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Fall 2015
health. wealth. life. Vision, Innovation &
a Lasting Legacy
Wilbur and Orville Wright with their second powered machine at Huffman Prairie in Dayton, Ohio (1904).
In Pursuit of What Matters Most.
contents 3
A Letter from Terry Horan, President & CEO
EDUCATION
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Considerations for Selecting Individual Health Insurance or Medicare Coverage The Difference Between Traditional and Roth 401(k) Using a Health Savings Account as a Savings Vehicle HORAN Partners with Dinsmore and US Bank to Host Seminar Couldn’t Make It? A Look Back at Education Opportunities in October
HORAN Capital Advisors’ Approach to Institutional Asset Management
COMMUNITY
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Community Involvement Corporate & Employee Awards
CLIENT FEATURE
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HORAN EDUCATION SERIES After a full year of health, wealth and life seminars, HORAN is currently finalizing the 2016 Education Catalog. The dates and details for the first and second quarter education offerings will be available on the website, www.horanassoc.com, in early January.
Wellness Works - Warren County Market Spotlight - Dayton: Vision, Innovation & a Lasting Legacy
Please join us in welcoming our new corporate clients! - Court Street USA - LF Creative Group - Grunder Landscaping Co. - Northern Kentucky Water District - Adult and Child Center
- Clark State Community College - tvOne - Delhi Hills Flower & Garden Center Inc. - Marysville Exempted Village Local School District - Rose Automotive Group
Cover: Wilbur and Orville Wright with their second powered machine at Huffman Prairie in Dayton, Ohio, in May 1904. This magazine is in recognition of the Wright brothers’ vision, innovation and lasting legacy and the innovative spirit that the City of Dayton continues to carry forth. Wilbur Wright and Orville Wright photographers. “[Wilbur and Orville Wright with their second powered machine; Huffman Prairie, Dayton, Ohio]” Photograph. Dayton, OH: Wilbur and/or Orville Wright, ©1904. From Library of Congress: Glass negatives from the Papers of Wilbur and Orville Wright, 1904. http://www.loc.gov/item/2001696552/ (accessed November 10, 2015).
health. wealth. life.
Look for us online!
Visit the HORAN Newsroom at www.horanassoc.com to view the online version of health.wealth.life. |2|
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A letter from Terry Horan
In Pursuit of What Matters Most. We hope you enjoy this quarter’s issue of the HORAN magazine. We chose to feature the Wright brothers on the cover of our magazine to showcase the Wrights’ tremendous innovation that led to the birth of aviation. The Wright brothers changed history. Orville Wright said of his and Wilbur’s childhood, “We were lucky enough to grow up in an environment where there was always much encouragement to children to pursue intellectual interests; to investigate whatever aroused curiosity.” HORAN regards creativity and innovation as corporate values. We strive to find ways to do what we already do better. We also believe the City of Dayton’s culture fosters an environment where innovation and creativity thrive. Perhaps the next big innovator is within our midst again. We highlight the City of Dayton in this issue, honoring the legacy of the Wright brothers and showcasing the innovation currently taking place in the Greater Dayton area. There are many great stories in this issue about how we can make a difference in the lives of our clients. Several of our articles deal with saving money by using tax-favored opportunities in the IRS code. Others deal with the differences in savings vehicles as well as utilizing wellness programs to help employees lead healthier lives. HORAN itself was recognized as one of the Healthiest 100 companies in the United States. Let us show you why physical and financial wellness are important and, more importantly, how to make them happen at your company. Best wishes to you and your family for safe and wonderful holidays. Sincerely,
Terence L. Horan, CLU, ChFC President & CEO of HORAN TerryH@horanassoc.com
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education Considerations for Selecting Individual Health Insurance or Medicare Coverage Chris Mihin Individual Health & Medicare Chris Mihin provides direction concerning individual health insurance and Medicare for those individuals without access to group health coverage. Chris simplifies the selection process by exploring all options for each client and determines the option that will best fit his or her needs.
