Health Insurance Options for Early Retirees Under 65

Since everyone’s health and wealth are entirely different, there isn’t just one plan that will apply to everyone. Insurers now offer a range of early retirement health insurance options so you can choose which best suites your needs. We’ll go over five common options here.

• COBRA Coverage: If you’re leaving a job where health benefits were provided, COBRA may allow you to extend the coverage you had even after your employment ends. Instead of your employer paying the premium, you would now be responsible for the premium payments. One consideration here is that COBRA often is available for a limited time. If you are retiring at 60 years old, COBRA may only cover you part of the time before getting to Medicare eligibility.

• Health Insurance Marketplace Plans: The Affordable Care Act (ACA) provides both state and federal government coverage plans. These plans are intended to be budget-friendly and may even include subsidies from the government.

• Your Spouse’s Insurance Plan: Remember that if you’re retiring and your spouse is not, you may have the option of being added to their plan through their employer. The best method for exploring this option is to check with their HR department at their place of employment.

• Part Time Work: While you’ve certainly worked enough already to have earned your retirement, should you find the time and energy to pick up a part time job this could be a viable solution. While part-time employment typically doesn’t provide the same kind of health benefits as a full-time job, you may find that it’s worth it financially to have an employer health cover the costs of that premium. 

• Private Health Insurance: While the costs will likely be higher than the previous solutions mentioned, purchasing your own private plan directly from an insurer will provide you an opportunity to select the exact plan you want or the specific insurer you want.