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

Navigating Rising Medicare Costs: A Bank of America Employee’s Guide

Healthcare Provider Update: Healthcare Provider for Bank of America Bank of America offers its employees a range of healthcare plans, primarily provided through Anthem BlueCross BlueShield, commonly known as Anthem. This partnership enables Bank of America employees to access various medical, dental, and vision insurance plans, tailored to the needs of its diverse workforce. Anticipated Healthcare Cost Increases for Bank of America in 2026 As we approach 2026, healthcare costs for Bank of America employees are expected to rise significantly due to multiple factors. Notably, the expiration of enhanced federal premium subsidies under the Affordable Care Act (ACA) is projected to amplify out-of-pocket premiums by more than 75% for many employees. Further compounding this issue is the continuous rise in medical costs, which, coupled with escalating charges from insurers, could lead to double-digit rate increases. This perfect storm of factors places a significant financial burden on employees, prompting the need for strategic planning and proactive measures to mitigate rising healthcare expenses Click here to learn more

“In light of projected Medicare Part B premium increases, Bank of America employees should proactively adjust their retirement income projections and consult with a financial advisor to address rising health care expenses.” – Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement.

“In anticipation of significant Medicare Part B premium hikes, Bank of America employees would benefit from integrating health care cost projections into their retirement plans and seeking guidance from professional advisors on potential relief strategies.” – Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article we will discuss:

The upcoming Medicare Part B premium increase and its impact on retirement budgets.
How Medicare Part B is funded and how COLA adjustments compare to premium hikes.
Strategic planning tips to help Bank of America retirees manage rising health care costs.

There will soon be a significant shift in Medicare expenses that could affect your retirement budget. According to the 2025 Medicare Trustees Report, the average Part B premium will jump by 11.6%—rising from $185 in 2025 to $206.50 in 2026 ¹ —outpacing most Social Security cost of living adjustments (COLA) over the last decade. Bank of America employees should begin factoring this increase into their long-term financial plans.

Benefit Structure for Medicare Part B

Outpatient and preventative care are covered under Part B, including:

- Cancer screenings, diagnostic procedures, and doctor visits
- Durable medical equipment and mental health counseling
- Prescription medications for outpatients and ambulance transportation
- Skilled nursing services and home health care

In 2025, beneficiaries must pay a $185 monthly premium, a $257 annual deductible, and a 20% co-insurance on most services—important information for any Bank of America retiree’s annual budget.

History of Premiums (2015–2025)

Year	Standard Premium	Dollar Change	Percentage Change
2015	—	—	—
2016	$121.80	+$16.90	16.1%
2017	$134.00	+$12.20	10.0%
2018	$134.00	+$0.00	0.0%
2019	$135.50	+$1.50	1.1%
2020	$144.60	+$9.10	6.7%
2021	$148.50	+$3.90	2.7%
2022	$170.10	+$21.60	14.5%
2023	$164.90	–$5.20	–3.1%
2024	$174.70	+$9.80	5.9%
2025	$185.00	+$10.30	5.9%

The 2022 increase—a 14.5% rise driven by higher drug costs and pandemic-related utilization—served as a warning sign that’s echoed in the projected 2026 jump.

Estimated Premiums (2026–2034)

Year	Estimated Premium	Dollar Growth	Percentage Growth
2026	$206.50	+$21.50	11.6%
2027	$218.60	+$12.10	5.9%
2028	$231.30	+$12.70	5.9%
2029	$247.40	+$16.10	5.8%
2030	$264.70	+$17.30	7.0%
2031	$281.60	+$16.90	6.4%
2032	$300.80	+$19.20	6.8%
2033	$325.90	+$25.10	7.0%
2034	$347.50	+$21.60	6.6%

Part B premiums alone could approach $350 per month by 2034—a 231% increase since 2015—underscoring why Bank of America retirees should plan now to mitigate long-term budget shocks.

The Funding Mechanisms

There are two primary sources of funding for Medicare Part B:

1. 75% from general U.S. Treasury revenues

2. 25% from premiums paid by beneficiaries

Premium income reached $139.8 billion in 2024, ² with additional support from brand name drug fees and trust fund interest—details that Bank of America retirees may find crucial when reviewing their future health care funding.

