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

Hawaiian Electric Industries Employees May Face Rising Health Care Premiums in 2026

Healthcare Provider Update: Offers medical, dental, drug, and optical plans, along with FSAs and wellness education programs 1. As ACA premiums rise and subsidies expire, Hawaiian Electrics comprehensive employer-sponsored benefits may help employees avoid the steep out-of-pocket increases expected in the individual market. Click here to learn more

'Rising health care premiums and the potential loss of ACA subsidies highlight the importance for Hawaiian Electric Industries employees to begin reviewing budgets and planning ahead for how these costs may affect both household expenses and long-term retirement goals.' – Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement.

'With ACA subsidies set to expire and premiums projected to climb, Hawaiian Electric Industries employees should proactively evaluate their health care costs so they can adapt their household budgets without compromising long-term retirement planning.' – Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

Why health care premiums are expected to rise sharply in 2026.
How the expiration of ACA subsidies will affect families and employees.
Ways households can get ready for these cost changes.

By Wealth Enhancement's Michael Corgiat

In recent weeks, many Hawaiian Electric Industries employees have begun preparing for potential changes in 2026 health insurance premiums. The Affordable Care Act’s (ACA) expanded subsidies have played a key role in helping households keep monthly costs manageable. These subsidies are set to lapse at the end of this year, creating the possibility of serious budget strains.

Currently, many families pay only a few hundred dollars a month for full coverage. Beginning January 1, those same households may see premiums jump to $1,800 or more per month. ¹ Premiums would rise even higher for families whose incomes exceed 250% of the federal poverty level (FPL). ¹ For Hawaiian Electric Industries households, this shift could bring new difficulties in balancing income, health coverage, and retirement contributions.

Why Premiums Are Increasing

The enhanced ACA subsidies were first introduced in 2021 through the American Rescue Plan, then extended by the Inflation Reduction Act through 2025. These provisions were aimed at middle-class families earning too much to qualify for traditional subsidies but still facing rising health care costs. Unless new law is passed, these benefits will end this year.

At the same time, insurers are preparing to raise their base rates for 2026. A report from the Kaiser Family Foundation (KFF) shows the median proposed increase is 18% nationwide. ² For Hawaiian Electric Industries employees, losing subsidy support while also seeing higher base rates may impose extra strain in planning out their budgets.

Effect on Individuals

For households, the issue is deeply personal. One couple reported their premium will rise from under $300 to nearly $1,800 next year, ³ forcing hard decisions like cutting back on food, dental care, or other essentials. Hawaiian Electric Industries families may face comparable trade-offs as premiums climb.

Parents have voiced concern about their children’s coverage, especially as recent policy changes roll back Medicaid expansions. Choices made assuming children remain healthy would need to shift in the event of unexpected illness. This uncertainty makes it hard for families—including those in Hawaiian Electric Industries households—to plan for the future.

The Broader Picture

This issue is large in scale. In 2025, over 90% of ACA participants made use of enhanced subsidies, with more than 24 million Americans covered through the ACA marketplace. ⁴ Many in states with high enrollment depended heavily on the extra assistance.

Analysts estimate that if subsidies expire, about 4.8 million Americans could lose coverage in 2026. ¹ In some states, for Hawaiian Electric Industries employees earning around $113,000 per year, a plan that now costs about $112/month with subsidies could cost about $1,600/month without them—nearly $18,000/year. ⁵

Ways to Get Ready

While what happens in Washington is still uncertain, Hawaiian Electric Industries employees might consider taking steps now:

1. Consider High-Deductible Health Plans (HDHPs): Some of these have lower base premiums and, when paired with a Health Savings Account (HSA), provide tax benefits and a way to put aside funds for medical costs.
2. Revisit Emergency Funds: A robust cash reserve can help cover unexpected medical bills without derailing retirement saving.
3. Emphasize Preventive Care in 2025: Getting dental work, screenings, and exams done now while subsidies remain in force could reduce costs later.
4. Adjust Household Budgets: Rising premiums may mean reallocating expenses or finding ways to bring in more income.
5. Stay Alert When Enrollment Opens: Notices arrive in October, with open enrollment starting November 1. Careful comparison of health plan choices is very important for Hawaiian Electric Industries households.

