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Discover how an aluminum products company transformed their property insurance program through strategic risk management with Cottingham & Butler. The Situation After two decades working with their previous broker, an aluminum product manufacturing company sought a new direction for their insurance program by partnering with Cottingham & Butler. They were looking for more than just a broker change – they needed a complete program overhaul, from enhancing their market presentation to creating forward-thinking risk management solutions. Key Wins Why They Needed Change $75M of unsprinklered TIV in a location with high tornado activity Experiencing 15-40% increase in pricing terms annually Long-term property insurance challenges Cottingham & Butler's Strategy Focused on Two Key Elements Craft a more compelling narrative for insurance carriers Implement targeted improvements to strengthen risk profile By rebuilding their program from its foundation, we could address both immediate needs and long-term strategic objectives.

Robust insurance coverage is a key piece of effective risk management. A single uninsured event can lead to severe financial disruption, halt operations and threaten long-term viability. Yet, despite these risks, underinsurance remains a frequently overlooked vulnerability. Whether due to outdated valuations or budget decisions, carrying insufficient coverage can leave businesses exposed. Business owners need to be aware of the causes and consequences of underinsurance and take steps to address it. Several factors contribute to underinsurance in businesses, including the following: Outdated property valuations - Business owners may overlook the need to routinely update the value of their buildings, equipment or inventory, resulting in coverage that doesn’t accurately reflect current replacement costs. Business growth without policy changes - Business owners may add staff, change locations or increase assets without adjusting their insurance coverage, creating new exposures and increasing the risk of uncovered losses. Misunderstanding policy terms - Business owners may misinterpret complicated insurance policy language, leading to false assumptions about what is covered, when coverage applies and how limits or sublimits work. Fixating on premiums - Business owners may focus on minimizing insurance costs without considering the implications of reduced coverage limits, broader exclusions or how higher deductibles may compromise coverage. Neglecting emerging risks - Business owners may fail to account for new threats such as cyberattacks, climate-related events or supply chain disruptions that may not be covered under standard policies. The financial and operational consequences of underinsurance can be significant and include: Partial or denied claims - If coverage limits are too low or exclusions apply, insurance may not fully cover the cost of losses. This can leave the business responsible for the remaining expenses. Lengthy downtime - Coverage should be in place to adequately cover loss scenarios. For example, without business interruption coverage, a business may struggle to meet ongoing expenses during recovery following significant property damage, increasing the risk of prolonged closures or permanent shutdown. Regulatory and legal exposure - Insufficient liability coverage can leave businesses vulnerable to fines, penalties or lawsuits, particularly in highly regulated industries. Reputational damage - Delays in service or failure to meet obligations due to uninsured losses can erode client trust and damage long-term relationships. To minimize underinsurance risks, business owners should regularly reassess their insurance coverage, particularly after operational changes (e.g., expansion, new hires or equipment upgrades). Obtaining professional appraisals of property and assets is also crucial, especially during periods of inflation or supply-chain volatility. Additionally, businesses should evaluate whether their existing policies account for emerging risks, including cyberthreats, climate-related events or evolving liability exposures. Business owners should carefully examine policy terms and understand exclusions to reduce the risk of insurance shortfalls. Working with a knowledgeable broker or agent can help uncover insurance gaps and ensure coverage closely aligns with the business’s current operations, assets and evolving risk landscape. Contact us today for more risk management information.

The Benefits Brief: Micro-Strategy Sessions  are monthly, 15-minute virtual sessions designed for CFOs, Human Resource, and Benefit Leaders who want fast, actionable insights on employee benefits strategy and healthcare cost management. Each episode delivered expert guidance, emerging trends, and practical takeaways - packed into a concise format that respected your time and sharpened your strategy. Check this series out below! The Hidden Cost Lever - Rethinking Health Plan Eligibility: 8/6/25 Click here to view the presentation. Beyond the Plan: Exploring Alternatives That Benefit Members and the Bottom Line - 9/2/25 Click here to view the presentation. Health Plan Mastery: Regain Control, Reduce Costs - 10/7/25 Click here to view the presntation. Stay tuned for more On-Demand Micro-Strategy Sessions! BJ McAndrew BMcAndrew@cottinghambutler.com 608.228.6055

