Summer 2013
health. wealth. life.
PRESERVE YOUR LIFE INSURANCE COVERAGE | 10 |
A Commitment to Ethics Through Education | 8 |
Top Questions about Health Care Reform - Answered In Pursuit of What Matters Most.
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Summer 2013 C O N T ENT S
EDUCATION CALENDAR* August 28
PAGE 3 – A Letter from Terry Horan, President & CEO
Small Business Roundtable
PAGE 4 & 5 – Top Questions about Health Care Reform - Answered
September 12
PAGE 6 – Healthy Habits – Fresh Foods for Fitness PAGE 7 – HORAN and Client Featured in HR Executive Magazine PAGE 8 & 9 – A Commitment to Ethics Through Education PAGE 10 & 11 – Preserve Your Life Insurance Coverage
Life Insurance Seminar
November 12 Small Business Roundtable
November 14 Life Insurance Seminar
PAGE 12 – HORAN Supports Regional Universities’ Scholarships PAGE 13 – HORAN Wins Healthiest Employer Second Year in a Row
*Seminars scheduled as of July 8, 2013
PAGES 14 & 15 – Client Spotlight: Intelligrated, Inc.
Please join us in welcoming our new corporate clients! - dunnhumby USA - Clermont County Public Library - Day Air Credit Union - GEMCITY Engineering and Manufacturing - Victoria Theatre Association - Grote Enterprises, LLC - Center for Local Government - Hire Counsel Cover: The bell on the cover of this issue’s magazine is proudly displayed in the lobby of the HORAN Corporate Headquarters. It is a symbol of celebration and success for the firm. We believe it represents our culture of celebrating together all of the contributions each associate makes to the organization every day and why we are one of the Best Places to Work.
health. wealth. life.
Look for us online! Go to horanassoc.com and click on Education to find out more about upcoming educational opportunities as additional seminars will be scheduled throughout the year. Also, visit our Newsroom to view the online version of health.wealth.life.
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A letter from Terry Horan
In Pursuit of What Matters Most. Whether you are sitting behind your desk hard at work or reading our magazine on a well-deserved vacation, I hope the summer issue of health.wealth.life. finds you well. At HORAN we are celebrating. We are celebrating the summer season and beautiful weather. We are celebrating our continued growth and new additions at HORAN, having added six new associates since the spring. And we are celebrating our award from the Cincinnati Business Courier, winning Healthiest Employer in Greater Cincinnati in our employee-size category for the second year in a row. Celebrating brings us together at HORAN. We have a program called “Celebrate Great” in which employees nominate their fellow co-workers for everyday excellence. The program celebrates sales, anniversaries, tough renewals, awards, licensing, accomplishments in the community and recognizing the everyday accomplishments of employees that go above and beyond the call of duty. Taking the time to do this each month helps us recognize that HORAN’s successes are dependent upon everyone who walks through our front door each morning. Many of the articles in this issue of health.wealth.life. are a cause to celebrate. In health, we celebrate eating fresh foods from homegrown gardens and regional farmers’ markets as well as our client Fecon’s creative approach to health management and the successful launch of their wellness plan. In wealth, we celebrate our coverage in a recent article in HR Executive magazine about retirement plan consulting and benchmarking analysis, featuring our client Dinsmore. We also celebrate our wealth management team’s depth of knowledge and expertise as they provide HORAN clients with an additional level of security by keeping pace with the highest standard of ethics in the industry. In life, HORAN highlights our ability to help clients evaluate their life insurance coverage to ensure optimal protection. HORAN also celebrates our client Intelligrated Inc.’s successes and our partnership with them for eight years as they are featured in this issue’s client spotlight. Most importantly we celebrate you—our clients and friends. Yours in pursuit of what matters most,
Terence L. Horan, CLU, ChFC President & CEO of HORAN TerryH@horanassoc.com
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health TOP QUESTIONS ABOUT HEALTH CARE REFORM HORAN hosted a series of Health Care Reform seminars from March to June 2013. The seminars covered a broad range of topics including health insurance exchanges, the pay-or-play mandate, the benefits of self-funding, taxes and fees and the timeline for the new regulations. During our seminars, we asked our audience to write down all of their questions regarding health care reform. The following page is a selection of questions we received and our answers to help guide you through the challenges of health care reform.
health. wealth. life.
