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Moderna Employees Face Potential Health Care Cost Increases in 2026

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Healthcare Provider Update: Provides health insurance, dental, vision, and mental health benefits, with generous disability and parental leave policies 4. With ACA subsidies set to expire, Modernas robust benefits package offers financial stability and comprehensive care that may outperform marketplace alternatives. Click here to learn more

'Moderna employees should prepare for 2026 by reviewing upcoming benefit changes and exploring ways to manage rising out-of-pocket health care costs.' - Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement.

'Moderna employees can better navigate rising health care expenses in 2026 by understanding benefit adjustments early and making informed plan selections,' - Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we’ll examine:

  1. Why increasing health care costs are pushing Moderna employers to pass more expenses onto employees.

  2. The approaches companies are using to handle cost pressures, including changes in plan design and pharmacy benefit modifications.

  3. How marketplace premium hikes and medical cost trends affect overall health care affordability.

In 2026, Moderna employees may bear a greater share of health care expenses as costs keep climbing.

Many large U.S. companies, including those such as Moderna, are preparing to adjust benefit structures to counter rising health care expenses. Mercer’s recent survey of 711 U.S. employers with 500 or more employees found that 51% are “likely” or “very likely” to raise deductibles, coinsurance, or out-of-pocket maximums in 2026—up from 45% who said the same for 2025. 1  

Despite cost-saving actions, employers’ health care costs rose by 4.5% in 2024 and are expected to climb another 5.8% in 2025; absent these actions, Mercer estimates that costs could go up by ~8%. 2  A key contributing factor is the high price of GLP-1 medications for diabetes and weight loss, averaging around $1,000 per patient per month. 1  The survey also found that 77% of employers rated managing GLP-1 costs as extremely or very important. 1  Although many companies—including those in the energy sector—have expanded GLP-1 coverage, growing concerns suggest such plans may be untenable by 2026.

Shifting Employer Approaches to Benefits

Previously, employers hesitated to raise deductibles because of tight labor markets and concerns about affordability. Today, with economic uncertainty and slower wage growth, cost management may be taking precedence over hiring and retention efforts in some cases. In 2026, 35% of large firms intend to offer unconventional medical plan options—such as copay-based models aimed at reducing costs while maintaining quality. 1  Moreover, 61% are evaluating alternatives to traditional pharmacy benefit arrangements to bring more clarity to drug pricing and pharmacy benefit manager (PBM) services. 1

Rising Costs in the Individual Market

The pressure extends beyond employer-sponsored coverage. The ACA marketplace is slated to experience some of its biggest premium increases in over five years. According to state filings, 2026 premiums could jump dramatically—UnitedHealthcare in New York is seeking increases of up to 66.4%, 3  Arkansas expects an average increase of 36.1%, 4  and Florida Blue is looking at 27%. 5  If enhanced federal subsidies expire at the end of 2025, millions could be exposed to the full impact of these higher premiums.

Why Costs Are Rising Across the Board

Medical cost trends are projected to increase by 7–10% annually—far exceeding general inflation—driven by factors like brand name medications, hospital services, and specialist care. Regulatory changes are adding further pressure. Insurer earnings also contribute, as several major carriers posted record profits in 2024 while launching multibillion-dollar stock buybacks.

Key Take-Away for Moderna Workers

With 51% of employers planning to transfer more health care costs onto workers—and ACA premiums rising sharply—2026 may become a critical year for health care affordability. Moderna employees who familiarize themselves with upcoming benefit changes, optimize HSA/FSA contributions, and choose their 2026 plan with care may offset some of the added costs. Otherwise, households could see thousands in extra spending for equal—or even reduced—coverage.

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Sources:

1.  Mercer. “ U.S. Employers Rethinking Benefit Strategy for 2026 amid Rapidly Rising Costs .”  Mercer Newsroom , 16 July 2025.

2. Fierce Healthcare. ' Mercer survey: Employers may make a return to healthcare cost-shifting strategies ,' by Paige Minemyer. 16 Jul 2025. 

3. New York State Department of Financial Services. ' 2026 Individual and Small Group Requested Rate Actions ,' 2 June 2025. 

