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

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

Healthcare Provider Update: GoDaddy provides health insurance coverage to its U.S.-based employees through comprehensive medical, dental, and vision plans. Employees can access preventive care, mental health services, and disability coverage. The company also offers Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs), along with generous employer contributions. Family-friendly benefits include paid parental leave, fertility coverage, and adoption assistance. GoDaddy supports wellness through gym discounts, flu shots, and wellness fairs1. Healthcare costs in the United States are projected to continue rising through 2026, with insurers proposing significant premium increases for Affordable Care Act (ACA) plans. A recent analysis found that ACA insurers are seeking a median premium increase of 15% for 2026, marking the largest hike since 2018. This surge is attributed to factors such as the anticipated expiration of enhanced premium tax credits, rising medical costsincluding expensive medications and increased hospital staysand a shift in the risk pool towards higher-cost enrollees. Without the renewal of enhanced subsidies, out-of-pocket premiums for ACA marketplace enrollees could increase by more than 75% on average Click here to learn more

'GoDaddy 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.

'GoDaddy 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 GoDaddy 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 GoDaddy Professionals

For GoDaddy 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 GoDaddy 401(k) plan?

The GoDaddy 401(k) plan is a retirement savings plan that allows employees to save a portion of their paycheck on a pre-tax or after-tax basis to help prepare for retirement.

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

Employees can enroll in the GoDaddy 401(k) plan through the company's benefits portal during the open enrollment period or after they become eligible.

Does GoDaddy offer a company match for the 401(k) contributions?

Yes, GoDaddy offers a company match for employee contributions to the 401(k) plan, which helps to enhance retirement savings.

What is the eligibility requirement for the GoDaddy 401(k) plan?

Generally, all full-time employees at GoDaddy are eligible to participate in the 401(k) plan after completing a certain period of service, as outlined in the plan documents.

Can I change my contribution percentage to the GoDaddy 401(k) plan at any time?

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

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

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

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

Employees can review their GoDaddy 401(k) account at any time through the online portal, which provides real-time updates on account balances and investment performance.

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

If you leave GoDaddy, you have several options for your 401(k) plan, including rolling it over to another retirement account, cashing it out, or leaving it in the GoDaddy plan if eligible.

Are there any fees associated with the GoDaddy 401(k) plan?

Yes, there may be administrative fees and investment-related fees associated with the GoDaddy 401(k) plan, which are disclosed in the plan documents.

Can I take a loan against my GoDaddy 401(k) plan?

Yes, GoDaddy allows employees to take loans against their 401(k) balance, subject to specific terms and conditions outlined in the plan.

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 Name: GoDaddy does not offer a traditional defined benefit pension plan. Instead, the company provides a 401(k) plan. Years of Service and Age Qualification: Not applicable, as GoDaddy does not have a defined benefit pension plan. Pension Formula: Not applicable. Source Document and Page Number: Information not applicable as GoDaddy does not have a traditional pension plan. 401(k) Plan: 401(k) Plan Name: GoDaddy 401(k) Plan. Qualification Criteria: Employees are eligible to participate in the 401(k) plan after 30 days of employment. Employees must be at least 21 years old to enroll. 401(k) Plan Details: GoDaddy offers a match contribution of up to 4% of an employee's eligible pay. The plan also includes a range of investment options and automatic enrollment.

GoDaddy announced a significant restructuring plan in early 2024. The company revealed that it would be reducing its workforce by approximately 10% to streamline operations and improve efficiency. This decision was influenced by the need to adapt to the shifting economic landscape, including evolving tax policies and investment challenges. Given the current political environment, such restructuring news is crucial for stakeholders as it reflects broader trends in corporate adjustments to economic pressures. In addition to layoffs, GoDaddy has made changes to its employee benefits package. The company has reduced some healthcare benefits and adjusted its 401(k) matching contributions. These changes come in response to rising operational costs and a need to align expenses with revenue. The modification in benefits and retirement plans is significant as it highlights how companies are adjusting their compensation structures amidst fluctuating economic conditions and potential future tax impacts.

GoDaddy provides stock options and RSUs as part of its compensation package. GoDaddy grants these equity incentives to employees based on their role and performance. GoDaddy generally issues these as part of long-term incentive plans to attract and retain talent.

Company Website: GoDaddy’s official site for health benefits and employee resources. Annual Reports: Look into GoDaddy’s annual reports or financial disclosures that might include information on employee benefits. HR or Benefits Sites: Websites like Glassdoor or Indeed for employee reviews and insights on benefits. News Outlets: Reliable business news sources for any recent changes or updates to their health benefits. Industry Reports: Publications or industry reports that might detail benefits practices and comparisons. 1. GoDaddy Official Website Health Insurance: GoDaddy offers comprehensive health insurance plans, including medical, dental, and vision coverage. The company typically covers a significant portion of the premiums for employees. Wellness Programs: Includes mental health support, fitness programs, and wellness stipends. Acronyms: HSA (Health Savings Account), FSA (Flexible Spending Account), EAP (Employee Assistance Program). 2. Glassdoor Reviews: Employees have reported positive experiences with GoDaddy’s health benefits, highlighting the company's support for mental health and work-life balance. There is also appreciation for the variety of plan options available. Benefits: Includes medical, dental, and vision insurance. Some employees mention additional perks like gym memberships and wellness incentives. 3. Indeed Insights: GoDaddy provides a range of health benefits including medical insurance with several plan options. Employees note that GoDaddy also offers a competitive benefits package compared to industry standards. Updates: Any recent changes or updates might be reflected in employee reviews or company announcements on this site. 4. Business News Outlets Recent Changes: There have been no major public announcements regarding changes to GoDaddy’s health benefits in 2023 or 2024. However, companies often update benefits annually, so recent changes might be more subtle or internal. 5. Industry Reports Comparisons: GoDaddy’s benefits are competitive within the tech industry. They are known for offering robust health benefits as part of their overall employee value proposition. Recent Employee Healthcare News: 2023: GoDaddy expanded its telehealth services, making it easier for employees to access medical consultations remotely. 2024: The company introduced a new wellness program that includes virtual mental health counseling and increased stipends for fitness-related expenses.