health.wealth.life. VOL. 22
health.wealth.life.
IN THIS ISSUE WORKING KNOWLEDGE PAGE 12: Learnings from a Former DOL Investigator PAGE 15: Why Should You Buy Life Insurance Today? PAGE 16: Career. Culture. Community. with Jessica Woodward Brann & Chris Pratt
TRENDING NOW PAGE 14: HORAN Launches New Company to Support Small & Emerging Businesses Client SPOTLIGHT: French Oil Mill Machinery page 18
PAGE 16: HORAN Welcomes Nicholas R. Groman
FORWARD THINKING DEVELOPING A COVID-19 VACCINE, OUR REGION CAN MAKE IT HAPPEN PAGE 11
PAGE 17: Richmond Power & Light Leverages HealthJoy to Create Better Benefit Experience for Employees
COVID-19 PAGE 7: HORAN Launches COVID-19 Resource Center to Support Clients PAGE 8: How COVID-19 Will Impact Your Health Plan
Wellness Works: Fort mitchell's push for a healthier Kentucky Page 4
PAGE 10: COVID-19 Market Update
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HORAN’s “Benefits: What, Like it’s Hard?” podcast is running a special series that covers COVID-19’s impact on individuals and employers. Tune in for: • Stories from quarantine and returing to work • Interviews with local leaders • Insights to make smart financial decisions • Tips for managing mental health during the pandemic
Listen and subscribe today by visiting www.horanassoc.com/tunein
Volume 22
A Letter from the President W
inston Churchill, during the nine months of the Blitz in World War II, called out the work of the British Air Force with the now famous quote, “Never in the field of human conflict was so much owed by so many to so few.” Again, at this time in history, the so few – hospital and health care workers, EMS teams, police and fire professionals, food service and grocery workers and scientists – are doing the work for so many. We will forever be grateful for their work and self-sacrifice. This pernicious virus has tested our physical and mental health and wealth as individuals and as a community. But the American spirit of bravery and determination stands as a beacon to an anxious world. We will again assert our leadership to find answers to this question: How does our region’s network of charitable institutions continue to provide important, needed service to those who are the most at risk? The time is now to think big and rebuild the type of society where our front-line heroes are recognized and rewarded for their brave efforts. These workers are putting in long hours in health care and food service and supply delivery.
How do we design a society where these individuals are respected and paid in a fashion that recognizes their important contributions to keeping our infrastructure running? The time is now to support our beloved arts institutions. Income from ticket sales and endowments is diminished. These organizations inspire and refresh our spirits. They are vital to attracting others to our region. The arts make us complete as human beings. The time is now to support our schools and our teachers. Home schooling has burned in us the value of professionals teaching our children the skills needed to cope in a changing and dynamic world. This virus has exposed gaps in understanding how to live a physically healthy life and how to accumulate savings for the unexpected. Our schools can provide this fundamental learning for our children.
changes we wish to see in this world. Americans are a unique and free people with the right to speak their minds. We also have the right to support the charities that support our ideals. Now is the time your community needs you.
It is time to refill the pots of critical charities that have been battling the impact of this virus. Surely, we want to keep these organizations relevant. We need them to succeed. The impact of the virus will shadow us for years. The time is now to pause and think deeply about the collective
Terence L. Horan, CLU, ChFC President and Chief Executive Officer
www.horanassoc.com
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health.wealth.life.
WELLNESS WORKS
FOrt mitchell's push for a Healthier kentucky The City of Fort Mitchell, Kentucky, located in Kenton County, began their wellness initiatives in 2015 with the vision of helping their employees become healthier and happier. By developing a wellness program, the city started down a path of ensuring they were getting the most out of their insurance dollars. Members of the city’s health benefit team partnered with HORAN to help launch the program. Amy Guenther, City Clerk & Treasurer at the City of Fort Mitchell meets regularly with HORAN to ensure the City’s ongoing success. Five years later the City’s wellness program has almost 100% employee participation. Since their last renewal, the City’s employees have earned approximately $50,000 in wellness engagement incentive credits off annual premiums. That is a savings of 11% annually. 92% of the City’s employees achieved Gold status with Humana. Employees that achieve Gold save the most on their premiums. An employee receives this incentive based on their engagement in the wellness program.