PRIMARY CARE High Deductable Health Plan
Third Party Payer
Community Rating
Open Enrollment Period CLAIM APPEALS
Public Health
HMO
Single payer
RENEWAL
Value-Based Purchasing
Open Benefits Enrollment Period Cost effective
Employer Mandate
Guaranteed Issue
Summary
Patient Bill of Rights
SUMMARY OF BENEFITS
Exclusions
Gatekeeper
FLEXIBLE SPENDING ACCOUNTS
Disability
EPO
HIPPA
PPO Medicare
ELECTIVE CARE
Grandfathered
Exchange
PPACA Pay-or-Play C0-pays
COBRA
Review Procedures
Health Care Reform Plan year
>
SelfInsured Plan
HEALTH SAVINGS ACOUNTS
HEALTH CARE SAVINGS Regulation >
Qualified Health Plan
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Q: What are the advantages and disadvantages of having a non–calendar year plan under PPACA?
A: As a small employer (less than 50 employees), having a non–calendar year plan delays community rating and cost-sharing limits until your first renewal on or after January 1, 2014. As a large employer (50 or more employees), having a non–calendar year plan delays compliance with the pay-or-play mandate if you qualify for transitional relief. In order to qualify for transitional relief on the $3,000 penalty, you must have offered a plan to all full-time employees as of December 27, 2012, and offer quality affordable coverage to all employees working 30 or more hours per week no later than the start of your first plan year after January 1, 2014. To qualify for transitional relief on the $2,000 penalty for failure to offer coverage, 25
is affected by employee contributions for health insurance?
coverage in 2014?
A: Health insurance coverage is considered
employer may drop coverage without penalty.
A: If the company is a small employer, the
affordable if employee contributions to coverage do not exceed 9.5 percent of an employees’
However, they must consider the business implications of lost tax deductions, employee
adjusted household income. There are three safe harbors employers may use to protect themselves
morale, recruitment and retention. If the employer is an applicable large employer,
from penalties since they cannot know an employee’s household income. Employers may
there will be a penalty of $2,000 per full-time employee (an employee who works at least 30
use the following: (1) 9.5 percent of W-2 wages, (2) 9.5 percent of salary at the beginning of the
hours per week) in addition to the business implications of lost tax deductions, employee
year, or (3) 9.5 percent of the federal poverty level. Again, only applicable large employers
morale, recruitment and retention.
(those with 50 or more full-time-equivalent
Q: Do I need to offer coverage to student
employees) must offer coverage that meets
workers or interns who are not paid?
affordability standards to avoid penalties under the pay-or-play mandate.
A: Employers are not required to offer coverage to student workers or interns who do not receive
Q: With regard to affordability, do all three
compensation or wages filed on form W-2. If
A: Applicable large employers may choose
student workers or interns receive compensation reported on form W-2, they must be offered coverage if they work 30 or more hours per
one of three safe harbor methods to apply in
week. It is unlikely that students would enroll
at least one day between October 31, 2012, and
determining affordability for their employees.
December 27, 2012. Transitional relief is not perfect. Large employers may still be exposed to
Q: How do you determine if a plan meets
in employer coverage since they are able to continue coverage on their parents’ plan up to
percent of your entire workforce must have been enrolled in coverage or one-third of your entire workforce must have been offered coverage on
affordability penalties on any employees who are currently excluded from coverage.
Q: With a non–calendar year renewal, do we
safe harbor methods apply or only one?
minimum value, including a high-deductible
age 26.
health plan?
Q: Do we need to count hours for employees
A: Applicable large employers may use one of
who are on call even if they are not working?
three methods to determine whether or not
A: If the employee receives call pay simply for
have to offer an open enrollment in January
their health plans meet the 60 percent minimum
being on call, those hours must be counted. If
when the exchanges open?
actuarial value. The first is the actuarial value calculator developed by the Department of
the employee is only compensated if he or she reports to work, only the hours the employee is
Health and Human Services (HHS), available on their website. The second is safe harbor determination—HHS has proposed three safe
working must be counted.
A: You do not need to offer a full open enrollment. You may amend your Section 125 plan to recognize enrollment in exchange coverage as a qualifying event.
Q: Are the pay-or-play penalties annual penalties or monthly penalties?
A: The pay-or-play penalties are assessed on a monthly basis but reported and paid to the Internal Revenue Service (IRS) on an annual basis. Remember, pay-or-play penalties only apply to applicable large employers (those with 50 or more full-time-equivalent employees).
