquid. The biggest risk is an extended long-term care expense could erode even the most financially sound estates and cause family turmoil. The average costs for a nursing home, assisted living and home health care continue to rise at extraordinary rates. The best plan will differ for each family, however, a great place to start is to review all options and see what suits you and your family’s needs the best.

Securities offered through Horan Securities, Inc. (“HSI”), a dually registered investment firm, member FINRA | SIPC.. HORAN Wealth Management (“HWM”) is the associated investment advisory firm. HWM is registered with the U.S. Securities and Exchange Commission (“SEC”) as Investment Adviser. Horan Securities, Inc., Horan Wealth Management are a part of HORAN, located in Cincinnati, Ohio. Investing in securities involves risks, and there is always potential of losing money when you invest in securities. The information herein has been obtained from sources believed to be reliable, but we cannot assure its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Any reference to past performance is not to be implied or construed as a guarantee of future results. Market conditions can vary widely over time and there is always the potential of losing money when investing in securities. HORAN Securities, Inc and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only. You should consult your own tax, legal and accounting advisors before engaging in any transaction. Please see the SEC Investment Adviser Disclosure hub for our Client Relationship Summary and Forms ADV 1&2. Always check on who is managing investments at FINRA’s BrokerCheck. For free investment educational information, visit the SEC’s Investor.gov website.

health.wealth.life. forward
thinking
6 800.544.8306 © 2023 HORAN. All Rights Reserved.

THE WAYMARK COLLECTIVE: UNITED IN SAVINGS AND SOLUTIONS

In 2021, HORAN launched The Waymark Collective for selfinsured employers in the middle market (100 to 1,000 employees). Employers could do everything “right” in the management of their health plan, and still, experience significant volatility and surprise at renewal based solely on unexpected large claims. Employers are willing to do the work managing risk but are still too small to bear the burden of increasingly large claims.

At its core, The Waymark Collective is a stop-loss captive that permits employers to collectively buy insurance and share the risk of large losses in their health plans. Instead of buying as a group of 200 employees, members of The Waymark Collective buy as a group of 3,500 employees. Instead of having $2 million in health plan spend, Waymark has $35 million in health plan spend. The volume of lives and premiums makes Waymark more predictable, less volatile, and more attractive to bidding reinsurers.

“A stop-loss captive is a type of insurance arrangement where a group of employers come together to share the risk associated with their self-funded health plans,” said HORAN Vice President and Waymark Collective Leader Dominic Franchini, CBC. “This allows them to access coverage for catastrophic claims that exceed a certain threshold, while also benefiting from cost savings and increased control over their health plans.”

WHY WOULD AN EMPLOYER USE THE WAYMARK COLLECTIVE?

1. COST CONTROL: One of the primary benefits of using The Waymark Collective captive is cost control. By pooling with other employers, companies benefit from economies of scale and negotiate better rates with insurance carriers. The added benefit is increased transparency and influence over how your plan is priced based on managed risk.

2. ENHANCED RISK MANAGEMENT: Employers involved in The Waymark Collective have already proven to be effective at managing risk. These employers set the standard in health care plan design, benefits structure, and risk mitigation. Members are expected to actively manage risk and have peers to help drive innovation and accountability.

3. TRANSPARENCY: Members of The Waymark Collective have access to data that drives an insurance program, including premiums, claims, and ongoing or potential risks. This permits employers to make informed decisions about their health plans.

4. DARE WE SAY FUN? Health insurance is frustrating enough. Managing it alone is almost intolerable. The Waymark Collective is a group of employers who have taken a vested interest in doing things better. The group meets throughout the year to learn, share best practices, and network. It’s a team, and a way to make health insurance more fun!

Spring 2023
forward thinking
7 www.horanassoc.com
By partnering with The Waymark Collective, employers can ensure that they have the support they need to navigate the complex world of health care risk management and protect their bottom line. Visit www.waymarkcollective.com to learn more.

Benchmarking: Everything Begins and Ends with Data

About the benchmarking: Purpose of Benchmarking:

HORAN conducts an annual benchmarking survey on behalf of our clients annually in partnership with other United Benefit Advisor (UBA) agencies and Milliman. This survey is larger than all the other leading surveys combined and is utilized by the National Association of Benefits and Insurance Professionals (NABIP) when working with legislators. It represents 10,000+ employers, and 22,000+ health plans and offers size, industry, state and region filters.

For HORAN, everything begins and ends with data. Benchmarking should be used to move clients from where they are today to where they want to be.

Market, market, market.

• Are you better?

• By how much?

• For which jobs?

• What’s unique?

Identify the gaps.

• What do you want to say?

• Who do you want to compare to?

• In what ways?

