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Summer 2015
health. wealth. life.
In Pursuit of What Matters Most.
Summer 2015 CO N T E N T S PAGE 3 – A Letter from Terry Horan, President & CEO PAGES 4 & 5 – Wellness Works: Cincinnati Eye Institute PAGE 6 – Optimizing Choice in Vision Benefits PAGE 7 – Are You Department of Labor Audit Ready? It’s Not a Matter of If; It’s When PAGE 8 – Q & A with Dr. Abdur Chowdhury, Chief Economist at Capital Market Consultants PAGE 9 – The Life Insurance Component of Financial Wellness PAGE 10 – HORAN Develops Extensive Educational Calendar with Opportunities in Areas of Health, Wealth & Life PAGE 11 - Redefining Neighborhoods with Purpose Built Communities PAGE 12 – HORAN Congressional Representative Brad Wenstrup Speaks with Employees About Current Issues Americans Are Facing HORAN Wins 2015 Dayton Healthiest Employer Award for Second Year in a Row Congratulations to the 2015 HORAN Scholarship Recipients! PAGE 13 – Tri-State Warbird Museum Hosts Taking Flight Gala to Honor Veterans A Special Salute to our HORAN Family Veterans PAGES 14 & 15 – Client Spotlight: Hilltop Basic Resources, Inc.
Please join us in welcoming our new corporate clients! - Field Aviation - American Risk Services - TKM United States - Parking Company of America - Rittal Corporation - Children’s Home of Northern Kentucky
- Senior Services of Northern Kentucky - Prolink Staffing Services - Mason City Schools - Force Control Industries, Inc. - Joseph Automotive Group - Retina Physicians & Surgeons, Inc.
Cover: The Tri-State Warbird Museum acquired the plane on the front cover to honor the military service of John Steele Sr. John served as a TBF Naval Aviator during World War II from 1943 to 1945 and was stationed in the Pacific Theater. He flew TBM torpedo bombers exactly like the aircraft pictured on the front cover of the magazine. John serves as Vice Chairman of HORAN client Hilltop Basic Resources, Inc. HORAN would like to thank John for his bravery and service to our country.
EDUCATION CALENDAR August 19 The Proper Foundation for a Successful Wellness Program (Dayton) August 20 Small Business Solutions Roundtable (Cincinnati) August 20 Premium Financing and Policy Loans (Cincinnati) August 25 10th Annual Ohio Employee Health & Wellness Conference — Scott Silver Workshop (Columbus) August 27 Interactive Workshop: Populating Forms 1094 and 1095 (Cincinnati & Dayton) September 23 Addressing Your Company’s Wellness Priorities (Cincinnati) October 8 Estate Planning for Clients & Advisors (Cincinnati) October 14 An Insider’s View to Investing (Cincinnati) October 22 Department of Labor’s Key Focus Areas for Health Plans and Retirement Plans (Cincinnati)
Photo credits: Greg Kroeger, Director of IT & Facilities at HORAN, front and back cover. Tri-State Warbird Museum photo of John Steele Sr. on the left.
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A letter from Terry Horan
In Pursuit of What Matters Most. Thank you for reading this quarter’s HORAN magazine. The front cover serves as a reminder that the month of August is the 70th anniversary of the ending of World War II. John Steele Sr. is one of the remaining heros that helped the Allies win the war. The plane on the front cover is the same model of aircraft he flew during the war. The Tri-State Warbird Museum acquired this plane to commemorate John’s service. You can read more about his family’s company, Hilltop Basic Resources Inc., in this quarter’s client spotlight article. Many of us at HORAN celebrated the 70th anniversary of the ending of the war at the the Tri-State Warbird Museum in Clermont County where we were able to meet and listen to the brave story of Congressional Medal of Honor recipient Master Sergeant Leroy A. Petry. More of our clients are asking about wellness and employee health management programs. You can read about the success of Cincinnati Eye Institute and how they won the Cincinnati Healthiest Employer award two years in a row in the Wellness Works section. HORAN sponsored a presentation given by Carol Naughton at the Cincinnati Chamber of Commerce. She discussed the rebuilding of East Lake Village in Atlanta and the relationship between poor physical health and poverty as well as the model that was utilized to break the cycle of poverty. Dr. Abdur Chowdhury visited with our clients to provide his investing perspective and an economic update. Dr. Chowdhury and his company provide us with investment analysis to assist our portfolio managers. We were able to interview him prior to his presentation—his comments appear in this issue. Additionally, Congressman Brad Wenstrup visited our office to provide a Washington update on the Affordable Care Act and the possibility of tax reform in the near future. We hope that you enjoy this issue and the rest of your summer. Sincerely,
Terence L. Horan, CLU, ChFC President & CEO of HORAN TerryH@horanassoc.com
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WELLNESS WORKS
CINCINNATI EYE INSTITUTE FOCUSES ON WELLNESS HEADQUARTERS Cincinnati, Ohio KEY PERSONNEL Clyde Bell Chief Executive Officer Karen Maxwell Vice President of Human Resources and Managed Care Tricia Toft Staff Development Manager INDUSTRY Ophthalmology NUMBER OF EMPLOYEES 500+ YEAR FOUNDED 1945 AWARDS & RECOGNITION Cincinnati Business Courier Healthiest Employer Finalist 2012, 2013/Winner 2014, 2015; American Heart Association Fit-Friendly Gold Achievement 2013, 2014
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The Cincinnati Eye Institute (CEI) is one of the largest private ophthalmology practices in the country. CEI has served the Greater Cincinnati area for more than 70 years.
