Early retirement is not ready until health insurance is paid for. Count the monthly bill, the deductible, other medical costs, and income that may change Marketplace savings.
Start with the exact coverage gap
Write down the date work coverage ends and the date Medicare should begin for each person. A couple may have two different dates. One person may be able to join the other person's work plan.
Do not use one price for several years. Your age, home, income, plan, and savings on a Marketplace plan can change each year.
Compare the four common paths
Compare COBRA, a spouse's work plan, retiree coverage, and an Affordable Care Act Marketplace plan. A part-time job with health benefits may be another choice.
- COBRA may preserve the same network temporarily, but the household generally pays the full cost.
- A spouse's plan may be attractive, but verify the enrollment window and dependent premium.
- Retiree coverage can be valuable, yet enrolling in it may affect eligibility for Marketplace savings.
- Marketplace premiums and cost-sharing depend on plan design, location, household size, and projected income.
Understand why income planning affects insurance cost
The Marketplace uses household income to decide if you get help with the cost. Work pay, pensions, investment gains, and money moved or taken from retirement accounts may count.
This does not mean you should always keep income low. It means your health plan, taxes, and withdrawals need to be checked together.
Budget beyond the premium
Do not compare only the monthly bill. Check the deductible, the most you may pay in a year, drugs, doctors, and hospitals. A cheaper plan may cover less of the care you need.
Make one estimate for a normal year and one for a costly year. Keep enough emergency cash for the costly year.
Protect the enrollment handoff
Losing a work plan may give you a special time to join a Marketplace plan. Medicare also has signup dates around age 65. Missing a date can cause a gap or a late fee.
Put the dates on your calendar months early. Check the rules if either spouse still works or puts money in a Health Savings Account.
Primary sources
Rules and limits change. Use these official sources to verify details for the year in which you act.
See what your current numbers imply.
Start with a transparent estimate, then use this guide to decide which assumption deserves a deeper look.
Use the retirement calculator →