• How will you measure?

health.wealth.life.
TODAY FUTURE CREATE A POWER STATEMENT declare where you want to be. 1 2 800.544.8306 © 2023 HORAN. All Rights Reserved. forward thinking 8

forward thinking

horan benchmarking highlights:

HORAN data shows that 77% of employers offer more than one plan and of that 77%, 59% offer an HDHP and PPO.

plan renewal insights: Pharmacy insights:

Given the low cost of certain medications that treat chronic conditions, some employers offer preventive medications at no cost to improve access, increase adherence and incentivize employees to use less expensive medications.

Spring 2023
1 2 3 4 5+ Number Of Plans Offered 1.6% 3.6% 26.5% 22.5% 45.8% No preventive drug list Offers preventive drug list 33% 67% 100/0 90/10 85/15 80/20 70/30 HDHP Coinsurance Levels 63.7% 21.8% coinsurance levels clients 11.8% 1.0% 1.7% % OF HORAN EMBEDDED HDHP CLIENTS 0% 5% 10% 15% 20% 25% 30% 35% 40% $3000-3499 37% $3500-3999 7% $4000-4499 10% $5000-5999 27% $4500-4999 2% $2800-2999 12% $6000+ 5% 0% 5% 10% 15% 20% 25% 30% 35% $3000-3499 11% $3500-3999 7% 7% $4000-4499 16% $5000-5999 22% $4500-4999 2% $2800-2999 $6000+ 35% INDIVIDUAL EMBEDDED OUT-OF-POCKET LEVEL For more information and details from the first three Benchmarking Chapters released in 2022, visit our website at www.horanassoc.com/insights. 2018 55% 31% 14% how
medications
High Cost Drugs as a % of Total Pharmacy Spend from 2018 to 2021 > $5K/MM $1K-$5K/MM < $1K-/MM > $5K/MM $1K-$5K/MM < $1K-/MM 2021 41% 40% 19%
many employers offer preventitive
at no cost?
9 www.horanassoc.com

Metcut: 75 Years of Metal Magic

In 1948, Dr. Michael Field, Mr. Norman Zlatin, and Dr. John F. Kahles set out in a post-World War II attempt to develop and disseminate technical information surrounding the science of machinability. Now, 75 years later, the Cincinnati-based company is going strong as an independent, employee-owned leader in testing intermetallic materials, composites, ceramics, and coatings. As the team also celebrates its 75th anniversary in business, we’re marking 25 years of a strong partnership.

“During our 25 years together, HORAN has always been an outstanding partner for us”, said Metcut President and CEO Gregg Uebelhor. “We don’t consider them our outside insurance agents or brokers, but rather a part of our team, collaborating closely with us to provide high-quality benefits. They provide valuable solutions to our situation.”

In March, the Metcut team and HORAN Benefit Consultant Cassandra Rendina came together to celebrate 25 years of collaboration. The lasting relationship between account managers and company leaders means the 150

Metcut employees receive the highest level of health benefits in the marketplace, with personalized, hightouch service from HORAN benefit consultants.

“As Metcut is an employee-owned company, our employees are the single most critical part of our corporation. As such, providing competitive benefits are key to our success,” shared Uebelhor.

“The value we put in the relationship we have with the HORAN team is bar none,” Uebelhor stated. “While everyone is highly professional and business-like, what stands out is how extremely genuine and caring everyone is, which has led to not just a business

relationship, but a business friendship. As a client, we know that we will get outstanding service and commitment that is unparalleled from our HORAN team.”

Congratulations on 75 years of success, Metcut!

health.wealth.life. client spotlight
We don’t consider them (HORAN) our outside insurance agents or brokers, but rather a part of our team, collaborating closely with us to provide high-quality benefits. They provide valuable solutions to our situation. - President and CEo Gregg Uebelhor
10 800.544.8306 © 2023 HORAN. All Rights Reserved.
Pictured L to R, celebrating 25 years of partnership: Metcut President and CEO Gregg Uebelhor, HORAN Benefit Consultant Cassandra Rendina and Metcut HR Manager Nicole Ellison.

working knowledge

2023 Events & Education

HORAN is positioned to help assist individuals through two major life decisions: Medicare and Social Security benefit selections.

Nate Epp, Account Executive, and Michael Hermes, CFA, CFP, Vice President, Wealth Advisor, regularly host education sessions for individuals approaching the eligibility age for these benefits since 2019. The Navigating Medicare and Social Security webinar reviews the differences between Medicare Part A, B, C and D, Medicare Advantage versus Supplement plans and how to select the right coverage to meet your individual needs. Additionally, the session covers the state of the Social Security system, describing various filing options instead of filing strategies, when is the right time to apply, addressing different collection strategies and taxes.

Together, Epp and Hermes provide industry expert insights that can help individuals make more-informed decisions relating to Medicare and Social Security benefits.