4. ACHI. ' Arkansas Insurers File Proposed Rate Increases for 2026 ,' by Chris Ray. 8 Aug. 2025. 

5. Insurance Newsnet. ' Florida Blue among companies proposing double-digit healthcare increases ,' by Christine Sexton. 12 Aug. 2025. 

Other Resources:

1.  Ortaliza, Jared, et al. “How Much and Why ACA Marketplace Premiums Are Going Up in 2026.”  Peterson-KFF Health System Tracker , 6 Aug. 2025.

2.  New York State Department of Financial Services. “2026 Individual and Small Group Requested Rate Actions – Additional Information.”  DFS Prior Approval Portal , accessed 13 Aug. 2025.

3.  Sexton, Christine. “Watch Out for Double-Digit Health Insurance Increases in 2026.”  The Florida Phoenix , 11 Aug. 2025.

4.  Federal Trade Commission.  Specialty Generic Drugs: A Growing Profit Center for Vertically Integrated Pharmacy Benefit Managers. Second Interim Staff Report.  14 Jan. 2025. pp. 5–6, 19–20, 32–34.

What is the 401(k) plan offered by Moderna?

Moderna offers a 401(k) plan that allows employees to save for retirement by contributing a portion of their salary on a pre-tax or Roth after-tax basis.

How can I enroll in Moderna's 401(k) plan?

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

Does Moderna offer a company match for the 401(k) contributions?

Yes, Moderna provides a company match for employee contributions to the 401(k) plan, which helps boost retirement savings.

What is the maximum contribution limit for Moderna's 401(k) plan?

For 2023, the maximum contribution limit for Moderna's 401(k) plan is $22,500, with an additional catch-up contribution of $7,500 for employees aged 50 and older.

Can I change my contribution percentage to Moderna's 401(k) plan?

Yes, employees can change their contribution percentage to Moderna's 401(k) plan at any time through the benefits portal.

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

Moderna's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and company stock.

How often can I change my investment choices in Moderna's 401(k) plan?

Employees can change their investment choices in Moderna's 401(k) plan at any time, allowing for flexibility in managing their retirement savings.

Is there a vesting schedule for the company match in Moderna's 401(k) plan?

Yes, Moderna has a vesting schedule for the company match, which typically requires employees to work for a certain number of years before they fully own the matched contributions.

Can I take a loan against my 401(k) with Moderna?

Yes, Moderna allows employees to take loans against their 401(k) balance, subject to specific terms and conditions outlined in the plan document.

What happens to my 401(k) plan if I leave Moderna?

