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

Eastman Chemical Retirees Face ACA Premium Shock—Here’s How Others Are Responding

Healthcare Provider Update: Healthcare Provider for Eastman Chemical Eastman Chemical typically collaborates with major health insurance providers, such as Aetna and UnitedHealthcare, to offer comprehensive health insurance plans for its employees. These partnerships usually provide diverse medical, dental, and vision coverage tailored to meet the needs of their workforce. Potential Healthcare Cost Increases in 2026 In 2026, Eastman Chemical employees may face significant increases in healthcare costs driven by a broader trend affecting the Affordable Care Act (ACA) marketplace. With anticipated rate hikes exceeding 60% in some states, and the expiration of enhanced federal subsidies, many individuals could see their out-of-pocket premiums rise dramatically-potentially by over 75%. Factors such as rising medical costs, increased spending due to labor shortages, and pharmaceutical price hikes are compounding the situation, urging organizations like Eastman Chemical to reevaluate their healthcare strategies to mitigate expenses and ensure accessibility for their employees. Click here to learn more

'Eastman Chemical employees approaching retirement should recognize that proactive income and health care planning can make the difference between preserving subsidy eligibility and facing sharply higher ACA premiums.' – Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement.

'Eastman Chemical employees planning their retirement should consider how income levels influence ACA subsidies, as even small adjustments in taxable withdrawals can affect future health care affordability.' – Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

How the expiration of enhanced ACA subsidies after 2025 could impact health care costs for retirees and early retirees.
Real-life case studies illustrating how different individuals are adjusting to rising ACA premiums.
Practical steps Eastman Chemical professionals can take before enrolling in 2026 Marketplace plans.

by Brent Wolf, CFP®, Wealth Enhancement

As open enrollment for 2026 Marketplace plans begins, many households are seeing dramatic shifts in their renewal letters. Rising base premiums and the possible end of enhanced subsidies after 2025 could mean significantly higher out-of-pocket costs for anyone purchasing coverage through the Affordable Care Act (ACA) exchange.

The Kaiser Family Foundation (KFF) estimates that if Congress does not extend enhanced premium tax credits, average net premium payments could more than double in 2026. ¹

“It feels like a second mortgage to pay this premium.”

Profile: A couple in their early 60s who retired a few years before becoming Medicare-eligible.

What changed: Their ACA premium had been manageable due to increased subsidies. Their renewal now indicates a rise of about $1,000 to $1,200 monthly if enhanced credits expire.

Decision pressure: They faced hard choices—drawing more taxable income from IRAs, going without coverage, or returning to the workforce for employer-based insurance.

Our response: We reworked their income plan to align with the ACA’s income-based subsidy structure. By controlling their Modified Adjusted Gross Income (MAGI) through smaller IRA withdrawals, use of cash reserves, and partial Roth conversions, we kept them eligible for key subsidies. Comparing a Bronze high-deductible plan with a health savings account (HSA) to a Silver plan revealed the Silver plan—thanks to cost-sharing reductions—was more economical given their expected medical treatments.

“I can’t risk losing coverage while battling an illness.”

Profile: A single client in her early 60s undergoing ongoing medical treatment.

What changed: Without enhanced subsidies, her premiums nearly tripled.

Decision pressure: Balancing affordability with the need to keep her care team and prescriptions consistent.

Our response: We prioritized staying with her provider network and controlling her out-of-pocket costs. A dedicated “medical reserve” fund—equal to one year’s maximum out-of-pocket limit—gave her a cushion without liquidating investments during market declines. We also worked with her physicians to identify lower-cost prescriptions through her plan’s formulary.

“The new premiums are hurting our business margins.”

Profile: A self-employed couple—one partner managing asthma and the other a cardiac rhythm condition.

What changed: Without subsidies, their net premiums are expected to rise sharply.

Decision pressure: Continue paying high premiums, choose a plan with a very high deductible, or seek W-2 employment for benefits.

Our response: We compared total annual costs for a Silver plan versus a Bronze option, factoring in frequent specialist visits and prescriptions. Once total medical costs were considered, the Silver plan proved more cost-effective. We also aligned their life and disability coverage and tailored their tax approach to reflect potential changes in premium tax credits.

“I’m young and healthy—do I even need full coverage?”

Profile: An independent contractor in their 20s with minimal expected medical use.

What changed: Premiums for mid- and high-tier plans nearly quadrupled.

Decision pressure: Choosing between a high-deductible Bronze HSA plan and catastrophic coverage.