Q: Can you clarify affordability and how it
harbor plan designs for ease of determination. Last, employers whose plan designs do not fit the actuarial value calculator or safe harbor method may engage an independent licensed actuary to determine the value of their plans. Small employers, while they do not need to meet
Q: What additional training on health care reform is available?
A: Please visit the health care reform section of our website, horanassoc.com, to learn more about health care reform and look for our compliance alerts as updates on health care
minimum value, must offer a plan that offers minimum essential benefits and complies with
reform legislation continue to surface. HORAN representatives are available at any time to
cost-sharing limits and benefit provisions.
answer your health care reform questions at 513.745.0707.
Q: What if a company chooses not to offer
The above questions are answered based on interpretation of current regulation and guidance and can change as legislation evolves. The above is provided for informational purposes only and is not intended as, nor should it be construed as, legal or accounting advice. Please consult your counsel for a definitive interpretation of current statute and regulation and their impact on you and your organization.
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health
Healthy Habits Area Fresh Farmers’ Markets 1 Montgomery Farmers’ Market
Location: Montgomery, Ohio 9609 Montgomery Road (Montgomery Elementary School Parking Lot) Montgomery, OH 45242 When: Saturdays (May–October) from 9:00 a.m. to 12:30 p.m.
2 2nd Street Market
Location: Dayton, Ohio 600 E 2nd Street, Dayton, Ohio 45402 When: Thursdays and Fridays from 11:00 a.m. to 3:00 p.m.; Saturdays from 8:00 a.m. to 3:00 p.m. (closed on the Fourth of July, Thanksgiving, Christmas, and New Year’s Day)
Deerfield Farmers’ Market 3 Location: Mason, Ohio 4188 Irwin Simpson Road (Kingswood Park), Mason, OH 45140 When: Saturdays (May–October) from 9:00 a.m. to noon
4 Hyde Park Farmers’ Market
Location: Cincinnati, Ohio 3424 Edwards Road (Hyde Park Square), Cincinnati, OH 45208 When: Sundays (June–September) from 9:30 a.m. to 1:30 p.m.
Fresh Foods for Fitness It’s farmers’ market season. The growth and popularity of local farmers’ markets provide great options for healthy eating. People worldwide are rediscovering the health benefits of buying local produce. The regional metro areas enjoy a diverse offering of markets that provide locally grown fresh produce, outdoor vendors and entertainment. Take advantage of these markets to purchase fresher, flavorful and more nutritious foods while supporting your local community. Eating fresh produce has been shown to reduce the risk of cancer and heart attack.* In addition, fresh produce that is organic or sold locally is less likely to contain additives to extend shelf life. The combination of good nutrition and regular exercise is the foundation of a healthy lifestyle. Businesses are recognizing the benefits of eating fresh. Fecon, Inc., a HORAN client since 2009, wanted to create an employee garden on their expansive company grounds. In doing so they have taken their wellness initiative to new heights, literally. Raised beds growing fresh produce replaced landscaping as employees grow tomatoes, zucchini, onions, beans and radishes. Fecon worked with their wellness consultant to build the garden. They will use the produce they grow to conduct future cooking demonstrations to promote healthy recipes and diet choices. Fecon believes the garden helps to teach employees about nutrition, relieves stress and provides a fun source for exercise. Visit horanassoc.com to view a case study and read about the other steps Fecon has taken towards wellness and helping their employees create healthier lifestyles and eating habits. To see what fresh produce is available in your area and get great recipes, visit fresheverydayproduce.com. Remember, the greatest wealth is health!
Location: Burlington, KY 6028 Camp Ernst Road, Burlington, KY 41005 When: Daily from 10:00 a.m. to 5:00 p.m. (May–October); Summer hours (Memorial Day through Labor Day)—Daily from 9:00 a.m. to 6:00 p.m.; Market reopens the day after Thanksgiving 10 a.m. to 8 p.m. daily (weather permitting)
6 Downtown Troy Farmers’ Market
Location: Troy, Ohio South Cherry Street, Troy, OH 45373 When: Saturdays (June–September) from 9:00 a.m. to noon
Carol King, RN, MSN, MBA, NEA-BC, FACHE Health Management Leader 513.745.0707 CarolK@horanassoc.com
*May 1998 issue of the medical journal Epidemiology and the September 1996 issue of the British Medical Journal.
health. wealth. life.
Photo contributed by Fecon employee Josh Searcy.