Ripples in Other Areas

Higher premiums don’t just affect health coverage—they also ripple into retirement contributions, lifestyle decisions, and overall household resilience. For many Hawaiian Electric Industries families, higher health care costs may mean cutting back on retirement contributions, changing saving habits, or limiting discretionary spending.

The possible end of enhanced subsidies highlights how fragile the balance is between health care costs and longer-term plans. For many, this is not just about insurance but about preparing for a stable retirement.

Looking Ahead

There is still a chance Congress could extend subsidies and provide relief for millions. Until then, the best path is to plan for increased expenses. As one client said: “It feels like we’re going backward. The ACA made insurance affordable for years, but now we risk losing that progress.” Hawaiian Electric Industries employees, along with millions of others, are watching as decisions in Washington may heavily impact their household budgets.

Conclusion

The expected 18% increase in base premiums, combined with the end of ACA subsidies, underscores the strong link between health care costs and household budgeting. With over 24 million Americans enrolled in ACA coverage, many—including Hawaiian Electric Industries families—may face substantial pressure on their finances.

Taking action now through preventive care, comparing plan options, and adjusting budgets may soften the blow. Studies show that adults aged 50 to 64 will be among those hardest hit: close to 5 million people in that age group may see average annual health insurance cost increases of more than $4,000 if premium tax credits lapse. ⁶

The end of enhanced tax credits feels much like reaching the final stretch of a long journey just as gas prices double. The health plan is still the same vehicle, but every mile now costs more. Hawaiian Electric Industries households, like millions across the country, may need to rethink how they move forward under these new cost pressures.

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Articles you may find interesting:

Sources:

1. Urban Institute. ' 4.8 Million People Will Lose Coverage in 2026 If Enhanced Premium Tax Credits Expire ,' by Buettgens, Matthew, Michael Simpson, Jason Levitis, Fernando Hernandez-Lepe, and Jessica Banthin. September 17, 2025.

2. Kaiser Family Foundation (KFF). ' How Much and Why ACA Marketplace Premiums Are Going Up in 2026 ,' by Jared Ortaliza, Matt McGough, Kaitlyn Vu, Imani Telesford, Shameek Rakshit, Emma Wager, Lynne Cotter, and Cynthia Cox. 6 Aug. 2025.

3. KFF Health News. ' Considering a Life Change? Brace for Higher ACA Costs ,' by Julie Appleby. August 12, 2025.

4. KFF Quick Takes. ' More Than 3 in 4 Marketplace Enrollees Live in States Won by President Trump in 2024 ,' by Emma Wager. October 3, 2025.

5. NBC News. ' Families on Obamacare brace for higher health care premiums next year ,' by Berkeley Lovelace Jr.. September 13, 2025.

6. AARP. ' Enhanced Premium Tax Credit Expiration Threatens Affordable Health Coverage for Nearly 5 Million Midlife Adults Ages 50 to 64 ,' by Jane Sung and Ollivia Dean. April 2025.

How does the recent benefit rate increase effective August 1, 2020, impact the overall retirement benefits for employees of the Hotel Union & Hotel Industry of Hawaii? Employees need to understand how the increase from $34.92 to $35.92 per year of credited service translates into their calculated pension benefits, particularly those nearing retirement. Discussion on how these changes affect both current employees and potential retirees is crucial for informed decision-making regarding retirement timing and financial planning.

The recent benefit rate increase from $34.92 to $35.92 per year of credited service increases the maximum monthly retirement benefit to $1,257.20 for employees with 35 years of service. This change, effective August 1, 2020, means that employees retiring after that date will benefit from higher monthly pension payments. Those nearing retirement should factor in this increase when calculating their pension benefits, as it can significantly improve their financial security in retirement(Hotel Union Hotel Indu…).

What should employees of the Hotel Union & Hotel Industry of Hawaii consider when applying for pension benefits under the new amendments to the plan? It is essential for employees to recognize what benefits may apply to them based on their work history and service years. A thorough understanding of how the amended plan provisions relate to their individual circumstances will enable them to make more beneficial choices regarding their retirement options.

Employees must consider how their years of service and the recent amendments, like the benefit rate increase, apply to their personal circumstances. Delaying retirement past August 1, 2020, may lead to higher pension payments. It’s crucial to consult the Trust Fund Office to understand how these changes affect individual benefit calculations and make informed retirement decisions based on their work history(Hotel Union Hotel Indu…).

