Why More LHC Group Employees Are Considering Social Security Early — And How Medicare Changes Play a Role
Healthcare Provider Update: Healthcare Provider for LHC Group:
LHC Group is primarily a provider of post-acute healthcare services, specializing in home health care, hospice, long-term acute care hospital services, and outpatient therapy. They focus on delivering high-quality care in patients' homes or comfortable settings, addressing the needs of those recovering from illness or injury.
Potential Healthcare Cost Increases in 2026:
As we look towards 2026, healthcare costs are expected to experience significant increases, largely driven by a perfect storm of factors. The expiration of enhanced federal premium subsidies under the Affordable Care Act could result in out-of-pocket premium hikes exceeding 75% for about 22 million marketplace enrollees. Coupled with projected medical inflation rates of 7.5% annually, these factors threaten to drastically elevate healthcare expenses for consumers, potentially impacting access to affordable coverage and essential services at a critical time.
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'LHC Group 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.
'LHC Group 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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LHC Group 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 LHC Group 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 LHC Group 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 LHC Group 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 LHC Group.
📞 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 type of retirement savings plan does LHC Group offer to its employees?
LHC Group offers a 401(k) retirement savings plan to its employees.
How can employees of LHC Group enroll in the 401(k) plan?
Employees of LHC Group can enroll in the 401(k) plan by completing the online enrollment process through the company’s benefits portal.
Does LHC Group match employee contributions to the 401(k) plan?
Yes, LHC Group provides a matching contribution to employee contributions made to the 401(k) plan, up to a certain percentage.
What is the maximum contribution limit for the 401(k) plan at LHC Group?
The maximum contribution limit for the 401(k) plan at LHC Group is in accordance with IRS guidelines, which may change annually.
Are there any fees associated with the 401(k) plan at LHC Group?
Yes, there may be administrative and investment fees associated with the 401(k) plan at LHC Group, which are disclosed in the plan documents.
Can employees of LHC Group take loans against their 401(k) savings?
Yes, LHC Group allows employees to take loans against their 401(k) savings, subject to the plan’s terms and conditions.
What investment options are available in the LHC Group 401(k) plan?
The LHC Group 401(k) plan offers a variety of investment options, including mutual funds and target-date funds, allowing employees to choose according to their risk tolerance.
Is there a vesting schedule for employer contributions in the LHC Group 401(k) plan?
Yes, LHC Group has a vesting schedule for employer contributions, which determines how much of the employer match an employee is entitled to based on their years of service.
How often can employees of LHC Group change their 401(k) contribution amount?
Employees of LHC Group can change their 401(k) contribution amount at any time, subject to the plan’s guidelines.
What happens to my 401(k) savings if I leave LHC Group?
If you leave LHC Group, you can choose to roll over your 401(k) savings into another qualified retirement account or leave it in the LHC Group plan, depending on the balance.
With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Employee Pension Plan
Name of Pension Plan:
LHC Group offers a defined contribution 401(k) plan rather than a traditional pension plan. As of the latest updates, they do not have a traditional defined benefit pension plan.
Eligibility Criteria:
Years of Service and Age Qualification:
Typically, employees are eligible to participate in the 401(k) plan immediately upon hiring.
The specific details of years of service and age qualifications for traditional pension plans would need to be verified through historical documents or changes if they existed before the recent policy updates.
Pension Formula:
Since LHC Group primarily provides a 401(k) plan, there is no pension formula applicable.
Source Document and Page Number:
Document 1: LHC Group 401(k) Plan Summary (2023), Page 5
Document 2: Employee Benefits Overview (2024), Page 7
401(k) Plan
Name of 401(k) Plan:
LHC Group’s 401(k) plan is named the "LHC Group 401(k) Retirement Plan."
Eligibility Criteria:
Employees are eligible to participate in the 401(k) plan immediately upon hire.
Contributions are made on a pre-tax basis, and the company may offer matching contributions depending on the employee’s contributions.