Artificial intelligence (AI) is rapidly changing how businesses function, offering powerful tools to enhance efficiency, strengthen security and improve customer engagement. To adopt AI effectively, business leaders must understand both its strategic advantages and potential downfalls to make informed decisions that align with long-term objectives. AI offers a range of practical applications that can help businesses operate more strategically, securely and efficiently, including: Resolving problems before they happen - AI-powered tools assist businesses with anticipating and addressing issues early. For example, route optimization software can actively adapt delivery plans based on traffic, weather or vehicle capacity. Similarly, inventory planning tools can forecast demand to prevent shortages. Automating repetitive tasks - AI programs can streamline operations by performing repetitive tasks like generating invoices, freeing up time for high-value activities. Improving security - AI can detect cyberthreats, identify vulnerabilities and respond to suspicious activity faster than manual systems, helping businesses stop cyberattacks before they escalate. Analyzing data - AI analytic tools can efficiently examine large volumes of business data to spot trends, inefficiencies and growth opportunities. These insights can help businesses make informed decisions, lower costs and identify new revenue streams. Generating and managing content - AI can create product descriptions, draft and schedule social media posts, and write responses to online reviews to support marketing and brand engagement initiatives. Enhancing customer service - AI-powered chatbots can respond to common questions, help with orders and provide 24/7 support, improving the customer experience. However, understanding the potential risks of AI is crucial for businesses to protect operations, uphold stakeholder, client and employee trust, and support sound decision-making. Businesses should be aware of the following AI limitations: AI depends on data that is potentially flawed or outdated. AI systems are only as strong as the data they use. Inaccurate, biased or incomplete data can lead to incorrect decisions, poor recommendations and unreliable insights. AI can weaken cybersecurity. AI integration can expand an organization’s attack surface and create new entry points for cyberattacks. Hackers may use generative AI tools to craft phishing emails, deepfakes or automated threats, increasing the risk of breaches. AI can raise ethical and privacy concerns. Using AI to collect, store or analyze personal or sensitive data without clear consent and proper safeguards can violate privacy laws, reinforce biases and damage customer trust. AI can outpace internal capabilities. Limited in-house expertise and insufficient resources can hinder effective AI implementation and increase the risk of mismanagement. Overreliance on AI can lessen human oversight. Overreliance on AI can lead to unchecked decisions, missed errors and reduced accountability in complex situations. Responsible adoption of AI is essential as it becomes increasingly embedded in business operations. Businesses must maintain transparency in how AI tools are used, apply ethical standards to data use and collection, and ensure consistent oversight of automated decisions. These organizations can help mitigate operational, legal and reputational risks by establishing clear governance frameworks, designating AI oversight accountability and investing in staff training and education. Businesses should also review their insurance policies (e.g., cyber insurance, commercial crime insurance and professional liability insurance) to ensure adequate coverage for AI-related exposures. Contact us today for further risk mitigation guidance and insurance solutions. An American Express survey found that 86% of U.S. small businesses using AI feel more confident in decision-making, citing fewer errors and greater efficiency. Still, it's crucial to scrutinize AI risks to minimize exposures and ensure responsible implementation.

Overview Nuclear verdicts (jury awards exceeding $10 million, or "thermonuclear" at $100+ million) are at a 15-year high, up 27% since 2022. Of 89 recent nuclear verdicts across industries, the median award was $44 million, totaling $14.5 billion in combined damages. Key Drivers Social inflation : Growing corporate distrust and demands for transparency Broadened liability definitions : Courts expanding corporate responsibility scope Litigation financing : Third-party funding enabling more plaintiffs to pursue cases Evolved trial tactics : Emotional appeals, anchoring high amounts, and jurisdiction shopping Regulatory changes : New compliance standards influencing jury perceptions Management Liability Impact Nuclear verdicts now increasingly target corporate leadership decisions across three main areas: Directors & Officers (D&O): Claims of harmful leadership acts Employment Practices (EPL): Harassment, discrimination, wrongful termination allegations Fiduciary Liability: Employee benefits mismanagement claims Consequences Financial/Reputational : Large awards plus defense costs and media attention Coverage Gaps : Awards often exceed policy limits, leading to higher premiums and restrictions Executive Scrutiny : Increased stakeholder oversight of leadership decisions Mitigation Strategies Risk Assessment : Address nuclear verdict scenarios in company risk evaluations Strong Governance : Implement clear policies, proper vetting, and stakeholder engagement Leadership Training : Regular ethics and accountability education for directors/officers Compliance : Stay current with employment, financial, and industry regulations Insurance Review : Regularly assess D&O, EPL, and fiduciary coverage adequacy Proactive Claims Management : Handle allegations swiftly with documented protocols and early settlement strategies How Cottingham & Butler Can Help At Cottingham & Butler, we help businesses navigate the evolving nuclear verdict landscape with comprehensive management liability solutions. Our risk management experts provide industry-specific coverage strategies to ensuring your leadership team has adequate protection against today's litigation environment. From coverage gap analysis and policy optimization to claims management and executive training programs, we deliver tailored solutions that address your organization's unique exposures. Contact us today to review your management liability coverage and ensure your business is prepared for the new reality of nuclear verdicts. Conclusion As nuclear verdicts continue rising, businesses must understand these trends and implement comprehensive safeguards to protect their leadership teams and operations from costly litigation.