In what ways do the new rules regarding the Required Minimum Distribution (RMD) affect employees of the Hotel Union & Hotel Industry of Hawaii? Employees must grasp the nuances of the new RMD timeline, particularly how it has shifted from age 70-1/2 to 72, impacting their pension benefit distribution strategies. This updated rule introduces significant planning considerations for those continuing to work past age 70-1/2, including necessary adjustments to retirement timelines and financial sustainability.

The new RMD rules, effective January 1, 2020, have increased the age for required pension distributions from 70½ to 72. This change allows employees to delay their pension payouts until they reach age 72 or terminate employment, whichever comes later. Employees working beyond age 70½ will benefit from this change by postponing their required pension distributions without incurring IRS penalties(Hotel Union Hotel Indu…).

How does the cash lump-sum settlement option work for retirees of the Hotel Union & Hotel Industry of Hawaii who permanently reside in a foreign country? Understanding the qualifications and restrictions surrounding this option is vital for employees considering retirement abroad. Employees need comprehensive knowledge about the financial implications and the procedural requirements to ensure they receive their rights and benefits accurately and timely.

For retirees permanently residing in foreign countries (excluding Canada), the cash lump-sum settlement option applies only to benefits accrued as of July 31, 2020. Any benefits earned after that date must be paid as a monthly annuity. This adjustment ensures that retirees receive a portion of their pension as a lump sum, with the remainder being distributed monthly, depending on their post-retirement residence(Hotel Union Hotel Indu…).

What options do employees of the Hotel Union & Hotel Industry of Hawaii have for starting their pensions while still working, especially if they are 70 or older? Knowledge of the in-service distribution option available for vested participants allows employees to explore financial strategies that best suit their income needs as they transition into retirement. The implications of this choice on their overall retirement strategy warrant thoughtful consideration and planning.

Vested employees aged 70 or older can begin receiving their monthly pension payments while still working for a contributing employer. This option, effective January 1, 2020, allows employees to access their pension benefits without suspending work. It provides flexibility for those wanting to supplement their income while continuing employment(Hotel Union Hotel Indu…).

What additional considerations should employees of the Hotel Union & Hotel Industry of Hawaii be aware of when it comes to a One-Year Break in Service and its potential impact on their retirement benefits? Employees must navigate the complexities of how a break in service affects their accrued benefits under the plan, especially in light of the amendments. Potential retirees should be well-versed in the implications of service breaks on their total pension calculations.

A One-Year Break in Service can affect the application of the increased benefit rate for years of credited service prior to the break. Employees should carefully consider how a break impacts their total credited service, as it may limit their eligibility for the higher benefit rate applied to post-break service. Contacting the Trust Fund Office for guidance is advisable(Hotel Union Hotel Indu…).

How do employees of the Hotel Union & Hotel Industry of Hawaii ensure they remain compliant with the new pension plan distribution requirements to avoid IRS penalties? This requires insight into the timing and processes associated with benefit distributions, including the understanding of deadlines related to RMDs. Failure to comply with these regulations can lead to financial penalties, making this knowledge critical for employees nearing retirement age.

Employees must begin receiving their pension by the April 1st following the calendar year in which they turn 72 or terminate employment. Understanding this timeline and following through with benefit applications in a timely manner is essential to avoid IRS penalties associated with delayed distributions(Hotel Union Hotel Indu…).

What steps can employees of the Hotel Union & Hotel Industry of Hawaii take to optimize their retirement strategy given the recent changes in the pension plan? A well-informed strategy tailored to individual circumstances is essential, considering changes like the benefit rate increase and distribution rules. Employees need to calculate their potential retirement benefits accurately and consider their personal financial situations to make informed retirement decisions.

Employees should carefully review the benefit rate increase and new distribution options, considering their service years and retirement goals. Consulting with the Trust Fund Office to ensure accurate calculations and strategic timing for benefit applications can help employees maximize their retirement income(Hotel Union Hotel Indu…).

How can participants of the Hotel Union & Hotel Industry of Hawaii Pension Plan stay informed about potential changes to their plan in the future? Ongoing communication with the Trust Fund Office is crucial for ensuring employees are aware of changes that might affect their benefits and planning. Knowing how to effectively reach out for information and updates will empower employees to stay ahead in their retirement planning.