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The City utilizes a menu of activities to engage employees in their program such as wellness challenges, an Employee Assistance Program and an on-site gym available for use by employees and their families. The City is getting ready to host its annual health fair event to kick off their plan year. The day includes biometric screenings, interaction with wellness vendors and a 3K run/ walk for employees and their family members. The health fair gives employees an opportunity to learn about one of the key elements of the City’s wellness program—Humana Go365.
WELLNESS WORKS
Volume 22
“We have Humana representatives on-site to help our employees get started with Go365 and understand the program’s perks,” said Guenther. “They walk our employees through how to download the app, sync to their steps tracker and start receiving points to earn incentives such as gift cards for their favorite retailers.” Guenther, members of the City’s benefit team and HORAN work together throughout the year on strategies that make the most sense for the City's annual goals. The strategy that has consistently won out has been remaining with Humana as their medical insurance carrier in order to utilize the Go365 wellness program. HORAN makes this possible by developing a plan early in the process with Humana to insure goals are met. “HORAN has been an important partner in helping us with our goal to remain with Humana each year, in order to benefit from their unique programming,” said Guenther.
“We’ve seen the shared results in our employees’ improved health, reduced renewals and in the reduced health care costs paid by the plan and our employees.” This year the City is working with HORAN to expand their wellness program by including financial health and mental health as additional focus areas. “We plan to offer opportunities to encompass the whole wellness spectrum—making our program more holistic by bringing in mental and financial wellbeing,” said Guenther.
Caroline Clift Account Representative for City of Fort Mitchell
Shannon Schumacher Account Executive, Kentucky
KY Are you an employer in the state of Kentucky who is thinking about a wellness program? Reach out to Account Executive Shannon Schumacher at HORAN. She can help you engage your employees in their own personal wellness, while also stabilizing the overall cost of medical insurance for the plan and its members. 859.572.4502
ShannonS@horanassoc.com
www.horanassoc.com
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health.wealth.life.
COVID-19
FACING COVID-19 THROUGH 2020 & BEYOND 6
800.544.8306
COVID-19
Volume 22
HORAN associates are committed now, more than ever, to support you and your employees as we all try to navigate these unchartered waters together. We launched the HORAN COVID-19 Resource Center in mid-March to keep you aware of the impact that the coronavirus pandemic is having on the industries in which we serve you. We continue to populate the resource center with the most current news, industry and regulatory updates as well as webinar opportunities to keep you informed. Visit https://bit.ly/HORAN-covid-19-updates to access the resource center. This is not meant to replace our regular communications with you, but rather meant to provide additional support for you, your business and your employees during this challenging time. We are here to help with any questions regarding health care or retirement concerns. Accessibility is our top priority and we will continue to be diligent and proactive in our communications with you. We deeply care about you and your loved ones and extend our best wishes for continued health and safety for all in this trying time. Thank you for trusting us to be your advisor. If we can be of any additional service to you, contact us at 800.544.8306.
www.horanassoc.com
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COVID-19
how covid-19 will impact your health plan The continued spread of COVID-19 creates a particularly challenging and unprecedented environment for our workforce, communities, industries and families. The associated impact and continued uncertainty will undoubtedly make your jobs and personal lives considerably harder in the near future. HORAN is diligently working to understand how COVID-19 is going to impact the health of our clients’ members as well as how it might impact their health care costs.
COVID-19 will undoubtedly impact each employer and their covered members differently. HORAN’s team of Financial Analysts is working to help our clients understand the potential impact by digging into available data at the local, state and national levels.
Ultimately, the cost impact of the virus on your member population is going to be largely dependent on two factors: 1. The number of your members who become infected with the virus 2. The severity of those members’ cases
As of June 14, 2020, counties in the three states surrounding HORAN's office locations (Indiana, Ohio, Kentucky) were reporting case counts to date generally between .1% and .5% of the populations in those counties (between 1/10 and 1/2 of one percent of the population). When translated to actual patient counts, the differences we are seeing in the incidence levels of diagnosis can vary by thousands of patients in larger counties.
HORAN does not believe that our clients have control over how severe the cases will be for their members, but we do believe that our clients play a very important role in managing and mitigating the number of their members who become infected.
Diagnosed patients present a wide range of cases—from asymptomatic or mild symptoms to severe illness or death. This variability in severity is reflected in county-reported hospitalization rates which range from 15% to 40% among those diagnosed. With vastly different diagnosis rates from county to county and a wide range of severity among patients, it makes developing an accurate prediction of the impact on costs and the health of employees for any one employer difficult.