CEI used a $20,000 wellness budget to jumpstart its wellness program. The money went to incentive prizes for participation, aerobics and yoga classes, fruit delivery, pedometers, and speakers, all of which helped garner support from employees.
Patients come to CEI from all over the world to receive care in ophthalmologic specialties that include comprehensive “Years ago, we started raising awareness of ophthalmology, urgent care, vitreoretinal health costs and the importance of adopting diseases and surgery, laser vision correction healthy habits,” said Maxwell. “Over the (LASIK) surgery, cornea and external disease/ last several years our wellness program refractive surgery, cataract surgery/anterior has gained strength and morphed into the segment reconstruction, glaucoma and Working on Wellness (WOW) Program.” ophthalmic plastic A robust wellness program, supportive physicians and reconstructive surgery/orbital leadership team and engaged employees have propelled and cosmetic CEI to wellness success. The Cincinnati Business Courier surgery.
named CEI a Cincinnati Healthiest Employer finalist in
“We are in the 2012 and 2013, and winner in 2014 and 2015. health care business and we focus on the health of our patients,” said One of the key components of the WOW Karen Maxwell, Vice President of Human Program is its focus on metabolic syndrome. Resources and Managed Care at CEI. “It is Tricia Toft, Staff Development Manager just as important to focus on the health of at CEI, developed a Go Healthy Scorecard and Know Your Numbers campaign to our employees.” emphasize the importance of metabolic syndrome measures (waist circumference, STARTING ON A GOOD FOOT blood pressure, triglycerides, cholesterol and CEI began its wellness program in 2006 to glucose). help control health care expenses after a few years of increased renewals. A good “Our scorecard is a real success story, with portion of its health care expenses were participation growing each year,” said Toft. related to ailments resulting from poor “While the focus on the four main areas, health habits. which include health screenings, nutrition, volunteering and fitness, hasn’t changed, The more CEI learned about wellness the activities and points associated with the programs, the more its strategy shifted activities have changed to keep things fresh toward overall wellness.
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of wellness activities. Weekly wellness communications are sent to employees with information related to nutrition, fitness and the importance of health screenings. In 2014, the CEI wellness program took center stage. One of the goals in the company wide incentive program was to improve the wellness profile such that 82% of employees passed at least three of the five metabolic syndrome measures. CEI surpassed that goal—85% of the staff passed three of the five measures. CEI is thankful for its wellness partners who helped solidify its corporate wellness culture. Pictured left to right: Tricia Toft, Staff Development Manager, and Karen Maxwell, Vice President of Human Resources and Managed Care, at Cincinnati Eye Institute.
and develop healthy habits. Our scorecard requires an annual physical before any other points are awarded.”
ADDING CONVENIENCE TO INCREASE PARTICIPATION CEI saw a significant increase in participation between 2012 and 2013. In 2012, 98 employees received a physical or biometric screen. In 2013, the number of employees who received a biometric screen increased to 338. “The number of employees who have had physicals or biometric screens has tripled since 2012 because we added the convenience of onsite annual screenings,” said Toft. “The annual screening allows our employees to see positive changes in their health from year to year and increases participation in our exercise and nutrition programs.” Another way CEI was able to increase engagement was tying discounts for both participation in wellness activities and the outcomes of wellness screenings.
The two-pronged approach offers discounts on health premiums for being a nonsmoker, getting a biometric screening or physical and/or passing three out of the five metabolic syndrome measures. The total dollar amount at stake is nearly $2,000 in premium savings.