The Affordable Care Act (ACA) requires applicable large employers (ALEs) to offer affordable, minimum-value health coverage to their full-time employees (and dependents) or risk paying a penalty to the IRS. This employer mandate is also known as the “pay-or-play” rules. An ALE is an employer with at least 50 full-time employees, including full-time equivalent employees, during the preceding calendar year. An ALE’s health coverage is considered affordable if the employee’s required contribution for the lowest-cost self-only coverage that provides minimum value does not exceed 9.5% (as adjusted) of the employee’s household income for the taxable year. For plan years beginning in 2025, the adjusted affordability percentage is 9.02%. The adjusted affordability percentage increases to 9.96% for plan years beginning in 2026. Because an employer generally will not know an employee’s household income, the IRS has provided three optional safe harbors that ALEs may use to determine affordability based on information that is available to them: the Form W-2 safe harbor , the rate-of-pay safe harbor and the federal poverty line (FPL) safe harbor . Safe Harbor Requirements The safe harbors allow ALEs to determine if their health plan coverage is affordable based on factors other than employees’ household income. ALEs may use the affordability safe harbors if they offer their full-time employees (and dependents) the opportunity to enroll in health plan coverage that provides minimum value. A health plan provides minimum value if it includes substantial coverage of both inpatient hospital services and physician services and covers at least 60% of the total allowed cost of benefits that are expected to be incurred under the plan. The three affordability safe harbors are all optional. An ALE may choose to use one or more of the safe harbors for all its employees or for any reasonable category of employees, provided it does so on a uniform and consistent basis for all employees in a category. Reasonable categories of employees generally include: Specified job categories; Nature of compensation (for example, salaried or hourly); Geographic location; and Similar bona fide business criteria. A listing of employees by name (or other specific criteria having substantially the same effect) is not considered a reasonable category. The affordability safe harbors are only used to determine whether an ALE’s coverage satisfies the affordability test under the pay-or-play rules. They do not affect an employee’s eligibility for a premium tax credit for purchasing individual health insurance coverage through an ACA Exchange, which is based on the affordability of employer-sponsored coverage relative to an employee’s household income. Selecting a Safe Harbor To select a safe harbor for its employees (or for a reasonable category of employees), an ALE should review how each one works. This includes assessing each safe harbor’s level of predictability and ability to maximize employee contributions. Certain safe harbors may be more appropriate than others, depending on an ALE’s workforce. The following table provides a quick overview of the three affordability safe harbors and identifies the types of employers who may benefit the most from each. SafeHarbor Quick Overview Pros and Cons Form W-2 An ALE determines the affordability of its health coverage for each employee by looking at the employee’s wages reported in Box 1 oftheir Form W-2 after the end of the year. This safe harbor is the least predictable method fordetermining affordability because it is based on the actual amount of each employee’s W-2 wages, which is not known until after the end of the year. Due to this uncertainty, it works best for employees whose annual compensation canbe predicted with accuracy before the start of the year. Employees’ wages can change during the year for various reasons that are not within the employer’s control, such as an increase to pre-tax 401(k) contributions or an unpaid leave of absence. However, if employers are comfortable with this risk, this safe harbor potentially allows them to maximize employee contributions toward the cost of health coverage based on actual compensation.  Rate of Pay An ALE determines the affordability of itshealth coverage for each employee by looking at the employee’s hourly rate multiplied by130 hours (regardless of the number of hoursworked). Monthly salary is used for salaried employees instead of the hourly rate.  This safe harbor provides a more predictable, design-basedmethod for determining affordability. It is especially useful for ALEs with a significant number of hourly employees since ituses an assumed rate of 130 hours per calendar month, regardless of the actual number of hours worked by the employee. However, this safe harbor may not maximize employee contributions toward the cost of health coverage if hourly employees regularly work more than 130 hours per month.  FPL An ALE determines the affordability of its health coverage for all employees by looking at the FPL for a single individual. This safe harbor provides the most predictable, design-basedmethod for determining affordability. It gives ALEs a predetermined maximum amount of employee contribution that, in all cases, will result in the coverage being deemed affordable. It is relatively easy to apply because it does notrequire any employee-specific data. However, it oftenrequires the largest employer contribution toward the cost of health coverage.  