We also believe that preventing infection in your member population is the most productive area of focus. Mitigation can help you avoid outbreaks which could impact your employees’ health, the function of your business and your overall health care costs.
“The most important action employers can take in controlling their health care costs during the pandemic is instituting best practices to mitigate the spread of the virus among their employee population and their families,” Valerie Bodgan-Powers, President of HORAN Health.
This information is region-specific, however, we are able to adjust for your location. HORAN has created a custom report to help you obtain more specificity based on your data. Please contact your HORAN Account Team for more details.
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THIS WAS BROUGHT TO YOU BY SM
COVID-19
Volume 22
The HORAN Financial Analyst team mapped out three scenarios based on current Tri-State COVID-19 reporting to predict how the virus might impact health care costs for low, medium and above-average diagnosis rates for an employer with 1,800 plan members.
ABC COMPANY
1,800 members • National AVG. Age/Gender/risk
Low DIAGNOSIS/ LOw severity
Medium DIAGNOSIS/ Medium severity
Above avg. DIAGNOSIS/ above avg. severity
Experienced a lower than average rate of diagnoses and fewer than average patients had severe cases requiring ICU.
Experienced an average rate of diagnoses. The percentage of members who required hospitalization and ICU admittance is in line with averages.
Experienced a much higher rate of diagnoses. Population also had more severe cases of the virus.
4
1 5 total diagnosed cases Mild
Moderate
$19,573
Estimated COVID-19 Costs
12
4
26
18
18 total diagnosed cases
89 total diagnosed cases
Mild
Mild
Moderate
Severe
$291,633
Estimated COVID-19 Costs Savings from Reductions in Other Medical Expenses (e.g. non-emergent procedures)
Savings from Reductions in Other Medical Expenses (e.g. non-emergent procedures)
$422,242 Net Savings
45
2
$150,181 Net Savings
Severe
Moderate
$3,620,032
Estimated COVID-19 Costs Savings from Reductions in Other Medical Expenses (e.g. non-emergent procedures)
$3,178,217 Net Costs 9
health.wealth.life.
COVID-19
COVID-19 CRISIS MARKET UPDATE
A BRIEF LOOK AT THE CURRENT STATE OF THE ECONOMY AND MARKETS AS OF JUNE 12, 2020
• The US stock market (S&P500) was down 33.92% from its high on February 19 to its low on March 23. • The US stock market (S&P500) is up 35.93% from its low on March 23. • These movements have represented several of the fastest declines and increases in history. • GDP in the US contracted 4.8% in the first quarter and is expected to shrink roughly 25%-30% in the second quarter. • The headline unemployment rate jumped from 3.5% at the end of 2019 to 14.7% in April before falling back to 13.3% in May. • The price of WTI crude oil has collapsed from over $60/barrel at the start of the year to near $35/barrel. • The government response has been historic with massive monetary and fiscal stimulus and will most likely act as a tailwind toward recovery – the Federal Reserve indicating it will do “whatever it takes.” With most states phasing in a gradual opening of business and commerce with workers returning, some of the questions to be answered are: • Is there a resurgence in virus cases that slows or derails progress toward activity? • What are the real statistics around the virus, vulnerable populations, immunity, treatments and vaccine potential? • What are the short term, medium term and lasting effects from the global economic shutdown? • Are some behaviors changed longer term and what are the implications?
There are green shoots of recovery appearing, pointing to pent-up demand from consumers such as a sellout for the opening of Shanghai Disneyland in minutes and even Carnival Cruise lines bookings soaring with the announcement of its relaunch. We believe the recovery to pre-pandemic business activity levels for many industries could take months or even years. Despite the market rebound and green shoots, investor sentiment continues to be remarkably low. Sentiment is oftentimes a contrarian indicator of market direction. While the dire levels of unemployment are likely to improve significantly as commerce restarts and workers are rehired or return from furlough, it is likely there will be a persistently high level of unemployment for a longer period of time. We have used the recent volatility to purchase some higher quality investments we believe are now priced to provide potentially attractive upside. While we believe there are many significantly undervalued opportunities for investors, volatility will likely continue to be high. We are generally holding a higher level of cash in portfolios due to the uncertainty. To highlight the uncertainty, many companies are not offering guidance on the outlook for their business and earnings. We may have seen the market lows but could experience some additional weakness as news emerges on the resumption of activity and the lasting damage done to the economy.