Join us for one of the remaining Navigating Medicare and Social Security webinars in 2023. Each event is from 12 PM to 1:30 PM ET and offers 1.5 PDCs for recertification credit hours through the Society for Human Resource Management and 1.5 HRCI CE credit hours.

Navigating Medicare & Social Security

Thursday, May 18

Thursday, July 20

Thursday, September 21

Thursday, November 16

Securities offered through Horan Securities, Inc. (“HSI”), a dually registered investment firm, member FINRA | SIPC.. HORAN Wealth Management (“HWM”) is the associated investment advisory firm. HWM is registered with the U.S. Securities and Exchange Commission (“SEC”) as Investment Adviser. Horan Securities, Inc., Horan Wealth Management are a part of HORAN, located in Cincinnati, Ohio. Investing in securities involves risks, and there is always potential of losing money when you invest in securities. The information herein has been obtained from sources believed to be reliable, but we cannot assure its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Any reference to past performance is not to be implied or construed as a guarantee of future results. Market conditions can vary widely over time and there is always the potential of losing money when investing in securities. HORAN Securities, Inc and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only. You should consult your own tax, legal and accounting advisors before engaging in any transaction. Please see the SEC Investment Adviser Disclosure hub for our Client Relationship Summary and Forms ADV 1&2. Always check on who is managing investments at FINRA’s BrokerCheck. For free investment educational information, visit the SEC’s Investor.gov website.

At HORAN, we strive to support a brighter, more prosperous future for the individuals we serve. We designed our Financial Wellness Education Webinar Series with this goal in mind. Join our industry experts in efforts to improve financial decision-making and better prepare for the next phase of life.

Life Insurance Basics

Thursday, May 25, 12:00 - 1:00 PM ET

Nicholas R. Groman, Esq., CFP®

Vice President, Wealth Advisor, Registered Representative

Life insurance is an essential part of a financial plan that can offer your loved ones some sense of security in your absence. We will explore the types of insurance available and how to determine the amount that may work best for you through different stages of life.

The Guide for When You’re Gone

Thursday, August 24, 12:00 - 1:00 PM ET

Andrea D. Costa, Esq

Vice President, Financial Planning

Estate planning allows the opportunity to ease some of the burden on your family & friends after you’ve gone. We will discuss basic planning considerations and legal documents that may be necessary to effectively plan for the settling of your possessions and care of loved ones you may leave behind.

Retirement Readiness

Thursday, November 9, 12:00 – 1:00 PM ET

Rachele Wolf, CPFA™

Vice President, Relationship Manager, Retirement Plan Consulting, Registered Representative

The term “retirement readiness” may mean something different to everyone. Whether it conjures visions of riding in an RV across the country or a quiet debt-free life in a condo on a beach, there are key planning concepts that can help you achieve your version of retirement bliss.

Spring 2023
www.horanassoc.com 11

75 years of serving you

1948 - 2023: For 75 years, HORAN has created plans to control health care costs, protect your wealth and insure your life. But the end game for all that we do at HORAN is more than a set of plans. We believe good health and true wealth create a better quality of life for our clients and their families.

1963

EXPANDED SERVICES:

Great-West Life enters the 403 (b) business selling variable annuities to complement its other offerings of life and group insurance.

1976

TERENCE L. HORAN EARNS HIS CLU DESIGNATION:

Terry earns the designation Chartered Life Underwriter which is a designation indicative of the highest education achievement in life insurance marketing.

1948

THE GREAT-WEST LIFE ASSURANCE COMPANY:

Great-West Life Assurance Company, headquartered in Winnipeg, Canada, opens an office in 1948 at Fourth and Walnut in Downtown Cincinnati.

Jack Horan worked at Globe Furniture and sold office furniture to Great-West Life. The company recruited Jack to join their business and he began selling insurance in 1948.

1951

THE GREAT-WEST LIFE ASSURANCE COMPANY:

Jack and Elaine Horan attend The Great-West Life Eastern Regional Convention at The Greenbrier in April 1951. Jack was one of only six representatives from the state of Ohio who qualified to attend the convention.

1973

TERENCE L. HORAN JOINS THE FIRM:

“The basic foundation of HORAN was in place before I got here. The missing component was a strong team to facilitate the three practices of health, wealth and life. I wanted to create an organization that would alleviate the pressure of my father doing it alone.”

- Terence L. Horan, CLU, ChFC, CAP, President and Chief Executive Officer

health.wealth.life. 75th anniversary
HORAN OPENS OFFICE IN DAYTON :
2011 12 800.544.8306 © 2023 HORAN. All Rights Reserved.
HORAN expands footprint to the north by opening a second office in Dayton.

75th anniversary

1990

HORAN OPENS OFFICE IN KENWOOD:

HORAN Associates, Inc. moves from the Downtown Cincinnati office to Kenwood, Ohio, to accommodate a growing staff and to be more accessible for clients.

