Why More Laboratory Corp. of America Employees Are Considering Social Security Early — And How Medicare Changes Play a Role
Healthcare Provider Update: Healthcare Provider for Laboratory Corporation of America
Laboratory Corporation of America (LabCorp) is a prominent healthcare provider known for offering comprehensive laboratory testing and diagnostic services, supporting healthcare professionals in diagnosing and managing patient care effectively. LabCorp operates numerous patient service centers, ensuring accessibility to a wide range of tests and results for patients across the United States.
Potential Healthcare Cost Increases in 2026
As we look ahead to 2026, healthcare costs are projected to see significant increases, largely driven by a combination of factors including the potential expiration of enhanced federal subsidies for ACA marketplace plans and rising medical expenses. Many states are bracing for premium hikes exceeding 60%, with out-of-pocket costs for consumers potentially soaring by over 75%, according to industry reports. This scenario paints a daunting picture for families dependent on health insurance coverage, as insurers tighten oversight and grapple with surging drug prices, hospitalization costs, and increased demand for behavioral health services. Ultimately, consumers will need to navigate these changes carefully to maintain access to affordable healthcare.
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'Laboratory Corp. of America 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.
'Laboratory Corp. of America 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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Laboratory Corp. of America 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 Laboratory Corp. of America 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 Laboratory Corp. of America 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 Laboratory Corp. of America 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 Laboratory Corp. of America.
📞 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 401k/Savings Plan offered by Laboratory Corp. of America?
The 401k/Savings Plan at Laboratory Corp. of America is a retirement savings plan that allows employees to save a portion of their salary on a tax-deferred basis.
How can employees of Laboratory Corp. of America enroll in the 401k/Savings Plan?
Employees can enroll in the 401k/Savings Plan by completing the enrollment process through the company’s benefits portal during the open enrollment period or when they first become eligible.
What types of contributions can employees make to the Laboratory Corp. of America 401k/Savings Plan?
Employees can make pre-tax contributions, Roth (after-tax) contributions, and potentially catch-up contributions if they are age 50 or older.
Does Laboratory Corp. of America match employee contributions to the 401k/Savings Plan?
Yes, Laboratory Corp. of America offers a matching contribution to employee contributions, which helps to enhance retirement savings.
What is the vesting schedule for the Laboratory Corp. of America 401k/Savings Plan?
The vesting schedule for Laboratory Corp. of America’s matching contributions typically follows a graded vesting schedule, which means employees earn ownership of the match over a period of time.
Are there any investment options available within the Laboratory Corp. of America 401k/Savings Plan?
Yes, the Laboratory Corp. of America 401k/Savings Plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.
Can employees of Laboratory Corp. of America take loans from their 401k/Savings Plan?
Yes, employees may be able to take loans from their 401k/Savings Plan, subject to the plan's rules and limits.
What happens to the 401k/Savings Plan if an employee leaves Laboratory Corp. of America?
If an employee leaves Laboratory Corp. of America, they have several options regarding their 401k/Savings Plan, including rolling over the balance to another retirement account, cashing out, or leaving the funds in the plan if allowed.
How can employees of Laboratory Corp. of America access their 401k/Savings Plan account information?
Employees can access their 401k/Savings Plan account information through the company’s benefits portal or by contacting the plan administrator.
Does Laboratory Corp. of America provide financial education regarding the 401k/Savings Plan?
Yes, Laboratory Corp. of America offers resources and financial education programs to help employees understand their 401k/Savings Plan options and make informed decisions.
With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Plan Names and Details:
Pension Plan Name: Laboratory Corp. of America does not offer a traditional pension plan. Instead, the company provides a 401(k) plan for its employees.
401(k) Plan Name: Laboratory Corp. of America 401(k) Plan.
Eligibility and Qualification:
401(k) Plan Eligibility: Employees become eligible to participate in the Laboratory Corp. of America 401(k) Plan after completing 30 days of employment.
Years of Service and Age Qualification: There are no specific age or service requirements to qualify for the 401(k) plan. All employees who meet the basic eligibility criteria can participate.
Pension Formula:
Pension Plan Formula: As Laboratory Corp. of America does not offer a pension plan, there is no pension formula to provide.
News on Restructuring and Layoffs: LabCorp has been undergoing significant restructuring in 2023, which included a notable reduction in workforce. In the first half of 2023, LabCorp announced a series of layoffs impacting various departments, aimed at optimizing operational efficiency and reducing costs. This move was part of a broader strategy to streamline operations amidst a challenging economic environment. News on Company Benefits and Pension Changes: Alongside layoffs, LabCorp has made adjustments to its employee benefits package, including changes to retirement plans. The company has revised its 401(k) matching contributions, reducing the percentage of employer contributions. Additionally, there have been updates to the pension plan, with changes in the vesting schedule and benefit formulas. These adjustments are crucial for employees to understand, especially given the current investment and tax environment, which could impact retirement planning and financial stability.
Laboratory Corp. of America provides stock options and RSUs as part of its compensation package. Stock options typically vest over a period of time, with specific vesting schedules detailed in individual grant agreements. RSUs are granted based on performance and time-based vesting criteria, with awards given to senior executives and key employees.
Laboratory Corp. of America (LabCorp) offers a range of health benefits that emphasize comprehensive coverage for its employees. In 2022, LabCorp provided various health plans, including Preferred Provider Organization (PPO) and High Deductible Health Plans (HDHPs), designed to cater to different needs and preferences. These plans typically include benefits such as preventive care, telemedicine services, and access to a broad network of healthcare providers. The company also includes health savings accounts (HSAs) and flexible spending accounts (FSAs) to help employees manage out-of-pocket costs. For 2023 and 2024, LabCorp continued to enhance its health benefits by integrating wellness programs, mental health support, and expanded coverage options to align with evolving employee needs and regulatory changes.
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