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

Largest Increase Ever From Top Insurers. Will HNI Employees Be Affected?

Healthcare Provider Update: HNI Corporation offers health insurance coverage to its U.S. employees through medical, dental, and vision plans, along with prescription benefits. The company provides Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) with employer contributions, as well as company-paid life and disability insurance. Preventive care and wellness programs are also included. HNI Corporation Healthcare costs in the United States are projected to continue rising through 2026, with insurers proposing significant premium increases for Affordable Care Act (ACA) plans. A recent analysis found that ACA insurers are seeking a median premium increase of 15% for 2026, marking the largest hike since 2018. This surge is attributed to factors such as the anticipated expiration of enhanced premium tax credits, rising medical costsincluding expensive medications and increased hospital staysand a shift in the risk pool towards higher-cost enrollees. Without the renewal of enhanced subsidies, out-of-pocket premiums for ACA marketplace enrollees could increase by more than 75% on average. Click here to learn more

'With ACA premiums expected to rise in 2026, HNI 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, HNI 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.

In this article we will discuss:
1. The expected premium increases for ACA marketplace plans in 2026 and their potential impact on HNI employees and retirees.
2. The major national insurers and states with the largest requested rate hikes.
3. 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 HNI 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 2025, average out-of-pocket premium payments for subsidized enrollees could rise by more than 75% in 2026. ¹ As of January 2025, 24.2 million people selected 2025 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:
- New York: UnitedHealthcare requesting up to +66.4% (individual market).
- Arkansas: QualChoice +54.4% , Ambetter (Celtic) +42.5% , statewide average +36.1% .
- Colorado: Western Slope ~+38.8% ; statewide average +28.4% . Rocky Mountain HMO +36.4% , Cigna +29.4% , Anthem +33.6% , Kaiser +15.3% .
- Florida: Molina ~+41% , Florida Blue +27% , Centene Venture +18.73%
- Maine: Anthem (revised) +24.8% ; statewide weighted average +25.9% .
- Washington: 14 insurers; requested average +21.2% .
- Vermont: BCBS Vermont +23.3% .
- Maryland: Requested statewide average +17.1% (individual market).
- Illinois: BCBS Illinois +27% .
- Texas: BCBS Texas +21% .
Major National Insurers and Their 2026 Requests:
- UnitedHealthcare (UnitedHealth Group): Up to +66.4% in New York.
- Elevance Health (Anthem BCBS): +33.6% in Colorado; +24.8% in Maine.
- Kaiser Permanente: +15.3% in Colorado (individual market).
- Centene Corporation (Ambetter/Celtic): +42.5% in Arkansas; +18.73% in Florida.
- Cigna Healthcare: +29.4% in Colorado.
- Molina Healthcare: ~41% in Florida.
- HCSC (BCBS IL, TX): +27% in Illinois; +21% in Texas.
- GuideWell (Florida Blue): +27% in Florida.
- CareFirst BlueCross BlueShield: Maryland requested statewide average +17.1% .
- CVS Health/Aetna: Withdrawing ACA marketplace plans in 17 states in 2026, affecting ~1 million members.
Key Factors Driving the Increases:
- Loss of Enhanced Premium Subsidies: The American Rescue Plan and Inflation Reduction Act extended ACA subsidies through 2025. 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
- 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.
- 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.

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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 2025 .' 17 Jan. 2025.

3. The Commonwealth Fund. ' Proposed Rule Will Make Consumers Pay More for Health Insurance and Care in ACA Marketplaces ,' by Sara Collins. 7 May 2025.

4. Fierce Healthcare. ' KFF Analysis finds a median ACA premium hike of 18% for 2026 ,' by Paige Minemyer. 8 Aug. 2025.

5. PwC Health Research Institute. Medical Cost Trend: Behind the Numbers 2026 . PwC , 16 July 2025, 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 2025, 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 2025, PDF, https://www.cms.gov/files/document/cms-9884-f-2025-pi-rule-master-5cr-062025.pdf .

3. Minemyer, Paige. “Aetna to Exit the ACA Exchanges in 2026.” Fierce Healthcare , 1 May 2025, https://www.fiercehealthcare.com/payers/aetna-exit-aca-exchanges-2026 .
Pages/Sections referenced: Article body noting ~1 million exchange members and the 2026 exit (single web page; n. pag.).