1986

DOUG MILLER JOINS HORAN: Doug Miller joins HORAN Associates, Inc. to lead the Employee Benefits Department.

1981

HORAN ASSOCIATES INCORPORATES:

The business incorporated becoming HORAN Associates, Inc. and expanded to add new clients and employees under the new legal status.

“We are grateful for our long-term partnerships because the customers of the early days allowed us to get customers down the road. Back then, it was one brick at a time, and I’m grateful for those early bricks.

- Doug Miller, Former Executive Vice President & Partner, Now Retired

2015

HORAN OPENS COLUMBUS OFFICE:

1996

HORAN SECURITIES INC. ESTABLISHED:

HORAN Securities, Inc. is formed to enhance the retirement planning needs of clients by offering a wide range of wealth management products and services.

2006

NEW CORPORATE OFFICE ESTABLISHED:

HORAN Associates, Inc. and HORAN Securities, Inc. moves its corporate offices to 4990 East Galbraith Road in Cincinnati to accommodate a growing staff. HORAN Associates, Inc. and HORAN Securities, Inc. rebrands to become HORAN.

2022

HORAN OPENS REDESIGNED OFFICE AT 8044 MONTGOMERY:

2014

HORAN OPENS THIRD REGIONAL OFFICE:

HORAN opens its fourth office located in Dublin, Ohio, to support the growing needs of clients and to expand the footprint of HORAN throughout Ohio.

2018

HORAN EMERGING BUSINESS ADVISORS LAUNCHED:

HORAN Emerging Business Advisors is established as a separate business line for HORAN, focusing specifically on small and emerging business solutions.

HORAN moved back to 8044 Montgomery, redesigning a beautiful and modern 34,000-square-foot office space.

Having served clients in Northern Kentucky for many decades, HORAN established a third office located in Fort Mitchell, Kentucky.

Spring 2023
health.wealth.life. 75th anniversary horan through the years 14 800.544.8306 © 2023 HORAN. All Rights Reserved.

During the 2023 annual company awards event, we celebrated and recognized the class of 1997, and we took the time to honor President and Chief Executive Officer, Terence L. Horan for 50 years of leadership at the company.

What’s the biggest thing you’ve learned in working at HORAN for 25 years?

“The commitment that it takes to grow an organization is really 24 hours. We are never disconnected from work. We are never disconnected from our clients. When the four of us joined in 1997, it was a small organization. I look at our organization, and how much we’ve grown and expanded. It’s a 24-hour, seven-day-a-week commitment to our clients and each other.”

“It’s amazing to see where we were in 1997 and where we are today. No matter who is in our company, the philosophy hasn’t changed. I’ve seen the company grow, but the philosophy at HORAN hasn’t changed. It’s deeply rooted with our clients, and it’s deeply rooted in Cincinnati.”

celebrating 25 years with horan

“It takes a team, and that’s probably the biggest thing. That’s what it takes to grow an organization. It’s all the people in the company that makes this place special. We’ve hired the right people to make us successful.”

“When we started, I was the 22nd employee. We were so small, and I could hear everyone in the office. We really were a family. We got to imagine what HORAN would become over the years. To grow and see this platform, and to see it get bigger, and how we’ve hired great people, I’m grateful for the learning, and it’s an exciting career. It’s because of all the employees and the pathway we’ve created, but it always takes a team and collaboration.”

It’s been an absolute pleasure and a great career. It’s not over yet. I’ve had great fun seeing the business grow. The best part was seeing all our associates come aboard to HORAN and take care of great clients. To think that we got to help our clients, provide outstanding health care through the bridge of insurance, help them accumulate and distribute wealth, or provide products to guard against a life lived too short, a life lived too long, or a life of disability. I know all of us are on a mission together in these three areas. That’s been the mission of the company all 75 years.

Congratulations! Spring 2023 75th
anniversary

Mike’s Carwash: Celebrating 75 Years of clean cars

HORAN is proud to celebrate 75 years of service in 2023 and is honored to share the milestone with one of our great Cincinnati partner businesses and a national leader in the highly competitive car wash industry, Mike’s Carwash. We sat down with the Mike’s Carwash team to reflect on 75 years of clean cars.

Brothers Joe and Ed Dahm founded Mike's Carwash in 1948 in Ft. Wayne, Indiana. Energized by America's post-WWII entrepreneurial spirit, Joe and Ed opened Mike's Minit Man Carwash. It was the first automated carwash in Indiana and only the 18th in the country. Joe and Ed took a gamble that the automobile would play an essential role in America's growth. They were right!

Little did the brothers know then that they would be pioneers in the burgeoning car wash industry. Since opening that first Ft. Wayne location, there were several important dates in the company's long and storied history:

WHAT CAN YOU ATTRIBUTE TO YOUR COMPANY’S GROWTH?

