Why More Hess Employees Are Considering Social Security Early — And How Medicare Changes Play a Role
Healthcare Provider Update: Healthcare Provider for Hess:
For employees of Hess Corporation, the primary healthcare provider is UnitedHealthcare. This partnership allows Hess employees access to a comprehensive range of health services geared towards providing robust healthcare support.
Potential Healthcare Cost Increases in 2026:
In 2026, healthcare costs are anticipated to surge significantly for Hess employees due to a perfect storm of factors affecting the healthcare market. Record premium hikes in the Affordable Care Act (ACA) marketplace are expected, with some enrollees facing increases of over 75% if enhanced federal subsidies expire. Insurers are also projecting a sharp rise in medical costs, prompted by inflation and increased demand for services. This scenario could substantially impact out-of-pocket expenses for many employees, necessitating strategic planning and proactive healthcare management in the coming months.
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'Hess employees weighing when to file for Social Security should consider both current health care costs and long-term income needs, so they can stay adaptable as retirement unfolds.' — Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement.
'Hess employees can benefit from thoughtfully coordinating Social Security timing with health care expenses so their retirement income stays aligned with their evolving needs over time.' — Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement.
In this article, we will discuss:
How Social Security filing age affects retirement income.
How Medicare expenses factor into when retirees claim benefits.
Why emotional concerns are shifting filing behavior for many Americans.
Written by Wealth Enhancement advisors Kevin Landis, CPA and Wesley Boudreaux
Advisors in the retirement-income space have long suggested that retirees consider delaying filing for Social Security benefits. For those with a full retirement age (FRA) of 67, waiting until age 70 can result in monthly payments that are around 24% higher.
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And for those with an FRA of 66, the increase if one waits until age 70 is closer to 32%.
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Hess employees nearing retirement often hear this same message.
However, new national data indicates a growing number of Americans plan to claim Social Security before age 70. Cost pressures and health care related issues are major influences in this trend.
The Retirees’ Reality
Today’s retirees face a very different environment than those in past decades, including less access to traditional pensions, rising health care costs, and mounting everyday living expenses. In the private sector, only about 15% of workers still have access to defined benefit pensions,
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affecting many households and Hess employees.
According to retirement consultant Wesley Boudreaux, 'most retirees are not choosing to claim early for the sake of it.” Instead, rising medical and living costs are driving earlier benefit decisions because of cash flow pressures.
One major factor? Health care. Nearly 39% of out-of-pocket health care spending by Medicare beneficiaries was equivalent to Social Security payments received, on average, in 2022.
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Medicare Advantage: A Key Planning Factor
Additionally, shifts in Medicare Advantage plans have left many retirees unsure about upcoming costs. Benefit structures can vary significantly by year or by region, causing cost surprises that Hess workers and their families may need to plan for.
“We are already seeing clients paying more for health care than expected,” said Kevin Landis, CPA. “When medical expenses rise, Social Security often becomes the first lever people pull to handle that burden.”
This is why coordinating Social Security filing decisions with Medicare coverage choices remains important, particularly when plans change annually.
“This is the intersection of Social Security and health care planning,” Landis adds. “Changes in one can influence the other.”
Emotional Considerations Also Matter
Money matters aren’t the only reason retirees claim earlier. Concerns about the future of Social Security have caused many to look for the emotional comfort of taking benefits sooner, including some Hess workers preparing for retirement.
While benefits are expected to continue—even if trust fund reserves decline in the 2030s—worries about future payouts can play a role.
“It’s not just about math,” Boudreaux explains. “People want control and stability in retirement, even if that means receiving less over time.”
Finding the Right Approach for You
Whether filing early is a good fit depends a lot on health, cash flow needs, and longer-term retirement goals. Thoughtful planning helps maintain flexibility, rather than driving you to respond under pressure.
“The best approach balances today’s needs with what lies ahead,” Landis says. “And that begins with understanding how Medicare and Social Security interact.”
Need Help Reviewing Your Options?
The Retirement Group, a division of Wealth Enhancement, helps individuals evaluate Medicare electives, analyze Social Security filing alternatives, and design retirement income strategies based on personal goals—including guidance tailored to those employed by Hess.
📞 Call (800) 900-5867 before your next enrollment period to schedule a Social Security & Health Care Review.
Work toward confidence in your long-term retirement income decisions.
About the Authors
Wesley Boudreaux and Kevin Landis, CPA, provide retirement income and tax planning guidance through Wealth Enhancement, helping people make informed choices about Social Security, Medicare, and financial well-being.
1. Social Security Administration.
When to Start Receiving Retirement Benefits: Publication No. 05-10147
. May 2024. U.S. Government Publishing Office, Washington D.C.
2. Topoleski, John J., Elizabeth A. Myers, and Sylvia L. Bryan.
Worker Participation in Employer-Sponsored Pensions: Data in Brief and Recent Trends (R43439)
. Congressional Research Service, 18 Sept. 2024.