5 Boone County Farmers’ Market
Fecon’s company garden is part of their wellness initiative to engage employees in fun exercise and teach healthy eating habits.
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wealth HORAN’s David Lohre, AIF®, Vice President and Investment & Retirement Plan Consultant, was interviewed by Carol Patton for an article on corporate retirement planning. David spoke on the importance of benchmarking by recordkeepers to assess their organization’s 401(k) administration fees. The article appeared in the April 2013 edition of HR Executive magazine, and also featured HORAN client Dinsmore and their experience working with the HORAN Corporate Retirement Plan Consultant team. Below is an excerpt of the published article.
The excerpt on this page is from the article “The Money Detectives”, which appeared in the April 2013 edition of HR Executive magazine, published with the permission of the author and the magazine.
<< Several years ago, Dinsmore law firm
approached the record keeper of its retirement plan in hopes of reducing the administration fees associated with its 401(k). But the law firm was “rebuffed,” recalls Ben Wells, a partner at the firm, which has approximately 1,000 employees in Ohio, Kentucky, Pennsylvania, West Virginia and Washington D.C. “[The record keeper] said, ‘Your plan is not as profitable as it used to be because you have a lot of people in self-directed accounts and you’ve had some [people with] large accounts take out distributions, so we really can’t work with you very much,’ “ says Wells, who chairs the firm’s fringe-benefits committee and works side-by-side with HR regarding retirement issues.
But what, exactly, is “reasonable”? Because the DOL offers no definition, some companies are benchmarking or comparing fees of various record keepers so they’ll have more bargaining power when negotiating for a better deal. The process, however, can be grueling, especially for HR professionals who may lack the necessary knowledge or technical expertise about retirement plans. Not everyone can go toe-to-toe with record keepers when trying to get the best deal. In some cases, companies are partnering with insurance brokerages or consulting firms, ensuring that record keepers sharpen their pencils and offer competitive or reasonable fees. In 2011, Dinsmore partnered with Cincinnati-based HORAN, an employeebenefits consultancy, to conduct a benchmarking study of its fees. Wells says the last time it analyzed fees was roughly a decade ago via a request-forproposal process. “When they broke out the record-keeping fees, they didn’t seem unreasonable,”
says Wells. “But there was a lot of cushion between that amount and the income that was being generated from the plan. Once we had the information and were all dealing from the same knowledge base, [our record keeper] was pretty willing to work with us and made it clear that it wanted to keep our business.” Wells and HR worked as a team, he says, explaining that they were both intimately involved in the entire benchmarking and negotiation process. He says HORAN initially contacted about a dozen record keepers, then narrowed down the benchmarking list to roughly six providers. Although the process went smoothly, he says, he was surprised there were such large opportunities for savings. A good example was the availability of different fund classes with lower expense ratios. Every fund has an expense ratio, Wells says, adding that participants in most large plans can invest in funds with lower expense ratios. The company’s current record keeper helped the company invest in such funds, something it never offered in the past. “They had to present the best arrangement because they were competing with other providers,” says Wells. During negotiations, he says, his firm would sometimes play the “good cop role” while HORAN served as the bad cop, enabling the law firm to maintain the positive relationship it had with its current record keeper while scrutinizing fees.
<<
How times have changed. Dinsmore has since slashed its fees by roughly six figures each year, partly due to 2012 Department of Labor regulations (408(b)(2) and 404(a)( 5)), requiring plan sponsors and record keepers of 401(k) plans to fully disclose plan fees to participants. The regulations are intended to create transparency of plan fees and enhance awareness among plan sponsors and participants of those fees, and ensure those fees are “reasonable” across the board. To comply with the federal rule, companies such as Dinsmore started benchmarking their fees to ensure they’re competitive, forcing some record keepers to dramatically cut their fees or risk losing their business.
David Lohre, AIF® Vice President 513.745.0707 DavidL@horanwealth.com
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STORY F E ATURE
wealth A TOPIC FOR CONVERSATION A Commitment to Ethics Through Education
At HORAN, corporate conduct is inseparable from the conduct of individual employees in the performance of their work. Every HORAN employee is responsible for adhering to business practices that are in accordance with the letter and spirit of the applicable laws and with ethical principles that reflect the highest standards of corporate and individual behavior. Industry certifications have a direct correlation to serving our clients with the highest standard of ethics. Members of the HORAN Wealth Management team met for a discussion on ethics and industry certifications. The panel was comprised of Mark A. Bennett (MB), CFA®, Portfolio Manager & Principal, Joanna Hankey (JH), CFP®, REBC®, RHU®, Senior Account Executive and Investment & Retirement Plan Consultant, Michael D. Napier (MN), CFP®, Director of Financial Planning and Timothy G. Powell (TP), AIF®, CFP®, Vice President. The following is an excerpt of their roundtable discussion.
