™
Spring 2016
health. wealth. life.
In Pursuit of What Matters Most.
contents 3
A Letter from Terry Horan, President & CEO
EDUC AT ION
4 5 6 8 9 10
Considering an On-Site or Near-Site Clinic? The Five Keys to Success
HOR AN EDUCATION SERIES May 26
Economic & Market Update
Affordable Care Act’s Impact on Small Businesses
HORAN Advisor Roundtable: A Discussion on Mitigating Financial Risk Longer Life & Life Insurance
Forget Your Password...Think P@ssPhrase How the DOL Uses Form 5500 to Target Your Plan for Audit
June 16
Affordable Care Act and Compliance Update
June 23
Global Mobility: Building a Globally Competitive Talent Organization
COMMUNIT Y
11
HORAN in the Community
CL IEN T FE AT URE
12 14
Wellness Works: RelaDyne Client Spotlight: Wright-Patt Credit Union
Please join us in welcoming our new corporate clients! - City of Cincinnati - Huber Heights City School District - Joyce/Dayton Corporation - Marsh Brand Partners
- Retina Associates of Kentucky - Southern State Community College - Sterling Medical - Zimmer Motors, Inc.
Cover: This edition of the HORAN magazine highlights a theme of risk transfer and risk mitigation. Our purpose at HORAN is to help our clients transfer and mitigate potential risks to protect themselves, their businesses and their families. Our clients rely on us to take risk’s load off their shoulders. This is the foundation of what we do. Representing this theme on the cover are two of HORAN’s own. Brandon Christin and Rob Brown ran for one of HORAN’s four person relay teams, along with Brooke Horan and Angela Wolfe, in the 18th Annual Cincinnati Flying Pig Marathon. The image shows Brandon transferring the relay baton to Rob to continue the race. Their team placed 27th out of the 592 relay teams.
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|
™
A letter from Terry Horan
In Pursuit of What Matters Most. The essence of what HORAN does each day is help clients evaluate their risk tolerance and then use our products and services to transfer or otherwise mitigate risk. This quarter’s magazine is full of articles that illustrate how we can help you and your business transfer and mitigate risk. Anna Pfaehler, Mark Bennett, Rachele Wolf and Chris Cook discuss how to build wealth to mitigate financial risk in our HORAN Advisor Roundtable article on pages 6 and 7. HORAN hosted a panel in March on the subject of employer-sponsored clinics and the way companies are using them to reduce employee health risk. You can read about our key learnings from the event on page 4. Paul Carl authored an article that discusses how to reduce the risk of a DOL audit, and Brooke Horan wrote about strategies for small businesses to remain compliant with the provisions of the Affordable Care Act. We also feature our commitment to the Christ Hospital School of Nursing and our sponsorship of Health Care Heroes, which is a program to honor health care professionals in the Cincinnati–Northern Kentucky region. Additionally, you will find great client profiles on RelaDyne and Wright-Patt Credit Union. So find a comfortable chair on a shady porch or patio and page through our magazine. The products and services HORAN provides are specifically designed to help you and your families remain in your world as you encounter the risks of daily life. We are honored to be your trusted advisor. Most sincerely,
Terence L. Horan, CLU, ChFC President & CEO of HORAN TerryH@horanassoc.com
| 3 |
education CONSIDERING AN ON-SITE OR NEAR-SITE CLINIC? The Five Keys to Success HORAN held a seminar entitled “Employer-Provided Clinics: Turning an Upfront Investment into Long-Term Savings” on Thursday, March 10. Attendees heard the insights and experiences of three companies—Aurora Casket Company, Hillenbrand, Inc. and GE Aviation—as well as their clinic partners. The participating companies have a wide range of employee counts—about 500 to 24,000-plus—and are located in urban and rural settings. On the surface it appears that needs and approach would be very different. However, we learned they are strikingly similar. While each company was motivated for a different reason to start a clinic, the main theme was universal: provide employees with easier access to affordable, quality health care. Karen Mueller, Executive Vice President at HORAN, and Dominic Franchini, Vice President and Cincinnati Market Leader, moderated the panel discussion.
The panelists shared the key criteria to making their clinics successful. HELLO my name is ����SE �ARE����Y
Accessibility
GE’s clinic was initially located in a building that required security clearance and a long walk to reach it. It was moved to a stand-alone building with its own entrance and no security clearance needed. Since the move, participation has significantly increased.
