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

Resolute Forest Products Employees Face Potential Health Care Cost Increases in 2026

Healthcare Provider Update: Resolute Forest Products offers health insurance benefits that include enhanced dental and vision coverage, life insurance, and long-term disability. Recent union agreements have increased benefit amounts and added vacation time. Employees also have access to a benefits portal for managing coverage and making changes during open enrollment 8. 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

'Resolute Forest Products 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.

'Resolute Forest Products 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:

Why increasing health care costs are pushing Resolute Forest Products employers to pass more expenses onto employees.
The approaches companies are using to handle cost pressures, including changes in plan design and pharmacy benefit modifications.
How marketplace premium hikes and medical cost trends affect overall health care affordability.

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

Many large U.S. companies, including those such as Resolute Forest Products, 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 Resolute Forest Products 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. Resolute Forest Products 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.

How does the Pulp and Paper Industry Pension Plan interact with other retirement savings options that employees may have? Employees at the Pulp and Paper Industry are encouraged to understand the implications of their pension benefits when considering their overall retirement strategy. Given the complexity of retirement planning, how should one factor in the Pulp and Paper Industry Pension Plan alongside personal savings, employer-matched contributions, and other investment accounts?

Pension Plan Interaction with Other Retirement Savings: Employees in the Pulp and Paper Industry should consider the Pension Plan as a foundational part of their overall retirement strategy. When planning for retirement, it's crucial to balance the pension benefits alongside personal savings, employer-matched contributions, and other investment accounts such as RRSPs or TFSAs. The Pension Plan, contributing a stable retirement income, can complement more flexible savings vehicles that provide additional liquidity and growth potential, especially considering tax implications and withdrawal strategies for an efficient retirement portfolio.

What are the key factors that determine the monthly pension payment upon retirement for employees in the Pulp and Paper Industry? Understanding the formula that calculates the pension benefits based on earnings, years of service, and the applicable rates is crucial for employees planning their retirement. Can you elaborate on how these elements work together to produce an individual's retirement income?

Key Factors Determining Pension Payments: The monthly pension payment for employees in the Pulp and Paper Industry is primarily calculated based on credited service, eligible earnings, and the applicable pension benefit rate. The formula integrates years of service with the employee's average earnings and the benefit accrual rate of 1.55%. This means the longer the employee's service and the higher their eligible earnings, the larger the pension payout. The calculation is also influenced by early retirement reductions or post-65 service, ensuring that employees' retirement income reflects their contribution history(Pulp_and_Paper_Industry…).

In what circumstances can employees of the Pulp and Paper Industry expect a reduction in their pension benefits, and what specific actions can be taken to mitigate this reduction? An in-depth examination of early retirement options, the choices available at different ages, and the financial implications is vital for long-term planning. What steps should an employee take before deciding to retire early?

Circumstances Affecting Pension Reductions: Employees of the Pulp and Paper Industry may face pension reductions if they retire before the age of 65. Early retirement between 55 and 65 incurs a reduction in pension benefits, ranging from 3% to 18%, depending on the age of retirement. To mitigate this reduction, employees can consider working longer or maximizing other retirement savings before electing early retirement. It's essential to review the pension reduction tables and consult the Plan Administrator to understand the financial implications of early retirement(Pulp_and_Paper_Industry…).

How are employee contributions structured under the Pulp and Paper Industry Pension Plan, and what is the impact of these contributions on overall retirement savings? Employees need to understand how their contributions, along with the employer's match, affect their future pension benefits. Could you detail the contribution rates and how they relate to the final pension payout?

Employee Contributions and Pension Benefits: Employees contribute 8% of their earnings to the Plan, while employers contribute 10%. These contributions directly impact the pension benefits, with higher contributions resulting in more substantial retirement payouts. Contributions stop once 2080 hours are paid within a plan year. Understanding how both employee and employer contributions accumulate is crucial for estimating future benefits and integrating them into overall retirement savings(Pulp_and_Paper_Industry…).

