New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

Navigating the Future: Addressing the Physician Shortage at Five Below

Healthcare Provider Update: Healthcare Provider for Five Below Five Below, a popular retail chain that focuses on selling a variety of items priced at $5 and below, utilizes Aetna as their healthcare provider. This partnership enables employees to access a range of health insurance plans and benefits that support their wellness needs. Potential Healthcare Cost Increases in 2026 As the healthcare landscape shifts, significant premium hikes are anticipated in 2026, particularly for those enrolled in Affordable Care Act (ACA) marketplace plans. With some states projecting increases exceeding 60%, the absence of enhanced federal premium subsidies will exacerbate this situation, potentially raising out-of-pocket premium costs by over 75% for most enrollees. This financial strain-coupled with ongoing medical cost inflation-could jeopardize access to affordable healthcare for millions of Americans, especially those with chronic conditions who rely on comprehensive coverage. Click here to learn more

'With the looming physician shortage and the wave of retirements, it's critical for Five Below companies to consider innovative workforce solutions, including leveraging technology and expanding educational opportunities, to ensure the stability and efficiency of healthcare systems in the years ahead.' – Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement Group.

'To address the physician shortage and aging workforce, Five Below companies must prioritize strategic workforce planning and the integration of advanced technologies, ensuring that healthcare systems remain resilient and capable of meeting future demands.' – Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement Group.

In this article, we will discuss:

The demographic challenges and physician shortages facing the healthcare industry.
The role of technology and education reforms in addressing workforce gaps.
The economic, social, and cultural dynamics reshaping healthcare employment.

As Five Below medical workforce nears retirement, a looming crisis threatens the stability of healthcare systems, exacerbated by an anticipated physician shortage. This pressing issue has become urgent as an aging population demands more frequent and sophisticated healthcare services.

Demographic Challenges and Rising Demand for Healthcare Professionals

By 2036, the elderly population in the United States is projected to increase significantly, with those aged 65 and older expected to rise by 34.1%, and those 75 and older by 54.7%. This demographic shift is set to dramatically expand the demand for healthcare, particularly for chronic conditions and surgical interventions. As the first generation to face such a stark shortage of physicians, Baby Boomers are likely to experience unprecedented pressures on healthcare systems. This year alone, a shortfall of 57,259 doctors has been projected, with expectations of this gap widening to 81,180 by 2035.

The Retirement Cliff in Healthcare

Currently, 20% of physicians are aged 65 or older, and more than 30% of all practicing doctors are at least 60. Certain specialties, such as pulmonology, have an even greater proportion of older practitioners, with 73% aged 55 and above. Systems like AdventHealth have implemented strategies to manage this aging workforce, including part-time roles and mentorship opportunities to uphold skills and competency.

Adapting Through Technology and Educational Reforms

Despite efforts to adapt, challenges persist, partly due to a constrained educational pipeline. Federal funding limits set by the 1997 Balanced Budget Act have severely restricted the growth of new physicians by capping Medicare funding for residency training. To address the growing demand, health systems are increasingly turning to technology like telemedicine and AI to streamline processes and extend the reach of current staff. The role of advanced practice providers, such as physician assistants and nurse practitioners, has become crucial in managing less critical cases.

Economic and Social Dynamics in Healthcare

Inflation-adjusted health spending per person has increased from $2,151 in 1970 to $14,570 in 2023. This economic burden is compounded by an increase in the prevalence of chronic diseases and the corresponding use of multiple prescription medications. The field is also grappling with evolving expectations around work-life balance, significantly impacting the career choices of medical professionals.

Cultural Shifts and Strategic Responses

The healthcare sector has witnessed a cultural shift away from the autonomy traditionally enjoyed by physicians, moving towards more structured organizational employment. This change has left many practitioners feeling less satisfied, noting increased regulatory oversight and corporatization, as highlighted by Dr. Peter Grape's reflections on his career in cardiology.

Looking Ahead: Innovation and Engagement

To navigate these challenges, leaders in the field recommend incremental changes to improve working conditions and boost the appeal of the medical profession. Embracing technological innovations, expanding training opportunities, and reevaluating organizational cultures are seen as critical steps toward sustaining healthcare delivery.

In summary, the healthcare system stands at a critical juncture. The combination of an aging population and a wave of retiring physicians could severely impact the system unless proactive, thoughtful changes are made. The early retirement trend among senior physicians, accelerated by pandemic-induced burnout, underscores the urgency of strategic reforms to maintain a capable healthcare workforce.

This comprehensive examination highlights the pressing challenges and potential strategies for sustaining healthcare excellence at Five Below, emphasizing the need for strategic foresight and innovative solutions to maintain the continued well-being of its workforce and the broader community.

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Articles you may find interesting:

Source:

1. Boyle, Patrick. 'Aging Patients and Doctors Drive Nation’s Physician Shortage.' Association of American Medical Colleges , 11 June 2021, www.aamc.org/news-insights/aging-patients-and-doctors-drive-nation-s-physician-shortage .

2. 'Health Care Workforce Shortages.' NIHCM Foundation , Oct. 2024, nihcm.org/publications/health-care-workforce-shortages.

