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

Frontier Communications Employees Could Face Triple Impact from 2026 Health Insurance Price Increases

Healthcare Provider Update: Healthcare Provider for Frontier Communications Frontier Communications typically partners with large insurance companies for their employee healthcare plans. As of 2025, the primary provider for Frontier Communications is UnitedHealth Group, which offers a variety of health insurance plans catering to the organization's workforce. Potential Healthcare Cost Increases in 2026 In 2026, health insurance premiums are projected to soar, with many states experiencing increases that could exceed 60%. The combination of rising medical costs and the potential expiration of enhanced federal premium subsidies is expected to drastically impact consumers. Specifically, over 22 million individuals enrolled in Affordable Care Act (ACA) marketplace plans may see their out-of-pocket premiums rise by more than 75%. As insurers like UnitedHealthcare and Anthem announce substantial rate hikes, the financial strain could leave many families facing unaffordable coverage options, further complicating access to necessary healthcare services. Click here to learn more

'Frontier Communications employees should recognize that rising health care costs in 2026 highlight the importance of reviewing benefits closely during open enrollment and budgeting carefully for higher out-of-pocket expenses.' – Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement.

'Frontier Communications employees facing the steepest health insurance increases in over a decade can benefit from proactively comparing plan options and aligning coverage with long-term health care needs during enrollment.' – Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

Why group health insurance costs are expected to rise sharply in 2026.
How employers may shift health care expenses to employees through plan changes.
Key steps individuals can take during open enrollment to manage higher costs.

The cost of group health insurance is expected to rise at the fastest pace in 15 years, ¹ creating significant challenges for both companies and their employees. Frontier Communications employees may soon see higher co-payments, larger deductibles, and greater payroll deductions. Employers across the country are also preparing to make structural adjustments to their health plans, which could mean less prescription drug coverage or tighter provider networks. With Baby Boomers working later into their careers and medical costs continuing to rise, these changes reflect a broader transformation in the American health care system.

According to Brent Wolf, CFP of Wealth Enhancement, “the biggest increase in health insurance costs in over ten years is about to hit both employers and employees. This affects almost everyone and is structural and demographic in nature; it is not just about inflation.”

Factors behind rising prices

While cost hikes in employer-sponsored health insurance have generally been modest, forecasts for 2026 point to a sharp rise. Average benefit costs per employee are expected to grow by over 6.5%, the steepest jump since 2010. ¹ This rise is being driven by several key elements:

An aging workforce: Many Baby Boomers are working well into their 60s and 70s. Their growing medical needs—from advanced oncology treatments to cardiac care—place heavy cost pressure on employer health plans.
High-cost claimants: Roughly 20% of employees generate over 80% of health care expenses, ² concentrating costs and making them hard to manage.
Medical inflation: New therapies, industry consolidation, and complex billing practices are fueling rising medical inflation.
Regulatory changes: Recent legislation such as the “One Big Beautiful Bill” adds complexity and unpredictability for employer planning.
Increased utilization and postponed care: Many delayed care during the pandemic. As people return for elective procedures, overall costs have surged.

Wolf observes, “This is a triple whammy. Employers have few options to control costs, medical costs are climbing, and older workers are using more care.”

Employers’ cost management tactics

Nearly 60% of companies are expected to adjust health plan designs in 2026 to help with rising costs ¹ —a much larger share than in prior years. For Frontier Communications employees, these modifications may translate into a higher out-of-pocket load, particularly if companies pursue cost cutting strategies such as:

Increased payroll deductions: Premium contributions may go up about 6% to 7%, ¹ leading to larger deductions from wages.
Higher out-of-pocket costs: Changes to deductibles, copayments, and coinsurance will raise what individuals pay when getting care.
Narrower provider networks: Employers might limit access to certain doctors or prescription medications.
Plan design shifts: A move toward high-deductible health plans is expected, placing more load on employees to make cost-conscious choices.

According to Wolf, “Employers may quietly reduce benefits because they don't want to annoy employees with premium hikes.” The result is the same: higher household costs.

Getting ready for enrollment

As open enrollment season approaches, careful planning will be very important. Wolf suggests a few key actions:

- Track open enrollment dates so you don’t miss your chance to make selections.
- Review all details beyond the monthly premium, including prescription lists, provider networks, and out-of-pocket maximums.
- Match coverage with personal health needs—chronic conditions may justify higher premiums, while healthier people might prefer high-deductible plans.
- Use tax-advantaged accounts like flexible spending account (FSAs) or health savings accounts (HSAs) to help offset costs with pre-tax funds.
- Take advantage of wellness programs that promote preventive care and healthier lifestyles.

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The broader context

The demographic reality of an aging workforce will keep pushing health care costs higher for employers and employees alike. Frontier Communications employees, like others across the workforce, will feel these changes beyond 2026.