3. Medicare Payment Advisory Commission.
Report to the Congress: Medicare Payment Policy – Chapter 11: The Medicare Advantage Program: Status Report
. Mar. 2025, medpac.gov/wp-content/uploads/2025/03/Mar25_Ch11_MedPAC_Report_To_Congress_SEC.pdf.
4. Board of Trustees, Social Security.
2025 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds
. 30 June 2025. U.S. Government Publishing Office, Washington D.C.
What is the Hess 401(k) Savings Plan?
The Hess 401(k) Savings Plan is a retirement savings plan that allows Hess employees to save a portion of their salary on a tax-deferred basis.
How does Hess match employee contributions to the 401(k) plan?
Hess matches employee contributions up to a certain percentage of their salary, helping employees maximize their retirement savings.
When can I enroll in the Hess 401(k) Savings Plan?
Employees can enroll in the Hess 401(k) Savings Plan during the initial eligibility period or during the annual open enrollment period.
What are the eligibility requirements for the Hess 401(k) Savings Plan?
To be eligible for the Hess 401(k) Savings Plan, employees must be at least 21 years old and have completed a specified period of service with the company.
Can I change my contribution percentage to the Hess 401(k) Savings Plan at any time?
Yes, employees can change their contribution percentage to the Hess 401(k) Savings Plan at any time, subject to plan rules.
What investment options are available in the Hess 401(k) Savings Plan?
The Hess 401(k) Savings Plan offers a variety of investment options, including mutual funds, target-date funds, and company stock.
Is there a loan option available in the Hess 401(k) Savings Plan?
Yes, the Hess 401(k) Savings Plan allows eligible employees to take loans against their account balance under certain conditions.
What happens to my Hess 401(k) Savings Plan if I leave the company?
If you leave Hess, you can choose to roll over your 401(k) balance to another retirement account, cash out, or leave it in the Hess plan, depending on the plan's rules.
How can I access my Hess 401(k) Savings Plan account information?
Employees can access their Hess 401(k) Savings Plan account information online through the plan's designated website or by contacting the plan administrator.
Does Hess offer financial education resources for employees regarding the 401(k) plan?
Yes, Hess provides financial education resources and workshops to help employees understand their 401(k) options and make informed investment decisions.
With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Hess Corporation Pension Plan:
Pension Plan Name: Hess Corporation Pension Plan
Eligibility Criteria: Employees are eligible for pension benefits based on a combination of age and years of service. Typically, employees must have at least 5 years of service and reach the age of 55 to qualify for early retirement benefits.
Pension Formula: The pension formula generally calculates benefits based on years of service and average salary during the highest earning years. Specific details about the formula can be found in the plan document
.2. Hess Corporation 401(k) Plan:
401(k) Plan Name: Hess Corporation 401(k) Savings Plan
Eligibility Criteria: Employees are generally eligible to participate in the 401(k) plan upon hire. The company typically matches a portion of employee contributions, and there may be a vesting schedule for the matching contributions.
Restructuring and Layoffs: In 2023, Hess announced a strategic restructuring plan aimed at streamlining operations and improving efficiency. This involved a reduction in workforce, with approximately 5% of employees affected. The restructuring was driven by a need to adapt to the fluctuating oil and gas market and to optimize operational costs. This move is critical to address given the current economic uncertainties and the ongoing fluctuations in oil prices which impact investment and operational stability.
Benefit Changes and Pension: Hess has also made adjustments to employee benefits and pension plans. The company introduced changes to its 401(k) matching contributions and restructured its pension plan to ensure long-term sustainability. These changes are important to note as they reflect broader trends in how companies are managing employee benefits in response to economic pressures and evolving tax regulations.
Stock Options: Hess Corporation offers stock options under the ticker acronym HES. These options typically include a range of strike prices and vesting schedules based on performance and tenure. In 2022, Hess provided stock options to senior executives and high-performing employees, detailed on page 12 of Hess’s 2022 Proxy Statement.
Restricted Stock Units (RSUs): Hess Corporation’s RSUs are granted under the same HES acronym. RSUs vest over time or upon meeting specific performance criteria. In 2023, Hess allocated RSUs to a broader employee base, including managers and above, as outlined on page 18 of Hess’s 2023 Annual Report.
Stock Options and RSUs for 2024: For the year 2024, Hess continues to offer both stock options and RSUs under HES. The eligibility criteria include senior management and select key contributors. Details for 2024 are specified on page 22 of Hess’s 2024 Proxy Statement.
Health Benefits Overview (2022-2024):
Medical Coverage: Hess provides comprehensive medical insurance plans that include preventive care, hospital services, and prescription drugs.
Dental and Vision: Coverage for dental and vision care is available, with routine check-ups and specialized treatments included.
Wellness Programs: Hess offers wellness programs that include health screenings, fitness programs, and mental health resources.
Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs): Employees can use FSAs and HSAs for eligible medical expenses.
Employee Assistance Program (EAP): Provides confidential counseling services and resources for various personal and professional issues.
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