Joe and Ed wanted to ensure they had it right before expanding their business. That’s why it took them 23 years to open their second location in Ft. Wayne, Indiana.

1971: 1978:

Despite having a successful business, Joe and Ed could see that Americans were getting busier and had less spare time, especially for a car wash. So, they converted their second Ft. Wayne location from a full-service carwash to an exterior-only wash. The Mike’s Express concept was a big hit with customers and became the model for all future Mike’s locations.

1. Service

From day one, Mike’s Carwash has focused on providing the best carwash experience for our customers. Our founder, Joe Dahm, has a saying we use as inspiration across the company: “We’re in the people business. We happen to wash cars.” Everything we do focuses on customer service.

2. Technology/innovation

Mike’s Carwash is widely known as a leader in carwash technology. Our focus is always simple: provide the best wash possible, in the least amount of time. Mike’s Operations Team constantly searches for ways to improve the experience, whether through enhancing our soaps or simplifying the entry into our tunnels. We’re particularly proud of our water reclamation process, which allows us to use 70% LESS water than customers would if they used a hose in their driveway.

3. value

Ed and Joe retired, turning the company over to their three sons: Bill, Jerry, and Mike Dahm.

1993: 2014:

Mike’s owners and brothers, Bill and Mike Dahm, complete a friendly company reorganization as a part of their family succession plan. Mike’s opens a new Support Office in Loveland, Ohio, outside of Cincinnati. By the end of 2023, there will be 40 Mike’s Carwash locations in Cincinnati and Dayton, OH; Northern Kentucky; Louisville; Ft. Wayne, South Bend and Evansville, IN.

Mike’s Carwash invests resources into development and ongoing training across all departments and at every level. We run dozens of monthly training workshops on critical areas such as workplace productivity, customer experience, and team safety. We were recently honored to be a 2023 recipient of the Training APEX Award. APEX is a prestigious international training award based on a rigorous 40-page application.

4. training & development

We make every effort possible to create value for our customers. Our Unlimited Plans are extremely popular, because the more you wash, the more value you get out of the plan. We offer Early Bird pricing discounts daily between 7-9 AM, and wash books have also been very popular gifts for our customers.

health.wealth.life. client spotlight

client spotlight

WHAT VALUES HAVE DEFINED MIKE’S CAR WASH FOR 75 YEARS?

Joe Dahm said: “We’re in the people business; we just happen to wash cars.” Our focus on people doesn’t simply refer to our relationship with customers. Mike’s Carwash is widely lauded in the industry and our local communities for being a model employer. We have won numerous “Best Employer” awards across our three-state footprint, validating our team-building approach.

We Value Team Members: Team members drive Mike’s success! We seek candidates with a strong aptitude for customer service and reward them for a job well done.

We Value Integrity: Whether working with customers or other team members, we expect every Mike’s team member to act with integrity.

We Value Giving Back: As corporate citizens, Mike’s Carwash plays a vital role in the life of the communities we serve. Since 2014, Mike’s Carwash has raised more than $3.5 million to support the work of local organizations that are making a difference in people’s lives. Our ongoing charitable partnerships include:

Reds Community Fund

The Anthony Munoz Foundation

Big Brothers Big Sisters

YMCA Youth Services Bureau of Ft. Wayne

We Value Fun: The one thing that defines Mike’s Carwash culture more than anything is our focus on fun! We encourage our team members to enjoy their time at Mike’s through outings, contests, and other team activities.

WHAT WAS IT ABOUT HORAN THAT IGNITED OUR PARTNERSHIP?

Having a relationship with HORAN for benefits gave us insight into the highest level of service. Our relationship with HORAN as our 401(k) advisor began in 2023. They were on our list of firms to meet with based on the responsiveness and care we have experienced from Dominic Franchini, Cassandra Rendina, and Julie Lowe from their benefits team. In addition, Paul A. Carl and Jason Skirvin were helpful from the first meeting and have been able to help orient our team to 401(k) management.

Mike and Joe Dahm appreciate doing business with another family company from Cincinnati. Especially a company like HORAN, which also started in 1948 and prides itself on providing excellent customer service and training. We have a lot in common.

Spring 2023 OPEN DAILY 7 to 9 Buy 4 Washes Get 2 FREE on All Wash Books. On Sale April 28 - July 4, 20 2 3. Great Gifts: Bir thdays Mother’s Day, Father s Day, Grads. Purchase Wash Books at any of our 37 Locations or at mikescarwash.com.
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Dan Beard Council Announces Terence L. Horan as The 2023 Good Scout Award Honoree

The Dan Beard Council, Boy Scouts of America is pleased to recognize Mr. Terence L. Horan, President and Chief Executive Officer of HORAN, as their 2023 Good Scout Award Luncheon Honoree. The event took place Wednesday, March 22 at The Duke Energy Convention Center.