Wolf emphasizes, “This is not a one-year story.” The cycle of rising costs will affect employers, employees, and retirees for years to come. Planning ahead, budgeting for cost increases, and making informed enrollment choices will be essential.

In addition, Medicare costs are projected to rise significantly in 2026: the Part B monthly premium is expected to climb 11.6%, from $185 in 2025 to $206.50. ³ Part D premiums are forecast to go up 6%, from $36.78 to $38.99, while deductibles increase to $615. ⁴ The Part B deductible is also set to go up nearly 12%, from $257 to $288. ³

Employer-sponsored plans overall are expected to see employee health benefit costs rise by about 6.5% in 2026, the most rapid climb in 15 years. ¹ For Frontier Communications employees, the combination of higher copays, deductibles, and premiums mirrors the national trend driven by medical inflation, expensive therapies, and regulatory shifts.

An analogy for what lies ahead

Dealing with these changes is much like planning for a road trip where fuel prices suddenly jump, tolls multiply, and detours force you onto costlier routes. The journey still has to happen, but it now demands more foresight, budget planning, and careful choice-making. Employees will need to carefully evaluate their open enrollment options, just as travelers must adapt their maps and decisions to reach their destination under changed conditions.

Sources:

1. Mercer. ' Employers prepare for the highest health benefit cost increase in 15 years ,' by Beth Umland and Sunit Patel. September 3, 2025.

2. Employee Benefit Research Institute (EBRI). Fast Facts: A Small Number of Workers Account for Most Health Costs . 4 Sept. 2025.

3. AARP. ' Medicare Part B Premium Expected to Top $200 a Month in 2026 ,' by Tony Pugh. September 9, 2025.

4. KFF. ' A Current Snapshot of the Medicare Part D Prescription Drug Benefit ,' by Juliette Cubanski. Oct. 7, 2025.

How does Frontier Communications Corporation determine the eligibility and participation criteria for employees in the pension plan? What are the key components that employees should be aware of in terms of service hours and years of service that can impact their pension benefits?

Frontier Communications Corporation determines pension plan eligibility based on employees' transfer from Verizon, crediting prior service under the Verizon Pension Plan to the Frontier Plan. Employees must meet the eligibility and service requirements, including hours of service and years of service, which are integral to calculating accrued benefits. The pension plan specifies that employees' service prior to the transition is recognized for determining their benefits under the Frontier plan(Frontier_Communications…).

In what ways does Frontier Communications Corporation ensure that employees transitioning from Verizon retain their accrued benefits under the new pension plan? Can you elaborate on how prior service will be accounted for under the Frontier Plan and any potential challenges that may arise in this process?

Employees transitioning from Verizon to Frontier retain their accrued benefits, with prior service credited under the Frontier Pension Plan. This is facilitated by a "Mirror Plan," which ensures that benefits under Verizon’s plan are transferred without reduction. Prior service is critical to the calculation of benefits and will continue under the Frontier Plan. However, challenges may arise regarding understanding the precise terms of service credits post-transition(Frontier_Communications…).

How does the merger of the Verizon pension plans with the Frontier Communications Corporation Pension Plan affect employeesâ€™ future benefits? What measures are put in place to ensure that Former Verizon employees receive benefits that are at least as favorable as those they previously had?

The merger of Verizon pension plans into the Frontier Communications Pension Plan guarantees that former Verizon employees receive benefits that are at least as favorable as those they had under the Verizon plan. The benefits accrued under Verizon are preserved, and future benefits are determined similarly, subject to Frontier’s amendments(Frontier_Communications…).

What resources are available for Frontier Communications Corporation employees to access more detailed information regarding their pension plan benefits? How might these resources assist in understanding the changes post-merger with Verizon?

Frontier provides detailed pension information through resources such as the Milliman Benefits Service Center. Employees can access these resources to better understand the impacts of the merger and ensure their benefits remain intact. The Summary Plan Description (SPD) and Summary of Material Modifications (SMM) provide employees with comprehensive updates post-merger(Frontier_Communications…).

Can you explain the process and implications for employees at Frontier Communications Corporation if they decide to appeal a denied pension claim? What steps must they take, and how does the appeals process ensure compliance with ERISA regulations?

If an employee’s pension claim is denied, they may appeal by submitting a written claim to the Plan Administrator, with additional documentation if requested. The appeals process ensures compliance with ERISA regulations, offering employees multiple review stages to reconsider denied claims(Frontier_Communications…).

How does Frontier Communications Corporation communicate updates to its pension plan practices to employees? Are there specific intervals or methods by which changes are shared, and how can employees keep abreast of these changes?

Frontier communicates pension plan updates to employees through various channels, including formal documents like the SMM and SPD. Updates are typically distributed periodically, with critical changes communicated as needed. Employees should regularly check for updates to stay informed(Frontier_Communications…).