Cost of Living Adjustments vs. Premium Increases

In 2026, the “hold harmless” provision that protects most Social Security benefits from Part B hikes may not apply. The anticipated 2.5% Social Security COLA—roughly $50 per month—still falls short of the $21.50 premium increase. Only recipients with monthly benefits under $800 will see any net gain, so Bank of America employees relying on Social Security should plan for most of their increase to be offset.

Strategic Planning Tips

To manage rising health care costs, Bank of America employees should consider the following proactive steps:

Forecast Health Care Inflation: Incorporate rising out-of-pocket costs and premiums into your annual budgeting.
Compare Plans Online: Use the official Medicare Plan Finder to evaluate alternatives beyond agent recommendations.
Manage IRMAA Exposures: Employ tax-sensitive strategies—such as income smoothing withdrawals—to help limit future surcharges.
Explore Local Tax Relief: Research state and municipal programs offering property tax exemptions or rebates for seniors.
Stress-Test Your Retirement Portfolio: Model health care inflation scenarios over multiple decades and adjust allocations to safeguard purchasing power.

Extended Consequences

By 2034, annual Part B costs alone could top $3,000–$4,000 if current trends persist—one of the fastest rising expense categories for retirement households. Bank of America retirees who plan early can navigate budgetary shocks to help maintain their lifestyle goals.

According to Wealth Enhancement’s Patrick Ray, this premium surge ranks among the steepest retirement cost increases, and prudent investors must factor health care inflation into their retirement forecasts to mitigate unwelcome surprises.

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Sources:

1. USA Today. ' Social Security 2026 COLA estimated at 2.7%, but much of it will go to Medicare Part B ,' by Medora Lee. 17 July 2025.

2. Boards of Trustees of the Federal Hospital Insurance and Federal Supplementary Medical Insurance Trust Funds. ' 2025 Annual Report of the Boards of Trustees of the Federal Hospital Insurance and Federal Supplementary Medical Insurance Trust Funds ,' U.S. Department of Health and Human Services, 18 June 2025.

Other Resources:

1. Kaiser Family Foundation. “ FAQs on Medicare Financing and Trust Fund Solvency .” Kaiser Family Foundation, 15 June 2024.

3. Urban Institute. “ Applying a Premium Cap in Medicare Part B and Part D .” Urban Institute, Mar. 2023.

4. “ Social Security’s 2026 COLA: Recipients Could Get More Money Next Year .” LiveNOW from FOX, 15 June 2025.

5. Kiplinger Staff. “ Medicare Premiums 2026: Projected IRMAA Brackets and Surcharges for Parts B and D .” Kiplinger, 26 June 2025.

What are the key differences between the single-life annuity option and the joint-life annuity option offered by Bank of America Corporation, and how can employees determine which option is more beneficial for their personal circumstances? To make this decision, employees should consider their marital status, life expectancy, and other retirement income sources they might have while assessing their overall financial picture.

Single-life vs. Joint-life Annuity Options: The single-life annuity option provides monthly payments only for the retiree's life, making it potentially higher as it is based solely on one life expectancy. Conversely, the joint-life annuity option extends payments to cover the life of a spouse or another beneficiary after the retiree's death, typically resulting in lower monthly payments due to the extended payout period. Employees should consider their marital status, life expectancy, and whether they need to provide for a spouse or other dependents in deciding which option suits their personal circumstances best.

How does the vesting schedule in the pension plan of Bank of America Corporation affect employees' entitlement to their benefits, and what factors should employees consider when planning for their retirement? Understanding whether your plan follows a cliff or graded vesting approach is crucial to knowing how long employees must work before they fully own their benefits.

Vesting Schedule Impact: Bank of America's pension plan offers two types of vesting schedules: cliff and graded. Cliff vesting allows employees to be fully vested after a set number of years, while graded vesting gradually increases the vested percentage over time. Employees should factor in their career plans, like how long they intend to stay with the company, as reaching full vesting can significantly affect their pension entitlement.

Given that pension plans are increasingly uncommon, as noted for Bank of America Corporation, how can employees best utilize their pension benefits to ensure financial stability in retirement? Employees should explore the historical context of pension availability in the company and industry while considering the impact of other retirement accounts, such as 401(k) plans and IRAs.

Utilizing Pension Benefits: With pension plans becoming less common, employees of Bank of America should maximize this benefit by understanding how it complements other retirement resources such as 401(k)s or IRAs. Employees can benefit from the security a pension provides by integrating it into a broader retirement strategy, considering factors like inflation and other income sources.