Build employee trust.
Each panelist company uses a medical partner to manage the site and records. The records are kept either on separate servers or with firewall protection to keep records private. None of the companies have direct access to patient information.
health. wealth. life.
Pick the right name.
All of the panelist companies said they quickly decided that using “clinic” in the name did not provide comfort in using the services provided.
Make the clinic break even.
A long-term view is essential. It often takes years to recoup the investment and to be able to analyze hard data to prove its return on investment. Much of the cost savings is realized in avoidance of probable medical claims.
Provide services that meet employee needs.
The services offered include on-site primary care and pharmacy, flu shots, wellness visits and biometric screens, physical therapy, occupational therapy, health and wellness services as well as routine drug testing.
|4 |
™
Affordable Care Act’s Impact on Small Businesses Brooke Horan Account Representative Brooke works with clients to develop strategy for employer-sponsored benefit packages for small businesses that enhance employee retention and recruitment and contain long-term cost increases.
When the Affordable Care Act (ACA) was first enacted in early 2010, it was difficult to say exactly what impact it would have on employer-sponsored health coverage. One piece of the ACA that has brought many changes to employers is the employer shared responsibility provision, or the “pay or play” mandate. This requires employers with over 50 full-time-equivalent employees to offer coverage to full-time employees and their dependent children or face a financial penalty. Additionally, employers must offer coverage that both is considered affordable and provides minimum value. This means an employersponsored plan must cover at least 60% of the total allowed cost of benefits expected to be incurred under the plan. The pay or play provision has required employers, brokers and carriers to get creative. In order to lower monthly rates, employers have been forced to implement plans with higher deductibles. Understandably, groups are wary to introduce a deductible that is much higher than employees have experienced ever before. In order to soften this blow, employers often will introduce two plans: one with a low monthly premium and a high annual deductible and another with a high monthly premium and low annual deductible. Offering a dual option brings two benefits: First, there are choices for the employees. They are able to choose a plan that best fits their health and financial situation. Second, employers are able to calculate their plan affordability off of the plan with the lowest monthly premium. Plans are considered to be “affordable” as long as the employee contribution for the employee-only tier is no more than 9.5% of their monthly household income. Another way employers have softened the blow of higher deductibles is by implementing Health Reimbursement Arrangements (HRAs) in which the employer reimburses the employees for a portion of their out-of-pocket medical expenses.
In most cases, the HRA is set up so that the employees need to satisfy only the portion of the deductible that had historically been in place. If any employee incurs costs beyond that amount, the employer reimburses the employee for the rest of the increased deductible. As a result, the exposure is no more than before for the employee, and the risk of increased costs is low for the employer because not many employees will reach the deductible within a given year. New products have also been introduced to the market in the past few years. Self-funding is a topic of conversation foreign to most small businesses, and yet we find that the idea is coming up more frequently in conversation. Partial self-funded products provide small business owners with the power to increase plan transparency and control plan design without the risk of holding responsibility for large claims. Carriers assess the risk of the group and offer level-funded premiums with a stop-loss built into the rates. Plans operate similarly to traditional fully-insured plans and even offer the opportunity for a refund at the end of the year if all claims dollars are not spent.
THE PAY OR PLAY PROVISION HAS REQUIRED EMPLOYERS, BROKERS AND CARRIERS TO GET CREATIVE. While these strategies have increased in popularity over recent years, they certainly are not the only options out there. The Small Business Solutions Team provides expertise in products and services to assist organizations with employee counts ranging from 2–150. We are able to provide a full spectrum of products and services to assist employers in creating strategic benefit programs that not only contain costs, but also enhance the well-being of employees. As the benefit environment continues to evolve, we will continue to provide creative and robust solutions for employers in a variety of situations.
| 5|
education ADVISOR ROUNDTABLE
Mitigating Financial Risk Recently, a group of HORAN wealth advisors met to discuss the advice and counsel they give to clients to help build and sustain wealth as well as alleviate and mitigate financial risk. The panel was comprised of Rachele Wolf (RW), Senior Account Manager—Investment Retirement Plan Consultant; Christopher Cook (CC), CFP®, Vice President; Mark Bennett (MB), CFA®, Portfolio Manager & Principal at HORAN Capital Advisors; and Anna Pfaehler (AP), CFP®, Director of Financial Planning. The following is an excerpt from their roundtable discussion.
