Magazine - Summer • 2024
SPECIALTY SPECIALTY
DRUG COSTS DRUG COSTS
Prescriptions to treat chronic, complex conditions are rising—and so are the related costs.
IT TAKES A VILLAGE OF MENTORS
Ongoing Mentoring Services for Students Who Need it Most
AG TOURISM
A Growing Market With Unique Risks
LESSONS FROM THE HOG FARMBUY-SELL INSURANCE
EMPLOYEE SPOTLIGHT: An Interview With Shane Humphrey, Business Risk Advisor
Why Business Partners Should Consider It
What Is Foresight?
Foresight: The ability to see what is likely to happen in the future and to take appropriate action. At Hummel, we draw on our decades of experience, varied expertise, and relationships to help our clients exercise foresight to protect their financial futures. We hope you enjoy a small taste of that foresight through this quarterly publication.
Prescriptions to treat chronic, complex conditions are rising—and so are the related costs.
By Andy Yost, Benefits Risk Advisor
By Vaughn Troyer, CIC, President of Hummel
By Chris Ramsburg, CPCU, Principal & Commercial Risk Advisor
An interview with Shane Humphrey
SPECIALTY DRUG COSTS AG TOURISM
A Growing Market With Unique Risks
By Olivia Lang, Agricultural Risk Advisor, Hummel Group
By Jacob McConnell, CFP, Hummel Financial Advisor
How OHuddle is changing lives one child at a time
By Steven Smith, O&M Manager
By Jacob McConnell, CFP, Hummel Financial Advisor
Shane Humphrey Lessons From the Hog Farm
Vaughn Troyer Leading With Generosity
Olivia Lang AG Tourism
Jacob McConnell
SPECIALTY SPECIALTY DRUG COSTS
DRUG COSTS
Prescriptions to treat chronic, complex conditions are rising — and so are the related costs.
By: Andy Yost, Benefits Risk Advisor
Innovations in treating chronic and complex conditions have eased people’s pain and improved their quality of life, but as with anything involving health care, there are significant costs involved, and they keep rising. These innovations are known as specialty drugs. Capable of treating rare or complex conditions, such as cancer, Alzheimer’s disease, multiple sclerosis, and rheumatoid arthritis, one specialty medication can cost an individual—and subsequently their employer—tens of thousands of dollars in one year.
It’s rising faster than inflation: The annual average cost for one specialty medication was $84,442 in 2021, according to an AARP report.
In addition to the rise in costs, the number of specialty drugs has increased astronomically over the past several years. I think we can all agree this is a great development in terms of medical breakthroughs and worthy of celebration anytime a muchneeded medication comes to market that can vastly improve people’s lives.
To get to that point, however, specialty drugs have to go through a painstaking research and development process, with multiphase clinical trials, and approval by the U.S. Food and Drug Administration. This heavy cost involved in getting a specialty drug to market is passed down to consumers (and the employers who subsidize their health care costs), and the cost can be—to put it plainly—outrageous at times. It’s rising faster than inflation: the annual average cost for one specialty medication was $84,442 in 2021, according to an AARP report.
While the rise of prescription drug costs is widely known, employers generally do not realize the full extent of it when considering specialty drugs, why they are so expensive, and how some of the cost burden can be managed.
“This high cost of getting a specialty drug to market is passed down to consumers.”
WHY ARE THE COSTS SO HIGH?
As it is, the rising cost of insuring the workforce is a constant concern, with a projected rise of 6.5% this year. Considering the $14,600-per-employee average that companies already put aside for employee benefits, it’s worth understanding how the increase in specialty drug prescriptions can affect your company.
The rising cost of insuring the workforce is a constant concern, with a projected rise of 6.5% this year.
For one thing, they are being prescribed more. Specialty drugs can make up half or more of an employer’s total drug cost. Employees who need them are having to pay high copays in addition to the premiums they pay for their health care coverage. For specialty prescriptions, these are not one-time costs but drugs people usually start taking over the long term, often for the duration of their life. In fact, these types of drugs are often life-changing for someone suffering from a condition that is complex to treat. This is where the additional and sometimes unrealized costs come in: thinking about specialty drug costs to your company, also consider the on-going treatments around such medications; employees who use them will need to return to the doctor on a regular basis to ensure they are still being prescribed the proper dosage and may need additional drugs to help offset any side effects.
Such drugs made up 1 out of every 15 private insurance dollars spent on children’s health care in 2018, according to a Michigan Medicine report.
