Hummel Foresight Issue 04 - 2024

Presented by:

Quarterly Magazine - Winter • 2024

NAVIGATING MEDICARE

CURIOUS LEADERSHIP

Open Enrollment

Becoming a Curious Leader

BOOK REVIEW

HOME INSURANCE SPOTLIGHT

Don’t Burn Out Burn Bright!

COMPLIANCE BULLETIN

Changes Affecting Roof Coverage

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FINANCIAL MARKET UPDATE

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THANKFUL FOR YOU!

What Is Foresight?

Quarterly Magazine - WINTER • 2024

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.

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COST SAVING STRATEGIES FOR EMPLOYEE HEALTH PLANS

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BECOMING A CURIOUS LEADER

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FINANCIAL MARKET UPDATE: Q4 2024

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NAVIGATING BOTH SIDES OF THE HEALTHCARE MAZE

By Andy Yost, Principal Benefits Risk Advisor

By Vaughn Troyer, CIC ®, President of Hummel

Andy Yost Cost Saving Strategies for Employee Health Plans

10

Peyton Gentry

Stay The Course – Investing Through the Noise

By Peyton Gentry, AIF, Financial Advisor

An interview with Andy Yost

BOOK REVIEW Don’t Burn Out, Burn Bright

By Misty Fraelich-Clark, SHRM-CP, PMQ, Human Resources Manager

Stay The Course - Investing Through the Noise

Misty Fraelich-Clark Book Review: Burn Out, Burn Bright

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IMPACTFUL CHANGES AFFECTING ROOF COVERAGE

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NAVIGATING MEDICARE OPEN ENROLLMENT

NEWS BRIEF: HONDA RECALL

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MAKING CONNECTIONS, CHANGING LIVES

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Navigating Medicare Open Enrollment

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Steven Thomas Smith, MBA, EA, REBC ® Benefits Account Executive

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Steven Smith

By Chad Heller, CIC ®, AFIS, Personal Lines Operations Manager

1.7M Hondas Recalled, and Why

How Love INC. Empowers Those In Need

HR COMPLIANCE BULLETIN Best Practices for Employee Discipline

CUSTOMER APPRECIATION RECAP Thankful for You!

When self-funding your health plan isn’t an option By: Andy Yost, Principal & Benefits Risk Advisor

To deal with the ongoing, seemingly never-ending rise in health care costs, employers need to keep reevaluating how they fund their health insurance programs and the type of programs they offer. Most companies offer some level of health benefits to their employees, yet how they manage the cost varies greatly, and they may want to consider alternative cost saving strategies that are gaining traction in the marketplace.

Consider this troubling statistic: For the past three years, health benefit costs for employers rose more than 5% year-overyear, according to Mercer . Companies that did not make any changes to reduce this expense or explore other ways of covering their employees’ health care costs realized even higher increases.

Employers estimated they would have experienced a 7% increase if they had stayed with the status quo, Mercer reported.

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CONSTANTLY CHANGING LANDSCAPE Amid the soaring costs of health care is companies’ need to provide this powerful resource to their employers: Employer-sponsored health coverage is considered both an essential way to attract and retain a talented workforce, and it’s a requirement for companies with at least 50 full-time employees (under the Affordable Care Act’s “employer mandate”). As it is, many smaller businesses that fall under the threshold offer health care regardless of the regulatory requirement.

To deal with the rising costs, in recent years, some employers have opted to self-fund insurance plans, but this option tends to benefit only larger organizations that have the capacity to absorb the administrative costs and tasks associated with such plans. Companies of all sizes have also tried various ways to help employees manage their share of health costs, such as by raising deductibles, offering tax-friendly flexible spending accounts and health savings accounts, and introducing wellness programs that help to encourage healthy habits, such as gym reimbursements.

Companies that have determined self-funding is not an issue should take a close look at their current health plans.

On a larger scale, though, companies that have determined self-funding is not an issue should take a close look at their current health plans. Evaluate your utilization rates (to what extent are employees using the benefit?) and employees’ feedback about the plan, all while considering the company’s future growth. You may also want to consider alternative ways to cover some of the costs of health care beyond a traditional group health insurance plan.

Andy Yost

A key benefit to HRAs is flexibility: Employers decide what their contributions will be and what expenses they will cover, and employees get to choose their own provider and insurance plan. Administrative costs and involvement by employers is lower and, unlike group plans, you will not pay for services not utilized.

How HRAs work: Employees usually pay up-front for their services, later getting reimbursed depending on their limits for the year and what the insurance company covers. Those reimbursements to employees are treated as tax-free (they do not affect their income taxes or the employers’ payroll taxes).

They could lose funds depending when they transition to a new workplace and the specifics of your program.

HEALTH REIMBURSEMENT ACCOUNTS (HRAS) Employers can include health reimbursement accounts, or HRAs, in their insurance plans, and many do. These taxadvantaged accounts reimburse employees for qualified medical and dental expenses, prescriptions, and insurance premiums.

HRAs can also be offered within individual policies through an individual coverage IRA or what’s known as a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA), which is primarily for small businesses with fewer than 50 FTEs. They are growing in popularity, especially among larger employers, according to the HRA Council, which noted that 83% of surveyed employers said they previously were not able to offer health insurance to their employees before starting an HRA program.

