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

Navigating Rising Medicare Costs: A Jabil Employee’s Guide

Healthcare Provider Update: Healthcare Provider for Jabil Jabil employs a diverse range of healthcare providers to support its workforce, focusing on comprehensive health plans that address various medical needs. These providers often include a mix of major national insurance carriers such as UnitedHealthcare, Aetna, and Cigna, which offer extensive networks and accessible care options for employees. Potential Healthcare Cost Increases for Jabil in 2026 As healthcare costs are projected to surge in 2026, Jabil will likely be affected by the anticipated sharp increases in Affordable Care Act (ACA) premiums and medical expenses. With reports indicating that some states may encounter premium hikes exceeding 60%, plus the potential loss of federal subsidies, employees could see out-of-pocket premiums rise significantly-potentially by 75% or more. Coupled with ongoing inflation in medical costs and increasing demand for care, Jabil must strategize to mitigate these financial impacts on employee healthcare benefits in the coming year. Click here to learn more

“In light of projected Medicare Part B premium increases, Jabil 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, Jabil 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 Jabil 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. Jabil 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 Jabil 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 Jabil 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 Jabil 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 Jabil employees relying on Social Security should plan for most of their increase to be offset.

Strategic Planning Tips

To manage rising health care costs, Jabil 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. Jabil 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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Articles you may find interesting:

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.

How does Jabil Circuit ensure the long-term sustainability of its Pension Scheme, and what role do the trustees play in this? In what ways does the investment strategy align with Jabil Circuit's overall business goals and the financial security of its employees?

Jabil Circuit Sustainability of Pension Scheme: Jabil Circuit ensures the long-term sustainability of its pension scheme by setting clear investment objectives that align with the interests of its members and beneficiaries. The trustees, operating under Jabil Pension Trustees Limited (JPT), focus on meeting the scheme's obligations and achieving asset returns above gilts over the long term, while balancing risk control and return generation. The investment strategy is designed to be consistent with return assumptions used by the scheme actuary, considering Jabil's interests in employer contribution payments.

What are the primary objectives of the investment policy for the Jabil Circuit Pension Scheme, and how do these objectives impact the decision-making process regarding asset allocation and risk management? Additionally, how do Jabil Circuitâ€™s obligations to its beneficiaries shape these objectives?

Investment Policy Objectives: The primary objectives of Jabil Circuit's pension scheme investment policy are to meet the scheme's obligations to beneficiaries and to achieve long-term asset returns above gilts. These objectives influence decision-making in asset allocation and risk management by ensuring a balance between risk control and return generation. Jabil Circuit's obligations to beneficiaries shape these objectives by prioritizing financial security and the interests of the members.

Can you elaborate on the Environmental, Social, and Governance (ESG) policies of Jabil Circuit and how these policies influence investment decisions made by the Jabil Circuit Pension Scheme? In what ways does Jabil Circuit engage with its investment managers to uphold these ESG principles?

ESG Policies Influence: Jabil Circuit incorporates Environmental, Social, and Governance (ESG) policies into its investment decisions through a structured policy that includes climate change considerations. This policy guides the trustee's engagement with investment managers, ensuring ESG factors are considered in the investment process. Regular reviews and training provided by Mercer help reinforce these principles and ensure they are integrated into the pension scheme's investment strategy.

How do climate change considerations factor into Jabil Circuit's investment approach, particularly in the context of the Pension Scheme? What measures does Jabil Circuit take to assess and manage climate-related risks associated with its investment portfolio?

Climate Change Considerations: Climate change is a significant factor in Jabil Circuit's investment approach, particularly for the pension scheme. The trustees undertake climate scenario modeling and stress testing annually, aligning the investment portfolio with climate-related financial disclosure recommendations and the Paris Agreement objectives. This approach helps manage climate-related risks and ensures the portfolio is positioned to handle various climate scenarios.

What strategies does Jabil Circuit employ to communicate and engage with employees regarding their pension benefits and retirement options? How can employees participate in discussions about changes or updates to the Jabil Circuit Pension Scheme?

Employee Communication and Engagement: Jabil Circuit employs strategies to actively engage with employees regarding their pension benefits and retirement options. Regular reporting and updates are provided, and employees have opportunities to participate in discussions about changes to the pension scheme. This open communication ensures employees are well-informed and can make knowledgeable decisions about their retirement planning.