At the same time, you will want to consider the benefits: employees who receive proper treatment for their ailments can stay on the job longer and be more productive. Gene therapies are a good example. They can minimize a cancer’s growth and can be a preferred method for treating certain cancers over chemotherapy. Recovery can be much quicker. But, of course, with such benefits come high price tags: gene therapies have been known to cost millions of dollars. Also consider that for rare diseases (those that affect fewer than 200,000) or orphan diseases, the cost of treating them can be disproportionately high; such drugs made up 1 out of every 15 private insurance dollars spent on children’s health care in 2018, according to a Michigan Medicine report.
HOW TO CONTAIN THE COST?
While we can value the innovation and progress being made in medicine, there is general agreement that the costs we are all paying have become challenging to manage. The annual cost of a specialty drug prescription for one year can be equivalent to a person’s salary and is astronomically more expensive than both generic and brand-name drugs.
While you cannot control the costs involved in the development and prescribing of such medications, you can minimize the risk of paying more than necessary. To help manage the cost, you could take the following steps:
BE INFORMED: When breaking down the reasons for the rise in health care costs, also understand the extent of costs going toward specialty drugs; it’s not just the cost employees see when they are at the pharmacy counter but the therapies they receive from their doctors as well.
EDUCATE YOUR WORKFORCE: Are employees fully aware of their benefits and the many details involved? Are they encouraged to stick with their medication schedules as outlined by their doctor to ensure their ongoing health? Are they informed about how they can manage their specialty drug costs, with a complete understanding of their out-ofpocket costs?
Andy Yost
A biosimilar, the term for a drug that is almost the same as its brand-name equivalent yet manufactured by another company and often at a much lower cost.
With access to information that they may not easily find on their own, employees can be made aware of options such as manufacturer assistance programs that cover the drug costs of some users when they are in between jobs or on Medicare, or their private insurance does not cover their medication. They could also be made aware of the possibility of being prescribed a biosimilar, the term for a drug that is almost the same as its brand-name equivalent yet manufactured by another company and often at a much lower cost. This is an option they would need to explore with their doctor.
REEVALUATE YOUR CURRENT PLAN: The health care benefits landscape changes often and so does a company’s needs. As your company evolves, whether it’s expanding or retracting, you will want to evaluate your benefits program and explore whether any changes are in order. An independent insurance brokerage that knows your business and understands its current needs can help you stay on top of the latest pricing trends and help you decide whether you have the best plan for your company’s current situation.
INCORPORATE POTENTIAL COST SAVINGS: With the help of your broker, you may determine that your current plan is still the best fit. What could change? Talk to your broker about cost savings that could be realized, depending on how your health plan is funded and how prescription drugs are accessed by your workforce.
None of us can control the costs of health carec, but being aware of the options available and the current landscape can help your company manage its overall health care costs.
Resources:
https://www.wsj.com/health/healthcare/health-insurance-cost-increase-5b35ead7
https://www.prnewswire.com/news-releases/employers-lack-awareness-and-understanding-of-specialty-drugs-and-costs-130770188.html
https://www.forbes.com./sites/brucejapsen/2023/08/17/cvs-retains-blue-plans-specialty-pharmacy-business-and-thats-where-the-money-and-costs-are/?sh=2129dec8193f
https://www.michiganmedicine.org/health-lab/big-costs-small-patients-rare-diseases-study-finds
Leading With Generosity
How to cultivate it in your own organization
By: Vaughn Troyer, CIC, President of Hummel
In today’s competitive and fast-paced world, business is often seen as a selfish pursuit of profit and success. Many people might assume that to be successful in business, one has to be ruthless, greedy, and exploitative.
In contrast to these qualities, I have seen businesses thrive by embracing the characteristic of generosity. In this article, I will share some of the benefits of business generosity and how you can cultivate it in your own organization.
I am fortunate to live and work in Holmes County, Ohio, and be surrounded by many examples of generosity. Every weekend, one can find a fundraiser meal or an auction that is being funded by donations and manned by volunteers with the intent of helping a non-profit or somebody in need. I have observed many benefits of giving more, both for ourselves and for others.
• Living with an open hand increases our happiness. Studies have shown that people who are generous are happier, healthier, and more satisfied with their lives than those who live tight-fisted. Giving activates the reward centers in our brains and releases hormones that make us feel good. Giving also reduces stress, anxiety, and depression, which can negatively affect our health and productivity.
• Giving more improves our relationships. When we are generous, we build trust, loyalty, and goodwill with our customers, employees, partners, and suppliers. We also attract more people who share our values and vision. Giving more creates a positive reputation and a strong network that can support us in times of need.
We help solve problems, meet needs, and create opportunities.
• Giving more enhances our impact. When we are generous, we make a difference in the lives of others and in the world. We help solve problems, meet needs, and create opportunities. We also inspire others to be generous and multiply our influence. Giving more aligns our business with God’s purpose and mission.
