Health insurance before Medicare: Coverage after early retirement

Retiring early? Good for you! Early retirement is something many of us dream of, and you’re making it happen. To enjoy your retirement to the fullest, have a health insurance plan lined up that will provide coverage until you turn 65 and Medicare becomes available. Thanks to recent changes in health care laws, you may have more options than ever before.

Coverage through the state exchanges

Depending on what state you live in, you may be able to purchase private insurance through a state-run health insurance exchange. By law, these plans cover essential health benefits, pre-existing conditions and preventive care. Some plans include dental coverage. For those that don’t, free-standing dental coverage is available.

If you apply through your state’s exchange, you may qualify for premium tax credits and lower out-of-pocket costs, depending on your income and household size. In addition, some states are also expanding Medicaid to cover more people with limited income.

Coverage through the Federal Government exchange

If you live in a state without its own health care exchange, you can purchase health insurance through the federal government’s Health Insurance Marketplace. The plans available there offer the same basic coverage as those offered through the state exchanges, and you may qualify for tax credits.

Coverage on the open market

If you prefer, you may purchase health insurance directly from the provider of your choice, rather than go through the state or federal exchanges. Plans purchased directly from providers offer the same basic benefits as those purchased on an exchange. However, if you buy insurance outside of an exchange, you will not be eligible for premium tax credits or lower out-of-pocket costs based on your income.

Avoid the fee

If you’re thinking about living without health insurance, consider this: According to Healthcare.gov, by law, most people must be covered by some kind of health insurance plan or you may have to pay a fee. There are all kinds of reasons to stay covered and stay healthy, especially now that you’re retired. Explore your options today and find coverage that will meet your needs.