RECOGNITION AS A CINCINNATI HEALTHIEST EMPLOYER Increased employee engagement has allowed the CEI WOW Program to become embedded in the corporate structure. The WOW Committee, consisting of employees from various areas of the company, meets regularly and each year develops a calendar
“HORAN has been our partner in this endeavor from the beginning,” said Maxwell. “They’ve provided solid advice and great resources and have been a trusted sounding board when brainstorming new ideas.” A robust wellness program, supportive physicians and leadership team, and engaged employees have propelled CEI to wellness success. The Cincinnati Business Courier named CEI a Cincinnati Healthiest Employer finalist in 2012 and 2013, and winner in 2014 and 2015. “Wellness is part of everyday life at CEI,” said Toft. “We definitely walk the talk.”
Brandon Christin, Health Management Director at HORAN, works directly with clients like Cincinnati Eye Institute (CEI) to create customized wellness plans built around their specific organizational and employee needs. Brandon utilizes the HORAN Health Management Way to provide a focused, strategic approach to help clients manage and improve their employees’ health to positively control the cost of health care. Utilizing his 12 years of experience in the health and fitness industry, Brandon engages in wellness research and analysis and leads HORAN’s Health Management education for clients.
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OPTIMIZING CHOICE IN VISION BENEFITS Shannon Schumacher Director—Employee Benefits Shannon joined HORAN in March 2008 with eight years of experience in the employee benefits industry. Shannon initiates strategic planning with employers to design a plan benefit package to match their needs. Involved in the entire plan design, Shannon negotiates with carriers and investigates discounts through member organizations to deliver the most cost-effective plan for your benefit dollar.
Shannon wrote an article entitled “Optimizing Choice in Vision Benefits“ for California Broker magazine. The article appeared in the June 2015 edition of the publication. Shannon’s article discusses the enrollment process for vision benefits, deciding on a plan that fits your employees’ needs and industry trends. Below is an excerpt from the article.
We all value having choices. Just walk down the barbecue sauce aisle at the grocery store and see how many options you have. Our life is dictated by the choices we make: what to eat, what to wear, what to drive, where to live, where to work and what time to go to bed. It’s one of the best things about being an adult. But choice can also complicate matters. Choice is increasingly relevant in our business. But choice can muddy the waters if it’s not handled properly. That’s why it’s our responsibility, if not our duty, to educate employers and employees so they make the right choices for themselves, their companies and their loved ones. What good are options if you don’t have the information necessary to evaluate them? Having a choice without having any educational tools is like reaching in a hat and pulling out a benefits plan. Luckily, because we have the tools at our disposal to educate employers and employees, they don’t have to play a guessing game. Let’s use vision benefits as a case study. Employers have the choice of whether to offer it. Employees have the choice of whether to enroll. Increasingly, it’s a choice they want to make. More often than not, they’ll sign up if it’s offered. Also, vision has a bit more of a consumer feel. People use the benefit for eye exams and to shop for frames and lenses. If we are going to continue to offer more choices, we need to guide benefit holders through the selection process. We have the knowledge and the tools to help, but we also have the responsibility.
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There are a number of teachable moments and tools to provide guidance from the time an employee enrolls in a plan until the time he or she walks out the door with new eyewear. 1. Enrolling: Many of the employer groups I work with used to view benefits education as a once-a-year event. It has now become important to keep employees educated about changes on the horizon. Employees are more interested in their benefits, which we view as a good thing. We want employees to become better consumers of their own health care. 2. Deciding on a plan: This used to be a no-brainer in vision. If your employer had a plan, you decided whether you wanted it. In some instances, your employer might have a high-low plan. But in recent years we’ve seen the advent of new multi tier plans that offer a basic option and a premium option. 3. Finding where to go: Provider locations are nothing new, but they are becoming more sophisticated. They are on mobile devices and have become more easily sortable. Vision benefit holders can adjust their search based on location, network, provider type, products and brands. Think of it as Amazon for your vision care. 4. Online shopping: In the past, the only way to see what frames looked like was to try them on in the store. Now, various online providers allow employees to upload a photo and try on glasses virtually. These are just some of the educational tools we should promote. There are more online capabilities on the horizon including new discounting options, cost comparisons and wellness initiatives.
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ARE YOU DEPARTMENT OF LABOR AUDIT READY?
IT’S NOT A MATTER OF IF; IT’S WHEN Paul Carl Vice President Paul works with corporations and individuals to deliver investment and retirement planning solutions. The expertise he gained as a Senior Investigator at the Department of Labor facilitates his ability to deliver consultative insights on regulatory compliance.