WHAT IS YOUR INVESTMENT APPROACH?
(MB): We begin our approach with developing an understanding of the clients’ goals, needs and objectives. We then add value through constructing a sound portfolio of investments matching the appropriate level of risk for the client in the complex world we live in today. We build portfolios that should sustain client lifestyles over the longer term. The core of the portfolio is generally comprised of high-quality investments that produce a reasonable level of income with an eye toward growth as well as downside protection in difficult environments. (RW): At the employer level, we ensure the plan offers a diverse set of investment options—both active and passive. At the participant level, we work with the individual to determine his or her risk tolerance and time horizon in order to build an appropriate asset allocation strategy for his or her specific situation.
Rachele Wolf
Senior Account Manager Investment Retirement Plan Consultant
health. wealth. life.
Christopher Cook, CFP®
Vice President HORAN Wealth Management
WHAT IS A COMMON MISCONCEPTION YOU HEAR FREQUENTLY FROM CLIENTS ON RETIREMENT PLANNING?
(AP): That you should always take a lump-sum payout instead of a pension. Taking a lump sum can be a wise move depending on your life expectancy, the life expectancy of a surviving spouse, the alternative monthly payment rate, your other assets and your desire to leave a legacy to heirs. However, when you take a lump sum, the investment risk is shifted from the pension plan to you. It’s best to crunch the numbers and consider the trade-offs before making a pension decision. (CC): People often say, “I’ll never be able to retire, or you need $1 million in your 401(k) to retire.” While having $1 million in your 401(k) will certainly help your ability to retire, there are many factors involved in determining when an individual can safely
Mark Bennett, CFA®
Portfolio Manager & Principal HORAN Capital Advisors
Anna Pfaehler, CFP®
Director of Financial Planning
|6 |
™
Pictured (left to right): Anna Pfaehler, Rachele Wolf, Mark Bennett and Christopher Cook.
begin retirement. This alone underscores why individuals and families should take the time to meet with independent financial planners to best understand their unique circumstances.
payments and more discretionary dollars as a result of lower energy prices while job growth has been relatively healthy over the last couple of years.
WHAT ADVICE DO YOU GIVE PEOPLE WHO ARE CONCERNED ABOUT THE UNITED STATES & GLOBAL ECONOMY?
HOW DOES THE ADVICE YOU GIVE DIFFER FOR SOMEONE IN THEIR 30S/40S TO SOMEONE IN THEIR 60S?
(CC): Well first, the United States economy is expected to grow at a fairly moderate pace over the next 12 months. We have had decent job growth and signs of faster wage growth. This combined with the low energy costs we have seen should offset weakness in the manufacturing sector. Plus, housing starts and home prices should remain on an upward trend. Secondly, the European economies are likely to weather these global growth concerns, supported by, again, low energy costs. Additionally, the refugee crisis presents an economic opportunity for additional consumer spending supported by the European governments’ low interest rate monetary policy. (MB): While the rate of economic growth both in the United States and globally since the 2008–09 financial crisis has been muted, running about half of the long-run historical rate, this has limited the build-up of excesses that historically lead to bust. In other words, no boom/no bust. This more muted growth has increased the likelihood of a longer period of sustained growth and a continuation of relatively low inflation. The U.S. consumer is also in relatively good shape with lower monthly mortgage
(RW): A person’s time horizon plays a key factor in the advice we offer on a person’s asset allocation. Younger people are in their accumulation and growth phase and have much longer to build and compound their wealth and time on their side for market ups and downs. This group could be more aggressive in their allocation strategy. A person much closer to retirement is more in the preservation phase with less time on his or her side for market fluctuation, so that person would be more conservatively invested. (AP): When I work with younger clients, we are often focused on protecting their income from death or disability through insurance. The ability to earn is a young person’s most valuable asset. For someone at the end of his or her career, the focus shifts to protecting his or her investment assets—this includes determining a conservative, sustainable retirement income; taxsavvy withdrawal strategies; and planning for estate and transfer taxes.
|7 |
education Longer Life
& Life Insurance Terence L. Horan, CLU, ChFC President & CEO Terry leads an energetic and focused team to deliver the most current and comprehensive health, wealth and life services. HORAN’s professionals help solve the two greatest challenges facing Americans today: access to affordable health care through the bridge of insurance and managing assets to support a long retirement and transfer to the next generation.