In the face of changing market dynamics, the long-term goals of investors generally don't change in a short period of time. While the markets are certainly volatile, we continue to invest for the longer term goals of retirement, to fund college tuition, to save for down payments, to maintain or improve standards of living and more. During times like this it remains important to follow a disciplined investment approach in order to achieve those goals.
• Will the recovery be V, U, L or W shaped or a combination with some industries or parts of the economy experiencing a sharp V-shaped recovery while others experience a longer U - or L - shaped recovery. • What type of recovery has the market priced in? 10
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David Templeton, CFA Portfolio Manager & Principal HORAN Capital Advisors
COVID-19
Volume 22
DEVELOPING A COVID-19 VACCINE OUR REGION CAN MAKE IT HAPPEN We should be proud of our region’s role in the fight against COVID-19. From patient care to supply chain support, from testing kits to the development and manufacturing of treatments, we have played a major part in combatting the pandemic – not just here – but around the world. In the heart of the Midwest, we have patient care and ground-breaking research that rivals hospitals around the world. Our health systems have provided unmatched care to patients critically ill with COVID-19. Workers at these systems have displayed courage, empathy and dedication throughout the pandemic. Community giants such as Proctor & Gamble and Kroger have maintained supply chains to the world. Their workers, many local, have worked around the clock, ensuring communities across the nation had the necessary supplies to quarantine at home or continue doing their jobs safely. Innovative laboratory support and testing for both patient care and coronavirus research around the country has been provided by local companies. A West Chester Township manufacturing plant is being retrofitted to manufacture one of the experimental vaccines. CTI Clinical Trial and Consulting (CTI) is currently conducting research of more than a dozen COVID-19 trials globally and has been able to include many local hospitals in our studies. The ultimate goal is to develop one or more vaccines to prevent the development of COVID-19. This region has a rich history in being at the forefront of vaccine development, dating back to the original research of Dr. Albert Sabin on the polio vaccine in Cincinnati. We have been a leader in vaccine development before, and with the COVID-19 pandemic, it is time to demonstrate to the world how our region can do so again. To do this, we need your help. Our team has been tasked with identifying 10,000 volunteers to be in these studies. CTI is looking for people to be in their vaccine trials. We are looking for healthy adult volunteers, as well as special patient populations, such as elderly (over 65 years old), immunocompromised people, healthcare workers/first responders, or those previously infected with COVID-19. Those who qualify for the studies will be helping in the quest to get a vaccine approved for the world, and they may also receive compensation for their time and travel. If you’d like to volunteer, please call 513.721.3868, text 513.854.3370 or visit CTIFACTS.COM/SIGNUP. This is our time to demonstrate to everyone what we have known for a long time – that this is a great place to work and live, and that we’re capable of changing the world. It is our time. Let’s make it happen.
Article submitted by
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WORKING KNOWLEDGE
Learnings from a Former DOL Investigator Evaluating fiduciary and related risks in retirement plans is a talent that Paul Carl, Vice President of New Business Development at HORAN, has been developing for more than 30 years. After spending eight years with the Department of Labor (DOL), Paul works on the other side of the table for HORAN’s clients. He applies his Senior Investigator experiences and skills to help employers identify potential red flags within their retirement plans. These are red flags that could be grounds for DOL investigations and even IRS audits. Paul’s journey to become a 401(k) Geek (as his friends and co-workers call him) started when he joined the Department of Labor EBSA (PWBA at the time) in August 1986. Following a six-month onboarding process, he was sent to the IRS warehouse in Memphis, Tennessee, to dig through piles and piles of Form 5500s. He was one member of a fiveperson crew assigned to bring back enough potential cases with suspected violations to keep 20 DOL investigative staff busy for the next 6 to 12 months. Paul proved to be a natural. DOL supervisory staff appointed him “team captain” after the group’s first trip to Memphis. For the next several years, Paul led the case-scouting team looking for potential investigative cases that geographically covered all of Ohio, Michigan, Kentucky and the southern portion of Indiana. Paul’s process was methodical and very effective and most often rooted in causality. Box by box, Paul examined the hard copy Form 5500s thoroughly. Any notable items were mentally documented and then compared to additional information and findings in the attached audited financial statements. “I applied a sort-of mental algorithm to the information in the Form 5500,” as Paul describes the process. “The audited financial statements helped me to gather more detailed information to further legitimize or disprove the suspicions.” While the potential cases that Paul identified and brought back to be investigated were a combination of both small and large plans, Paul credits the larger employer groups as his specialty. 12
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“Large employers have longer Form 5500s which contained (and still contain) the most volume of information. As a result, these were the opportunities we brought back the most, ” noted Paul. “However, we needed to ensure we were covering the entire geographic region assigned to our DOL offices in Cincinnati and Michigan. If we came across a smaller plan and its location appeared to coincide with a potential larger case, we would set it aside and bring it back for an opportunity.” Below are three key takeaways from Paul’s time as a DOL investigator: 1 All Providers Matter
Investigators are looking at who is represented on the Form 5500 and how well the Form 5500 is completed. Bluntly, some providers prepare them very well consistently and some prepare them very poorly consistently.
