Christopher McMahon is thinking about going back to work.
The 65-year-old retired from Boeing in 2022 after over three decades in the company's Seattle-area offices. But the spiking cost of health insurance has him considering whether to get a part-time job.
McMahon, who lives in Des Moines, is enrolled in an Aetna Medicare Advantage plan sponsored by Boeing for its retirees. He and his wife currently pay premiums totaling around $120 per month. Next year, those premiums will jump to over $630 per month for the couple.
That's an increase of more than 400%.
We're shocked," he said. "This is just so much more than we thought it would be. This is just awful."
When people turn 65, they become eligible for Medicare, the public insurance program for older adults. At that point, they can choose to enroll in Medicare Advantage, a private insurance option that's typically more affordable than traditional Medicare, though it comes with restrictions like prior authorization requirements and limited doctor networks.
Some employers offer group Medicare Advantage plans to workers as a retirement benefit. But retirees of Boeing — one of the biggest employers in Washington — are questioning whether they can afford the benefit that was once practically free.
When Boeing first introduced its Aetna Medicare Advantage plan in 2024, the coverage came with a $0 premium, and it remained $0 through 2025.
At the start of this year, Aetna began charging a $60 monthly premium per enrollee. Next year, monthly premiums will have a dramatic increase to $316 per enrollee. The company doesn't pay for premiums, meaning retirees have to shoulder the increase on their own.
Before 2024, Boeing offered retirees a Medicare Supplement plan, which is a different type of coverage. According to the company, that plan cost enrollees between $327 and $370 per month.
"To me it's just outrageous," said Gayle Hughes, who retired from Boeing in 2020 after working at the company for 33 years.
Boeing retirees don't have to buy coverage through the company, and there are many Medicare Advantage plans available to people in Washington with premiums as low as $0 per month, though lower-priced plans come with more restrictions.
But Hughes is reluctant to switch plans, because she doesn't want to lose access to Aetna's network of doctors. People who drop Boeing's plan cannot sign back up in the future.
Hughes and her husband plan to stay on the plan for one more year, with the hope that premiums will come back down afterward.
The premium increases come at a shaky time for the Medicare Advantage market. Over the past few years, insurance companies have shrunk their provider networks, raised out-of-pocket costs and eliminated plans that fail to make money. Health insurance premiums in general are rising rapidly, driven by high medical spending and inflation.
In an email, a Boeing spokesperson attributed next year's higher premiums to rising healthcare claims and plan costs. Aetna did not respond to a request for comment.
Without any help, retirees are struggling to figure out how to absorb the higher costs.
Gordon Hale enrolled in Boeing's Medicare Advantage plan in September when he turned 65. The upcoming increase will translate to an extra $3,000 in premiums over the course of a year for just himself. To afford it, he foresees some belt-tightening.
He expects that he'll have to delay some maintenance on his house, including a roof replacement. Hale had planned to take his daughter on a trip during her spring break next year. "That's probably a staycation now," he said.
Medicare Advantage premiums are not the only cost of health insurance for older adults.
Most people over 65 also have to pay a standard premium known as the Part B premium, which is adjusted based on income; many have to pay a separate, income-based premium for drug coverage, too.
For some, the combined cost of premiums have spurred a realization that retirement might be more expensive than they anticipated.
Next year, McMahon, of Des Moines, estimates that he and his wife will have to spend at least $2,000 per month on health coverage, after combining all their premium costs and income-based adjustments.
For extra money, the couple have decided to start withdrawing Social Security payments earlier than they had planned. They'll be hit with a penalty for doing so. They're also considering dropping the Boeing Medicare Advantage plan for something cheaper, though it might not come with the same level of coverage.
Most likely, McMahon expects that he'll have to go back to work in some capacity.
"I'm really terrified that we're going to run out of money," he said.
It's not what he wants. McMahon has been enjoying retirement. He likes to wake up early, make his wife a latte and tackle a different project every day, like doing repairs in his garage or pruning back the roses in his garden.
"I'm not at all bored," he said. "I really have no interest in going back to work. But he might not have a choice.
He heard about a new retirement housing facility opening up in Des Moines. He's considering applying for a job there.
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