<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=314834185700910&amp;ev=PageView&amp;noscript=1">

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

Learn More

Navigating Rising Medicare Costs: A Shell PLC Employee’s Guide

image-table

“In light of projected Medicare Part B premium increases, Shell PLC 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, Shell PLC 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:

  1. The upcoming Medicare Part B premium increase and its impact on retirement budgets.

  2. How Medicare Part B is funded and how COLA adjustments compare to premium hikes.

  3. Strategic planning tips to help Shell PLC 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. Shell PLC 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 Shell PLC 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 Shell PLC 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 Shell PLC 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 Shell PLC employees relying on Social Security should plan for most of their increase to be offset.

Strategic Planning Tips

To manage rising health care costs, Shell PLC 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. Shell PLC 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.

Featured Video

Articles you may find interesting:

Loading...

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 the Shell Provident Fund function in conjunction with the Shell Pension Plan to assist employees of Shell Oil Company in achieving retirement readiness, and what are the specific eligibility requirements that employees must meet to participate in these plans?

Shell Provident Fund and Shell Pension Plan for Retirement Readiness: The Shell Provident Fund (SPF) and Shell Pension Plan (SPP) work in tandem to enhance employees' retirement readiness by offering company contributions and accrued benefits. Employees are immediately eligible to contribute to SPF with automatic enrollment and varying company contributions based on service length, encouraging active participation and long-term investment. The SPF allows for pre-tax, Roth, and after-tax contributions, with options for loans and withdrawals under specific conditions. The SPP provides a structured pension benefit through the Accumulated Percentage Formula or 80-Point Formula, each tailored to accommodate the retirement goals and timelines of Shell employees, reinforcing a secure financial future upon retirement.

What process should an employee of Shell Oil Company follow to designate a beneficiary for their pension plan benefits, and what are the implications of such designations on retirement planning and estate considerations?

Designating a Beneficiary for Pension Benefits: Shell employees should designate a beneficiary for their pension plan benefits to ensure proper management of their estate and retirement funds. This designation helps in planning for future financial security for their beneficiaries, providing clarity and direction for the distribution of benefits upon the employee's death. The process includes selecting primary and contingent beneficiaries, with spousal consent required if choosing someone other than the spouse as a primary beneficiary.

What communication channels are available for employees of Shell Oil Company who have questions or need clarification regarding their benefits under the Shell Provident Fund and Shell Pension Plan, and how can they best utilize these resources?

Communication Channels for Benefit Queries: Shell provides multiple communication channels for employees to inquire about their benefits under the Shell Provident Fund and Shell Pension Plan. These include dedicated benefits service centers with toll-free numbers and comprehensive online portals that offer detailed plan information, tools for managing investments, and direct contact options to address specific concerns or changes in the employee’s benefit choices.

In cases of early retirement, what are the potential penalties, benefits, and strategic considerations for employees of Shell Oil Company looking to access their pension benefits prior to reaching the normal retirement age?

Early Retirement Considerations: Employees considering early retirement from Shell Oil Company should carefully evaluate the potential penalties and benefits. Strategic considerations include understanding the financial impacts of withdrawing pension funds early, such as reduced benefits and potential tax implications. Planning involves assessing personal financial needs against the long-term benefits of delaying pension withdrawal to maximize retirement income.

How do social security benefits integrate with the Shell Pension Plan, and what factors should employees of Shell Oil Company consider when planning for their overall retirement income, including the implications of receiving dual benefits?

Integration of Social Security Benefits: The integration of social security benefits with the Shell Pension Plan is crucial for employees to consider when planning their overall retirement strategy. Understanding how these dual benefits interact can significantly affect retirement planning, offering a combined approach to maximize retirement income and ensure financial stability in later years.

How does the Shell Oil Company address the issue of preretirement death benefits under the pension plan, and what specific options are available to employees to ensure their beneficiaries are protected in the event of untimely death before retirement?

Preretirement Death Benefits: The Shell Pension Plan includes provisions for preretirement death benefits, ensuring financial protection for beneficiaries in the event of an employee’s untimely death before retirement. These options are pivotal in securing financial support for surviving dependents, providing peace of mind that benefits will be handled according to the employee's wishes and maintained in the face of unforeseen circumstances.

New call-to-action

Additional Articles

Check Out Articles for Shell PLC employees

Loading...

For more information you can reach the plan administrator for Shell PLC at , ; or by calling them at .

*Please see disclaimer for more information

Relevant Articles

Check Out Articles for Shell PLC employees