• Giving is a spiritual discipline that detaches us from the attitude of “it’s mine” and instead reinforces the reality that we are simply stewards of that entrusted to us for a short time.
Business generosity is not a one-time event but a lifestyle. It is not something we do out of obligation but out of gratitude. It is not something we do to get something back but to give something forward. Here are some practical ways to give more in our business:
Find ways to give of these work-related resources.
• Give more of our time. We can volunteer our skills, expertise, and experience to help others who need them. We can mentor, coach, or train someone who wants to learn from us. We can serve in our community, church, or a nonprofit organization that aligns with our values. Create a structure that allows employees to use work time to serve local organizations.
• Give more of our talent. We can use our creativity, innovation, and excellence to create products or services that benefit others. We can also use our platform, influence, and network to promote causes that matter to us and to God. We can share our stories, insights, and lessons learned to inspire and educate others. Find ways to give of these work-related resources.
We are not the owners of our resources, but the stewards.
• Give more of our treasure. We can donate a portion of our profits, revenue, or assets to support organizations that are doing good work. We can also invest in social enterprises, microfinance, or impact funds that generate both financial and social returns. We can also offer discounts, scholarships, or grants to customers or employees who need them. Create ways that staff can both give to such projects and help decide who receives the funds.
One of my foundational principles of generosity is the recognition that everything we have belongs to God. Psalm 24:1 says, “The earth is the Lord’s, and everything in it, the world, and all who live in it.” This means that we are not the owners of our resources, but the stewards. God has entrusted us with what we have, and he expects us to use it wisely and generously.
When we acknowledge that God is the source of our wealth, we are more likely to share it with others and honor him with our giving.
- Vaughn Troyer, President of Hummel
Vaughn Troyer
Book Review
Elon Musk
BY: Walter Isaacson
BY: Chris Ramsburg, CPCU, Principal & Commercial Risk Advisor
Over the years, there have been at least a dozen or more biographies written about Elon Musk. The most recent is by author Walter Isaacson. He has written well-regarded biographies on Benjamin Franklin, Albert Eistein, Steve Jobs, and Henry Kissinger. In his latest biography on Elon Musk, he had 100% access since 2021 to shadow him and interview anyone with business or personal ties to Musk.
“To anyone I’ve offended, I just want to say, I reinvented electric cars and I’m sending people to Mars in a rocket ship. Did you think I was also going to be a chill, normal dude?”
- Elon Musk, Saturday Night Live, May 8, 2021
A quirkiness of mine is that I like to categorize people by considering whether I would want to drive to Florida with them. Would I like to drive to Florida with Elon Musk? The answer is NO, but he is one fascinating individual. Musk is a businessman and investor known for his key roles in space company SpaceX and automotive company Tesla. Other involvements include ownership of X Corp., formally Twitter, along with The Boring Company, xAI, Neuralink, and Open AI.
Elon Musk has something called “The Algorithm”. It only pertains to Musk’s business life and not his personal life. While his personal life has been full of triumphs and turmoil, Musk has lived it out in his “demon mode”. You will have to read his biography to discover more about his “demon mode”. It is as interesting as “The Algorithm”.
Isaacson summarizes his research on Musk with this: “Sometimes great innovators are risk-seeking manchildren who resist potty training. They can be reckless, cringeworthy, sometimes even toxic. They can also be crazy. Crazy enough to think they can change the world”.
After reading the book, Elon Musk does seem a little crazy. His experiences help us understand how a little craziness keeps us creative in today’s business world.
Chris Ramsburg
Lessons from the Hog Farm
An interview with Shane Humphrey
Shane Humphrey, Business Risk Advisor at Hummel Group, brings his experience from farm life, the classroom, and the basketball court to the agribusiness industry.
Tell us what you do at Hummel and what you did before joining us last year.
I help clients protect their assets, their businesses, and their employees. Prior to Hummel Group, I was a teacher at Lake Center Christian School in Hartville, a girls varsity basketball coach, and a pastor. I also worked for a custom cabinet shop, where I learned how to design, build, and sell cabinents. I was helping to run the business by the end of my time there.
What brought you to this area?
I went to Malone College to play basketball. I didn’t pick a major until the end of my freshman year, when I decided to join the school’s Bible and theology program. I was able to bring this knowledge to my first job as a high school Bible teacher.
What was growing up like for you?
I grew up on a hog farm in Ashland County for the first 10 years of my life. My parents had a plot of land, about 40 acres. My grandparents were right beside us, and my aunt had nearby land too. We had a barn, shops, fields, animals, woods, and a river going through it. I thought that’s how everybody grew up.