Q. What are your industry certifications?
(MB): I have a Chartered Financial Analyst (CFA®) designation, which is a globally recognized graduatelevel accreditation in the investment management business for investment analysts and portfolio managers. (JH): I am a Certified Financial Planner (CFP®) as well as a Registered Employee Benefit Consultant (REBC®) and Registered Health Underwriter (RHU®). The last two are from a benefits standpoint and I think that definitely sets me apart because when I’m speaking to an employee about his
or her retirement plan, I can put that into context of the employee’s entire benefits package. (MN): I am a CFP®, Accredited Tax Preparer (ATP®), Certified Mutual Fund Specialist (CMFS®), Chartered Retirement Plan Specialist (CRPS®), and have the National Social Security Advisor (NSSA®) designation. The NSSA® is my newest designation and I think is one that is helping many people with holistic planning, especially as more and more baby boomers are retiring. We can offer advice on Social Security planning at HORAN that they can’t find from many other resources. (TP): I am an Accredited Investment Fiduciary (AIF®) and a CFP®; I think the two really work hand in hand in the investment advising field. From an expertise standpoint, the AIF® designation sets guidelines to analyze investments, measure them against their peers, and put in proper procedures to implement. The job of the CFP® is to identify the deficits of a person’s plan and prescribe the solution.
Q. What is the value of
working with a credentialed wealth manager? (MB): People who pursue designations
health. wealth. life.
are people who want to stay abreast of the current environment and remain responsible as advisors. It shows that you are keeping pace with the highest standard of ethics. (TP): As a CFP® and CFA®, we could be sanctioned if we advise on a topic in which we have not demonstrated competency. If we are not competent in a certain area, we are ethically bound not to take that case.
Q. Are your certifications
required for your position? (MN): The certifications are not required for what we do, but they allow us to have the knowledge to help with comprehensive financial planning in areas such as social security, taxefficient strategies, retirement planning and college planning. As a HORAN professional, it is required to earn these designations and stay current with them. New hires are expected to continue to learn about the industry and get their designations and licensing. We view industry education as a continuous process at HORAN, and work hard to keep it at the forefront. (JH): We are also required to earn continuing education (CE) credits every year to maintain our designations. It
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HORAN Sponsors American College of Industry Ethics Luncheon HORAN was proud to sponsor the 2013 American College of Industry Ethics Luncheon on June 5, 2013.
Pictured (left to right): Timothy Powell, Joanna Hankey, Mark Bennett and Michael Napier.
shows that we didn’t just cram one time 10 years ago and forget about it; we’re making sure that we keep up on our education and constantly refresh ourselves on the material so we retain the information. Industry ethics is a large part of the continuing education.
Q. How do your credentials
and continuing education guide your thinking and approach to working with clients? (MB): The CFA® has a code of ethics and conduct that you have to sign every year, and people can be sanctioned if they do not follow it. There are stringent standards that you have to adhere to and that guide how you work and act as an advocate for your clients. (TP): The individuals we work with have different needs from an investment and financial planning standpoint. Having a process that we can go back to again and again assures that if we have an unusual circumstance, we don’t have to reinvent what we are doing—we can
go back to the foundation of what we have learned. Consistency helps provide excellence.
Q. Who or what has influenced
your personal ethical philosophy? (MN): Many of the men and women we work with are teachers and hospital workers with pensions. Once they make their decisions on their pension and social security, it’s permanent and they can’t turn back. The designations the HORAN team has in tax strategies, social security and retirement planning have helped us to be knowledgeable to help them make these decisions. (JH): The industry in general has influenced my ethical philosophy. I get satisfaction sitting down with employees one-on-one to educate them on retirement planning. My designations really helped me broaden my thinking and get a holistic perspective on everything I need to examine to provide best-in-class advice on retirement plans.
For more information on the benefits of working with a credentialed wealth manager please visit the HORAN website at horanassoc.com.
