New Update: Rising Oil Costs are Affecting Retirement Plans. Will you be impacted?
Largest Increase Ever From Top Insurers. Will FirstEnergy Employees Be Affected?
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Energy market instability persists, with crude prices fluctuating between $50 and $120 per barrel and annualized volatility running around 80%. The effects reach well beyond the energy sector. Fleet diesel costs and inflation-driven rate case pressures create indirect but meaningful exposure to sustained crude price swings. For FirstEnergy employees focused on long-term financial health, periods of oil-driven economic volatility reinforce the value of diversified strategies that account for how energy markets influence the broader investment landscape. Working with a financial advisor can help you position your planning strategy for sustained energy price uncertainty.
'With ACA premiums expected to rise in 2026, FirstEnergy employees should compare marketplace and employer-related options early, model net costs with and without current subsidies, and coordinate with HR and a qualified tax professional for decisions suited to their situation.' — Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement.
'With ACA marketplace premiums expected to climb in 2026, FirstEnergy employees should compare employer and marketplace options early, estimate net costs under both current and lapsed subsidy scenarios, and coordinate with HR and a qualified tax professional to align coverage with their budget.' — Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement.
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In this article we will discuss:
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The expected premium increases for ACA marketplace plans in 2026 and their potential impact on FirstEnergy employees and retirees.
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The major national insurers and states with the largest requested rate hikes.
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The primary economic, legislative, and industry factors driving these increases.
In 2026, health insurance rates for plans purchased through the Affordable Care Act (ACA) marketplace are expected to surge, with several insurers requesting increases exceeding 60%. 1 For FirstEnergy employees and retirees using ACA coverage, this could mean a substantial rise in health care costs. State insurance filings and industry publications point to higher medical expenses, the potential end of enhanced federal premium subsidies, and significant rate-hike proposals from major insurers as key drivers of the increase.
According to KFF’s analyses, the vast majority of marketplace enrollees receive premium tax credits, and if the enhanced credits expire after 2026, average out-of-pocket premium payments for subsidized enrollees could rise by more than 75% in 2026. 1 As of January 2026, 24.2 million people selected 2026 marketplace coverage, 2 and about 93% of marketplace enrollees rely on premium tax credits. 3 KFF also reports that requested premium increases for 2026 are the largest in years, with most proposals falling between roughly 12% and 27% and a median of 18% across reviewed filings. 4
Top 10 States With the Largest Requested Premium Increases for 2026:
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New York: UnitedHealthcare requesting up to +66.4% (individual market).
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Arkansas: QualChoice +54.4% , Ambetter (Celtic) +42.5% , statewide average +36.1% .
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Colorado: Western Slope ~+38.8% ; statewide average +28.4% . Rocky Mountain HMO +36.4% , Cigna +29.4% , Anthem +33.6% , Kaiser +15.3% .
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Florida: Molina ~+41% , Florida Blue +27% , Centene Venture +18.73%
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Maine: Anthem (revised) +24.8% ; statewide weighted average +25.9% .
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Washington: 14 insurers; requested average +21.2% .
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Vermont: BCBS Vermont +23.3% .
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Maryland: Requested statewide average +17.1% (individual market).
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Illinois: BCBS Illinois +27% .
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Texas: BCBS Texas +21% .
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Major National Insurers and Their 2026 Requests:
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UnitedHealthcare (UnitedHealth Group): Up to +66.4% in New York.
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Elevance Health (Anthem BCBS): +33.6% in Colorado; +24.8% in Maine.
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Kaiser Permanente: +15.3% in Colorado (individual market).
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Centene Corporation (Ambetter/Celtic): +42.5% in Arkansas; +18.73% in Florida.
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Cigna Healthcare: +29.4% in Colorado.
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Molina Healthcare: ~41% in Florida.
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HCSC (BCBS IL, TX): +27% in Illinois; +21% in Texas.
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GuideWell (Florida Blue): +27% in Florida.
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CareFirst BlueCross BlueShield: Maryland requested statewide average +17.1% .
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CVS Health/Aetna: Withdrawing ACA marketplace plans in 17 states in 2026, affecting ~1 million members.