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Other benefits for employees include being able to carry over unused funds to the next year (if their employer allows it) and keeping their insurance plan if they switch jobs. Coverage can be extended to dependents and spouses. Employees will need to be aware, however, that they could lose funds depending when they transition to a new workplace and the specifics of your program.

GAP PLANS To help employees meet the costs of a high deductible health plan (HDHP), employers are increasingly offering gap plans. These supplementary plans are designed to “bridge the gap” by giving people another option for paying toward their deductible and out-of-pocket fees, including copays. A downside is gap plans may not cover preexisting conditions and may not include some procedures that employees are accustomed to in more traditional health insurance plans.

HSAs are highly used and sometimes involve automatic enrollment at employers that use them

Gap plans are often used as an alternative to health savings accounts (HSAs), which are offered to employees as a way to manage their share of health care costs using pre-tax dollars.

HSAs are highly used and sometimes involve automatic enrollment at employers that use them, according to a 2023 Plan Sponsor Council of America survey, but they do require more education and administrative involvement by employers.

TIME TO CONSIDER NEW HEALTH BENEFITS OPTIONS? Changes in the health care marketplace and growth at your company may prompt you to review your current employees benefits offerings. Your broker can help you explore various rates from top insurance carriers as well as new options that could be the right fit for your organization.

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RAISING YOUR EMOTIONAL QUOTIENT (EQ)

BECOMING A

CURIOUS

LEADER

BY: Vaughn Troyer, President of Hummel

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I was recently reading a book by Jim Collins, “How the Mighty Fall”. In it, Collins makes the case that a common theme his research team identified in declining companies is the existence of hubris in the top leadership. Leaders who believe they have all the answers and believe they are the reason for the success of their company are at risk of leading their organizations into decline. I believe one way Hubris is displayed is the absence of curiosity and thus the lack of desire to better understand. These individuals lack self-awareness and the fact they no longer are learning, improving, and don’t have the curiosity to do so. Effective leaders of people need to have the curiosity of self-awareness. They should desire to better understand how they interact with the people they lead, and improve at these interactions.

Vaughn Troyer

The Nurturer, Creator, Guardian, Connector, and Pioneer

Hummel is currently in the middle of a process that uses an assessment from GiANT Worldwide called 5 Voices. 5 Voices simplifies the Myers-Briggs personality types into five categories: the Nurturer, Creator, Guardian, Connector, and Pioneer. No one category is considered the right way to lead, rather, it’s a self-understanding of how each of us communicate in our leadership role. Understanding our natural tendencies and the natural tendencies of our teammates can help us communicate more effectively and build stronger relationships within our teams.

really mean is “That’s not how I would do it”, or “That’s not how I would say it” and frustration and conflict likely follow. Communication is hindered by leaders not understanding that my peer has a different voice than I do and thus we approach the situation differently.

Understanding those differences changes how I react to that person’s comments or actions, changes my approach to a conversation with that person, and ultimately improves trust and the relationship.

No one category is considered the right way to lead

We are a multi-generational company and were previously led by Bruce, Brian and Barry Hummel. These gifted individuals had their own leadership “voices”, which may differ from the voices of the leaders at Hummel now. As Hummel grows, we tap additional leaders to step into roles.

All of us have potentially different voices and none of us will not do it exactly like a predecessor did. Understanding our voice and the voice of others gives us the confidence to lead in our own natural style.

One of the key strengths of a self-aware leader is the ability to understand strengths of self and team members and utilize them to make the organization better. For example, a leader might excel in strategic thinking and decision-making. They surrounded themselves with other team members to complement their weaknesses of detailed planning or inspiring others. I have already seen the impact of leaders at Hummel better understanding their natural voice and changing conversations to turn conflict into better outcomes.

If you look around your organization, you probably do not need to look hard to find a situation of one person being frustrated by another team member and they vent “Why would they do that”, or “Why did they say that”? What they really mean is “That’s not how I would do it”, or

I hope each of you are curious; curious about yourself, about others, and about the industry you work in. Keep pushing yourself to better understand and in doing so I believe your organization will be rewarded by you becoming a better version of you.

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Financial Market Update – Q4 2024

STAY THE COURSE Investing Through The Noise

Peyton Gentry

By: Peyton Gentry, AIF – Hummel Financial Advisor

Boy, 4 years went by in the blink of an eye, didn’t it? It feels like just yesterday we were in the throes of the 2020 election cycle. Our television screens and social media feeds were flooded with an onslaught of negativity and mud-slinging promises telling us “If the person we don’t like gets their way, you can kiss the future goodbye”. In my world of financial planning, you didn’t have to look too hard to find “experts” on both sides of the fence predicting wildly negative outcomes for our retirement accounts based on November’s results.

There is one problem with applying this line of thinking to our retirement saving… history has proven that the market really doesn’t care what happens in November.

There have been 20 election cycles dating back to 1936 (the middle of the Great Depression). Throughout these presidential terms we have endured wars, terrorist attacks, natural disasters, pandemics, bank failures, interest rate spikes, housing bubbles, and every other crisis you can think of. When these crises consume our lives and media, it would be easy to assume that panicking and pulling the plug on our retirement savings plan is a wise decision.