“Terry Horan exhibits living the Scout Oath both personally and professionally,” states Andrew Zahn, Scout Executive and CEO of the Dan Beard Council. “His leadership in our community is outstanding and we are thrilled to honor his example of service.”

The Good Scout Award Luncheon is one of the region’s largest networking events of the year drawing over 1,200 business and community leaders as the Scouting council’s most prominent fundraising event of the year.

“The mission and vision of Scouting transcends race, religion, gender, and geography,” states Zahn. “And each year it is incredibly humbling to see leaders, such as Terry Horan and his associates at HORAN, come together to ensure Scouting continues to develop youth who are exceptionally prepared to lead in their own way to make a positive impact in their personal lives, professions, and communities throughout their lifetime.”

“I am honored to receive the 2023 Good Scout Award,” said Terence L. Horan, President and Chief Executive Officer of HORAN. “I believe in the mission and vision of the Scouts, and the character-building efforts their programming creates for our youth. Christy and I watched our son, Cary, attain Eagle Scout status. His work and association with scouting changed the trajectory of his life. Many of our associates at HORAN are volunteering with the local Dan Beard Council to build the popularity of Scouting across the region. We are proud of their work.”

The Dan Beard Council, Boy Scouts of America, is the area’s largest youth organization serving 1,200 youth and mobilizing over 5,000 volunteers each year in 12 counties in Ohio and Northern Kentucky.

health.wealth.life.
I believe in the mission and vision of the Scouts, and the characterbuilding efforts their programming creates for our youth.
#26giveback. payitforward. trending
18 800.544.8306 © 2023 HORAN. All Rights Reserved.
- TERENCE L. HORAN, President and Chief executive officer
now

HORAN In The Community

In The HORAN Way, Fundamental #26 says “Give Back. Pay it Forward.” For 75 years, HORAN’s commitment to the community has remained unwavering. Annually, we support more than 50 organizations in our region, from ArtsWave to United Way of Greater Cincinnati to The Cincinnati Zoo and so many more.

Recently, HORAN was recognized as #7 on a list of the top 25 “Companies That Care” by the United Way of Greater Cincinnati. This honor is a true testament to the commitment to giving back and paying it forward, year after year.

CINCINNATI BUSINESS COURIER HEALTH CARE HEROES

HORAN leaders Nicolas Lance, Terence L. Horan, Karen Mueller, and Michael Hermes celebrated local health care employees recognized for their service at the annual Cincinnati Business Courier Health care Heroes event.

XAVIER ALL FOR ONE

HORAN associates and families gathered at a recent Xavier University basketball game at the Cintas Center to present a check for $20,000 to the Xavier All For One Fund, which supports student-athletes across all Xavier athletic programs.

NORTHERN KENTUCKY CHAMBER OF COMMERCE

HORAN is a proud Investor’s Circle Sponsor of the Northern Kentucky Chamber of Commerce. The annual Women’s Breakfast brought Account Executive Shannon Schumacher, together with clients and friends to learn from fellow female leaders.

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SECURE 2.0: The Impact on Retirement Plans

The Federal Budget Bill signed by President Biden on December 29, 2022 included game-changing retirement legislation. Popularly known as SECURE 2.0, this bi-partisan legislation builds on a foundation originating from 2019’s Setting Every Community Up for Retirement Enhancement (SECURE) Act. SECURE 2.0 contains 92 provisions, some of which are effective immediately and most of which will take effect over the next several years.

Most, if not all, of the provisions are designed to address the retirement savings crisis that is unfolding. In August 2022, Bloomberg reported on a Boston College study that estimated a $7.1 trillion retirement-savings shortfall existed among American households. More recently, Schwab reported that a thousand workers think they need an average of $1.7 million in savings to pay for retirement.

Overall, SECURE 2.0 appears to take a monumental step in the right direction to help. With 92 provisions, every employer should expect to be affected by SECURE 2.0 in some way. The following areas are a few important examples.

Any employer with 10 or more employees who adopted a new 401(k) or 403(b) AFTER December 29, 2022, must automatically enroll participants at between 3% and 10% increase that rate by 1% per year to a maximum of at least 10% but not more than 15%. The effective date to institute these provisions is the plan year beginning on or after 1/1/2025. While some employers struggle with requiring employees to save for retirement, statistically,

plans with auto-enrollment and auto-escalation features generally have greater active participation that boosts retirement savings balances. While SECURE 2.0 takes that decision away from future plan sponsors, existing plan sponsors may want to re-evaluate their previous decisions around auto-enrollment and auto-escalation.

The original SECURE Act addressed the retirement plan participation of long-term part-time workers (“LTPT”) by requiring employers to include the LTPT who worked over 500 hours in three consecutive years as plan participants. The effective date for this change was and remains 2024. SECURE 2.0 shortens the 500 hour/ three-year rule to two years, effective 2025. So which rule applies? They both do. The three-year rule applies for the 2024 plan year and the two-year rule applies beginning with the 2025 plan year.