Key Factors Driving the Increases:
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Loss of Enhanced Premium Subsidies: The American Rescue Plan and Inflation Reduction Act extended ACA subsidies through 2026. Without renewal, subsidized enrollees could see sharp increases in monthly premiums beginning in 2026 (KFF estimates more than a 75% jump in average out-of-pocket premiums for subsidized enrollees if the enhancements lapse). 1
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Medical Cost Inflation: Leading consultancies report elevated medical cost trends heading into 2026—about 7.5% in the individual market and 8.5% in the group market 5 —driven by hospital/physician services and prescription drugs.
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Regulatory Shifts: Market rules and state laws have influenced filings. For example, analysts note federal policy changes (e.g., the Marketplace Integrity rule) as a factor cited in filings, adding operational uncertainty for vertically integrated insurers/PBMs.
Dividing retirement assets in a QDRO proceeding requires a clear understanding of what FirstEnergy offers through its benefit programs. A central element of your benefits is that FirstEnergy maintains an active defined benefit pension plan, meaning eligible employees continue to accrue benefits based on years of service and compensation. If you are eligible for a lump sum payout, IRS Section 417(e) segment rates determine how the future annuity stream converts to a present-value payment - rising rates compress the lump sum, so monitoring the plan's stability period and lookback month is critical before you lock in your election date. The choice between a single-life annuity, a joint-and-survivor option, or a lump sum (where available) is generally irrevocable once made, and timing that decision relative to interest rate conditions can meaningfully affect your retirement income picture.
When it comes to medical benefits, FirstEnergy does not offer continued medical coverage to retirees, which means coverage through the company ends when employment does. Planning for the cost of health insurance during any gap between your retirement date and Medicare eligibility at age 65 is a critical step - marketplace coverage, COBRA continuation, or a spouse's employer plan are common options. Building an accurate estimate of bridge-coverage costs into your retirement income projection prevents underestimating one of the largest variable expenses retirees face. When you map out your FirstEnergy benefits alongside your broader retirement strategy, the overall picture becomes much clearer.
Sources:
1. KFF, Health System Tracker. ' How much and why ACA Marketplace premiums are going up in 2026 ,' by J. Ortaliza, M. McGough, K. Vu, I. Telesford, S. Rakshit, E. Wager, L. Cotter, C. Cox. 6 Aug. 2026.
2. CMS.gov. ' Over 24 Million Consumers Selected Affordable Health Coverage in ACA Marketplace for 2026 .' 17 Jan. 2026.
3. The Commonwealth Fund. ' Proposed Rule Will Make Consumers Pay More for Health Insurance and Care in ACA Marketplaces ,' by Sara Collins. 7 May 2026.
4. Fierce Healthcare. ' KFF Analysis finds a median ACA premium hike of 18% for 2026 ,' by Paige Minemyer. 8 Aug. 2026.
5. PwC Health Research Institute. Medical Cost Trend: Behind the Numbers 2026 . PwC , 16 July 2026, https://www.pwc.com/us/en/industries/health-industries/library/behind-the-numbers.html .
Other reources:
1. New York State Department of Financial Services. “Summary of 2026 Requested Rate Actions.” DFS Portal , 2 June 2026, https://myportal.dfs.ny.gov/web/prior-approval/ind-and-sg-medical/summary-of-2026-requested-rate-actions .
2. Centers for Medicare & Medicaid Services (CMS). Patient Protection and Affordable Care Act; Marketplace Integrity and Affordability (Final Rule). 18 June 2026, PDF, https://www.cms.gov/files/document/cms-9884-f-2026-pi-rule-master-5cr-062025.pdf .
3. Minemyer, Paige. “Aetna to Exit the ACA Exchanges in 2026.”
Fierce Healthcare
, 1 May 2026,
https://www.fiercehealthcare.com/payers/aetna-exit-aca-exchanges-2026
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Pages/Sections referenced:
Article body noting ~1 million exchange members and the 2026 exit (single web page; n. pag.).
How does FirstEnergy ensure that employees understand their pension payment options after retirement, and what resources does FirstEnergy provide to help them navigate these options effectively? Discuss the various types of pension plans available and how they cater to different employee needs at FirstEnergy.
Pension Payment Options: FirstEnergy ensures that employees understand their pension payment options by providing an online pension pay statement system, which allows them to view their payments and tax information. This online platform also offers access to various pension plans like qualified and non-qualified pensions, catering to different employee needs, such as federal and state tax withholding options for qualified pensions(FirstEnergy_Online_Pens…).
What are the steps that FirstEnergy employees must follow when changing their direct deposit information for pension benefits, and how does FirstEnergy facilitate this process? Explore the importance of keeping direct deposit information updated, especially for retired employees who rely on timely monthly payments.