2 Schedules Need to Support the Form 5500 Information
How the schedules support the main Form 5500 information is important. Often data is reported on multiple schedules. How that data is matched and aligned schedule-to-schedule really does matter.
3 Full Understanding of Fee Structure is Critical
Recent DOL policy changes have improved fee transparency significantly. However, there are still ways of embedding fees, misaligning fees and using certain products to offset or capture revenue in nontransparent ways. While these may not necessarily be plan violations, they could become issues for plan sponsors and fiduciaries if their plan oversight personnel do not understand these factors.
Since Paul joined HORAN in August 2014, he has been working with employers to protect their retirement plans. Paul developed HORAN’s Retirement Plan In-Depth Risk Assessment report to provide employers with red flag indicators of possible issues that a DOL auditor or investigator might identify as triggers for opening up an investigation.
WORKING KNOWLEDGE
Volume 22
2019 EBSA (EMPLOYEE BENEFITS SECURITY ADMINISTRATION) FIGURES
2.5+ Billion
$
The amount the EBSA recovered in direct payment to plans, participants and beneficiaries
2.02 Billion
$
The amount recovered through enforcement actions
“Today, the process is easier for me. Years ago when I was with the DOL, we looked at one Form 5500 for one particular year. It was a single snapshot in time. Period. It either looked clean or it didn’t. Today, because of electronic filing, I can quickly pull multiple years from the DOL’s publicly available filing database and collectively look for trends,” said Paul. “I start with the latest available year and analyze up to the previous five years—looking for current red flags and potential issues.” What differentiates Paul’s In-Depth Risk Assessment report from other evaluations which can be done through roboplatforms such as Brightscope or LarkspurData is that it was created using the DOL’s process as the framework. “I’m interested in those robo-platform data points from a Plan Health perspective because I truly want every American to be able to retire comfortably. That data speaks to the Plan’s health,” said Paul. “I look at the data from the DOL’s fiduciary and ERISA playbooks. I’m way deeper than surface Plan Health calculations.” In the first quarter of 2020, more than 85% of the plans (these employers were not current HORAN clients) Paul reviewed had enough DOL-red-flag identifiers to recommend pursuing as an open case, if he were still a DOL investigator. The HORAN team is in the process of contacting many of those plan sponsors. HORAN is committed to helping employers understand and fulfill their fiduciary responsibilities by providing the In-Depth Risk Assessment report. If you are interested in having your retirement plan(s) reviewed through the lens of a DOL Senior Investigator, reach out directly to Paul Carl at 513.794.8189 or PaulC@horanretire.com.
14.6 Million
$
The amount recovered through the Voluntary Fiduciary Correction Program
1,146
The number of civil investigations cases closed by the EBSA in FY 2019 (09/30/2019)
770
The number of cases (67%) resulting in monetary results for plans and other corrective action
89
The number of cases referred for litigation
Paul Carl Vice President 13
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TRENDING NOW
HORAN Launches New Company to Support Small & Emerging Businesses
JULIE HIGHLEY PROMOTED TO PRESIDENT OF HORAN EMERGING BUSINESS ADVISORS HORAN has announced a new company to support the growth of small and emerging businesses in the region led by Julie Highley. “HORAN continues to grow our footprint as one of the top benefits providers and wealth management firms in the region,” said Terence L. Horan, President and Chief Executive Officer at HORAN. “With Julie in this leadership role, I am confident that her dedication to strengthening the health of small businesses will have a tremendous impact to these leading entrepreneurs.” Highley brings 33 years of industry experience, 25 of which are at HORAN, to this new role. The establishment of HORAN Emerging Business Advisors reinforces HORAN’s commitment to protecting the future of small businesses in the region. “HORAN recognized the need for a focused approach to small and emerging businesses before the COVID-19 pandemic and now it has proven to be more important than ever,” said Highley. “We have invested in a dedicated team of experts that is focused solely on the needs of businesses under 100 employees due to the complexity of ever-changing legislation, compliance and products in the market.”
