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

Magellan Midstream Partners Retirees Face ACA Premium Shock—Here’s How Others Are Responding

Healthcare Provider Update: Healthcare Provider for Magellan Midstream Partners Magellan Midstream Partners, like many large companies, typically provides a range of healthcare options for its employees, including coverage through major national insurers. The specific providers may vary, but among the top insurers suggesting significant premium increases for 2026 are UnitedHealthcare, Anthem, and Cigna, which may impact Magellan employees. Potential Healthcare Cost Increases in 2026 As the healthcare landscape evolves, Magellan Midstream Partners employees are poised to face significant cost increases in 2026. With healthcare premiums expected to rise sharply, particularly due to the expiration of enhanced federal subsidies, employees could see out-of-pocket costs escalate by over 75%. These anticipated hikes, with some states reporting individual market increases of more than 60%, highlight the pressing need for employees to review their healthcare plans proactively, taking steps to minimize financial strain amidst these escalating expenses. Click here to learn more

'Magellan Midstream Partners 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.

'Magellan Midstream Partners 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 Magellan Midstream Partners 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 Magellan Midstream Partners Professionals

For Magellan Midstream Partners 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 type of retirement savings plan does Magellan Midstream Partners offer to its employees?

Magellan Midstream Partners offers a 401(k) retirement savings plan to its employees.

Does Magellan Midstream Partners match employee contributions to the 401(k) plan?

Yes, Magellan Midstream Partners provides a matching contribution to employee contributions to the 401(k) plan, subject to certain limits.

What is the eligibility requirement for employees to participate in the Magellan Midstream Partners 401(k) plan?

Employees of Magellan Midstream Partners are eligible to participate in the 401(k) plan after completing a specified period of service, typically within the first year of employment.

How can employees of Magellan Midstream Partners enroll in the 401(k) plan?

Employees can enroll in the Magellan Midstream Partners 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.

What investment options are available in the Magellan Midstream Partners 401(k) plan?

The Magellan Midstream Partners 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

Can employees of Magellan Midstream Partners change their contribution percentage to the 401(k) plan?

Yes, employees can change their contribution percentage to the Magellan Midstream Partners 401(k) plan at any time, subject to plan rules.

Is there a limit on how much employees can contribute to the Magellan Midstream Partners 401(k) plan?

Yes, the IRS sets annual contribution limits for 401(k) plans, and employees of Magellan Midstream Partners must adhere to these limits.

When can employees of Magellan Midstream Partners access their 401(k) funds?

Employees can access their 401(k) funds upon reaching retirement age, or in cases of hardship, termination of employment, or other qualifying events as defined by the plan.

Does Magellan Midstream Partners offer a loan option against the 401(k) plan?

Yes, Magellan Midstream Partners allows employees to take loans against their 401(k) balance, subject to specific terms and conditions.

What happens to the 401(k) plan if an employee leaves Magellan Midstream Partners?

If an employee leaves Magellan Midstream Partners, they may roll over their 401(k) balance to another retirement account, cash out, or leave it in the plan if permitted.

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

Plan Name: Magellan Midstream Partners Pension Plan Years of Service and Age Qualification: Employees generally need to have 5 years of service to qualify for benefits. The typical retirement age is 65. Pension Formula: Benefits are calculated based on a formula that considers years of service and average salary, but specific details are not disclosed publicly. Plan Name: Magellan Midstream Partners 401(k) Plan Eligibility: Employees are eligible to participate in the 401(k) plan after completing 30 days of service. Matching Contributions: The company offers a matching contribution up to a certain percentage of the employee's contribution, which is outlined in the plan details. Source Document: Magellan Midstream Partners 2023 Employee Benefits Summary

Restructuring and Layoffs: In 2023, Magellan Midstream Partners announced a restructuring plan aimed at streamlining operations and reducing costs. This included layoffs as part of their effort to optimize their workforce and improve overall efficiency. This restructuring is part of their strategy to better align with current market conditions and enhance profitability.

In 2022, Magellan Midstream Partners offered Stock Options (SO) and Restricted Stock Units (RSUs) to its senior executives and key employees. These were detailed in the annual report,

Company Official Website: The company's official website is Magellan Midstream Partners. Typically, companies include detailed health benefits information in the "Careers" or "Employee Benefits" sections. I'll look for specific terms and acronyms used by the company. HR and Benefits Reports: Magellan Midstream Partners often publishes annual reports or updates on their benefits. These reports can be found in the "Investor Relations" section or similar areas. Employee Reviews and Forums: Websites like Glassdoor and Indeed offer insights from current and former employees about the company's health benefits. These can provide practical details and employee sentiments. News Articles and Industry Reports: News outlets and industry reports might cover recent changes or news related to employee health benefits. Websites like Bloomberg, Reuters, or industry-specific publications are good sources. Healthcare Benefits Providers: Information about the healthcare providers and plans offered by the company can sometimes be found on third-party benefits comparison sites or directly from the providers themselves