What to consider when choosing or changing your Medicare coverage Costs: How much are your premiums, deductibles and other costs? How much do you pay for services like hospital stays or doctor visits? Is there a yearly limit on what you could pay out-of-pocket for medical services? Make sure you understand any coverage rules that may affect your costs. Doctor and hospital choice: Do your doctors accept the coverage? Are the doctors you want to see accepting new patients? Do you have to choose your hospital and health care providers from a network ? Do you need to get referrals? Prescription drugs: Do you need to join a Medicare Prescription Drug Plan? Will you pay a penalty if you join a drug plan later? What will your prescription drugs cost under each plan? Are your drugs covered under the plan’s formulary? Are there any coverage rules that apply to your prescriptions? Quality of care: Are you satisfied with your medical care? The quality of care and services offered by plans and other health care providers can vary. How have Medicare and other people with Medicare rated your health and drug plan’s care and services? Get help comparing plans and providers. Travel: Will the plan cover you if you travel to another state or outside the United States? If you are currently enrolled in a Medicare plan, review the Evidence of Coverage, which details what the plan covers, and the Annual Notice of Change, which includes any changes in coverage, costs or service area to determine whether or not you need to change your coverage.
Things to consider when choosing or changing your Individual Health coverage You MUST BUY health insurance—or pay a tax penalty. You’ll have to buy your own plan if you don’t get coverage through your employer. The U.S. Supreme Court found it constitutional for the government to require everyone to buy health insurance in 2012. If you do not receive coverage through your employer, you have to either pay for individual health insurance or pay a tax penalty. Is your doctor or preferred hospital in the network? If you want to keep your current doctors, check to see that they’re covered by any insurance plans you’re considering. HMOs are the most restrictive and limit you to doctors in their network. PPOs let you go outside the network for a higher fee. POS plans are a hybrid and allow you to pay extra to go outside the network. Are my prescriptions covered by the plan? You’ll want to make a list of any prescription drugs you take and your other “must have” services to make sure they’re included; many plans will not cover certain medications. Also, look out for dollar caps and other limitations and exclusions. Many insurance carriers are starting to mandate that you use mail order for maintenance medications. Are you eligible for a subsidy to help pay your premiums? The subsidy amount is higher the less you earn and lower the more you earn. A single person who earns more than $46,000 per year in 2016 is not eligible for a subsidy and must pay the entire cost of his or her medical insurance.
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The Difference Between
TRADITIONAL Paul Carl Vice President—Retirement Services Paul Carl is a key member of HORAN’s Corporate Retirement Plan Consulting organization. He works with corporations and individuals to deliver investment and retirement planning. In addition, he monitors investments, fees and providers for employer clients sponsoring retirement plans.
Assume two participants retire from the same company at the age of 65 with identical 401(k) account values of $100,000. Both requested lump-sum distributions from their 401(k) accounts and neither elected a rollover of the funds. One receives a check for $80,000 and the other receives a check for $100,000. Why would there be a difference in check amounts? In 1998, new tax laws introduced the ROTH IRA. It immediately became popular as a retirement savings solution. The passage of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) introduced a similar ROTH solution for employer-sponsored retirement plans. Since January 2006, 401(k) plan sponsors are permitted to include ROTH deferral provisions in their plans. However, the ROTH 401(k) did not catch on immediately. In fact, today various industry sources estimate only 50% to 60% of 401(k) plan sponsors offer the ROTH option. These sources also estimate usage of ROTH provisions by participants ranges from 11% to 25%. Traditionally, 401(k) plans allow employees to contribute to their retirement through payroll deduction on a pretax basis. These pretax contributions then grow tax deferred. At or near retirement (earliest age being 591/2), the participant can withdraw the pretax contributions plus related earnings for rollover into a traditional IRA extending the funds’ tax-deferred status and earnings potential. Alternatively, the participant can withdraw some or all of the contributions and related earnings as taxable. At the time of distribution, the 401(k) provider is required to withhold at least 20% from the gross amount for federal income tax purposes. The full gross amount of the distribution is reportable as ordinary taxable income. Depending on the state in which the participant resides, the gross amount of the distribution may also be taxed as ordinary state income.
