PG&E Retirees Face Rising Premiums: Why 2026 Health Care Costs May Challenge Household Budgets

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 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.

“PG&E 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:

1. How the expiration of enhanced ACA subsidies may affect 2026 premiums.

2. Why many households are delaying enrollment decisions.

3. 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 PG&E 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 PG&E 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:

• - Moving to ACA plans with higher deductibles

• - Paying substantially more in premiums

• - Dropping coverage entirely

• - 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 PG&E 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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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 .