Wouldn’t we be better off just burying our money in the backyard and hunkering down?

History gives us a pretty clear answer: no.

You see, an investment made in January of a presidential election year saw a positive 10-year return 19/20 times.

That same 10-year investment was worth more than double

in 12 of those 20 periods. And that 1 time out of 20 that it was negative, it turned positive if you waited 3 months. * Twenty elections that resulted in 11 Democratic presidents and 9 Republican presidents. And there really was no clear advantage one way or another.

So, here we are. 4 years later. Buckling up to do it all over again and hearing the exact same fear-based “advice” dressed up in a fancy new suit. This election will come and go, as the last 20 have. A new president will be sworn in on January 20th and the fear, panic, and negativity on our screens will shift their focus to the next flavor of the month.

The wise investor will base their investment decisions on their personal Financial Plan, not the noise. They will stay the course in their personally tailored, diversified strategy that THEY built with the help of their Advisor.

We’re Americans, after all. Since when do we let other people’s opinions make our decisions for us?

*Return data based on an investment in the S&P500 Index with dividends reinvested.

Peyton Gentry is a Registered Representative offering Securities through The O.N. Equity Sales Company, Member FINRA/SIPC, 4585 State Route 39 PO Box 250 Berlin, OH 44610 (330) 893-2600. Investment Advisory services offered through Hummel Wealth Management, LLC and O.N. Investment Management Company. Hummel Wealth Management, LLC is not affiliated with The O.N. Equity Sales Company or O.N. Investment Management Company.

The information discussed is educational in nature and is not and should not be construed to be investment advice, nor a recommendation to purchase or sell any investment product or security. All investing involves risk, including the possible loss of principal, and there is no guarantee that any investment strategy will be successful.

Past performance is no guarantee of future results.

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Employee Spotlight

Navigating Both Sides of the Healthcare Maze An interview with Andy Yost Andy Yost, Employee Benefits Risk Advisor at Hummel Group, advocates for both employers and employees navigating the cost and complexity of health insurance.

Tell us what you did before joining Hummel in 2020.

I was a vice president of sales for P. Graham Dunn, where I worked for eight years. It’s a different industry selling to independent retailers and working national accounts. I changed careers mainly due to lifestyle reasons. I had three young kids and was traveling all over the country. I was living life on a jet. Anytime I was booking a flight, I would try to find the earliest flight out. Making a change to be closer to home, closer to my family, was the primary driving factor behind making the change.

What was the beginning of your time with Hummel like?

I started at Hummel Group in February 2020. I got my licensures, and then COVID hit. My wife and I had just had twin boys, who are a year and a half older than our daughter, and I was going through a job transition all in the course of a year. I had to figure out the new job from home.

There was a learning curve getting to know the technical side of the employee benefits space, but I’ve caught up through experience.

How did you wrap your head around the switch of selling physical products to being in the employee benefits world.

When there’s a physical good delivered at the end of that sale, you can feel it, and hold it. It evokes emotion.

Insurance definitely evokes emotion, but there’s nothing tangible that you receive as the end result other than a stack of paper. So that was a change.

Andy Yost

But at the end of the day, you’re still working with people.

Both types of work are about relationships and developing trust. The principles I follow and the skills I developed throughout my time at P. Graham Dunn transitioned well to Hummel.

How do you serve your benefits clients?

I was a vice president of sales for P. Graham Dunn, where When a policy is about to renew, we get it a few months before and assess it for our clients. We then work with them to come up with a strategy that works with them. As health insurance costs keep rising, I’ve had to educate myself on the strategies available in the market, in order to save employers money on their health insurance plans. I’ve developed a network of strategic partners so that I can bring options to clients for their employee benefits program.

So a lot of time is spent educating clients and prospects.

By advising them, we empower them to make good business decisions. I also spend time on service, such as answering employees’ questions about their health plan. I just got an email about a long-term disability claim that was denied, and I need to look into why and file an appeal.

So, you’re taking on the responsibility of advocating for the employee?

Yes. This is what differentiates Hummel from the service side of employee benefits. At some companies, employees are instructed to call the insurance carrier and figure it out on their own. With Hummel, you have a service team acting as your liaison between the insurance company. We advocate to bring resolution and clarity to insurance issues.

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How do you help employers realize their range of options?

Can you tell us more about what you mean by your experience?

We have a pulse on the market. Hummel does a great job of networking and keeping our ear to the ground. We know about the latest strategies and partners that are available, to realize cost savings.

Before joining Hummel, my wife and I were healthy and rarely went to the doctor. I paid for health insurance out of my check, but I did not give it much thought until my daughter was born. She had to spend time in the neonatal intensive care unit at Akron Children’s Hospital. It wasn’t until she was about 6 months old that we found out she has a rare genetic condition leading to some mild to moderate special needs.

For instance, I was getting to know a client for the first time and discovered he did not have a broker. He had a type of health plan known as a grandmother plan, and the rates were extremely high. I let them know about another health insurance platform available that would lower their deductible and save $200,000 on his health insurance premiums annually. He was thrilled but would not have known those options were available to him if it wasn’t for the conversation we had.