Every year, federal government agencies identify thousands of ERISA-governed plans for audit. These agencies include but are not limited to the Department of Labor (DOL), the Internal Revenue Service and the Securities and Exchange Commission. Thus, it’s almost no longer a matter of “if” an employee benefit plan sponsor will encounter an audit but “when.” The Employee Benefits Security Administration (EBSA) is just one agency of the DOL. EBSA has civil and criminal jurisdiction over retirement plans and their fiduciaries through Title I of the Employee Retirement Income Security Act (ERISA). EBSA reports total agency monetary results, which topped $823 million for 2014. Whether criminal or civil, the possibility of being found non-compliant is very real. EBSA further reported that 65% of closed civil investigations were “closed with results.” Common audit triggers for employee benefit
plans include: • Enforcement initiatives • Employee or participant complaints • Annual report Form 5500 filings Enforcement initiatives focus on areas that have the greatest impact on protection of plan assets and participant benefits. EBSA has several national enforcement projects underway, including: • Contributory Plans Criminal Project (CPCP) • Fiduciary Service Provider Compensation Project • Health Benefits Security Project • Voluntary Fiduciary Compliance Correction Program But the vast majority of EBSA leads are triggered from an employee benefit plan participant or beneficiary complaint. Of the nearly $600 million in fiscal year 2014 recoveries, 59% (or more than $356 million) were monetary benefit recoveries from informal complaint resolution. Employers should make every effort to ensure that their employees not only receive all required notices but also understand these notices.
Once EBSA receives an inquiry, that inquiry has the potential to trigger a more formal investigation. Most often, the inquiry is resolved with a single phone call. For those not quickly resolved, the DOL may conduct an internal review of Form 5500. Pending the responses of the inquiry, a formal on-site investigation could also unfold. This results in additional requests for detailed documentation as well as interviews of plan sponsor personnel. If the DOL is looking at the employer’s retirement plan, there’s a high probability it will review the employer’s welfare plan, and vice versa. While no two investigations are alike, there are typical questions asked of and documents requested from employers. Building a “DOL File” can take two to four weeks of gathering pertinent plan-critical documents. A “DOL File” creates a central location and maintains accurate and current employee benefit plan information. Proactivity on the employer’s part can often minimize or even negate the impact of the DOL activity.
In the 1980s and 1990s, EBSA offices covering the states of Kentucky, Ohio, Michigan and parts of Indiana handled about HORAN is hosting a seminar entitled Department of Labor’s 500 inquiries per year. Today, this same Key Focus Areas for Health Plans and Retirement Plans on geography generates more than 15,000 October 22. Register at www.horanassoc.com if you are annual inquiries. interested in learning more about this topic.
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wealth
Q&A
Dr. Abdur Chowdhury, Chief Economist at Capital Market Consultants, Inc. Tim Powell, AIF®, CFP® Vice President Tim Powell has been in the financial services industry since 1992 and with HORAN since 1997. As a Certified Financial Planner™, he specializes in the area of personal retirement planning and wealth accumulation. Utilizing his expertise in fiduciary oversight, Tim helps manage plans for corporations and individuals to ensure fiduciary standards are met.
HORAN Wealth Management hosted an exclusive event for clients, partners and friends of the firm on Wednesday, May 20, 2015, at New Riff Distillery. The event featured a presentation from Dr. Abdur Chowdhury, Chief Economist at Capital Market Consultants, Inc. and HORAN’s economic research partner. Dr. Chowdhury spoke about the most pressing fiscal issues and discussed the future economic outlook for the global economy. Prior to the event, I was privileged to have Dr. Chowdhury sit down with me for an interview to address some specific questions and concerns voiced by many HORAN clients over the past few years.
TP: We’ve had six consecutive positive growth years in the stock market. What are your thoughts on the U.S. economy continuing this upward trend? AC: I would say for the next six months you will see the stock market increasing, but once the interest rates start going up, more people may switch over their funds to fixed-income vehicles like bonds. This may cause increased volatility. TP: Interest rates are very low right now. How should we invest in the fixed-income environment with such low interest rates? AC: You have to think long term in a fixed-income environment. Interest rates will start going up before the end of the year. As a result of this, there will be higher yields in the bond market. TP: What are the risks of another recession similar to that of 2008/2009 over the next few years? AC: I don’t believe we will have a recession of that magnitude in the next 10 years. The 2008/2009 recession was the worst the United States has seen since the Great Depression. TP: There are two main market categories in international investing: established countries and emerging countries. Where do you see growth occurring in the next year?
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AC: I see more growth occurring in emerging markets of international investing. There may be more volatility, but I do see more opportunity for growth. I think Asian countries, in particular, will do well. TP: Right now more than half of the world’s population is under 30 years of age. How do you see the huge increase of young people coming into the world’s economy affecting economic growth? AC: You see the young population rapidly increasing in emerging markets and populations declining in many developed countries. The increase in the young population means that emerging countries will have an increased labor force and an evolving market.
