Aetna Employees Face Mounting Health Insurance Costs—How Rising Expenses Could Impact Financial Stability
Healthcare Provider Update: Healthcare Provider Information for Aetna
Aetna, part of the CVS Health family, has been a key player in the Affordable Care Act (ACA) marketplace, providing health insurance plans to individuals and families. However, significant changes are on the horizon for 2026, as Aetna will exit the ACA marketplace in 17 states, impacting approximately 1 million members. This withdrawal is attributed to the company's challenges in maintaining competitiveness and providing value in a rapidly evolving healthcare landscape.
Potential Healthcare Cost Increases in 2026
As the healthcare landscape shifts, substantial premium hikes are anticipated for those enrolled in ACA marketplace plans, with projections of up to 75% increases in out-of-pocket costs due to the potential loss of enhanced federal subsidies. In some states, insurers have filed for rate increases exceeding 60%, driven by surging medical costs and the expiration of premium tax credits established under the American Rescue Plan. For Aetna's former members, this change further complicates their healthcare landscape as they seek new insurance options amid heightened financial pressures.
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'Rising health care costs have become a silent strain on long-term financial wellness, and Aetna employees should regularly evaluate their benefit options and adjust their retirement plans to keep pace with medical inflation,' – Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement.
'With health care expenses climbing faster than wages or inflation, Aetna employees must treat medical costs as a core part of their retirement strategy, not an afterthought, to maintain lasting financial resilience,' – Brent Wolf, CFP®, a representative of The Retirement Group, a division of Wealth Enhancement.
In this article, we will discuss:
How rising health insurance costs are reshaping employee and retiree financial outlooks.
The impact of health care inflation on long-term retirement readiness and workforce dynamics.
Practical strategies to manage escalating medical expenses and maintain financial resilience.
Rising Health Insurance Costs Are Driving Growing Financial Difficulties
by Brent Wolf, CFP®, Wealth Enhancement
The rising cost of health insurance continues to strain budgets across the nation. For Aetna workers and retirees, higher premiums expected for 2026 could significantly affect long-term fiscal outcomes. Pharmaceutical inflation, institutional inefficiencies, and soaring medical expenses have combined to make health care one of the most persistent budget pressures of this decade.
“One of the most destabilizing factors in personal finance is health care,” said Brent Wolf, CFP®, of Wealth Enhancement. Because premiums, copays, and deductibles tend to increase faster than both income and inflation,
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even Aetna professionals with competitive compensation packages may feel the tightening impact.
A Stressed-Out Health Care System
According to the Kaiser Family Foundation (KFF) 2025 survey, employees now contribute $6,850 on average toward the annual cost of employer-sponsored family health coverage (with total premiums surpassing $26,993 nationwide)—an increase of roughly 7% from last year and up 26% since 2020.
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Hospital consolidations, postponed care during the pandemic, and high prescription drug costs have created the perfect storm. As deferred treatments resume, utilization surges—leading insurers and large employers, such as Aetna, to shift a greater portion of costs to workers.
According to Wolf, “the system is under immense pressure.” Retirees are seeing similar inflation in their Medicare supplement premiums, while employers are balancing how much of those costs to absorb versus pass on.
Medical breakthroughs, from targeted cancer therapies to weight-loss medications, are improving outcomes but driving costs higher. Meanwhile, for-profit intermediaries and opaque pricing structures continue to inflate overall health care spending.
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The Unspoken Effect on Future Financial Readiness
Rising health care costs quietly eat into retirement readiness. Many Aetna employees nearing retirement underestimate how much medical expenses may increase once paychecks stop.
“Most people include taxes and living expenses in their retirement plans, but they don’t consistently account for medical inflation,” Wolf explained. “Health care can easily consume 20% to 30% of a retiree’s budget—and that figure continues to grow each year.”
For current workers, rising premiums can limit 401(k) contributions or reduce savings rates. A Aetna employee who reduces retirement plan contributions by $500 per month to offset health care costs could lose over $1 million in potential retirement assets over 30 years. “That’s the hidden cost few people calculate,” said Wolf.
Employers Reevaluating Their Position
Many corporations are reassessing how to balance premium subsidies and employee well-being. For companies like Aetna, maintaining comprehensive health coverage is a key part of retaining experienced talent and safeguarding long-term productivity.
“Organizations that absorb a greater share of premiums typically see higher engagement, lower turnover, and stronger morale,” Wolf said. “While the upfront cost is high, the return is often a healthier, more stable workforce.”
However, smaller industry players and contractors may not have the same flexibility. Wolf advises workers to assess total compensation—including health care contributions—when evaluating job opportunities.
“It’s effectively a 5–10% raise if your employer covers half your premium,” Wolf added. “Recognizing those hidden compensation advantages is vital for long-term planning.”
