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

Retiring Early from Bank of America? Major Increases to 2026 ACA Premiums Projected in Several States

Healthcare Provider Update: Healthcare Provider for Bank of America Bank of America offers its employees a range of healthcare plans, primarily provided through Anthem BlueCross BlueShield, commonly known as Anthem. This partnership enables Bank of America employees to access various medical, dental, and vision insurance plans, tailored to the needs of its diverse workforce. Anticipated Healthcare Cost Increases for Bank of America in 2026 As we approach 2026, healthcare costs for Bank of America employees are expected to rise significantly due to multiple factors. Notably, the expiration of enhanced federal premium subsidies under the Affordable Care Act (ACA) is projected to amplify out-of-pocket premiums by more than 75% for many employees. Further compounding this issue is the continuous rise in medical costs, which, coupled with escalating charges from insurers, could lead to double-digit rate increases. This perfect storm of factors places a significant financial burden on employees, prompting the need for strategic planning and proactive measures to mitigate rising healthcare expenses Click here to learn more

'With 2026 ACA premiums set to rise, Bank of America employees approaching early retirement should integrate health care cost projections into their broader income planning to help maintain long-term financial stability.' – Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.

'Given the anticipated ACA premium hikes in 2026, Bank of America employees considering early retirement should evaluate how health care expenses fit within their retirement budget to support a sustainable financial plan.' – Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article we will discuss:

The proposed2026 ACA premium increases and the states facing the steepest hikes.
Key economic and policy factors influencingthese premium changes.
Strategies retirees can use to help manage rising health care costs before Medicare eligibility.

Following recent changes to the Affordable Care Act (ACA), millions of Americans covered by ACA marketplace insurance may be set to see a sharp rise in their annual premiums. Preliminary estimates place the median national increase at 18%, ¹ with many states anticipated to exceed this level. Early filings cite the planned expiration of enhanced subsidies, ongoing medical inflation, the rising cost of specialty drugs, and broad policy and market pressures as contributors to premium jumps that could increase by as much as 30% in certain areas. ²

States With the Biggest Increases Under Consideration

While changes vary by insurer and plan, early filings identify five states with some of the steepest expected increases:

Projected → Anticipated increase of about 24%. UnitedHealthcare, for example, requested a 66.4% increase for specific ACA policies.
Colorado: Insurers report statewide average increases in the high teens to 20% range, with some geographic areas facing hikes above 33%.
Illinois: Blue Cross & Blue Shield of Illinois has filed for an almost 27% increase for 2026, placing the state among those with the highest expected rate changes.
Rhode Island: Rate-review report shows a weighted average request in the low to high 20% range, depending on carrier.
Washington: Fourteen individual-market insurers requested an average statewide increase of 21.2% for 2026.

Final approved rates will be determined later in the year following each state’s review process. However, the data so far indicates 2026 will be challenging for those on ACA coverage before Medicare eligibility. Nationwide, most planned increases fall between 12% and 27%, with many topping 20%.

Factors Contributing to the 2026 Increase

Several converging factors are influencing these rate hikes:

1. Expiration of Enhanced ACA Premium Subsidies: Without new legislation, temporary premium tax credits will end in 2026, raising monthly costs and potentially reducing enrollment among healthier individuals—worsening risk pools and pushing rates up.
2. Medical Inflation and Provider Pricing: Hospitals and health care providers are negotiating higher reimbursement rates to offset increased labor, supply, and inflationary costs.
3. High-Cost Pharmaceuticals: Specialty drugs, including GLP‑1 therapies for diabetes and weight management, are driving higher payouts, with expenses being pushed back to consumers.
4. Supply Chain Costs and Tariffs: Delays and tariffs on health care equipment and imports are contributing to insurers’ cost forecasts.
5. Risk Pool Deterioration: Rising rates may cause healthier enrollees to exit the market, raising the average cost for those remaining.

