PG&E Retirees and Workers Face Rising Health Care Costs: What to Know for 2026

Healthcare Provider Update: Healthcare Provider for Pacific Gas & Electric The primary healthcare provider for employees of Pacific Gas and Electric (PG&E) is often covered under large insurance carriers that offer comprehensive plans, including offerings from Blue Cross Blue Shield and UnitedHealthcare; the exact provider may vary depending on the employee's specific plan and regional options available. Projected Healthcare Cost Increases in 2026 As we look ahead to 2026, healthcare costs are anticipated to rise significantly due to a combination of factors. Insurers are reporting average premium increases that could exceed 20%, driven largely by ongoing inflation in healthcare services and the potential expiration of enhanced subsidies provided under the Affordable Care Act. This perfect storm of rising medical costs and diminished financial support could shock many consumers, with estimates suggesting that out-of-pocket premiums might surge by as much as 75% for individuals reliant on marketplace plans. As such, both employees and employers within PG&E should prepare for heightened expenses, taking proactive steps now to mitigate potential financial impacts. Click here to learn more

'PG&E 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.

'PG&E 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:

1. How ACA subsidies expiring in 2025 could affect health care costs for PG&E employees and retirees.

2. Why 2026 health insurance premiums may increase dramatically for pre-Medicare retirees.

3. What steps individuals can take now to prepare and manage future health care expenses.

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

Each fall, millions of Americans, including those transitioning from PG&E, 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 PG&E 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

PG&E 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 PG&E 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:

• 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.