Pictured: Dr. Abdur Chowdhury speaks to an audience of HORAN clients and friends of the firm at New Riff Distillery.
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The Life Insurance Component of Financial Wellness Anna Pfaehler, CFP® Director of Financial Planning Anna K. Pfaehler helps clients identify and achieve their financial goals pertaining to retirement, funding a child or grandchild’s education, supporting a charity or leaving a legacy. As a Certified Financial Planner (CFP®) her focus is to create a clear picture of the client’s financial health and identify strategies to service any discrepancies. Anna’s expertise includes high-net-worth planning, taxes and planning for unmarried couples.
I have worked with a number of surviving spouses in helping them understand what a loss means to them financially. In the best cases, the survivor can maintain his or her standard of living and does not need to adjust financial goals, like helping his or her children through college. Such results are more likely to be achieved if there are adequate life insurance benefits. Life insurance provides a safety net for an individual, family or business in the event of an untimely death. The world of life insurance can be confusing because there are many options available. There are two main types of life insurance: Term and Permanent. Covering liabilities and replacing a bread winner’s income are the most common applications for life insurance. Some other instances in which life insurance is applicable would be buy-sell agreements between corporate officers, taxable estate issues and charitable intents. Whether Term or Permanent is the appropriate tool depends on your specific goal.
TERM LIFE INSURANCE DISADVANTAGES • • • •
Premiums increase as you get older. Coverage terminates at the end of the term. Renewal may be costly or you may no longer qualify. There are no cash values.
Permanent life insurance provides coverage for as long as the stated premiums are paid and the policy remains in good standing. Permanent life also has a cash value component that appreciates as more premiums are paid into the policy. Some Permanent policies have a variable component in which the cash value may be invested. Permanent, as the name would suggest, is useful when your need for the death benefit does not expire.
PERMANENT LIFE INSURANCE ADVANTAGES • • •
As long as the required premium is paid, protection is guaranteed for life. Depending on the policy, premium costs can be fixed or flexible to meet your needs. The policy accumulates cash value from which you can borrow.
PERMANENT LIFE INSURANCE DISADVANTAGES •
Required premium levels may make it hard to purchase the amount of protection needed.
Each individual has different insurance needs; as such there isn’t a
blank solution that covers all scenarios. It is best to speak with a life insurance advisor with specific questions.
Term life insurance provides a death benefit, with a specified annual premium for a certain number of years. For instance, a 20-year term would provide an individual 20 years of life insurance coverage for a consistent annual premium. Term typically provides the insured with the highest death benefit for the lowest premium. Term is most commonly used among young couples who would like to insure their liabilities such as college tuition for children, mortgages or income replacement.
TERM LIFE INSURANCE ADVANTAGES • •
Initial premiums generally are lower than those for Permanent insurance, allowing you to buy higher levels of coverage at a young age when the need for protection is often the greatest. Good for covering needs that will disappear in time such as mortgages and student loans.
SUBSCRIBE This article appeared on the HORAN Financial Wellness blog. If getting your financial house in order is a goal of yours, we encourage you to read the HORAN blog.
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education HORAN Develops Extensive Educational Calendar with Opportunities in Areas of Health, Wealth & Life HORAN is proud to announce the release of our 2015 Education Catalog, which details our complimentary course offerings from June to December 2015. We understand that knowledge is power. As a result, HORAN is an advocate for ongoing education. Seminars, webinars and interactive roundtable discussions are provided throughout the year to give further guidance as a part of HORAN’s commitment to educate on best practice strategies to support individual and business objectives across health, wealth and life. “HORAN proudly offers many seminars and educational opportunities to regional executives and professionals,” said Terence L. Horan, CLU, ChFC, President & CEO of HORAN. “The industries in which we serve are often seen as complex. We know it is essential for us to be able to provide educational opportunities throughout the year in order to better serve our clients.” From June to December 2015, HORAN is offering more than 20 seminars and webinars. The topics range from international employee benefits to wellness, Department of Labor’s key focus areas for health plans and retirement plans, premium financing and policy loans as well as an insider’s view to investing. In addition to the seminars and webinars, HORAN provides educational newsletters, the HORAN Financial Resource Center, industry blogs and our corporate magazine health.wealth.life. to educate others about two of the biggest challenges facing America today: obtaining access to quality health care and securing professional counsel to build wealth and sustain it for a lifetime. Visit our website at www.horanassoc.com to view HORAN’s 2015 Education Catalog, learn about the educational opportunities HORAN is offering this year and register for the events that interest you. Be sure to check our website throughout the year as more events will likely be added to the calendar. HORAN is committed to being proactive in educating our clients, partners and friends of the firm on timely and relevant topics. As a result, HORAN’s Education Catalog is subject to change. HORAN reserves the right to add and cancel seminars if necessary.
