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

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Rising Healthcare Costs: What DCP Midstream Employees Need to Know About Managing Financial Strain in Retirement

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Healthcare Provider Update: DCP Midstream Healthcare Provider Information DCP Midstream, a prominent company in the energy sector, typically provides its employees with access to comprehensive healthcare services. They collaborate with various insurance carriers to offer health plans that often include options for medical, dental, and vision coverage, tailored to the needs of their workforce. Anticipated Healthcare Cost Increases for DCP Midstream in 2026 In 2026, DCP Midstream employees may face notable increases in healthcare costs, driven primarily by anticipated premium hikes within the Affordable Care Act (ACA) marketplaces. Projections indicate that some states could experience premium increases exceeding 60%, with a national average expected to rise by around 18%. The expiration of enhanced federal subsidies could severely impact affordability, leading to an estimated 75% increase in out-of-pocket premium costs for many employees. With significant pressures from rising medical expenses and higher insurer rates, DCP Midstream's workforce should prepare for potentially impactful changes to their healthcare expenditures next year. Click here to learn more

As Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement Group, points out, 'It is crucial for all employees, especially those in the DCP Midstream sector, to proactively plan their finances to avoid the unexpected costs of health crises.

According to Michael Corgiat of The Retirement Group, a division of Wealth Enhancement Group, 'It is important for DCP Midstream employees to understand the bigger economic implications of health issues as reported in this article to have robust financial plans to manage the risks of healthcare adverse events.

In this article, we will discuss:

1. The Economic Impact of Cancer: Examining the direct and indirect financial challenges faced by patients, including increased medical costs and loss of income.

2. Personal Stories of Financial Struggle: Highlighting individual cases, such as Gwendolyn Jackson, to illustrate the broader financial implications of a cancer diagnosis.

3. Solutions and Support Systems: Exploring available resources and potential strategies to alleviate the financial burdens on patients and their families.

When one is diagnosed with cancer, it is not only a life-threatening disease that affects the patient’s health but also their finances.  Many patients are faced with the financial challenges of higher out-of-pocket costs, reduced income and higher cost of drugs. This article looks at the huge financial impact that cancer has on Americans and DCP Midstream employees, using cases, numbers and the overall trend of this new epidemic.

The Story of Gwendolyn Jackson and the Personal Toll of Cancer Gwendolyn Jackson had no problems paying her bills before being diagnosed with cervical cancer. She owned her house, had insurance and had a job. But when she was 53 years old, her life changed drastically when she was told she had cervical cancer.  Jackson lost her work as a housing coordinator due to the physical toll of chemotherapy and a subsequent stroke, and she is already facing tens of thousands of dollars in medical debt.

Her vehicle was repossessed, and she received an eviction notice.  Jackson recalls, 'I woke up one morning, and I was a top case manager. Then I was losing everything.' Increasing Prices and Economic Difficulties Cancer is becoming an increasingly expensive disease in the United States due to the rising prices of drugs and medical care.  Iqvia’s Institute for Human Data Science predicts that 55% of cancer medications launched between 2019 and 2023 will cost more than $200,000 a year.

Those of working age, like those at DCP Midstream, have several difficulties and are more likely to report financial hardship after diagnosis.  Sixty percent of cancer survivors of working age have money problems, according to the study. Many struggle to pay for medical care, and this often results in debt accumulation — payday loans, credit card debt, and so on. About 40 percent of medical GoFundMe campaigns are for cancer.  Radiation oncologist Dr. Reshma Jagsi of Emory University School of Medicine and the Winship Cancer Institute says, “We do not want to believe that people with cancer in this country have to cut back on medications, doctor visits, lose their home, or cut back on food.” The Financial Toxicity Concept Financial toxicity is the term used to describe the financial burden of cancer and its treatment.  It is not just the cost of treatment and the expensive drugs but there are many other costs as well.

Patients who receive chemotherapy and other treatments may not have enough energy to work, thus, losing their employer-sponsored health insurance and income.  The financial consequences may last for many years. It is always a shock. As DCP Midstream Employees planning for these unexpected expenses is crucial. Dr. Fumiko Chino, a radiation oncologist at Memorial Sloan Kettering Cancer Center adds, “It can cause this wealth shock that can ripple on.” Her husband died of cancer more than 10 years ago and she still gets phone calls from debt collectors about his debts.  She faced the financial burden personally.

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The Growing Price of Anticancer Drugs The chief problem facing DCP Midstream employees is the rising cost of healthcare and cancer medications. These costs are either rising at the rate of inflation or have very high initial prices.  The prices of common cancer medications can be as high as six digits. For example, Medicare beneficiaries will have to pay $5,247 out-of-pocket for the leukemia therapy Imbruvica in 2022, which is more than $213,000 per year. Tagrisso lung cancer medication is approximately $208,000 per year.