HORAN is a Founding Member of The American College Center for Ethics in Financial Services. This affiliation gives HORAN clients an additional level of security. It ensures they have access to objective and ethical professionals who are keeping pace with the highest standards in the industry. The American College Center for Ethics in Financial Services promotes ethical behavior by offering programs that go beyond the “rules” of market conduct to help executives and producers be more sensitive to ethical issues and think more critically about ethical solutions. The Center’s interactive continuing education courses, forums and workshops are committed to helping practitioners think critically and behave ethically, even in the absence of clear direction. The Center also serves as a resource for cutting-edge research and discussion of emerging ethical issues in the financial services industry. Because of its unbiased academic role, the Center can be objective in helping executives, producers and regulators deal with the ethical implications of public policy positions.
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life
Preserve YOUR LIFE
INSURANCE COVERAGE When life insurance annual statements and illustrations are mailed out to policy owners, they can have a way of getting lost in the nooks and crannies of filing cabinets without much analysis. If you havenâ&#x20AC;&#x2122;t reviewed your life insurance coverage in a while, it might be time for a life insurance assessment. Life insurance coverage has changed dramatically in the past 10 years. The low interest rate environment paired with a change in the cost of insurance has had a profound impact on life insurance coverage.
make profits from the spread between what they earn on their general account portfolios and what they credit as interest on insurance policies. Policy owners are impacted as low interest rates result in lower investment returns credited to policies over time. As the interest rates decline, dividend rates drop. In order to make a profit in the low interest rate environment, life insurance companies have had to increase the cost of insurance by almost 80 percent, which has decreased the rate of policy returns, providing only minimum guarantees.
Interest rates have been on the decline for almost 30 years and have reached a historic low point, and are likely to remain low in the coming years. The Federal Reserve announced that short-term rates would continue to remain very low through 2014 in an attempt to stimulate economic growth.
An assessment is necessary to see the impact of low interest rates on life insurance coverage. Modifications may have to be made in order to plan for lower investment returns to ensure the policy benefits you are expecting will be maintained.
Interest rates have a direct impact on life insurers and the products they issue and manage. Companies generally
Determining if your type of plan is still the correct policy for your situation is just as important as reviewing your
Life Insurance Policy Checklist The following is a list of five essential elements of your life insurance policy that should be reviewed during an assessment of your life insurance coverage. Ownership | Beneficiary | Cost of Insurance | Dividend/Interest Rate | Changes in Health
health. wealth. life.
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policyâ&#x20AC;&#x2122;s performance. As financial and life situations evolve, the type of policy you need for effective and efficient planning might change. There are certain life insurance product types that may provide additional yield. Evaluating if your product type is still the right choice for you is essential to capitalizing on your maximum rate of return. The economic issues also have affected long term care insurance. There are new life insurance products available that combine the benefits of long term care with life insurance coverage as hybrid long term care insurance. Many hybrid long term care policies also include a policy benefit rider for a return of premium, which allows the policy owner more financial independence. A fair, professional and independent assessment of your policy is necessary to determine the best steps for you and your familyâ&#x20AC;&#x2122;s future needs.
NOW IS THE TIME
Call your life insurance advisor for an assessment of your current coverage to ensure your life insurance policy is performing at the optimum level.
During the assessment, a life insurance professional will assess your current financial situation as well as any major life-altering changes that may have affected elements of your policy such as ownership, beneficiary(ies) and changes in health. While postponing purchasing or policy-altering decisions until more economic transparency has been provided may seem like an easy choice to make, it is crucial to assess your current policyâ&#x20AC;&#x2122;s performance now. Continually observing your coverage over time will allow you to have a sustainable policy that will meet the future financial needs of you and your family. Gregory Hoernschemeyer, CLU, Vice President, and Dan McDonald, CLU, Estate and Business Plan Consultant, can provide you with an independent assessment of your life insurance coverage. Please call 513.745.0707 to schedule an appointment with Greg or Dan or e-mail them at GregH@horanassoc.com or DanM@horanassoc.com, respectively.
Gregory L. Hoernschemeyer, CLU Vice President
Dan McDonald, CLU Estate and Business Planning Consultant
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commitment
Photo contributed by Wright State University’s Office of Communications and Marketing
HORAN Supports Wright State University Scholarships as Major Sponsor of 2013 ArtsGala
HORAN was proud to support our client Wright State University’s 2013 ArtsGala, which took place on April 6. The event, held at the Wright State Creative Arts Center, featured students showcasing their creative talents. In the 11 years the University has held the annual event, the ArtsGala has raised more than $1.5 million to support student scholarship funding for art, music, theater, dance and film studies.