Our response: We modeled three options—a Bronze HSA-eligible plan, a mid-tier plan, and catastrophic coverage. The Bronze HSA option offered the best mix of lower premiums and long-term tax benefits. Monthly automated HSA contributions build a future medical fund that can later be used for qualified health care expenses or Medicare premiums (excluding Medigap) after age 65.

Five Steps to Take Before You Enroll

1. Evaluate your total annual cost, not just the premium. Factor in deductibles, copays, and the possibility of reaching your out-of-pocket maximum.

2. Manage your MAGI carefully. ACA subsidies depend on income. Coordinate Roth conversions, capital gains, and IRA withdrawals strategically.

3. Verify your doctor and prescription coverage. Always confirm your plan’s provider network and formulary before enrolling.

4. Maintain a medical reserve fund. Hold six to 12 months of premiums plus a portion of your maximum out-of-pocket in cash or short-term Treasuries.

5. Finalize your plan by December 15. Open Enrollment for 2026 coverage ends on December 15, with plans effective January 1.

If Affordability Is a Concern

Choosing to go without insurance can expose you to serious financial strain in case of illness or accident. Consider the most affordable Bronze plan that still meets ACA minimum coverage requirements. If your income decreases during the year, you may become eligible for Medicaid or CHIP and qualify for a Special Enrollment Period. ²

How The Retirement Group Supports Eastman Chemical Professionals

For Eastman Chemical employees approaching or already in retirement, the intersection of rising health care costs and income planning can be complex. The Retirement Group focuses on helping clients navigate ACA subsidy rules, tax-efficient withdrawal strategies, and health care cost planning during retirement transitions.

To speak with an advisor about aligning your retirement income and health care planning, call (800) 900-5867 today.

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Articles you may find interesting:

Sources:

1. Cox, Cynthia, et al. “ACA Marketplace Premium Payments Would More Than Double on Average Next Year if Enhanced Premium Tax Credits Expire.” Kaiser Family Foundation (KFF) , 2025, pp. n.p., https://www.kff.org/affordable-care-act/aca-marketplace-premium-payments-would-more-than-double-on-average-next-year-if-enhanced-premium-tax-credits-expire/ .
2. Centers for Medicare & Medicaid Services. ' Understanding Special Enrollment Periods. ' June 2025.
Other resources:
1. “When Can You Get Health Insurance? | Dates & Deadlines.” HealthCare.gov , U.S. Centers for Medicare & Medicaid Services, n.d., https://www.healthcare.gov/quick-guide/dates-and-deadlines/ .
2. Publication 969: Health Savings Accounts and Other Tax-Favoured Health Plans. Internal Revenue Service, 2024, pp. 8–9, https://www.irs.gov/pub/irs-pdf/p969.pdf .
3. “Silver vs. Bronze Plan Selection: Cost-Comparison Scenarios.” Centers for Medicare & Medicaid Services (CMS) , 23 Dec. 2024, pp. 1–3, https://www.cms.gov/files/document/silver-vs-bronze-cost-comparison-scenario-resource.pdf .
4. Murphy, Tom. “Expect Health Insurance Prices to Rise Next Year, Brokers Say.” AP News , Associated Press, 24 Aug. 2025, https://apnews.com/article/health-insurance-drug-costs-2026-rates-c4d865ec09c7088ecc6b55dc520f3566 .

What is the Eastman Chemical 401(k) plan?

The Eastman Chemical 401(k) plan is a retirement savings plan that allows employees to save a portion of their salary for retirement on a tax-deferred basis.

How can I enroll in the Eastman Chemical 401(k) plan?

Employees can enroll in the Eastman Chemical 401(k) plan by accessing the benefits portal or contacting the HR department for assistance.

What is the employer match for the Eastman Chemical 401(k) plan?

Eastman Chemical offers a competitive employer match for contributions made to the 401(k) plan, which may vary based on company policy.

Can I change my contribution rate to the Eastman Chemical 401(k) plan?

Yes, employees can change their contribution rate to the Eastman Chemical 401(k) plan at any time through the benefits portal.

What investment options are available in the Eastman Chemical 401(k) plan?

The Eastman Chemical 401(k) plan offers a variety of investment options, including mutual funds and target-date funds, allowing employees to choose based on their risk tolerance.

When can I start withdrawing from my Eastman Chemical 401(k) plan?

Employees can typically start withdrawing from their Eastman Chemical 401(k) plan without penalty at age 59½, but specific rules may apply.

Does Eastman Chemical offer loans against my 401(k) plan?

Yes, Eastman Chemical allows employees to take loans against their 401(k) plan, subject to certain terms and conditions.

What happens to my Eastman Chemical 401(k) plan if I leave the company?

