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

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

Healthcare Provider Update: Healthcare Provider for Illumina Illumina, a leader in genomic sequencing technology, utilizes various healthcare providers for its insurance needs. While specific provider details are not universally captured, notable healthcare partners have included large insurers like UnitedHealthcare and Aetna, which typically offer comprehensive plans tailored to employees in the biotech and pharmaceutical sectors. Potential Healthcare Cost Increases in 2026 for Illumina As a result of anticipated increases in healthcare costs in 2026, Illumina employees may face significantly higher premiums due to a perfect storm of factors impacting the Affordable Care Act marketplaces. With some states projected to experience premium hikes upwards of 60%, and up to 92% of ACA marketplace enrollees potentially seeing increases in out-of-pocket costs exceeding 75% without the renewal of federal subsidies, Illumina's workforce will need to brace for substantial financial challenges. Coupled with rising medical cost inflation and aggressive rate increases from major insurers, these shifts will pose potential strains on employee healthcare budgets and require strategic planning to manage escalating expenses effectively. Click here to learn more

'Illumina 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.

'Illumina 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 Illumina 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 Illumina Professionals

For Illumina 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 401(k) plan offered by Illumina?

The 401(k) plan at Illumina is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out, helping them prepare for retirement.

How does Illumina match employee contributions to the 401(k) plan?

Illumina offers a matching contribution to the 401(k) plan, where the company matches a percentage of employee contributions up to a certain limit, enhancing employees' savings potential.

When can employees at Illumina start contributing to the 401(k) plan?

Employees at Illumina can begin contributing to the 401(k) plan after completing their initial eligibility period, which is typically outlined in the employee handbook.

Does Illumina offer a Roth 401(k) option?

Yes, Illumina provides a Roth 401(k) option, allowing employees to contribute after-tax dollars, which can grow tax-free for retirement.

What investment options are available in Illumina's 401(k) plan?

Illumina's 401(k) plan includes a variety of investment options, such as mutual funds, target-date funds, and other investment vehicles to help employees diversify their portfolios.

Is there a vesting schedule for Illumina's 401(k) matching contributions?

Yes, Illumina has a vesting schedule for matching contributions, which means that employees must work for a certain period to fully own the matched funds.

Can employees at Illumina take loans against their 401(k) savings?

Yes, Illumina allows employees to take loans against their 401(k) savings, subject to certain terms and conditions outlined in the plan documents.

What happens to the 401(k) plan if an employee leaves Illumina?

If an employee leaves Illumina, they have several options for their 401(k) plan, including rolling it over to another retirement account, leaving it with Illumina, or cashing it out.

How often can employees at Illumina change their 401(k) contribution amounts?

Employees at Illumina can change their 401(k) contribution amounts during designated enrollment periods or as permitted by the plan, typically on a quarterly basis.

Does Illumina provide educational resources about the 401(k) plan?

Yes, Illumina offers educational resources and workshops to help employees understand their 401(k) plan options and make informed investment decisions.

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

Name of Pension Plan: Illumina Retirement Plan Years of Service and Age Qualification: Employees are eligible for pension benefits if they have at least 5 years of service and are at least 55 years old. Pension Formula: The formula typically involves a combination of years of service and average salary. Exact details may vary based on individual circumstances. Plan Documentation: 401(k) Plan Name of 401(k) Plan: Illumina 401(k) Savings Plan Eligibility: All employees who meet the minimum service requirement, typically 30 days of employment. Plan Contributions: Employees can contribute up to the annual IRS limit, with potential matching contributions from Illumina.

Illumina announced a restructuring plan in early 2024, which includes significant layoffs and a shift in its business strategy. The company is reducing its workforce by approximately 8% to streamline operations and focus on core business areas. This decision follows a period of slower-than-expected growth and increasing pressure on its financial performance. The restructuring is part of Illumina’s effort to cut costs and improve profitability amidst a challenging economic environment.

Stock Options: Illumina offers stock options as part of its employee compensation package. The stock options are generally available to senior executives and key employees, with grants typically made based on performance and tenure. RSUs: Restricted Stock Units (RSUs) at Illumina are provided to a broader range of employees, including those at various levels of management. RSUs usually vest over a period of time, rewarding employees for their continued service and performance

Health Benefits Overview: Illumina offers a comprehensive benefits package that includes medical, dental, and vision coverage. Employees have access to various health plans, including HMO and PPO options. The company also provides mental health support through an Employee Assistance Program (EAP) and wellness resources.