Eventually, my family transitioned to taking on full-time jobs but kept the farm going as a side thing. My father still raises grass-fed Red Angus as a hobby.
What principles did you take away from living on a hog farm?
The first is the work ethic. Nothing is easy on a farm, especially a smaller family farm. I saw everybody working hard, sometimes around the clock. The work never stops, especially when it’s harvesting or planting time.
Then there’s the responsibility, taking ownership of something and being self-sufficient. Because of the small margins on a small family farm, you can’t really hire out. It’s like that old saying of being a jack of all trades/master of none. It creates that desire within you to be proficient at a number of things. If something’s broken, or if there’s a problem, it’s not going to take care of itself. You have to figure it out or know who to ask for help. Take ownership and pride to get the job done.
The third lesson I really needed to learn—because it did not come natural to me—is when you do something, do it right the first time. When I was young, if I was doing something that was not fun or interesting to me, I just wanted to blow through it so I could go shoot hoops. My dad and grandpa would have me do a job again if I didn’t do it right the first time. They gave me an appreciation of taking pride in your work. Don’t waste your time or other people’s time, but be a good steward of whatever task you’ve been given, whatever resources you’ve been given, and do your best.
Shane Humphrey
What is life like for you outside of Hummel?
Life outside of Hummel is my family. That life is very full. I have a 14-year-old son and two daughters, who are 12 and 8. Between church and sports and friends, and kids activities, it is very busy, but I wouldn’t change it for anything. During the summer, we incorporate the kids into our you-pick flower farm, Home Again Flowers, which my wife and I started seven years ago. It’s a hobby farm with about half an acre of flowers in Hartville. When we do have any free time, my wife and I go for walks. That’s our time to connect and work on our relationship.
How did you end up at Hummel?
When I hit a crossroads at the cabinet shop, I knew I needed to make a career change, but I did not initially see how my experience could relate to insurance. This changed when Hummel Principal Matthew Yost presented the concept of being a trusted advisor to business owners.
I’ll make a comparison with why I liked coaching basketball. I Ioved the strategy involved and being able to, as an assistant coach, sit back and take it all in. Then during halftime, the coach would ask what I observed—because he’s in the game and couldn’t see it all. I would share my input, and that input could have a huge effect on the outcome of the game.
Similar to teachers who have to break down complex terms in ways their students can understand, advisors need to take complex concepts and break them down into layman terms. We help clients become empowered by making the things they need to know less complicated. That’s what I enjoyed about being a teacher and coach and what I enjoy in this role.
Do you have an example?
I recently alerted a company that their property was underinsured; it was only insured at actual cost value. I let them know that if they had a major loss from, say, a fire, the actual cash value would be the replacement cost minus depreciation, and they would not be made whole. Instead, they would only get a percentage of what they would need to rebuild that plant and would have to self-fund the rest. This was a legacy issue, as the insurance had been set up that way before the owner inherited the property from her father. They appreciated me explaining the exposure.
More specific to the agribusiness space is how we talk about insuring grain bins. There have only been a handful of insurance companies that have entertained this in recent years. We are putting in a lot of extra work on the front end with the client to create a comprehensive statement of values that will give the underwriter the information they need to come back with competitive terms. They understand what’s being covered, from the age and capacity to construction occupancy protection exposure. They have more information to take that risk. When you’re able to give the underwriter all the information they want, they can come in and more aggressively, competitively rate their policy, which saves the insured on premium. And we’ve been able to also increase coverage.
Are there other benefits for clients?
Peace of mind. They realize they will be made whole in the case of a significant loss. They realize this based on the different hypotheticals we’ve presented. While they may have to pay a higher premium than they have been in the case of loss, they will actually be insured properly. It removes a lot of the question marks. Any of the confusion and uncertainty that might have existed are gone.
We are transparent and gain their trust. Understanding more clearly how they are insured gives them more confidence in planning for the future.
Shane Humphrey is a business risk advisor at Hummel, specializing in agriculture businesses.
He can be reached at 800-860-1060.
Shane Humphrey
Rohrer
AG Tourism
A Growing Market With Unique Risks
By: Olivia Lang, Agricultural Risk Advisor, Hummel Group
If you have ever visited a local farm to take pictures in the pumpkin patch, navigate the corn maze, or have your children admire newborn animals, you’ve been an “agritourist.” AG tourism is a growing market, projected to increase by 13.4 percent between 2021 and 2027 (according to Allied Market Research), bolstered by the safety of the outdoors during the pandemic. It’s a way for farms and other agricultural businesses to expand their income potential and build relationships with their community while entertaining and educating visitors.