What misconceptions are prevalent in the health insurance industry?

People are often skeptical about any type of insurance, not just health insurance, and they do not always see the value. Because of my own experience however, I have seen the financial protection that health insurance can provide.

It provides stability. Healthy people who never need to go to the doctor have to pay for health insurance premiums.

I understand the frustration. But insurance is protecting against the unknown risk. You never know when a medical event or condition can occur. And that’s where having major medical insurance is a safety net for financial protection.

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Through that process, my eyes were open to the pitfalls that you can fall into as an insurance consumer. You may think you are using an in-network provider that is in fact a third party to your physician group is out of network. How are you supposed to know?

The experiences we’ve had raising my daughter is one of the reasons I joined Hummel. I saw a better way. Brokers, in my opinion, can play a more pivotal role in service. They should be an advocate for the employer, of course, but also for the employees at that employer as they navigate their health care journey.

Andy Yost is a benefits risk advisor with the Hummel Group.

He can be reached at 800-860-1060 or emailing him at ayost@hummelgrp.com.

Book Review

Don’t Burn Out Burn Bright BY: Jason Young & Jonathan Malm BY: Misty Fraelich-Clark, Hummel's Human Resources Manager

If you are leading in any capacity of life, I am sure you have found your candle not burning as brightly as it could. To maintain a passion for leading others well, we must be mindful of ourselves and what we do to continuously fill our cups and be a light to others around us. The leadership team at Hummel Group read Don’t Burn Out Burn Bright by authors Jason Young and Jonathan Malm. I found the book to be an easy, relatable read, as they provided practical ways to lead well and avoid burning out. Two topics that stood out to me from the book were Embracing Your Imperfect and Setting Boundaries.

We’re attracted to effective, humble leaders, even embracing their flaws as something endearing when those flaws are accompanied by humility (34).”

Often, I find it difficult to share my struggles and have unrealistic work habits to fulfill the demands of my roles in life. Young and Malm provide a powerful truth: “The truth is, people aren’t attracted to perfect leaders. We’re attracted to effective, humble leaders, even embracing their flaws as something endearing when those flaws are accompanied by humility (34).” I found it is easier to connect with others and build relationships when I let down my guard—embracing the fact that I’m human, not perfect. “Imperfect leaders, weirdly enough, provide a sense of safety for those they lead (35)”. So, embrace your imperfect!

As I read, the chapter about setting boundaries was refreshing not only because it is healthy to have boundaries but because boundaries are building blocks for future growth. “If you don’t start incorporating healthy relational boundaries, there’s a chance you’re heading towards exhaustion. Boundaries help us create a framework for better loving people and for surrounding ourselves with people who recharge and energize us (117)”. Setting boundaries can feel mean, but saying no is necessary to maintain a positive energy by surrounding myself with

people and projects that bring me joy.

In turn, by setting parameters, I can provide people around me with positive energy, which is contagious.

I found wonderful insights outlined in the book to incorporate healthy concepts into my life in order to maintain Misty Fraelich-Clark the energy and focus I needed to lead personally and professionally. It is essential to recognize the importance of rest and to prioritize it in our lives, allowing us to focus on what truly matters and to lead with strength and transparency.

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Home Insurance Spotlight

Impactful Changes Effecting Roof Coverage How these trends could effect you and your home

By Chad Heller, CIC, AFIS – Hummel Group’s Personal Line Manager

Three impactful trends regarding roof coverage could affect most homeowners.

These trends could increase the amount you pay when you have a claim.

Instead of paying only your home deductible, you may be left with paying thousands of dollars to repair damages to your roof.

TREND 1

WHAT YOU SHOULD KNOW

REPLACEMENT COVERAGE (RC) CHANGING TO ACTUAL CASH VALUE (ACV)

Insurance companies are converting replacement coverage for older roofs to the actual cash value.

Replacement Coverage means that the company will pay what it will cost to replace or repair the damaged item and WILL NOT deduct for age and wear and tear.

Think about how auto insurance works. When you damage your vehicle, the insurance company does not replace it.

Actual Cash Value (ACV) means that the company will pay what it costs to replace or repair the damaged item and WILL deduct for age and wear and tear.

They give you market value to replace /repair it.

Most insurance companies still have replacement coverage available for newer roofs ~ less than 1015 years old.

EXAMPLE OF REPLACEMENT COVERAGE Damage to your 15-year-old roof after a wind/hail storm is $5,000. The company will pay out $5,000 (minus your deductible)

EXAMPLE OF ACTUAL CASH VALUE COVERAGE Damage to your 15-year-old roof after a wind/hail storm is $5,000. The company will base the payout on replacement coverage and subtract for things like age, condition, and material of the roof (and your deductible). The better the condition and age of your roof, the more the settlement could be.

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TREND 2

LIMITED LOSS SETTLEMENT Limited Loss Settlement is similar to Actual Cash Value coverage in that it considers the roof's age and condition and may pay less than the full cost of replacement. Where it differs from Actual Cash Value is that the payout is based on a percentage that the company assigns to the type and age of the roof. This is done to create better clarity of the payout in the event of a loss.

