Welding & Gas CFO Club Recap August 2025

The meeting began with introductions from financial leaders across different companies who shared their territories and roles. The main discussion focused on AI usage in financial and accounting departments, including experiences with automation, data processing, and policy development, followed by a detailed conversation about healthcare captive strategies and cost management approaches. The group concluded by exploring various healthcare coverage policies, including ICHRA arrangements and emerging benefits trends, while also discussing potential topics for their next meeting including accounting firm selection and property ownership considerations.

Next Steps

• Develop AI usage policies with focus on approved use cases, prohibited data uploads, and security controls
• Review AI policies every 6-12 months due to rapid technology changes
• Implement corporate approval process for AI usage requests
• Consider developing internal AI technology vs using external platforms for sensitive data
• Evaluate healthcare captive options for stop loss coverage and risk sharing
• Explore high-performance networks in multiple states to optimize healthcare costs
• Consider self-funding and captive models for better cost control and transparency
• Review pharmacy costs and specialty medication management in healthcare plans

Note Summary

Financial Leaders Discuss AI and Healthcare

The meeting began with introductions from financial leaders across different companies who shared their territories and roles. Participants introduced themselves, highlighting their regions and responsibilities. The discussion set the stage for the main topics by establishing the diverse backgrounds of attendees.

• CFOs and vice presidents from regions such as Michigan, Illinois, New York, Missouri, and Montana shared their roles.
• Personal anecdotes and regional insights were briefly discussed.
• Special guest provided insights on AI and healthcare topics.

AI Implementation in Financial Departments

The group focused on how AI is being used within financial and accounting functions, emphasizing best practices and policy development.

• Experiences shared on automating tasks with Python and AI tools, such as data extraction and transaction coding.
• The importance of developing and regularly updating AI policies due to rapid technological changes.
• Implementation of corporate approval processes for AI use to ensure control and compliance.
• Balancing AI efficiency with data security and regulatory requirements.

AI Applications in Business Operations

Participants discussed various practical applications of AI across different business functions, highlighting both opportunities and risks.

• Use of AI in Excel, including training modules for tools like Microsoft Excel Copilot.
• Examples of AI used for reviewing manuals and negotiating lease terms.
• Risks of unregulated AI use, especially in marketing, and the importance of formal policies.
• Personal experiences with AI for data analysis, contract review, and price negotiations.

AI in Accounts Payable Discussion

The conversation explored AI’s role in streamlining invoice processing and accounts payable workflows.

• Vendors were evaluated, with some costs deemed prohibitive and accuracy rates around 70-80%.
• Current OCR systems perform well, with one AP team handling all invoices at about 75-80% accuracy.
• Development of new AI-enabled AP systems is underway, with potential presentations at upcoming meetings.

AI Accuracy and Legal Concerns

The group addressed the reliability of AI and legal considerations related to its use.

• AI responses are approximately 70% accurate, with concerns about hallucinations or fabricated information.
• Use of AI for summarizing meetings and other tasks.
• Legal issues include intellectual property rights and the need for new laws to protect content creators.
• Emphasis on double-checking AI outputs, especially in legal and technical contexts.

Healthcare Captive Stop-Loss Strategies

Participants shared successful experiences with captive arrangements for managing healthcare stop-loss coverage.

• Examples included expanding individual stop-loss coverage and captive layers.
• Significant savings achieved through captive arrangements, with some maintaining flat benefits for multiple years.
• Captive popularity has increased over the past 3-5 years, driven by rising medical trend rates (7-10% annually).
• Pharmacy costs have grown from 5% to 30% of total healthcare spend.

Plan Design and Cost Management

The discussion focused on strategies to control healthcare costs through plan design and employee incentives.

• Employers aim for neutrality in plan choice, with minimal impact on overall costs.
• Plan design influences only 15-20% of claims costs.
• Decline in HSA participation, partly due to rising prescription drug costs.
• Challenges in designing plans for employees versus families, with some offering free plans for singles and charging more for families.

Spousal Healthcare Coverage Policies

The group examined policies related to spousal coverage and surcharges, considering incentives and compliance.

• Surcharges are common when both spouses have employer coverage.
• Incentives are explored to encourage plan diversity.
• Questions about Medicare eligibility and potential surcharges were raised.
• Coordination of benefits for adult children remains a complex but generally favorable aspect.

ICHRA: Employer Health Reimbursement

The concept of ICHRA was explained as a way for larger employers to manage healthcare costs through stipends.

• Suitable for companies with 50+ employees facing high healthcare expenses.
• Employers provide stipends for employees to purchase individual plans on the exchange.
• Benefits include budget control and ACA compliance.
• Challenges include user experience and transparency issues.
• Emerging benefits include pet insurance, financial wellness programs, and employer-sponsored savings accounts.

Accounting Firm Selection Discussion

Next steps include exploring how to select a new accounting firm, with input from participants experienced in this area.

• A participant shared their dissatisfaction with their current firm.
• The group discussed criteria for selecting firms and potential processes.
• Additional topics may include property ownership and leasing strategies relevant for succession planning and taxes.

Upcoming Dates

• CFO Club 10/15
  • Potential topics:
    • Selecting an accounting firm
    • How each company handles their properties (leases, entity structure/ownership, etc.)
• CFO Club 12/17