Some employer-based plans have patients pay a portion of the drug costs, shifting the burden of rising healthcare costs to patients. Cancer patients of working age with private insurance had out-of-pocket expenses rise 15% between 2009 and 2016. Many patients have to pay for parking, hotel, child care, and transportation, among other costs.  The Broader Effect on Earnings Besides the cost of treatment, cancer has a major negative impact on the financial well-being of the affected individuals. It is still a serious matter that makes many have to leave their workplaces or even quit their jobs altogether.  Chemotherapy patients are four times more likely to quit than patients who do not receive the treatment within the first four years.

This burden usually affects families as a whole since relatives may have to take care of the patient or financially support the family.  The hardship faced by Erica Olenski is illustrative. Olenski’s young son August was diagnosed with brain cancer in 2019. She cut back drastically on her working hours, spending time traveling back and forth between McKinney, Texas, and Dallas for August’s treatments, which entailed weekly hospital stays.

The family’s income was lowered even though Medicaid paid for the medical expenses. “It was the transport, gas, tolls, food at the hospital because you can’t buy groceries like you would at home,” says Olenski. “There’s a pragmatic reality of living that lifestyle that carries an enormous cost.” Financial Repercussions and Insolvency Financial strain may have serious implications for DCP Midstream employees and may include bankruptcy.  Olenski had to liquidate most of her 401(k) to pay off the debts. She later got divorced and lost $20,000 during the divorce process. In 2023, August’s illness returned, and she had to use her credit cards to pay for things like car and mortgage.  She finally filed for bankruptcy, and was over $100,000 in debt.

Cancer’s Wider Financial Effects Dr. Scott Ramsey, the director of the Hutchinson Institute for Cancer Outcomes Research at Fred Hutchinson Cancer Center, and his team found that cancer patients have more credit card late payments, mortgage defaults, and other financial issues than non-cancer patients.  According to Ramsey, patients who incur more out-of-pocket expenses are more likely to delay starting their prescriptions or stop taking them altogether.

According to his research, cancer patients who file for bankruptcy have an 80 percent higher chance of dying than those who do not.  “It was actually kind of bad for the survival,” he said. Gwendolyn Jackson’s Persistent Battle When Jackson’s father was diagnosed with lung cancer 10 years ago, she saw for herself how cancer affects people’s finances. Inspired by families who had to sell their jewelry and savings to pay for treatment, she started a charity organization to help cancer patients and their families.  She is currently in a comparable situation. Her diagnosis has greatly impacted Jackson’s life. She has gone from a social person who used to jog daily to a person with a very busy schedule of doctor’s appointments.

Her 83-year-old mother had to pay $800 a month for her health insurance until it became unaffordable after she quit her job in 2022.  Jackson then chose a less expensive insurance plan, but the costs for tests, chemotherapy, and physical therapy kept on rising. While waiting for long-term disability, she used her credit cards and received money from friends and relatives. She moved in with her daughter and shared a room with her grandson after losing her house and car.  “It broke me,” Jackson claims. Looking for Guidance and Assistance Despite substantial holes in the safety net, campaigners and doctors are looking for patchwork solutions to the increasing problems.

More cancer facilities are now able to help patients who have financial problems and other needs like food and transportation.  The problem is that there is not much funding and not many people are aware of these options. Only a few patients who turn to crowdfunding platforms like GoFundMe can raise the needed amount through the platform. Cancer Care Kansas had not considered Jackson for aid because she earned too much money.

She was able to avoid using cash from her nonprofit because she had to. She could not manage the demands and her efforts to work remotely were in vain. Jackson is now on disability, so she helps pay for groceries, gas, utilities, and prescription drugs.  She has just been informed that she would be eligible for Medicare in a few months’ time, but this will leave her with around $38,000 of medical debt that she has no way of paying after monthly expenses are covered.

Jackson’s cancer has not responded to chemotherapy, so she is still undergoing treatment through a clinical trial. Despite the fact that she has less than 18 months to live, debt collectors are still after her for the medical bills. “They’ll give you calls and letters,” she continues.  “But I can’t pay for what I don’t have.” In Summary Cancer impacts the lives of American households in a real and significant way. The costs of prescription drugs, the out-of-pocket costs, and the lower incomes are a financial burden that many patients and their families cannot bear.

The stories of people like Gwendolyn Jackson and Erica Olenski show that there is a need for better financial support and ways to help people cope with the economic impact of cancer. This is becoming more important as the cost of cancer treatment rises, so patients can focus on their health without worrying about the financial impact.  It is important for DCP Midstream employees to always be prepared for any unexpected medical expenses.

Medicare enrollees paid $5,460 on average out-of-pocket for healthcare in 2021, according to a recent Kaiser Family Foundation report released in May 2023. Healthcare costs were substantially higher for people with serious diseases like cancer.  Such costs can strip retirement funds quickly, and it is crucial to understand and prepare for healthcare expenses in later years. Older retirees may struggle with financial issues that threaten their financial well-being and quality of life as healthcare costs rise (KFF, 2023).  Disclosure: This information is not intended as recommendation. The opinions are subject to change at any time and no forecasts can be guaranteed.  Investing involves risk, including possible loss of principal.

