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

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

Healthcare Provider Update: Healthcare Provider for KBR KBR, a company known for its engineering and construction services, provides health insurance through its partnerships with major health insurers. As of now, KBR employees have access to healthcare coverage options primarily through UnitedHealthcare, which is one of the largest health insurers in the United States. This ensures that employees can receive comprehensive health services, including preventive care and specialty treatments. Potential Healthcare Cost Increases in 2026 In 2026, healthcare costs are projected to surge significantly, exacerbated by a challenging blend of factors. Many states are staring down potential increases in health insurance premiums beyond 60%, particularly influenced by the expiration of enhanced federal premium subsidies that could cause out-of-pocket costs to skyrocket by over 75% for most ACA marketplace enrollees. Coupled with rising medical expenses driven by inflation, the anticipated premium hikes reflect a perfect storm for consumers, increasing the financial burden on both individuals and families during a critical period. Insurers report significant revenue growth but also face mounting pressures that may further distress access to affordable healthcare coverage. Click here to learn more

'KBR 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.

'KBR 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 KBR 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 KBR Professionals

For KBR 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 KBR's 401(k) plan?

KBR's 401(k) plan is a retirement savings plan that allows employees to save a portion of their salary on a tax-deferred basis.

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

KBR offers a matching contribution to the 401(k) plan, typically matching a percentage of the employee's contributions up to a certain limit.

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

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

What types of investment options are available in KBR's 401(k) plan?

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

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

Yes, KBR allows employees to take loans against their 401(k) savings, subject to certain conditions and limits set by the plan.

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

If you leave KBR, you can choose to roll over your 401(k) balance to another retirement account, cash out your balance, or leave it in the KBR plan if allowed.

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

Yes, KBR has a vesting schedule for matching contributions, meaning employees must work for a certain period to fully own the matched funds.

How can KBR employees change their contribution percentage to the 401(k) plan?

KBR employees can change their contribution percentage by accessing their account online or by contacting the HR department for assistance.

Does KBR provide educational resources for employees regarding their 401(k) plan?

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

Are there any fees associated with KBR's 401(k) plan?

Yes, KBR's 401(k) plan may have administrative fees and investment-related fees, which are disclosed in the plan documents.

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

KBR Employee Pension Plan Name of the Pension Plan: KBR Pension Plan Pension Formula: KBR provides a defined benefit pension plan based on a formula that includes years of service and average salary. Years of Service and Age Qualification: Generally, employees need to have a minimum of 5 years of service and must be at least 55 years old to qualify for full benefits. Name of the 401(k) Plan: KBR 401(k) Savings Plan Eligibility: Employees are eligible to participate in the KBR 401(k) Savings Plan after completing 30 days of service

Restructuring and Layoffs: In 2023, KBR announced a significant restructuring plan aimed at streamlining its operations. This included a reduction in workforce, particularly targeting roles in administrative and support functions. The company cited the need to enhance operational efficiency and adapt to shifting market demands. This move is significant in the current economic environment as companies are focusing on optimizing resources amid economic uncertainty and evolving industry landscapes.

Stock Options: KBR offered stock options to senior executives and high-performing employees, primarily using the acronym SOP (Stock Option Plan). The SOP provided an opportunity for employees to purchase KBR stock at a fixed price, usually with a vesting period of four years. Source: SEC Form 10-K, Page 34 RSUs: KBR granted RSUs to eligible employees, typically using the acronym RSU (Restricted Stock Units). These RSUs vested over a period of three years, rewarding long-term commitment. Source: Yahoo Finance, KBR Annual Report, Page 20

Health Benefits: KBR provides a comprehensive benefits package including medical, dental, and vision coverage. They offer various plans including PPOs, HSAs, and FSAs. Acronyms and Terms: Common terms include PPO (Preferred Provider Organization), HSA (Health Savings Account), FSA (Flexible Spending Account), EAP (Employee Assistance Program), and EPO (Exclusive Provider Organization).

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

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