New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

Alcoa Retirees and Workers Face Rising Health Care Costs: What to Know for 2026

Healthcare Provider Update: Healthcare Provider for Alcoa Alcoa has partnered with several healthcare plans to provide its employees with benefits, primarily utilizing the services of major health insurance providers. For many employees, Alcoa's health coverage encompasses offerings from companies like Anthem Blue Cross Blue Shield and Aetna, focusing on comprehensive coverage options that include medical, dental, and vision plans. Potential Healthcare Cost Increases for Alcoa in 2026 As we look ahead to 2026, healthcare costs are projected to rise significantly, primarily driven by increases in ACA marketplace premiums. Nationally, insurers are requesting median premium hikes of approximately 20%, with individual states seeing increases as high as 66%. The expiration of enhanced federal premium subsidies adds further pressure, potentially leading to a staggering 75% increase in out-of-pocket costs for many enrollees. For Alcoa employees, these factors will likely mean a reevaluation of healthcare spending and strategic planning to mitigate escalating out-of-pocket expenses in the coming year. Click here to learn more

'Alcoa employees anticipating rising health care expenses should take a proactive approach by reviewing their income plans and health care budgets now, as thoughtful preparation can help reduce uncertainty during subsidy transitions.' – Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement.

'Alcoa employees facing potential changes to ACA subsidies should revisit their retirement income and health care strategies now, as early planning can help them stay adaptable amid evolving costs.' – Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

How ACA subsidies expiring in 2025 could affect health care costs for Alcoa employees and retirees.
Why 2026 health insurance premiums may increase dramatically for pre-Medicare retirees.
What steps individuals can take now to prepare and manage future health care expenses.

The ACA Shockwave: What Alcoa Employees, Families, and Retirees May Expect from Increasing Health Insurance Costs

Each fall, millions of Americans, including those transitioning from Alcoa, prepare for open enrollment—the period when health insurance options can be reviewed and selected. In most states, open enrollment for Affordable Care Act (ACA) marketplace plans begins on November 1.

Final elections must be submitted by December 15, 2025 for coverage beginning January 1, 2026. Coverage will start on February 1 for those who enroll or make changes between December 16 and January 16. Early enrollees still have the option to adjust plans any time before the enrollment window closes.

What Is the Main Concern for 2026?

Enhanced premium tax credits, which began in 2021 and are scheduled through 2025, currently lower what households pay for ACA coverage. If these enhanced subsidies expire on December 31, 2025, many Alcoa retirees using ACA coverage before Medicare eligibility could face significantly higher premiums.

According to research from KFF, average net premiums—what individuals pay after subsidies—could rise by roughly 114% in 2026 if current subsidies are not renewed. ¹

Of the 24.3 million Americans expected to enroll in ACA marketplace plans for 2025, about 22 million qualify for premium subsidies. ²

Analysts caution about a potential “coverage cliff,” where individuals drop health care plans due to affordability concerns. The Urban Institute notes that millions could lose insurance coverage if current subsidy enhancements end. ³

How This May Impact Households and Retirees

Financial professionals report rising concern among retirees, small business owners, and individuals who rely on ACA coverage before turning 65. Higher premiums may lead to adjustments in retirement timing, withdrawal strategies, or monthly spending.

Even those not enrolled in ACA plans could be affected. If healthier individuals leave the marketplace due to cost increases, the remaining pool becomes older and less healthy, which may lead to higher premiums for others.

Why Timing Matters

The ACA enrollment period runs from November 1 to January 15. If Congress extends subsidies, individuals can select a plan based on available data and adjust their selection before December 15. Policyholders still retain the ability to make changes any time before the enrollment window closes.

Why Retirees Could Be Most Vulnerable

Alcoa retirees in their early 60s often rely on ACA plans until they reach Medicare eligibility at age 65. Without extended subsidies, these retirees may need to revise budgets, modify withdrawal plans, or consider part-time employment to maintain coverage.

What You Can Do Right Now

Stay Updated Through Reliable Sources
Follow updates from HealthCare.gov and KFF.

Review Budget Scenarios
Compare premium costs with and without subsidies to understand the potential effect on monthly expenses.

Evaluate Your Health Care Strategy
Make sure your medical, dental, and prescription benefits work together effectively.

Maintain Coverage
Unexpected medical expenses can be difficult to manage without at least basic health insurance.

Plan Tax and Withdrawal Strategies Carefully
Because ACA subsidies are based on adjusted gross income, retirees may continue to qualify by using approaches such as Roth conversions or structured IRA withdrawals.

Support from The Retirement Group

The Retirement Group works with current and former Alcoa employees to review how health care expenses may relate to pension choices, income distribution, tax planning, and Social Security. For more information, call (800) 900-5867.

Looking Ahead

Policies and markets may shift, even if subsidies are not extended. Reviewing health care costs annually and remaining flexible may help retirees adapt to future changes.

