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Winter 2015

health. wealth. life.

A Journey Begins with a Single Step In Pursuit of What Matters Most.


Winter 2015 CO N T E N T S PAGE 3 – A Letter from Terry Horan, President & CEO PAGES 4 & 5 – Firm Overview: HORAN Client Specialists PAGES 6 & 7 – Wellness Works: Rumpke Waste & Recycling PAGE 7 – Scott Silver Joins HORAN as Health Management Director PAGES 8 & 9 – Creating a Path to Productivity through the Improvement of Physical and Financial Health

EDUCATION CALENDAR March 12 Small Business Solutions Roundtable April 22 Corporate Retirement Planning Seminar

PAGE 10 – Concerned About Your Retirement? — How to Not Outlive Your Money PAGE 11 – Minding the Disability Insurance Gap PAGES 12 & 13 - HORAN Education Recap PAGES 14 & 15 – Sharing Expertise to Build Stronger Communities PAGE 16 – HORAN Celebrates 25 Years of Support for the CSO, United Way Names

HORAN to Tremendous 25, HORAN Recognized at National Philanthropy Day

PAGE 17 – HORAN Donates Cherry Trees to Greater Dayton Region to Commemorate

Look for us online! Go to horanassoc.com and click on Education to find out more about upcoming educational opportunities as more seminars will be scheduled throughout the year. Also, visit our Newsroom to view the online version of health.wealth.life.

65th Anniversary

PAGES 18 & 19 – Client Spotlight: Wright State University Please join us in welcoming our new corporate clients! - Allied Supply Co. - Bessler Auto Group - Bob Ross Auto Group - Eagle Financial Services, Inc. - Extermital - HiFive Development Services Inc. - Hyde Park Golf & Country Club - Rogers & Greenberg L.L.P. - YWCA Dayton

- Innovative Student Loan Solutions - University of Cincinnati Foundation - Vapor Systems Technologies Inc. - Millikin & Fitton Law Firm - Reliance Medical Products - United Property Group - Edison State Community College - Healthcare Regional Marketing

Cover: The Golden Shoe is a coveted award given to the HORAN employee who generates the highest percentage of goal in the office. It motivates members of the HORAN Sales team to start their journey towards sales excellence at the beginning of each fiscal year. The Golden Shoe represents the beginning of a journey and, once the year is through, illustrates remarkable commitment and achievement. (Pictured: Dominic Franchini, Vice President at HORAN and 2014’s Golden Shoe recipient.)

health. wealth. life.

Remembering Elaine Horan Elaine Mary Horan, wife of our founder the late John F. “Jack” Horan, passed away on January 20, 2015, after recently turning 95. Elaine played a big part in the formation of the company and was very engaged in our activities even after her husband Jack passed away. One of our core beliefs at HORAN is that spouses play a vital part in the overall health of our company. Elaine played a key role in many ways. She created many of the traditions that continue today and was an essential part of creating HORAN’s culture. Elaine will be missed, but she will be remembered with gratitude and love.

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Employers are faced with an abundance of challenges in offering employees health care coverage and helping employees become more financially secure. The high cost of health care, reduction in retirement plan benefits and other defined contribution plans, care for aging parents, care for children who can’t pay for college—all create significant concerns for individuals in the workplace. In order to overcome these challenges, many employers are choosing to offer wellness programs to help employees get healthier in an effort to reduce absenteeism, increase retention and contain health care costs. Adopting healthy lifestyles to address the spiraling cost of health care is a crucial step. Employers should also recognize that a significant number of their employees are dealing with financial stress that can contribute to medical issues and lost productivity. The FinFit National 2014 Survey reports financial stress is a substantial and growing contributor to absenteeism and decreased productivity. Eighty-six percent of business owners and professionals said financial stress among employees led to absenteeism, decreased productivity and distraction. HORAN understands the important role physical and financial wellness both play in employer and employee success. When an employer links the two together, they create a “Path to Productivity”. An article on pages eight and nine explains how closely intertwined physical and financial health are in an employee’s overall wellness. HORAN’s wellness program has been recognized at the regional and, most recently, at the state level with the Healthy Ohio Healthy Worksite award. HORAN added a financial component to expand our corporate wellness program. We did this to strengthen our ability to improve the physical and financial health of HORAN employees through both wellness initiatives and financial education. Integrating these two elements of wellness to boost the individual wellbeing of our employees is important to our business and our ability to advise our clients. Sincerely,

Terence L. Horan, CLU, ChFC President & CEO of HORAN TerryH@horanassoc.com

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A letter from Terry Horan

In Pursuit of What Matters Most.


health FIRM

VERVIEW: HORAN CLIENT SPECIALISTS

Pictured (Left to Right): Standing — Kristina Buzin, Amanda Herdeman, Andrea McGlamery, Carrie Glandorf, Jennifer Johnson and Laura Beth Botos; Seated — Kriste Berting, Beth Cornella, Nicole Gruenke, Kelli Finn and Melissa Winchester. Not Pictured: Alison Bristol, Maggie Kroeger, Anne Paulus and April Wilson.