Today, life expectancy at birth is 78.8 years. More importantly, the life expectancy is a shared experience enjoyed by rich and poor alike. Some say the first person to live to 150 years old already has been born. But while we are living longer, so are our parents and the financial issues are profound. This is a paradigm shift, and our financial and social structures are not yet prepared for this improvement in longevity. Simple examples are the two primary government entitlement programs, Social Security and Medicare. These programs are funded in a manner that did not anticipate this rapid shift in longevity. As a result, the programs are facing deficits, and the specter of the trust funds supporting them is running completely out of money. While we earnestly wish our federal government would establish processes to “fix” these programs, the legislative and executive branches of the government seem unable to address the issues. Their lack of action requires us to create our own safety nets.
THE SANDWICH GENERATION AND THE CARE GAP
While we all hope for a quick death free of health care expenses, it is not usually reality. Seven out of 10 Americans incur long term care expenses. Furthermore, families are exposed to $71 out of every $100 spent in long term care, a cost in excess of $500 billion every year. In the past, much of this cost was borne by the family in the form of taking care of an elderly parent at home. But the rise in divorce and increasingly mobile families does not offer the same guarantee as in the past that this care will be available or affordable. As parents live longer, their children will be old themselves when this form of care is needed. According to the Pew Research Center, older
health. wealth. life.
boomers (60 years of age and older) are helping adult children 47% of the time and concurrently providing support for older parents 73% of the time. This creates a generation sandwiched between two others needing their financial support.
CAN LIFE INSURANCE BE AN EFFECTIVE SAFETY NET?
Families and their advisors might consider the use of a life insurance portfolio as a tool to offset the long term care expenses that occur for seven out of 10 Americans. Life insurance is an asset that can be kept and used to provide a backstop against the anticipated expenses of a long retirement and can supplement government benefits that may be curtailed. The most basic use of life insurance is easily understood: to provide a lump sum benefit paid at death that is free, private and outside of probate. The death benefit of a life insurance policy offsets the costs of a long term illness. Unlike traditional long term care products that offer a benefit if a long term illness occurs, life insurance offers a benefit (tax free) when death occurs. Death benefits can replenish the estate for large medical expenses incurred in the last months or years of life. If a source of funds is needed before death, life insurance presents several options. Some life insurance policies come with an Accelerated Death Benefits (ADBs) provision. The ADB offers a cash advance on your life insurance policy’s death benefit if you are terminally ill, need long term care service for an extended period of time or are confined to a nursing home incapable of performing activities of daily living. Often the policy has a cap of 50% of the death benefit; however, some policies allow you to use the full amount of the death benefit. The cash value of a whole life or variable life policy can provide two sources for long term care expenses: • Tax free withdrawals up to basis • Policy loans that do not impair the stability of the policy. This is a sophisticated strategy that requires quality, ongoing advice offered by an active financial planning team. Permanent life insurance can have a role in retirement even if its original purpose of replacing earned income is no longer needed. Cash value, accelerated benefits and ultimately the death benefit can be integral parts of creating your personal safety net to protect against the additional costs of longevity. Additionally, it protects against “sandwiching” the next generation as a result of a long life.
| 8 |
™
Forget Your Password...
Think P@ssPhrase
Christopher Cook, CFP® Vice President Chris focuses on providing clients with comprehensive financial planning and investment strategies. As a CFP® and a fiduciary, he assists individuals and families with retirement income analysis, tax planning, risk management and asset allocation.
Ever wonder how long it would take a seasoned hacker to break your password? Number of Characters
Uppercase or Lowercase
Uppercase or Lowercase Letters with Numbers
Uppercase or Lowercase Letters with Numbers & Symbols
According to the Bureau of Justice Statistics, an estimated 17.6 million people, or about 7% of the U.S. population age 16 or older, were victims of at least one incident of identity theft in 2014, the most common being an unauthorized use or attempted misuse of an existing account; for example, fraudulent charges appearing on your bank or credit card statement.
5
Instantly
Instantly
Instantly
6
8 seconds
3 minutes
13 minutes
7
5 minutes
3 hours
17 hours
8
3 hours
10 days
57 days
The data also shows that the older you are and the more money you make increases your odds of being targeted for identity theft. In 2014 the number of identity theft victims age 65 or older increased to 2.6 million people, up from 2.1 million in 2012. Also, the study by the Bureau of Justice Statistics found that people in households with an annual income of $75,000 or more had the highest prevalence of identity theft compared to others in lower income brackets.