How to Handle Medical Expenses
Wolf recommends several steps for Aetna employees to manage health care costs and help strengthen long-term fiscal positioning:
1. Take full advantage of employer benefits. Use available premium-sharing programs, flexible savings accounts (FSAs), and health savings accounts (HSAs). HSAs, in particular, offer triple-tax advantages that can significantly reduce future health care burdens.
2. Incorporate medical cost inflation in retirement plans. Health care costs should be assumed to rise at least 5% annually, especially for those with chronic health concerns or long-term care needs.
3. Compare Medicare and supplemental plans carefully. Lower premiums can mask higher long-term expenses due to limited coverage or prescription restrictions.
4. Review coverage each year. The annual open enrollment period provides a chance to identify network changes or premium adjustments before they negatively affect your budget.
5. Plan early for long-term care. With private nursing home costs averaging more than $100,000 annually,
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hybrid life insurance or long-term care coverage can help preserve accumulated assets.
The Wider Financial Consequences
Rising health care costs influence more than personal budgets—they shape national economic patterns, retirement timing, and workforce participation.
“Health care expenses pose a real threat to long-term wealth for many,” Wolf warned. “They affects when people can afford to retire, how long they remain in the workforce, and how sustainable their income will be afterward.”
According to KFF research, health care premiums grew 6% since 2024, compared to a 4% rise in worker earnings and a 2.7% rate of inflation.
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For Aetna employees, this imbalance underscores the need for proactive planning.
Creating a Long-Term Financial Structure
Wolf stresses that health care should be integrated into your overall financial strategy, not treated as a fixed expense. For Aetna employees, that means crafting retirement and investment plans that can weather ongoing medical cost pressures.
“Finding the cheapest plan isn’t the goal,” Wolf said. “The goal is to build a financial structure that supports your family, your health, and your long-term fiscal well-being. Health care is not just a cost—it’s a cornerstone of long-term budget health.”
A study by Milliman Inc. found that a healthy 65-year-old retiring in 2025 may face lifetime health care costs of approximately $275,000 (men) to $313,000 (women) under Original Medicare with Medigap and Part D coverage.
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Retiring five years earlier could increase those lifetime costs by roughly 56%.
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Health care inflation—combined with premiums surpassing $25,000 per year and a 26% rise in health insurance costs since 2020—has created a new fiscal reality for Aetna employees and retirees alike. By leveraging HSAs and FSAs, accounting for annual medical cost inflation, and reassessing coverage each year, individuals can take active steps toward conserving long-term budget health.
Think of health care expenses as a slow leak in your financial tank. Each copay or premium increase might seem minor, but over time, it drains the resources meant for a dependable retirement. Like a skilled engineer maintaining vital equipment, Aetna employees must monitor their health care costs, plug fiscal leaks early, and fortify their plan before small issues become costly impairments.
About the Author
Financial planner Brent Wolf, CFP®, of Wealth Enhancement , focuses on health care expense planning and retirement income strategies. He helps clients align their medical coverage with broader fiscal goals to maintain long-term stability amid changing market and health care conditions.
How does Aetna Inc.'s frozen pension plan affect employees' eligibility for benefits, and what specific criteria must current employees meet to qualify for any benefits from the Retirement Plan for Employees of Aetna Inc.?
Eligibility for Benefits: Aetna Inc.'s pension plan has been frozen since January 1, 2011, meaning no new pension credits are accruing. Employees who were participants before this date remain eligible for benefits but cannot accrue additional pension credits. To qualify for benefits, participants need to have been vested, which generally occurs after three years of service(PensionSPD).
In what ways can employees at Aetna Inc. transition their pension benefits if they leave the company, and what implications does this have for their tax liabilities and retirement planning?
Transitioning Pension Benefits: If employees leave Aetna, they can opt for a lump-sum distribution or an annuity. Employees can roll over their lump-sum payments into an IRA or other tax-qualified plans to avoid immediate taxes. However, direct rollovers must follow the tax-qualified plan's rules. If not rolled over, employees are subject to immediate tax and potential penalties(PensionSPD).
What steps should an Aetna Inc. employee take if they become disabled and wish to continue receiving pension benefits, and how does the company's policy on disability impact their future retirement options?
Disability and Pension Benefits: Employees who become totally disabled and qualify for long-term disability can continue participating in the pension plan until their disability benefits cease or employment is terminated. No additional pension benefits accrue after December 31, 2010, but participation continues under the plan until employment formally ends(PensionSPD).
Can you explain the implications of the plan amendment rights that Aetna Inc. retains, particularly concerning any potential changes in the pension benefits and what this could mean for employee planning?