“What differentiates our Client Specialist team is the integrity and passion displayed by each team member. They turn over every stone and beat down every door to do what is right for the client and its employees.” Carrie Glandorf, Client Specialist Leader HORAN

C

lient Specialists are the technical executors of the HORAN employee benefits consulting practice. They provide employer and employee support through implementing and servicing dayto-day problems with new and existing insurance policies. Client Specialists help employees navigate through the maze of insurance: when they are having problems with claims, when they have benefit questions about upcoming procedures including how things will be covered, places to shop around and how to get the most from their benefit dollar. They also help employees with some of the more difficult aspects of benefits, including when claims get denied, filing for an appeal and even writing letters to departments of insurance on behalf of employees. Experts with plan design, communication,

health. wealth. life.

compliance and crafting creative solutions to challenging issues, HORAN Client Specialists deliver a sense of security to both employers and employees by working with clients on an individual basis to service their benefit needs. Unique to HORAN’s Client Specialists is their curiosity to seek solutions to any problem. Each employer is unique; each employee question is unique—being resourceful and persistent is essential.

Foundational Advocacy Services HORAN’s Client Specialists represent and communicate the benefit strategy for the employer client to the employee during enrollment meetings. Client Specialists also have one-on-one follow-up meetings to help guide individuals to find which plan works best based on his or her own health care utilization.

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Health care decisions make a large impact on financial situations and personal lives, and HORAN Client Specialists have achieved the balance between knowing their clients on a professional and personal level. HORAN clients value and rely on the Client Specialists’ advocacy services with the ultimate goal of achieving the best outcome for the employer and the employee. “What differentiates our Client Specialist team is the integrity and passion displayed by each team member. They turn over every stone and beat down every door to do what is right for the client and its employees,” said Carrie Glandorf, Client Specialist Leader at HORAN.

Impact of Health Care Reform

exchanges and the introduction of different voluntary benefits. HORAN Client Specialists are aware that employees have a lot more options. There are four different generations in the workforce at one time; it is important to engage all four generations in their benefits and help navigate them through the benefit-buying decision.

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The depth of the HORAN Client Specialist organization continues to grow. With additions this year, the experience of some individuals exceeds 15 years.

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Employee engagement is a hot topic right now with health care reform, private

Looking Ahead

200

Attended Open Enrollment Meetings

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HORAN has established a toll-free phone number—844-MY-HORAN—for employees to have guaranteed access to speak to a HORAN Client Specialist during business hours.

Refined Focus on the Employee

14 HORAN Client Specialists

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The department takes a proactive stance on health care reform through weekly compliance meetings discussing both recent and ongoing legislation—with the technicality comes more training and collaboration.

Sessions on ERISA, COBRA and Medicare are held throughout the year as well. The department is tested throughout the year on the knowledge they learn during these training classes.

From October to November of 2014

The Client Specialists achieve customer satisfaction by regularly holding employee meetings and table-sits, where they are available to educate employees on topics that include wellness, website usage and benefit implementation. The ultimate goal is focusing on the employee and the Client Specialists believe the most effective way to carry out that goal is through communication.

“Health care reform has added another layer of complexity to the benefit landscape,” said Glandorf. “It is forcing us to be even more curious and resourceful.”

“BUSY SEASON”

Client Specialists focus on “all things employees.” This includes working through claim issues and benefit questions.

As the health care landscape continues to change, Client Specialists have to keep up with the evolving rules and regulations.

In addition to weekly training, the Client Specialists take a deeper dive into both pre-reform and post-reform legislation during “Compliance Bootcamp” sessions. “Bootcamp” is mandatory and the organization is tested during the year to validate the information they learn.

BREAKING DOWN THE

“Their commitment to our clients amazes me,” said Glandorf. “The time they dedicate during our busy season, the challenges they face every day and how much they care about their clients and clients’ employees are astounding.” Client Specialists are trained to answer any question for any client. Many individuals have the Certified Benefits Specialist (CEBS) designation, the most highly-respected credential in the benefits industry for over three decades, while others are actively pursuing the designation to best support their clients.

“One of the most rewarding parts of our job is building relationships with employees during Open Enrollment. With the impact of wellness, we meet the individuals who lost weight and received the benefits of the programs we helped design. And we can appreciate the success because we’ve built that relationship overtime.” —Carrie Glandorf, Client Specialist Leader

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health

Wellness Works Rumpke Disposes of Poor Health Behaviors in Favor of Wellness

Rumpke Waste & Recycling has kept neighborhoods and businesses clean in Ohio, Kentucky, Indiana and West Virginia for more than 80 years. The organization is one of the largest privately owned residential and commercial waste and recycling businesses in the country. The family-owned business is thriving as the fourth generation of Rumpkes have joined the company. Rumpke has grown to an employee base of 2,600 individuals. Rumpke elected to bring wellness into the workplace four years ago. Its wellness program was established with the end goal of helping employees lead healthy, long lives without the burden of pain, illness or extra medical expenses. “Our business strategy is to put people first—our employees and our customers,” said Charla Cabe, Director of Human Resources at Rumpke. “If we look out for one another, our team will be stronger. When we are well, we are at our best. We are a smarter, more efficient organization, and the impacts are evident across our business lines with improved productivity. Better awareness leads to prevention, which helps minimize health issues and therefore rising health care costs.” Rumpke turned to HORAN to help find the right partners to help the organization with its wellness journey. “When we started our wellness initiative, HORAN went out and looked at different vendors to see who was doing something different and innovative—and UnitedHealthcare (UHC) was that partner,” said Jim Hatfield, Benefits Manager at Rumpke. “UHC provided us with our own onsite nurse, Rumpke RN, who focuses

health. wealth. life.