9
4 days
1 year
12 years
10
169 days
106 years
928 years
11
16 years
6,000 years
71,000 years
12
600 years
108,000 years
5 million years
The number of victims is growing because in today’s world of online banking it’s increasingly easier for thieves to gain access to millions of people’s bank information, credit card numbers and other financial data. From here the thieves will spend hours and even days attempting to crack passwords to gain access to your private information. In these instances you want to be a hard target. What I mean by this is when you hear on the news about thieves stealing thousands of people’s usernames and passwords from big financial institutions that data is still encrypted. Now the hackers will spend days trying to unencrypt as many usernames and password combinations as possible. Don’t be an easy target. To mitigate your risk of having your financial data stolen, try to create strong online passwords and stay away from obvious passwords like “123456”. Contrary to popular belief, a strong password has more to do with length of characters than it does the combinations of letters and numbers. Think “passphrase” instead of password.
Focus on how many characters your password is, not how many combinations of letters and numbers. For example: Weak Password: Sc0ut—This password is only 5 characters long, but it is using uppercase and lowercase letters and a number. Although, one might think this is a relatively secure password, with today’s modern technology it can actually be hacked almost instantly. Strong Passphrase: My60He@lth (My 60 Health)—While complicated in writing, but potentially easier to remember mentally, this passphrase is 10 characters, includes uppercase and lowercase letters and contains numbers and a symbol. It would take today’s modern technology approximately 928 years to crack this password.
Interested in learning about other ways you can protect yourself against identity theft? Visit www.horanassoc.com/wealth-management/ articles-of-interest.
| 9 |
education How the DOL Uses Form 5500 to Target Your Plan for Audit 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.
Twenty-five years ago a team of U.S. Department of Labor (DOL) Employee Benefits Security Administration (EBSA) field personnel (mostly auditors or investigators) would travel twice a year to their respective Internal Revenue Service (IRS) warehouses. Their goal was to review the latest Form 5500 filings and bring back a potential case load for the entire office for the next six months. Each individual would sift through thousands of pages during the week, looking for nuggets of potential ERISA violations.
Times have changed. Plan sponsors file Form 5500s directly with the DOL, not the IRS. They also now file electronically, not in hard copy. Field personnel no longer travel to warehouses to rummage through filings; they now run pre-written algorithms from their computers to locate plans with a higher-than-average probability of ERISA violations. A former DOL senior investigator, now retired, recently commented to me, “I loved plans with closely held employer stock. I was almost guaranteed to find a violation.” This quote simply reinforces the DOL’s love affair with Employee Stock Ownership Plans (ESOPs), especially ESOPs with closely-held employer stock. But there are several other items on the Form 5500 Schedule H that are especially attractive to the DOL.
The most common audit triggers from Form 5500 filings
health. wealth. life.
From the Asset and Liability Statement: • Partnerships/joint venture interests • Real estate: All of it including “Other than employer real property,” “Employer real property,” AND “Building and other property used in plan operation” • Loans (other than to participants) • “Other” • Any report of liabilities, with the possible exception of “Benefit claims payable” From the Income and Expense Statement: • Non-cash contributions • Interest from loans (other than participants) and “Other” • Rents • Unrealized appreciation or depreciation from real estate or “Other” • Other income • Interest expense • Administrative expenses—all of them Each of the items listed above can indicate fiduciary and/or prohibited transaction violations of ERISA. Any entry in a category or subcategory described as “Other” will most likely cause the DOL to pull the complete Form 5500, including the Accountant’s Opinion and Report, for further explanation. While the entry coded “Other” may be explained away simply in the Accountant’s Report, the plan has hit the DOL radar. Completing the Form 5500 as accurately as possible goes without question. The key to remember is the Form 5500 is a snapshot of how the plan is operating, how the plan’s assets are being invested and how much the plan is paying for services. Effectively, the Form 5500 provides the DOL with a glimpse of the fiduciary actions taken throughout the year, by the plan sponsor(s) and by others.
1
2
3
4
Reporting a failure to transmit participant contributions on a timely basis.
Reporting a nonexempt transaction with a party in interest.
Reporting a loss to the plan caused by fraud or dishonesty.
