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Healthcare Provider Update: FedEx's healthcare provider is primarily Cigna, which partners with the company to offer health insurance solutions to its employees through a range of plans, including High Deductible Health Plans paired with Health Savings Accounts. In 2026, FedEx employees may face significant healthcare cost increases, mirroring a broader trend across the nation. With the expected elimination of enhanced ACA premium subsidies, some workers could see their out-of-pocket premium costs surge by over 75%. Coupled with the anticipated double-digit rate hikes from major insurers and rising medical expenses, the financial burden on employees is poised to escalate sharply, potentially impacting their overall healthcare affordability. Click here to learn more
'Rising health care costs underscore the importance for FedEx employees to regularly review their benefits and long-term financial strategy,' says Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement.
'With health care expenses climbing faster than wages, FedEx employees should proactively evaluate their coverage options to help protect their long-term financial well-being,' says Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement.
In this article, we will discuss:
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Why health insurance costs may rise in 2026.
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What changes could impact Affordable Care Act and employer plans.
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How to review your options during open enrollment.
Health insurance expenses may soon climb even higher for millions of households, including those of FedEx employees. Some people have even received advance notice of increases through 2026, adding to concerns that affordable insurance options are becoming more limited.
If you are one of the approximately 24 million Americans enrolled in an ACA marketplace plan, 1 be aware that significant shifts could occur soon. If enhanced ACA premium tax credits expire after 2025, the average family premium could rise 114%, jumping from $888 in 2025 to $1,904 in 2026. 1
Rising expenses are also impacting those covered through employer plans, including employees at FedEx. Surveys indicate that employer-sponsored health insurance costs are estimated to go up by 6% to 9% in 2026—the biggest increase in more than 15 years. 2 As companies continue shifting more of these expenses to workers, payroll deductions and out-of-pocket costs are on the rise. Health care cost growth is even outpacing wage growth, 3 adding pressure on family budgets.
Why Are Prices Increasing?
Many factors contribute to the upward trend, 3 including:
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- A surge in medical visits delayed during the pandemic
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- The growing number of older Americans requiring ongoing care
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- Continued high incidence of chronic illnesses such as diabetes and heart disease
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- Shortages and rising labor costs in the health care workforce
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- Higher demand for services combined with fewer workers
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Competitive differences across regions also influence costs—some markets have many insurance options, while others have only one or two participating carriers.
What to Do During Open Enrollment
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Review your current health care usage. If you typically use fewer services, a high-deductible plan paired with a Health Savings Account might lower monthly premiums and offer certain tax advantages.
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Plan ahead for anticipated medical needs. If you expect more care next year, a plan with higher monthly payments but lower deductibles may help spread costs more evenly.
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Explore additional coverage options. Depending on eligibility, Medicaid, CHIP, or catastrophic plans may help if employer or marketplace premiums increase sharply.
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Stay flexible while enrollment is open. You can modify your plan through the end of open enrollment if your situation or subsidy rules change.
The Bigger Picture
Health care decisions are playing a larger role in long-term planning for FedEx households. Rising medical costs can influence both current spending and future retirement readiness.
At The Retirement Group, we assist individuals in planning for health care costs both before and after retirement. To talk about available plan types and tax-advantaged options as open enrollment approaches, call (800) 900-5867.
Want Assistance Reviewing Your Options?
Health plan decisions affect more than just next year—they may also shape your future income expectations, especially if you’re planning to leave FedEx in the near future.
You don’t need to navigate this alone. Before open enrollment deadlines end, The Retirement Group can help you examine your health care strategy alongside your retirement plan.
Want Assistance Reviewing Your Options?
Health plan decisions affect more than just next year—they may also shape your future retirement income needs, especially for those leaving FedEx in the coming years.
You don’t need to sort through this alone. Before open enrollment deadlines end,
The Retirement Group
can help you assess your health care strategy and retirement plan.
Call
(800) 900-5867
to get started.
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Sources:
1. Lo, Justin, and Larry Levitt. Early Indications of the Impact of the Enhanced Premium Tax Credit Expiration on 2026 Marketplace Premiums . Kaiser Family Foundation, Sept. 2025, www.kff.org/affordable-care-act/aca-marketplace-premium-payments-would-more-than-double-on-average-next-year-if-enhanced-premium-tax-credits-expire .
2. Mercer Insights Team. “Employers Prepare for the Highest Health Benefit Cost Increase in 15 Years.” Mercer , 3 Sept. 2025, www.mercer.com/en-us/insights/us-health-news/employers-prepare-for-the-highest-health-benefit-cost-increase-in-15-years
3. “Why Are Healthcare Costs Rising?” Marsh McLennan Agency , 5 Sept. 2025, www.marshmma.com/us/insights/details/rising-health-care-costs.html .
4. “Five Key Changes to ACA Marketplaces Amid Uncertainty Over Premium Tax Credits.” Center on Budget and Policy Priorities , 2025, www.cbpp.org/research/health/five-key-changes-to-aca-marketplaces-amid-uncertainty-over-premium-tax-credit .
5. Health Care Workforce Shortages. NIHCM Foundation, 4 Mar. 2025, nihcm.org/newsletter/rising-healthcare-workforce-shortage.
What are the implications of the Funding Target Attainment Percentage for FedEx Corporation employees, and how does it impact the security of the pension benefits offered by FedEx Corporation? This question seeks to explore the nuances of the funding target attainment percentage as reported in the annual funding notice, examining how this metric not only reflects the financial health of FedEx Corporation's pension plan but also how it affects employee confidence in future benefit payments and retirement planning.