ROTH 401(k) Let’s refer back to the example at the beginning of this article. The participant who received an $80,000 check contributed to his or her 401(k) plan on a pretax basis that grew tax deferred. The $100,000 401(k) account balance for this participant results in an $80,000 net check. The $20,000 difference is required withholding for federal income tax purposes and is remitted directly to the U.S. Treasury Department. When the participant files his or her personal income tax return, the full gross amount of the distribution is reported as ordinary income. Depending on the filer’s status and tax rate, the participant may owe additional income tax on the distributed amount. In states taxing retirement distributions, the filer will owe state income tax. For plan sponsors who adopted ROTH deferral provisions, participants have the ability to defer their contributions on a post-tax basis that grows taxfree, provided certain conditions are met. These conditions include holding the funds in a ROTH status for at least five years. Participants choosing to contribute into the ROTH see lower net paychecks as compared to participants deferring on a traditional, pretax basis. However, the participant deferring into the ROTH enjoys tax-free growth that, when distributed on or after retirement, assuming all conditions have been met, has no federal tax withholding or federal income tax implications. This enables the participant to know exactly how much he or she has saved for retirement. In our example, the participant who received a lump-sum distribution of $100,000 contributed into the 401(k) plan using ROTH provisions, effectively electing to pay income taxes in advance of retirement. No taxes are withheld and no additional taxes will be paid in conjunction with the individual’s federal income tax filing for the year of distribution. Each participant has unique financial and tax matters. Nearly all 401(k) record-keeping platforms have calculators that participants can use to compare traditional pretax deferrals to after-tax ROTH deferrals. Using these calculators and seeking assistance from the 401(k) plan’s advisor should help participants make an informed choice toward their long-term retirement planning and savings strategies.
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education Using a Health Savings Account as a Savings Vehicle Anna Pfaehler, CFP® Director of Financial Planning Anna K. Pfaehler helps clients identify and achieve their financial goals pertaining to retirement, funding a child or grandchild’s education, supporting a charity or leaving a legacy. As a Certified Financial Planner (CFP®) her focus is to create a clear picture of the client’s financial health and identify strategies to service any discrepancies. Anna’s expertise includes highnet-worth planning, taxes and planning for unmarried couples.
The health care industry changes so rapidly that it’s hard to predict what the cost of health care will be 10, 20 or 30 years from now. Being prepared for the costs is challenging, but a Health Savings Account (HSA) can help.
TS C FA SAS T H S FA OUT AB
An HSA allows for those with high-deductible health insurance plans to contribute to an account with pretax dollars. The maximum a single person can contribute is $3,350 in 2015 and 2016. The maximum a family can contribute is $6,650 in 2015 and $6,750 in 2016. If you are over 55, you can make an additional, annual catch-up contribution of $1,000. While the funds are in the account, you do not pay income tax on the growth (dividends, interest or realized capital gains). If you ultimately use the funds for qualified medical expenses, you do not pay income tax on the withdrawal. Unlike an FSA, an HSA does not have to be exhausted each year. The balance rolls over and there is no time limit on using the funds in an HSA. Many people use the funds as they go and leave little to no balance at the end of the year. However, if you can pay medical expenses out of pocket, over time you can create a large HSA that can be a tremendous asset in retirement.
When you switch to Medicare coverage, you are no longer eligible to contribute to an HSA, but you can use it to pay for Medicare premiums, deductibles, co-pays, co-insurance and other out-of-pocket medical expenses. Withdrawals are still tax-free as long as they go toward qualified medical expenses. If you were to pay for those same expenses with funds from your IRA or 401(k), there would be income tax on the amount withdrawn. This makes an HSA especially valuable because you do not need to “top up” your withdrawals for income taxes. Once you are over age 65, you can use the funds in an HSA for any expense without penalty (before age 65, there’s a 20% penalty for using HSA funds for nonqualified expenses). However, if the funds are not used for qualified medical expenses, there is income tax on the withdrawal. Therefore, after age 65, an HSA is very similar to an IRA or 401(k) except with the added benefit of tax-free withdrawals for qualified medical
expenses. HSAs are also not subject to required minimum distributions. Another useful feature of an HSA is that you can be reimbursed for qualified health care expenses that happened in previous years, as long as you incurred them after the HSA was opened. Your HSA dollars can grow tax-free for years, allowing you to reimburse yourself from the growth while preserving the principal. Just be sure to save your receipts! Health care is likely to be a major piece of all retiree budgets. Because of its tax benefits, an HSA can leverage your savings and prepare you for these expenses.
Source: Employee Benefit Research Institute, “Health Savings Account Balances, Contributions and Other Vital Statistics, 2014: Estimates from the EBRI HSA Database” (July 2015).
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Lee Stautberg, Esq., Partner at Dinsmore.
(Left to Right) Lee Stautberg, Esq., Partner at Dinsmore; Christopher Muth, Esq., Partner at Dinsmore; Dan McDonald, CLU, Estate and Business Planning Consultant at HORAN; Greg Hoernschemeyer, CLU, Vice President at HORAN; Todd McIntire, Vice President at US Bank.
Nick Reilly, Portfolio Manager & Principal at HORAN Capital Advisors.