Reporting assets or non-cash contributions whose values were not readily determinable on an open market or set by an independent appraiser.
| 10 |
community HORAN Celebrates Region’s Health Care Heroes The Cincinnati Business Courier held its annual Health Care Heroes award celebration on February 26. The event honors people who make an impact on health care in our community through their concern for patients, their research and inventions, their management skills and their service to the poor and uninsured. Terry Horan, President and CEO of HORAN, presented Dr. Robert Smith with the Lifetime Achievement award. Dr. Smith joined the University of Cincinnati College of Medicine in 1975 as the first director of the Department of Family and Community Medicine, which he led until 1991. He also founded family medicine departments at the University of North Carolina at Chapel Hill in 1970 and Guy’s Hospital Medical School at London University in 1963. He began his career as a general practitioner in England. HORAN was proud to participate as a silver sponsor and support the event for the fourteenth year. Pictured (left to right): Dr. Robert Smith, his wife Myfanwy, and Terry Horan.
HORAN Presents Check for 2016 Xavier University’s HORAN Free Throw Scholarship
™
HORAN Proud to Offer Scholarships to Students of The Christ College of Nursing & Health Sciences HORAN is proud to continue the HORAN Scholarship for The Christ College of Nursing & Health Sciences. The year 2016 marks the seventh year of HORAN’s 10-year scholarship commitment. The Christ Hospital School of Nursing & Health Sciences was established in 1902. Over the last 112 years, the school has evolved along with the health care industry to meet the needs of the Greater Cincinnati region. The Christ Hospital School of Nursing & Health Sciences has graduated more than 6,000 registered nurses. The school’s motto, Summo Commisso Missi, On Highest Mission Sent, serves as an inspiration for its students and graduates upon entering the workforce. Past scholarship recipients include: Judith Ann Boger Lauren Jane Buxton Rita J. Clay Richard Leonard Ernst Gabrielle Rose Geraci Randall Paul Haas Amela Pampur Kiersten Denise Schaefer
HORAN employees and their families proudly present 2016’s HORAN Free Throw Scholarship check in front of an audience of thousands at the Xavier University Cintas Center. We believe we have a responsibility to serve our region as a good corporate citizen to create strong communities that increase the economic vitality and quality of our neighborhoods. As a company and individually, we support initiatives that educate, enrich and heal.
Amanda Sue Wilson Barbara G. Winters
| 11 |
client feature
HWL • CLIENT FEATURE
WELLNESS WORKS
RELADYNE’S COMMITMENT TO EMPLOYEE WELLNESS HEADQUARTERS Cincinnati, Ohio
KEY PERSONNEL Larry Stoddard Chief Executive Officer Walt Rodgers Vice President of Human Resources Krista Somershoe Human Resources Generalist
INDUSTRY Lubricant Sales, Distribution and Equipment Reliability Services
NUMBER OF EMPLOYEES 500+
YEAR FOUNDED 2010
health. wealth. life.
RelaDyne, Inc., headquartered in Cincinnati, Ohio, and established in 2010, is a leader in the lubricant sales, distribution and equipment reliability services industry. Over the past six years RelaDyne has grown astronomically, organically and through acquisition. Driven by the Chief Executive Officer and the company’s leadership, they believe that they are in the people business. The company’s associates are instrumental in the success of RelaDyne. As a result, RelaDyne made the decision to implement an employersponsored wellness program in 2011 to invest in its associates.
health is a key component to being successful in our environment. We believe the healthiest associates are best able to live our mission.” With the guidance and support of the HORAN team, RelaDyne has been able to design, build and implement a strategic wellness program in only five years. RelaHealth is comprised of many components including yearly health screenings, semiannual mini health assessments, wellness challenges and a significant yearly incentive
Bottom line: everyone’s good health is important. Our associates are our most valuable asset. The objective is for them to play an increased role within RelaDyne by engaging actively in the management of their overall health. —Larry Stoddard, Chief Executive Officer at RelaDyne
The program is branded as “RelaHealth.” It is available to all associates, both full-time and part-time, whether they are on the company’s health insurance plan or not.
to encourage associate participation. The main focus of these components is health awareness and preventive care.
“We need our associates to be the best they can be. In the distribution industry so much of our business is based on service and relationships,” said Krista Somershoe, Human Resources Generalist at RelaDyne.
