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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

Written by: Cole Skelton, Sales Executive - Employee Benefits Minnesota Paid Family Leave is coming in 2026 – and represents a significant shift that could ripple through your business. Here Are The Minnesota PFL Basics Eligibility Virtually every worker in Minnesota is covered  – full-time, part-time, seasonal, and temporary employees. Coverage begins day one of employment  – with job protection kicking in after 90 days. To qualify employees must have made $3,781 in the previous year  (5.3% of state avg income). Benefit Up to 20 weeks of job-protected leave  per year (12 for medical/12 for family). Income replacement starts at 90% for lower income earners   and will continue to decrease as income does. The maximum benefit is capped at $1,372 a week. Leave can be taken for an employee’s own health needs as well as those of their family . Premium 0.88% of total wages, split 50/50 between employer and employee  (employers can choose to pay more). Premiums apply to 100% of taxable earnings , not just their base salary. Business Risks 1. Financial Exposure For a company with 100 employees earning Minnesota’s avg salary ≈ $67,000, a state PFL plan will cost about $29,480  assuming the company picks up 50% of the premium. Total expenses will depend on plan type – state or private. If there is not currently an employer funded short-term disability plan, this will be a new line item. With the maximum benefit being $1,372 per week – that’s 23% income replacement for an individual making $300,000 in a year. Additional short-term disability insurance may be required to properly insure high-income earners or those employees outside Minnesota. 2. Operational Gaps Key employees having access to prolonged and intermittent leave will become a reality – whether it’s your CNC machinist, lead project manager, or frontline worker. Having proper backup plans for key employees being out will be critical to ensure operational continuity. Do you have an up-to-date succession plan for key personnel? Do opportunities exist to cross-train employees? Are your time-off policies ready for intermittent leave for things like doctor visits? 3. Public vs. Private Options State Plan: Likely will be the cheapest, but it’s year one – expect growing pains. Private Plan: Potentially smoother administration, and a more intuitive employer/employee experience – at a premium. A private plan does present an opportunity to bundle on other non-medical insurance lines and save. Key Next Steps: Start internal conversations with HR, finance, and operations now. Audit current disability insurance coverages to identify what will overlap with MN PFL and what, if any, gaps are present for high-income earners. Run a cost/benefit analysis between a state or private plan. Map out strategy for intermittent leave, including backup staffing and cross-training. Build a Q3/Q4 implementation roadmap to ensure all systems and procedures are ready for 2026. With 2026 fast approaching, now is the time to get ahead of the curve and prepare your team, policies, and workforce for the changes ahead. Interested in learning more? Contact Us! Cole Skelton CSkelton@cottinghambutler.com 319.936.3463

Written by: Emily Vorpahl, Sales Executive - Employee Benefits In today’s competitive labor market, employers are under more pressure than ever to offer benefits that not only protect employees but also engage them, simplify administration, and deliver measurable value. At Cottingham & Butler, we’ve built a unique Engagement Team that brings together technology, communications, and non-medical expertise to create a seamless experience for employers and employees alike - one that enhances understanding, increases efficiency, and ensures every benefit delivers value. Three Teams, One Seamless Experience While each team brings its own expertise, they operate with one shared mission: to help employers attract and retain employees by protecting their financial well-being through market-leading benefits, communication, and technology. Together, they work in lockstep to guide employers from initial strategy and implementation to long-term execution and ongoing support. Maximize Value: Non-Medical Team By negotiating with carriers and analyzing contract language in depth, our Non-Medical Team helps employers deliver high-value, cost-effective coverage across a range of offerings - including dental, vision, disability, life, accident, critical illness, hospital indemnity, and more. By digging into the details and uncovering gaps in coverage, our team helps employers save 25–30% while enhancing the benefits they provide. Employees also see the impact directly, saving 19–40% annually out of their paychecks. Educate Employees: Communication Team We know communication strategies aren’t one-size-fits-all. That’s why our Communication Team partners with employers to develop tailored approaches based on industry, demographics, location, and workforce size. Fro m open enrollment sites to flyers and posters, every piece of collateral is designed to be clear, engaging, and on-brand. This personalized approach drives measurable results and helps employees make more confident decisions: 91% of employees complete enrollment without HR assistance, enrollments in non-medical coverage increase by 5–10%, and enrollment in one benefit rises from 46% to 60% after targeted education efforts. Drive Efficiencies: Technology Team Our Technology Team helps employers simplify benefits administration by consulting on and implementing systems that reduce errors and improve efficiency. With experience across 30+ platforms - including ADP, Paycom, Employee Navigator, and more - our analysts provide hands-on support with data management, file feeds, and billing processes. On average, this saves clients over 30 hours per year, with some billing tasks reduced from hours to mere minutes. The Power of Alignment What makes our Engagement Team effective is the way these three groups operate as one. Through regular collaboration, shared insights, and a commitment to continuous improvement, we ensure every strategy is aligned from start to finish. It’s not about passing tasks from one team to the next - it’s about working together to deliver a unified experience that feels seamless to clients and their employees. Conclusion Whether it’s navigating complex carrier relationships, optimizing coverage, improving employee engagement, or untangling technology challenges, our Engagement Team solves problems before they become pain points. Interested in learning more? Contact us! Emily Vorpahl EVorpahl@cottinghambutler.com 608.467.0453 ext 2358

Building a truly effective safety culture goes far beyond compliance checklists and policy manuals - it requires a fundamental shift in how leaders approach trust, communication, and organizational learning. In our recent webinar, "Creating an Unstoppable Safety-First Culture," Safety Consultant Scott Christenson demonstrated how the most resilient organizations transform safety from a mandated requirement into a shared cultural strength. Drawing on proven best practices from industry and human psychology, this recorded session reveals that when people feel trusted, valued, and informed, they naturally embrace safety as a core value rather than an external obligation. Here are the four essential strategies that will help you cultivate a workplace where safety becomes second nature: Build genuine relationships with your team by trusting them through both successes and failures, creating a restorative culture that embraces humanity that focuses on learning rather than blame. Establish an open information environment that encourages real, raw dialogue while embracing and addressing bad news transparently when it occurs. Cultivate a deep understanding of core priorities by utilizing learning teams to explore all operational aspects and bridge the gap between "work-as-imagined" and "work-as-done." Develop realistic, fluid action plans by gathering insights from all organizational levels and celebrating milestones to maintain momentum and motivation. Click here for the presentation.