HORAN Partners with Dinsmore and US Bank to Host Seminar on Tax Strategies & Estate Planning HORAN partnered with Dinsmore and US Bank to host a seminar designed to help CPAs, business owners and senior level executives understand opportunities and tax implications before year-end on Thursday, October 8, at Hyde Park Country Club. Greg Hoernschemeyer, CLU, Vice President at HORAN; Dan McDonald, CLU, Estate and Business Succession Planning Consultant at HORAN; and Nick Reilly, Portfolio Manager & Principal at HORAN Capital Advisors presented at the seminar along with representatives from both Dinsmore and US Bank.
The seminar covered the available uses for captive insurance (i.e. risk management, estate planning, tax planning and executive benefit plans). The presenters also gave a year-end update on estate tax and a look into the uncertain future with the election in 2016. In addition, the panel highlighted creative funding structures and strategies for using premium financing to fund life insurance policies as well as gave a market update addressing recent volatility.
HORAN is an advocate for ongoing education for both employers and employees. HORAN employees are committed to providing clients, partners and friends of the firm with guidance on best practice strategies to support individual and business objectives across “health, wealth and life”. |7 |
education in case you missed it
HORAN experts provide educational opportunities for clients, partners and friends of the firm.
Paul Carl and Shelly Hodges-Konys Present on DOL Audit Readiness for Health & Retirement Plans Paul Carl, Vice President—Retirement Services at HORAN, and Shelly Hodges-Konys, Director of Compliance at HORAN, presented on Department of Labor (DOL) Audit Readiness for Health & Retirement Plans to an audience of attorneys, CPAs and Human Resources executives. The HORAN seminar—entitled “Are You Department of Labor Audit Ready?”—was held on Thursday, October 22, in Cincinnati and on Thursday, November 12, in Dayton. Attendees received CPE, CLE and Human Resources continuing education credits.
Shelly Hodges-Konys, Director of Compliance at HORAN, presents at Department of Labor Audit seminar.
The U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) reported that 65% of closed civil investigations were “closed with results” in fiscal year 2014. With investigations on the rise and uncertainty surrounding new proposed regulations, it is becoming more important than ever for employers to be prepared for an audit. The speakers provided an update on reporting obligations and responsibilities, associated audit risks for health and welfare plans as well as retirement plan offerings.
HORAN Wealth Investment Committee Provides Clients with Insights into Portfolio Construction and Investment Selection HORAN Wealth hosted an open house exclusively for clients on Wednesday, October 14, 2015, at its Corporate Headquarters in Cincinnati. The program featured the HORAN Wealth Investment Committee and explained its role in portfolio construction. The committee provided insights on how it selects investments to align with each client’s goals and objectives. The seminar also included an overview of the markets and reviewed the Investment Committee process.
(Standing) Tim Powell, AIF, CFP®, Vice President at HORAN, presents at Investment Insights seminar.
Members of the Investment Committee also highlighted additional resources available to HORAN clients including financial planning, frequent communication pieces and newsletters as well as Social Security planning. If you were not able to attend this event but would like more information about any of the seminar topics, please contact your HORAN Wealth advisor or call 513.745.0707.
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HORAN Capital Advisors’ Approach to Institutional Asset Management Todd Poellein, CFA Senior Portfolio Manager Todd Poellein is responsible for meeting the investment and planning needs of HORAN Capital Advisors’ respective clientele. He has extensive experience in individual and institutional investment management. Todd’s experience with families, defined benefit plans, foundations and endowments complements HCA’s portfolio management team.
When evaluating the investment management industry, many separate the approach between institutional investors and individual investors. Differences may include time horizon, tax status, cash-flow needs, regulatory oversight
There are many similarities in the process for institutional and individual investment accounts. Our approach to institutional investment management is grounded in a defined, repeatable process. and the ability to add principal. Institutional investment portfolios typically have (but not always) a long-term time horizon often spanning multiple generations. For individuals, their life expectancy is generally the end point, although creating a legacy for future generations can also be a goal. Both institutional and individual portfolios desire cash flow for a specific purpose. Individuals seek to fund lifestyle goals and tend to have more tax sensitivity. Institutions often have specific liabilities to fund such as pension payments or a desired spending rate. Individuals generally oversee their own affairs while hiring an investment advisor to make recommendations and implement an investment strategy. Institutions generally have investment committees that assist in overseeing investment managers. The committee members provide governance, embrace fiduciary responsibility and act in a prudent manner. There are many similarities in the process for institutional and individual investment accounts. Our approach to institutional investment management is grounded in a defined, repeatable process.