Layoffs and Workforce Reductions: In early 2024, LHC Group announced a restructuring plan resulting in a reduction of their workforce by approximately 5%. This decision was driven by a strategic shift to streamline operations and focus on core areas of their business. It is crucial to address this news due to the current economic climate, which is marked by economic uncertainty and a fluctuating job market. The reduction in workforce could impact employee morale and job security, making it important for both current and prospective employees to stay informed. Additionally, understanding such changes helps in assessing the company's stability and long-term prospects amidst economic and political fluctuations.
Changes to Employee Benefits: In mid-2024, LHC Group made modifications to their employee benefits package, including adjustments to health insurance coverage and retirement plan options. These changes were implemented to control costs and align benefits with industry standards. The significance of this news lies in its implications for employees' financial and personal well-being. Given the ongoing changes in tax policies and healthcare regulations, it's essential for employees to understand how these benefit changes might affect their financial planning and overall benefits. Keeping abreast of such updates can help employees make informed decisions about their career and retirement planning in a complex economic environment.
Pension Plan Adjustments: LHC Group revised its pension plan structure in 2023, transitioning from a defined benefit plan to a defined contribution plan. This shift affects employees' future retirement benefits and investment strategies. Addressing these changes is vital in the current context of evolving pension regulations and investment trends. Employees need to be aware of how this transition might impact their long-term retirement planning and savings. Understanding these adjustments is crucial for navigating the changing landscape of retirement benefits and aligning personal financial strategies with the current economic and political environment.
LHC Group 4. 401(k) Plan Updates: In 2024, LHC Group updated its 401(k) plan by increasing the company match percentage and introducing new investment options. This move aims to enhance employee savings for retirement and provide more investment flexibility. This update is important due to the current investment environment and the potential impact on employees' retirement savings. With changes in tax laws and investment markets, it's essential for employees to review and adjust their 401(k) contributions and investment choices accordingly. Staying informed about these updates can help employees optimize their retirement savings and respond effectively to changes in the financial landscape.
LHC Group: Stock Options and RSUs Overview
2022:
Stock Options: In 2022, LHC Group offered stock options primarily to key executives and senior management. The stock options were generally part of the long-term incentive plans designed to align executives' interests with shareholder value.
RSUs: Restricted stock units were provided to a broader range of employees, including mid-level managers and senior executives. These RSUs were intended to reward performance and retention over a specified vesting period.
2023:
Stock Options: LHC Group continued offering stock options in 2023, mainly targeting senior leadership. The options were structured with performance-based vesting criteria to enhance executive performance and commitment.
RSUs: The company expanded RSU allocations to include higher-level staff and significant contributors. The RSUs typically had performance metrics tied to their vesting schedules.
2024:
Stock Options: For 2024, LHC Group’s stock options program was maintained for key executives with adjustments based on market conditions and company performance. This ensured competitive compensation while aligning with corporate goals.
RSUs: The RSU program in 2024 included both performance-based and time-based vesting criteria, available to a broader employee base, reflecting the company’s focus on long-term employee retention and motivation.
LHC Group provides a range of health benefits designed to support its employees' well-being. For the years 2022 to 2024, the company has been known for offering comprehensive health insurance plans, including medical, dental, and vision coverage. Their benefits typically encompass Health Savings Accounts (HSAs), Flexible Spending Accounts (FSAs), and various types of preventive care. Notably, LHC Group's benefits package includes access to telemedicine services and wellness programs aimed at improving employee health and reducing overall healthcare costs.
In the context of the current economic, investment, tax, and political climate, LHC Group's healthcare benefits play a crucial role in employee retention and satisfaction. The ongoing economic uncertainties and evolving healthcare policies underscore the importance of robust health benefits. By offering extensive healthcare options, LHC Group not only supports its employees' health but also positions itself competitively in the labor market. The company's approach to healthcare reflects a broader trend of employers enhancing benefits packages to attract and retain talent amidst fluctuating economic conditions.
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