Congratulations 2013 HORAN Scholarship Winners HORAN has named the winners of the 2013 HORAN scholarships. The Jack and Elaine Horan Scholarship at the University of Cincinnati awards $1,500 per student to three UC students, and the HORAN Free Throw Scholarship Fund at Xavier University awards $2,500 per student to three Xavier students. HORAN offers the scholarships to our clients and their families. The Jack and Elaine Horan Scholarship fund was created in 1998, and the HORAN Free Throw Scholarship Fund began in 2005. The University of Cincinnati and Xavier University choose the scholarship recipients based on academic merit and financial need. The following is a list of the 2013 HORAN scholarship winners. Jack and Elaine Horan Scholarship Winners - Brandon Elam, son of Sylvia Elam (Forest Hills School District) - Lauren Graves, daughter of Janice Graves (UC Health) - Jaime Yost, daughter of James Yost (Northwest Local Schools) HORAN Free Throw Scholarship Winners - Austin Backus, daughter of Amy Backus (UC Health) - Stephanie Bates, daughter of William Bates (Rumpke Waste) - Shelby Krimmer, daughter of Jennifer Krimmer (Dinsmore & Shohl)
health. wealth. life.
LIGHTING
THE WAY Terry Horan Awarded 2013 Beacon of Light Humanitarian Award Terry Horan, President & CEO of HORAN, received the 2013 Beacon of Light Humanitarian Award from Lighthouse Youth Services. The award is given to recognize individuals whose civic contributions make them role models in the Greater Cincinnati area. Those recognized have demonstrated leadership, service and community impact. Lighthouse held the Beacon of Light Humanitarian Awards Gala on May 11, 2013. Lighthouse has been honoring individuals in the community with the Beacon of Light award since 1995. The proceeds from the gala will benefit the Lighthouse Community School, a Cincinnati Public School–sponsored chartered school that supports students who come from challenging circumstances. HORAN has been a long-time supporter of the work Lighthouse Youth Services does for the community. The organization has been providing social services to children, youth and families in Southeastern Ohio since 1969. Lighthouse is nationally recognized as an innovator in services for families in crisis, homeless youth and young adults, youth learning to become self-sufficient and foster care for abused or neglected children. The other 2013 Beacon of Light winners are Herb Brown and Brynne Colletti.
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leadership
HORAN team members show their commitment to wellness during a recent bike trip.
HORAN Wins Healthiest Employer Award for Second Year in a Row HORAN won the Cincinnati Business Courier’s 2013 Healthiest Employers of Greater Cincinnati award in the 2–99 employees category. This is the second year in a row that HORAN has won their category. The HORAN wellness program was started in 2007 and currently has a 100 percent participation rate in at least one of the wellness program components. The program involves biometric testing, on-site wellness coaching and employee wellness challenges. “I believe the employees of HORAN are the most valued assets of the company,” said Terry Horan, President & CEO of HORAN. “The purpose of our wellness program is to protect those assets by providing every HORAN employee with the tools and resources needed to achieve optimal health.”
The winners and finalists were selected based on an online assessment that ranks the applicants based on their answers to questions regarding cultural commitment, components of an established wellness program, communication and marketing and analysis of the wellness data gathered. Other 2013 award winners include Gallatin Steel, Duke Realty Corp., Northern Kentucky University and HORAN client TriHealth.
HORAN Awards & Recognition Erik Freudenberg, CBC Member - Dayton Go Red For Women Red Tie Society, American Heart Association
Nathan Decker, CBC 2013 Cincinnati Leadership Award National Multiple Sclerosis Society
Karen L. Mueller, CBC Otis Briggs Outstanding Volunteer - Butler County United Way
Michael D. Napier, CFP® Board of Directors - Brighton Center
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clients
Client Spotlight - Intelligrated, Inc.
Automation That Delivers from a Company That Delivers to Their Employees—Intelligrated INTELLIGRATED, INC. INDUSTRY Industrial Machinery and Equipment Manufacturing HEADQUARTERS Mason, Ohio KEY PERSONNEL Christopher Cole Chief Executive Officer
In the year 2000, Jim McCarthy and Christopher Cole conceptualized a business plan with a unified mission—to build a company that listened to customers. The company founded on McCarthy and Cole’s unified goal was Intelligrated. Since its establishment in 2001, Intelligrated has flourished from an idea to become an international industry leader. “On September 4, 2001, we opened our doors as an Ohio-based company in the conveyor systems business with no products, no factory, about 17 people including Jim and myself and a unified mission to build a business that listened to customers,” said Cole, Chief Executive Officer of Intelligrated.