Populating Forms 1094 & 1095
Looking for a copy of the education calendar?
Please contact us at 513.745.0707 to receive a hard-copy edition of the education catalog or visit www.horanassoc.com to view the online version.
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Cooper Creek Event Center 8:00 AM to 10:00 AM and Dayton Racquet Club 11:30 AM to 1:30 PM
Department of Labor’s Key Focus Areas (Cincinnati) Queen City Club 8:00 AM to 12:00 PM
Premium Financing & Policy Loans (Dayton) Dayton Racquet Club 3:30 PM to 6:30 PM
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Redefining Neighborhoods with Purpose Built Communities Did you know that 48.8 million Americans live in poverty? This number is more than the entire populations of Canada, Denmark and Ireland combined. In an effort to educate on the issue of poverty, the Cincinnati USA Regional Chamber of Commerce welcomed Carol Naughton, Senior Vice President of Purpose Built Communities in Atlanta, Georgia. HORAN was proud to sponsor the presentation entitled “The Miracle of East Lake: Turning Atlanta’s Worst Neighborhood into Its Best”. Naughton shared the story of East Lake Meadows, Atlanta, a community that was once an area of concentrated poverty, and how it was transformed.
The Drew Charter School established a cradle-tocollege pipeline when it was founded in 2000. In 2000–01 the school ranked last in the Atlanta Public School system; it is currently one of the state’s topranked schools. Wellness initiatives and support services such as job readiness, after-school programs and recreation programs were made available. “We saw the need to ‘make the healthy choice the easy choice.’ You need recreation opportunities, great food sources, good education, financial education and job training easily accessible. By nature, people often choose the easiest, most convenient path,” said Naughton.
“Money is one of the largest stressors. Teaching people how to become financially secure and watching a goal be realized are very powerful.”
The community wellness initiatives and support service programs also focused on financial education.
—Carol Naughton, Senior Vice President at Purpose Built Communities
Living in concentrated poverty, a neighborhood with more than 30% of residents below the poverty line, often has dire impact on children. Eighty-six percent of third graders living in concentrated poverty read below grade level. Insufficient education leads to a lack of knowledge about personal health. According to Naughton, Health = Education, Health = Income and Health = Neighborhood. Without health a neighborhood is unable to thrive. Environment and behavior account for 60% of premature death. Using this knowledge, a team of philanthropists in Atlanta developed an initiative to transform East Lake. The model’s focus areas included mixed income housing, an education pipeline and wellness. Mixed-income housing ensures high standards in design, development and operation. It also helps attract additional public and private investment to the neighborhood, resulting in destigmatization of a neighborhood.
“Money is one of the largest stressors,” said Naughton. “Teaching people how to become financially secure and watching a goal be realized are very powerful.” East Lake’s model for success was supported by private and public partnerships. It took the team three to five years to get private partners. Their persistence paid off. East Lake and the surrounding community saw approximately $200 million in new private investments in the first 10 years. These investments included a grocery store, bank branches and housing options as well as retail stores and restaurants. Purpose Built Communities was established in 2009 out of the success of the East Lake revitalization. The organization’s purpose was to replicate the East Lake model in other urban areas of concentrated poverty. Purpose Built Communities is working to transform neighborhoods across the country including communities in Indianapolis and Columbus. To learn more information about the organization, visit purposebuiltcommunities.org. Source: Photos provided by Purpose Built Communities.
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community HORAN Wins Dayton Healthiest Employer Award for Second Year in a Row HORAN won the Dayton Business Journal 2015 Dayton Healthiest Employer award. This marks the second year in a row that HORAN has won. The HORAN wellness program began in 2007 and currently has a 100% participation rate in at least one of the wellness program components.
HORAN Congressional Representative Brad Wenstrup Speaks with Employees About Current Issues Americans Are Facing Terence L. Horan, CLU, ChFC President & CEO of HORAN The Honorable Brad Wenstrup, U.S. Representative serving Ohio’s Second Congressional District, visited HORAN on Friday, May 22, 2015, to speak with HORAN employees. His district includes the location of HORAN’s corporate headquarters. Representative Wenstrup spoke about some of the current issues Americans face today including the current state of health care, the future of Social Security and potential estate tax revisions. HORAN employees had the opportunity for a question-and-answer session following Representative Wenstrup’s presentation. Representative Wenstrup is a Cincinnati native and a graduate of the University of Cincinnati. After earning a Doctor of Podiatric Medicine degree from the University of Cincinnati, he established a private practice in Cincinnati and has treated patients for the last 26 years. He served a tour in Iraq in 2005–06 as a combat surgeon and was awarded a Bronze Star and Combat Action Badge for his service. “I have experience as a doctor, Army Reserve officer, Iraq War veteran and small business owner,” said Representative Wenstrup. “I use my personal experience to help Congress tackle the economic and security challenges facing the nation.”
