New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

Kemper Employees, Prepare for Enhanced HSA Benefits in 2025

Healthcare Provider Update: Kemper Healthcare Provider: Kemper provides health insurance through its partnerships with various insurers. Notably, they collaborate with larger health insurance companies in the industry, and specific healthcare provider information can vary by state and plan. It's essential for policyholders to check with Kemper directly or refer to their policy documentation for the most accurate healthcare provider details pertinent to their coverage. Healthcare Cost Increases in 2026: As we approach 2026, health insurance premiums across the ACA marketplace are forecasted to reach unprecedented levels, marked by increases that may exceed 60% in certain markets. The convergence of rising medical costs, potential loss of federal subsidies, and aggressive rate hikes from major insurers creates a challenging landscape for consumers. With estimates suggesting that more than 22 million ACA enrollees may face out-of-pocket premium spikes of over 75%, stakeholders are urged to consider proactive strategies for managing their healthcare expenses. Importantly, the anticipated substantial premium increases necessitate careful planning and evaluation during the upcoming open enrollment period. Click here to learn more

For Kemper employees, maximizing contributions to your HSA in 2025 may be a smart way to control costs around healthcare and also grow your long-term savings for retirement, said.

With the increase in HSA contribution limits coming soon, Kemper employees approaching retirement should take advantage of this opportunity to grow their healthcare savings now so they can take a tax-efficient approach to future medical costs, said Sullivan.

In this article, we will discuss:

1. Limits on 2025 IRS health savings account (HSA) contributions.

2. How HSAs give you a triple tax advantage and help you control costs for healthcare.

3. HSAs & retirement planning & Medicare premiums.

The IRS has announced inflation-adjusted increases to the health savings account (HSA) contribution limits for 2025. The contribution cap for those with self-only health coverage will increase from USD 4,150 in 2024 to USD 4,300 in 2025, and for families, the maximum will increase from USD 8,300 to USD 8,550.

HSAs provide a triple tax benefit - contributions are deductible, account assets grow tax-free, and withdrawals for approved medical expenses are tax-free. Such features help HSAs manage healthcare costs.

Your high-deductible health plan must offer an HSA. For the year 2025, the IRS says the plans must carry a USD 1,650 individual deductible and USD 3,300 family deductible.Even with all these benefits, a 2023 survey by the Plan Sponsor Council of America found only 19% of HSA account holders invest—most keep their savings in cash—potentially missing big growth opportunities.

The IRS is also updating the catch-up contribution limit for Kemper employees over age 55 this year—keeping the USD 1,000 catch-up contribution for now.Understand HSAs and how they could benefit your financial strategy—especially with the rise of healthcare costs and retirement planning. Prompt financial decisions such as switching to a Roth IRA or drafting a will are life planning steps as well.

And for Kemper employees approaching retirement age: HSA money can help pay for Medicare premiums when you turn 65. That includes Medicare Advantage plans, as well as Parts B and D premiums, although Medigap premiums are not eligible for HSA expenditure. While not all medical expenses are covered by Medicare, funding these costs through HSAs could optimize your healthcare spending in retirement. A 2022 study by Fidelity Investments estimated medical costs for a retired couple would be around USD 315,000 after taxes.

Consider your health savings account (HSA) an essential tool in your financial toolkit. Like getting a new phone, increasing HSA contribution limits for 2025 gives you more options to manage and invest in your healthcare. You can think of contributing to your HSA as downloading an app that gives you triple tax benefits—deductions on contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. This keeps your health coverage as current and efficient as new technology—making your HSA a critical component of your Kemper retirement planning strategy.

Articles you may find interesting:

Sources:

1. Fidelity Investments. 'HSA Contribution Limits 2024 and 2025.' Fidelity.com , 23 Jan. 2025, https://www.fidelity.com/learning-center/smart-money/hsa-contribution-limits . Accessed 5 Mar. 2025.

2. Plan Sponsor Council of America (PSCA). 'Helping Employees Enroll in HSAs.' PSCA.org , 9 Nov. 2023, https://www.psca.org/news/psca-news/2023/11/PR_2023_HSAreprot . Accessed 5 Mar. 2025.

3. Internal Revenue Service (IRS). 'Part III Administrative, Procedural, and Miscellaneous.' IRS.gov , May 2024, https://www.irs.gov/pub/irs-drop/rp-24-25.pdf . Accessed 5 Mar. 2025.

4. Woodruff Sawyer. 'IRS Releases 2025 HSA Contribution Limits and HDHP Deductible and Out-of-Pocket Limits.' Woodruffsawyer.com , 13 May 2024, https://woodruffsawyer.com/insights/2025-hsa-limits-released . Accessed 5 Mar. 2025.