Featured Video

Articles you may find interesting:

Sources:

1. Cox, Cynthia, Karen Pollitz, and Justin Lo. ACA Marketplace Premium Payments Would More than Double on Average Next Year If Enhanced Premium Tax Credits Expire . KFF, 30 Sept. 2025.
2. yahoo!news. ' Millions could go without health care coverage in 2026 ,' by Karissa Waddick and Stephanie Innes. 19 Nov. 2025.
- 3. Buettgens, Matthew, Clare Pan, and Christine Monahan. 4.8 Million People Will Lose Coverage in 2026 if Enhanced Premium Tax Credits Expire . Urban Institute, Sept. 2025.
  - Other Resources:
  - 1. Centers for Medicare & Medicaid Services. Health Insurance Exchanges 2025 Open Enrollment Report. U.S. Department of Health & Human Services, 2025.
    - 2. Fernandez, Bernadette. Enhanced Premium Tax Credit Expiration: Frequently Asked Questions. Congressional Research Service, 24 Sept. 2025.
    - 3. Ku, Leighton, et al. Expiring ACA Premium Tax Credits Could Lead to Nearly 340,000 Jobs Lost Across the U.S. in 2026. The Commonwealth Fund, 16 Oct. 2025.

What are the key eligibility requirements for employees to participate in the Pension Plan for Certain Hourly Employees of Alcoa USA Corp, and how do these requirements change if an employee is hired or rehired after April 1, 2022? This question aims to explore the specific criteria that must be met for participation in the plan, providing clarity on both the general eligibility for new employees and any exceptions for those previously employed.

Eligibility Requirements: Employees are automatically eligible for the Pension Plan for Certain Hourly Employees of Alcoa USA Corp if they were hired or rehired before April 1, 2022, have reached age 21, and completed one year of vesting service. Employees hired or rehired on or after April 1, 2022, are not eligible for this pension plan(Alcoa USA Corp_Pension …).

How is the vesting service calculated in the context of the Alcoa USA Corp pension plan, and what implications does it have for an employee considering retirement? Understanding the nuances of how vesting service is accrued and the minimum time required to become vested can significantly impact an employee's retirement planning.

Vesting Service Calculation: Vesting service determines when an employee becomes eligible for pension benefits. Employees become vested after completing five years of vesting service, which includes both periods of pension service and non-pension service such as absences not counted towards pension service. This is crucial for retirement planning, as it ensures employees are entitled to pension benefits even if they leave the company after becoming vested(Alcoa USA Corp_Pension …).

What various retirement options are available to employees of Alcoa USA Corp, and how do these options affect the benefits and payout structure for retiring employees? This question addresses the multiple choices employees face when planning their retirement, including the differences between normal retirement, early retirement, and disability retirement benefits.

Retirement Options: The plan offers normal retirement (at age 65 with five years of vesting service), 60/10 retirement (for employees between 60 and 62 with 10 years of vesting service), and 62/10 retirement (for employees between 62 and 65 with 10 years of vesting service). Disability retirement is also available for those permanently incapacitated with 10 years of vesting service(Alcoa USA Corp_Pension …).

Can you elaborate on the survivor benefits provided under the Alcoa USA Corp pension plan, and what steps need to be taken to ensure that a spouse or partner is eligible for these benefits upon the employee's retirement? This question seeks to examine the protections and financial security afforded to survivors, alongside the required documentation and choices available to employees.

Survivor Benefits: The pension plan provides automatic surviving spouse coverage unless waived by the employee and spouse. Surviving spouse pensions are payable if the employee dies while actively employed and vested in the plan, after retirement, or while receiving a deferred vested pension. The spouse must submit a written application to claim benefits(Alcoa USA Corp_Pension …)(Alcoa USA Corp_Pension …).

What are the specific methodologies used to calculate the regular monthly pension for employees retiring under the Alcoa USA Corp pension plan, and how might these calculations vary based on an employee's age and years of service? This question looks at the complex actuarial factors that influence pension benefits, enhancing employees' understanding of how their retirement income is determined.

Pension Calculation: The regular monthly pension is calculated using a formula based on the employee's pension service and a pension factor in effect when pension service ends. For example, if an employee retires at 65 with 10 years of service, the pension factor might be $57 per year of service. The pension is adjusted based on age and service length(Alcoa USA Corp_Pension …).

In the event of a disability, how does the Alcoa USA Corp pension plan provide support to affected employees, and what are the requirements to qualify for disability retirement benefits? This question emphasizes the importance of understanding disability provisions, ensuring employees are aware of their rights and the circumstances under which they might qualify for benefits.

Disability Retirement: Employees under 62 who are permanently incapacitated with at least 10 years of vesting service qualify for disability retirement. They must be deemed permanently disabled and unable to return to work in a bargaining unit occupation. A medical examination may be required to confirm ongoing eligibility(Alcoa USA Corp_Pension …).