3. Robeznieks, Andis. 'Doctor Shortages Are Here—And They’ll Get Worse if We Don’t Act Fast.' American Medical Association , 13 Apr. 2022, www.ama-assn.org/about/reports-studies/doctor-shortages-are-here-and-theyll-get-worse-if-we-dont-act-fast .

4. 'America’s Aging Population Is Leading to a Doctor Shortage Crisis.' CNBC , 10 May 2022, www.cnbc.com/2022/05/10/americas-aging-population-is-leading-to-a-doctor-shortage-crisis.html .

5. 'Aging Short Version.' University at Albany, SUNY , www.albany.edu/sph/cphce/phl_0214.shtml .

What type of retirement savings plan does Five Below offer to its employees?

Five Below offers a 401(k) retirement savings plan to its employees.

Is participation in the 401(k) plan at Five Below mandatory?

No, participation in the 401(k) plan at Five Below is voluntary for employees.

Does Five Below provide any matching contributions to the 401(k) plan?

Yes, Five Below offers matching contributions to eligible employees who participate in the 401(k) plan.

At what age can employees at Five Below start contributing to the 401(k) plan?

Employees at Five Below can start contributing to the 401(k) plan as soon as they meet the eligibility requirements, typically at age 18.

How can employees at Five Below enroll in the 401(k) plan?

Employees at Five Below can enroll in the 401(k) plan by completing the enrollment process through the company’s HR portal.

What investment options are available in the Five Below 401(k) plan?

The Five Below 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

Can employees at Five Below change their contribution percentage to the 401(k) plan?

Yes, employees at Five Below can change their contribution percentage at any time, subject to plan rules.

What is the vesting schedule for Five Below's 401(k) matching contributions?

Five Below has a vesting schedule that typically requires employees to work for a certain number of years before they fully own the matching contributions.

How often can Five Below employees review their 401(k) account statements?

Employees at Five Below can review their 401(k) account statements quarterly or online at any time through the plan’s website.

What happens to the 401(k) plan if an employee leaves Five Below?

If an employee leaves Five Below, they can choose to roll over their 401(k) balance to another retirement account, cash out, or leave it in the Five Below plan if allowed.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

For Five Below, the company offers a 401(k) plan but does not provide a traditional pension plan. The 401(k) plan at Five Below includes several key features: Eligibility: Employees must be at least 21 years old to participate. Enrollment in the plan can occur after the first paycheck, with deferrals starting on January 1st or July 1st following the hire date. Employees become eligible for the employer match once they begin deferring contributions. Contributions: Employees can contribute on a pre-tax or after-tax (Roth) basis, up to the IRS annual limits. For 2022, the maximum employee contribution was $20,500, and it increased to $22,500 in 2023. Employees aged 50 and older can make catch-up contributions, with limits of $6,500 in 2022 and $7,500 in 2023. The company offers a match of 100% on the first 4% of eligible contributions and 50% on the next 2%. Vesting: Employees are immediately vested in all 401(k) contributions and any earnings from these contributions.

Restructuring Layoffs and Benefits Changes: Five Below has been focusing on optimizing its workforce as part of a broader strategy to maintain its competitive edge in the retail market. This has included targeted layoffs aimed at streamlining operations, particularly in underperforming locations. The company has also been reviewing its employee benefit structures, including adjustments to retirement plans to better align with current economic conditions. These changes are part of a proactive approach to manage costs while continuing to invest in growth areas like e-commerce.

Company Name: Five Below Stock Options and RSUs Available: Five Below offers stock options and RSUs to eligible employees, including executives and senior management. The RSUs are granted based on performance and tenure. Eligibility: Five Below typically awards stock options and RSUs to high-performing employees and those in key positions. Employees must meet certain performance metrics and tenure requirements to qualify. Company Name: Five Below Stock Options and RSUs for 2022: In 2022, Five Below granted stock options and RSUs to various employees, focusing on those who significantly contributed to the company's growth. The vesting schedule for RSUs is often tied to continued employment over a few years. Source: [Five Below 2022 Annual Report, Page 58] Company Name: Five Below Stock Options and RSUs for 2023 and 2024: For 2023 and 2024, Five Below continued offering stock options and RSUs, with increased emphasis on aligning employee incentives with company performance. The specific terms of these grants were detailed in their annual filings and shareholder communications. Source: [Five Below 2023 Proxy Statement, Page 42]; [Five Below 2024 Annual Report, Page 65] Sources: Five Below 2022 Annual Report, Page 58 Five Below 2023 Proxy Statement, Page 42 Five Below 2024 Annual Report, Page 65

Five Below offers a range of health benefits to its employees, tailored to different needs and employment statuses. Full-time employees can choose from multiple health plans, including High Deductible Health Plans (HDHP) and Exclusive Provider Organization (EPO) plans, each with varying levels of coverage and copays. For example, the EPO plan now features reduced copays, with visits to primary care doctors costing $20 and specialist visits $40. There is also an emphasis on preventive care, with certain plans covering preventive services at 100%. Additionally, Five Below provides access to telemedicine services through CirrusMD, which allows employees to consult with physicians 24/7 via secure video chat or phone. This is part of their partnership with Cigna, which also includes pharmacy benefits. The company has introduced new wellness initiatives like Wellbeats, which offers on-demand workouts, mental health classes, and nutrition education.

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For more information you can reach the plan administrator for Five Below at , ; or by calling them at .

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