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

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

Healthcare Provider Update: Healthcare Provider for Kellogg Kellogg Company, a global leader in food production, provides health benefits to its employees through a partnership with Blue Cross Blue Shield (BCBS). This collaboration allows Kellogg to offer comprehensive health insurance plans that cater to the diverse needs of its workforce. Potential Healthcare Cost Increases in 2026 As the healthcare landscape evolves, Kellogg employees should be aware of impending healthcare cost increases expected in 2026. A combination of factors, including the potential expiration of enhanced federal premium subsidies under the Affordable Care Act, could lead to a significant rise in out-of-pocket health insurance expenses. Reports indicate that some employees may face premium hikes exceeding 60%, resulting in an overall increase in healthcare costs by up to 75% for many families. With major insurers announcing aggressive rate increases, it's crucial for employees to carefully evaluate their health coverage options and prepare for a potential financial impact. Click here to learn more

'Kellogg 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.

'Kellogg 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 Kellogg 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 Kellogg Professionals

For Kellogg 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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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 primary purpose of the 401(k) plan offered by Kellogg?

The primary purpose of the 401(k) plan offered by Kellogg is to help employees save for retirement by providing a tax-advantaged way to invest their earnings.

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

Kellogg matches employee contributions to the 401(k) plan up to a certain percentage of their salary, encouraging employees to save more for retirement.

When can employees of Kellogg start participating in the 401(k) plan?

Employees of Kellogg can typically start participating in the 401(k) plan after completing a specified period of employment, usually within the first year.

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

Kellogg's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and company stock, allowing employees to diversify their portfolios.

Can employees of Kellogg take loans against their 401(k) savings?

Yes, employees of Kellogg may have the option to take loans against their 401(k) savings, subject to specific terms and conditions outlined in the plan.

How often can Kellogg employees change their contribution amounts to the 401(k) plan?

Kellogg employees can typically change their contribution amounts to the 401(k) plan during designated enrollment periods or at any time as allowed by the plan rules.

What happens to Kellogg employees' 401(k) savings if they leave the company?

If Kellogg employees leave the company, they have several options for their 401(k) savings, including rolling it over to another retirement account, cashing it out, or leaving it in the Kellogg plan if eligible.

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

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

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

Yes, Kellogg has a vesting schedule for its matching contributions, meaning employees must work for the company for a certain period before they fully own the matched funds.

How can Kellogg employees access their 401(k) account information?

Kellogg employees can access their 401(k) account information online through the plan's designated website or mobile app.

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

Kellogg Pension Plan: Eligibility: Varies by years of service and age. Specific requirements are detailed in each document. Pension Formula: Described in the respective annual reports and benefits guides. Name of Pension Plan: Mentioned in the provided pages. Kellogg 401(k) Plan: Eligibility: Details on who qualifies are included in each document. Name of 401(k) Plan: Found in the respective pages of the reports and guides.

In 2023, Kellogg announced a significant restructuring plan as part of its efforts to streamline operations and improve efficiency. The company planned to cut about 5% of its global workforce, which equates to approximately 2,000 jobs. This decision is attributed to Kellogg's need to adapt to changing consumer preferences and the competitive landscape of the food industry. This move is part of a broader trend among companies to realign their workforce to better meet market demands and operational efficiency. Given the current economic climate, such layoffs can impact job security and financial stability for many workers. Understanding these changes is crucial as they can influence investment decisions and economic forecasts.

Stock Options (SO): Allow employees to purchase company shares at a set price. They are typically granted as part of compensation packages and can be exercised after a vesting period. Restricted Stock Units (RSUs): Represent company shares given to employees as part of their compensation, which vest over time or based on performance metrics

Healthcare Benefits Overview: Kellogg offers a comprehensive health benefits package that includes medical, dental, and vision coverage. They provide options for Health Savings Accounts (HSA) and Flexible Spending Accounts (FSA). Their health benefits include preventive care, telemedicine services, and wellness programs. Key Acronyms: HSA (Health Savings Account), FSA (Flexible Spending Account), EAP (Employee Assistance Program).