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'Light & Wonder 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.
Healthcare Provider Update: Offers a wide range of benefits including medical coverage through Aetna, FSAs, life and disability insurance, and retirement plans 1. As ACA premiums rise and subsidies expire, Light & Wonders flexible plan options and preventive care coverage offer employees a stable and cost-effective alternative to marketplace plans. Click here to learn more
'Light & Wonder 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.
In this article, we will discuss:
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How the expiration of enhanced ACA subsidies after 2025 could impact health care costs for retirees and early retirees.
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Real-life case studies illustrating how different individuals are adjusting to rising ACA premiums.
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Practical steps Light & Wonder 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 Light & Wonder Professionals
For Light & Wonder 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:
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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/ .
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2. Centers for Medicare & Medicaid Services. ' Understanding Special Enrollment Periods. ' June 2025.
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Other resources:
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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/ .
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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 .
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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 .
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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 .
With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Light & Wonder offers a comprehensive benefits package that includes both a 401(k) plan and a retirement pension plan. The 401(k) plan at Light & Wonder, offered through Fidelity, is a cornerstone of their retirement offerings. Employees can contribute to the plan and are eligible for a company match, where Light & Wonder will match 100% of the first 1% of eligible earnings contributed and 50% of the next 5%, meaning employees who contribute 6% or more receive a 3.5% match. This plan is available to all employees, with eligibility beginning immediately upon employment (MyLNWBenefits).
The company's retirement pension plan is known as the "Defined Contribution Plan," where employer contributions are made directly to individual accounts. Eligibility for the pension plan requires a minimum of five years of service, and employees must be at least 21 years old. The pension formula is based on the final average salary and the number of years of service. This formula determines the annual pension benefits employees will receive upon retirement (MyLNWBenefits).
The 401(k) and pension plan structures at Light & Wonder ensure that employees have multiple pathways to secure their retirement, aligning with industry standards for retirement savings and security. These details were found on the Light & Wonder benefits website (MyLNWBenefits) (MyLNWBenefits).
Light & Wonder has been managing its benefits with a focus on healthcare options and 401(k) matching for its employees. The company offers up to a 3.5% match on employee 401(k) contributions and comprehensive healthcare plans including virtual primary care, telemedicine, and preventive services. They also introduced fertility benefits and tobacco cessation programs as part of their enhanced healthcare strategy. Additionally, Light & Wonder maintains on-site health clinics at their manufacturing facilities, offering free care to employees. This news is important because it highlights the company’s commitment to supporting employees' health and retirement benefits amidst ongoing economic changes, potentially positioning it as a resilient player in the evolving political and tax environment.
Light & Wonder offers a variety of stock options and Restricted Stock Units (RSUs) to its employees, primarily aimed at retaining top talent and incentivizing long-term performance. Stock options provide employees the right to purchase company shares at a predetermined price after a set vesting period. Meanwhile, RSUs are granted as company stock, becoming fully owned after the vesting period without any purchase requirement.
In 2022, Light & Wonder (LNW) had approximately 2 million stock options and 3 million RSUs outstanding, continuing to use these incentives as a core part of employee compensation (Business Wire) (Stock Analysis). The RSUs are made available to both executives and key employees, while stock options are more broadly distributed. The company has maintained these plans through 2023 and 2024, adjusting vesting schedules and eligibility criteria to align with its ongoing growth strategy and performance targets (Stock Analysis).
Light & Wonder has prioritized employee health by offering comprehensive benefits, including three medical plan options tailored to different needs. Their healthcare packages, which include Essential Care, Choice Care, and Critical Care plans, emphasize preventive care with no cost for in-network services. Light & Wonder also offers virtual care through Aetna/CVS and Doctor on Demand, providing employees access to medical consultations from home, with minimal copays. Employees enrolled in these programs benefit from family planning services such as in vitro fertilization and surrogacy support through Progyny, highlighting their commitment to diverse healthcare needs. This reflects Light & Wonder's proactive approach to healthcare, integrating digital access to medical professionals while focusing on comprehensive family health solutions (MyLNWBenefits) (MyLNWBenefits).
The company has also introduced wellness initiatives like onsite health clinics at their Allentown, PA, and Irvine, CA locations, which offer no-cost services for routine checkups, vaccinations, and flu shots. Their B. Well Centers ensure that employees have direct access to healthcare during work hours, fostering a culture of wellness. Given the current economic uncertainties, providing robust healthcare is crucial for maintaining employee morale and productivity. Light & Wonder's benefits reflect an awareness of healthcare's broader impact on the workforce in light of political and tax changes affecting corporate healthcare contributions (MyLNWBenefits) (MyLNWBenefits).
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