If I retire early, should I buy health insurance through the health insurance marketplace?

Retiring early can have significant implications for your health insurance coverage. The “If I Retire Early, Should I Buy Health Insurance Through The Health Insurance Marketplace?” flowchart is designed to help you understand and weigh your options.

The flowchart considers factors such as your eligibility for Medicare, the availability of coverage through your former employer, coverage under your spouse’s health insurance, and COBRA considerations. Additionally, the chart addresses the Premium Assistance Tax Credit, which may be available to help offset the cost of health insurance purchased through the Health Insurance Marketplace.

If you retire before age 65, you will not be eligible for Medicare, which can leave a gap in your health insurance coverage. However, you may be able to purchase coverage through the Health Insurance Marketplace or obtain coverage through your former employer’s retiree health plan. COBRA may also be an option, although it can be expensive.

If you are not eligible for Medicare and do not have access to coverage through your former employer or your spouse’s health insurance, purchasing coverage through the Health Insurance Marketplace may be a good option. Depending on your income, you may be eligible for the Premium Assistance Tax Credit, which can help make coverage more affordable.

It is important to carefully consider your options and costs when it comes to health insurance coverage in retirement. By using the attached flowchart and working with a financial advisor or insurance professional, you can make informed decisions about your coverage and ensure that your health care needs are met.

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Robert J. Pyle, CFP®, CFA, AEP® founded Diversified Asset Management, Inc., in 1996 to provide personalized, comprehensive wealth management services to successful individuals, families, single women, and business owners. His specialty is addressing the complex financial needs of self-employed professionals, corporate executives, and small-business owners. Our disclosure can be found here. The views, opinion, information, and content provided here are solely those of the respective authors, and may not represent the views or opinions of Diversified Asset Management, Inc. Diversified Asset Management, Inc. cannot guarantee the accuracy or currency of any such third party information or content, and does not undertake to verify or update such information or content. Any such information or other content should not be construed as investment, legal, accounting, or tax advice.

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