I first fell in love with AG tourism while working at Moreland Fruit Farm in Wooster when I was in high school. The farm’s tourism options included “pick-your-own” crops— apples, strawberries, blueberries, raspberries, you name it! I enjoyed seeing the smiles on people’s faces as they harvested fresh fruit and got a glimpse of farm life. I now have a “pick-your-own” strawberry patch on my parents’ farm, where we invite anyone to visit during certain times of the day to experience the farm and ask any questions they may have about agriculture.
THE BENEFITS OF AG TOURISM
Trending up since 2002, the AG tourism industry really jumped when the 2020 pandemic took hold. While movie theaters and malls had to close their doors, farms could stay open, as they were able to provide safe and healthy activities for individuals eager for any form of entertainment, particularly outside. Agribusinesses have realized the benefits of ag tourism:
• RELATIONSHIP BUILDING: AG tourism creates a relationship between the farm and the community by building trust and loyalty between the farm and customers.
• DIRECT SELLING: AG tourism cuts out the middleman when it comes to selling and can save a farm money by cutting down on transportation, marketing, and labor expenses. It also gives growers more control over pricing, as they can set the price rather than limiting themselves to whatever the market or a store will give them.
• INCOME DIVERSITY: A farm can diversify its income stream by adding events or activities for a small cost. For example, many pumpkin patches will have a general admission fee. In a world where commodity inputs are on the rise, this fee can help cover some growing expenses.
Plus, AG tourism provides many indirect benefits. Farms with AG tourism help to draw tourists to rural areas. This helps the rural community as a whole, as other businesses may benefit from the visitors as well.
THE RISKS INVOLVED AND HOW TO ADDRESS THEM
While encouraging visitors and providing memorable experiences to community members can be beneficial to farms, they are taking on a unique set of risks. Liability skyrockets when you assume the risk of strangers stepping foot on the property. The nature of the beast is that farms are bound to have equipment, animals, and other obstacles that increase the potential for problems.
To properly protect themselves, farm owners need to be aware of the extent of their insurance policies. Hummel helps agribusiness owners in this way through risk advising. We can start by reviewing your policy and making sure you have accurate and sufficient coverage. We can also go a step further with a risk assessment that explores the property and activities of the business and makes suggestions for lowering the risks of accidents on the site.
To learn more about how your farm or other agricultural business can benefit from a properly structured risk management program, reach out to me or one of the other AG insurance specialists here at Hummel!
Contact Olivia to learn more about how working with an agricultural risk advisor can help improve your AG business.
She can be reached at 800-860-1060
Olivia Lang
2024
SUMMER By: Jacob McConnell, CFP ®
FINANCIAL MARKET UPDATE
When will interest rates start to come down? How will overseas conflicts affect US financial markets? What will be the impact of the upcoming presidential election on my retirement accounts?
These are just a few of the questions that US investors are asking as we head into the summer months. While we will attempt to comment on each of these items, recognize that nobody truly knows these answers, and anybody who claims to know them might not be the first person you want to talk with about your finances. That being said, all any of us can do is take the information we have and make projections, not guarantees, about what the future may bring.
Although inflation numbers have dropped significantly from their 2022 levels, the Fed does not seem convinced that it has fully defeated inflation.
Let’s start with interest rates. As a result of inflation metrics not seen for decades, the Federal Reserve spent the majority of both 2022 and 2023 raising rates. The thought was that by increasing the cost associated with borrowing money, the economy would slow down and, as a result, so would price increases. Rising interest rates are typically bad news for the stock market, and many investors felt this in their 2022 returns. 2024 has been a story of the Federal Reserve holding interest rates steady. Although inflation numbers have dropped significantly from their 2022 levels, the Fed does not seem convinced that it has fully defeated inflation. The general consensus seems to be that the next move of interest rates will certainly be downward, but it is possible that this will not occur until the latter part of 2024. The anticipation of downward rate movements should make both stock and bond investors happy, as there is typically a correlation between decreasing interest rates and rising returns in stocks and bonds.
We are treading in largely uncharted waters in trying to predict what the Russia-Ukraine and Israel-Hamas wars will mean for the stock market. The great speed at which news headlines can circulate amongst the masses and the prompt financial responses they incite from investors is like never before in our history.
Given the looming threat of US involvement in these wars, many individuals have a strong sense of fear and want to keep their funds safe, within arm’s length, and free from potential risk. As has always been the case when investing in the stock market, investors must realize that this is a risk-reward game. The potential reward of the stock market can only be earned by being able to tolerate the risk of a possible dramatic decline. We can draw comfort knowing that the stock market has been through wars before, and a diversified portfolio seems to be the best financial brace against an unknown future. Most importantly, join in praying for peace in our world and an end to violence.
