Retired Before 65? Early Retirement Health Insurance Options Before Medicare

If you retire before 65 and lose job-based coverage, there are a few options before Medicare starts, namely COBRA, a Marketplace plan, a spouse's employer plan, or Medicaid if you qualify.

Why There Is a Coverage Gap Before Medicare

Medicare generally becomes available at 65, but many people retire earlier. If your job-based health insurance ends when you retire, you’ll need another source of health insurance before Medicare. Retiring at 62, for example, could mean arranging health insurance for the next three years.

Medicare can start earlier for some people with disabilities or certain conditions, such as End-Stage Renal Disease (ESRD) or ALS. For everyone else, Medicare begins at 65, and our guide to Medicare for People Turning 65 explains the typical enrollment rules.

Your Main Health Insurance Options Before Medicare

Health insurance for early retirees comes down to four primary paths: COBRA, a Marketplace plan, a spouse's employer plan, or Medicaid. Your health insurance options before Medicare also include retiree coverage if your former employer offers it. This table shows how each path works and when you need to act.

Why There Is a Coverage Gap Before Medicare

Medicare generally becomes available at 65, but many people retire earlier. If your job-based health insurance ends when you retire, you’ll need another source of health insurance before Medicare. Retiring at 62, for example, could mean arranging health insurance for the next three years.

Medicare can start earlier for some people with disabilities or certain conditions, such as End-Stage Renal Disease (ESRD) or ALS. For everyone else, Medicare begins at 65, and our guide to Medicare for People Turning 65 explains the typical enrollment rules.

Your Main Health Insurance Options Before Medicare

Health insurance for early retirees comes down to four primary paths: COBRA, a Marketplace plan, a spouse's employer plan, or Medicaid. Your health insurance options before Medicare also include retiree coverage if your former employer offers it. This table shows how each path works and when you need to act.

If you elect COBRA, you generally can't drop it outside open enrollment to buy a Marketplace plan instead. Reaching the end of your COBRA coverage opens a new Special Enrollment Period, but ending COBRA early on your own does not. Compare both options before you elect COBRA, because the choice can be hard to reverse.

Deadlines to Know When You Leave Your Job

Most deadlines for health insurance for early retirement start when your coverage ends, so it helps to act before your last day. This table puts the main dates in one place.

Open enrollment for 2027 Marketplace coverage runs November 1, 2026 through January 15, 2027 on HealthCare.gov. Our ACA open enrollment 2027 guide has the details.

What Happens When You Turn 65

Medicare generally becomes your coverage at 65, so your earlier plan needs a clear end date. COBRA generally ends once you become entitled to Medicare. Marketplace coverage doesn't end on its own, so you update your application to report your Medicare start date, which is typically the first day of your 65th birthday month. Medicare.gov recommends you sign up when you're first eligible, even if you have Marketplace coverage.

Do You Have a Plan Yet? Where Solace Fits

If you’re still looking for health coverage after retirement, start with HealthCare.gov, a Navigator or certified assister, or a licensed insurance agent for help choosing and enrolling in a plan.

Once your coverage is active, a Solace advocate can help you understand your benefits, find providers, and work through confusing medical bills or denied claims.If you’re covered and want that support, talk to a health insurance advocate. Solace advocacy is covered by Medicare and most major insurance plans.

92% of patients report a positive impact on their care from working with an advocate.*

Check Your Eligibility →
*Based on a 2023 report by the Coalition of Healthcare Advocacy Organizations.

Eligibility varies by plan. Advocates do not provide medical or legal advice or services. Must be 18 years or older.

FAQs

How do people who retire early get health insurance?

Early retirees generally use one of four paths until Medicare starts at 65: COBRA to keep their employer plan, a Marketplace plan bought through a Special Enrollment Period, a spouse's employer plan, or Medicaid if their income qualifies. Some employers also offer retiree coverage. Each path has its own deadline, so ask employer benefits staff which options apply before your last day.

Can I retire at 62 and still get health insurance?

Leaving a job and losing job-based coverage opens a Special Enrollment Period to buy a Marketplace plan, and COBRA is also generally available for up to 18 months. Retiring at 62 means about three years of coverage to arrange before Medicare generally begins at 65. A spouse's employer plan or Medicaid may also be options, depending on your situation.

How much does health insurance cost if you retire early?

Cost depends on your age, state, plan, and income. COBRA usually costs the full premium, including the share your employer used to pay, plus up to 2%. Marketplace premiums depend on the plan you choose, and a premium tax credit may lower them based on your household income and size.

Is COBRA or the ACA Marketplace better for early retirees?

Neither is better for everyone. COBRA keeps your current plan and access to your doctors but usually costs the full premium. A Marketplace plan may cost less with a premium tax credit, but networks vary by plan. Compare the monthly cost and your doctors, and think about how long you need coverage.

How long can I keep COBRA after retiring?

COBRA generally lasts up to 18 months. It can run longer in limited cases: up to 29 months with a disability extension, or up to 36 months after a second qualifying event.

How long do I have to sign up for a Marketplace plan after I retire?

You can choose a Marketplace plan from 60 days before to 60 days after your job-based coverage ends. If you miss that window and don't qualify for another Special Enrollment Period, you may have to wait until open enrollment.

Can I switch from COBRA to a Marketplace plan?

Not whenever you choose: ending COBRA early on your own doesn't open a Special Enrollment Period, so you would generally wait until open enrollment. Reaching the end of your COBRA coverage does open one. Compare both options before you elect COBRA.

What happens to my coverage when I turn 65?

Medicare generally becomes your coverage at 65. COBRA generally ends once you become entitled to Medicare, and Marketplace coverage doesn't end on its own, so you update your application with your Medicare start date. Premium tax credits stop once you're eligible for premium-free Part A (hospital coverage).

Leaving work before 65 means making a few coverage decisions in a short window. Start with the deadline closest to your last day and compare your options. Then write down the date your Medicare coverage should begin so your earlier plan ends on time.

Once your coverage is active, a Solace advocate can take on the calls and paperwork that come with using it. Advocates make the calls and follow up for you, and one advocate stays with you as long as you need their help. If you're covered and want that support, talk to a health insurance advocate. Solace is covered by insurance. Check your eligibility.

Eligibility varies by plan. Advocates do not provide medical or legal advice or services. Must be 18 years or older.