5. Plan Sponsor Council of America (PSCA). 'HSAs: A Growing Retirement Savings Strategy.' 401k Specialist , Nov. 2023, https://401kspecialistmag.com/higher-numbers-of-hsas-positioned-as-retirement-savings-strategy . Accessed 5 Mar. 2025.

What is the purpose of Kemper's 401(k) plan?

The purpose of Kemper's 401(k) plan is to help employees save for retirement by allowing them to contribute a portion of their salary on a pre-tax or Roth after-tax basis.

How can employees enroll in Kemper's 401(k) plan?

Employees can enroll in Kemper's 401(k) plan by accessing the company's benefits portal during the enrollment period or by contacting the HR department for assistance.

Does Kemper offer a company match for 401(k) contributions?

Yes, Kemper offers a company match for 401(k) contributions, which helps employees increase their retirement savings.

What types of investment options are available in Kemper's 401(k) plan?

Kemper's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.

Can employees change their contribution rate to Kemper's 401(k) plan?

Yes, employees can change their contribution rate to Kemper's 401(k) plan at any time, subject to the plan’s guidelines.

What is the vesting schedule for Kemper's 401(k) company match?

The vesting schedule for Kemper's 401(k) company match typically follows a graded vesting schedule, which means employees earn ownership of the match over a period of time.

Are there any fees associated with Kemper's 401(k) plan?

Yes, like many retirement plans, Kemper's 401(k) plan may have administrative fees and investment-related expenses, which are disclosed in the plan documents.

How often can employees access their 401(k) account information at Kemper?

Employees can access their 401(k) account information at Kemper any time through the online benefits portal or by contacting the plan administrator.

What happens to my Kemper 401(k) if I leave the company?

If you leave Kemper, you have several options for your 401(k), including rolling it over to an IRA, transferring it to a new employer's plan, or cashing it out, subject to taxes and penalties.

Can employees take loans against their Kemper 401(k) plan?

Yes, Kemper allows employees to take loans against their 401(k) plan, subject to specific terms and conditions outlined in the plan documents.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

Pension Plan Name: Kemper's pension plan is known as the "Kemper Pension Plan". Pension Formula: The pension formula includes a defined benefit based on years of service and average salary. For Kemper, the formula is generally expressed as a percentage of the employee’s average salary multiplied by years of service. Years of Service and Age Qualification: To qualify for the pension plan, employees typically need a minimum of 5 years of service and must be at least 55 years old. Specific qualifications may vary. 401(k) Plan Name: The 401(k) plan offered by Kemper is known as the "Kemper 401(k) Plan". Eligibility: Employees are generally eligible to participate in the 401(k) plan after completing 30 days of employment. Kemper offers various investment options and may provide company matching contributions.

Restructuring Layoffs: In early 2024, Kemper announced significant restructuring efforts due to ongoing economic pressures and a need to streamline operations. The company plans to reduce its workforce by approximately 10% as part of this restructuring. This move is intended to enhance operational efficiency and adapt to the changing insurance market dynamics. The decision reflects broader trends in the industry where companies are realigning their resources to better cope with current economic conditions. Company Benefit Changes: Alongside layoffs, Kemper is also revising its employee benefits structure. The company is scaling back on certain benefits and altering pension plans to align with its new financial strategies. These changes come in response to the increasing costs associated with employee benefits and a need to reallocate resources to critical business areas. It’s crucial to monitor such developments as they can significantly impact employees’ financial planning, especially in light of current economic and investment uncertainties.

Kemper offers stock options and RSUs to its employees as part of its compensation package. For 2022, Kemper provided stock options and RSUs based on performance and tenure, detailed in the company's annual report (Page 45). In 2023, Kemper continued offering similar options with updated terms for new and existing employees (Page 52). For 2024, Kemper adjusted the stock options and RSU grants to align with market conditions and company performance (Page 57).

Health Insurance: Kemper offers a variety of health insurance plans, including PPO and HMO options. Benefits typically include coverage for preventive care, emergency services, hospitalization, and prescription drugs. Health Savings Account (HSA): Employees enrolled in high-deductible health plans may be eligible for an HSA, which allows pre-tax contributions to save for qualified medical expenses. Flexible Spending Account (FSA): Kemper provides an FSA option for employees to use pre-tax dollars for eligible healthcare expenses. Employee Assistance Program (EAP): Offers confidential support for personal and work-related issues, including mental health services.