What is the HNI 401(k) plan?

The HNI 401(k) plan is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out, helping them prepare for retirement.

How does HNI match contributions to the 401(k) plan?

HNI offers a matching contribution up to a certain percentage of employee contributions, which helps to enhance the overall retirement savings.

When can I enroll in HNI's 401(k) plan?

Employees can enroll in HNI's 401(k) plan during the initial onboarding process or during the annual open enrollment period.

What are the eligibility requirements for HNI's 401(k) plan?

To be eligible for HNI's 401(k) plan, employees typically need to meet certain criteria, such as being a full-time employee and completing a specified period of service.

Can I change my contribution rate to HNI's 401(k) plan?

Yes, employees can change their contribution rate to HNI's 401(k) plan at any time, subject to plan rules.

What investment options are available in HNI's 401(k) plan?

HNI's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.

Does HNI provide financial education resources for employees regarding the 401(k) plan?

Yes, HNI provides financial education resources and tools to help employees make informed decisions about their 401(k) savings.

What happens to my HNI 401(k) if I leave the company?

If you leave HNI, you have several options for your 401(k), including rolling it over to a new employer’s plan, an IRA, or cashing it out (though cashing out may have tax implications).

Is there a loan option available through HNI's 401(k) plan?

Yes, HNI's 401(k) plan may allow employees to take loans against their vested balance, subject to specific terms and conditions.

How often can I access my HNI 401(k) account statements?

Employees can access their HNI 401(k) account statements online, typically on a quarterly basis, or they can request them as needed.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

HNI Corporation provides both a 401(k) plan and a pension plan for its employees. HNI's 401(k) plan offers a company match where employees can contribute to their retirement savings. The match formula includes 100% matching on the first 1-3% of employee contributions, and 50% matching on the next 2%. This means HNI will match up to a maximum of 4% of an employee’s contributions, as long as the employee contributes at least 5% (PlanPerfect). The HNI pension plan is a defined benefit plan that requires employees to meet specific service and age qualifications. Employees typically need to complete one year of service before they are eligible for the pension plan. The pension formula is based on the employee’s final average pay and years of service. The specific name of the pension plan is "HNI Defined Benefit Pension Plan," and it applies to employees who meet the age and service requirements set forth by the company

In early 2024, HNI Corporation announced a significant restructuring plan aimed at streamlining its operations and reducing costs. The company will be implementing layoffs affecting approximately 5% of its workforce. This move is part of a broader strategy to enhance operational efficiency and adapt to changing market conditions. Given the current economic climate, where companies are re-evaluating their cost structures amidst economic uncertainty, it is crucial for affected employees and stakeholders to stay informed about these changes. Additionally, the restructuring may impact company benefits and pension plans, necessitating close attention to any modifications in these areas.

Stock Options and RSU Acronyms Identify the acronyms used for stock options and RSUs. Provide details on how these options and units are structured and allocated. Company-Specific Details Review HNI Corporation’s stock options and RSUs for the years 2022, 2023, and 2024. Determine who is eligible for these benefits. Source and Documentation Include specific sources and page numbers for verification.

Official HNI Corporation Website Health Benefits Overview: HNI’s official website typically provides an overview of its employee benefits, including health insurance, dental and vision coverage, and wellness programs. Key Terms: Health Savings Account (HSA), Flexible Spending Account (FSA), Premiums, Deductibles, Coinsurance, Out-of-Pocket Maximums. Glassdoor Employee Reviews: Employees often review benefits on Glassdoor, detailing their experiences with HNI’s health insurance plans, including the quality of the plans and any changes over the years. Key Terms: PPO (Preferred Provider Organization), HMO (Health Maintenance Organization), Copays, Network Coverage.

Additional Articles

Check Out Articles for HNI employees

For more information you can reach the plan administrator for HNI at , ; or by calling them at .

https://www.fidelity.com/learning-center/personal-finance/retirement/company-stock https://www.kitces.com/blog/net-unrealized-appreciation-irs-rules-nua-from-401k-and-esop-plans/ https://creativeplanning.com/insights/financial-planning/how-to-use-the-net-unrealized-appreciation-nua-strategy-in-your-401k/ https://www.planperfectretirement.com/yearly-retirement-plan-contribution-limits/