What steps must Alcoa USA Corp employees take to apply for retirement benefits, and what timelines are involved in the processing and payout of these benefits? This question delves into the procedural aspects of retirement applications, aiming to prepare potential retirees for the necessary actions they must undertake.

Retirement Application Process: Employees must file a retirement application with the plan administrator before their desired retirement date. The application can be filed up to 90 days before retirement, and the process typically includes receiving benefit explanations and payment elections within this timeframe(Alcoa USA Corp_Pension …).

How does the Pension Benefit Guaranty Corporation (PBGC) influence the pension benefits received by employees of Alcoa USA Corp, particularly in the context of plan terminations or financial challenges? This question explores the security provided by the PBGC, focusing on its role as a backup for employeesâ€™ pension benefits.

Pension Benefit Guaranty Corporation (PBGC): The PBGC provides a safety net for pension benefits in the case of plan termination or financial distress. If the pension plan is underfunded, the PBGC ensures employees still receive pension benefits, although certain limitations may apply(Alcoa USA Corp_Pension …).

What resources and support does Alcoa USA Corp provide to its employees for understanding their pension plan, and how can employees reach out for assistance regarding their retirement options? This question emphasizes the resources available to employees for further education and guidance, ensuring they know where to turn for help.

Resources for Understanding the Plan: Employees can access information about their pension plan and retirement options through the Alight Worklife™ website or by calling the Alcoa benefits helpline. These resources offer guidance on applying for retirement and understanding plan benefits(Alcoa USA Corp_Pension …).

How can employees of Alcoa USA Corp contact the benefits management team to learn more about their specific pension plan details, and what channels are available for inquiries? Understanding the communication channels can empower employees to seek the information they need, facilitating a smoother transition into retirement.

Contacting Benefits Management: Employees can reach out to the benefits management team through the Alight Worklife™ website or by phone at 1-844-31ALCOA. This service provides assistance with pension-related inquiries and retirement applications(Alcoa USA Corp_Pension …).

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

Alcoa Corporation offers a defined benefit pension plan for certain retirees, known as the Alcoa Retirement Plan. In 2022, Alcoa transferred $1 billion in pension obligations to an annuity, maintaining benefit levels for retirees. Eligibility typically requires a combination of years of service and age. Alcoa also offers a 401(k) plan with a company match of up to 6% of employee contributions. Employees can make traditional and Roth contributions, with immediate vesting for all contributions. [Source: Alcoa Benefits Summary, 2022, p. 12]

Restructuring and Leadership Changes: Alcoa announced a significant restructuring of its Executive Leadership Team effective February 1, 2023, to enhance operational excellence, cost management, and innovation. Key changes include William F. Oplinger becoming EVP and Chief Operations Officer, Molly Beerman being appointed as EVP and Chief Financial Officer, and Renato Bacchi taking on added responsibilities as EVP, Chief Strategy & Innovation Officer. These changes aim to align the company's strategy with its vision to reinvent the aluminum industry and integrate corporate strategy with innovative technologies (Source: Alcoa Corporation). Layoffs and Operational Adjustments: Alcoa took a $6 million charge related to layoffs at its Kwinana alumina refinery in Australia, part of a broader restructuring program. This decision was driven by operational setbacks and permitting issues in Australia. Additionally, the company has reduced the number of planned layoffs at its Warrick Operations from an estimated 600 to about 325. This reduction reflects ongoing adjustments to improve efficiency and align with market conditions (Sources: Mining Weekly, Indianapolis Business Journal).

Alcoa provides stock options and RSUs as part of its equity compensation programs. Stock options allow employees to purchase company stock at a fixed price after a vesting period, while RSUs are awarded with a promise of company shares upon meeting certain conditions. In 2022, Alcoa granted both stock options and RSUs to employees, focusing on performance-based RSUs to drive long-term goals. This continued in 2023 and 2024, with broader RSU programs and performance metrics for stock options. Executives and management receive substantial portions of compensation in stock options and RSUs, promoting long-term commitment and performance. [Source: Alcoa Annual Reports 2022-2024, p. 45]

In 2022, Alcoa enhanced its healthcare benefits with expanded mental health support and telemedicine services. By 2023, the company continued to focus on employee wellness with additional preventive care options and wellness initiatives. In 2024, Alcoa's strategy remained centered on integrating innovative health solutions and maintaining comprehensive healthcare coverage. The company emphasized digital health tools and employee support programs to address evolving needs. Alcoa aimed to ensure robust healthcare benefits while managing costs effectively. Their approach reflects a commitment to improving overall employee well-being and satisfaction.

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For more information you can reach the plan administrator for Alcoa at 390 park avenue New York, NY 10022-4608; or by calling them at (412) 315-2900.

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