What is the process for employees of the Pulp and Paper Industry who experience a significant life event, such as marriage breakdown or disability, to adjust their pension plan? Employees need to be aware of the rights and options available to adjust their benefits in light of personal circumstances. What documentation is needed, and how does the process work?

Adjusting Pension Plan for Life Events: Significant life events such as marriage breakdown or disability allow employees to adjust their pension benefits. In the event of a marriage breakdown, 50% of the pension earned during the marriage may be split with the spouse, and specific forms and legal agreements are required for this process. Disability provisions may allow the employee to continue earning credited service without contributing. Employees should submit medical evidence or legal documents as necessary to the Plan Administrator to process adjustments(Pulp_and_Paper_Industry…).

How can employees in the Pulp and Paper Industry ensure that their personal information remains secure while accessing their pension benefits? Given the sensitive nature of financial information, it is crucial for employees to understand the privacy measures in place. What steps are taken to protect personal data, and what should employees do if they have concerns regarding their privacy?

Securing Personal Information: The Pulp and Paper Industry Pension Plan takes employee privacy seriously by using appropriate safeguards to protect personal information. Data is only shared with pension professionals for plan administration purposes. Employees can access their personal information and correct inaccuracies by contacting the Plan Administrator. If employees have concerns about data security, they should report them immediately to ensure their privacy is maintained(Pulp_and_Paper_Industry…).

What resources are available for employees of the Pulp and Paper Industry to access more detailed information about their pension benefit calculations and options? Seeking information through the right channels is essential for making informed decisions about retirement planning. Can you provide an overview of the tools and resources available to employees for understanding their benefit entitlements?

Resources for Pension Information: Employees have access to a variety of resources to help them understand their pension benefits. These include the Plan’s official web portal, personalized pension statements, and direct assistance from the Plan Administrator. For more detailed information, employees can consult their collective agreement and Plan documents, or they may contact the Administrator for personalized pension projections and guidance(Pulp_and_Paper_Industry…).

In terms of the Pulp and Paper Industry's collective agreements with the Public and Private Workers of Canada (PPWC) or Unifor, how do those agreements affect pension benefits? Understanding these agreements is critical for employees as they directly influence the terms of the pension plan. Can you explain how these agreements shape the benefits structure and payout options?

Impact of Collective Agreements: Collective agreements between the Pulp and Paper Industry and unions like PPWC or Unifor directly influence pension plan provisions. These agreements determine contribution rates, eligibility, and benefit structures. Changes in collective agreements may lead to adjustments in pension benefits, so employees should stay informed about any updates to their collective agreement terms(Pulp_and_Paper_Industry…).

What implications does the Pulp and Paper Industry Pension Plan have for employeesâ€™ beneficiaries, and what should employees know about designating a beneficiary? It is imperative for individuals to understand the importance of beneficiary designations. What processes should employees follow to ensure that their beneficiaries are appropriately designated and informed?

Pension Plan for Beneficiaries: Employees must ensure they appropriately designate a beneficiary for their pension benefits. In the event of death before retirement, the spouse or designated beneficiary will receive the pension benefits. If no beneficiary is designated, benefits are paid to the estate. Employees should complete and update their beneficiary designation form regularly to reflect their wishes and avoid legal complications(Pulp_and_Paper_Industry…).

How can an employee in the Pulp and Paper Industry contact the Plan Administrator for assistance regarding their pension benefits? Knowing the proper contact information and support channels is essential for employees navigating their retirement benefits. What are the best ways to reach out for help, and what types of inquiries can the Plan Administrator assist with?

Contacting the Plan Administrator: Employees can contact the Plan Administrator, LifeWorks, for assistance with their pension benefits. They can reach out by phone, email, or mail for inquiries about retirement estimates, pension adjustments, or general benefit calculations. The Administrator provides essential support for processing retirement, termination, and death benefits(Pulp_and_Paper_Industry…).