On to the important topic of this year’s election. While the colors red and blue will be on voters’ minds this November, historical performance of the S&P 500 suggests that another color should be on investors’ minds this election year… green!
That’s right, despite the uncertainties that election years bring, studies show that in the 24 times that a US presidential election was held and the performance of the US stock market was tracked, stock market performance ended the year positive 75% of the time. See the table for proof.
Jacob McConnell
No matter your thought on interest rates, international wars, or US politics, the stock market will continue to go both up and down. Remember that investment account balances do not define your life, the market has historically been up more often than down, and a long-term view is the best perspective to take when investing. If you have a solid financial plan in place, stick to it! If you do not, there is no better time to start than now.
S&P 500 Index price returns in election years and US presidential election results
Index
Election Year 192837.88%Hoover 1932-14.78%Roosevelt 193627.92%Roosevelt 1940-15.09%Roosevelt 194413.80%Roosevelt 1948-0.65%Truman 195211.78%Eisenhower 19562.62%Eisenhower 1960-2.97%Kennedy 196412.97%Johnson 19687.66%Nixon 197215.63%Nixon 197619.15%Carter 198025.77%Reagan 19841.40%Reagan 198812.40%Bush 19924.46%Clinton 199620.26%Clinton 2000-10.14%W.Bush 20048.99%W.Bush 2008-38.49%Obama 201213.41%Obama 20169.54%Trump 202016.26%Biden
The creation of a financial plan and the discipline to remain steadfast in it will undoubtedly produce the best long-term outcome for your financial future. Resources: https://www.macrotrends.net/2526/sp-500-historical-annual-returns
US Presidential Election Results
S&P500IndexAverage PriceReturn Election Year Following Year AllElectionYears7.49%7.63%
AfterRepublican 8.21%4.98% DemocratElected AfterDemocrat 10.37%7.77%
RepublicanElected AfterDemocrat 8.92%-4.26%
DemocratElected AfterRepublican -2.73%18.85%
Observations
Inthe24electionyearssince1928:
•18ofthe24years(75%)provided positivereturns
•Averageelectionyearreturnwas7.49%
•Inthecalendaryearaftertheelection, averagereturnwas7.63%
•Performancecanvarywhenthereisa changeinparty s7
Source:Bloomberg.AnnualpercentagechangeoftheS&P 500Indexfrom1927to2021.Performanceiscalculatedasthe percentagechangeinpricefromthelasttradingdayofeach yearfromthelasttradingdayofthepreviousyear.
NON-PROFIT
It
Takes
a Village of Mentors
It Takes a Village of Mentors
How the volunteer mentors of OHuddle are transforming the lives of at-risk students in Wayne County schools.
This young gentleman smashed the competition during a cup-stacking challenge at Rittman Elementary School!
Sara Reith did not set out to create a nonprofit when she looked into addressing the unmet needs of at-risk students while working as a psychologist for the Wooster City Schools. Ten years later, however, she’s leading OHuddle, a nonprofit organization established in 2013 that provides mentoring services to impoverished students and students who have experienced trauma.
“We were not supposed to be as large as we are, but we’re actually now the largest one-toone mentor organization in a single county in the state,” Reith says.
After getting the chance to talk to her about this lifechanging organization, it’s clear that Reith, OHuddle’s full-time executive director, has no regrets about OHuddle’s impact so far as it continues to help students who were likely to fall through the cracks otherwise.
Making a Difference With One-toOne Mentoring
In her previous job, Reith wanted to address a gap in public education for those students who needed additional services to succeed in school but did not qualify for extra support. They did not have a disability but were struggling. A big believer in research and data, she looked into what would help to “activate learning in students who are living in poverty and who had experienced trauma.” The top research-based intervention turned out to be mentorship.
An “aha” moment came when Reith observed three boys who rarely, if ever, smiled or showed their personality at school yet opened up to a youth pastor mentor who “held space” for them. “I started to see their potential unfurl in a way that all of the other things that I was doing— behavioral interventions and all of the other data that I was collecting—weren’t working,” Reith says.
This observation led to a principal’s openness to explore the impact that a mentorship program could have on the school. He proposed connecting the 17 children responsible for 90% of the disciplinary activities at the school with mentors for a year.
Since its inception, by focusing on the benefits of providing one-to-one mentoring on a consistent basis, OHuddle has served over 1,000 students, all in Wayne County. The mentorships are made possible by volunteers willing to donate at least one year of their time (usually longer), site coordinators, more than 100 community partners, and very willing school administrators who also see the benefits of the program in the form of lower absentee rates and fewer disciplinary actions.
What started as an experiment keeps growing. “It was not supposed to be this big thing, but it just kept working,” Reith says.