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Today, there are over 40 million businesses in the United States with fewer than 100 employees. 90% of all Ohio businesses fall into this category. HORAN Emerging Business Advisors understands the unique needs of small and emerging businesses. “We believe that small business is the foundation for marketplace growth and we are able to support these employers with the full power of HORAN,” Highley said. “Our unique and proactive business model provides us with the opportunity to create a rewards package that includes health, retirement and executive benefits so that small business can attract and retain top talent to help their businesses grow and thrive.”
Julie Highley President, HORAN Emerging Business Advisors
WORKING KNOWLEDGE
Volume 22
Why Should You Buy Life Insurance Today? Due to the current COVID-19 environment, recent market challenges and many of us working out of our homes, we are all a bit more stressed emotionally and perhaps financially. Many clients have asked how cash values in their life insurance policies are weathering the storm. Permanent life insurance products have traditionally maintained their value through tough economic times because they are designed with that very goal in mind. Permanent life insurance can provide peace of mind through tough economic times by providing access to cash values for whatever needs arise: to pay unexpected medical expenses by leveraging an accelerated benefit rider which provides a portion or all of the death benefit prior to passing away. If a client dies, the death benefit provides families financial protection to maintain their standard of living. In difficult economic times like these, permanent life insurance demonstrates its value. Clients are wondering, is it too late to buy permanent life insurance and how is the volatile market and global pandemic impacting the life insurance industry? Although we are experiencing turbulent times, it’s never too late to prepare. It is highly unlikely this is the last global health crisis; in recent history we have weathered MERS, swine flu and the avian flu. And we will likely experience another bear market or two along the way. In other words, there’s never a bad time to make permanent life insurance part of your financial plan.
If you buy life insurance today, you lock in your insurability. If your health declines in the future, you’re protected. Conversely, if your health improves, you may obtain a rate class improvement via re-evaluation. Cash value growth in a permanent life insurance policy is tax-deferred; your assets grow without an impact on current taxable income. In addition, if you need to access policy cash values in the future, you can do so on a tax-free basis by utilizing withdrawals and loans. Proceeds can be used for multiple needs. For example, to offset debt, pay education costs or supplement retirement income. Depending on the policy you purchase, many insurance companies offer features that provide early access to the death benefit to help offset the costs of a terminal illness, a chronic illness or long-term care needs. The death benefit provides funds to your family, business or any other beneficiary at the end of your life. This money can be used to offset living expenses, help smoothly transition a business, pay medical bills, pay any taxes due or for any other needs a beneficiary may have. Life insurance is generally not thought of as an asset; however, it is a unique asset that is vastly different from other assets because of its benefits and features. These benefits and features cannot be replicated by other assets: stocks, bonds, precious metals, real estate, etc. Life insurance is designed to protect your family and business against the many financial challenges that can occur over a lifetime. Perhaps today is the best time to take the next step; it is never too late to prepare for the future. Contact us to discuss your scenario and we can develop a plan to help you meet your goals.
Greg Hoernschemeyer, CLU Senior Vice President
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WORKING KNOWLEDGE
HORAN Welcomes Nick Groman To support our clients’ diverse and complex planning needs, HORAN is proud to announce that Nicholas R. Groman has joined our Wealth division as Director of Financial Planning. Nick’s focus will be creating financial plans for clients and providing advice on retirement cash flow, estate planning, tax and insurance coverage. Additionally, Nick will be educating clients on financial reviews, financial plans, needs analysis, educational funding and more. As a Certified Financial Planner™ (CFP), Nick has over six years of experience in providing comprehensive financial planning for individuals and families. Prior to joining HORAN, Nick was a Senior Associate and Financial Planning Specialist at MAI Capital Management where he provided individuals, families and businesses with the financial tools that are most-appropriate for meeting their unique needs. Nick also has experience as a Workplace Planning & Advice Consultant at Fidelity Investments
where he was a President’s Circle Winner in 2017, a distinguished honor for the top 1% of performers nationally. “Nick’s approach to educating individuals and families to secure positive outcomes benefits our clients searching for assistance with complex planning needs,” said Terence L. Horan, CLU, ChFC, President and CEO of HORAN. “His background in financial and estate planning is a great addition to our Wealth organization.” Nick graduated from Mount St. Joseph University with a Bachelor of Science in Business Administration and with a concentration in Economics prior to completing his Master of Business Administration from Xavier University with a focus in Finance. Currently, Nick is pursuing a Juris Doctorate at Northern Kentucky University with an expected completion date of Spring 2021. Additionally, he is currently sitting for the designation of Chartered Life Underwriter ® (CLU).