When a claim happens, insurance becomes a vital lifeline for your business. However, navigating complex claims can feel like an overwhelming maze of processes. Our dedicated claims advocacy team fights for your interests, driving quick resolutions that keep your operations running smoothly. Their meticulous attention to detail and unwavering commitment to fairness helps translate your policy coverage to your advantage, maximizing your settlement and safeguarding your financial health. Our approach delivers real results. In 2024 alone, our Claims Advocates team achieved over $9,025,065 in total savings and recoveries for our clients. "We are problem solvers when it comes to claims issues, and we get to have a direct and positive impact on our clients’ claims experiences.  That’s the best part.  Our clients are so appreciative and are very vocal about their appreciation.  It makes all of the effort worthwhile ." - Troy, Assistant VP Client Success Stories Our passionate advocacy for clients' interests creates relationships that extend far beyond individual claims. These success stories showcase how our dedicated service transforms satisfied customers into clients for life. 25% More Coverage: See How View Real Results: $160K Cargo Saved See Real Results: $196K Saved "I am not sure exactly what to say other than 'Thank You' many times. Cottingham & Butler was persistent through all of this. We were able to turn to you, and your team always found another way of looking at things. We are very grateful. It now opens the door for us to go back to [our customer] and collect our money without having to go through the lawsuit route. I am never going to forget this!" Discover more client stories at the link below!

Written by: Catherine Gebhardt, Sales Executive - Employee Benefits Minnesota Paid Family Medical Leave (MN PFML) is a game-changer  for employee benefits and workplace culture. With thoughtful planning and proactive communication, HR teams can turn this mandate into an opportunity to support employee well-being and strengthen organizational trust. Start Date : January 1, 2026, This ambitious initiative, designed to provide up to 20 weeks of paid, job-protected leave for eligible employees. For HR professionals, this marks a significant shift in how leave is managed, tracked, and communicated. Internal management, communication and continuing education are key to stay up to date on the latest changes. Here’s what you need to know to prepare your organization for Minnesota PFML: PFML benefits are designed to replace a higher percentage of income for lower-wage workers, with up to 90% wage replacement for the lowest earners. Wage replacement tapers down as annual wages increase.   Maximum weekly wage for 2026 = $1372   Weekly wage repayments cannot  exceed the state average weekly wage of $1,372. Meaning, no matter your pre-leave earnings, the maximum weekly wage replacement amount cannot exceed the state's average weekly wage. Average weekly wage calculations will be recalculated by the State of Minnesota on an annual basis and applied for the upcoming calendar year. Premiums and Contributions Starting January 1 st , 2026, employers and employees will share the cost of the program: Total premium rate: 0.88% of employee wages Employer minimum contribution: 50% (0.44%) Employers may choose to cover the full amount or a custom percentage as long as the minimum contribution of 50% is met.   Employer FML Contributions, under IRS Revenue Ruling 2025-04, are federally tax deductible as an ordinary and necessary business expense under excise taxes or wages, depending on the accounting classification of the employer. Plan Options for Employers Employers have three options to comply: State Plan  – Ideal for small businesses (2–20 Minnesota employees) with limited HR resources. Private Plan :  Insurance Carrier   Partner – Suitable for small to mid-sized companies (20–500 Minnesota employees) seeking additional administrative support, integrated leave management programs, and additional non-medical benefits. Private Plan : Self-Funded, Vendor Managed, Self-Managed – Available for larger employers (500+ Minnesota employees) with robust HR and legal teams. Larger employers are also choosing private plans through an insurance carrier partner due to the unpredictability, complexity and volume of claims, plan administration assistance, along with the ability to have an outsourced partner for their HR team. ** Each plan option must meet or exceed the benefits offered by the state plan. Private insurance carrier plans are responsible for plan filing, annual reporting, and compliance. Private plans also manage regulatory updates to ensure plan guidelines concur with the state plan. **   Small and mid-sized employers are leaning towards either the State Plan or Private Insurance Plan strategy. This will help to alleviate administration, leave management and legal compliance, with regards to issues which may arise when creating plan documents from scratch. HR’s Role in PFML Administration HR teams will be at the center of PFML implementation. Key responsibilities include: Tracking leave  (continuous, intermittent, or reduced/nonconforming schedule accommodations) including leave taken + remaining available balance Verify employee eligibility , including employee type (fulltime, part time, seasonal)  - Coordinating  with insurance carriers or the state plan Maintaining  employee benefits during leave Communication  of benefits eligibility and/or benefits termination timeline should the employee not return to work. Educating  employees on their rights and responsibilities. Newly hired employees must receive notice of MN PFML within 30 days of hire date Retain  documents including any notes regarding insufficient notice of initial leave request or extension of leave requests  Communicate  leave notice violations or issues to the Commissioner/State of MN PFML department   Whether working through the MN State Plan, a Private Insurance Carrier, or Self-Funding, communication with the MN State Insurance Commissioner and/or the State of MN PFML department will be required. Interested in learning more? Contact Us! Catherine Gebhardt CGebhardt@cottinghambutler.com (608) 467-5021 ext 2351