Dow Incorporated Employees Face Mounting Health Insurance Costs—How Rising Expenses Could Impact Financial Stability
'Rising health care costs have become a silent strain on long-term financial wellness, and Dow Incorporated employees should regularly evaluate their benefit options and adjust their retirement plans to keep pace with medical inflation,' – Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement.
'With health care expenses climbing faster than wages or inflation, Dow Incorporated employees must treat medical costs as a core part of their retirement strategy, not an afterthought, to maintain lasting financial resilience,' – Brent Wolf, CFP®, a representative of The Retirement Group, a division of Wealth Enhancement.
In this article, we will discuss:
How rising health insurance costs are reshaping employee and retiree financial outlooks.
The impact of health care inflation on long-term retirement readiness and workforce dynamics.
Practical strategies to manage escalating medical expenses and maintain financial resilience.
Rising Health Insurance Costs Are Driving Growing Financial Difficulties
by Brent Wolf, CFP®, Wealth Enhancement
The rising cost of health insurance continues to strain budgets across the nation. For Dow Incorporated workers and retirees, higher premiums expected for 2026 could significantly affect long-term fiscal outcomes. Pharmaceutical inflation, institutional inefficiencies, and soaring medical expenses have combined to make health care one of the most persistent budget pressures of this decade.
“One of the most destabilizing factors in personal finance is health care,” said Brent Wolf, CFP®, of Wealth Enhancement. Because premiums, copays, and deductibles tend to increase faster than both income and inflation,
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even Dow Incorporated professionals with competitive compensation packages may feel the tightening impact.
A Stressed-Out Health Care System
According to the Kaiser Family Foundation (KFF) 2025 survey, employees now contribute $6,850 on average toward the annual cost of employer-sponsored family health coverage (with total premiums surpassing $26,993 nationwide)—an increase of roughly 7% from last year and up 26% since 2020.
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Hospital consolidations, postponed care during the pandemic, and high prescription drug costs have created the perfect storm. As deferred treatments resume, utilization surges—leading insurers and large employers, such as Dow Incorporated, to shift a greater portion of costs to workers.
According to Wolf, “the system is under immense pressure.” Retirees are seeing similar inflation in their Medicare supplement premiums, while employers are balancing how much of those costs to absorb versus pass on.
Medical breakthroughs, from targeted cancer therapies to weight-loss medications, are improving outcomes but driving costs higher. Meanwhile, for-profit intermediaries and opaque pricing structures continue to inflate overall health care spending.
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The Unspoken Effect on Future Financial Readiness
Rising health care costs quietly eat into retirement readiness. Many Dow Incorporated employees nearing retirement underestimate how much medical expenses may increase once paychecks stop.
“Most people include taxes and living expenses in their retirement plans, but they don’t consistently account for medical inflation,” Wolf explained. “Health care can easily consume 20% to 30% of a retiree’s budget—and that figure continues to grow each year.”
For current workers, rising premiums can limit 401(k) contributions or reduce savings rates. A Dow Incorporated employee who reduces retirement plan contributions by $500 per month to offset health care costs could lose over $1 million in potential retirement assets over 30 years. “That’s the hidden cost few people calculate,” said Wolf.
Employers Reevaluating Their Position
Many corporations are reassessing how to balance premium subsidies and employee well-being. For companies like Dow Incorporated, maintaining comprehensive health coverage is a key part of retaining experienced talent and safeguarding long-term productivity.
“Organizations that absorb a greater share of premiums typically see higher engagement, lower turnover, and stronger morale,” Wolf said. “While the upfront cost is high, the return is often a healthier, more stable workforce.”
However, smaller industry players and contractors may not have the same flexibility. Wolf advises workers to assess total compensation—including health care contributions—when evaluating job opportunities.
“It’s effectively a 5–10% raise if your employer covers half your premium,” Wolf added. “Recognizing those hidden compensation advantages is vital for long-term planning.”
How to Handle Medical Expenses
Wolf recommends several steps for Dow Incorporated employees to manage health care costs and help strengthen long-term fiscal positioning:
1. Take full advantage of employer benefits. Use available premium-sharing programs, flexible savings accounts (FSAs), and health savings accounts (HSAs). HSAs, in particular, offer triple-tax advantages that can significantly reduce future health care burdens.
2. Incorporate medical cost inflation in retirement plans. Health care costs should be assumed to rise at least 5% annually, especially for those with chronic health concerns or long-term care needs.