STEP 1: Assess the Organization—The first step is to understand the organization’s goals and needs. We review, and potentially amend, Investment Policy Statements (IPS) in order to clearly define the objectives and responsibilities of the investment assets we oversee. STEP 2 AND STEP 3: Identify Spending Rate/Liabilities & Align with Long-Term Expected Market Returns—A well-constructed IPS identifies the target rate of return for the investment assets. This return is a function of the spending needs of the organization and guides us in constructing the portfolio allocation with investments that will meet the expected return. STEP 4: Select Strategic & Tactical Investment Allocations—Building the investment portfolio may require both long-term and short-term allocation strategies. The strategic allocation sets long-term targets for differing asset classes (equities, fixed income, alternatives) based on the expected return of certain asset classes. A tactical allocation incorporates ranges around those asset classes and enables investment managers to take advantage of shortterm factors based on existing economic and market conditions. STEP 5: Create Investment Diversification—Diversification is a process investors use to spread risk. Investments have different return prospects and different risk characteristics. Diversifying the portfolio not only balances levels of risk but also provides different return streams and uncorrelated investment returns. Curbing volatility through specific investments or strategies can lead to better compounded returns. STEP 6: Monitor and Report to Committee—While working with our clients, we believe it is important to meet with investment committees on a regular basis. This enables us to report results and detail changes in the investment landscape that may impact the portfolio. Additionally, committee meetings include a review of the IPS and current liability stream of the organization. We invest in technology that enables us to report account performance on a daily basis. Our technology allows online client access to review asset allocations, investment transactions and risk characteristics of the investment portfolio. This enhancement is custodian agnostic, allowing us to coordinate investment reporting with nearly any preferred custodian. We recognize the importance of the institutional investment accounts we serve and work collectively with organizations to build customized portfolios that address the institutions’ needs. We also coordinate with investment committees to properly outline the IPS, spending rate and target portfolio allocations.
The following steps illustrate the process we use to manage institutional client assets.
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community Brighton Center Recognizes HORAN with the Liz Herald Community Support Award HORAN received the 2015 Liz Herald Community Support Award at Brighton Center’s annual dinner. Brighton Center created this award to recognize an individual, business or organization for its efforts in partnering or collaborating with Brighton Center for the good of the agency and community. Liz Herald was an active volunteer for Brighton Center, providing more than 1,500 hours a year in support of its mission to create opportunities for individuals and families to reach self-sufficiency. The annual dinner took place on September 29, 2015, at The Marquise Banquet and Conference Center. HORAN employees receive the Liz Herald Community Support award from Tammy Weidinger, President & CEO of Brighton Center. Pictured (left to right): Rachele Wolf-Thomas, Mike Stephens, Karl Diebold, Chris Cook, Paul Carl, Michael Napier, Dan Cahill and Tammy Weidinger.
Diana Small, SPHR Vice President of Human Resources WE LEAD, Cincinnati Chamber of Commerce
Brandon Christin Health Management Director LEAD Clermont, Clermont Chamber of Commerce
Dan Cahill, PhD Vice President & Kentucky Market Leader Presented at the 34th Annual International Society of Certified Employee Benefits Specialists Conference
If you are interested in learning more about Brighton Center and how you can become involved, visit www.brightoncenter.com.
Boonshoft Museum of Discovery Hosts Annual Boonshoft Bash HORAN was proud to sponsor our valued client, Boonshoft Museum of Discovery, and their 2015 Boonshoft Bash, which was held on Saturday, September 12. The event supports the Museum’s ongoing math and science education initiatives. The Boonshoft Museum of Discovery, located in Dayton, Ohio, provides the region with interactive science learning experiences. Its mission is to enhance the lives of adults and children and promote a broad understanding of the world. The Dayton Museum of Natural History was founded in 1893. The name of the Museum was changed in 1999 to honor Oscar Boonshoft, one of the Museum’s most dedicated friends. The Museum consists of a zoo, aquarium, planetarium and science center, and also includes an astronomical observatory. To learn more information about the Boonshoft Museum of Discovery visit www.boonshoftmuseum.org.