“We rely on HORAN to be our support system for ideas, benchmarking and strategy for our entire benefits platform including wellness,” said Rodgers. “Anthem, our medical provider, has been a great partner by providing health coaching and benchmarking. Interactive Health, our wellness partner, helps us measure our aggregate biometric results and provides additional health coaching opportunities for our associates.”
Walt Rodgers, Vice President of Human Resources at RelaDyne, agrees, “Personal
Somershoe admits that it can be somewhat challenging to communicate about all of
The executive team views RelaHealth as an important part of its business strategy.
| 12 |
™
“Our drivers have to pass a fitness test in order to renew their commercial driver’s license (CDL). If CDL drivers go to take a fitness test and have diabetes sugar to the degree of needing insulin, they will not pass their test and won’t be able to drive. They wouldn’t be able to work for us or anyone without passing their CDL physical,” said Somershoe. “In a perfect world you learn about your population’s aggregate biometric numbers in order to improve, but in our drivers’ situation, these numbers can affect their livelihood.” As a result of this unique “why,” RelaDyne is determined to continue to make great strides in its wellness journey by potentially extending its reach to spouses and other dependents in the upcoming years.
Pictured: Team members of the RelaDyne Houston location participating in a marathon.
RelaHealth’s components to its 34 locations nationwide. In order to combat this challenge, RelaDyne has identified specific associates to be “wellness champs.” The wellness champs are responsible for communication and engagement of associates at their assigned worksites. Somershoe says the wellness champs are engaged on a monthly basis and sometimes more frequently during certain times of the year (e.g., during a wellness challenge). Another obstacle is that not all associates are able to receive email communication at their job location. As a result, RelaDyne has to get creative when communicating with associates about wellness, including talking with drivers and other associates during lunch breaks. The company also demonstrates creativity in the way the executive team encourages associates to participate in wellness challenges. The organization purchased
Fitbit devices in bulk at a discounted price to offer to their associates for RelaDyne’s first walking challenge. They also provided an additional subsidy to help cover a large portion of the cost.
“Bottom line: everyone’s good health is important. Our associates are our most valuable asset. The objective is for them to play an increased role within RelaDyne by engaging actively in the management of their overall health,” said Larry Stoddard, Chief Executive Officer at RelaDyne. Rodgers adds, “A wellness culture should be everywhere and in everything, not just shown by the Fitbits on our arms or the posters on the walls—it should exist in the core of what we do. We will know our company is fully engaged in wellness and operating on all cylinders when our biggest cheerleaders are a large majority of our associates and their families.”
Associates were able to select the Fitbit device of their choosing at the discounted rate. The executive team also offered the option for associates to deduct the cost of the Fitbit from their paycheck over multiple pay periods. In addition to RelaHealth’s creative initiatives, leadership believes the program also is unique because many companies don’t have as big of a “why” (a reason to have a wellness initiative).
Scott Silver, Health Management Director at HORAN, works directly with clients like RelaDyne to create customized wellness plans built around their specific organizational and employee needs. Scott 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.
| 13 |
client feature
HWL • CLIENT FEATURE
Client Spotlight: Wright-Patt Credit Union
WRIGHT-PATT CREDIT UNION HEADQUARTERS Beavercreek, Ohio KEY PERSONNEL Douglas A. Fecher President and Chief Executive Officer INDUSTRY Finance NUMBER OF EMPLOYEES 750 YEAR FOUNDED 1932
health. wealth. life.
Investing Today for a Better Tomorrow Wright-Patt Credit Union’s history began in 1932 at the Wright-Patterson Air Force Base, then called Wright Field. That year one of the employees at a machine shop located at Wright Field fell ill and could no longer work. As a result, he stopped getting paid and could no longer support his family. The Great Depression and the collapse of the country’s banking system left the worker with no place to go for financial help. His co-workers started collecting money by taking a few cents out of each paycheck to lend to the man while he could not work. Through this funding, the man was able to provide for his family during his illness. When the man returned to work the employees continued to take money out of each paycheck and put it in a shoebox they kept in the nurse’s office. If one of the workers ran short on money he or she was able to borrow from the box and pay back the amount taken when he or she had the money. The employees thought of it as a way to help co-workers during times of need and called it a “sunshine fund.” Fast forward to the present day. Wright-Patt Credit Union still operates under the same premise: a group of people who pool their resources together to provide each other with financial services.
| 14 |
™
Over the past 84 years, Wright-Patt Credit Union’s footprint has tremendously outgrown the shoebox in the nurse’s office. The member-owned, not-for-profit financial cooperative now serves 322,000 members from 31 locations spanning from Franklin County to Hamilton County. Douglas A. Fecher, President and Chief Executive Officer (CEO) at Wright-Patt Credit Union, has led the cooperative’s growth for the past 16 years. When Fecher was selected as CEO, Wright-Patt Credit Union had $500 million in assets. The cooperative has since skyrocketed to $3.2 billion in assets.