Career. Culture. Community. The 2020 4C for Children Champions Gala raised over $165,000 for the advancement of early learning. HORAN’s Jessica Woodward Brann, Director of Employee Benefits at HORAN, and Chris Pratt, Senior Consultant at HORAN Emerging Business Advisors, served on the Gala committee this year and played a major role in the event’s success. The annual gala was held on March 7 at JACK Casino and is the largest fundraising event for the nonprofit organization each year. The Gala features programming dedicated to educating attendees on the organization’s ongoing initiatives. The President of 4C for Children spoke about their ongoing work to fulfill the organization’s vision of ensuring children have a quality early learning experience, enter school ready to succeed and reach their full potential. HORAN is proud to be a sponsor of the Gala and supporter of the 4C for Children’s mission. Jessica first became involved with 4C for Children as their Account Manager with HORAN. After volunteering at a local 16
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YMCA in high school, she fostered a love for kids and a passion for helping them succeed in school and in life. This aligned perfectly with 4C for Children’s mission and created a natural transition onto their Gala committee. Three years ago, she introduced Chris to the organization after learning of his long-term service with the Boy Scouts and his passion for creating a positive impact on his community through role modeling and mentorships. Chris has always felt an obligation to give back. He gives his time to create and promote education communities for families.
FORWARD THINKING
Volume 22
CLIENT SUCCESS STORY $32,576
Cumulative Program Savings
Richmond Power & Light Richmond Power & Light (RP&L) is a community-owned electric utility serving Richmond, Indiana, since 1902. As employee health care costs climbed, RP&L needed a tool to empower employees to make better use of their benefits and simplify management. RP&L recently partnered with HORAN to create an improved benefit experience for their employees.
Telemedicine Savings
% of Cumulative Savings
Rx Savings
% of Cumulative Savings
Bill Review Savings
% of Cumulative Savings
$29,986
$2,590
(92.0%) (8.0%)
$0 (0%)
Below are the steps HORAN took to achieve better employee engagement outcomes for RP&L:
Presented RP&L with a variety of employee engagement tool options and helped with the selection of HealthJoy for benefits engagement.
$2,396
89
*Total Productivity Savings
Negotiated cost for the app and facilitated implementation
Total Hours of Saved Productivity
Hosted on-site roll-out for employees
Re-educated about HealthJoy during open enrollment meetings
Participated in continued utilization review to ensure ongoing success
Benefit Support Consults Completed
54
Facility Recommendations
8
Bills Reviewed
0
Rx Reviews
7
Provider Recommendations
Appointments Managed
18 2
FINAL RESULTS
94
Eligible Employees
65
Activated Employees
21
Activated Family Members
Productivity Savings
$2,396
Program Savings
+
$32,576
Total Savings
=
$34,972
*Assumes productivity savings of $26.92/hr based on Department of Labor/Bureau of Labor statistics
Statistics presented are as of implementation in May 2019 and through April 2020.
www.horanassoc.com
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CLIENT SPOTLIGHT
Celebrating
120 Years A piece of history: French employees, 1912
of Success
Alfred Willard French founded The French Oil Mill Machinery Company in May 1900. The company, headquartered in Piqua, Ohio, was established with a vision of providing customers with improved machinery, rather than a specific piece of equipment. This vision inspired French Oil for the next 120 years. As markets, economies and technologies have evolved, French Oil has adapted to continue to meet customer needs. French Oil Mill Machinery Co. Assembly Dept, 1914
Today, French Oil is in their fourth generation of family ownership and celebrating their 120th anniversary. French Oil employees custom design, manufacture and support process equipment for the lamination, molding, oilseed and synthetic rubber industries. French Oil focuses on providing products with superior value and superior service that improve their customers’ productivity and reduce their overall production costs.