Scott Silver Health Management Director Led a Workshop at the 10th Annual Ohio Employee Health and Wellness Conference
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Kurt Krebs Named CFO of the Year Finalist Kurt Krebs, Chief Financial Officer at HORAN, was selected as a finalist for the Cincinnati Business Courier C-Suite awards in the Chief Financial Officer category. The C-Suite Awards recognize the top executives at leading Tri-State companies and nonprofit organizations whose skills and leadership have helped shape success for their companies. Kurt Krebs, Chief Financial Officer at HORAN
The award ceremony took place on August 27, 2015, at Cincinnati Music Hall.
“It was a true honor to be recognized among such an accomplished group of executives,” said Krebs. A total of 37 finalists were named in five categories. The categories were chief executive officer, chief financial officer, chief operating officer, chief marketing officer and chief legal officer. The 2015 CFO of the Year award winners were Benjamin Mulling, CFO at Tente Casters Inc., and Gary Visher, CFO at Hightowers Petroleum Company.
Dominic Franchini Selected as Honoree of Cincinnati Business Courier Forty Under 40 Award Dominic Franchini, Vice President & Cincinnati Market Leader, was chosen as an honoree of the Cincinnati Business Courier 2015 Forty Under 40 Award. The award has been given annually to young professionals since 1995, recognizing individuals for their accomplishments in shaping the community’s future.
Dominic Franchini, Vice President and Cincinnati Market Leader at HORAN
The award emphasizes leadership and potential leadership as well as encompasses the work conducted in all areas of the community including business, politics, the arts, nonprofits, education, health care or public service. Community involvement is a key factor taken into consideration when selecting the award winners.
Corporate social responsibility is a core value at HORAN. Dominic embraces that value and finds opportunities to leverage his professional skills for worthy causes. The award ceremony to honor this year’s class took place on Tuesday, September 22, 2015, at Cincinnati Music Hall.
HORAN Named One of America’s Healthiest Workplaces HORAN was named one of the 2015 Healthiest 100 Workplaces in America. The award recognizes employers that demonstrate strategic thought leadership and help define the course of corporate wellness. Healthiest Employers™, a leading researcher in corporate health, recognized HORAN as the 90th healthiest workplace in the country. HORAN was one of only eight companies with fewer than 100 employees on its health plan to be awarded. The top 35% of all employers who participated in their local Healthiest Employers wellness assessment were asked to complete a Healthiest 100 evaluation, which primarily focused on wellness outcomes. Healthiest Employers assessed more than 800 finalists on six wellness-related criteria: culture and leadership commitment, foundational components, strategic planning, communications and marketing, programming and interventions and reporting and analysis. The results produced the Healthiest 100 list. Healthiest Employers announced the 2015 Healthiest 100 honorees at the Employer Healthcare & Benefits Congress, which took place from September 28 to 30 in Orlando, Florida. More than one-third of the 2015 Healthiest 100 represent the Midwest region and 76% of the winners have more than 500 employees on the health plan. HORAN’s wellness program was established seven years ago and the organization is proud of its tremendous success. The company was recognized as a Cincinnati Healthiest Employer (2012, 2013 and 2014), a Dayton Healthiest Employer (2014 and 2015) and a Healthy Ohio Healthy Worksite honoree (2014). 2015 WINNER
scored by springbuk® analytics
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client feature
HWL • CLIENT FEATURE
WELLNESS WORKS
WARREN COUNTY’S DECADE OF WELLNESS SUCCESS COUNTY SEAT Lebanon, Ohio KEY PERSONNEL David Young Tom Grossmann Pat South Warren County Commissioners Dave Gully County Administrator Tiffany Zindel Deputy County Administrator Tammy Whitaker Benefits Officer INDUSTRY County Government INSURANCE-ELIGIBLE EMPLOYEES
954 YEAR FOUNDED 1803 WELLNESS PROGRAM ESTABLISHED IN 2006 POPULATION AS OF 2010 CENSUS 212,693
health. wealth. life.
Warren County began its wellness journey in 2006 after seeing increased health care costs for a few years in a row. The program was established to address preventable illness while utilizing benefits that were already a part of the health plan. There was just one challenge. How do you start a wellness plan with a budget of zero?
