What happens to my health insurance when I retire before 65?
Retirement is a wonderful milestone! If you reach it before the age of 65, and are unsure what your health insurance options are, we are here to help. We want to provide you with some information that will make the transition into retirement as stress free as possible, so you can go out and do the things you enjoy!
If you retire before the age of 65 and lose your job-based health insurance, you can enroll in a plan via the Marketplace. Losing your job based coverage will allow you a special enrollment period. This means, that you will be able to enroll into a plan outside the open enrollment period. When you apply for a plan through the Marketplace, you will find out if you may be eligible for a premium tax credit and lower out of pocket costs. This is based on your household size and income.
If you have retiree coverage, but would like to buy a Marketplace plan instead, you may do that, but you will not be able to get the tax credits and other savings based on your income and household size. Also, if you have voluntarily dropped your coverage you will not qualify for a special enrollment period. You would have to wait for open enrollment, which runs from November 1st-December 15th. If you turn 65 in the middle of the year, you can get Marketplace coverage that will carry you over until Medicare coverage begins. Once your medicare coverage starts, you can cancel the Marketplace plan.
Rest assured you have options if you retire before Medicare kicks in. Again, we are here to help! We would be more than happy to assist you by going over your options or answering any questions you may have. Schedule an appointment today!