Ways to Manage Rising ACA Premium Costs

Financial planning professionals, including Brent Wolf and Paul Bergeron of Wealth Enhancement, note that proactive, tax-aware strategies can help Bank of America retirees mitigate these increases:

Adjust Retirement Timing: Delaying retirement until closer to Medicare eligibility could reduce years of elevated ACA coverage costs.
Manage Modified Adjusted Gross Income (MAGI): Strategic Roth conversions or income‑efficient withdrawals can help preserve eligibility for premium support.
Contribute to a Health Savings Account (HSA): Full HSA funding offers pre‑tax contributions, tax‑deferred growth, and tax‑free withdrawals for qualified medical expenses.
Compare Plans During Open Enrollment: Reviewing network access, cost-sharing, and prescription coverage across carriers can help identify more budget‑friendly options.
Evaluate COBRA vs. ACA Coverage: Depending on age, health needs, and location, COBRA continuation may be cost effective for a limited time after leaving employer coverage.
Use Special Enrollment Periods: Income or household changes may qualify enrollees for updated subsidies.

Particular Considerations in New York

New York’s ACA marketplace offers one of the most diverse plan selections nationwide, and rate requests vary widely. The Department of Financial Services releases carrier-level tables showing proposed changes. Significant hikes from carriers like United Healthcare and Oxford have attracted attention; ³ final approvals will be announced later this summer.

Looking Ahead

While rate increase reports remain preliminary, it appears that ACA enrollees may face substantial premium increases in 2026. For some households, rate hikes of 20–30% could mean hundreds more per month. For Fortune 500 employees considering retiring early, incorporating health care costs into broader tax and income planning will be vital.

According to Avalere Health and AARP’s Public Policy Institute, nearly five million adults aged 50–64 may experience average annual premium increases exceeding $4,000 if enhanced ACA subsidies lapse, and some could lose eligibility altogether. ⁴

With national rates expected to go up by a median of 18%—and more in specific states—retirees will need to adopt targeted planning. Thoughtful plan comparison, HSA contributions, and income management can offer some relief ahead of Medicare eligibility.

Retiring early before Medicare can be likened to setting sail toward an approaching storm. In 2026, the winds of expiring subsidies, medical inflation, and costly new treatments could make for turbulent conditions. By adjusting income strategies, funding HSAs, and choosing plans carefully, retirees may navigate these waters much like a seasoned captain charts a steady course through rough seas.

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Sources:

1. KFF. ' 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. 2025.
2. Fierce Healthcare. ' KFF analysis finds a median ACA premium hike of 18% for 2026 ,' by Paige Minemyer. 8 Aug. 2025.
3. ACASignups.net. ' 2026 Rate Changes - New York: +13.2% Avg ,' New York Department of Financial Services. 2 June 2025.
4. AARP. ' Expiring Tax Credit Threatens Affordable Health Coverage for Midlife Adults ,' by Jan Sung and Olivia Dean. 4 April 2025.

What are the key differences between the single-life annuity option and the joint-life annuity option offered by Bank of America Corporation, and how can employees determine which option is more beneficial for their personal circumstances? To make this decision, employees should consider their marital status, life expectancy, and other retirement income sources they might have while assessing their overall financial picture.

Single-life vs. Joint-life Annuity Options: The single-life annuity option provides monthly payments only for the retiree's life, making it potentially higher as it is based solely on one life expectancy. Conversely, the joint-life annuity option extends payments to cover the life of a spouse or another beneficiary after the retiree's death, typically resulting in lower monthly payments due to the extended payout period. Employees should consider their marital status, life expectancy, and whether they need to provide for a spouse or other dependents in deciding which option suits their personal circumstances best.

How does the vesting schedule in the pension plan of Bank of America Corporation affect employees' entitlement to their benefits, and what factors should employees consider when planning for their retirement? Understanding whether your plan follows a cliff or graded vesting approach is crucial to knowing how long employees must work before they fully own their benefits.

Vesting Schedule Impact: Bank of America's pension plan offers two types of vesting schedules: cliff and graded. Cliff vesting allows employees to be fully vested after a set number of years, while graded vesting gradually increases the vested percentage over time. Employees should factor in their career plans, like how long they intend to stay with the company, as reaching full vesting can significantly affect their pension entitlement.

Given that pension plans are increasingly uncommon, as noted for Bank of America Corporation, how can employees best utilize their pension benefits to ensure financial stability in retirement? Employees should explore the historical context of pension availability in the company and industry while considering the impact of other retirement accounts, such as 401(k) plans and IRAs.

Utilizing Pension Benefits: With pension plans becoming less common, employees of Bank of America should maximize this benefit by understanding how it complements other retirement resources such as 401(k)s or IRAs. Employees can benefit from the security a pension provides by integrating it into a broader retirement strategy, considering factors like inflation and other income sources.