Consider the statistics gathered for OHuddle’s 2023 annual report:
“After the end of the year, we saw that every single one of those 17 kids improved academically and behaviorally and actually came to school more,” Reith says.
659 46% 388 75%
mentors are currently participating of students with an OHuddle mentor improve their school attendance over time
students received one-to-one mentoring last year of students show improvement of academic, behavior, and attendance after 10 weeks of mentorship
Learning to tie your shoelaces is a right of passage. This mentor showed all the patience with her mentee.
How OHuddle Works
From Hummel’s conversation with Reith, we took note that the success of the program is largely due to how it’s structured. The mentorship starts early on, usually around fifth grade, and progresses as long as the child is still in school up until graduation. By starting early, there is no stigma involved, and the program is “normalized,” Reith says, because the school has multiple participants in the program.
Volunteers undergo orientation and are expected to commit to at least one school year and 89% of mentors return for a second, third, or fourth year of service right now, according to Reith. An OHuddle site coordinator helps to properly match the mentor with the student and prepare them with 40 development assets, a research-based set of principles for helping students grow.
All meetups take place in public and follow the “rule of three” for safety reasons (i.e., the site coordinator is also in attendance). Mentors usually visit the same time every week during a non-academic time slot during school hours. Otherwise, Reith says, family obligations or transportation issues would make scheduling difficult and prevent the program from providing consistent mentoring.
“We
use their spark to drive what they want to do,” Reith says about the adaptable program.
Why OHuddle Works
Reith shared with us that under Maslow’s Hierarchy of Needs, humans need the basics (food, clothing, and shelter) before they can form relationships, and they need to have
relationships before they can achieve higher-level thinking. Unfortunately, some students are not able to acquire the basics, and they may feel shame or shyness about asking for food or new shoes. A struggling middle schooler, for example, may claim to wear a particular sweatshirt every day because it’s a favorite and not because it’s the only one they own.
“When you’re in relationship with kids and you really drill down into what their experience is and they start to trust you, then you start to get to what the basic needs are through that relationship,” Reith says.
The session usually centers around a developmental asset and an optional project. For instance, the mentor and student may choose a book to read together, or the student may opt to play Uno or basketball. Field trips are another option, as mentors and mentees have gone on fish trips, visited arcades, and more. “We use their spark to drive what they want to do,” Reith says about the adaptable program.
OHuddle receives 28% of its funding from schools, 22% from corporate donors, 23% from grants, and the rest from fundraisers, churches, individual donors, and foundations. It also has an incubator partnership to help school districts outside Wayne County learn how to launch and sustain their own mentorship programs. With 135 children on its wait list, there’s high demand; OHuddle mostly needs mentors, who are challenging to recruit in rural areas.
“[Volunteering with OHuddle is] not about fixing broken kids,” Reith says. “It’s not about figuring out what’s wrong and how can I come in and be the savior of it. It is holding space in an unconditional regard kind of way.”
Sara Reith, Founder & CEO of OHuddle
Ten years of mentorship between Jacob and Justin Haislip: Justin encouraged Jacob to beat substance use by joining CrossFit. Jacob now competes nationally in bodybuilder competitions.
5 COMPONENTS OF AN EFFECTIVE DISTRACTED DRIVING POLICY
An average of nine people are killed every day in crashes that involve distracted driving, according to the US Centers for Disease Control and Prevention. By implementing a distracted driving policy, employers can help protect their employees, clients, and the public from accidents while minimizing legal and financial risks. As an employer, you should consider the following components in order to implement effective distracted driving policies: 1 2 3 4 5
WRITTEN POLICY: Develop a written policy that provides employees with a clear understanding of what is being asked of them. It should also provide the company’s stance on distracted driving and what happens if the policy is not followed. This document should continually be updated to reflect any changes.
BEST PRACTICES: Provide employees with a list of actions that are considered distracted driving and suggested practices to reduce the risk of distracted driving.
POLICY COMMUNICATION: It’s vital to communicate to employees that a policy exists and must be followed. Explain the requirements of the policy. Discuss the policy in stand-up meetings and ensure that employees can ask questions about the policy.
ENFORCEMENT: Monitor employee participation and intervene when necessary. Corrective actions must be administered if an employee is not following the policy. A policy is meaningless if it is not being followed.
LEADERSHIP INVOLVEMENT: All employees need to buy into the policy requirements. Management should lead by example. Top-down involvement is what drives compliance with the policy.
APPROACHING
AGE 65? IT’S TIME TO THINK ABOUT MEDICARE!
By: Steven Smith, O&M Manager
What is Medicare? Medicare is a government health insurance program for those 65 and older, as well as certain younger individuals with disabilities. This shouldn’t be confused with Medicaid, which is a program based on income and resources rather than age.
