Quick answer
Your Obamacare plan doesn’t end automatically at 65, but for most people it should end when Medicare starts. Once you’re eligible for premium-free Medicare Part A, you can’t get premium tax credits for a marketplace plan anymore. Sign up for Medicare during your initial enrollment period, which starts three months before the month you turn 65, and set your marketplace plan to end the day before Medicare begins.
Key takeaways
- Enroll in Medicare during the 7-month window around your 65th birthday to avoid late penalties.
- Tax credits for your marketplace plan stop once you’re eligible for premium-free Part A.
- You have to cancel your marketplace plan yourself; it won’t end on its own.
- A marketplace plan doesn’t let you delay Part B without a penalty the way job-based coverage does.
- If you’d have to pay for Part A, you can choose to stay on your marketplace plan instead.
On this page
When to switch to Medicare
Your initial enrollment period lasts seven months: the three months before the month you turn 65, your birthday month, and the three months after. If you sign up in the three months before your birthday month, Medicare starts the first day of your birthday month. If you sign up later, it starts the month after you sign up. See who is eligible for Medicare.
How to end your marketplace plan
- Sign up for Medicare through Social Security (it’s automatic if you already get Social Security benefits).
- Once you know your Medicare start date, log in to your marketplace account and end your plan the day before Medicare begins. You can do this up to three months ahead.
- Keep proof of your Medicare start date in case questions come up at tax time.
If you keep getting tax credits after you become eligible for premium-free Part A, you’ll have to pay them back when you file your taxes.
Why you shouldn’t stay on a marketplace plan
- No more tax credits. Once you’re eligible for premium-free Part A, you’d pay full price for your marketplace plan. For a 64-year-old, the average benchmark plan cost about $1,467 a month in 2026 before subsidies.
- Late penalties. A marketplace plan isn’t coverage from a current job, so it doesn’t protect you from Medicare’s late penalties. If you delay Part B, your premium goes up 10% for each full 12 months you wait, for as long as you have Part B.
- Waiting to enroll. If you miss your initial window, you can usually sign up only from January 1 to March 31, with coverage starting the month after you enroll.
If you have to pay for Part A
If you or your spouse didn’t work long enough to get premium-free Part A, you’d pay $311 or $565 a month for it in 2026. In that case, you can keep your marketplace plan with tax credits if you qualify, as long as you don’t enroll in Medicare. Compare costs carefully: if you later decide to sign up for Medicare, late penalties may apply.
What about your spouse?
If your spouse is younger than 65, they can stay on a marketplace plan and may still get tax credits based on your household income. See what happens to my wife’s health insurance when I go on Medicare.
If you’re still working
If you have coverage through your own or your spouse’s current job at a company with 20 or more employees, you can usually delay Part B without a penalty until the job or coverage ends. That’s different from a marketplace plan. See health insurance for the elderly for more on your Medicare choices, and what Obamacare is for the basics of marketplace coverage.
Related guides: health insurance for a 64-year-old, working past 65 and Medicare late enrollment penalties.
Need a plan for a spouse under 65? Compare quotes by ZIP code.
Frequently asked questions
Can I keep my Obamacare plan after I turn 65?
You can, but once you’re eligible for premium-free Part A you’ll pay full price and risk Medicare late penalties. Most people should switch to Medicare.
Do I have to cancel my marketplace plan when I get Medicare?
Yes. It won’t end automatically. End it the day before your Medicare coverage starts.
What if I’m under 65 and get Medicare because of a disability?
The same rules apply: once you have Medicare, you can’t get marketplace tax credits, so end your marketplace plan when Medicare starts.
Sources
This article is general information, not insurance advice. For free, unbiased Medicare help, contact your State Health Insurance Assistance Program. Last reviewed September 2026.