solely on our company. She has been one of the keys to the success of our wellness program.” The Rumpke RN, Terry Winoker, and a Rumpke wellness committee comprised of employees from several of the 46 locations help champion the wellness initiative. Together they work to develop programming and education opportunities to help focus on preventive care targeting chronic illnesses such as heart disease, diabetes and lung disease as well as overall well-being. Over the past four years, Rumpke has taken major strides in its wellness programs. The company offers on-site biometric screenings, online health risk assessments, fitness classes such as Zumba and yoga at various locations, stress management programs and chair massages, fitness facility discounts, weight loss competitions and healthy food options. One of the ways Rumpke tries to get employees to embrace the wellness program is to offer participation-based incentives for completing a biometric screening and online health risk assessment. The organization moved to an outcomes-based wellness program rooted in one of its main wellness goals: to reduce the employee body

mass index (BMI), which is a measurement of body fat based on height and weight. “Our population has a higher than average BMI based on testing we have done over the past few years,” said Hatfield. “We want to make people aware of how important that number is because of how many health conditions are affected by BMI.” In 2015, Rumpke is offering a $150 bonus to employees who are within the healthy BMI range, greater than 17.5 and less than 30, or who improve his or her BMI from last year. Employees can also participate in an online wellness program through UnitedHealthcare.

“GREEN” IDEA FOR PROMOTING WELLNESS In 2015, Rumpke is offering a $150 bonus to employees who are within the healthy BMI range, greater than 17.5 and less than 30, or who improve his or her BMI from last year.

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Winoker works closely with employees to give medical advice on how to achieve a healthy BMI. “Our programs must accommodate our diverse workforce and directly address their needs,” said Cabe. “Drivers, for example, may come to work here at a young age. As their careers develop they may be promoted from very labor-intensive, physical work to more sedentary positions. With age, and less physical activity, the stage is set for a workforce that may experience more weight gain, high blood pressure, heart disease and diabetes. We have to implement and structure a program that entices all of our team members to become aware and more involved in their own wellness.” Additionally, Winoker helps employees understand how to become better, more conscious health care consumers. She works with employees to connect them with primary care physicians and to reduce the cost of their prescriptions. Finding ways to encourage and motivate the workforce is key as well. “Many of our employees work alone; there is no one sitting next to them encouraging them to adopt healthier habits,” said Hatfield. “It’s up to them to make changes.”

The Rumpke Leadership Team Communication and buy-in from the Rumpke leadership team have helped elevate Rumpke’s wellness initiative. “Wellness has become part of the Rumpke culture,” said Cabe. “Employees know and understand the value of biometric screenings. Our leadership, the Rumpke family, takes part in the programs and screenings. On screening day they are standing in line with the other employees. No one is exempt and the expectations are the same for all. By making wellness a priority here at Rumpke, we are putting our

care into action. When possible, we want to provide our team members with access to the resources they need to lead healthy and happy lives.” Rumpke employees are beginning to realize the direct impact of wellness. “We have people tell us they are saving $200 a month on their prescriptions,” said Hatfield. “Also, during biometric screenings, we identified issues and employees received necessary and immediate treatment to avoid major health complications.”

Scott Silver Joins HORAN as Health Management Director Scott Silver, Health Management Director, works with clients and members of the HORAN Health Management committee to design and implement wellness programs that can improve participant health and address the rising cost of health care. HORAN’s Health Management approach provides employers with practical insights for customized solutions, recommendations and strategies to help them execute and achieve measurable outcomes related to employee health and their health care costs. Scott helps clients navigate through all of the options, programs and vendors to recommend the best service based on their business needs and desired outcomes. He engages in wellness research and analysis and provides HORAN’s Health Management education for clients. As the former Vice President of Human Resources for Standard Textile Company, Scott leveraged his expertise with the development and coordination of Standard’s top-performing wellness program that is nationally recognized for its overall results. For clients who want to be thought of as trend benders, he can provide practical real-world experience to clients who want to move their organization ahead. Scott possesses over 30 years of experience in Human Resources Management. In addition to his position at Standard Textile, Scott was the Vice President of Human Resources for the Hill-Rom Company, a division of Hillenbrand Industries, Inc. and the Vice President of Human Resources for Little Tikes, a division of Rubbermaid Inc.

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[ PART ONE ]

health l wealth Creating a Path to Productivity through the Improvement of Physical and Financial Health

Regardless of industry, location or number of employees, companies nationwide are facing the same challenges.

Employees’ concern over their finances has a direct effect on their work lives as well as their physical health.

Obstacles including the rising cost of health care, uncertainty about the impact of health care reform and lack of employee loyalty impact a corporation’s strategy for the future.

Fifty-nine percent of employees have experienced a personal issue that has affected their ability to get their work done—of those, 40% experienced a health problem.3

One of the biggest challenges is poor physical and financial health, which has a profound impact on productivity and absenteeism.

Many employees are not prepared for unexpected health care costs, and rising health care costs have made this even more challenging.

The effect can take a major toll on an employer’s bottomline.

Sixty-one percent of employees are concerned about having enough money to pay unreimbursed medical expenses.4

This article, which addresses the impact of poor physical and financial health on employees and employers, is the first of a two-part series. The next article will detail solutions and strategies on how to address these two major workplace challenges.

THE IMPACT ON EMPLOYEES Americans across the nation are undoubtedly feeling the results of poor physical and financial health. Much of this is due to poor nutrition, little physical activity and a lack of financial savings. Fifty-four percent of Americans have less than $25,000 in retirement savings— and 27% of retirement savers have accumulated less than $1,000.1 The reason why Americans are not saving as much as they need to is because 76% of Americans are living paycheck to paycheck.2

health. wealth. life.