Intelligrated incorporates their company mission into their daily work. They work closely with multichannel retailers and e-tailers to develop customized solutions to meet their automating needs. “Everybody who works here knows our mantra is to take care of the customer, to first and foremost put the customers first, and that is a real differentiator,” said Cole. “We listen to the customer and ask questions to develop a custom solution for them.” Cole credits Intelligrated’s success to having great customers and great employees. Their client base is comprised of the biggest retailers in America, including The Hershey
Jim McCarthy President and Chief Operating Officer
NUMBER OF EMPLOYEES 2,100 YEAR FOUNDED 2001 AWARDS Million and Higher Revenue Category Winner in the Cincinnati Business Courier’s “Fast 55” Program– 2011, 2012 and 2013 $100
Tristate Success Award – 2010, 2011 and 2012
health. wealth. life.
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healthy behavior to bring down the cost of health care,” Cole said. “Our benefits specialist relies on HORAN for detailed knowledge and an extra-focused support staff. HORAN has helped to discover the root cause of issues and correct them.” Company, Dick’s Sporting Goods and their very first client, Amazon.com. Over the past decade, Intelligrated’s employee count has skyrocketed to serve its expanding client base. They have grown from 17 individuals to 2,100 employees in locations across the United States and around the globe, including Canada, Mexico and Brazil. Intelligrated is currently exploring business opportunities in Europe and Asia. “In June of 2009, we more than doubled the size of the company almost overnight; HORAN made a bold pitch to stay with us, grow with us and invest heavily in our growth,” said Cole. “It was a big step and big investment on HORAN’s part to take on the commitment to serve all of our employees at multiple locations across the country—located from St. Louis all the way to Emeryville, California. We grew together. Our good experience with HORAN leading up to that period led us to decide we would go with them and we have not regretted that decision.” Building and maintaining good relationships is a top priority for McCarthy and Cole. To maintain their relationships with both customers and employees, Intelligrated utilizes stateof-the-art resources and operates with a high-level focus on research and development. Another main component is investing in employees’ health for future success. “We work very hard to offer a comprehensive benefits program at the best possible cost, while encouraging << Christopher Cole, Chief Executive Officer Intelligrated, Inc.
Intelligrated has implemented wellness initiatives to help control the cost of health care. They offer employees free annual biometric testing as well as an onsite gym with personal trainers and nutritional planning to encourage employees to engage in healthy behaviors. “We are growing a whole other generation who will be running this company long after I am gone,” said Cole. “We see a bright future for what we do; we sell productivity to our customers and productivity is a product that never goes out of style.”
“We work very hard to offer a comprehensive benefits program at the best possible cost, while encouraging healthy behavior to bring down the cost of health care”.
WHAT SUBURBAN PEDIATRIC ASSOCIATES HAS TO SAY ABOUT HORAN Nick Reilly (Principal & Portfolio Manager at HORAN Capital Advisors) coached my son Cameron’s soccer team, and it was from that experience that Nick and I began talking about “what we do” for a living. He became a great resource to me as I was looking for ways to improve our business. Over a few meetings Nick and I mapped out a plan to make one change at a time. He introduced me to our health benefits contact, Jessica Woodward (Health Benefits Account Representative), and the rest of the team. The team was able to navigate our company through a new health plan, making improvements to our employees’ coverage as well as saving our company from a significant rate increase. Recognizing that we are in a major paradigm shift, I am so comforted to be in the hands of a capable team. Nick and I also talked about my company’s needs in our investment and retirement plan offerings. As the fiduciary of our plan, I felt it was important to get professional help and guidance for my employees. Nick introduced me to Karl Diebold (Vice President & Retirement Plan Consultant). Karl is doing an excellent job and I look forward to the oneon-one attention my employees will get. Everyone I have had the pleasure of dealing with at HORAN has been helpful, responsive and a pleasure to work with. I feel that my practice is in a much better position today due to my alignment with HORAN. I would like to thank Nick, Jessica and Karl for all the hard work they have put in on my behalf.
Rob Wallace, M.D. President Suburban Pediatric Associates
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