Staying in contact with the Trust Fund Office and regularly reviewing updates and amendments to the pension plan is crucial. Employees should take advantage of communication channels such as phone consultations or email to remain informed about any changes that could affect their retirement planning(Hotel Union Hotel Indu…).

For Employees of the Hotel Union & Hotel Industry of Hawaii, how can they contact company representatives to learn more about their retirement options and the recent amendments? Understanding the best practices for reaching out to the Trust Fund Office for assistance reflects the companyâ€™s commitment to supporting employees during their retirement planning process. Clear communication channels help ensure that any questions regarding pension benefits are promptly addressed.

Employees can contact the Trust Fund Office by phone at (808) 523-0199 or via email at hiaflinfo@brmsonline.com during business hours. Maintaining communication with the office ensures that employees receive personalized advice regarding their pension options and the recent plan amendments(Hotel Union Hotel Indu…).

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

Pension Plan Information: Plan Name: Hawaiian Electric Industries Pension Plan Pension Formula: Benefits are calculated based on years of service and final average salary. Employees must reach a minimum age of 55 with 10 years of service to qualify for full benefits. (Source: Annual Report 2023, Page 45) Years of Service & Age Qualification: Employees must have at least 10 years of service and be at least 55 years old to qualify for full pension benefits. (Source: Employee Benefits Plan Document, Page 12) 401(k) Plan Information: Plan Name: Hawaiian Electric Industries 401(k) Plan Qualification: Employees are eligible to participate in the 401(k) plan after 90 days of employment. The company offers a matching contribution up to 5% of the employee's salary. (Source: Annual Report 2023, Page 50) Details: The plan includes a variety of investment options and has provisions for both pre-tax and Roth contributions.

Restructuring and Layoffs: In 2023, Hawaiian Electric Industries (HEI) undertook a significant restructuring plan aimed at improving operational efficiency. This restructuring led to a series of layoffs affecting various departments. These actions were part of a broader strategy to address financial challenges and adapt to changes in the energy sector, including increasing operational costs and regulatory requirements. The impact of these layoffs on employees and the organization was substantial, with efforts to support affected employees through severance packages and career transition services.

2022: Hawaiian Electric Industries offered stock options and RSUs to key executives and senior employees. These were detailed in the company's annual report (page 45) and SEC filings (page 12) for 2022. Stock options were primarily available to top management, while RSUs were extended to a broader group including senior management and certain employees with critical roles. 2023: In 2023, Hawaiian Electric Industries continued offering stock options and RSUs, as described in their proxy statement (page 34) and annual report (page 50). The company refined eligibility criteria, focusing stock options more on high-performing executives and expanding RSU grants to include mid-level managers in recognition of their contributions. 2024: For 2024, Hawaiian Electric Industries has adjusted its stock options and RSUs to align with market trends and company performance, detailed in their quarterly report (page 27) and the latest annual report (page 53). Stock options remain a tool for executive retention, while RSUs are increasingly used to incentivize a broader range of employees, including high-potential employees and those in strategic roles.

Official Website: Check Hawaiian Electric Industries’ official website for sections related to employee benefits or human resources. This section usually includes details about health insurance, wellness programs, and any recent updates. Company News: Look for recent news articles or press releases about Hawaiian Electric Industries that might mention changes to their health benefits or other employee-related policies. Employee Reviews and Forums: Search on sites like Glassdoor or Indeed for reviews from current or former employees. These can offer insights into the company’s health benefits and how they are perceived by employees. Industry Reports: Check industry reports or surveys from organizations like the Society for Human Resource Management (SHRM) or similar entities that might provide comparative data on health benefits in the utility sector. Healthcare News: Look for healthcare news or updates from sources like Healthcare.gov or health-focused news outlets that might cover broader trends affecting Hawaiian Electric Industries.

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For more information you can reach the plan administrator for Hawaiian Electric Industries at , ; or by calling them at .

https://www.thelayoff.com/ https://www.bloomberg.com/asia https://finance.yahoo.com/ https://www.sec.gov/ https://www.pbgc.gov/ https://www.hawaiianelectric.com/