The increase in health care costs has far surpassed the rate of general inflation. The typical family had just $95 a month more to devote to non-health spending in 2009 than a decade earlier. Had the rate of health care cost growth kept pace with general inflation, the family would have had $545 more in spendable income per month—a difference of $5,400 per year.5

THE IMPACT ON EMPLOYERS The effects of poor physical and financial health on an employer are as apparent as they are on an unhealthy employee. Research examining a broad array of chronic health factors places the economic effect of lost productivity at $1.1 trillion per year.6

Ignoring the importance of financial wellbeing can have serious impacts, as it’s one of the five elements of well-being and one of the single most important—and often overlooked—determinants of overall health, cost and productivity according to the Gallup Healthways Well-Being Index. However, only 15% of large U.S. companies offer any education around debt management and budgeting to their employees.11 Financial stress not only impacts physical health, it also leads to reduced productivity and profitability. On average a financially stressed employee spends 20 hours per month dealing with financial issues at work—cost of this lost productivity is $7,000 per year for each stressed employee, with a total cost of $1.75 million per company per year.7 Absenteeism or presenteeism, where a worker is physically present but mentally absent due to distractions about financial concerns, accounts for additional costs incurred due to financial or physical illness. Presenteeism steals away about six hours of productivity per month per employee, resulting in an annual cost of $500,000 per year on average per employer. In addition to lost productivity and presenteeism, employees who are financially stressed are more likely to seek other employment.

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2014 Gallup Healthways Well-Being Index Map

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Green indicates the healthiest states and red indicates the least healthiest states.

The average workplace turnover per year is 15% and 40% of that turnover is due to stress. The cost of replacing each employee is at least $3,500, with a total annual cost of $210,000 per company.8

HITTING CLOSE TO HOME According to the 2014 Gallup Healthways Well-Being Index9, Ohio and Kentucky are in the bottom 10 states, ranked 46 and 49 respectively, for overall well-being. The survey ranks each state in terms of six key components; life evaluation, emotional health, work environment, physical health, healthy behaviors and basic access. Americans are most likely to be considered thriving in their social well-being and suffering in their financial well-being across five elements of well-being measured by the 2014 Gallup Healthways Well-Being Index. In general, more

Americans are suffering or struggling than are thriving across all five elements of well-being. In 2013, Gallup Healthways released survey results of a study that measured America’s most miserable states10. The survey reported that Ohio was the fifth most miserable state and Kentucky was the second most miserable state. The survey stated that Ohioans were the eighth highest percentage of obese residents and residents generally had low evaluations of their lives, trailing only West Virginia and Kentucky. According to the survey, Kentucky residents were among the most likely to complain about lack of energy and sleep, and nearly 30% said health issues prevented them from going about their normal lives. Kentucky had some of the unhealthiest behaviors last year—less than 60% of those

surveyed said they ate well every day, the worst among all states.

LOOK FOR THE NEXT ISSUE OF HEALTH.WEALTH.LIFE. The next edition of health.wealth.life. magazine will contain the second article of this two-part series. The article will contain solutions and strategies on how employers and employees can create a path to productivity through the improvement of physical and financial health. 1. 2010, Employee Benefit Research Institute−Education and Research Fund. 2. Bankrate’s June 2013 Financial Security Index. 3. 2011, Aflac WorkForces Report. 4. Paul Taylor, “How Rising Out-of-Pocket Medical Costs are Elevating the Value of Disability Insurance”. MetLife 2013. 5. Grace-Marie Turner, “Hearing on Regulations, Costs, and Uncertainty in Employer Provided Health Care,” 2011. 6. Milken Institute, An Unhealthy America: Economic Burden of Chronic Disease, 2007. 7. Estimate of time at work spent on personal financial problems by a financially distressed employee, Dr. Thomas Garman, Personal Finance Employee Education FoundationTM, www.pfeef.org. 8. www.webpronews.com/ (2006-07). 9. http://cdn2.hubspot.net/hub/162029/file-534269477-pdf 10. http://www.usatoday.com/story/money/business/2014/02/23/mostmiserable-states/5729305/ 11. http://www.healthways.com/solution/default.aspx?id=1148

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wealth

CONCERNED ABOUT YOUR RETIREMENT? How to Avoid Outliving Your Money

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GET OUT OF DEBT

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LIVE ON A BUDGET

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Get out of debt as soon as possible. After you are out of debt, you will be able to save more and live off of less money per month.

Set aside a total amount of money each month from your guaranteed income to cover essential needs. Use your regular savings for lifestyle expenses.

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INVEST FOR INFLATION

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DELAY SOCIAL SECURITY

7

SEEK FINANCIAL LITERACY

CONTINUE TO SAVE Continue to save your money as much as possible per month to ensure you will have enough funds and you do not outlive your money.

DOWNSIZE Think about downsizing your home once you have the opportunity. Chances are the house you are currently residing in is larger than you need.

health. wealth. life.

Account for the rapid rise and fall of inflation rates when investing your money for the future. Look at trends from the past to get a better understanding of inflation.

Do not take your Social Security benefits out early. If you decide to take early benefits, you run the possibility of being shorted the amount you may have received over your lifetime. In order to get the most out of your Social Security benefits, retire after your full retirement age. Payments increase by 8% each year you delay.

