| Early Retirement and Health Insurance: What You Need To Consider
By: SmartFinancial
NEWPORT BEACH, Calif. - Oct. 19, 2023 - PRLog -- The Challenge of Early Retirement Health Insurance - Retiring before the age of 65 means you won't yet qualify for Medicare (https://smartfinancial.com/what-is-medicare), the government-sponsored health insurance program. This gap in coverage can be daunting because private health insurance that is not subsidized by an employer is expensive if you don't qualify for government subsidies guaranteed through the Affordable Care Act (ACA).
Private health insurance premiums can be a significant financial burden on a fixed income. If you're creating a budget for your retirement years, add on the cost of a health insurance premium each month.
Losing health coverage after you retire qualifies you for a Special Enrollment Period (https://smartfinancial.com/special-enrollment-period), which means that you can enroll in a health plan even if it's outside the annual Open Enrollment Period, which takes place in November.
Here are some tips on where to buy a health insurance plan during the interim years in early retirement, before Medicare kicks in.
Where To Buy Health Insurance During Early Retirement
There are several ways to secure health insurance, and there are ways you can save on it too. Here are some options:
Disability Insurance
You may qualify for Medicare earlier than age 65, if you're eligible for Social Security Disability Income (SSDI). You will automatically get enrolled into Medicare if you apply and are determined to be disabled as per eligibility requirements.
COBRA Insurance
If you retire before age 65, you may be eligible for COBRA continuation coverage (https://smartfinancial.com/how-long-does-health-insurance...), which allows you to keep your employer-provided health insurance for up to 18 months. While COBRA is expensive, it can bridge the gap until you qualify for Medicare, depending on how early you plan to retire. If you are retiring at, say, age 62, Cobra coverage won't offer coverage the entire time you are ineligible for Medicare.
Compare Health Insurance Plans Online
Compare and purchase individual or family plans from an insurance-comparison website, like SmartFinancial, by entering your zip code and offering your information one time, to see which plans are available in your area. Premiums are often income-based, so you may qualify for subsidies that reduce costs. If you do not qualify for subsidies, you will have several options at different price-points for private plans. https://smartfinancial.com/health-insurance-coverage-for-...
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