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

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Advance Auto Parts Retirees Face Rising Health Care Costs: What You Need to Know

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Healthcare Provider Update: Healthcare Provider for Advance Auto Parts: Advance Auto Parts offers healthcare benefits through a range of insurance carriers; specific providers may vary by location and plan. Generally, large employers like Advance Auto Parts collaborate with major insurers such as UnitedHealthcare, Anthem (Elevance Health), and others to provide health insurance options to their employees. It's advisable for employees to check specific plan details through their benefits resources for precise provider information. Potential Healthcare Cost Increases in 2026: As Advance Auto Parts prepares for 2026, employees could face significant increases in healthcare costs, driven by a dramatic rise in Affordable Care Act (ACA) premiums. Projections indicate that many states could see hikes exceeding 60%, primarily due to the expiration of enhanced federal premium subsidies and rising medical costs influenced by inflation. Notably, 51% of large employers, including Advance Auto Parts, may implement higher deductibles and out-of-pocket expenses to mitigate these costs, potentially shifting more financial burdens onto employees and complicating access to affordable coverage. Understanding these dynamics will be crucial for employees to effectively manage their healthcare expenses. Click here to learn more

'With rising premiums, shifting federal programs, and mounting medical debt, Advance Auto Parts employees must take a more deliberate approach to budgeting for health care in retirement to help avoid financial pitfalls that could derail long-term plans.' – Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement.

'As health care policy continues to evolve, Advance Auto Parts employees should regularly revisit their retirement strategies to account for potential coverage gaps and unexpected medical expenses that could strain fixed budgets.' – Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article we will discuss:

  1. How rising health care premiums and shrinking federal support may affect pre-Medicare retirees.

  2. The impact of medical debt, weakened consumer protections, and changing credit rules on retirement outcomes.

  3. Adjustments to Medicaid and government health care programs that could disrupt early retirement plans.

Health Care Costs Continue to Climb for Retirees

The following article has been revised to reflect recent changes in health care policy and economics for individuals with longstanding corporate careers. Advance Auto Parts retirees and employees preparing for retirement are experiencing higher medical expenses, tighter household budgets, and new health care regulations—an especially relevant concern for those managing fixed incomes or long-term savings goals.

Premiums Rising, Coverage Shrinking

One key factor driving up costs is the anticipated end of Affordable Care Act (ACA) premium subsidies. If these subsidies expire, annual out-of-pocket premiums could increase by an average of $1,247—a 75% jump. 1  This would affect Advance Auto Parts retirees relying on ACA plans prior to Medicare eligibility. Additionally, the One Big Beautiful Bill Act (OBBBA), passed in July 2025, calls for nearly $1 trillion in cuts to federal health care spending, with Medicaid bearing the brunt over the next ten years. 2

These reductions could result in up to 10.9 million Americans losing health care coverage by 2034, according to the Congressional Budget Office (CBO). 3

Eroding Consumer Protections

Policy changes are also exposing Advance Auto Parts retirees to greater financial stress. A federal ruling overturned a consumer-friendly rule that prevented medical debts over $500 from appearing on credit reports. 4  As a result, credit scores for millions could be affected—an issue that carries implications for mortgages, employment applications, and other financial decisions during retirement transitions.

The Weight of Medical Debt

Across the country, medical debt remains a persistent challenge: 5

  • - 40% of adults report having dental or medical debt.

  • - 1 in 6 borrowed money or used credit cards to pay off medical bills.

  • - Over 20 million owe $250 or more; 14 million owe over $1,000; and 3 million owe more than $10,000.

  • - Adults aged 50–64 carry more debt than those 65–79 due to delayed Medicare access.

These statistics underscore the pressure on Advance Auto Parts employees who retire before reaching Medicare eligibility.

Health Decisions at Risk

According to Tyson Mavar, a financial advisor with Wealth Enhancement, 'Credit scores may not be affected for those who hold medical debt, potentially resulting in delayed treatment.' This concern is amplified for Advance Auto Parts retirees who may have limited health care coverage and rising expenses.

While some households cope with medical debt by cutting back on food and housing, depleting savings, or borrowing more, these approaches only serve to contribute to poorer health and higher stress.

Government Program Adjustments

Medicaid changes under OBBBA bring added burdens, particularly for early retirees in rural areas. Adjustments include stricter eligibility verification, new work requirements, and increased co-pays of up to $35 per visit for those near the poverty line. These revisions may impact millions of rural Americans and bring added stress to rural health care facilities that are already stretched thin.