If you leave Eastman Chemical, you can choose to roll over your 401(k) balance to another retirement account, cash it out, or leave it in the plan if you meet certain criteria.

Is there a vesting schedule for the Eastman Chemical 401(k) employer match?

Yes, the Eastman Chemical 401(k) plan has a vesting schedule for employer contributions, meaning you must work for the company for a certain period before you fully own those contributions.

How often can I review my Eastman Chemical 401(k) account?

Employees can review their Eastman Chemical 401(k) account at any time through the benefits portal, which provides up-to-date information on contributions and investment performance.

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

Eastman Chemical Pension Plan Eastman Chemical offers a defined benefit pension plan to eligible employees. The pension formula generally factors in the employee's years of service and final average earnings. According to sources from their official benefits documentation, the pension plan operates with a final average pay formula, ensuring that employees with longer tenure and higher earnings receive larger pension benefits. To qualify for the pension plan, employees need to meet specific age and service requirements, which typically include completing a certain number of years of service and reaching a minimum age of 55 (MyEastmanBenefits). The pension plan also includes provisions for early retirement, with reduced benefits for those retiring before the normal retirement age of 65. Eastman Chemical 401(k) Plan Eastman Chemical's 401(k) plan, known as the "Eastman Chemical 401(k) Savings Plan," includes automatic enrollment at a 7% deferral rate for new participants, with an annual increase of 1% until a maximum deferral rate of 10% is reached. Employees are eligible for a 50% company match on the first 7% of their contributions (MyEastmanBenefits). The plan also offers both traditional pre-tax and Roth 401(k) options, allowing participants to choose how their contributions are taxed. Participants receive a Retirement Savings Contribution (RSC) from Eastman, equivalent to 5% of their eligible earnings, enhancing their savings.

Restructuring and Layoffs: Eastman Chemical announced a restructuring plan in early 2024 aimed at streamlining operations and improving efficiency. The plan involves significant layoffs across various departments to reduce costs amid a challenging economic environment. This restructuring is a response to increased operational costs and fluctuating demand in key markets. It's crucial for stakeholders to stay informed about these changes due to the current economic and investment climate, as well as potential impacts on tax and political landscapes. Benefit Changes: The company has also updated its employee benefits package, including adjustments to health insurance options and retirement plan contributions. These changes are part of a broader strategy to manage costs while still offering competitive benefits to employees. Given the current economic uncertainties and evolving tax regulations, understanding these adjustments is essential for employees to make informed decisions about their benefits and future financial planning.

Eastman Chemical - Stock Options and RSUs (2022) Stock Options: Eastman Chemical (EMN) provided stock options to key executives and senior management. These stock options were designed to align the interests of senior leaders with the company's long-term performance goals. The specific details and terms were outlined in the company's 2022 Proxy Statement, found on page 45. RSUs: In 2022, Eastman Chemical (EMN) awarded Restricted Stock Units (RSUs) to executives and selected employees as part of their long-term incentive program. RSUs vested over a period of three years, contingent on performance metrics and continued employment. Details can be found in the company's 2022 Annual Report on page 32. Eastman Chemical - Stock Options and RSUs (2023) Stock Options: Eastman Chemical (EMN) updated its stock option plan in 2023, offering new grants primarily to senior leadership and key employees. The options were granted with a 10-year expiration period and a vesting schedule based on performance targets. Information is available in the 2023 Proxy Statement, page 48. RSUs: For 2023, Eastman Chemical (EMN) continued to use RSUs as a component of its compensation strategy. RSUs granted were performance-based and required achievement of specific corporate goals. The specifics are detailed in the 2023 Annual Report, page 30. Eastman Chemical - Stock Options and RSUs (2024) Stock Options: In 2024, Eastman Chemical (EMN) revised its stock options program to include broader participation among mid-level managers. The options feature a four-year vesting period and are aimed at enhancing employee retention. The details are in the 2024 Proxy Statement,

Eastman Chemical Official Site: The company provides detailed information on health benefits, including medical, dental, and vision coverage. For 2022, 2023, and 2024, the benefits typically include options for health savings accounts (HSA), flexible spending accounts (FSA), and various health insurance plans. Employee reviews often highlight the company’s health benefits, which include comprehensive medical insurance with various plan options, wellness programs, and employee assistance programs (EAP). Reviews and Q&A sections on Indeed provide insight into employee experiences with Eastman’s health benefits, including specifics about insurance coverage, wellness initiatives, and benefits administration.

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For more information you can reach the plan administrator for Eastman Chemical at 200 S Wilcox Dr Kingsport, TN 37660; or by calling them at (423) 229-2000.

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