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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 an overall analysis of the wellness data gathered.
Congratulations to the 2015 HORAN Scholarship Recipients! HORAN is proud to offer scholarships to our client community through the HORAN Scholarship Fund. To date, HORAN has contributed upwards of $159,500 in scholarship support to 78 students, representing more than 41 client companies. All scholarship recipients are chosen by the universities based on academic merit and financial need. UNIVERSITY OF CINCINNATI Sarah Lynne Kuhn — Medpace Michelle Mezher — UC Physicians Elizabeth Smith — FECON UNIVERSITY OF DAYTON Gracelyn Key — Cincinnati Metropolitan Housing Authority Mark Lacey — Episcopal Retirement Homes Ian Cundiff — Saturday Knight, Ltd. WRIGHT STATE UNIVERSITY Mahala Howard — Greenville Technology Inc. Brittany Pope — Clermont County Celina Calloway — Wright State University XAVIER UNIVERSITY Tracy Borgemenke — Cornerstone Medical Services Laura DeBrunner — Lakota Local Schools Courtney Ellerbee — Cincinnati Children’s Hospital Medical Center
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Tri-State Warbird Museum Hosts Taking Flight Gala to Honor Veterans The Tri-State Warbird Museum hosted the 11th Annual Taking Flight Gala event on Friday, June 5, 2015. More than 600 individuals attended the gala, which was held at the Tri-State Warbird Museum in Batavia, Ohio. HORAN was proud to sponsor this year’s event. The event featured an aerial demonstration and flight line review, recognition of World War II veterans and guest speaker and Medal of Honor recipient Master Sergeant Leroy A. Petry. Petry is a retired U.S. Army soldier. He was awarded the Medal of Honor for his actions during Operation Enduring Freedom. The Tri-State Warbird Museum’s mission is to connect the lessons of history, freedom, honor and sacrifice for today’s children and generations to come. The museum was established in 2003 to honor veterans as well as to preserve World War II aircraft. More than 1.5 million people have visited the museum since its opening.
Pictured: HORAN employees with Medal of Honor recipient Master Sergeant Leroy A. Petry at the 11th Annual Taking Flight Gala event. Master Sergeant Petry distinguished himself by acts of gallantry and intrepidity at the risk of his life above and beyond the call of duty in action in Afghanistan. Left to Right: Greg Kroeger (Vietnam Veteran), Julie Tople, Master Sergeant Leroy A. Petry and Chris Mihin.
The 12,000-sq-ft hangar and 5,000-sq-ft museum display space are located at the Clermont County Airport. The hangar currently houses nine World War II aircraft, including the airplane pictured on the front of the magazine. To learn more about the Tri-State Warbird Museum, visit www.tri-statewarbirdmuseum.org.
A Special Salute to our HORAN Family Veterans Thank you to all the brave men and women who served our country and to whom we owe our freedom and so much more. Bob Ashe Rob Ashe Art Bender John William Bennett Charlie Bentley Edward A. Bogdan Jr. James W. Brigger David W. Campbell Al E. Carl Paul A. Carl Sr. Patrick Cassidy Edward J. Christin David Conner Kevin Conner Joseph M. Cornella Richard Davis Carl Demarkowski Jerry Duermit Arthur Fionda David Fionda
Ernest Fionda Pearl Fionda Michael Frankey James Gimbel Robert Glazer Charles Ewart Goodman Gregory Hohl Robert Horan Robert Kilmer George Knoblauch Frank Koppenhoefer Greg Kroeger Gary Lakin Stanley Lakin Tom LaPens E. Thomas Meador Kenneth R. Mihin Don Miller Herbert Miller
Ralph C. Nichols Andrew J. Palmier George J. Palmier Robert Paulus Robert S. Paulus Ralph J. Rosenberger William Shultz Evelyn F. Silver James J. Silver Joseph J. Silver Frank Smith Mary Ann Smith William Snow Edmund D. Soule Elmer N. Tentler Clarence Tople Robert E. Tracy Joseph Wilking Chris Winchester
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clients Client Spotlight: Hilltop Basic Resources, Inc.