Whitaker credits this to employees being able to see what their numbers show year after year. In addition, Warren County offers a day-off-work incentive for participating. Commissioner David Young named the incentive for this program “Day For Your Life.” The implementation of biometric screenings and health risk assessments was just a start. Warren County decided to create a program that would focus on wellness from a holistic perspective. The Warren County
“We didn’t want the county to create a line item in the budget and we didn’t want the program to create an expense for our employees either,” said Tammy “Our employees are our most valuable asset. The goal of Whitaker, our wellness program is to continue to offer ways to tackle Benefits Officer preventable illness and encourage a better quality of life. at Warren We’ve always had the mindset that it’s the right thing to do.” County. “I asked myself, —Tammy Whitaker, Benefits Officer at Warren County ‘What can we accomplish with a budget of zero?’” POINTS Program was launched in 2011. POINTS stands for “Promoting Options IMPLEMENTING PROGRAMS WITH A that Indicate a Number of ways to Stay PARTICIPATION INCENTIVE healthy.” There are several components of Warren County’s wellness program began the program, consisting of focus areas such in 2006 with the introduction of biometric as health screenings, nutrition, exercise, screenings and health risk assessments, mental health, etc. which were conducted by Interactive Health. This screening is offered at various Participating employees have one year to county buildings in early January of each earn 250 POINTS. They are able to select year. the activities in which they would like to participate. Employees who earn 250 Whitaker says this is something employees POINTS or higher receive a day-off-work look forward to every year. Currently, 75% incentive, which is appropriately named “A of Warren County employees participate in Day for Wellness.” Last year 135 employees the annual screening. qualified for the incentive.
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A CONTINUOUS EFFORT TO KEEP THE PROGRAM FRESH Warren County refreshes the POINTS program on an annual basis in order to keep employees engaged. “We want to continue to build this program,” said Whitaker. “We have a significant amount of POINTS allocated towards driving healthier outcomes and meeting wellness goals” (e.g. tobacco cessation and improving biometric numbers). Warren County finds ways to creatively add new components to the wellness program year after year to keep employees involved. Currently, the county offers an annual benefits fair, flu shot clinics, a mobile mammography van, employee assistance program (EAP) and a yearly Amazing Race Contest. “What we do impacts our community,” said Whitaker. “We have the support of area businesses and other public entities that hear about what we are doing and our success.” One of the challenges Warren County faces is developing additional ways to incentivize employees. “We are limited on ways we can positively incent,” said Whitaker. Whitaker is thankful for the assistance and support of Warren County’s partners. “HORAN and UnitedHealthcare help us come up with new ideas for the program and measure outcomes and return on investment using data analysis,” said Whitaker. “We appreciate HORAN’s webinar and seminar offerings. They help us stay
Pictured: Tammy Whitaker, Benefits Officer at Warren County.
compliant and keep us up-to-date on industry trends.”
STAYING ON TRACK FOR FUTURE WELLNESS SUCCESS
is to continue to offer ways to tackle preventable illness and encourage a better quality of life. We’ve always had the mindset that it’s the right thing to do,” said Whitaker.
Warren County plans to continue to evaluate its wellness program year after year. The county plans to keep the program fresh, keep participation high and stay in tune with wellness trends. “Our employees are our most valuable asset. The goal of our wellness program
Brandon Christin, Health Management Director at HORAN, works directly with clients like Warren County to create customized wellness plans built around their specific organizational and employee needs. Brandon utilizes the HORAN Health Management Way to provide a focused, strategic approach to help clients manage and improve their employees’ health to positively control the cost of health care. Utilizing his 13 years of experience in the health and fitness industry, Brandon engages in wellness research and analysis and leads HORAN’s Health Management education for clients.
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HWL • CLIENT FEATURE
Market Spotlight: Dayton
Vision, Innovation & a Lasting Legacy Dayton Carries on the Innovative Spirit of the Wright Brothers [PAST] Taking Flight
Orville Wright said of his and brother Wilbur’s childhood, “We were lucky enough to grow up in an environment where there was always much encouragement to children to pursue intellectual interests; to investigate whatever aroused curiosity.” In 1903, the Wright brothers took youthful enthusiasm and turned man-made flight into a reality with the invention of the airplane. The brothers built their first airplanes in their bicycle shop in Dayton, Ohio. They traveled to Kitty Hawk, North Carolina, for extensive testing because of its remote location, breezes and sandy surfaces for softer landings. After their success in Kitty Hawk, the Wright brothers returned to Dayton to begin more flight
Exterior views of the Aviation Trail Visitor Center and Museum, which is a part of the Wright Cycle Company Complex and the Wright-Dunbar Interpretive Center in the Dayton Aviation Heritage National Historical Park. National Aviation Heritage Alliance (NAHA) photo by Timothy R. Gaffney.
