Healthcare Provider Update: Healthcare Provider for Southern California Edison: Southern California Edison (SCE) primarily utilizes Blue Shield of California as its healthcare provider for employees. This partnership enables the company to offer a variety of health insurance options to its workforce, including comprehensive coverage options tailored to meet the diverse needs of its employees. Potential Healthcare Cost Increases in 2026: As the healthcare landscape shifts, Southern California Edison employees may see a significant impact on healthcare costs in 2026. With projected record increases in insurance premiums-some states reporting hikes exceeding 60%-combined with the potential expiration of enhanced federal subsidies, many employees could face out-of-pocket premium spikes exceeding 75%. Factors contributing to this trend include rising medical costs and aggressive rate hikes from major insurers, which underline the importance of strategic planning for healthcare expenses as retirement approaches. Adapting to these changes is essential for maintaining financial stability and ensuring access to necessary healthcare services. Click here to learn more
'With the 2026 expansion of HSA eligibility, Southern California Edison employees have a rare opportunity to integrate tax-advantaged health care savings into long-term retirement planning, turning modest contributions into meaningful, tax-favored reserves.' – Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement.
'Southern California Edison employees can leverage the expanded HSA rules in 2026 to build a versatile, tax-advantaged reserve for future health care costs, complementing their broader retirement strategy.' – Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement.
In this article, we will cover:
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The expansion of Health Savings Account (HSA) eligibility in 2026.
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The triple tax advantages that HSAs offer.
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How Southern California Edison employees can incorporate HSAs into long-term retirement planning
By Kevin Won, Wealth Enhancement advisor
Health Savings Accounts Are Expanded: Millions More May Qualify in 2026
Thanks to a key change in tax law, an estimated 10 million more Americans may qualify for Health Savings Accounts (HSAs) starting in 2026. 1 For eligible employees at Southern California Edison, this could represent a major chance to manage taxes while building long-term health care reserves.
Kevin Won, an advisor at Wealth Enhancement, describes this as “one of the most underused yet effective ways to mitigate taxes while planning for health care costs in retirement.” He further notes that many more households will now have access to powerful solutions for growing tax-favored savings that support long-term goals.
How HSAs Work
For eligible medical expenses, HSAs function as tax-advantaged accounts. Because contributions are made before taxes, taxable income is reduced immediately. After funding, account balances may be invested and grow without yearly tax drag. A triple benefit emerges when qualified medical withdrawals are made, as those withdrawals are not taxed. Southern California Edison employees may find these features especially compelling, because unused balances carry forward indefinitely, somewhat like a 401(k).
What Changes in 2026
Under current rules, only individuals in high-deductible health plans (HDHPs) are eligible for HSAs. As of January 1, 2026, however, certain policies purchased through the Affordable Care Act's marketplace and other insurance plans will also be eligible. Specifically, it will become possible to pair HSAs with marketplace bronze plans and catastrophic plans, which will be treated as HDHPs going forward. 2 For Southern California Edison retirees, this shift may open new possibilities that were previously closed. The updated law offers an additional way to enhance tax efficiency and plan for future medical costs.
The Triple Tax Advantage
Won outlines three core benefits of HSAs:
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Contributions are deductible, which lowers taxable income upon deposit.
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Investments grow on a tax-free basis.
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Withdrawals for eligible health costs are untaxed.
Thanks to these features, HSAs offer a tax-efficient way to save for health care costs. After age 65, HSA funds can even be used for non-medical expenses, although withdrawals for those purposes are taxable. 3 This allows Southern California Edison employees to use them like a supplemental retirement pool to address medical costs or to provide additional income when used strategically.
Bottom Line
For millions of Americans, the expanded eligibility in 2026 is a strong opportunity to manage taxes and plan for medical expenses more effectively. “The earlier you begin, the greater the compounding effect,” Won stated. Over time, even modest contributions can accumulate into significant tax-free funds.
In 2026, the annual contribution limit for HSAs will rise to $4,400 for single plans and $8,750 for family coverage. 4 For those age 55 and older, the $1,000 annual HSA catch-up contribution will also remain in 2026, permitting larger tax-favored deposits. For Southern California Edison employees nearing retirement, that extra buffer may be especially helpful in offsetting rising health care costs.
A Final Analogy
Imagine an HSA as planting a resilient oak tree in your financial landscape. Each contribution is a seed placed with tax perks, sheltered from erosion as it grows, and harvested tax-free when needed for medical costs. With the 2026 expansion, Southern California Edison employees now gain broader access to this fertile territory. By integrating HSAs into their broader retirement plans, participants can map contributions and growth, helping today’s modest seed grow into lasting tax-free shade for tomorrow’s health care needs.
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- Corporate Employees: 8 Factors When Choosing a Mutual Fund
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- Stages of Retirement for Corporate Employees
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- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
- How Are Workers Impacted by Inflation & Rising Interest Rates?
- Lump-Sum vs Annuity and Rising Interest Rates
- Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)
- Corporate Employees: Do NOT Believe These 6 Retirement Myths!
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- Worst Month of Layoffs In Over a Year!
Sources:
1. Barron's. ' More People Can Save Taxes on Health Expenses With These Accounts Under the New Law ,' by Karen Hube. 5 Oct. 2025.
2. KFF. ' Expansions to Health Savings Accounts in House Budget Reconciliation ,' by Meghan Salaga and Kaye Pestaina. 29 May 2025.
3. Fidelity Viewpoints. ' 5 Ways HSAs Can Help with Your Retirement. ' Fidelity , Sept. 2025.
4. CNBC. ' IRS unveils new HSA limits for 2026, ' by Kate Dore. 2 May 2025.
Other Resources:
1. Kiplinger Editors. 'Seven Things You Should Do Before 2026 Because of One Big Beautiful Bill Changes.' Kiplinger , 3 Oct. 2025, www.kiplinger.com/taxes/what-you-should-do-before-2026-because-of-obbba-changes
2. Morgan Stanley Wealth Management. 'HSAs: An Overlooked Retirement Savings Vehicle.' Morgan Stanley , 17 Apr. 2024, www.morganstanley.com/articles/health-savings-account-retirement-tax-advantages.
3. AARP Editors. 'HSA May Be Your Secret Tax Weapon for Retirement Saving.' AARP , 10 Sept. 2025, www.aarp.org/money/retirement/hsa-secret-tax-weapon/.
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SoCalGas determines its pension contribution levels using a detailed actuarial process that evaluates the Projected Benefit Obligation (PBO) under Generally Accepted Accounting Principles (GAAP). The contribution is influenced by variables such as employee demographics, retirement age expectations, market conditions, and external economic factors like interest rates and economic forecasts. SoCalGas maintains financial stability by adjusting funding strategies based on market returns and required amortization periods(Southern_California_Gas…).
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SoCalGas provides employees with various resources, including HR representatives, benefit guides, and web-based portals to help them understand their benefits. Employees also have access to personalized retirement accounts and training sessions that cover benefit changes and retirement planning, helping them make informed decisions regarding their future(Southern_California_Gas…).
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