Currently, employers can design plans to cause a cash-out distribution to a terminated participant if the vested account balance is $1,000 or less and force a rollover to an IRA if the vested account balance is less than $5,000. SECURE 2.0 increases the $5,000 to $7,000, effective for plan years beginning in 2024.

Speaking of distributions, SECURE 2.0 changes several rules around the Required Minimum Distribution (RMD). The RMD affects both retirement plan participants and IRA holders. The original SECURE Act moved the RMD age from 70-1/2 to 72. SECURE 2.0 moves the RMD age to 73, immediately effective in 2023, and to age 75 in 2033. Failure to take a RMD timely has often resulted in the affected individual paying an excise tax equal to 50% of the RMD amount. SECURE 2.0 reduces the penalty to 25% of the RMD amount. SECURE 2.0 also removes

Paul A. Carl, CHSA, CPFA
health.wealth.life.
20 800.544.8306 © 2023 HORAN. All Rights Reserved.
Vice President, Retirement Plan Consulting, Registered Representative
trending now

the RMD requirement from certain life annuities. Beginning in 2024, surviving spouses can elect to be treated as the deceased employee for the purposes of the RMD. Also effective for the plan years beginning in 2024, the RMD is no longer required to be taken from ROTH accounts in retirement plans; this change results in similar treatment of retirement plan ROTH accounts as compared to ROTH IRAs.

All too often an employer loses track of a former employee. When that former employee is a participant in the employer’s retirement plan and that former employee does not elect to take a distribution, the employer is faced with a fiduciary responsibility to do its best to locate that former employee. SECURE 2.0 requires the Department of Labor to create a database within two years that will allow a participant or beneficiary to search for plan administrator contact information. Employers should expect that, starting in 2025, the DOL will be requiring certain information be shared with them regarding this provision.

Mounting student loan debt has been identified as a financial concern for several years. Nerd Wallet’s analysis published in January 2022 based upon U.S. Census information indicated that 45 million Americans have student loan debt and most likely age group to have student loan debt were those individuals ages 25-to-34. In May 2022, The Washington Post reported that 67% of student loan debt belonged to those under age 40. SECURE 2.0 addresses the potential lack of retirement savings of student loan debt holders by allowing employers to match student loan payments as if those payments were elective deferral contributions. Employers will be permitted to rely on employee certification of the loan payments. This provision can take effect in plan years beginning in 2024.

For 2023, participants age 50 or older at anytime during the year can defer an extra $7,500 as a catch-up contribution. Beginning with 2025 plan year, the catch-up contribution for participants age 60 to 63 will be the greater of $10,000 or 150% of the regular catch-up limit in 2024. Also, for participants who earn more than $145,000 annually, the catch-up contributions must be made on a ROTH (after-tax) basis; this feature becomes effective after 2023. Speaking of ROTH, effective immediately, plan sponsors may

amend their plans to permit employees to elect the employer matching contribution to be made as ROTH contributions, provided the match is 100% vested when contributed to the plan.

Finally, SECURE 2.0 addressed some relief related to Top Heavy rules. A plan is considered “top heavy” when more than 60% of the benefits are attributable to “key” employees. Ask any employer who has had a top heavy plan, they can be expensive. Employers must, at a minimum, either contribute 3% of compensation to non-key employees who are participants or limit the amount of contributions that key employees can make to their retirement plan, often limiting each to 0% deferral. SECURE 2.0 permits plan sponsors to exclude employees who do not meet the statutory age and service requirements (age 21 and 1-year-of-service) from inclusion in the top heavy test. This could improve top heavy results.

These examples highlight some of SECURE 2.0’s provisions impacting retirement plans. Stay tuned for additional updates, especially as governing regulatory bodies embark on rules, regulations, and clarifications around each of the 92 SECURE 2.0 provisions.

Securities offered through Horan Securities, Inc. (“HSI”), a dually registered investment firm, member FINRA | SIPC.. HORAN Wealth Management (“HWM”) is the associated investment advisory firm. HWM is registered with the U.S. Securities and Exchange Commission (“SEC”) as Investment Adviser. Horan Securities, Inc., Horan Wealth Management are a part of HORAN, located in Cincinnati, Ohio. Investing in securities involves risks, and there is always potential of losing money when you invest in securities. The information herein has been obtained from sources believed to be reliable, but we cannot assure its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Any reference to past performance is not to be implied or construed as a guarantee of future results. Market conditions can vary widely over time and there is always the potential of losing money when investing in securities. HORAN Securities, Inc and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only. You should consult your own tax, legal and accounting advisors before engaging in any transaction. Please see the SEC Investment Adviser Disclosure hub for our Client Relationship Summary and Forms ADV 1&2. Always check on who is managing investments at FINRA’s BrokerCheck. For free investment educational information, visit the SEC’s Investor.gov website.