Funding Target Attainment Percentage: The Funding Target Attainment Percentage for FedEx Corporation indicates the degree to which the pension plan is funded. A percentage of 101.33% for 2022 suggests that the plan has sufficient assets to cover its liabilities, providing security for employees' pension benefits. This high percentage likely increases employee confidence in the stability and reliability of their future pension payouts, essential for long-term retirement planning.
How does the merger of the FedEx Freight Pension Plan into the FedEx Corporate Employees’ Pension Plan influence the benefits currently available to FedEx Corporation employees? This question aims to delve into the practical changes that may arise due to this merger, assessing whether it aligns with employee expectations regarding their pension benefits and how the transition process is managed by FedEx Corporation.
Merger of Pension Plans: The merger of the FedEx Freight Pension Plan into the FedEx Corporate Employees’ Pension Plan appears to have been strategically managed to maintain benefit stability. Despite increasing liabilities by 5.3%, the merger was structured to ensure no negative impact on the benefit amounts payable to participants from either plan, preserving the expected pension benefits for all affected FedEx Corporation employees.
In terms of investment strategies, what measures does FedEx Corporation implement to ensure that its pension plan investments align with the long-term liabilities expected to be paid out to retirees? This question encourages an exploration of the investment policies in place, examining the asset allocations and risk management strategies that FedEx Corporation employs to ensure sustainable funding for its pension obligations, which could potentially include detailed analyses of stocks, debts, and alternative investments.
Investment Strategies: FedEx Corporation employs a diversified investment strategy across equities, fixed income, and alternative investments, aiming to meet long-term pension liabilities. This approach, which includes both active management strategies and the limited use of derivatives, is designed to generate returns that exceed market indices, thus ensuring adequate funding of pension obligations.
What options do employees of FedEx Corporation have for accessing their pension plan statements, and how frequently are these statements generated? The focus here is to understand the communication strategies employed by FedEx Corporation regarding pension benefit statements, including technological access points and the importance of these documents for employee financial planning.
Pension Plan Statements: FedEx Corporation provides annual pension plan statements through their Retirement Service Center, available electronically each fall. Employees can access their statements online or request them if notifications are not received, ensuring transparency and aiding in personal financial planning.
How are contributions to the FedEx Corporation Employees’ Pension Plan determined, and what role do excess contributions play in the plan's overall funding strategy? This question aims to educate employees about how the company balances mandatory contribution levels with potential excess contributions, exploring how these factors interact to influence the plan's solvency and employee benefits.
Contributions to the Pension Plan: Contributions to the FedEx Corporation Employees' Pension Plan are calculated to meet at least the minimum legal requirement and potentially include voluntary excess contributions. These excess contributions can help manage the plan's funding level and ensure its solvency, benefiting overall pension security for employees.
What types of benefits are guaranteed under the Pension Benefit Guaranty Corporation (PBGC) for FedEx Corporation employees, and what limitations exist that employees should be aware of? By focusing on the guaranteed benefits, this question prompts a discussion on the security of specific benefits provided by FedEx Corporation and highlights limitations, allowing employees to understand their rights fully.
PBGC Guarantee: The Pension Benefit Guaranty Corporation guarantees certain types of benefits for FedEx Corporation employees, such as pension benefits at normal retirement age and most early retirement benefits. However, there are limitations, such as exclusions for benefits without vested rights and recently increased benefits, which employees should be aware of to fully understand their pension security.
In what ways does the FedEx Corporation plan to adjust its pension funding strategy in light of changing federal laws that impact pension obligations? Employees are encouraged to consider how legislative changes influence corporate policies surrounding retirement benefits and the proactive strategies FedEx Corporation might take to remain compliant while ensuring the security of employee pensions.
Adjustments to Funding Strategy: FedEx Corporation is likely to adjust its pension funding strategy in response to legislative changes affecting pension obligations, such as those introduced by recent acts adjusting how pension liabilities are calculated. This proactive approach aims to ensure compliance with new laws while continuing to secure the financial health of the pension plan.
What are the steps that FedEx Corporation employees must take if they are considering retirement, particularly in how to navigate the pension plan and gain access to their benefits? This question aims to provide clarity on the retirement process, ensuring that employees are equipped with the necessary information regarding required documentation, timelines, and points of contact within FedEx Corporation.
Steps for Retirement Planning: Employees considering retirement should contact the FedEx Retirement Service Center to navigate their pension plan benefits. This process involves understanding necessary documentation, timelines, and available support, facilitating a smooth transition into retirement.
How does FedEx Corporation plan to manage potential funding shortfalls in the pension plan, and what mechanisms are in place for notifying plan participants should such an event occur? Employees would need to understand the proactive measures put in place by FedEx Corporation to address funding-related challenges while also knowing what this means for their benefits.
Managing Funding Shortfalls: In the event of potential funding shortfalls, FedEx Corporation has policies in place to manage such situations, including strategic contributions to mitigate shortfalls. The company maintains transparency with plan participants about funding levels and any significant changes affecting the pension plan.
For those seeking more information about their pensions and retirement options, how can FedEx Corporation employees contact relevant departments, and what resources are available for assistance? This question provides an opportunity for employees to familiarize themselves with contact points such as the FedEx Retirement Service Center, emphasizing the importance of open communication channels for addressing inquiries related to their pensions. Feel free to consult the provided document for more in-depth exploration of these topics.
Contacting for Pension Information: FedEx Corporation employees seeking more information about their pensions or retirement options can contact the FedEx Retirement Service Center. This center provides essential resources and support, ensuring employees have access to all necessary information regarding their retirement planning.
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