Plan Amendment Rights: Aetna reserves the right to amend or terminate the pension plan at any time. If the plan is terminated, participants will still receive benefits accrued up to the date of termination, protected by ERISA. Any future changes could impact employees' planning and retirement options(PensionSPD).
How does the IRS's annual contribution limits for pension plans in 2024 interact with the provisions of the Retirement Plan for Employees of Aetna Inc., and what considerations should employees keep in mind when planning their retirement contributions?
IRS Contribution Limits: The IRS sets annual contribution limits for pension plans, including defined benefit plans. In 2024, employees should ensure that their pension contributions and tax planning strategies align with these limits and the provisions of Aetna's pension plan(PensionSPD).
What are the options available to Aetna Inc. employees regarding pension benefit withdrawal, and how can they strategically choose between a lump-sum distribution versus an annuity option?
Withdrawal Options: Aetna employees can choose between a lump-sum distribution or various annuity options when withdrawing pension benefits. The lump-sum option allows for immediate access to funds, while annuities provide monthly payments over time, offering a more stable income stream(PensionSPD).
How does Aetna Inc. ensure compliance with ERISA regulations concerning the rights of employees in the retirement plan, and what resources are available for employees to understand their rights and claims procedures?
ERISA Compliance: Aetna complies with ERISA regulations, ensuring employees' rights are protected. Resources are available through the Plan Administrator and myHR, providing information on claims procedures, plan rights, and how to file appeals if necessary(PensionSPD).
What documentation should employees of Aetna Inc. be aware of when applying for their pension benefits, and how can they ensure that they maximize their benefits based on their years of service?
Documentation for Benefits: Employees should retain service records and review their benefit statements to ensure they receive the maximum pension benefits. They can request additional documents and assistance through myHR to verify their years of service and other relevant criteria(PensionSPD).
How do changes in interest rates throughout the years affect the annuity payments that employees at Aetna Inc. might receive upon retirement, and what strategies can they consider to optimize their retirement income?
Impact of Interest Rates on Annuities: Interest rates significantly affect annuity payments. Higher interest rates increase the monthly annuity amount. Employees should consider the timing of their retirement, especially at the end of the year, when interest rates for the following year are announced(PensionSPD).
If employees want to learn more about their pension options or have inquiries regarding the Retirement Plan for Employees of Aetna Inc., what are the best channels to contact the company, and what specific resources does Aetna provide for assistance?
Contact for Pension Inquiries: Employees can contact myHR at 1-888-MY-HR-CVS (1-888-694-7287), selecting the pension menu option for assistance. Aetna also provides detailed resources through the myHR website, helping employees understand their pension options and benefits(PensionSPD).
With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Aetna provides a defined contribution 401(k) plan with company matching contributions. Employees can contribute pre-tax or Roth (after-tax) dollars, and Aetna matches 100% of the first 6% of eligible compensation. The plan includes various investment options such as target-date funds, mutual funds, and a self-directed brokerage account. Aetna also offers an Employee Stock Purchase Plan (ESPP) with a discount on company stock. Financial planning resources and tools are available to help employees manage their retirement savings.
Layoffs and Restructuring: CVS Health, the parent company of Aetna, announced plans to cut 5,000 jobs nationwide, including 521 positions at Aetna, primarily in non-customer-facing roles. This move is part of a broader strategy to achieve $800 million in cost savings in 2024 (Sources: Connecticut Public, Beckers Payer). Impact on Connecticut: The layoffs will significantly impact the Hartford-based insurer, with a substantial number of affected employees working remotely but reporting to supervisors in Connecticut (Source: Connecticut Public). Operational Strategy: These changes align with CVS Health's focus on improving operational efficiency and financial performance (Sources: Connecticut Public, Beckers Payer).
Aetna, part of CVS Health, offers stock options and RSUs as part of its equity compensation packages. Stock options allow employees to purchase company stock at a set price post-vesting, while RSUs vest over several years. In 2022, Aetna enhanced its equity programs with performance-based RSUs. This continued in 2023 and 2024, with broader RSU programs and performance metrics for stock options. Executives and management receive significant portions of compensation in stock options and RSUs, promoting long-term commitment. [Source: Aetna Financial Reports 2022-2024, p. 92]
Aetna updated its employee healthcare benefits in 2022 with improved mental health support and preventive care services. The company introduced advanced digital tools and expanded telemedicine options. By 2023, Aetna continued to enhance its benefits package with additional wellness programs and comprehensive care solutions. For 2024, Aetna’s strategy focused on leveraging technology to provide innovative and comprehensive employee support. The updates aimed to address evolving health needs and improve overall well-being. Aetna’s approach reflected a commitment to maintaining robust healthcare benefits.
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