In the context of the current IRS limits for 2024, how does Jabil Circuit assist employees in understanding their retirement savings options, particularly in relation to contributions to the Pension Scheme? What resources are available for employees to navigate these changes?

Understanding Retirement Savings Options: In light of the current IRS limits for 2024, Jabil Circuit assists employees by providing resources and guidance on retirement savings options, particularly concerning contributions to the pension scheme. Educational materials and support systems are in place to help employees understand how these changes affect their retirement planning and contributions.

How does the Jabil Circuit Pension Scheme address the issue of responsible investing, and what are the specific exclusions that have been put in place? How does Jabil Circuit balance ethical investment practices with the need for financial returns?

Responsible Investing: Jabil Circuit addresses responsible investing through clear exclusions and ethical investment practices within its pension scheme. The scheme excludes investments in controversial and civilian weapons and tobacco from its active fixed income funds. This approach balances ethical considerations with the need for financial returns, adhering to broader corporate responsibility standards.

What is the frequency and nature of the reporting provided to Jabil Circuit regarding the performance of the Pension Scheme investments? How does this reporting influence the strategic decisions made by the trustees in managing the scheme?

Investment Performance Reporting: The frequency and nature of reporting on the pension scheme's investment performance involve regular updates from Mercer, the investment consultant. These reports influence the trustees' strategic decisions by providing insights into asset performance, risk management, and compliance with investment objectives. This systematic reporting ensures that the trustees are well-informed to manage the scheme effectively.

How has the trustee board of the Jabil Circuit Pension Scheme evolved over time, and what qualifications or experiences do board members bring to their roles? In what ways do these factors contribute to effective oversight of the Pension Scheme?

Evolution and Qualifications of Trustee Board: The trustee board of the Jabil Circuit Pension Scheme has evolved to include members with specific qualifications and experiences that contribute to effective oversight. Regular training sessions and strategic reviews help trustees stay informed and capable of managing complex investment decisions, ensuring the pension scheme is managed with expertise and due diligence.

How can employees contact Jabil Circuit to learn more about their specific benefits under the Pension Scheme and to seek guidance during the retirement process? What channels are available for employees to access this information effectively?

Contacting Jabil Circuit for Pension Benefits: Employees seeking information about their benefits under the Jabil Circuit Pension Scheme can contact the human resources department or designated pension scheme administrators. Multiple channels, including direct consultations, informational seminars, and online resources, are available to ensure employees have effective access to guidance throughout their retirement process.

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

Name of Plan: Jabil Pension Plan Years of Service Qualification: 5 years of service (as per the document, page 14) Age Qualification: Age 55 (document, page 14) Pension Formula: Calculated based on years of service and average salary over the final 5 years (document, page 15) Name of Plan: Jabil 401(k) Plan Eligibility: All full-time employees who have completed 30 days of service (document, page 22) Employer Match: Jabil matches up to 4% of employee contributions (

Restructuring and Layoffs: In 2023, Jabil announced significant restructuring plans aimed at optimizing their global operations. This included a reduction in workforce by approximately 5% in certain divisions to streamline operations and improve efficiency. This move is a response to shifting market demands and an effort to remain competitive in the evolving economic landscape. It's crucial to monitor these changes due to their potential impact on employee job security and company performance amid the current economic and investment climate.

Jabil offers stock options with a standard vesting period of four years. Stock options are granted to executives and key employees. Jabil’s RSUs RSUs at Jabil typically vest over three to four years and are performance-based. These are available to senior management and selected key employees.

Healthcare Benefits: Jabil typically offers a range of healthcare benefits including medical, dental, and vision insurance. Coverage options may include various plan tiers, such as HMO, PPO, or high-deductible health plans (HDHPs). Wellness Programs: The company often provides wellness programs which can include fitness reimbursements, mental health support, and employee assistance programs (EAPs). Acronyms and Terms: Common acronyms such as HMO (Health Maintenance Organization), PPO (Preferred Provider Organization), EAP (Employee Assistance Program), and HDHP (High-Deductible Health Plan) are used in their benefits communication.