Consult a financial planner to better understand the risks and available choices for managing earnings before and during retirement.

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life Minding the Disability Insurance Gap Greg Hoernschemeyer, Vice President at HORAN, and Tami Barraclough, Manager, Disability Insurance for M Financial Group,* collaborated to co-author an article for Private Wealth’s online blog. This article discusses how integrated executive disability plans are designed to address gaps in coverage of highly skilled executives and managers if a disability should occur and they are no longer able to work. For those whom earning an income is a critical component of long-term financial security, the article points out that these integrated plans may provide a more comprehensive way to protect the current and future earnings potential of higher-income professionals. Achieving long-term financial security in a rewarding career is a priority for many and income is a critical component of getting there. Ninety percent of individuals feel their ability to earn an income is more valuable than their home and personal possessions, medical insurance or savings, according to a study by the Council for Disability Awareness. What would happen to that valued asset—your ability to earn income—if you were unable to work for two-and-a-half years (the average long-term disability claim duration) because of an accident or illness? In the event of a disability, individuals earning $250,000 annually stand to lose more than $5 million over 20 years. The Social Security Administration estimates one in four will be disabled before retirement. With the risk of a disabling event being three to seven times more likely than death during working years, it is important to review clients’ income protection plans to make sure they provide adequate coverage. Group long-term disability (LTD) coverage offered through an employer provides basic income protection but often falls short of adequately addressing the needs of highly skilled executives and managers: •

Insured Earnings – Group LTD plans are designed to replace a specific level of earnings if an employee becomes disabled. The most common plan replaces 60% of base salary only, which would create an income gap for highly compensated individuals paid through commissions, K-1 distributions or bonus income. Maximum Monthly Benefit – Eighty percent of group plans have a maximum benefit of less than $10,000 per month. This means a 60% plan protects no more than $200,000 of base salary. An executive earning a $250,000 base salary and an $80,000 bonus is only being insured at 36% by a $10,000-per-month plan. Taxability of Monthly Benefits Received – Benefits are taxable when premiums are paid by the employer, further reducing the 36% of income replacement.

Benefit Features – Disability definitions in a group LTD plan and the benefits provided are often relatively restrictive. There are also limitations on return-to-work benefits and specific illnesses, and coverage is not portable.

Integrated executive disability plans are designed to address these gaps and provide a more comprehensive plan for protecting the current and future earnings potential of higher-income professionals. Through an integrated plan approach that utilizes supplemental individual coverage to insure a greater portion of an executive’s compensation, policies contain more comprehensive benefit features, provide additional benefits for more severe disabilities, guarantee premiums to retirement age (fixed premium coverage) and are individually owned (making them portable). When these policies are purchased through employer sponsorship, they may be available on a guaranteed standard issue basis (no medical underwriting) with significant pricing discounts. The more

In the event of a disability, individuals earning $250,000 annually stand to lose more than $5 million over 20 years. participants there are in the integrated plan, the more guaranteed coverage and the lower the premiums. Disability insurance can be a difficult subject to address. No one wants to think about the possibility that something could happen to prevent them from being able to live the life they’ve worked toward or even to continue to live as they currently are. An insurance advisor is able to help organizations work through complex coverage decisions to develop an integrated executive disability plan to address any gaps and protect against unforeseen circumstances. *HORAN is a member of M Financial Group. M Financial is an elite financial services company, owned by its members and management team. Its mission is to support its member firms through provision of services and products specifically designed for the affluent market.

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HORAN EDUCATION RECAP

education HORAN Hosts Seminar for CPAs and Attorneys It is critical, now more than ever, for estate planning attorneys and CPAs to understand the impact of the implementation of new laws under the Affordable Care Act (ACA), the impact of the ACA on health care costs in retirement, what Medicare covers and what it does not as well as the strategies available to create predictable and sustainable streams of income in retirement. HORAN hosted a complimentary presentation, entitled Strategies to Create and Protect Retirement Income, for attorneys and CPAs. The course was approved for 2.00 total CLE hours of instruction in Ohio and Kentucky and for 2.00 total CPE hours of instruction in Ohio. The presentation covered the following topics: Affordable Care Update— Impact on Individuals & Employers in 2015; planning for health care costs in retirement; Social Security choices to increase client income; and taxadvantaged strategies using qualified and nonqualified retirement plan strategies to build and transfer assets. HORAN experts covered each topic. The presenters included Terence L. Horan, CLU, ChFC, President & CEO; Dominic Franchini, CBC, Vice President; Anna Pfaehler CFP®, Director of Financial Planning; Michael D. Napier, CFP®, Vice President; and Paul Carl, Vice President—Retirement Services. The presenters linked each of the topics together to demonstrate the material’s interconnectivity and relevancy in helping clients achieve stability in retirement. HORAN plans to host another session of this seminar in 2015 as well as additional educational offerings throughout the year.

Dominic Franchini, CBC, Vice President, gives an update on the Affordable Care Act at the HORAN seminar for attorneys and CPAs.

health. wealth. life.

Visit horanassoc.com to learn more about HORAN’s 2015 Education Series.

