Why More Illumina Employees Are Considering Social Security Early — And How Medicare Changes Play a Role
Healthcare Provider Update: Healthcare Provider for Illumina
Illumina, a leader in genomic sequencing technology, utilizes various healthcare providers for its insurance needs. While specific provider details are not universally captured, notable healthcare partners have included large insurers like UnitedHealthcare and Aetna, which typically offer comprehensive plans tailored to employees in the biotech and pharmaceutical sectors.
Potential Healthcare Cost Increases in 2026 for Illumina
As a result of anticipated increases in healthcare costs in 2026, Illumina employees may face significantly higher premiums due to a perfect storm of factors impacting the Affordable Care Act marketplaces. With some states projected to experience premium hikes upwards of 60%, and up to 92% of ACA marketplace enrollees potentially seeing increases in out-of-pocket costs exceeding 75% without the renewal of federal subsidies, Illumina's workforce will need to brace for substantial financial challenges. Coupled with rising medical cost inflation and aggressive rate increases from major insurers, these shifts will pose potential strains on employee healthcare budgets and require strategic planning to manage escalating expenses effectively.
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'Illumina 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.
'Illumina 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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Illumina 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 Illumina 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 Illumina 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 Illumina 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 Illumina.
📞 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 is the 401(k) plan offered by Illumina?
The 401(k) plan at Illumina is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out, helping them prepare for retirement.
How does Illumina match employee contributions to the 401(k) plan?
Illumina offers a matching contribution to the 401(k) plan, where the company matches a percentage of employee contributions up to a certain limit, enhancing employees' savings potential.
When can employees at Illumina start contributing to the 401(k) plan?
Employees at Illumina can begin contributing to the 401(k) plan after completing their initial eligibility period, which is typically outlined in the employee handbook.
Does Illumina offer a Roth 401(k) option?
Yes, Illumina provides a Roth 401(k) option, allowing employees to contribute after-tax dollars, which can grow tax-free for retirement.
What investment options are available in Illumina's 401(k) plan?
Illumina's 401(k) plan includes a variety of investment options, such as mutual funds, target-date funds, and other investment vehicles to help employees diversify their portfolios.
Is there a vesting schedule for Illumina's 401(k) matching contributions?
Yes, Illumina has a vesting schedule for matching contributions, which means that employees must work for a certain period to fully own the matched funds.
Can employees at Illumina take loans against their 401(k) savings?
Yes, Illumina allows employees to take loans against their 401(k) savings, subject to certain terms and conditions outlined in the plan documents.
What happens to the 401(k) plan if an employee leaves Illumina?
If an employee leaves Illumina, they have several options for their 401(k) plan, including rolling it over to another retirement account, leaving it with Illumina, or cashing it out.
How often can employees at Illumina change their 401(k) contribution amounts?
Employees at Illumina can change their 401(k) contribution amounts during designated enrollment periods or as permitted by the plan, typically on a quarterly basis.
Does Illumina provide educational resources about the 401(k) plan?
Yes, Illumina offers educational resources and workshops to help employees understand their 401(k) plan options and make informed investment decisions.
With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Name of Pension Plan: Illumina Retirement Plan
Years of Service and Age Qualification: Employees are eligible for pension benefits if they have at least 5 years of service and are at least 55 years old.
Pension Formula: The formula typically involves a combination of years of service and average salary. Exact details may vary based on individual circumstances.
Plan Documentation:
401(k) Plan
Name of 401(k) Plan: Illumina 401(k) Savings Plan
Eligibility: All employees who meet the minimum service requirement, typically 30 days of employment.
Plan Contributions: Employees can contribute up to the annual IRS limit, with potential matching contributions from Illumina.
Illumina announced a restructuring plan in early 2024, which includes significant layoffs and a shift in its business strategy. The company is reducing its workforce by approximately 8% to streamline operations and focus on core business areas. This decision follows a period of slower-than-expected growth and increasing pressure on its financial performance. The restructuring is part of Illumina’s effort to cut costs and improve profitability amidst a challenging economic environment.
Stock Options: Illumina offers stock options as part of its employee compensation package. The stock options are generally available to senior executives and key employees, with grants typically made based on performance and tenure.
RSUs: Restricted Stock Units (RSUs) at Illumina are provided to a broader range of employees, including those at various levels of management. RSUs usually vest over a period of time, rewarding employees for their continued service and performance
Health Benefits Overview: Illumina offers a comprehensive benefits package that includes medical, dental, and vision coverage. Employees have access to various health plans, including HMO and PPO options. The company also provides mental health support through an Employee Assistance Program (EAP) and wellness resources.
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