Quick answer
Yes. If you retire before 65, you can get coverage through retiree benefits from your employer (if offered), COBRA for up to 18 months, a working spouse’s plan, or a marketplace plan. For most early retirees, a marketplace plan is the main option, and a premium tax credit based on your retirement income can cut the cost a lot. Your Medicare eligibility starts at 65.
Key takeaways
- Retiring and losing job-based coverage opens a 60-day window to enroll in a marketplace plan.
- Marketplace tax credits are based on your income in retirement, not your savings.
- For 2026 coverage, a couple loses all tax credit help above $84,600 of income, so managing taxable income matters.
- COBRA keeps your current plan for up to 18 months but usually costs the full premium plus 2%.
- Plan your switch to Medicare for the three months before you turn 65.
On this page
Your options before Medicare
| Option | What to know |
|---|---|
| Retiree coverage | Some larger employers offer it; ask HR before you retire |
| COBRA | Same plan for up to 18 months, at up to 102% of the full premium |
| A spouse’s job-based plan | Your retirement is a qualifying event to join, usually within 30 days |
| Marketplace plan | 60-day special enrollment period; tax credit based on household income |
| Medicaid | If your income is low, with no asset test for most expansion adults |
What a marketplace plan costs in your early 60s
Premiums for older adults are high before subsidies. In 2026, the national average benchmark silver plan cost about $1,327 a month for a 60-year-old and $1,467 for a 64-year-old. Tax credits make a big difference. Here’s what a couple, both 62, would pay for the benchmark plan in 2026:
| Household income | Couple’s cost for the benchmark silver plan |
|---|---|
| $40,000 | About $203 a month |
| $60,000 | About $473 a month |
| $70,000 | About $581 a month |
| $84,000 | About $697 a month |
| $85,000 | Full price: about $2,810 a month |
The jump above 400% of the poverty level ($84,600 for a couple for 2026 coverage, $86,560 for 2027) is steep, so many early retirees plan their income carefully. See do you have to pay back your premium tax credit.
Managing income for tax credits
Your tax credit uses modified adjusted gross income, which includes taxable pension and 401(k) or traditional IRA withdrawals, taxable Social Security, capital gains and tax-exempt interest. Withdrawals from Roth accounts and spending from regular savings generally don’t count. Talk with a tax professional about timing withdrawals and Roth conversions.
COBRA
COBRA lets you keep your employer’s plan and doctors for up to 18 months, which can help if you’re mid-treatment or have already met your deductible. It’s usually expensive because your employer stops paying its share. You can use HSA money to pay COBRA premiums.
Choosing a plan
Pick a plan that covers what you use most: prescriptions, specialists, surgery or hospital stays. If you have a condition like diabetes, compare the drug list and the out-of-pocket maximum, not just the premium. Your deductible and copays will shape your yearly costs.
Avoid relying on short-term health insurance; it can exclude pre-existing conditions, which matters more as you age. Going uninsured is riskier still; see the worst that can happen if you get sick without health insurance and what if you can afford your medical bills out of pocket.
Timing
- When you retire: Losing job-based coverage is a qualifying event. Pick a marketplace plan within 60 days, or apply up to 60 days before your coverage ends.
- Each fall: Update your income estimate and compare plans during open enrollment.
- At 65: Sign up for Medicare and end your marketplace plan. See who is eligible for Medicare and health insurance for the elderly.
Compare any retiree offer with the cost of job-based coverage, and see health insurance for the unemployed for more on coverage between jobs.
Related guides: health insurance for a 60-year-old, health insurance for a 64-year-old, health insurance for a couple and working past 65.
Planning to retire early? Compare marketplace plans by ZIP code.
Frequently asked questions
What’s the cheapest health insurance for early retirees?
Usually a marketplace plan with a tax credit, especially if your taxable income is modest. Medicaid is an option if your income is low.
Can I keep my employer’s health insurance when I retire early?
Through COBRA for up to 18 months, or through retiree coverage if your employer offers it.
Do my savings count against marketplace tax credits?
No. The credit is based on income, not assets. But withdrawals from traditional retirement accounts count as income.
Sources
This article is general information, not tax, financial or insurance advice. Talk with a tax professional about managing retirement income. Last reviewed September 2026.