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HORAN Hosts Counting, Reporting & Measuring Seminar at Northern Kentucky Chamber’s HORAN Conference Room Shelly Hodges-Konys, CBC, HORAN’s Compliance expert, presented at the Counting, Reporting & Measuring seminar in November 2014. The seminar took place in the HORAN conference room at the Northern Kentucky Chamber of Commerce. The seminar explained what employers should prepare to do under the Affordable Care Act, including determining full-time status whether you are using the monthly or look-back method, understanding the new reporting obligations and potential alternatives, clarifying the interaction between measuring and reporting as well as why you can’t wait until 2015 to begin the process. Shelly leads HORAN’s Health Care Reform and Compliance practice for employee benefits clients. Her 18 years of experience in benefits consulting enables Shelly to develop customized communication and education processes that promote greater employer/employee understanding.

Karen Mueller Speaks at ALIGN: A Summit on Increasing Value in Health Care in Washington, DC

Karen Mueller, CBC, Executive Vice President, was a presenter at ALIGN: A Summit on Increasing Value in Health Care in Washington, DC, November 13 and 14, 2014. Robert Wood Johnson Foundation hosted the national summit to discuss what’s working—and what’s needed—to improve health care quality and reduce costs in the United States. The summit’s presenters took an in-depth look at what specific regions of the country did to improve their local health care markets and discussed what other communities can learn from their experience. Karen spoke during a session entitled “The ‘Buy Side’: Leveraging Purchasing Power,” which highlighted how three communities have worked with public and private employers to strengthen their market influence through a collective voice and leverage their purchasing power to push for changes to benefit design, care delivery and payment systems in their region. Dr. Richard Shonk, Chief Medical Officer at The Health Collaborative/Greater Cincinnati Health Council/HealthBridge, was also a speaker at the session.

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leadership Sharing Expertise to Build Stronger Communities HORAN is committed to improving the quality of life in the communities where our employees live and work. We believe we have a responsibility to serve our regional community as a good corporate citizen to create strong communities that increase the economic vitality and quality of our neighborhoods. As a company and individually, we support initiatives that educate, enrich and heal. In 2014, HORAN employees contributed more than 2,000 hours of volunteer time to charitable, community and civic organizations. HORAN, as a company, provided financial support to over 75 organizations in the Greater Cincinnati, Northern Kentucky and Dayton market areas in 2014.

Julie Highley, CBC, Senior Vice President, serves as a member for the Goering Center Board of Advisors. The Goering Center supports growth through excellence in education and training in fields such as leadership, succession planning, strategic planning and best practices. Julie and the other members of the Goering Center Board of Advisors provide a sounding board for the Center’s activities, critical volunteer assistance and expertise and support through participation in its educational programs.

health. wealth. life.

Paul Carl, Vice President — Retirement Services, serves as a Holy Cross High School Board member, a member of the Planned Giving Committee at Thomas More College and a member of the St. Elizabeth Healthcare Systems Foundation Planned Giving Committee. Paul uses his extensive experience and competency in fiduciary matters, regulatory compliance, risk identification and resolution, investments and employee education to help each organization meet its financial goals.

Laura Beth Botos, CBC, Client Specialist, was selected as a member for the May Festival Chorus, the official chorus of the Cincinnati Symphony Orchestra. Laura Beth joins HORAN’s Lauren Peter, Account Representative, as a member of the chorus. The May Festival Chorus has earned acclaim locally, nationally and internationally for its musicality, vast range of repertoire and sheer power of sound. The chorus of 145 professionally trained singers is the core artistic element of the Cincinnati May Festival as well as the official chorus of the Cincinnati Symphony and Pops Orchestras. | 14 |


Greg Hoernschemeyer, CLU, Vice President, co-chaired Talbert House’s 2014 Step Up to the Plate event held on Saturday, November 8, 2014, at Summit Restaurant at Cincinnati State. More than 175 guests attended the event, which included a cooking demonstration by Master Chef John Kinsella, a silent auction and live entertainment. The event raised more than $51,000 for Talbert House’s Camp Possible program, a day camp for children struggling with mental illness and/or substance use.

Kristina Buzin, Client Specialist, helped found the Greater Cincinnati Chinese Chamber of Commerce – Young Professional (YP) Chapter. The Greater Cincinnati Chinese Chamber of Commerce provides a bridge between the business communities of Greater China and Greater Cincinnati through education, the promotion of business opportunities and the facilitation of business dialogue. Kristina is also an active member of the YP chapter and frequently organizes meetings and networking events for the organization. Prior to joining HORAN, Kristina spent almost two years in Beijing, China.

Karen Mueller, CBC, Executive Vice President, was selected as one of 10 women to receive the 2014 Woman of Excellence award given by the West Chester– Liberty Alliance Chamber. The award winners are selected based on excellence in their current career, volunteer work, enhanced business, education, culture or philanthropy efforts as well as outstanding service to our region. The ceremony was held on Friday, November 21, 2014, at the Cincinnati Marriott North at Union Centre.

Dan Cahill, Ph.D., Vice President and Market Leader, was named to the Northern Kentucky Education Council Board of Directors. The council’s mission is to align education initiatives in Northern Kentucky. Dan and the other Board of Directors work with the council to serve as a catalyst for collaboration, change and progress towards regional education goals.

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community HORAN Celebrates 25 Years of Support for the Cincinnati Symphony Orchestra HORAN celebrated its 25th anniversary of partnering with the Cincinnati Symphony Orchestra in November 2014. The Cincinnati Symphony Orchestra is a dynamic ensemble of the world’s finest musicians. The organization has played a leading role in the cultural life of Greater Cincinnati and the Midwest since being founded in 1895. HORAN is proud to partner with our valued client, the Cincinnati Symphony Orchestra, and will continue to support the arts throughout the region. Pictured above (L-R): Terence L. Horan, CLU, ChFC, President & CEO of HORAN and Louis Langrée, Music Director at the Cincinnati Symphony Orchestra.