GENERATIONS OF A FAMILY BUSINESS CONSTRUCTING THE CINCINNATI COMMUNITY HILLTOP BASIC RESOURCES, INC. HEADQUARTERS Cincinnati, Ohio KEY PERSONNEL John Steele Jr. Chairman & Chief Executive Officer Kevin Sheehan President John Steele Sr. Vice Chairman INDUSTRY Building Materials NUMBER OF EMPLOYEES 200 YEAR FOUNDED 1941 RECOGNITION 2006 Tri-State Family Business of the Year Award
health. wealth. life.
The city of Cincinnati is on the rise. Literally new buildings and structures are being raised everywhere. If you’ve been to Downtown Cincinnati any time recently you can’t turn your head without seeing new construction. And it’s all being done with the help of Hilltop Basic Resources, Inc., a familyowned company that has been providing aggregates and ready-mix concrete for 75 years. Hilltop Basic Resources, Inc.’s materials have been used for projects such as Queen City Tower, Washington Park, Lytle Tunnel, Hopple Street interchange and most of the development at The Banks including the new General Electric building. The company now offers ready-mix concrete and aggregates in four states. Hilltop Basic Resources, Inc. was founded in 1941 by I.W. and Katherine D. Steele, who moved from Rochester, New York, to Cincinnati to start the business. When World War II ended, the Steele’s son, John Steele Sr., earned a degree in Business Management at Dartmouth College and joined his parents at Hilltop Basic Resources, Inc., eventually becoming the second generation of Steele-family ownership. John Steele Jr. was elected as Chairman
and CEO in 1993, marking the third generation of family ownership. “Every generation of the Steele family has done a very good job of making sure we are constantly investing in the future of the business—both in terms of equipment that is necessary to operate and in the reserves (i.e., limestone, sand and gravel),” said Kevin Sheehan, President at Hilltop Basic Resources, Inc. Hilltop Basic Resources, Inc. has grown significantly over its 75 years in business. “The fact that we can get through recessions and continue to grow is a tribute to family-owned businesses,” said John Steele Jr. “Our company has not only survived but prospered. This is a result of the company’s willingness to invest in the business and strategic planning efforts.” Hilltop Basic Resources, Inc.’s Leadership also credits its success to the commitment and loyalty of its employees. “We have a lot of people who work for us who have many years of service—some employees have been here for over 50 years,” said John Steele Jr. Sheehan believes this is a result of the company’s willingness to invest in its employees. “We want employees to want to have
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Pictured left to right: John Steele Jr., Chairman and Chief Executive Officer, and Kevin Sheehan, President, at Hilltop Basic Resources, Inc.
careers with us and we know that we have to provide a competitive, comprehensive and affordable health care plan,” said Sheehan. Hilltop Basic Resources, Inc. recognizes the importance of wellness. They promote employee and spousal participation by providing significantly lower medical insurance premiums for those employees who get their annual physical each year. This year Hilltop Basic Resources, Inc. required biometric results be collected at its employees’ annual physical. These results were collected by a third party that aggregates the data and provides a company health status update to Leadership. “The biometric measurements that are collected allow HORAN to design future wellness strategies around a population’s specific risk factors while also ensuring that employees are getting all of their screenings done,” said Caren Martin, Account Representative at HORAN. Hilltop Basic Resources, Inc.’s wellness initiatives have helped the company
receive health insurance renewal rates that beat market trend year after year. This is important because Hilltop Basic Resources, Inc. covers more than 80% of the cost of its employer-sponsored health insurance plan that it offers to its employees.
“We are a family-owned business and want to continue to be a family-owned business,” said John Steele Jr. “Seeing the fourth generation come into the business and work hard is very satisfying.”
“It has not always been easy for us to cover a significant portion of the cost for our employees, especially with the rising cost of health care. With HORAN’s help, we have been mindful of how we structure the plan in order to keep costs down,” said Sheehan. “HORAN is our partner and brings us expertise, new ideas and help in communicating benefits to our employees.” The Steele family’s commitment to employees and to the company is also demonstrated in the fact that John Steele Sr., age 90, is still very active in the organization. John Steele Sr. serves as Vice Chairman and when he is in town comes into the office every day. He has been with Hilltop Basic Resources, Inc. for more than 67 years.
Dominic Franchini Caren Martin Relationship Manager Account Representative
HORAN advocates for clients to maximize benefits, minimize costs and improve health. It works to identify and understand clients’ organizational challenges and then collaborates to put strategies in place that will achieve its 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.
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PRESORTED FIRST CLASS MAIL U.S. POSTAGE PAID CINCINNATI, OH PERMIT NO. 394
4990 East Galbraith Road Cincinnati, Ohio 45236
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