In the context of financial planning for retirement, how do past benefits from the Verizon pension plans get integrated into the existing Frontier Communications Corporation pension framework? What advice can be given to employees regarding their financial health as they approach retirement?

Past benefits from the Verizon pension plan are integrated into Frontier’s pension framework through the transfer of assets and liabilities. Employees should review their benefit statements and consult financial planning resources to ensure a smooth transition and optimize their retirement strategy(Frontier_Communications…).

What roles do the Milliman Benefits Service Center and the Claims Review Committee play in supporting the employees of Frontier Communications Corporation regarding their pension claims? How can employees engage with these entities for assistance?

The Milliman Benefits Service Center supports employees with pension inquiries, while the Claims Review Committee handles appeals. Employees can contact Milliman for questions and submit appeals to the Claims Review Committee if disputes arise over benefits(Frontier_Communications…).

As an employee of Frontier Communications Corporation, what should be understood about the standard forms of pension payments available at retirement? How do these options impact the total benefits an employee may receive over time?

Frontier employees should understand the available pension payment options, including annuities and lump-sum distributions. These options affect the total amount received, and employees should consider their long-term financial needs when selecting a payment method(Frontier_Communications…).

How can employees contact Frontier Communications Corporation for more information about their pension plan? What are the best practices for reaching out and ensuring that their inquiries are handled efficiently?

Employees can contact Frontier regarding pension plans through the Milliman Benefits Service Center by phone or via their online portal. It is recommended to prepare inquiries with relevant documentation to ensure efficient handling(Frontier_Communications…).

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

Frontier Communications offers both a pension plan and a 401(k) savings plan for its employees. The Frontier Communications Pension Plan is designed for veteran employees, particularly those in bargaining units, and is structured to provide retirement benefits based on years of service and compensation. Employees must generally have completed five years of service to become vested. The pension formula involves a standard calculation of a fixed amount per year of service. Frontier allows eligible participants to elect a full lump sum if they retire after March 1, 2022, due to the plan’s improved funded status of 91% as of February 2022 (CWA 1298). In addition to the pension, Frontier offers the Frontier Communications 401(k) Savings Plan, which is available to all employees, with specific vesting and matching rules. The company uses Fidelity to manage this plan and offers a match of up to 6% of the employee’s contributions (CWA 1298). Matching contributions are subject to a vesting schedule that requires several years of employment before the company contributions are fully vested. Employees can contribute on a pre-tax or post-tax basis, depending on their financial strategy.

Restructuring and Layoffs: Frontier Communications has undergone significant restructuring efforts, including layoffs as part of its strategy to streamline operations and reduce costs. In recent reports from 2023-2024, the company has been focusing on reducing its workforce to improve efficiency and focus on core business areas. This restructuring is crucial to understand given the current economic climate, where companies are reassessing their operations to stay competitive. The economic environment and evolving market demands are driving such changes, and it’s important for stakeholders to stay informed about these developments. Benefit and Pension Changes: Frontier has also made adjustments to its employee benefits and pension plans. Recent changes include alterations to retirement benefits and 401(k) contributions as part of its broader cost-cutting measures. These changes reflect broader trends in the industry where companies are re-evaluating their benefit structures in response to economic pressures and shifting regulatory environments. Keeping up with these changes is essential for employees and investors alike, given the current tax and political landscape that influences corporate benefit strategies.

Frontier Communications typically offers stock options to executives and senior management. These options grant employees the right to purchase Frontier Communications' stock at a predetermined price within a specified period. The company usually sets performance targets that must be met for options to vest. RSUs: Frontier Communications provides RSUs to various levels of employees, including senior management and other key contributors. RSUs are granted with specific vesting schedules, often based on tenure or performance milestones. The vesting of RSUs is generally linked to continued employment with the company. Specific Information by Year

Frontier Communications Health Benefits 1. Official Company Website: Frontier Communications Careers: Health benefits are listed on their career page, providing information about the types of insurance, eligibility, and plan details. Company Newsroom: Check for any press releases or news related to changes in health benefits or employee healthcare initiatives. 2. Employee Review Websites: Glassdoor: Employee reviews often include information about health benefits and satisfaction with healthcare coverage. Indeed: Look for company reviews and benefits summaries from current or former employees. 3. Benefits Review Websites: Payscale: Provides detailed reports on employee compensation and benefits, including health insurance. Comparably: Offers insights into company benefits, including health insurance plans and employee satisfaction. 4. News Outlets: Business Insider: Check for any articles or news reports related to changes in employee benefits at Frontier Communications. Reuters: Look for any updates or news stories related to employee health benefits. 5. Industry and Financial News: Forbes: Search for any relevant articles discussing health benefits changes or company policies affecting employees. Bloomberg: Look for reports on Frontier Communications’ employee benefits and any associated financial impacts.