Spring 2023 trending now 21 www.horanassoc.com
Overall, SECURE 2.0 appears to take a monumental step in the right direction to help. With 92 provisions, every employer should expect to be affected by SECURE 2.0 in some way. - Paul a. Carl, Vice president, retirement plan consulting

A Total Rewards Strategy Built to Propel Business Success

Over the past two years, HORAN has hosted three different seminars all focused on building a datacentered, multi-year Total Rewards strategy designed to support you through a complex and everchanging environment. In these sessions, we’ve focused on using data to embrace innovation, control costs and navigate economic and workforce challenges.

After emerging from the COVID-19 lockdown in February 2021, we refocused (because it has always been a priority) on the importance of a thoughtful plan aligned with business goals. At that time, health care costs were lower-thanexpected as a result of delayed care, but that was not indicative of population health. The demand for

goods and services was at an alltime high, but employers struggled to staff the talent needed to keep up. There was an explosion of new product and service innovations that could be bolted onto your benefits portfolio, but too much choice led to confusion. Employers questioned if their benefits package was competitive enough and if wages were keeping up and wanted to know what else they could offer to attract and retain talent.

These challenges from 2021 still exist today. Labor shortages remain and the market continues to innovate. But new factors have also emerged:

• Inflation rose to 9% in June 2022 and is currently 6.4%.1

• Interest rates increased to 7%.2

• Health care utilization and costs have returned to pre-pandemic levels.

• The prevalence of anxiety and depression has increased by 25%.3

• The Supreme Court decision in Dobbs vs. Jackson has forced States and group health plans to make decisions about access to Reproductive Health.

• Multi-million-dollar gene therapy treatments have emerged on health plan claim reports.

• Premier hospital systems, like The Cleveland Clinic, reported losses in the millions because of the increased labor, supplies, and pharmaceutical costs.4 The

health.wealth.life.
INFLATIO N
working knowledge 22 800.544.8306 © 2023 HORAN. All Rights Reserved.

in June 2022 and is currently 6.4%.1

working knowledge

commercial insurance market (i.e. employer funded health plans) will take on more cost as provider expenses increase, or communities risk hospital system consolidation which has shown to reduce competition and increase costs in the long term.

Yet, despite warnings of a recession, the last two quarters of 2022 experienced economic growth. Businesses and consumers have been resilient. We should expect new environmental forces to emerge testing that resiliency, as we’ve seen in the banking industry in recent weeks. Moreso than ever, employers should consider how their investment in Total Rewards, in terms of cost and recruiting & retention effectiveness, impacts their business strategy.

The most effective way to ensure your Total Rewards package is built to support your business goals and sustain a dynamic environment is with a multi-year strategic plan focused the entire benefits ecosystem. The process to build a plan begins with a conversation about your business and culture. Our work entails zeroing in on your data to crystalize the needs of your workforce and focus on high impact

you can proactively manage risk and implementing effective health improvement initiatives to protect your plan and employees long term.

In our February seminar titled, “Future Prepping Your Benefits”, we discussed that the future is here already and employers should prepare themselves to act if they haven’t already. Let us know what you are trying to address. We are

1 https://www.usinflationcalculator.com/inflation/current-inflation-rates/

2 https://ycharts.com/indicators/30_year_mortgage_rate

3 https://www.nimh.nih.gov/health/statistics/mental-illness

4 https://www.fiercehealth care.com/providers/investment-losses-and-15expense-increase-pushes-cleveland-clinic-787m-loss-q2-2022

inflation Interest rates increased to 7%.2 +7% interest rates in prevalence of anxiety and depression 25% increase
9%
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Suite 640

Securities offered through Horan Securities, Inc. (“HSI”), a dually registered investment firm, member FINRA | SIPC.. HORAN Wealth Management (“HWM”) is the associated SEC Registered Investment Advisor. HORAN Capital Advisors (“HCA”), an affiliated investment advisory firm, is also an SEC Registered Investment Advisor. Horan Securities, Inc., Horan Wealth Management, and HORAN Capital Advisors are part of HORAN, located in Cincinnati, Ohio. Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. The information herein has been obtained from sources believed to be reliable, but we cannot assure its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Any reference to past performance is not to be implied or construed as a guarantee of future results. Market conditions can vary widely over time and there is always the potential of losing money when investing in securities. HORAN Securities, Inc and its affiliates do not provide tax, legal or accounting advice. Please see the SEC Investment Adviser Disclosure hub for our Client Relationship Summary and Forms ADV 1&2. Always check on who is managing investments at FINRA’s BrokerCheck. For free investment educational information, visit the SEC’s Investor.gov website.

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