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

Retiring Early from Parker-Hannifin? Major Increases to 2026 ACA Premiums Projected in Several States

Healthcare Provider Update: Healthcare Provider for Parker-Hannifin Parker-Hannifin, a leading global manufacturer of motion and control technologies, provides employee healthcare coverage primarily through major insurance networks such as UnitedHealthcare and Anthem. These providers are known for their extensive networks and resources, allowing employees of Parker-Hannifin to access necessary healthcare services efficiently. Potential Healthcare Cost Increases in 2026 As the healthcare landscape shifts, Parker-Hannifin and its employees may face significant healthcare cost increases in 2026. With anticipated record hikes in Affordable Care Act (ACA) premiums, certain states could see upsurges exceeding 60%, driven by a mix of higher medical costs and the potential expiration of enhanced federal premium subsidies. The Kaiser Family Foundation warns that without congressional action, approximately 92% of policyholders could experience over 75% increases in out-of-pocket premiums, which could strain the financial resources of many employees already navigating rising living costs. Click here to learn more

'With 2026 ACA premiums set to rise, Parker-Hannifin 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, Parker-Hannifin 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 Parker-Hannifin 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.

How can employees of Parker-Hannifin Corporation effectively calculate their pension estimates, and what factors should they consider when determining their expected retirement benefits from the Plan? This question aims to explore the details behind Final Average Monthly Compensation, vesting service, and the impact of different retirement ages on the monthly benefit calculations.

Employees can estimate their pension benefits using a compensation-based formula. They should consider factors such as Final Average Monthly Compensation (based on their highest five consecutive years of earnings), years of benefit service, and the Social Security Covered Compensation. Employees can use the pension estimation tools available at www.YourParkerBenefits.com to calculate their retirement benefits considering different retirement ages(Parker-Hannifin_Corpora…).

What are the eligibility requirements for employees of Parker-Hannifin Corporation to participate in the retirement benefits Plan, and how does the completion of vesting service affect access to defined benefits? This inquiry will delve into the specifics of one-year vesting service requirements, definitions of full-time versus part-time status, and any exceptions that may apply.

To be eligible for the retirement plan, employees must complete one year of vesting service. Vesting service counts employment periods with Parker and includes specific leaves of absence. Full-time, part-time, and temporary employees are eligible. Exceptions exist, such as for co-operative employees, who do not become plan participants(Parker-Hannifin_Corpora…).

In what ways does Parker-Hannifin Corporationâ€™s retirement plan integrate with Social Security benefits, and how might this impact employees' overall retirement income planning? This question should encourage discussion on how both sources of income can be strategically coordinated for optimal financial stability in retirement.

Pension benefits under the plan are paid in addition to Social Security. The integration involves calculating benefits based on both Final Average Monthly Compensation and Social Security Covered Compensation. This coordination ensures that employees have a combined source of income during retirement(Parker-Hannifin_Corpora…)(Parker-Hannifin_Corpora…).

What options do employees of Parker-Hannifin Corporation have for electing different forms of retirement benefit payments, and how should they weigh the pros and cons of each option? This question will provide insight into the various payment methods, including Joint and Survivor Options versus Life Only benefits, and factors that influence these decisions.

Employees can choose between multiple forms of benefit payments, including a Life Only benefit or Joint and Survivor Options (50%, 75%, or 100%). The decision on which option to choose should depend on factors like marital status, desired survivor benefits, and potential reduction in monthly payments for electing survivor options(Parker-Hannifin_Corpora…)(Parker-Hannifin_Corpora…).

How does the retirement benefits Plan at Parker-Hannifin Corporation ensure that employees are informed about any potential amendments or changes that might affect their retirement benefits? This question focuses on the communication strategies employed by the company to relay critical information to employees regarding plan modifications and participant rights.

Parker-Hannifin uses formal communication methods to ensure employees are informed about plan changes, such as amendments or terminations. This includes notifications through the Benefits Service Center and relevant updates provided on the Parker Benefits website(Parker-Hannifin_Corpora…)(Parker-Hannifin_Corpora…).

What implications does a Qualified Domestic Relations Order (QDRO) have for employees of Parker-Hannifin Corporation, and how can participants ensure compliance with legal requirements regarding benefits division in divorce situations? This question seeks an understanding of the legal framework surrounding QDROs and the steps employees should take to protect their benefits.

A QDRO allows for the division of pension benefits in cases of divorce or legal separation. Parker-Hannifin employees can work with QDRO Consultants to ensure compliance with legal requirements. The order will direct the plan to distribute a portion of the employee’s pension to an alternate payee, such as a spouse or dependent(Parker-Hannifin_Corpora…)(Parker-Hannifin_Corpora…).

How should employees of Parker-Hannifin Corporation approach the retirement process if they are currently receiving Long Term Disability benefits, and what adjustments might they need to consider during this transition? This question aims to clarify how the overlap of disability and retirement benefits is managed under the Plan.

Employees receiving Long-Term Disability (LTD) benefits will have their LTD payments reduced by the amount of any pension benefits they start receiving. Employees should coordinate their retirement process with the Benefits Service Center to ensure a smooth transition from LTD to retirement benefits(Parker-Hannifin_Corpora…).

What options for early retirement benefits are available to employees of Parker-Hannifin Corporation, and what critical factors should they consider before deciding to retire before the normal retirement age? This question will highlight the age and service requirements and the impact of early retirement on monthly benefit amounts.

Employees can retire early starting at age 55 with at least 10 years of vesting service. However, benefits are reduced for each month before the normal retirement age of 65, at a rate of 0.5% per month. Early retirement also includes options like Temporary Pension Supplement to cover medical expenses(Parker-Hannifin_Corpora…)(Parker-Hannifin_Corpora…).

What steps should Parker-Hannifin Corporation employees take to ensure they receive accurate and timely benefit payments upon retirement, including any necessary applications or paperwork? This question covers the procedural aspects of commencing benefit distributions and highlights the importance of adhering to federal regulations regarding distributions.

Employees must apply for retirement benefits through the Benefits Service Center by completing necessary forms, including proof of age and marital status. Benefits generally begin the month following the retirement date or the completion of the application, and federal regulations require benefits to start no later than April 1 following age 70½(Parker-Hannifin_Corpora…)(Parker-Hannifin_Corpora…).

How can employees of Parker-Hannifin Corporation contact the Total Rewards Department to get personalized assistance regarding their retirement benefits and related inquiries? This question focuses on the specific contact details and resources available for employees seeking further clarification on their retirement planning and benefits management.

For personalized assistance, employees can contact the Benefits Service Center at 1-800-992-5564. This service provides answers to questions about retirement benefits, plan participation, and pension estimates(Parker-Hannifin_Corpora…).