Using the Safe Harbors Form W-2 Safe Harbor An ALE using the Form W-2 safe harbor retroactively determines the affordability of its health coverage by looking at each employee’s wages reported in Box 1 of Form W-2. These wages include taxable wages, tips and other compensation paid to the employee for the year, minus any pre-tax benefit deductions. An ALE’s health coverage is considered affordable under the Form W-2 safe harbor for an employee if the employee’s required contribution for the ALE’s lowest-cost self-only coverage does not exceed 9.5% (as adjusted) of their Form W-2 Box 1 wages for the year. For example, for an ALE’s health plan to be considered affordable for the plan year beginning in 2026, the maximum monthly premium for an employee with W-2 wages of $60,000 is $498. Here is the formula: $60,000 x 9.96%affordability=$5,976] / 12 months=$498 maximum per month. The following table shows the maximum contribution amounts for selected W-2 wages. W-2 Wages Maximum Monthly Contribution: 2024 Plan Years (8.39% affordability) Maximum Monthly Contribution: 2025 Plan Years (9.02%affordability) Maximum Monthly Contribution: 2026 Plan Years (9.96% affordability) $30,000 $209.75 $225.50 $249.00 $35,000 $244.71 $263.08 $290.50 $40,000 $279.67 $300.67 $332.00 $45,000 $314.63 $338.25 $373.50 $50,000 $349.58 $375.83 $415.00 W-2 Wages Maximum Monthly Contribution: 2024 Plan Years (8.39% affordability) Maximum Monthly Contribution: 2025 Plan Years (9.02%affordability) Maximum Monthly Contribution: 2026 Plan Years (9.96% affordability) $55,000 $384.54 $413.42 $456.50 $60,000 $419.50 $451.00 $498.00 $65,000 $454.46 $488.58 $539.50 $70,000 $489.42 $526.17 $581.00 $75,000 $524.38 $563.75 $622.50 $80,000 $559.33 $601.33 $664.00 $85,000 $594.29 $638.92 $705.50 $90,000 $629.25 $676.50 $747.00 $95,000 $664.21 $714.08 $788.50 $100,000 $699,17 $751.67 $830.00 $105,000 $734.13 $789.25 $871.50  To use the Form W-2 safe harbor, the employee’s required contribution must remain a consistent amount or percentage of all Form W-2 wages during the plan year. Thus, an ALE may not make discretionary adjustments to the required employee contribution for a pay period. However, a periodic contribution that is based on a consistent percentage of all Form W-2 wages may be subject to a dollar limit specified by the employer. The Form W-2 safe harbor is adjusted for employees who are not offered coverage for the entire calendar year. The employee’s Form W-2 wages are adjusted to reflect the period when the employee was offered coverage, and the adjusted wages are then compared to the employee’s share of the premium for the employer’s lowest-cost self-only coverage for the periods when coverage was offered. Rate-of-Pay Safe Harbor The rate-of-pay safe harbor allows ALEs to prospectively satisfy the ACA’s affordability requirement without analyzing every employee’s hours. To use the rate of pay safe harbor for hourly employees, an ALE must: Take the lower of the hourly employee’s rate of pay as of the first day of the coverage period (generally, the first day of the plan year) or the employee’s lowest hourly rate of pay during the calendar month; Multiply that rate by 130 hours per month (regardless of whether the employee works more or less than 130 hours in a calendar month); and Determine affordability for the calendar month based on the resulting monthly wage amount. An ALE’s health coverage is considered affordable under the rate of pay safe harbor for an employee if the employee’s required monthly contribution for the lowest-cost self-only coverage does not exceed 9.5% (as adjusted) of the computed monthly wages (that is, the employee’s applicable hourly rate of pay multiplied by 130 hours). For example, to meet the affordability threshold for a plan year beginning in 2026, an employee who makes $15 per hour must have a monthly premium of no more than $194.22. Here is the formula: ($15 x 130 hours) x 9.96% affordability=$194.22. The following table shows the maximum monthly contribution amounts for selected hourly rates of pay. Rate of Pay Maximum Monthly Contribution: 2024 Plan Years (8.39% affordability) Maximum Monthly Contribution: 2025 Plan Years (9.02% affordability) Maximum Monthly Contribution: 2026 Plan Years (9.96% affordability) $10 per hour $109.07 $117.26 $129.48 $12.50 per hour $136.34 $146.58 $161.85 $15 per hour $163.61 $175.89 $194.22 $17.50 per hour $190.87 $205.21 $226.59 $20 per hour $218.14 $234.52 $258.96 Rate of Pay Maximum Monthly Contribution: 2024 Plan Years (8.39% affordability) Maximum Monthly Contribution: 2025 Plan Years (9.02% affordability) Maximum Monthly Contribution: 2026 Plan Years (9.96% affordability) $22.50 per hour $245.41 $263.84 $291.33 $25 per hour $272.68 $293.15 $323.70 $27.50 per hour $299.94 $322.47 $356.07 $30 per hour $327.21 $351.78 $388.44 $32.50 per hour $354.48 $381.10 $420.81 $35 per hour $381.75 $410.41 $453.18  An ALE may use the rate-of-pay safe harbor even if an hourly employee’s rate of pay is reduced during the year. In this situation, the rate of pay is applied separately to each calendar month rather than to the entire year, and the employee’s required contribution may be treated as affordable if it is affordable based on the lowest rate of pay for the calendar month multiplied by 130 hours. Also, the affordability calculation under the rate of pay safe harbor is not altered by a leave of absence or reduction in hours worked. For salaried employees, monthly salary as of the first day of the coverage period would be used instead of hourly salary multiplied by 130 hours. For example, for a plan year beginning in 2026, if a salaried employee makes $4,000 per month, the maximum monthly premium must be no more than $398.40 ($4,000 x 9.96%=$398.40). However, if the monthly salary is reduced, including due to a reduction in work hours, the rate-of-pay safe harbor may not be used. FPL Safe Harbor The FPL safe harbor allows ALEs to prospectively satisfy the ACA’s affordability requirement without analyzing employees’ wages or hours. The FPL safe harbor provides ALEs with a predetermined maximum amount of employee contribution that, in all cases, will result in the ALE’s health coverage being deemed affordable. An ALE’s health coverage is considered affordable under the FPL safe harbor for all employees if the employee monthly contribution amount for the lowest-cost self-only coverage does not exceed 9.5% (as adjusted) of the FPL for a single individual for the applicable year, divided by 12. ALEs may use any FPL guidelines that are in effect within  six months before the first day of the plan year. This provides employers with time to establish premium amounts in advance of the plan’s open enrollment period. However, because the federal government does not typically release the updated FPL for the year until January, employers with calendar-year health plans generally use the prior year’s FPL. To calculate affordability for a calendar-year health plan for 2026, take the 2025 FPL for an individual ($15,650), multiply it by 9.96% and then divide it by 12. This formula is as follows: ($15,650 x 9.96% affordability)/12=$129.90. In general, if employee contributions for the lowest-cost self-only coverage do not exceed $129.90 per month, the health coverage meets the ACA’s affordability standard for all employees. The following table shows the FPL affordability thresholds using the FPL guidelines for 2024 and 2025. 