Fecher’s main focus is on Wright-Patt Credit Union’s vision: “to be the best organization our members have ever experienced and the best place our partneremployees have ever worked.”
Pictured: Douglas A. Fecher, President and Chief Executive Officer at Wright-Patt Credit Union.
This vision is rooted in the cooperative’s three-stakeholder model. The three stakeholders are the credit union members, the partners (Wright-Patt Credit Union employees) and the credit union as an organization.
get every product that we offer somewhere else. What they can’t get anywhere else is our people,” said Fecher. “We invest a lot of time, effort and energy trying to make this the best place our employees have ever worked.”
“We don’t consider any one of the stakeholders as being more important or less important than the other two. We run the credit union so that the value produced by the organization serves all three stakeholders as equally as possible,” said Fecher. “The better we take care of members, the better members will take care of Wright-Patt Credit Union. And the better members take care of Wright-Patt Credit Union, the better Wright-Patt Credit Union can take care of us as employees. This ‘Circle of Service’ is the driver of everything good that happens at Wright-Patt Credit Union.”
Wright-Patt Credit Union’s dedication to the region extends beyond its members and employees. The organization announced the Wright-Patt Credit Union Sunshine Foundation in October 2015. The Foundation benefits nonprofit organizations that support financial health and wellness initiatives for the well-being of families, children and the military. Wright-Patt Credit Union hopes to raise $200,000 by the end of June 2016. “We measure our success based on how many people we are able to help each day,” said Fecher.
As a financial services provider, Wright-Patt Credit Union is dedicated to helping its members and partners improve their financial health. The cooperative provides financial education workshops and partners with best-in-class vendors and financial technology providers to offer value-added products and services. “There are three categories of financial health individuals can fall into: healthy, coping and vulnerable. Right now we are in the process of understanding the financial health of our members and our partners,” said Fecher. “Our motto is save better, borrow smarter and learn a lot. We want to teach people how to better manage their money in order to be more resilient in the future.” Providing a strong employee benefits package and educating about health and retirement benefits is also part of WrightPatt Credit Union’s initiative to improve employee financial health. “Our competitive advantage is our people; our members can
Erik Freudenberg HORAN’s Health Benefits Relationship Manager for Wright-Patt Credit Union
Judi Meyer HORAN’s Health Benefits Account Manager for Wright-Patt Credit Union
Rachele Wolf HORAN’s Retirement Plan Advisor for Wright-Patt Credit Union
HORAN advocates for clients to maximize benefits, minimize costs and improve physical and financial wellness. They work to identify and understand clients’ organizational challenges and then collaborate to put strategies in place that will achieve their desired outcomes. HORAN’s Client Service Model provides exemplary service and commitment. A dedicated team provides custom solutions to clients and their employees leveraging the deep experience, skills and expertise of the benefits team.
| 15 |
™
PRESORTED FIRST CLASS MAIL U.S. POSTAGE PAID CINCINNATI, OH PERMIT NO. 394
4990 East Galbraith Road Cincinnati, Ohio 45236
The Flying Pig Marathon inspires all of us to “Get Moving.” As a part of our ongoing commitment to wellness, 17 HORAN employees participated in the 18th Annual Flying Pig.
®
CORPORATE HEADQUARTERS
DAYTON
COLUMBUS
KENTUCKY
4990 East Galbraith Road Cincinnati, Ohio 45236 513.745.0707 800.544.8306
2480 Kettering Tower 40 North Main Street Dayton, Ohio 45423 937.610.3700
5650 Blazer Parkway, Suite 100 Dublin, Ohio 43017 614.734.8406
Columbia Executive Center 207 Grandview Drive, Suite 100 Fort Mitchell, Kentucky 41017 859.572.4500
www.horanassoc.com