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testing at Huffman Prairie and airplane production at The Wright Company Factory site located on West Third Street at Abbey Avenue.
manufacturing capacity,” said Gaffney. “The army established its aeronautical research division here, which has grown to become Wright-Patterson Air Force Base.”
Timothy R. Gaffney, author of The Dayton Flight Factory, says of the duo, “The Wright brothers weren’t just clever tinkerers. They didn’t have the college credentials, but they were true scientists and engineers. They really blazed the trail for modern engineering and the design of airplanes.”
Wright-Patterson Air Force Base currently employs approximately 26,000 people, making it the largest single-site employer in Ohio.
The Wright brothers’ innovative spirit transformed Dayton into a hub of creativity and manufacturing. “This city was an important place when World War I broke out because of the Wright brothers’ research and development and others like them as well as Dayton’s
View of restored Wright Cycle Co. shop at 22 S. Williams, NAHA office at 26 S. Williams and NPS offices at 30 S. Williams. Photo by Timothy R. Gaffney.
[PRESENT] A Hub of Innovation
The City of Dayton is carrying on the legacy of the Wright Brothers with its involvement with the Science, Technology, Engineering and Math (STEM) initiative, a national effort to educate young people and improve competitiveness in science and technology development in order to succeed in a global market. STEM students have a multitude of
Orville Wright designed Hawthorn Hill with help from his brother Wilbur. Orville, his father Milton and his sister Katharine lived there together. Milton lived there the rest of his days. Katharine eventually moved out to be married, and Orville lived there the rest of his life. The house is owned and operated by Dayton History. Photo provided by Dayton History.
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learning opportunities throughout the city and can walk in the Wright brothers’ footsteps while learning about math, science and engineering. “What’s so interesting about Dayton is that you can see the story of the Wright brothers from Orville’s birthplace in west Dayton to the bicycle shop they owned as well as see the original 1905 Wright B Flyer at Carillon Park and visit Huffman Prairie where they flew the airplane,” said Gaffney.
[FUTURE] Forward Thinking
Dayton continues to impact innovation on both the regional and national levels. According to the Dayton Development Coalition, the Dayton area is investing in Unmanned Aerial Systems (commonly known as drones). The established infrastructure for the aerospace industry makes this a natural fit for current and future development.
A Visitor’s Guide to the National Aviation Heritage Area Visit www.aviationheritagearea.org/area-sites/ to view all of the Heritage Area sites.
A. National Museum of the United States Air Force—The oldest and largest military aviation museum in the world located at the Wright-Patterson Air Force Base. B. Dayton Aviation Heritage National Historical Park—This site includes the Wright Dunbar Visitor Center and the Wright Cycle Co. C. Huffman Prairie Flying Field—The Wright brothers continued their flight study and testing here after their success in Kitty Hawk, North Carolina. D. Woodland Cemetery & Arboretum—The grave site of the Wright brothers and the rest of the Wright family. This garden cemetery also has a great view of the Miami Valley area.
E. Wright “B” Flyer Inc.—This nonprofit organization flies a look-a-like model of the Wright Model B Flyer. F. Hawthorn Hill—Wright family mansion in Oakwood. Orville was born in the family home at 7 Hawthorn in Dayton. He built Hawthorn Hill in Oakwood, occupied it in 1914 and lived out his life there. G. Wright Flyer III and Carillon Historical Park—Carillon Historical Park houses the original 1905 Wright Flyer III. H. Wright Company Factory Site—This is the location of the Wright brothers’ airplane factory. It is currently closed to the public, but there are plans to restore the factory and open it to the public for science, technology, engineering and STEM education activities.
The Dayton Development Coalition along with Wright-Patterson Air Force Base, Wright State University, Clark State Community College, Sinclair Community College and the National UAS Training Certification Center provides access to funding, workforce, research institutions and federal facilities. “Dayton has a rich history and an innovative spirit that still resides in the region,” said Maurice McDonald, Executive Vice President of Aerospace and Defense at the Dayton Development Coalition. “Wright-Patterson Air Force Base, regional universities, state colleges and other local institutions are working together to not only produce the workforce for the Unmanned Aerial Systems industry but also develop innovative ways to utilize these systems in the future. All of this puts Dayton in a very good position for growth in this industry in the future.”
Check out the following books to learn more about the Wright brothers & the City of Dayton: • • •
The Dayton Flight Factory by Timothy R. Gaffney The Bishop’s Boys: A Life of Wilbur and Orville Wright by Tom D. Crouch The Wright Brothers by David McCullough
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