In what ways can Bank of America Corporation employees access information about the specifics of their pension plans, including eligibility criteria and benefit calculations? Employees should familiarize themselves with their Summary Plan Description (SPD) and the Annual Funding Notice they receive to stay informed about their benefits.

Accessing Pension Plan Information: Bank of America employees can access details of their pension plans through the Summary Plan Description (SPD) and Annual Funding Notices. These documents provide essential information about eligibility, benefit calculations, and rights under the plan, helping employees make informed decisions about their retirement.

What considerations should Bank of America Corporation employees take into account when opting for a lump-sum distribution versus an annuity payment, and how might these choices impact their long-term financial security? Employees need to evaluate their comfort with investment risks and their plans for retirement fund distribution, keeping in mind the potential for inflation.

Choosing Between Lump-Sum and Annuity Payments: The choice between receiving a lump-sum or annuity payments impacts long-term financial security. A lump-sum offers flexibility and control over investments, suitable for those comfortable with managing large sums. An annuity provides a steady income stream, preferable for those seeking stability and less investment risk. Factors like health, life expectancy, and other income sources should influence this decision.

How can employees at Bank of America Corporation estimate their monthly retirement income from the pension plan, and what resources are available to help them with this calculation? Utilizing employer-provided tools, financial calculators, or consulting with a financial planner could significantly aid employees in understanding their expected retirement income.

Estimating Monthly Retirement Income: Bank of America employees can estimate their pension income using tools provided by the employer, such as financial calculators, or by consulting with a financial planner. These resources help employees project their income based on their salary and years of service.

Considering the potential tax implications associated with pension plans, how should employees of Bank of America Corporation prepare to manage these taxes upon retiring? Understanding when taxes will be incurred and what strategies can minimize tax liabilities will be key as they transition into retirement.

Managing Tax Implications of Pensions: Understanding the tax implications of pension benefits is crucial. Bank of America employees should plan for the taxation of pension payments upon receipt and consider strategies to minimize tax liabilities, possibly consulting with tax professionals.

How does the funding structure of Bank of America Corporationâ€™s pension plan, including employer contributions, influence the sustainability and reliability of benefits for employees? Employees should be aware of the responsibilities their employer has in managing the pension plan and ensuring sufficient funding across economic fluctuations.

Funding Structure and Benefit Reliability: The sustainability of pension benefits at Bank of America depends on the company's commitment to adequately fund the plan and pay required insurance premiums to the PBGC. Employees should be aware of the funding status through the Annual Funding Notice to assess the plan's health.

What role does the Pension Benefits Guaranty Corporation (PBGC) play in protecting the pension benefits of Bank of America Corporation employees, and how should employees understand this protection when planning for their future? Familiarizing themselves with the limits of the PBGC can help employees gauge the security of their pension benefits.

Role of the PBGC: The Pension Benefits Guaranty Corporation (PBGC) protects the pension benefits of Bank of America employees, providing a safety net in cases where plans cannot meet their obligations. Employees should understand the extent of PBGC coverage and limits to evaluate the security of their benefits.

How can Bank of America Corporation employees reach out to learn more about their pension plan and any specific benefits applicable to them? Employees should seek guidance from the plan administrator or utilize the communication channels provided within the company to obtain personalized assistance regarding their retirement planning needs.

Learning More About Pension Benefits: Bank of America employees looking for more detailed information about their specific pension benefits should consult their plan administrator or utilize company-provided communication channels. This direct engagement helps ensure employees receive personalized and up-to-date information regarding their retirement planning.

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

Bank of America offers both a traditional defined benefit pension plan and a defined contribution 401(k) plan. The defined benefit plan provides retirement income based on years of service and final average pay. The 401(k) plan features company matching contributions and various investment options, including target-date funds and mutual funds. Bank of America provides financial education and planning resources to help employees manage their retirement savings.

Bank of America has faced layoffs as part of its ongoing restructuring efforts in 2024. Despite the layoffs, the company continues to offer extensive retirement benefits, including 401(k) plans, pension plans, and various health and wellness programs for retirees. Staying updated on these benefits is essential in the current political environment.

Bank of America grants RSUs that vest over a specific period, providing shares upon vesting. They also offer stock options, allowing employees to purchase shares at a set price.

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For more information you can reach the plan administrator for Bank of America at 100 N Tryon St Charlotte, NC 28255; or by calling them at +1 800-432-1000.