Healthcare Provider Update: Healthcare Provider for PepsiCo PepsiCo's primary healthcare provider for employee health benefits is the UnitedHealthcare network, which offers a range of healthcare services and insurance plans for PepsiCo employees. Potential Healthcare Cost Increases in 2026 In 2026, PepsiCo and its employees may face notable increases in healthcare costs due to a combination of factors influencing the Affordable Care Act (ACA) marketplace. Insurance premiums are projected to rise significantly, with some states seeing hikes upwards of 60%, primarily driven by the expiration of enhanced federal premium subsidies. Additionally, the rising costs of medical services and pharmaceuticals are contributing to overall healthcare inflation, with insurers reporting anticipated increases in claims expenses. This perfect storm could potentially lead to out-of-pocket costs skyrocketing for consumers, creating substantial financial pressures. Click here to learn more
'PepsiCo 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.
'PepsiCo 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:
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How ACA subsidies expiring in 2025 could affect health care costs for PepsiCo employees and retirees.
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Why 2026 health insurance premiums may increase dramatically for pre-Medicare retirees.
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What steps individuals can take now to prepare and manage future health care expenses.
The ACA Shockwave: What PepsiCo Employees, Families, and Retirees May Expect from Increasing Health Insurance Costs
Each fall, millions of Americans, including those transitioning from PepsiCo, 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 PepsiCo 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
PepsiCo 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 PepsiCo 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.
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Sources:
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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.
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2. yahoo!news. ' Millions could go without health care coverage in 2026 ,' by Karissa Waddick and Stephanie Innes. 19 Nov. 2025.
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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:
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1. Centers for Medicare & Medicaid Services. Health Insurance Exchanges 2025 Open Enrollment Report. U.S. Department of Health & Human Services, 2025.
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2. Fernandez, Bernadette. Enhanced Premium Tax Credit Expiration: Frequently Asked Questions. Congressional Research Service, 24 Sept. 2025.
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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.
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What are the key steps an employee needs to take to prepare for retirement from PepsiCo, and how do these steps ensure that they maximize their benefits and entitlements?
Preparing for Retirement: Employees preparing for retirement from PepsiCo need to understand their retirement benefits, estimate their financial needs, and officially inform PepsiCo of their decision to retire. These steps are vital to ensure they maximize their benefits, including pensions, 401(k) plans, and retiree healthcare. The PepsiCo Savings and Retirement Center at Fidelity helps guide employees through this process, ensuring they make well-informed decisions(PepsiCo_October 2022_Ge…).
In what ways can PepsiCo employees navigate the complexities of their pension options, and what considerations should they have in mind when deciding between a lump sum and annuity?
Navigating Pension Options: PepsiCo employees can choose between a lump sum or an annuity for their pension benefits. When deciding, they should consider personal circumstances, such as life expectancy and financial needs. Employees can use the NetBenefits platform to estimate pension values at different retirement dates and consult financial counselors through Healthy Money for personalized advice(PepsiCo_October 2022_Ge…).
How does the PepsiCo Retiree Health Care Program function after retirement, and what criteria must be met for an employee to effectively enroll and maintain this coverage?
Retiree Health Care Program: PepsiCo offers a Retiree Health Care Program available until employees reach age 65, after which coverage transitions to the Via Benefits marketplace. Employees must actively enroll within 31 days of retirement to maintain coverage, or defer enrollment if preferred. The Retiree Health Care Contribution Estimator helps estimate future costs(PepsiCo_October 2022_Ge…)(PepsiCo_October 2022_Ge…).
How do the Automatic Retirement Contributions (ARC) at PepsiCo enhance an employee's retirement savings strategy, and what options do employees have to manage their ARC investments?
Automatic Retirement Contributions (ARC): Employees who receive ARC can manage their investments through NetBenefits. These contributions are automatically added to their retirement savings, enhancing long-term financial security. Employees can review and adjust their investment options to align with their retirement strategy(PepsiCo_October 2022_Ge…).
For employees aging 50 and over, what catch-up contribution options does PepsiCo provide to help with their 401(k) savings, and how can they take advantage of these benefits in their retirement planning?
Catch-Up Contributions: PepsiCo employees aged 50 and above can contribute additional amounts to their 401(k) plans under the catch-up contribution option. This benefit allows employees to boost their retirement savings, helping them prepare more effectively for retirement(PepsiCo_October 2022_Ge…).
What resources are available through PepsiCo for employees looking to calculate their retirement expenses, and how do these tools help in setting realistic financial goals for retirement?
Retirement Expense Calculators: PepsiCo provides tools like the Fidelity Planning & Guidance Center, which helps employees estimate retirement expenses. This tool includes health care costs, mortgage payments, and other potential retirement expenses, enabling employees to set realistic financial goals(PepsiCo_October 2022_Ge…).
How should employees at PepsiCo approach Social Security benefits when planning for retirement, and what role does the company play in facilitating their understanding of these benefits?
Social Security Benefits: Employees approaching retirement should consider when to start Social Security benefits. PepsiCo provides guidance through Healthy Money, helping employees understand how Social Security fits into their overall retirement strategy(PepsiCo_October 2022_Ge…).
What impact does health care coverage have on retired employees' finances, and how can PepsiCo retirees effectively use the Retiree Health Care Contribution Estimator to prepare for future health costs?
Retiree Health Care Contribution Estimator: Health care can significantly impact a retiree's budget. The Retiree Health Care Contribution Estimator is a tool PepsiCo retirees can use to prepare for future health costs. It helps employees estimate their contributions and explore different plan options to manage their post-retirement health care expenses(PepsiCo_October 2022_Ge…).
How can employees get in touch with the appropriate resources to learn more about PepsiCo’s retirement benefits, and what specific contact information should they keep handy during this process?
Contact Information: To learn more about PepsiCo's retirement benefits, employees should contact the PepsiCo Savings and Retirement Center at Fidelity at 1-800-632-2014. Additionally, they can access resources on NetBenefits or consult Healthy Money counselors for personalized financial guidance(PepsiCo_October 2022_Ge…).
What are the implications of interest rate fluctuations on pension benefit calculations at PepsiCo, and how should employees factor these rates into their retirement planning decisions? These questions encourage a comprehensive understanding of the various aspects of retirement planning specific to PepsiCo, as well as consideration for personal financial management.
Interest Rate Fluctuations and Pension Calculations: PepsiCo employees considering a lump sum pension payout should be aware that lump sum values are inversely related to interest rates. A higher interest rate results in a lower lump sum payout, so employees should monitor interest rate trends when planning their pension distribution(PepsiCo_October 2022_Ge…)(PepsiCo_October 2022_Ge…).
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