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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
“FedEx employees facing rising health care costs can benefit from reviewing their broader income and coverage strategies early given that policy changes may create uncertainty.” – Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement.
“FedEx employees navigating potential premium increases may find it helpful to reassess their long-term health care and budget plans early, as preparation can provide clearer direction during periods of policy uncertainty.” – Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement.
In this article, we will discuss:
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How the expiration of enhanced ACA subsidies may affect 2026 premiums.
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Why many households are delaying enrollment decisions.
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What retirees and pre-Medicare individuals should consider when reviewing coverage options.
Why Many Americans May Have Trouble Paying 2026 Premiums When Health Care Costs Increase
Households that rely on premium subsidies under the Affordable Care Act are preparing for significant changes. Unless Congress acts, the ACA’s enhanced premium tax credits, extended under the Inflation Reduction Act and expanded by the American Rescue Plan, will expire after the 2025 plan year. If these subsidies lapse, estimates show average net premiums may increase by roughly 75–115% in 2026, 1 creating financial strain for millions of Americans.
“When a household sees its premium rise dramatically, families can be forced into difficult choices about how to allocate limited income,” explains Wesley Boudreaux, a financial advisor at Wealth Enhancement.
Consumer Uncertainty and Enrollment Pressures
Many FedEx households are delaying their 2026 Marketplace enrollment decisions as they wait to see if Congress will renew the enhanced subsidies. Postponing enrollment increases the risk of missing deadlines and entering the new plan year without coverage.
Some states, such as Pennsylvania, estimate that if subsidies end in 2026, nearly one-third of current enrollees may drop coverage. 2 These estimates reflect affordability concerns, not confirmed enrollment data.
According to Wesley, households are navigating uncertainty rather than disengaging: “Families must make difficult decisions about their health coverage when premiums rise significantly.”
Less Expensive Options May Have Drawbacks
When premiums climb, some FedEx employees may turn to lower-cost alternatives outside the ACA. However, short-term limited duration insurance and other non-ACA-compliant policies often exclude pre-existing conditions, impose annual or lifetime limits, and may not include guaranteed comprehensive benefits. These gaps may leave individuals exposed to significant medical bills during serious illness.
“Lower premiums only matter if the coverage is there when you need it,” Wesley emphasizes. Many non-ACA policies lack essential health benefits and pre-existing condition protections.
Challenging Decisions for Important Groups
If subsidies are not renewed, households may find themselves evaluating difficult choices:
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- Moving to ACA plans with higher deductibles
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- Paying substantially more in premiums
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- Dropping coverage entirely
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- Considering non-ACA options with limited protections
Middle-class families, self-employed individuals, and pre-Medicare retirees may feel the greatest financial pressure if enhanced subsidies disappear.
“Many responsible, hardworking families are severely strained by large premium increases,” observes Wesley.
The Function of Subsidies in a Changing Market
Many households currently benefit from subsidies that may reduce premiums by hundreds of dollars each month. If enhanced subsidies expire, out-of-pocket expenses could increase sharply. Insurers have already priced 2026 plans based on current law, contributing to the “sticker shock” consumers are experiencing, even if Congress ultimately restores subsidies.
In this unsettled environment, reviewing coverage options and planning ahead becomes even more important.
How The Retirement Group Can Assist
For individuals not yet eligible for Medicare—including those leaving the FedEx workforce—health care costs remain a major part of retirement planning.
The Retirement Group can help you review your health insurance choices in the context of your broader retirement income strategy.
Call (800) 900-5867
to speak with someone about preparing for rising health care expenses.
Create a Plan Before Policies Change Again
Marketplace premiums for 2026 reflect a combination of insurer cost increases and legislative uncertainty, and future health care policies may continue evolving. Thoughtful preparation can help households reduce the likelihood of coverage gaps and build a clearer understanding of the alternatives available to them.
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- 7 Things to Consider Before Leaving Your Company
- How Are Workers Impacted by Inflation & Rising Interest Rates?
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Sources:
1. Peterson-KFF. ' How much and why ACA Marketplace premiums are going up in 2026 ,' by J. Ortaliza et al. Aug. 6, 2025.
2. The Hospital and Healthsystem Association of Pennsylvania. “5 Things to Know: Pennie Open Enrollment.” HAP Blog , 30 Oct. 2025, www.haponline.org/News/HAP-News-Articles/HAP-Blog/5-things-to-know-pennie-open-enrollment-1 .
Other Resources:
1. Center on Budget and Policy Priorities. “Five Key Changes to ACA Marketplaces Amid Uncertainty over Premium Tax Credit Enhancements.” Written by Jennifer Sullivan and Nicole Rapfogel, 22 Sept. 2025, www.cbpp.org/research/health/five-key-changes-to-aca-marketplaces-amid-uncertainty-over-premium-tax-credit .
2. Evans, Michael. “2026 Health Insurance Hike Sparks Concern Among Early Retirees: ‘We Cannot Afford This.’” Investopedia , 12 Sept. 2025, www.investopedia.com/2026-health-insurance-hike-sparks-concern-among-early-retirees-we-cannot-afford-this-11808938 .
3. KFF. “Calculator: ACA Enhanced Premium Tax Credit.” KFF, 29 Oct. 2025, www.kff.org/interactive/calculator-aca-enhanced-premium-tax-credit/ .
4. United States Departments of the Treasury, Labor, and Health and Human Services. “Short-Term, Limited-Duration Insurance.” Federal Register , 21 Feb. 2018, www.federalregister.gov/documents/2018/02/21/2018-03208/short-term-limited-duration-insurance .
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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