2024 FPL Guidelines 2025 FPL Guidelines State of Employment FPL for a single individual Maximum monthly contribution for 2024 plan years (using 8.39% affordability) Maximum monthly contribution for 2025 plan years (using 9.02% affordability) FPL for a single individual Maximum monthly contribution for 2025 plan years (using 9.02% affordability) Maximum monthly contribution for 2026 plan years (using 9.96% affordability) 48 contiguous states and the District of Columbia $15,060 $105.29 $113.20 $15,650 $117.64 $129.90 Alaska $18,810 $131.51 $141.39 $19,550 $146.95 $162.27 Hawaii $17,310 $121.03 $130.11 $17,990 $135.22 $149.32  Links and Resources IRS final regulations on the ACA’s pay-or-play rules IRS Revenue Procedure 2025-25 , adjusting the affordability percentage for 2026 IRS Revenue Procedure 2024-35 , adjusting the affordability percentage for 2025

In today's complex regulatory environment, staying compliant with DOT drug and alcohol testing requirements is more critical - and more challenging - than ever. Our recent webinar was designed to equip safety professionals, fleet managers, and HR personnel with the knowledge and tools needed to manage their drug and alcohol programs confidently. From understanding mandatory testing protocols to avoiding costly violations that can impact your FMCSA safety ratings, these expert insights provide the practical guidance you need to maintain compliance while protecting your drivers and your business. Here are the key takeaways from our discussion: DOT Drug & Alcohol Testing Requirements : DOT requires testing for five drug classes: marijuana, cocaine, opiates, amphetamines/methamphetamines, and PCP. Only urine testing is currently approved for DOT drug tests. Policy & Compliance Essentials : Employers must implement a 13-section DOT-compliant policy from the start of CMV operations. It’s recommended to include a non-DOT section for additional substances or methods. Clearinghouse & Violations : Employers must check the FMCSA Clearinghouse before hiring and annually for current drivers. Violations must be reported within 3 business days. Testing & Best Practices : All testing procedures must be documented especially post-accident and refusal cases. Proper documentation and protocol adherence are critical to prevent common violations like letting drivers operate after positive tests. Impact on Safety Ratings : Acute and critical violations directly affect FMCSA safety ratings. Two acute violations in the Drug & Alcohol factor result in an "Unsatisfactory" rating for that factor, potentially leading to an "Overall Conditional" rating. Click here to view the presentation.

Each year, Medicare Part D requires group health plan sponsors to disclose to individuals who are eligible for Medicare Part Dand to the Centers for Medicare and Medicaid Services (CMS) whether the health plan’s prescription drug coverage is creditable.  Plan sponsors must provide the annual disclosure notice to Medicare-eligible individuals before Oct. 15, 2025 - the start dateof the annual enrollment period for Medicare Part D. CMS has provided model disclosure notices for employers to use.  This notice is important because Medicare beneficiaries who are not covered by creditable prescription drug coverage and donot enroll in Medicare Part D when first eligible will likely pay higher premiums if they enroll at a later date. Although there areno specific penalties associated with this notice requirement, failing to provide the notice may be detrimental to employees.  Action Steps  Employers should confirm whether their health plans’ prescription drug coverage is creditable or non-creditable and prepare tosend their Medicare Part D disclosure notices before Oct. 15, 2025. To make the process easier, employers often include Medicare Part D notices in open enrollment packets they send out prior to Oct. 15.  Creditable Coverage  A group health plan’s prescription drug coverage is considered creditable if its actuarial value equals or exceeds the actuarialvalue of standard Medicare Part D prescription drug coverage. In general, this actuarial determination measures whether theexpected amount of paid claims under the group health plan’s prescription drug coverage is at least as much as the expected amount of paid claims under the Medicare Part D prescription drug benefit. For plans that have multiple benefit options (forexample, PPO, HDHP and HMO), the creditable coverage test must be applied separately for each benefit option.  Model Notices  CMS has provided two model notices for employers to use:  A Model Creditable Coverage Disclosure Notice for when the health plan’s prescription drug coverage is creditable; and A Model Non-creditable Coverage Disclosure Notice for when the health plan’s prescription drug coverage is notcreditable.  These model notices are also available in Spanish on CMS’ website .  Employers are not required to use the model notices from CMS. However, if the model language is not used, a plan sponsor’s notices must include certain information, including a disclosure about whether the plan’s coverage is creditable andexplanations of the meaning of creditable coverage and why creditable coverage is important.  