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Knights of Columbus Retirees Face ACA Premium Shock—Here’s How Others Are Responding

'Knights of Columbus 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.

'Knights of Columbus 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 Knights of Columbus 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 Knights of Columbus Professionals

For Knights of Columbus 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 are the factors that determine an employee's retirement benefits under the Christian Brothers Employee Retirement Plan, and how are these factors influenced by an employee's length of service and compensation? Understanding the nuances of these factors can help employees plan for their retirement more effectively. Additionally, how does the recent shift in tenure and wages in the industry affect the calculation of these retirement benefits for employees of the Christian Brothers organization?

Factors Determining Retirement Benefits: Under the Christian Brothers Employee Retirement Plan (CBERP), retirement benefits are determined by a combination of years of continuous service, credited past and future service, and compensation. The benefit formulas consider W-2 earnings and past service contributions if applicable. The length of service increases the number of credited years, leading to higher benefits, while higher compensation during service periods also boosts the overall calculation(Christian_Brothers_Empl…).

How does the Christian Brothers Employee Retirement Plan define "vesting" and what are the implications for employees regarding their retirement benefits as outlined in the plan? Furthermore, what strategies can employees implement to ensure they maximize their vesting and thus, their retirement fund contributions during their tenure with the Christian Brothers organization?

Vesting: Vesting refers to an employee's right to receive retirement benefits, and under CBERP, employees become vested after 4 years and 9 months of continuous service. Employees can always receive the return of their contributions plus interest, but to maximize vesting, they should maintain continuous employment for the full vesting period(Christian_Brothers_Empl…).

Can you elaborate on the "Golden Rule of 90" regarding early retirement and the criteria that must be met for employees of Christian Brothers to qualify for this benefit? How does meeting this qualification potentially affect an employee's retirement income stream and financial planning going forward?

Golden Rule of 90: The "Golden Rule of 90" allows employees to retire early without a reduction in benefits if their age and years of service sum to 90, provided they are at least 55 years old. Meeting this qualification offers employees a full retirement benefit without the reduction typically associated with early retirement(Christian_Brothers_Empl…).

What steps should Christian Brothers employees take if they become temporarily disabled and wish to initiate their retirement benefits? Additionally, what provisions does the Christian Brothers Employee Retirement Plan offer to ensure that the disability status does not adversely impact their overall retirement benefits?

Temporary Disability and Retirement Benefits: Employees who become temporarily disabled may initiate retirement benefits if they meet Social Security’s disability requirements. If qualified before July 1, 2018, employees continue to accrue benefits until normal retirement without employer contributions. Starting benefits early due to disability results in a cessation of future accruals(Christian_Brothers_Empl…).

In the context of re-employment after retirement, what specific conditions must Christian Brothers employees be aware of under the retirement plan regarding their eligibility for benefits? Furthermore, how can returning to work impact their benefits and what should they consider when making this decision?

Re-employment After Retirement: Employees who return to work for a participating employer after retirement must be cautious, as working more than the required hours will suspend their retirement benefits. This could reduce their income stream and interrupt the collection of benefits(Christian_Brothers_Empl…).

What methods does the Christian Brothers Employee Retirement Plan outline for employees to designate beneficiaries for their retirement benefits, and how do those designations change upon events like marriage or divorce? Understanding these provisions is crucial for employees to ensure their final wishes regarding benefits are honored.

Beneficiary Designations: CBERP allows employees to designate beneficiaries for their retirement benefits. These designations can be updated after major life events such as marriage or divorce. Employees should ensure that their designations reflect current relationships to ensure that their wishes are honored(Christian_Brothers_Empl…).

How can employees of Christian Brothers effectively contact the benefits department for further clarification on their retirement benefits? What information should they prepare to facilitate a productive conversation regarding the specifics of their retirement plan?

Contacting the Benefits Department: Christian Brothers employees can contact the Benefits Department at 800-807-0700 or via email at rpscustomerservice@cbservices.org. Employees should prepare personal and employment details, along with specific questions about their plan, to facilitate a productive conversation(Christian_Brothers_Empl…).

What are the available forms of benefit distribution upon retirement for employees in the Christian Brothers organization, and how does the choice between these options affect overall retirement security? Employees must weigh their options carefully to ensure they select a distribution method aligned with their financial needs.

Benefit Distribution Forms: CBERP offers several forms of benefit distribution, including life-only options and joint and survivor annuities. The choice between these options significantly affects retirement security. For example, choosing a joint and survivor annuity reduces the primary benefit but provides ongoing income for a spouse(Christian_Brothers_Empl…).

How does the Christian Brothers Employee Retirement Plan address potential changes to the plan and the rights of employees in such instances? Understanding the procedures in place for plan amendments is vital for employees to stay informed about their benefits and rights.

Plan Amendments: CBERP includes provisions for amending the plan. Employees' rights to accrued benefits are protected, meaning that any modifications will not affect benefits that have already been earned. Understanding these protections can help employees stay informed about changes(Christian_Brothers_Empl…).

Can you explain the relationship between Social Security benefits and the retirement benefits provided through the Christian Brothers Employee Retirement Plan? Specifically, how will employeesâ€™ Social Security benefits interact with their retirement funds, and what should they consider when planning for a holistic retirement income strategy?

Interaction with Social Security: CBERP retirement benefits do not reduce or integrate with Social Security benefits. Employees need to consider both sources of income separately when planning their overall retirement strategy(Christian_Brothers_Empl…).