Alfred and Grace French traveling for business in Egypt, 1920-1921
The company’s rich history and values instilled through family-ownership have greatly influenced the French Oil culture. “Our employee culture is inspired by our family-ownership and our five core values: customer first, partnership, innovation & continuous improvement, think global and build to last,” said Tanya Shell, Vice President of Finance at French Oil. These core values have extended to the surrounding Piqua community as French Oil is very active with corporate social responsibility initiatives. The company is a business partner to the schools in the Piqua City School District, supporting the schools with various fundraising efforts, hosting students for tours of the facility, funding “COSI on Wheels” and mentoring students.
French Oil Mill Machinery Co. Assembly Dept, 1960
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CLIENT SPOTLIGHT
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Additionally, French Oil employee contributions to United Way have surpassed the company’s fundraising goal for the past 10 years with 100% employee participation. Shell attributes French Oil’s ongoing success to continued family ownership, constant innovation and loyal, dedicated, hardworking employees. French Oil leadership works to provide a comprehensive benefit package to help recruit new employees and retain current employees. “Benefits play a key role in our ability to take care of our employees and their well-being,” said Shell. “We want to provide the best benefit package possible to take care of our employees.”
Arial view of Piqua, Ohio, headquarters
French Oil partners with HORAN for employee benefit guidance and strategic direction. “We enjoy our partnership and friendship with our HORAN team, Jennifer McCormick and Martha Dils,” said Shell.
“HORAN understands that our employee benefits are one of the largest budget items; they work with us to help contain the cost of those benefits.”
Current French Oil Mill Machinery Co. Assembly Department
As the company celebrates its 120th anniversary, French Oil will continue to focus on what has led to their ongoing success: their loyal employees, customer partnerships and continuous innovation.
Innovation Center R&D laboratory testing
Jennifer McCormick Account Manager for French Oil Mill Machinery
Martha Dils Director of Account Operations
Assembly Building for Piqua, Ohio, headquarters
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COMMUNITY EFFORTS TO FIGHT COVID-19 Polysource is helping with the shipping expenses for another local Piqua company, Isiah Industries. The roofing company is making metal strips to insert into masks for better fitting. They are doing this at no cost, but the shipping became too much for them to shoulder. Polysource and others have stepped in to defray the shipping costs. These inserts are being shipped throughout the country and the world. The Cincinnati Zoo & Botanical Gardens is selling adult and toddler-sized face masks with the famous Fiona's snout. Get yours at shopcincinnatizoo.com. Students at Troy Christian High School made Face Mask Support Straps for Ohio's Hospice of Dayton. When students and teachers at Troy Christian High School learned about projects other youth were starting to help the medical community during COVID-19, they found that they could help by making face mask support straps. Wright State University’s costume department in the School of Theatre made masks for local hospitals as well as staff and students.
Ethos Laboratories has entered a strategic partnership with Genscript to offer the first quantitative surrogate Viral Neutralization Test to evaluate COVID-19 protective immunity in the US. The Tru-Immune™ lab test will identify patients with the most effective antibody response capable of inhibiting virus replication. This information has not previously been available and will pave the way for blood centers across the US to recruit patients who have recovered from COVID-19 and exhibit the greatest potential to inhibit the virus. Pam Brockfield quilts and sews in her spare time and wanted to do something to help in this time of crisis. In response, she has made and donated over 250 masks to Mercy Hospital Fairfield, Christ Hospital, Faith Community United Methodist Church, family and friends, a local doctor's office, and even a local Wendy’s for their employees. Jenny Pansing has sewn and donated more than 305 masks. This includes 120 masks for TriHealth employees and 20 masks for local pharmacists. She has also made 10 scrub caps for ICU coworkers.
Did we miss you? If you are making or selling protective face masks, supplying other types of personal protective equipment (PPE) or donating significant time and energy to prevent the spread of COVID-19, reach out to Melissa McDonald, Senior Marketing Manager at MelissaM@horanassoc.com to share your story. We will share and promote your efforts on HORAN’s COVID-19 landing page on our website. Horan Securities, Inc. is a Registered Broker/Dealer and a Registered Investment Advisor, member FINRA/ SIPC. Horan Wealth and Horan Capital Advisors are an SEC Registered Investment Advisor. Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. The information herein has been obtained from sources believed to be reliable, but we cannot assure its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Any reference to past performance is not to be implied or construed as a guarantee of future results. Market conditions can vary widely over time and there is always the potential of losing money when investing in securities.
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