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

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

Healthcare Provider Update: Healthcare Provider for Illumina Illumina, a leader in genomic sequencing technology, utilizes various healthcare providers for its insurance needs. While specific provider details are not universally captured, notable healthcare partners have included large insurers like UnitedHealthcare and Aetna, which typically offer comprehensive plans tailored to employees in the biotech and pharmaceutical sectors. Potential Healthcare Cost Increases in 2026 for Illumina As a result of anticipated increases in healthcare costs in 2026, Illumina employees may face significantly higher premiums due to a perfect storm of factors impacting the Affordable Care Act marketplaces. With some states projected to experience premium hikes upwards of 60%, and up to 92% of ACA marketplace enrollees potentially seeing increases in out-of-pocket costs exceeding 75% without the renewal of federal subsidies, Illumina's workforce will need to brace for substantial financial challenges. Coupled with rising medical cost inflation and aggressive rate increases from major insurers, these shifts will pose potential strains on employee healthcare budgets and require strategic planning to manage escalating expenses effectively. Click here to learn more

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

Featured Video

Articles you may find interesting:

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 401(k) plan offered by Illumina?

The 401(k) plan at Illumina 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 Illumina match employee contributions to the 401(k) plan?

Illumina offers a matching contribution to the 401(k) plan, where the company matches a percentage of employee contributions up to a certain limit, enhancing employees' savings potential.

When can employees at Illumina start contributing to the 401(k) plan?

Employees at Illumina can begin contributing to the 401(k) plan after completing their initial eligibility period, which is typically outlined in the employee handbook.

Does Illumina offer a Roth 401(k) option?

Yes, Illumina provides a Roth 401(k) option, allowing employees to contribute after-tax dollars, which can grow tax-free for retirement.

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

Illumina's 401(k) plan includes a variety of investment options, such as mutual funds, target-date funds, and other investment vehicles to help employees diversify their portfolios.

Is there a vesting schedule for Illumina's 401(k) matching contributions?

Yes, Illumina has a vesting schedule for matching contributions, which means that employees must work for a certain period to fully own the matched funds.

Can employees at Illumina take loans against their 401(k) savings?

Yes, Illumina allows employees to take loans against their 401(k) savings, subject to certain terms and conditions outlined in the plan documents.

What happens to the 401(k) plan if an employee leaves Illumina?

If an employee leaves Illumina, they have several options for their 401(k) plan, including rolling it over to another retirement account, leaving it with Illumina, or cashing it out.

How often can employees at Illumina change their 401(k) contribution amounts?

Employees at Illumina can change their 401(k) contribution amounts during designated enrollment periods or as permitted by the plan, typically on a quarterly basis.

Does Illumina provide educational resources about the 401(k) plan?

Yes, Illumina offers educational resources and workshops to help employees understand their 401(k) plan options and make informed investment decisions.

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

Name of Pension Plan: Illumina Retirement Plan Years of Service and Age Qualification: Employees are eligible for pension benefits if they have at least 5 years of service and are at least 55 years old. Pension Formula: The formula typically involves a combination of years of service and average salary. Exact details may vary based on individual circumstances. Plan Documentation: 401(k) Plan Name of 401(k) Plan: Illumina 401(k) Savings Plan Eligibility: All employees who meet the minimum service requirement, typically 30 days of employment. Plan Contributions: Employees can contribute up to the annual IRS limit, with potential matching contributions from Illumina.

Illumina announced a restructuring plan in early 2024, which includes significant layoffs and a shift in its business strategy. The company is reducing its workforce by approximately 8% to streamline operations and focus on core business areas. This decision follows a period of slower-than-expected growth and increasing pressure on its financial performance. The restructuring is part of Illumina’s effort to cut costs and improve profitability amidst a challenging economic environment.

Stock Options: Illumina offers stock options as part of its employee compensation package. The stock options are generally available to senior executives and key employees, with grants typically made based on performance and tenure. RSUs: Restricted Stock Units (RSUs) at Illumina are provided to a broader range of employees, including those at various levels of management. RSUs usually vest over a period of time, rewarding employees for their continued service and performance

Health Benefits Overview: Illumina offers a comprehensive benefits package that includes medical, dental, and vision coverage. Employees have access to various health plans, including HMO and PPO options. The company also provides mental health support through an Employee Assistance Program (EAP) and wellness resources.