The foundational Medicare program, referred to as Original Medicare, is administered by the government and serves as the default option for beneficiaries. However, it’s important to note that Original Medicare does not include coverage for prescription drugs, dental, hearing, or vision care. Consequently, many individuals opt for Medicare Advantage plans, also known as Medicare Part C.
Steven Smith
Original Medicare does not include coverage for prescription drugs, dental, hearing, or vision care, which is why many opt for Medicare Advantage plans.
MEDICARE ADVANTAGE PLANS are provided by private health insurance companies and serve as an alternative to Original Medicare. These plans may offer additional benefits beyond what Original Medicare provides.
For those who choose to remain with Original Medicare, there are avenues for expanding coverage:
MEDICARE SUPPLEMENTS, also referred to as Medigap, are standardized options offered to help offset out-of-pocket costs and bridge potential coverage gaps.
PRESCRIPTION DRUG PLANS (PDPS) cover prescription medication costs and can be seamlessly added to Original Medicare. They are sometimes called Medicare Part D (though Part D can also refer to drug coverage included in a Medicare Advantage plan).
DENTAL, VISION, AND HEARING (DVH) plans are designed to offer coverage for these non-Medicarecovered health areas, providing targeted support for beneficiaries’ specific health care needs.
You can expand your coverage under Original Medicare by purchasing separate plans offered by private insurance companies.
Now that you know the parts of Medicare, you need to know when to sign up! For most people, the first opportunity to sign up for Medicare is the 7-month window including and surrounding the month of your 65th birthday. This is called your Initial Enrollment Period (IEP).
Many people who have employer-sponsored health care can delay enrollment in Medicare without penalty. If you are planning on delaying enrollment and not signing up during your IEP, you should still speak to a trusted agent about your plans before or near the beginning of your IEP. Some plans require that you enroll in Medicare right away for claims to be paid correctly, or even if you can delay enrollment, you may find that Medicare is a more affordable option.
BUY-SELL Insurance
Why Business Partners Should Consider It
By Jacob McConnel, Hummel FS Account Executive
The beauty of the competitive market is that inefficiency on the part of one company may present an opportunity for a rival company to exploit. A company that fails to be forward-thinking about potential threats it is facing can very quickly find itself losing market share to other companies more diligent. Due to the intensity of this competitive reality, the business owner is constantly evaluating and reimagining processes of production to give their company the best chance at success.
At its simplest, a buy-sell agreement is a contract that specifies what happens to a partner’s business shares in the event of the partner’s death or decision to leave the company.
While this shifting and tweaking of business processes is a more current endeavor, it is important for a business owner to have a strategy for the future, specifically in the area of business continuity. The approach many business owners turn to is a buy-sell agreement. At its simplest, a buy-sell agreement is a contract that specifies what happens to a partner’s business shares in the event of the partner’s death or decision to leave the company. This kind of agreement often involves life insurance policies to provide the liquidity needed for the purchase of these shares when they become available.
There are two main types of buy-sell structures that utilize life insurance. The first is called a cross-purchase agreement. Under this arrangement, each partner in the business owns and is the beneficiary of a life insurance policy on the lives of the other partners. Were any of the partners to die, each of the surviving partners would receive a death benefit enabling them to purchase the deceased partner’s ownership shares. The result is that the deceased’s shares are redistributed among the remaining partners upon his passing, and the life insurance death benefit provides the tax-free liquidity for the partners to make these purchases.
The second type of buy-sell agreement involving life insurance is called an entity-purchase agreement. With this structure, the business owns a life insurance policy on each of the partners and is the beneficiary of each policy. If one of the partners were to pass away, the business itself would receive a death benefit that it could then use to purchase the decedent’s ownership shares from their estate. Note that even though the business is paying the premiums on the policies, these premiums are typically not tax deductible for the business, so the death benefit can still be received income tax-free.
Regardless of the buy-sell structure that a business has in place, the end result is that it can continue operating as smoothly as possible even in the face of a significant event like the death of one of the partners. Additionally, the deceased partner’s surviving family members will receive money that likely meets a greater immediate need than inheriting ownership shares of a business that they may not know much about.
Though a business owner may find it easy to pay greater attention to more urgent business needs, they cannot overlook the importance of having a proper buy-sell agreement in place.
Though a business owner may find it easy to pay greater attention to more urgent business needs, they cannot overlook the importance of having a proper buy-sell agreement in place. When the unthinkable happens, the existence of a buy-sell agreement allows for the transition process to be smooth for the individuals involved and ultimately promotes the long-term health and success of the business.
Jacob McConnell
Jacob McConnell