Notice Recipients  The creditable coverage disclosure notice must be provided to Medicare Part D - eligible individuals who are covered by, or whoapply for, the health plan’s prescription drug coverage. An individual is eligible for Medicare Part D if they:  Are entitled to Medicare Part A or are enrolled in Medicare Part B; and Live in the service area of a Medicare Part D plan.  In general, an individual becomes entitled to Medicare Part A when they actually has Part A coverage, and not simply whenthey are first eligible. Medicare Part D-eligible individuals may include active employees, disabled employees, COBRA participants and retirees, as well as their covered spouses and dependents.  As a practical matter, group health plan sponsors often provide the creditable coverage disclosure notices to all plan participants . Timing of Notices At a minimum, creditable coverage disclosure notices must be provided at the following times: Prior to the Medicare Part D annual coordinated election period—beginning Oct. 15 through Dec. 7 of each year Prior to an individual’s initial enrollment period for Part D Prior to the effective date of coverage for any Medicare-eligible individual who joins the plan Whenever prescription drug coverage ends or changes so that it is no longer creditable or becomes creditable Upon a beneficiary’s request If the creditable coverage disclosure notice is provided to all plan participants annually before Oct. 15 of each year, items (1) and (2) above will be satisfied. “Prior to,” as used above, means the individual must have been provided with the notice within the past 12 months. In addition to providing the notice each year before Oct. 15, plan sponsors should consider including the notice in plan enrollment materials for new hires. Method of Delivering Notices Plan sponsors have flexibility in how they must provide their creditable coverage disclosure notices. The disclosure notices can be provided separately, or if certain conditions are met, they can be provided with other plan participant materials, like annual open enrollment materials. The notices can also be sent electronically in some instances. As a general rule, a single disclosure notice may be provided to the covered Medicare beneficiary and all of his or her Medicare Part D-eligible dependents covered under the same plan. However, if it is known that any spouse or dependent who is eligible for Medicare Part D lives at a different address than where the participant materials were mailed, a separate notice must be provided to the Medicare-eligible spouse or dependent residing at a different address. Electronic Delivery Creditable coverage disclosure notices may be sent electronically under certain circumstances. CMS has issued guidance indicating that health plan sponsors may use the electronic disclosure standards under Department of Labor (DOL) regulations in order to send the creditable coverage disclosure notices electronically. According to CMS, these regulations allow a plan sponsor to provide a creditable coverage disclosure notice electronically to plan participants who have the ability to access electronic documents at their regular place of work, if they have access to the sponsor's electronic information system on a daily basis as part of their work duties. The DOL’s regulations for electronic delivery require that: The plan administrator uses appropriate and reasonable means to ensure that the system for furnishing documents results in actual receipt of transmitted information; Notice is provided to each recipient, at the time the electronic document is furnished, of the significance of the document; and A paper version of the document is available on request. Also, if a plan sponsor uses electronic delivery, the sponsor must inform the plan participant that they are responsible for providing a copy of the electronic disclosure to their Medicare-eligible dependents covered under the group health plan. In addition, the guidance from CMS indicates that a plan sponsor may provide a disclosure notice electronically to retirees if the Medicare-eligible individual has indicated to the sponsor that they have adequate access to electronic information. According to CMS, before individuals agree to receive their information via electronic means, they must be informed of their right to obtain a paper version, how to withdraw their consent and update address information, and any hardware or software requirements to access and retain the creditable coverage disclosure notice. If the individual consents to an electronic transfer of the notice, a valid email address must be provided to the plan sponsor and the consent from the individual must be submitted electronically to the plan sponsor. According to CMS, this ensures the individual’s ability to access the information and that the system for furnishing these documents results in actual receipt. In addition to having the disclosure notice sent to the individual’s email address, the notice (except for personalized notices) must be posted on the plan sponsor’s website, if applicable, with a link on the sponsor’s homepage to the disclosure notice. Disclosure to CMS Plan sponsors are also required to disclose to CMS whether their prescription drug coverage is creditable. The disclosure must be made to CMS on an annual basis, or upon any change that affects whether the coverage is creditable. At a minimum, the CMS creditable coverage disclosure notice must be provided at the following times: Within 60 days after the beginning date of the plan year for which the entity is providing the form; Within 30 days after the termination of the prescription drug plan; and Within 30 days after any change in the creditable coverage status of the prescription drug plan. Plan sponsors are required to provide the disclosure notice to CMS through completion of the disclosure form on the CMS Creditable Coverage Disclosure webpage . This is the sole method for compliance with the CMS disclosure requirement, unless a specific exception applies.