WHAT YOU SHOULD KNOW Limited Loss Settlement eliminates some ambiguity of the actual payout for a roof loss. Actual Cash Value coverage provides loose guidelines for the exact payout for a roof loss. Companies base payouts on the roof's age, condition, and type of roof. There is a lot of wiggle room there. Limited Loss Settlement eliminates that wiggle room.

Some companies require Limited Loss Settlement on older roofs, while others only have it as an option.

This means that your policy could have been renewed with this coverage because of the age of your roof.

EXAMPLE OF A LOSS WITH LIMITED LOSS SETTLEMENT Wind/Hail damaged your 15-year-old asphalt shingle roof. The company will refer to the Roof Surface Loss Percentage Table (see example below) and see that a 15-year-old asphalt shingle roof is assigned a 55% payout to repair or replace the damaged parts of the roof. The company will only pay out 55% of the cost to repair/replace the damaged roof (minus your deductible). If your damage is $5,000. The company would pay out $2,750(minus

Chad Heller

your deductible).

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Example of a Roof Surface Percentage Table

Age of roof in years

Roof surface material type Asphalt

Metal

Other

Slate

Tile

Wood

Less than 1

100%

100%

100%

100%

100%

100%

1

97%

99%

97%

99%

98%

98%

2

94%

98%

94%

98%

96%

96%

3

91%

97%

91%

97%

94%

94%

4

88%

96%

88%

96%

92%

92%

5

85%

95%

85%

95%

90%

90%

6

82%

94%

82%

94%

88%

88%

7

79%

93%

79%

93%

86%

86%

8

76%

92%

76%

92%

84%

84%

9

73%

91%

73%

91%

82%

82%

10

70%

90%

70%

90%

80%

80%

11

67%

89%

67%

89%

78%

78%

12

64%

88%

64%

88%

76%

76%

13

61%

87%

61%

87%

74%

74%

14

58%

86%

58%

86%

72%

72%

15

55%

85%

55%

85%

70%

70%

16

52%

84%

52%

84%

68%

68%

17

49%

83%

49%

83%

66%

66%

18

46%

82%

46%

82%

64%

64%

19

43%

81%

43%

81%

62%

62%

20

40%

80%

40%

80%

60%

60%

21

37%

79%

37%

79%

58%

58%

22

34%

78%

34%

78%

56%

56%

23

31%

77%

31%

77%

54%

54%

24

28%

76%

28%

76%

52%

52%

25

25%

75%

25%

75%

50%

50%

26

25%

74%

25%

74%

48%

48%

27

25%

73%

25%

73%

46%

46%

28

25%

72%

25%

72%

44%

44%

29

25%

71%

25%

71%

42%

42%

30 or older

25%

70%

25%

70%

40%

40%

* The Age Of Roof is determined by subtracting the roof year, as shown in the Declarations from the year of the current policy effective date

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TREND 1

INCREASED WIND/HAIL DEDUCTIBLES The Wind/Hail Deductible is a separate deductible applied to your home policy in case of a loss due to wind or hail.

WHAT YOU SHOULD KNOW Many companies now offer, and sometimes require, a separate Wind/Hail deductible, which is higher than your policy deductible.

If required, these higher deductibles are automatically increased at the renewal.

Wind/hail deductibles could be a flat amount or a percentage of the dwelling (for example – a 1% deductible on a home insured at $500,000 is a $5,000 deductible).

ROOF COVERAGE TRENDS CLAIM SCENARIO

How does it look in a potential claim situation if...

Your roof coverage is ACV/Limited Loss Settlement?

Your wind/hail deductible has increased?

These increased deductibles are automatically added to some renewal policies depending on the roof age and/or the overall deductible on the policy.

This could mean that the deductible you are paying out of your pocket for a wind/hail claim will be more than your overall deductible on the policy.

EXAMPLE

There is a roof loss that will cost $5,000 to repair.

Your roof is 15 years old and is an asphalt shingle.

Your home deductible is $1,000.

BEFORE RECENT TRENDS IN ROOF COVERAGE Coverage for the roof (replacement=$5,000 Deductible = $1,000 Insurance company claim payout ($5,000-$1,000) = $4,000 Your out of pocket expense = $1,000

WITH LIMITED LOSS SETTLEMENT AND HIGHER WIND/HAIL DEDUCTIBLE

Roof damage = $5,000 Limited Loss Percentage = 55% (Review the table below to see how we came up with this percentage.)

Payout ($5,000 x 55%)= $2,750 Wind/Hail Deductible = $2,500 Insurance company claim payout ($2,750-$2,500)= $250 Your out-of-pocket expense ($5,000–$2,750+$2,500)= $4,750

WHY ARE INSURANCE COMPANIES DOING THIS? Cost control—Amidst rising costs and increased weather events, insurance companies seek ways to manage expenses. Soaring materials and labor costs can impact insurance payouts, ultimately leading to affordable insurance premiums.

Risk management – companies can better predict their financial obligations by limiting payouts on older roofs.

Depreciation—Older roofs have a higher depreciation rate and are considered high-risk due to potential underlying issues or nearing the end of their lifespan.

