Why More Alaska Air Group Employees Are Considering Social Security Early — And How Medicare Changes Play a Role
Healthcare Provider Update: Healthcare Provider for Alaska Air Group
Alaska Air Group employees primarily receive their health insurance coverage through Premera Blue Cross Blue Shield of Alaska. Premera is the largest insurer in the state and offers various health plan options primarily through the individual marketplace.
Potential Healthcare Cost Increases in 2026
As 2026 approaches, Alaska Air Group employees may experience significant increases in healthcare costs, driven by a confluence of factors. Without the continuation of enhanced federal premium subsidies, many individuals could face out-of-pocket premium rises of over 75%. The pressure on employers to shift more health expenses to employees is evident, with a recent survey indicating that 51% of large employers are likely to raise deductibles or out-of-pocket maximums. Coupled with broader trends of medical cost inflation and substantial rate increases requested by insurers, employees of Alaska Air Group should brace for potentially heightened financial burdens in their healthcare coverage.
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'Alaska Air Group employees weighing when to file for Social Security should consider both current health care costs and long-term income needs, so they can stay adaptable as retirement unfolds.' — Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement.
'Alaska Air Group employees can benefit from thoughtfully coordinating Social Security timing with health care expenses so their retirement income stays aligned with their evolving needs over time.' — Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement.
In this article, we will discuss:
How Social Security filing age affects retirement income.
How Medicare expenses factor into when retirees claim benefits.
Why emotional concerns are shifting filing behavior for many Americans.
Written by Wealth Enhancement advisors Kevin Landis, CPA and Wesley Boudreaux
Advisors in the retirement-income space have long suggested that retirees consider delaying filing for Social Security benefits. For those with a full retirement age (FRA) of 67, waiting until age 70 can result in monthly payments that are around 24% higher.
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And for those with an FRA of 66, the increase if one waits until age 70 is closer to 32%.
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Alaska Air Group employees nearing retirement often hear this same message.
However, new national data indicates a growing number of Americans plan to claim Social Security before age 70. Cost pressures and health care related issues are major influences in this trend.
The Retirees’ Reality
Today’s retirees face a very different environment than those in past decades, including less access to traditional pensions, rising health care costs, and mounting everyday living expenses. In the private sector, only about 15% of workers still have access to defined benefit pensions,
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affecting many households and Alaska Air Group employees.
According to retirement consultant Wesley Boudreaux, 'most retirees are not choosing to claim early for the sake of it.” Instead, rising medical and living costs are driving earlier benefit decisions because of cash flow pressures.
One major factor? Health care. Nearly 39% of out-of-pocket health care spending by Medicare beneficiaries was equivalent to Social Security payments received, on average, in 2022.
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Medicare Advantage: A Key Planning Factor
Additionally, shifts in Medicare Advantage plans have left many retirees unsure about upcoming costs. Benefit structures can vary significantly by year or by region, causing cost surprises that Alaska Air Group workers and their families may need to plan for.
“We are already seeing clients paying more for health care than expected,” said Kevin Landis, CPA. “When medical expenses rise, Social Security often becomes the first lever people pull to handle that burden.”
This is why coordinating Social Security filing decisions with Medicare coverage choices remains important, particularly when plans change annually.
“This is the intersection of Social Security and health care planning,” Landis adds. “Changes in one can influence the other.”
Emotional Considerations Also Matter
Money matters aren’t the only reason retirees claim earlier. Concerns about the future of Social Security have caused many to look for the emotional comfort of taking benefits sooner, including some Alaska Air Group workers preparing for retirement.
While benefits are expected to continue—even if trust fund reserves decline in the 2030s—worries about future payouts can play a role.
“It’s not just about math,” Boudreaux explains. “People want control and stability in retirement, even if that means receiving less over time.”
Finding the Right Approach for You
Whether filing early is a good fit depends a lot on health, cash flow needs, and longer-term retirement goals. Thoughtful planning helps maintain flexibility, rather than driving you to respond under pressure.