Direct Deposit Changes: To update direct deposit information for pension benefits, FirstEnergy employees need to complete Form X-901, available on their website. FirstEnergy simplifies the process by providing clear steps on how to obtain and submit the form, ensuring that retirees receive their monthly payments without interruption(FirstEnergy_Online_Pens…).
In what ways does FirstEnergy support employees in understanding the tax implications associated with their pension plans, and what specific IRS forms should they be aware of? Discuss how FirstEnergy employees can proactively manage their tax withholding choices and the potential consequences of inadequate planning.
Tax Implications: FirstEnergy helps employees manage tax implications of their pension plans by directing them to the correct IRS forms, such as Form W-4P for federal taxes. They also provide assistance through their online platform to help employees adjust their tax withholding to avoid potential underpayment issues(FirstEnergy_Online_Pens…).
FirstEnergy has a unique approach to online pension statements. How does this change from traditional paper statements impact the way employees access and manage their pension information? Evaluate the benefits and possible challenges faced by employees in transitioning to this digital format.
Online Pension Statements: FirstEnergy’s transition to online pension statements, effective March 2020, eliminates mailed statements. This change enables employees to conveniently access their pension details through any web browser, although some may find it challenging to switch from paper to digital(FirstEnergy_Online_Pens…).
What procedures should FirstEnergy employees follow if they encounter discrepancies in their pension payment amounts, and how does the company assist them in resolving these issues? Examine the importance of clear communication channels between employees and FirstEnergy’s HR service center for addressing payment concerns.
Resolving Payment Discrepancies: If there is a discrepancy in a pension payment, FirstEnergy advises employees to contact their HR Service Center for resolution. Clear communication channels, such as dedicated phone numbers, are provided to facilitate prompt handling of these issues(FirstEnergy_Online_Pens…).
Describe how FirstEnergy’s pension plan aligns with the company’s overall commitment to employee benefits and welfare. What role does the pension plan play in attracting and retaining talent within FirstEnergy, and how does it compare to industry standards?
Pension Plan and Employee Benefits: FirstEnergy’s pension plan aligns with the company’s broader commitment to employee welfare by offering structured retirement benefits. This plan is instrumental in attracting and retaining talent by offering competitive benefits comparable to industry standards(FirstEnergy_Online_Pens…).
How can employees at FirstEnergy effectively contact the company for further information about their pension benefits? Elaborate on the various communication methods available, including phone numbers, email, and online resources, ensuring they know how to reach out for specific inquiries.
Contacting FirstEnergy: Employees can contact FirstEnergy for pension-related inquiries through multiple channels, including a dedicated HR Service Center phone number, email options, and an online pension portal. These methods provide flexibility for addressing specific pension concerns(FirstEnergy_Online_Pens…).
With the introduction of new IRS limits for retirement plans in 2024, what changes should FirstEnergy employees be aware of regarding their pension contributions? Discuss how these changes could affect their retirement savings strategies and overall financial wellness.
2024 IRS Limits: FirstEnergy employees should be aware of new IRS limits for retirement plans that may affect their pension contributions. These changes could influence their retirement savings strategies, requiring them to review and adjust contributions to optimize their financial wellness(FirstEnergy_Online_Pens…).
What resources does FirstEnergy provide to help employees better understand the differences between qualified and non-qualified retirement plans, and how do these distinctions affect their retirement benefits? Look into how employee education plays a pivotal role in helping them make informed decisions.
Qualified vs. Non-Qualified Plans: FirstEnergy offers resources to help employees distinguish between qualified and non-qualified retirement plans, such as detailed forms and guidelines. Understanding these distinctions helps employees make informed decisions about their retirement benefits(FirstEnergy_Online_Pens…).
In the context of FirstEnergy’s commitment to environmental stewardship, how has the company’s shift to online pension statements reflected its sustainability efforts, and what additional measures could be implemented to enhance this initiative? Consider the long-term benefits of such practices for both the company and its retirees.
Sustainability Efforts: FirstEnergy’s shift to online pension statements supports their environmental stewardship goals by reducing paper use. While this initiative reflects their sustainability efforts, additional measures like expanding digital tools and resources could further enhance these practices(FirstEnergy_Online_Pens…).
For more information you can reach the plan administrator for FirstEnergy at , ; or by calling them at .
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