WHAT CAN YOU DO? 1. Please ensure your insurance company has the most up-to-date year since your roof was last replaced. Newer roofs have fewer restrictions on coverage and prices.

2. Review your policies, at minimum, annually to ensure that all coverages are correct, you are aware of your deductibles, and so that there are no surprises if you have a claim.

3. Have your roof inspected by a trusted local roofer. Address any loose, broken, or worn shingles, loose nails, cracked sealant, flashing, moss growth, or other repairs now.

4. Ensure the gutters and downspouts are secure and have been cleared of debris.

5. Trim overhanging limbs, prune trees around the property as needed, and inspect trees for damage after a major storm.

6. Call us. We want to help.

As we navigate the complexities of the present, we remain steadfast in our commitment to your future. Looking to the horizon, we see a landscape of opportunities and challenges that we are eager to explore alongside you. Your trust in us fuels our dedication to seeking out the paths forward.

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Leave a Legacy

Not a Mess Who Will be the Primary Beneficiary of Your Estate?

• Uncle Sam (Taxes)?

• Financial Institutions (Fees)?

• Corporations (Creditors)?

• Strangers (Fire Sale)?

• Probate Court (Legal Battle)?

Ensure YOUR estate goes where YOU want it to!

800-860-1060

www.hummelfinancialadvisors.com Registered Representatives offer Securities through The O.N. Equity Sales Company, Member FINRA/SIPC, 4585 State Route 39 PO Box 250 Berlin, OH 44610 (330) 893-2600.

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Five Potential Risk Areas in Retirement How Much of Your Retirement Income is Unprotected?

1. Living a Long Life:

Solution:

The longer you live, the more money you need. The more money you need, the more likely you are to run out.

Generate a strategy that will produce lifetime income to help reduce the likelihood of running out of money.

2. Inflation:

Solution:

Your buying power will decrease even if your portfolio remains static.

Distinguish between capital preservation and purchasing power preservation and then develop a plan that helps maintain a comfortable standard of living.

3. Taxes:

Solution:

When should you pay taxes? Which account will allow you to withdraw the most dollars with the least tax burden.

Understand what makes the most sense in your unique situation to minimize your tax liability now and in the future.

4. Medical Costs:

Solution:

Healthcare costs are on the rise.

Protect against higher than anticipated healthcare costs by transferring the risk to someone else.

5. Market Volatility:

Solution:

Taking withdrawals in a volatile market can put a strain on a portfolio.

Construct a defensive portfolio that aligns with your withdrawal strategy.

Call 800-860-1060 to Speak With a Financial Advisor Now Investment Advisory services offered through Hummel Wealth Management, LLC and O.N. Investment Management Company.

Hummel Wealth Management, LLC is not affiliated with The O.N. Equity Sales Company or O.N. Investment Management Company.

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NAVIGATING MEDICARE OPEN ENROLLMENT By: Steven Thomas Smith, MBA, EA, REBC® Benefits Account Executive

The Medicare Annual Enrollment Period (AEP) is underway, running from October 15 to December 7. This crucial window, often called “open enrollment,” allows beneficiaries to evaluate their health insurance options and make necessary changes.

During AEP, beneficiaries can: • Switch from Original Medicare to Medicare Advantage • Change Medicare Advantage plans • Return to Original Medicare from Medicare Advantage • Switch stand-alone Prescription Drug Plans (PDPs), or • Enroll in a PDP for the first time.

WHY REVIEW YOUR PLAN? Plans can change yearly, impacting premiums, coverage, and networks. It's essential to assess whether your current plan still meets your health needs, especially if you've experienced changes in your health or medication.

When reviewing your options during AEP, consider several factors: compare premiums, deductibles, and co-pays to assess costs; ensure your preferred doctors are in-network; check how your medications are covered under different plans; and explore any extra benefits that may enhance your coverage.

After AEP ends on December 7th, you may not have another opportunity to change plans until next year.

As November progresses, reflect on your needs and explore your options to ensure you have the right plan for the upcoming year.

THE BOTTOM LINE The AEP is your chance to take control of your healthcare coverage. As November progresses, reflect on your needs and explore your options to ensure you have the right plan for the upcoming year. For assistance, reach out to our agency—we’re here to help

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Steven Smith

The NOCC informs them if their prescription drug coverage meets Medicare's standards, crucial for avoiding late enrollment penalties.

CONSIDERATION FOR EMPLOYERS: DRUG COVERAGE CREDITABILITY Employers should communicate Medicare options to employees and send the Notice of Creditable Coverage (NOCC) to all Medicare-eligible employees, spouses, or dependents. The NOCC informs them if their prescription drug coverage meets Medicare's standards, crucial for avoiding late enrollment penalties. If coverage is not creditable, they should enroll in Medicare Part D by December 7 to avoid these potential penalties.

If you have questions on your plan’s creditability, reach out to your employee benefits advisor. We have a template to help you prepare the notice!

Steven Smith is a Benefits Account Executive at Hummel Group and can answer questions about Medicare.

He can be reached at 330.684.5940.

Hummel Group is not connected with or endorsed by any government or the Federal Medicare Program. Calling the number above will direct you to a licensed insurance agent.

