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

Retiring Early from CITGO? Major Increases to 2026 ACA Premiums Projected in Several States

'With 2026 ACA premiums set to rise, CITGO 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, CITGO 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 CITGO 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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Articles you may find interesting:

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 eligibility criteria for employees to participate in the Retirement Plan of CITGO Petroleum Corporation, and how do these criteria affect the benefits that employees accrue? Employees of CITGO Petroleum Corporation must meet specific criteria to qualify for the Retirement Plan, which is designed to provide a stable income during retirement. Understanding these eligibility requirements is crucial for employees, as it impacts their expected benefits and retirement strategy.

Eligibility for the CITGO Petroleum Corporation Retirement Plan: Employees must be at least 21 years old and have completed 12 months of employment with at least 1,000 hours of service to be eligible. Hourly employees covered by a collective bargaining agreement are typically included after meeting these requirements. Eligibility significantly affects benefits accrual, as being a participant allows employees to begin accruing service and vesting credits, which directly influence retirement benefit calculations(CITGO_Petroleum_Corpora…).

How does the Cash Balance Benefit structure work within the Retirement Plan of CITGO Petroleum Corporation, particularly regarding the accumulation of Compensation Credits and Interest Credits? The Cash Balance Benefits offer a valuable retirement savings mechanism for CITGO employees, impacted by their Basic Earnings and years of service. As interest rates fluctuate, the manner in which these credits accumulate can significantly influence the overall retirement benefit.

Cash Balance Benefit Structure: The Cash Balance Benefit under the Retirement Plan includes Compensation Credits and Interest Credits. Compensation Credits are based on a percentage of Basic Earnings, determined by the employee's age and years of service. Interest Credits are applied annually and are calculated based on the higher of the 30-year Treasury securities rate or 1.5%. These credits are added to the employee's notional account balance each year, with the total balance used to determine the retirement benefit(CITGO_Petroleum_Corpora…).

In what ways can employees of CITGO Petroleum Corporation manage their Frozen Accrued Benefit upon retirement, and what considerations must they take into account? Employees nearing retirement should know how to optimize their Frozen Accrued Benefit for their individual retirement planning. Factors such as timing, potential changes in personal circumstances, and regulatory aspects play a critical role in this planning process.

Managing Frozen Accrued Benefits: Upon retirement, employees can manage their Frozen Accrued Benefit by selecting different payout options such as a single-life annuity or joint and survivor annuities. The timing of retirement also plays a key role, as early retirement may reduce the benefits based on age reduction factors. Employees need to consider their financial circumstances and retirement goals to optimize this benefit(CITGO_Petroleum_Corpora…).

What are the implications of transferring employment status (from hourly to salaried) on participation in the Retirement Plan of CITGO Petroleum Corporation? Understanding how a transition from hourly to salaried employment affects fund accumulation and credit service under the Retirement Plan is vital for employees planning their careers. Such transitions need to be handled carefully to ensure that benefits remain maximized.

Effect of Employment Status Transfer: A transfer from hourly to salaried employment will freeze Benefit Credit Service under the Plan, but Vesting Credit Service continues. Compensation and Transition Credits cease for hourly employees transitioning to salaried roles. However, Interest Credits continue until the Cash Balance Benefit is distributed. These changes can affect the overall retirement fund accumulation(CITGO_Petroleum_Corpora…).

How do various retirement benefit options, including lump-sum payments and annuities, function within the CITGO Petroleum Corporation Retirement Plan? Employees face various choices regarding the disbursement of retirement benefits, each carrying unique financial implications. Evaluating these options requires a keen understanding of how they interact with overarching financial goals.

Retirement Benefit Options: CITGO Petroleum employees can choose between receiving their retirement benefits as a lump sum or through an annuity. Each option has different financial implications. Lump-sum payments offer immediate access to funds, but annuities provide a steady income stream over the retiree's lifetime. The choice between these options depends on the employee’s personal financial strategy(CITGO_Petroleum_Corpora…).

What is the role of the Plan Administrator in resolving benefits-related issues for employees at CITGO Petroleum Corporation, and how can employees effectively interact with this office? Employees must understand the administrative structure governing their retirement benefits. Effective communication with the Plan Administrator can significantly enhance an employee's ability to navigate complex issues regarding their retirement.

Role of Plan Administrator: The Plan Administrator is responsible for managing and resolving any issues related to retirement benefits. Employees can contact the Benefits HelpLine for inquiries or disputes regarding their benefits. Effective communication with the Plan Administrator ensures that employees can navigate and resolve issues related to their retirement plan(CITGO_Petroleum_Corpora…).

How does the vesting schedule impact the retirement benefits of employees at CITGO Petroleum Corporation, and what strategies can employees employ to ensure full vesting? The vesting schedule is a critical component influencing when employees become entitled to their benefits. Employees should be aware of what actions can enhance their vesting status prior to retirement.

Impact of the Vesting Schedule: CITGO’s vesting schedule requires employees to have at least three years of service to become 100% vested. Vesting entitles employees to receive full benefits under the Plan. Employees nearing retirement should ensure they meet the vesting requirements to maximize their entitled benefits(CITGO_Petroleum_Corpora…).

What are the special provisions that exist for employees returning to work after receiving retirement benefits within the CITGO Petroleum Corporation Retirement Plan? Employees considering retirement must appreciate how returning to work can alter their benefits under the Retirement Plan. The potential effects on benefit payments, roles, and rights are crucial discussions for retiring employees.

Returning to Work Post-Retirement: Employees who return to work after receiving retirement benefits will have their benefit payments suspended. Upon re-retirement, their benefits are recalculated to reflect any additional service accrued during reemployment. Employees must understand these provisions to avoid potential disruptions to their retirement income(CITGO_Petroleum_Corpora…).

How is the funding status of the Retirement Plan of CITGO Petroleum Corporation determined, and what implications does it have for current and future benefits? The viability of the Retirement Plan is heavily influenced by its funding status, impacting all participants. Employees should stay informed about what underpins this status and how it may affect their own long-term retirement planning.

Plan Funding Status: The funding status of the Retirement Plan is essential, as it affects the availability of lump-sum payments and may influence future benefits. Employees should monitor the Plan’s funding status to understand how it impacts their options and the security of their retirement benefits(CITGO_Petroleum_Corpora…).

How can employees of CITGO Petroleum Corporation obtain further information about their retirement benefits, and what specific resources are available to assist them? Employees seeking additional guidance must know the channels available for inquiries. By reaching out to the Benefits HelpLine, employees can access crucial information that aids in managing their retirement planning effectively. For more information, employees can contact the Benefits HelpLine at CITGO Petroluem Corporation by emailing Benefits@CITGO.comã€4:18â€ sourceã€‘.

Accessing Further Information: Employees can obtain further details on their retirement benefits by contacting the Benefits HelpLine or the Plan Administrator. These resources provide necessary guidance on managing retirement benefits and addressing any issues or questions that arise(CITGO_Petroleum_Corpora…).