3. Compare Medicare and supplemental plans carefully. Lower premiums can mask higher long-term expenses due to limited coverage or prescription restrictions.
4. Review coverage each year. The annual open enrollment period provides a chance to identify network changes or premium adjustments before they negatively affect your budget.
5. Plan early for long-term care. With private nursing home costs averaging more than $100,000 annually,
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hybrid life insurance or long-term care coverage can help preserve accumulated assets.
The Wider Financial Consequences
Rising health care costs influence more than personal budgets—they shape national economic patterns, retirement timing, and workforce participation.
“Health care expenses pose a real threat to long-term wealth for many,” Wolf warned. “They affects when people can afford to retire, how long they remain in the workforce, and how sustainable their income will be afterward.”
According to KFF research, health care premiums grew 6% since 2024, compared to a 4% rise in worker earnings and a 2.7% rate of inflation.
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For Dow Incorporated employees, this imbalance underscores the need for proactive planning.
Creating a Long-Term Financial Structure
Wolf stresses that health care should be integrated into your overall financial strategy, not treated as a fixed expense. For Dow Incorporated employees, that means crafting retirement and investment plans that can weather ongoing medical cost pressures.
“Finding the cheapest plan isn’t the goal,” Wolf said. “The goal is to build a financial structure that supports your family, your health, and your long-term fiscal well-being. Health care is not just a cost—it’s a cornerstone of long-term budget health.”
A study by Milliman Inc. found that a healthy 65-year-old retiring in 2025 may face lifetime health care costs of approximately $275,000 (men) to $313,000 (women) under Original Medicare with Medigap and Part D coverage.
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Retiring five years earlier could increase those lifetime costs by roughly 56%.
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Health care inflation—combined with premiums surpassing $25,000 per year and a 26% rise in health insurance costs since 2020—has created a new fiscal reality for Dow Incorporated employees and retirees alike. By leveraging HSAs and FSAs, accounting for annual medical cost inflation, and reassessing coverage each year, individuals can take active steps toward conserving long-term budget health.
Think of health care expenses as a slow leak in your financial tank. Each copay or premium increase might seem minor, but over time, it drains the resources meant for a dependable retirement. Like a skilled engineer maintaining vital equipment, Dow Incorporated employees must monitor their health care costs, plug fiscal leaks early, and fortify their plan before small issues become costly impairments.
About the Author
Financial planner Brent Wolf, CFP®, of Wealth Enhancement , focuses on health care expense planning and retirement income strategies. He helps clients align their medical coverage with broader fiscal goals to maintain long-term stability amid changing market and health care conditions.
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The Dow Chemical Company’s pension plan and retirement ages: The Dow Chemical Company’s pension plan structure impacts employees' retirement benefits based on their retirement age. Retiring earlier results in lower monthly payments due to reduced service time and potential early commencement penalties, while working longer allows for more service accrual and higher monthly benefits. Employees must evaluate how these factors align with personal retirement goals, as choosing to retire early might not provide as much financial security as delaying retirement(The Dow Chemical Compan…).
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20% mandatory withholding tax on lump-sum distributions: Lump-sum distributions from The Dow Chemical Company’s pension plan are subject to a 20% mandatory withholding tax if not directly rolled over into another qualified retirement plan. This tax can significantly impact an employee's immediate finances. However, opting to roll over the lump sum to a qualified plan defers taxation until funds are withdrawn, allowing employees to manage their tax liabilities better while continuing to grow their retirement savings(The Dow Chemical Compan…).
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Maximizing pension benefits: Employees at The Dow Chemical Company can maximize their pension benefits by carefully planning their retirement timing. Key strategies include working longer to accrue more service years, reviewing contribution limits, and understanding the benefit formula used. Aligning personal savings and pension claims with the optimal retirement age can result in more favorable financial outcomes(The Dow Chemical Compan…).
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How can employees of The Dow Chemical Company reach the benefits service center for additional inquiries regarding their pension plan, and what information should they prepare beforehand? Knowing how to contact the benefits service center is crucial for employees seeking clarity on their pension plan benefits. Preparing relevant information ahead of time can streamline the process, allowing for a more productive engagement with benefits specialists and ensuring that employees receive precise guidance tailored to their situations.
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For more information you can reach the plan administrator for Dow Incorporated at 1919 torrance blvd Torrance, CA 90501; or by calling them at 900-999-1009.
Further Information for Dow Incorporated* Employees
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