NEWS BRIEF 1.7M HONDAS RECALLED, STEERING RISKS CITED On Oct. 3, 2024, Honda submitted a recall for nearly 1.7 million U.S. vehicles due to steering safety concerns.

The issue stems from “improperly produced steering gearbox” components, according to the National Highway Traffic Safety Administration (NHTSA).

WHICH VEHICLES ARE AFFECTED? The recall affects certain 2022-2025 Honda and 2023-2025 Acura models, including: • 2022-2025 Honda Civic 4D • 2025-2025 Honda Civic 4D Hybrid • 2022-2025 Honda Civic 5D

WHAT’S THE ISSUE?

• 2025 Honda Civic 5D Hybrid

The gearboxes of certain Honda vehicles weren’t properly manufactured, according to the NHTSA. Specifically, the gearbox worm wheel can swell—which reduces grease in the area—and may cause increased friction with the worm gear. Additionally, the worm gear spring preload was set too high, adding further resistance.

Ultimately, the combined factors could result in “sticky” turning caused by the extra component friction. This can make turning the wheel difficult and lead to accidents, according to the NHTSA.

• 2023-2025 Honda Civic Type R • 2023-2025 Honda CR-V • 2023-2025 Honda CR-V Hybrid • 2025 Honda CR-V Fuel Cell Electric Vehicle • 2023-2025 Honda HR-V • 2023-2025 Acura Integra • 2024-2025 Acura Integra Type S To confirm whether your vehicle may be affected by this recall, use the Honda, Acura or NHTSA lookup tools.

WHAT’S NEXT? Honda will be notifying affected vehicle owners via mail about their recall status by mid-November.

Impacted owners can take their vehicles to an authorized Honda dealership for repairs, which may include replacing gearbox components and adding grease.

Owners who paid out of pocket for repairs related to this issue may be eligible for reimbursement.

The content of this News Breif is of general interest and is not intended to apply to specific circumstances. It should not be regarded as legal advice and not be relied upon as such. In relation to any particular problem which they may have, readers are advised to seek advice. ©2024 Zywave Inc. All rights reserved.

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NONPROFIT SPOTLIGHT

Making Connections Vicki Conn and the nondenominational ministry she leads are on a big mission—to transform lives and communities in the name of Christ. And a decade since it started, the local organization in Millersburg, Ohio is achieving that mission in meaningful ways.

Known as Love INC. (which stands for Love in the Name of Christ), the organization has lifted people up by connecting them with community and church resources along with education that gets at their core issues, anything from creating a budget, dealing with anxiety, traveling to appointments or furnishing their apartment. Love INC often helps out when people are feeling at their lowest, when they are struggling to pay bills, put food on the table, or finding a support system.

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Changing Lives Love INC empowers those in need through a network of volunteers, churches, and community resources.

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Here, it's a cooperative effort between numerous /churches, working together as the body of Christ to combine resources and serve their neighbors.

Hummel recently learned more about one of the more than 110 affiliated organizations to the national Love INC, during a conversation with Conn, who is executive director of the Love INC in Greater Holmes County. Here, it's a cooperative effort between numerous /churches, working together as the body of Christ to combine resources and serve their neighbors. The help they give to others often starts with a phone call, and the person on the other line requesting help with getting food, paying their bills, or being transported to a medical appointment.

Conn described the organization as an extension of the church office. If someone calls their church asking for advice or help, Love INC can be suggested as a trusted partner, extending the work of the secretaries and pastors who have limited capacity to meet every individual's needs. Then Love INC goes through a verification process to understand the person's or family's true needs and how the organization can best meet them. For instance, someone struggling to maintain their landscape may get assistance from church volunteers willing to do yard work. A person asking for financial assistance may be best served by learning how to manage their finances through one of Love INC's weekly classes.

Love INC operates with holistic, long-term thinking. For example, if a family is getting evicted and needs help paying their rent, Love INC's response is not to coordinate bill payment but instead to think though resources that will help the family build stability over time.

"... How do we help people? How do we walk with people in ways that are not going to keep them where they're at but move them forward?"

The Power of Community Conn brought the concept to the area based on her time as a phone volunteer at a local Love INC in Northwest Pennsylvania. When she moved to Ohio in 2012, she took note of a similar need here. "I had the sense that Love Inc can be really good for families who are struggling but also really good for churches too. How do we help people? How do we walk with people in ways that are not going to keep them where they're at but move them forward?"

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Vicki Conn | Executive Director of the Love INC

The need became even more clear after her husband, Jay, the lead pastor at Martins Creek Mennonite Church, was discussing with other pastors about ways they could collaboratively help their congregations. With the support of a Holmes County Ministerial Association grant and the national Love INC, the new organization began.

Love INC's work involves putting different pieces together, (metaphorically and sometimes literally!), including volunteers and ministries, to fill a gap in a person's life.

Love INC's work involves putting different pieces together, (metaphorically and sometimes literally!), including volunteers and ministries, to fill a gap in a person's life.

For instance, a furniture ministry can tap a stock of donated furniture while Wheels of Love drivers can take people to their medical appointments. Gap ministries are created when a need with an unclear solution comes up. For instance, a kitchen starter kit can be compiled in anticipation of someone needing it during a relocation.