If you leave Moderna, you have several options for your 401(k) plan, including rolling it over to an IRA or a new employer's plan, cashing it out, or leaving it with Moderna.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Moderna offers a comprehensive retirement benefits package, which includes a defined contribution 401(k) plan. The company's 401(k) plan allows employees to make contributions through payroll deductions, with Moderna matching contributions based on employee elections. As of 2023, the contribution limit for Moderna employees participating in the 401(k) plan is $22,500, with an additional catch-up contribution of $7,500 for employees aged 50 and older​ (Mondaq)​ (KPMG). These limits reflect increases compared to the prior year, consistent with IRS guidelines. The plan offers both traditional 401(k) and Roth 401(k) options, allowing for tax-deferred or post-tax contributions, depending on the employee's financial strategy. Moderna also offers employer matching contributions, enhancing retirement savings for participating employees. Moderna’s plan provides various investment options, allowing employees to customize their retirement portfolios based on risk tolerance and retirement goals​ (Mondaq). Moderna uses its own specific acronyms, such as "RSP" (Retirement Savings Plan) for the 401(k) plan and "ModMatch" for its matching contribution feature. Employees become eligible for the 401(k) plan upon hire, and those who work at least 500 hours over three consecutive 12-month periods qualify to make contributions starting January 2024, as part of the SECURE Act amendments​
Moderna announced layoffs in 2024, primarily affecting its manufacturing unit, as part of a resizing strategy linked to its COVID production footprint. The company decided to cut jobs due to reduced demand for its COVID-related products and to optimize manufacturing costs. CEO Stéphane Bancel emphasized the importance of ongoing cost improvements in manufacturing as the company pivots away from focusing solely on COVID vaccines toward a broader pharmaceutical portfolio. Moderna expanded its headcount by 44% in 2023, but these layoffs reflect a necessary adjustment to its business strategy moving forward​ (FiercePharma).
Moderna provides its employees with stock options and Restricted Stock Units (RSUs) as part of their long-term incentive compensation. These programs are designed to align employee interests with shareholder value by granting ownership stakes in Moderna. Employees may receive Non-Qualified Stock Options (NSOs) and RSUs, which vest over time. NSOs give employees the right to buy Moderna stock at a pre-determined price, while RSUs grant shares upon vesting without the need for an initial purchase​ (SEC.gov)​ (Moderna). In 2022, Moderna reported that its stock option grants focused on driving financial and operational goals, including stock price appreciation. The company ensures that the majority of executive compensation is tied to at-risk components like stock options and RSUs. These awards are typically available to executives and employees in key roles​ (SEC.gov)​ (Moderna). The RSU program at Moderna also emphasizes long-term retention and performance, rewarding employees based on their contributions to the company's success. Moderna's stock options and RSU plans in 2023 and 2024 remained focused on aligning long-term incentives with business objectives, including the expansion of its pipeline and manufacturing capacity​ (SEC.gov). Executives and high-performing employees across various departments are eligible for these equity awards, ensuring their incentives are linked to Moderna’s overall performance​ (Moderna).
Health Insurance Options: Moderna provides multiple insurance plans, including health, dental, and vision coverage, ensuring that employees have access to preventive and medical care. These plans also include options for telemedicine and wellness care, reflecting industry trends. Lifestyle Spending Account: This program offers employees an annual allowance they can use towards fitness, nutrition, and other wellness activities, helping them maintain a healthy lifestyle. Personal Enrichment Benefit: This unique benefit provides an annual stipend for personal growth, such as attending language classes or certification programs like yoga instruction. Mental Health Support: Moderna prioritizes mental health with programs that offer support through Employee Assistance Programs (EAP), which include confidential counseling services. Family and Parental Benefits: The company has generous parental leave programs and fertility benefits, which have become standard in their competitive benefits package.
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For more information you can reach the plan administrator for Moderna at , ; or by calling them at .

https://rodgers-associates.com/blog/5-steps-successful-nua-transaction/ https://www.retirementwatch.com/the-net-unrealized-appreciation-nua-tax-strategy https://www.fidelity.com/learning-center/personal-finance/retirement/company-stock https://www.mondaq.com/unitedstates/employee-benefits-compensation/1377676/2023-retirement-plan-year-end-amendments-and-operational-compliancehttps://kpmg.com/us/en/home/insights/2023/11/tnf-notice-2023-75-pension-plans-cost-of-living-adjustments-2024.html https://tax.thomsonreuters.com/blog/irs-announces-2023-retirement-plan-dollar-limits-and-thresholds/ https://en.wikipedia.org/wiki/Moderna_COVID-19_vaccine https://www.irs.gov/retirement-plans/pension-plan-funding-segment-rates https://www.foxrothschild.com/publications/interest-rate-hikes-present-challenge-for-fully-funded-pension-plans https://www.mondaq.com/unitedstates/retirement-superannuation-pensions/1275478/secure-20-new-laws-expand-retirement-plan-eligibility-for-long-term-part-time-employees https://www.sec.gov/Archives/edgar/data/1682852/000130817923000184/lmrna2023_def14a.htm https://www.fiercepharma.com/pharma/moderna-lays-parts-manufacturing-team-after-rightsizing-covid-footprint https://investors.modernatx.com/news/news-details/2023/Moderna-to-Acquire-OriCiro-Genomics/default.aspx https://www.pharmanewsintel.com/news/moderna-to-buy-japanese-firm-oriciro-in-its-first-ever-acquisition https://www.thelayoff.com/t/1rlFrVQz https://www.nerdwallet.com/article/investing/retirement-statistics https://www.fidelity.com/calculators-tools/retirement-calculator/overview https://www.kiplinger.com/ https://www.daypitney.com/ https://www.milliman.com/en/

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