In what ways can Bank of America Corporation employees access information about the specifics of their pension plans, including eligibility criteria and benefit calculations? Employees should familiarize themselves with their Summary Plan Description (SPD) and the Annual Funding Notice they receive to stay informed about their benefits.

Accessing Pension Plan Information: Bank of America employees can access details of their pension plans through the Summary Plan Description (SPD) and Annual Funding Notices. These documents provide essential information about eligibility, benefit calculations, and rights under the plan, helping employees make informed decisions about their retirement.

What considerations should Bank of America Corporation employees take into account when opting for a lump-sum distribution versus an annuity payment, and how might these choices impact their long-term financial security? Employees need to evaluate their comfort with investment risks and their plans for retirement fund distribution, keeping in mind the potential for inflation.

Choosing Between Lump-Sum and Annuity Payments: The choice between receiving a lump-sum or annuity payments impacts long-term financial security. A lump-sum offers flexibility and control over investments, suitable for those comfortable with managing large sums. An annuity provides a steady income stream, preferable for those seeking stability and less investment risk. Factors like health, life expectancy, and other income sources should influence this decision.

How can employees at Bank of America Corporation estimate their monthly retirement income from the pension plan, and what resources are available to help them with this calculation? Utilizing employer-provided tools, financial calculators, or consulting with a financial planner could significantly aid employees in understanding their expected retirement income.

Estimating Monthly Retirement Income: Bank of America employees can estimate their pension income using tools provided by the employer, such as financial calculators, or by consulting with a financial planner. These resources help employees project their income based on their salary and years of service.

Considering the potential tax implications associated with pension plans, how should employees of Bank of America Corporation prepare to manage these taxes upon retiring? Understanding when taxes will be incurred and what strategies can minimize tax liabilities will be key as they transition into retirement.

Managing Tax Implications of Pensions: Understanding the tax implications of pension benefits is crucial. Bank of America employees should plan for the taxation of pension payments upon receipt and consider strategies to minimize tax liabilities, possibly consulting with tax professionals.

How does the funding structure of Bank of America Corporationâ€™s pension plan, including employer contributions, influence the sustainability and reliability of benefits for employees? Employees should be aware of the responsibilities their employer has in managing the pension plan and ensuring sufficient funding across economic fluctuations.

Funding Structure and Benefit Reliability: The sustainability of pension benefits at Bank of America depends on the company's commitment to adequately fund the plan and pay required insurance premiums to the PBGC. Employees should be aware of the funding status through the Annual Funding Notice to assess the plan's health.

What role does the Pension Benefits Guaranty Corporation (PBGC) play in protecting the pension benefits of Bank of America Corporation employees, and how should employees understand this protection when planning for their future? Familiarizing themselves with the limits of the PBGC can help employees gauge the security of their pension benefits.

Role of the PBGC: The Pension Benefits Guaranty Corporation (PBGC) protects the pension benefits of Bank of America employees, providing a safety net in cases where plans cannot meet their obligations. Employees should understand the extent of PBGC coverage and limits to evaluate the security of their benefits.

How can Bank of America Corporation employees reach out to learn more about their pension plan and any specific benefits applicable to them? Employees should seek guidance from the plan administrator or utilize the communication channels provided within the company to obtain personalized assistance regarding their retirement planning needs.

Learning More About Pension Benefits: Bank of America employees looking for more detailed information about their specific pension benefits should consult their plan administrator or utilize company-provided communication channels. This direct engagement helps ensure employees receive personalized and up-to-date information regarding their retirement planning.

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

Bank of America offers both a traditional defined benefit pension plan and a defined contribution 401(k) plan. The defined benefit plan provides retirement income based on years of service and final average pay. The 401(k) plan features company matching contributions and various investment options, including target-date funds and mutual funds. Bank of America provides financial education and planning resources to help employees manage their retirement savings.

Bank of America has faced layoffs as part of its ongoing restructuring efforts in 2024. Despite the layoffs, the company continues to offer extensive retirement benefits, including 401(k) plans, pension plans, and various health and wellness programs for retirees. Staying updated on these benefits is essential in the current political environment.

Bank of America grants RSUs that vest over a specific period, providing shares upon vesting. They also offer stock options, allowing employees to purchase shares at a set price.

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For more information you can reach the plan administrator for Bank of America at 100 N Tryon St Charlotte, NC 28255; or by calling them at +1 800-432-1000.