UNITED WAY OF GREATER CINCINNATI NAMES HORAN #11 ON LIST OF TREMENDOUS 25 HORAN ranks 11th on the United Way of Greater Cincinnati’s list of “Tremendous 25,” raising $1,172 per capita for the 2014 campaign. The list is comprised of the top 25 companies in the region that gave the highest per capita to the campaign. These companies are not considered large enough to be included on the “Top 25” list. The organizations on the “Tremendous 25” list are required to have at least 25 employees and 55% employee participation in the 2014 campaign. The HORAN campaign began on September 2, 2014, and concluded on October 8, 2014, with a Casino-themed fundraising finale. Employees paid entry fees to participate in competitions such as ping pong, office putt-putt and the second annual HORAN jeans day. There were also several raffles and items available for auction to raise money. The United Way of Greater Cincinnati raised $61 million during this year’s campaign.

HORAN Recognized at 25th Annual National Philanthropy Day in Dayton The Association of Fundraising Professionals (AFP) recognized HORAN at the 25th Annual National Philanthropy Day Awards & Luncheon as the 2014 Outstanding Small Corporation for HORAN’s philanthropic contributions to the Greater Dayton Region. The event took place on Tuesday, November 18, 2014, at Sinclair Community College Ponitz Center. One of HORAN’s core values is corporate social responsibility. HORAN employees are committed to improving the quality of life in the communities where they live and work. Over the past four years, HORAN has partnered with over 25 organizations in the Greater Dayton Region including Dayton Art Institute, Miami Valley Division of the American Heart Association, Boonshoft Museum of Discovery and Wright State University. Leaders at Wright State led the initiative to nominate HORAN for the award. AFP also honored other Outstanding Philanthropic Leaders in the Greater Dayton Region, which included Outstanding Philanthropists, Outstanding Volunteer Fundraiser, Outstanding Fundraiser Professional, Outstanding Foundation, Outstanding Large Corporation, Outstanding Youth in Philanthropy (ages 18–23) and Outstanding Youth in Philanthropy (ages 5–17). National Philanthropy Day is a special day set aside to recognize and pay tribute to the great philanthropic contributions organizations and individuals have made.

health. wealth. life.

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HORAN Donates Cherry Trees to Greater Dayton Region to Commemorate 65th Anniversary

T

housands of miles away from his homeland, watching on television as a tsunami and an earthquake devastated his country, Alex Hara, Senior Vice President at JPMorgan Chase Bank, was saddened by the events that took place in 2011. Hara was deeply touched and inspired by the swift acknowledgment from the American Military and the American people to give his homeland of Japan money, food, supplies and, most importantly, their time to the Japanese people. Hara created Operation 1,000 Cherry Trees to thank the American people for all their efforts from the aftermath of

the catastrophic events that took place in Japan. “I’ve made it my mission to purchase, plant and nurture 1,000 cherry trees here in the Dayton area — a reminder of the strong bond of friendship that still exists today between the United States and Japan,” said Hara. He partnered with former Ohio Governor Robert Taft and named him as the Honorary Chairperson for his project. William Howard Taft, former president of the United States (1909 to 1913), was the grandfather of the Honorable Robert Taft, who accepted a gift from Japan to the United States of more than 3,000 cherry

blossom trees in 1912 to celebrate the two nations’ growing friendship. These cherry trees still surround the Jefferson Memorial in Washington, DC. HORAN sponsored the Dayton Art Institute’s reception for the opening of the Deco-Japan exhibit on November 12, 2014. During the event, HORAN announced its donation of 20 cherry trees to Operation 1,000 Cherry Trees to plant on the grounds of the museum in honor of HORAN’s 65th anniversary. Terence L. Horan, CLU, ChFC, President & CEO, stated, “I would like to thank Alex for his vision and tireless commitment to this project and the Honorable Robert Taft, who is serving as Honorary Chairman of the Operation 1,000 Cherry Trees Project.” Attending the event was the Counsel General from Japan, Dr. Kazuyuki Katayama, who graciously accepted the invitation to be at the event and celebrate the strong bond of friendship between Japan and the United States. It was an honor for HORAN to help make an impact in not only the Dayton community but internationally as well. In his closing remarks, Horan said, “We are honored and proud to support the Operation 1,000 Cherry Trees Project, the Dayton Art Institute and the Greater Dayton community.” Hara’s determination and persistence prove that anyone can make a difference, even if you are thousands of miles away.

Pictured (L-R) Terence L. Horan, CLU, ChFC, President & CEO of HORAN; Alex Hara, Senior Vice President at JPMorgan Chase Bank; Former Ohio Governor Robert Taft; and Erik Freudenberg, CBC, Vice President, Market Leader at HORAN.

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clients

Client Spotlight: Wright State University

Serving the 21 Century Student st

Orville Wright once said, “We were lucky enough to grow up in an environment where there was always much encouragement to children to pursue intellectual interests; to investigate whatever aroused curiosity.” Wright State University has worked to foster the same type of learning environment its namesakes experienced. _________

The university’s core mission is to transform the lives of the students and the communities it serves. Wright State currently has more than 18,500 students ranging from the traditional, direct-fromhigh-school students, to transfer students, delayed entry students and international students (which has grown more than 50% during a one-year period of time). Wright State developed a 21st century model of education—providing students access to success.

