Navigating Rising Medicare Costs: A United Rentals Employee’s Guide

Healthcare Provider Update: United Rentals' healthcare provider is primarily UnitedHealthcare, as they are one of the major insurers involved in providing coverage for their employees. As the healthcare landscape shifts, United Rentals employees may face significant increases in healthcare costs in 2026. Premiums for Affordable Care Act (ACA) marketplace plans are expected to soar, with some states seeing hikes of over 60%. Factors driving these increases include the potential expiration of enhanced federal subsidies and rising medical expenses, particularly in prescription medications. With nearly half of large employers likely to shift more costs onto employees through higher deductibles and out-of-pocket expenses, United Rentals workers should proactively assess their health benefit options to mitigate financial impacts. Click here to learn more

“In light of projected Medicare Part B premium increases, United Rentals 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, United Rentals 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 United Rentals 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. United Rentals 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 United Rentals retiree’s annual budget.

History of Premiums (2015–2025)

Estimated Premiums (2026–2034)

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 United Rentals 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 United Rentals employees relying on Social Security should plan for most of their increase to be offset.

Strategic Planning Tips

To manage rising health care costs, United Rentals 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. United Rentals 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:

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.