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

Southwest Gas Holdings Employees Could Face Triple Impact from 2026 Health Insurance Price Increases

Healthcare Provider Update: Healthcare Provider for Southwest Gas Holdings Southwest Gas Holdings provides healthcare benefits through a variety of insurers, primarily utilizing Aetna for their healthcare plans. This partnership enables employees to access a broad network of healthcare services. Expected Healthcare Cost Increases in 2026 As we approach 2026, healthcare costs are anticipated to soar, significantly impacting those affiliated with Southwest Gas Holdings. This expected surge stems from factors such as the expiration of enhanced federal subsidies for Affordable Care Act (ACA) plans, which could lead to a staggering increase of over 75% in out-of-pocket premiums for many enrollees. Moreover, aggressive rate hikes from major insurers, combined with rising medical costs, suggest that employees and retirees may face a challenging financial landscape in the coming year. Proactive management of health benefits and planning will be crucial for individuals navigating these increasing costs. Click here to learn more

'Southwest Gas Holdings 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.

'Southwest Gas Holdings 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. Southwest Gas Holdings 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 Southwest Gas Holdings 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. Southwest Gas Holdings 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 Southwest Gas Holdings 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 the Southwest Carpenters Pension Plan accommodate changes in benefits for employees who have been affected by the COVID-19 pandemic, and what specific provisions have been implemented to ensure continuity of pension credit during such interruptions? Employees of the Southwest Carpenters Pension Plan are particularly encouraged to review how these provisions may impact their retirement plans and benefits, especially given the unprecedented circumstances of the pandemic.

The Southwest Carpenters Pension Plan accommodated changes due to COVID-19 by extending various deadlines for participants, such as the 12-month deadline to apply for pension credit for periods of disability, and other deadlines regarding claims and appeals. These extensions were applied from March 1, 2020, to a period of up to one year after the original deadline or 60 days after the end of the COVID-19 national emergency, ensuring continuity of pension credit during the pandemic interruptions(Southwest Carpenters Pe…).

What enhancements to pension benefit calculations have been introduced for the years following January 1, 2021, under the Southwest Carpenters Pension Plan, and how do these changes affect participants working more than 1,800 hours? This question emphasizes the implications of increased benefit accrual rates and the actual processes employees must follow to calculate their pensions effectively.

Enhancements to pension benefit calculations effective January 1, 2021, under the Southwest Carpenters Pension Plan include an increase in the monthly benefit accrual rate for participants working 1,800 hours or more. The rate increased from $100 to $200, and for those working more than 1,800 hours, a maximum benefit accrual rate of $244.44 was introduced(Southwest Carpenters Pe…).

In the context of the Southwest Carpenters Pension Plan, could you explain the eligibility criteria for receiving a Service Pension and how employees can accumulate the necessary Pension Credits more quickly? This consideration is vital for members who wish to understand the retirement options available to them and the strategies they might employ in their careers to maximize their benefits under the Southwest Carpenters Pension Plan.

Employees of the Southwest Carpenters Pension Plan are eligible for a Service Pension after earning 30 years of Pension Credit. Additional Service Pension Eligibility Credit was introduced, allowing employees working over 1,800 hours annually to accumulate credits more quickly, up to a maximum of 2,200 hours(Southwest Carpenters Pe…).

How do temporary disability benefits interact with the accumulation of Pension Credits within the Southwest Carpenters Pension Plan? Specifically, employees may have questions about how their working history and service time might be affected should they take leave for health-related reasons, highlighting the intricate balance between pay and benefits during challenging times.

Temporary disability benefits under the Southwest Carpenters Pension Plan allow participants to accumulate Pension Credits during non-working periods if they are on short-term disability or receiving workers' compensation. Pension Credits can be granted for up to 1,200 hours annually, depending on the nature of the disability and employment history(Southwest Carpenters Pe…).

What are the implications of the revised definitions under the Required Beginning Date as specified by the Southwest Carpenters Pension Plan, particularly in compliance with the SECURE Act (Setting Every Community Up for Retirement Enhancement Act)? Employees should understand how these legislative changes affect their retirement strategies, especially in light of penalties for failing to comply with mandatory commencement dates.

The Required Beginning Date for the Southwest Carpenters Pension Plan was revised to comply with the SECURE Act. Participants born on or after July 1, 1949, must begin receiving benefits by April 1 of the calendar year following the year they turn 72. Failure to comply with this could result in a 50% excise tax(Southwest Carpenters Pe…).

How can employees of the Southwest Carpenters Pension Plan navigate the process for applying for pension credit during periods of Temporary Disability, and what specific documentation is required? This inquiry encourages a deeper understanding of protocol surrounding disability applications and the associated benefits that participants are entitled to under the Plan.

Employees applying for pension credit during periods of Temporary Disability must submit a written application within one year of the onset of the disability, and provide documentation such as state-approved short-term disability certification or workers' compensation benefits(Southwest Carpenters Pe…).

What are the implications of the retroactive increases to the Southwest Carpenters Pension Plan benefits aimed at participants who accrued credit during the years 2011 to 2020, and how can affected employees determine their eligibility for said increases? Employees often seek clarification on how historical contributions can manifest in current benefits.

Retroactive increases to the Southwest Carpenters Pension Plan benefits for the years 2011 to 2020 apply to participants who worked at least 1,000 hours in 2020 or under specific collective bargaining agreements. A 50% increase in benefit accrual rates was applied to these years, and eligible employees can determine their eligibility based on their hours worked(Southwest Carpenters Pe…).

What role does the Southwest Carpenters Administrative Office play in assisting employees who have questions regarding modifiability in their pension plans, and what are the best methods for contacting them for assistance? This question highlights the importance of communication within the organization concerning employee inquiries and issue resolution.

The Southwest Carpenters Administrative Office assists employees with questions regarding modifications to their pension plans. Participants can contact them at (213) 386-8590 or (800) 293-1370 for personalized assistance(Southwest Carpenters Pe…).

Can you detail the factors influencing the Benefit Accrual Rate for participants of the Southwest Carpenters Pension Plan for the calendar years after 2021, and how might employees calculate their expected pension benefits? Participants will want to understand the nuances of how their benefits are computed to make informed decisions regarding their retirement planning.

The Benefit Accrual Rate for participants of the Southwest Carpenters Pension Plan after 2021 increased to $200 for 1,800 hours worked, with higher accrual rates for additional hours. Employees can calculate their benefits by multiplying their benefit accrual rate by the applicable benefit factor(Southwest Carpenters Pe…).

In the event of legal actions regarding benefits under ERISA against the Southwest Carpenters Pension Plan, what venue restrictions apply, and what does this mean for participants seeking resolution in disputes? Employees need to be informed of the legal frameworks governing their benefits and understand their rights and the procedures that affect their claims within the Southwest Carpenters Pension Plan.

Legal actions regarding benefits under ERISA against the Southwest Carpenters Pension Plan must be filed in Federal District Court in Los Angeles County, California. This venue restriction defines the jurisdiction where participants must file claims(Southwest Carpenters Pe…).