After he worked with Boeing for more than three decades, a steep health insurance premium increase may send a retiree back to work.
Here's what to know
Monthly Medicare Advantage premiums for Christopher McMahon, 65, and his wife are set to exceed $630 in 2027 — a $510 increase, The Spokesman-Review reported.
For McMahon, who retired in 2022 and lives in Des Moines, Wash., the added expense threatens the retirement he has been enjoying.
"This is just so much more than we thought it would be. This is just awful," he said, per The Spokesman-Review.
Boeing does not pay the premiums for its Aetna Medicare Advantage plan, so retirees must cover an increase of more than 400%. The monthly premium per enrollee will rise from $60 in 2026 to $316 in 2027.
Boeing says its earlier Medicare Supplement coverage cost enrollees $327 to $370 a month. The company introduced the Medicare Advantage plan in 2024, charging no premium that year or in 2025.
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A Boeing spokesperson attributed the increase to higher costs for claims and coverage. Aetna did not respond to the newspaper's request for comment.
More background
Medicare Advantage usually costs less than traditional Medicare, but it also provides less. Its restrictions include limited doctor networks and prior authorization requirements. People eligible for Medicare, generally those over age 65, can choose this private insurance instead.
The premium increase comes alongside other changes in Medicare Advantage. Insurers have reduced provider networks, increased out-of-pocket costs, and dropped unprofitable plans. High medical spending and inflation are also pushing health insurance premiums upward — reducing the program's one benefit over traditional Medicare.
For Boeing retiree Gordon Hale, who enrolled when he turned 65 in September 2026, the increase amounts to roughly $3,000 in higher annual premiums.
To cover those costs, he expects to have to postpone home maintenance, including a roof replacement, and reconsider a spring break trip with his daughter.
According to The Spokesman-Review, a separate, income-adjusted Part B premium applies to most people over 65, while many also owe an income-based drug coverage premium.
What can be done?
Retirees who leave Boeing's plan cannot enroll in it again. Other options in Washington include Medicare Advantage plans with no premiums, although lower-priced coverage has more restrictions.
That permanent exit rule concerns Gayle Hughes, a Boeing retiree who left the company in 2020 after 33 years, per The Spokesman-Review. Hughes and her husband plan to keep their Aetna coverage for a year to preserve access to their doctors, hoping premiums fall after that time.
McMahon and his wife, meanwhile, are considering cheaper coverage. They have also decided to begin collecting Social Security earlier than planned, accepting a financial penalty.
Including premiums and income-based adjustments, McMahon estimates their health coverage will cost at least $2,000 monthly in 2027. He is also considering applying for work at a new Des Moines facility for retirees, giving up time spent making his wife a morning latte, repairing things in his garage, and tending roses.
"I'm really terrified that we're going to run out of money," he said.
Where can I learn more?
Other retirees are also rethinking their budgets and coverage as health insurance costs rise.
• A Pennsylvania couple weighing early retirement found income changes coverage costs substantially.
• U.S. federal retirees face $10,000 family coverage premiums, prompting some to consider ACA subsidies.
• A man retiring at 62 found $0 ACA coverage while weighing whether dental insurance was worthwhile.
• Americans face higher health insurance bills next year across employer coverage, ACA plans, and Medicare.
• A new Medicare enrollee tallied $938 in monthly premiums, exceeding their previous private plan's cost.
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