A $50 billion Rural Hospital Transformation Fund was announced, but it is expected to address just 37% of anticipated losses and is set to expire by 2032. 6

Why It Matters for Advance Auto Parts Families

Recent health care changes are reshaping retirement planning. Even though Advance Auto Parts offers a range of employee benefits and retirement options, not all workers transition into Medicare or employer-based retiree coverage without gaps. According to Fidelity, a 65-year-old individual retiring in 2025 may need to spend $172,500 health care throughout retirement—not including long-term care. 7

Future policy shifts could add thousands more to that estimate. Keeping an eye on health care policy and evaluating benefit elections are now essential components of retirement planning.

The Bottom Line

Navigating today’s health care system is like taking a road trip with higher tolls, fewer exits, and less reliable maps. Advance Auto Parts employees near or in retirement are encountering a shifting landscape of costs, coverage, and legal rules. If these developments are overlooked, retirement plans may be exposed to financial disruptions that are difficult to recover from.

Being proactive with coverage reviews, medical budgeting, and credit management can help retirees steer clear of costly missteps and adapt to an increasingly complex health care environment.

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Sources:

1. Business Insider. “ Millions of Americans could pay up to $1,247 more for Affordable Care Act health insurance next year ,' by Juliana Kaplan, 23 July 2025.

2. The Guardian. “ Democrats Use New Tactic to Highlight Trump’s Gutting of Medicaid ,” by Stephanie Kirchgaessner, 27 July 2025.

3. USA Today. ' Neary 11 million Americians would lose insurance under Trump's tax bill, analysis says ,' by Ken Alltucker, 4 June 2025. 

4. Medicare Rights Center. ' Federal Court Reverses Federal Medical Debt Protections ,' by Julie Carter, 31 July 2025. 

5. Peterson-KFF, Health System Tracker. ' The burden of medical debt in the United States ,' by S. Rakshit, M. Rae, G. Claxton, K. Amin, and C. Cox, 12 Feb. 2024. 

6. KFF. ' A Closer Look at the $50 Billion Rural Health Fund in the New Reconciliation Law ,' by Zachary Levinson and Tricia Neuman, 4 Aug. 2025. 

7. Fidelity. ' How to plan for rising health care costs ,' Fidelity Viewpoints, 12 Aug. 2024. 

What type of retirement savings plan does Advance Auto Parts offer?

Advance Auto Parts offers a 401(k) retirement savings plan to help employees save for their future.

Can employees at Advance Auto Parts contribute to their 401(k) plan?

Yes, employees at Advance Auto Parts can contribute a portion of their salary to the 401(k) plan.

What is the maximum contribution limit for the Advance Auto Parts 401(k) plan?

The maximum contribution limit for the Advance Auto Parts 401(k) plan is determined by the IRS guidelines, which can change annually.

Does Advance Auto Parts offer any company matching contributions to the 401(k) plan?

Yes, Advance Auto Parts offers a company matching contribution to encourage employees to save for retirement.

When can employees at Advance Auto Parts enroll in the 401(k) plan?

Employees at Advance Auto Parts can typically enroll in the 401(k) plan during their initial eligibility period or during open enrollment periods.

What investment options are available in the Advance Auto Parts 401(k) plan?

The Advance Auto Parts 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

Is there a vesting schedule for company contributions in the Advance Auto Parts 401(k) plan?

Yes, Advance Auto Parts has a vesting schedule that determines when employees fully own the company contributions made to their 401(k) accounts.

Can employees take loans against their 401(k) savings at Advance Auto Parts?

Yes, employees at Advance Auto Parts may have the option to take loans against their 401(k) savings, subject to the plan's terms.

What happens to my 401(k) savings if I leave Advance Auto Parts?

If you leave Advance Auto Parts, you can roll over your 401(k) savings into another retirement account or leave it in the Advance Auto Parts plan, depending on the plan's provisions.

How can I access my 401(k) account information at Advance Auto Parts?

Employees can access their 401(k) account information through the plan's online portal or by contacting the plan administrator.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Advance Auto Parts announced it would lay off approximately 400 employees as part of a $150 million cost reduction plan. This restructuring includes selling two business units and eliminating several executive positions to streamline operations​ (WRAL TechWire)​​ (WRAL TechWire)​.
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For more information you can reach the plan administrator for Advance Auto Parts at 2635 East Millbrook Road Raleigh, CA 27604; or by calling them at (919) 227-5466.

*Please see disclaimer for more information

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