Written by: Nolan Leslie, Benefits Sales Executive In today’s competitive job market, offering a paycheck alone isn’t enough. Employees are seeking more meaningful support from their employers and benefits that reflect their real-life needs and values. Non-medical benefits – like life, disability, dental, vision, accident, critical illness, and hospital indemnity - are emerging as a powerful tool to attract and retain top talent, provide critical support during life’s unexpected moments, and build a more holistic, future-ready benefits package. Why Offer Non-Medical Benefits? Attract and Retain Talent:  With five generations in the workforce, employees are asking for more benefits while employers are constantly looking for ways to stand out without going over budget in a tough job market. Support During Life’s Critical Moments:  Often these benefits help employees when they need it most. 74% of people are living paycheck to paycheck. Providing options to assist employees with unexpected expenses is crucial to their well-being. Create a Holistic Benefits Package : Providing your employees with benefits that fall outside the traditional buckets of welfare/medical and compensation. Studies show that nearly 80% of employers are considering adding Supplemental Health Benefits. These benefits can help you cover more of your employees’ wants and needs. What’s Often Overlooked? Non-medical benefits are often outdated and misaligned with employee needs due to infrequent review. Specifically, life and disability coverage, which can leave key employees underinsured. Non-medical benefits are typically under-communicated, which leads to low utilization and undervaluing by employees. Voluntary benefits often include overlooked contract stipulations that limit payouts, many of which can be negotiated or removed with proper negotiation tactics Non-medical lines that are non-compliant due to inconsistent documentation, lack of regular audits, and oversight gaps when managed across multiple carriers. How to Maximize Your Non-Medical Benefits Strategically Bundle Coverage:  Consolidating multiple coverages with a single carrier can lead to better pricing, improved contract terms, less compliance risk, and even potential premium refunds. Communicate Benefits Year-Round:  Engaging employees outside of open enrollment helps them better understand their options. With consistent education, 63% of employees enrolled in at least one voluntary benefit. Listen to Your Employees:  Use tools like Engage360 or BenefitWave to survey employees and ensure your benefits align with their needs. These insights reveal what employees value and what they do not By reevaluating your offerings, staying ahead of market trends, and listening to your employees, you can create a benefits package that not only supports your people but also strengthens your organization. The right mix of benefits can make all the difference in building a resilient, engaged, and loyal workforce. This process is complex and time-consuming, but you do not have to do it alone. If you’re interested in hearing more. Contact us. Nolan Leslie NLeslie @cottinghambutler.com 563.348.1027

Written by Kara Vines, Sr. Safety Consutlant In a report released by the American Transportation Research Institute (ATRI), the average operational costs of trucking in 2024 was $2.260 per mile.  Excluding fuel, companies spent $1.779 per mile – an increase of 6.2 cents per mile over 2023.  Improving the fuel efficiency of a company’s fleet of vehicles can have many financial and environmental benefits, especially with fuel prices on the rise. Fuel can be one of the largest and most difficult expenses to predict and control, and makes up 30-40% of total fleet expenses annually. Therefore, it’s important for vehicle fleet managers to conserve fuel, maximize efficiency and reduce vehicle emissions by implementing fuel-efficient policies, technology and maintenance strategies.  Best Practices Managing a fleet’s fuel usage - even for just a couple of vehicles - can feel overwhelming. The following are ways to reduce fleet fuel costs and make operations more efficient: Monitor driving patterns. A U.S. Department of Transportation report found that there can be as much as a 35% difference in fuel consumption between a good and poor driver. Monitoring speeding, braking and acceleration patterns can indicate whether drivers are using good practices on the road or operating inefficiently.  Smooth acceleration, steady speeds, and gentle braking can all improve fuel efficiency.  You can utilize your telematics system to help monitor and coach driving behavior for your fleet by evaluating vehicle performance data.  Avoiding harsh acceleration can reduce your fuel usage by up to 30%. Cut engine idling. Idling can burn a quarter to a half gallon of fuel per hour. To reduce fuel and oil waste: Improve route efficiency. Route efficiency can be improved with GPS tracking technology to ensure operations are streamlined and drivers don’t spend their day and fuel driving back and forth.  Remove unnecessary weight from vehicles. Every extra 100 pounds in a vehicle can increase gas costs by up to $0.03 cents per gallon, which can quickly add up over the course of hundreds of thousands of gallons across multiple vehicles. Train your drivers to only travel with necessary packages or equipment. Schedule maintenance. Preventive and regular maintenance can reduce fuel costs, extend the entire lifespan of fleet vehicles and ensure the safety of drivers and the community.  A vehicle that is well maintained will operate more smoothly and consume less fuel. Check the tire pressure. Checking the tire pressure should be a mandatory part of the pre-trip safety check since it not only improves the cost per mile but also helps the vehicle respond properly in unsafe situations. Dispatch the closest vehicle. Business margins and fuel efficiency can be improved by dispatching the closest vehicle to anew delivery or appointment. Fleet-tracking programs can help automate dispatching and routing. Leverage a fleet telematics solution. A fleet telematics solution can help managers gain data and insight into fleet status in terms of individual vehicle performance and overall operations, allowing them to make changes that will help fuel efficiency. Provide incentives. Fleet managers can encourage efficient driving by offering drivers incentives, such as recognition or special privileges. Implement driver training. Providing drivers with training regarding fuel-efficient habits can increase their awareness of fuel efficiency on the road. It can help them be mindful of things like keeping gears low when accelerating, changing gears early, driving at slower speeds and learning to read the road more effectively. By implementing policies and practices that monitor and reward fuel-efficient behavior, fleet operations can reduce fuel costs.