Sources:

1. 'Financial Hardship.' American Cancer Society. www.cancer.org. The following is a reference from the American Cancer Society on financial difficulties encountered by cancer patients and the need for support and resources.

2. 'The Economic Burden of Cancer.' The Cancer Atlas. canceratlas.cancer.org. This article presents the costs of cancer in the US and EU and shows that the costs are high.

3. 'The Financial Impact of Cancer: How to Manage the Costs.' Cancer Survivors Network.  csn.cancer.org. This narrative focuses on financial assistance and community resources for cancer patients with a focus on long-term financial planning.

4. 'CRFT Brings Distress, Bankruptcy, and Mortality.' Family Reach. www.familyreach.org. This article explores the financial devastation that cancer can cause and the consequences of heightened chances of bankruptcy and death.

5. 'Legal & Financial Impacts of Cancer.' MD Anderson Cancer Center. www.mdanderson.org. This source provides information on the legal and financial challenges of cancer patients, including information on managing health insurance and healthcare costs.

What is the primary purpose of DCP Midstream's 401(k) Savings Plan?

The primary purpose of DCP Midstream's 401(k) Savings Plan is to help employees save for retirement by allowing them to contribute a portion of their salary on a tax-deferred basis.

How can employees enroll in DCP Midstream's 401(k) Savings Plan?

Employees can enroll in DCP Midstream's 401(k) Savings Plan through the company's benefits portal during the open enrollment period or within 30 days of their hire date.

What types of contributions can employees make to DCP Midstream's 401(k) Savings Plan?

Employees can make pre-tax contributions, Roth (after-tax) contributions, and, in some cases, catch-up contributions if they are age 50 or older to DCP Midstream's 401(k) Savings Plan.

Does DCP Midstream offer a matching contribution for the 401(k) Savings Plan?

Yes, DCP Midstream offers a matching contribution to the 401(k) Savings Plan, which helps employees maximize their retirement savings.

What is the vesting schedule for DCP Midstream's matching contributions?

The vesting schedule for DCP Midstream's matching contributions typically follows a graded vesting schedule, where employees become fully vested after a certain number of years of service.

Can employees take loans from their 401(k) Savings Plan at DCP Midstream?

Yes, DCP Midstream allows employees to take loans from their 401(k) Savings Plan, subject to specific terms and conditions outlined in the plan documents.

What investment options are available in DCP Midstream's 401(k) Savings Plan?

DCP Midstream's 401(k) Savings Plan offers a variety of investment options, including mutual funds, target-date funds, and company stock, allowing employees to diversify their portfolios.

How often can employees change their contributions to DCP Midstream's 401(k) Savings Plan?

Employees can change their contributions to DCP Midstream's 401(k) Savings Plan at any time throughout the year, subject to payroll processing timelines.

What is the minimum contribution percentage for DCP Midstream's 401(k) Savings Plan?

DCP Midstream typically requires a minimum contribution percentage, which is outlined in the plan documents, but employees are encouraged to contribute more if possible.

Are there any fees associated with DCP Midstream's 401(k) Savings Plan?

Yes, there may be fees associated with managing DCP Midstream's 401(k) Savings Plan, which are disclosed in the plan's fee disclosure statement.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
DCP Midstream offers comprehensive retirement benefits, including both a 401(k) plan and a pension plan, to its employees for the years 2022, 2023, and 2024. The company's 401(k) plan includes catch-up contributions for employees aged 50 and above, allowing them to contribute an additional $6,500 on top of the regular annual limit, which is $22,500 for 2023. This feature helps employees nearing retirement to bolster their savings​ (Home Page)​ (Benefits Law Advisor). DCP Midstream's pension plan, on the other hand, is based on a formula that typically factors in years of service and final average salary, although specific details about the plan's structure, such as the exact percentage per year of service, were not explicitly provided. The company's pension plan is often referred to in conjunction with its overall deferred compensation strategy​ (Home Page)​ (Benefits Law Advisor). Years of service and age qualifications for both the 401(k) and pension plan are structured to incentivize long-term commitment. For instance, the pension benefits generally become more significant as an employee's years of service increase, although exact thresholds are specified in internal corporate documents
In early 2024, DCP Midstream announced a major restructuring plan including a workforce reduction of about 10% and a review of benefit programs and 401k plans.
DCP Midstream offers stock options and Restricted Stock Units (RSUs) to eligible employees as part of their compensation package. In 2022, DCP Midstream provided stock options with vesting schedules based on performance metrics and tenure. For 2023, the company expanded its RSU program, granting units based on individual performance and company milestones.
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For more information you can reach the plan administrator for DCP Midstream at 370 17th St Denver, CO 80202; or by calling them at (303) 605-1700.

https://www.thelayoff.com/ https://www.marketwatch.com/ https://finance.yahoo.com/ https://www.phillips66.com/midstream/dcp/

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