The largest needs in the area include transportation and affordable housing, along with individual attention.

"As much as Holmes County is also a very strong, family -oriented community, there are people who are extremely lonely and who have no church support or family support," Conn says.

Conn gave the example of a woman on hospice who needed food. Love INC worked with the Love Center Food Pantry to acquire food supplies. When the volunteer arrived to deliver the food, she noticed expired food containers and a clear lack of family support system. The volunteer asked if it was OK to pray together, and they did. Then the volunteer asked if the woman would accept a hug. "She gave her a hug and the lady was like, 'I don't remember when the last time anybody hugged me,'" Conn said, recounting the story.

Appreciation for what Love INC does can take time. After 12 weeks of taking the organization's "Faith and Finances" course, a participant shared that had been suffering from addiction and needed a community that would hold him accountable. He ended up joining the church of the pastor who had been facilitating the class and also took a "Reboot Recovery" class about overcoming past traumas. "Having a healthy community is making a huge difference in his life," Conn says.

How to Help Vicki Conn says Love INC largely relies on the time and interest of volunteers, and they are most in need of Wheels of Love volunteers. Conn says volunteers need to be open to walking with people who fall outside their circle and to be respectful, not judgmental. "Your brokenness might be here. My brokenness is here. We all have something we need to grow in, so a challenge for me in my heart as a director is to make sure that everybody feels validated," she says. "Whether you are the family calling in or whether you're the volunteer serving, everybody has that equal purpose and value in life”. If you are interested in volunteering or donating to this worthwhile organization, go to www.loveincofghc.org. And if you are interested in learning more about how to start a local Love Inc. chapter in your area, you can reach out to Vicki Conn directly, via the website.

After 12 weeks of taking the organization's "Faith and Finances" course, a participant shared that had been suffering from addiction and needed a community that would hold him accountable.

Love Inc.'s annual "Back to School store". Families can shop for most everything on their school lists for a suggested $5/student donation.

Part of the Love Inc. team delivering furniture

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HR COMPLIANCE BULLETIN

BEST PRACTICES FOR

Employee Discipline Employee discipline is a necessary but often fraught element of workforce management. Disciplinary action taken in lieu of immediate termination can help mitigate the risk of potential wrongful termination claims, but failure to handle employee discipline properly can negatively affect employee morale and expose employers to other legal claims. Therefore, it is important for employers to consider a variety of factors before disciplining employees.

To minimize legal risks and protect employee morale, employers may consider each of the following best practices in implementing employee discipline: • Create clear and consistent policies • Establish a lawful and nondiscriminatory basis for employee discipline • Document the reason for discipline • Conduct an internal investigation

Highlights : To avoid employee claims, employees may want to establish practices for the disciplinary process to mitigate legal risks and protect employee morale, such as: • Creating clear and consistent policies; • Establishing a lawful and nondiscriminatory basis for employee discipline

• Consider potential limitations to discipline

• Documenting the reason for discipline

• Select an appropriate method of discipline

• Investigating misconduct

• Effectively communicate with the employee being disciplined

• Selecting an appropriate method of discipline • Considering potential limitations to discipline

Action Steps :

• Effectively communicating with the employee being disciplined.

Prior to taking any disciplinary action, employers should carefully consider their obligations and any potential legal or business risks. This Compliance Bulletin provides best practices for employers to reduce risks when implementing employee discipline by ensuring compliance with legal and contractual requirements and maintaining a positive company culture.

This Compliance Bulletin is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice. ©2024 Zywave, Inc. All rights reserved.

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HUMMEL IS

HIRING! Samantha Lusk - Business Account Manager Peyton Gentry, AIF - Financial Advisor

START YOUR CAREER AT

HUMMEL GROUP At Hummel, we believe a life of significance comes through serving others.

Discover how you can build a fulfililng career by helping us achieve this mission.

POSITIONS AVAILABLE IN:

Sales Service Administration Visit HummelJobs.com to apply now WINTER FALL

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Thankful For You! 2024 Client Appreciation Days

We had great turnouts at our client appreciation events this year at our Berlin, Orrville & Middlebury locations! Thanks to everyone who stopped by to say hi and congratulations to our raffle prize winners!

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What Can Hummel Do for You? Personal Insurance Specialized in complex insurance needs Private client services In-house claims specialists

Commercial Risk Management Industry-specific insurance expertise Captive and self-insured options Tools to evaluate your risk profile

Employee Benefits

Wealth Management

Creative strategies for cost containment In-house claims support team No-cost technology tools

Transparent fee-based service Expertise in retirement and goal planning Strategies for individuals and employers

800.860.1060 | www.hummelgrp.com | Copyright © Hummel Group. All Rights Reserved Securities offered through The O.N. Equity Sales Company, Member FINRA/SIPC. 4585 State Route 39, PO Box 250 Berlin, OH 44610, ph. 330.893.2600. Investment Advisory services offered through Hummel Wealth Management, LLC and O.N. Investment Management Company. Hummel Wealth Management, LLC is not affiliated with The O.N. Equity Sales Company or O.N. Investment Management Company.