“The best approach balances today’s needs with what lies ahead,” Landis says. “And that begins with understanding how Medicare and Social Security interact.”
Need Help Reviewing Your Options?
The Retirement Group, a division of Wealth Enhancement, helps individuals evaluate Medicare electives, analyze Social Security filing alternatives, and design retirement income strategies based on personal goals—including guidance tailored to those employed by Alaska Air Group.
📞 Call (800) 900-5867 before your next enrollment period to schedule a Social Security & Health Care Review.
Work toward confidence in your long-term retirement income decisions.
About the Authors
Wesley Boudreaux and Kevin Landis, CPA, provide retirement income and tax planning guidance through Wealth Enhancement, helping people make informed choices about Social Security, Medicare, and financial well-being.
1. Social Security Administration.
When to Start Receiving Retirement Benefits: Publication No. 05-10147
. May 2024. U.S. Government Publishing Office, Washington D.C.
2. Topoleski, John J., Elizabeth A. Myers, and Sylvia L. Bryan.
Worker Participation in Employer-Sponsored Pensions: Data in Brief and Recent Trends (R43439)
. Congressional Research Service, 18 Sept. 2024.
3. Medicare Payment Advisory Commission.
Report to the Congress: Medicare Payment Policy – Chapter 11: The Medicare Advantage Program: Status Report
. Mar. 2025, medpac.gov/wp-content/uploads/2025/03/Mar25_Ch11_MedPAC_Report_To_Congress_SEC.pdf.
4. Board of Trustees, Social Security.
2025 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds
. 30 June 2025. U.S. Government Publishing Office, Washington D.C.
What type of retirement savings plan does Alaska Air Group offer to its employees?
Alaska Air Group offers a 401(k) retirement savings plan to help employees save for their future.
Does Alaska Air Group match employee contributions to the 401(k) plan?
Yes, Alaska Air Group provides a matching contribution to employee 401(k) accounts, subject to certain limits.
What is the eligibility requirement for Alaska Air Group employees to participate in the 401(k) plan?
Employees of Alaska Air Group are generally eligible to participate in the 401(k) plan after completing a specific period of service, typically within their first year of employment.
Can Alaska Air Group employees choose how much to contribute to their 401(k) plan?
Yes, employees at Alaska Air Group can choose to contribute a percentage of their salary to their 401(k) plan, within the IRS contribution limits.
Are there investment options available for Alaska Air Group employees within the 401(k) plan?
Yes, Alaska Air Group offers a variety of investment options within the 401(k) plan, including mutual funds and other investment vehicles.
How often can Alaska Air Group employees change their 401(k) contribution amounts?
Employees at Alaska Air Group can change their contribution amounts during designated enrollment periods or at specific times throughout the year.
Does Alaska Air Group allow employees to take loans against their 401(k) savings?
Yes, Alaska Air Group allows employees to take loans against their 401(k) savings, subject to the plan’s terms and conditions.
What happens to an Alaska Air Group employee's 401(k) account if they leave the company?
If an Alaska Air Group employee leaves the company, they can choose to roll over their 401(k) balance to another retirement account or cash out, subject to taxes and penalties.
Is there a vesting schedule for the employer match in the Alaska Air Group 401(k) plan?
Yes, Alaska Air Group has a vesting schedule for the employer match, meaning employees must work for a certain period before they fully own the matched funds.
Can Alaska Air Group employees access their 401(k) savings before retirement?
Yes, employees at Alaska Air Group may access their 401(k) savings before retirement under certain circumstances, such as financial hardship or qualifying events.
With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Alaska Air Group has announced a reduction in its workforce by 10% as part of a broader restructuring plan aimed at streamlining operations and cutting costs. This move includes a restructuring of employee benefits and changes to their pension plan.
For more information you can reach the plan administrator for Alaska Air Group at 19300 International Boulevard Seattle, WA 98188; or by calling them at (206) 433-3200.
Further Information for Alaska Air Group* Employees
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