Wright State University was created in 1964 as a joint branch campus in Dayton intended to serve both The Ohio State and Miami universities. Three years later, Wright State became its own university, and now stands as a comprehensive doctoral and research institution committed to access and relevance to the 21st century student.

“We excel at finding ways to support students, no matter what obstacles they face, more than other universities,” said Dr. Mark Polatajko, CPA, Vice President, Business and Finance/CFO at Wright State. “We believe that this 21st century model of post-secondary education matters most in helping students cross the finish line.”

Wright State currently has eight colleges as well as a School of Medicine and School of Professional Psychology.

The university has been named among the top five disability-friendly highereducation institutions in the United States.

1964 The Dayton Campus of Miami University and The Ohio State University opens with 3,203 students registered for classes and 55 faculty members.

1965 State Legislature passes SB #210 to create Wright State as an independent state university, contingent upon enrollment totals.

health. wealth. life.

1967 Wright State receives independent status when enrollment reaches 5,704.

1971 Wright State officially becomes the Raiders.

Not only does the university offer accessible housing, transportation, wheelchair sports and a tunnel system that connects over 20 buildings in the academic sector, but it also offers feebased services including personal care assistance and assistance with homework. “The tunnel system grew out of an accidental finding when they built the first couple of buildings in the 1960s,” said Polatajko. “It is a wonderful asset for serving students with disabilities—once they get into one building, they can access all other buildings.” Wright State also offers state-of-the-art services and support for military service members, veterans and spouses. Military Advanced Education (MAE) and Victory Media named Wright State as a Top Military Friendly School in 2014 for the fifth consecutive year. The university recently invested over $1 million into a Veteran and Military

1988 WrightSTEPP is launched to encourage minority and underrepresented high school students to pursue science, math and engineering.

1990 The Nutter Center opens with commencement.

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Center, which aligns academic advising, counseling and career path services for veterans to help these individuals be successful in their transition from active military members to engaged and productive members of the civilian workforce. In order to ensure students have access to success and to continue to support programs such as the university’s worldclass fine and performing arts and the Neuroscience Engineering Collaboration Building, Wright State developed the 21st century model of funding higher education. The model consists of two strategies: generating as much revenue as possible from alternate revenue streams in order to ensure affordability and optimizing resources to favorably impact the bottom line. Wright State’s model of funding higher education has led to many innovative initiatives including a $150 million fundraising campaign, “Rise. Shine.”, under the direction of President David Hopkins and with the leadership of honorary campaign co-chairs Oscar-winning actor Tom Hanks and Amanda Wright-Lane, the greatgrandniece of the Wright brothers.

WRIGHT STATE UNIVERSITY

and foremost emphasize collaboration—we want to be entrepreneurial and innovative because that is what we truly owe to our students and our community.”

HEADQUARTERS Dayton, Ohio

The university’s strategy for the next three years is “EMPOWER,” which will focus on its essential resources—one of them being human resources.

KEY PERSONNEL Dr. David Hopkins President

“We need to continue to develop the workforce knowledge to improve understanding and overall health,” said Shari Mickey-Boggs, Associate Vice President & Chief Human Resources Officer at Wright State. “Data, wellness and communication are all key elements— we need to communicate in a transparent manner so our workforce understands our goals, the costs involved, drivers for change, as well as the pursuit (or maintenance) of a healthy lifestyle.”

Dr. Mark Polatajko, CPA Vice President, Business and Finance/CFO Shari Mickey-Boggs Associate Vice President & Chief Human Resources Officer NUMBER OF EMPLOYEES 2,820

Wright State has provided benefits to continuing employees of 51% or greater for a long time. Currently, the university is addressing issues that have risen from the Affordable Care Act and affected Wright State’s contingent and non-continuing part-time workforce.

YEAR FOUNDED 1967

“HORAN has helped us move from transactional to strategic in terms of

40% of Wright State University students are the first in their families to earn a college degree. The “Rise.Shine.” campaign will support three priority areas—students, academic excellence and facilities. “Our values are our people, learning, partnerships, relationships, sustainability and stewardship,” said Polatajko. “We first

2000 First ArtsGala is held.

2005 Wright State receives largest private gift to date, $28.5 million, enabling Boonshoft School of Medicine to expand facilities, fund scholarships, accelerate research and develop programs in global health and geriatric medicine.

how we plan and manage our employee benefits as it relates to health care,” said Polatajko. “HORAN is an exceptional strategic partner; we couldn’t be happier with the level of service and commitment they have dedicated to us.”

2006 Joshi Research Center, with its state-of-theart R.C. Appenzeller Visualization Lab, opens.

Shari Mickey-Boggs Dr. Mark Polatajko, CPA, Vice President, Business Associate Vice President & Chief Human and Finance/CFO Resources Officer

2009 Named Military Friendly School by GI Jobs and Military Advanced Education; Best Business Schools by The Princeton Review; President’s Higher Education Community Service Honor Roll; and America’s Best Colleges by Forbes.

2013 Groundbreaking is held for Neuroscience Engineering Collaboration (NEC) Building, a new model for collaborative research and development.

2014 Rise. Shine. The Campaign for Wright State University is formally launched.

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health.wealth.life. Winter 2015  

HORAN Quarterly Magazine

health.wealth.life. Winter 2015  

HORAN Quarterly Magazine