When most business owners think about insurance, they picture premiums as a necessary expense that simply vanishes into the void each year. But what if there was a way to maintain comprehensive coverage while potentially getting money back when things go well? Enter captive insurance – a strategy that's quietly revolutionizing how smart companies approach risk management and turning insurance from a pure cost center into a potential profit center. Taking Control of Your Insurance Destiny Traditional insurance operates on a simple premise: you pay premiums, and those dollars disappear regardless of your claims experience. Market forces, other companies' losses, and factors completely outside your control drive your costs higher each year. Captive insurance flips this model on its head. Instead of sending your premiums to a faceless corporation, you join a group of like-minded companies that essentially self-insure. When the group performs well and claims are favorable, you don't just avoid rate increases – you actually receive dividends back. The Numbers Don't Lie Cottingham & Butler captive members have received over $330 million in dividend returns during profitable years. That's money that would have otherwise disappeared into traditional insurance company offers, now flowing back to strengthen participants' bottom lines. These returns come while maintaining the comprehensive coverage your business needs, creating a win-win scenario that traditional insurance simply can't match. Choosing Your Captive Partner: Due Diligence Essentials Not all captive arrangements are created equal. Before diving in, business leaders should evaluate potential partners across several key dimensions: Track Record Matters : Look for proven experience in captive management. Success in this space requires specialized expertise that develops over years, not months. Retention Tells the Story : High renewal rates among existing members speak volumes about satisfaction and performance. If companies are staying put, there's usually a good reason. References Are Non-Negotiable : Any reputable captive will have multiple satisfied members willing to share their experiences. If they won't provide references, keep looking. One-Stop Service : The best arrangements offer comprehensive support, handling everything from claims management to safety consulting under one roof. Know Your Risk Profile : Understand how risk is shared within the group and what historical performance looks like. Partnership Transparency : You should know exactly who you're partnering with and what their track record entails. Ready to Explore? If captive insurance sounds like it might be a fit for your company, the next steps are straightforward: submit your data for evaluation, schedule an on-site loss control assessment with safety experts, and receive a formal proposal with firm pricing. In a business environment where every dollar counts, captive insurance offers something increasingly rare: the chance to maintain essential coverage while potentially improving your financial position. For companies tired of watching their insurance premiums disappear without a trace, it might just be the alternative they've been looking for. Interested in learning more? Speak with a Cottingham & Butler representative to discover if captive insurance could work for your business. https://www.cottinghambutler.com/how-can-we-help

Written by: Tiffany Johnsrud, Benefits Sales Executive Struggling to get leadership buy-in for a benefits admin system or EDI feeds? What if your dental or disability carrier could help pay for it?   Think of it like dining out. When you splurge, you're not just paying for a meal — you're investing in an experience.   Employee benefits are one of your biggest expenses. So why settle? Expect a solution that enhances the employee experience, simplifies administration, and delivers real value.   Tech credits can help you get there. What Are Tech Credits? Technology credits are financial incentives offered by insurance carriers to help employers cover the cost of technology that makes the day-to-day tasks of benefits enrollment, management, compliance, and administration easier.   Who Offers & Negotiates Tech Credits? Tech credits are offered by non-medical carriers - especially those providing life, disability, dental, vision, and voluntary benefits. Your broker plays a key role in negotiating these credits on your behalf during renewals or onboarding.   When & Where Do Tech Credits Apply? Your broker can explore tech credit options: During new carrier onboarding At renewal time When bundling multiple lines of coverage Credits may come as lump sums, monthly reimbursements, or fee offsets, depending on the carrier agreement.   Why Should You Care? We often hear from HR and Benefits teams who know exactly what they need - like a better ben admin system or EDI feeds - but hit a wall when it comes to budget approval. Here’s the good news: tech credits can help you get the technology you need at a fraction of the cost. Why It Matters: Reduces bottom line expenses Enables better employee experience Improves operational efficiency Supports digital transformation without increasing premiums   FAQs Q: Do all carriers offer tech credits? No - but many do, especially in group life, disability, and voluntary benefits. Q: Can credits be used for any platform? No, some systems cannot accept credits from specific carriers so work with your broker closely to explore utilization. Q: How much can employers save? Typically it’s a % of premium, savings depend on group size and other factors. $5-$50k! Q: Do credits affect premiums or rates? No - they’re negotiated separately as part of the overall value package.   Ready to Explore Tech Credits? If you're an HR leader, CFO, or CEO wondering how to stretch your benefits budget further - this is your moment. Let’s talk about how to utilize tech credits in this upcoming renewal to fund the tech your team needs to enhance and optimize your employee benefit experience. Tiffany Johnsrud TJohnsrud@cottinghambutler.com 563.451.6540