8 Health Insurance Options for Individuals Retiring Before the Age of 65

8 Health Insurance Options for Individuals Retiring Before the Age of 65
8 Health Insurance Options for Individuals Retiring Before the Age of 65



Retirement is the time to savor your golden years, yet some seek an early start. Many, including Gen Z aspiring to retire at 59, ponder early retirement. However, they are not yet eligible for Medicare and healthcare costs loom large. Luckily, there are several health insurance options for early retirees. Let’s delve into them

Exploring Health Insurance Options for Early Retirees: 8 Considerations Before Turning 65


Facing the daunting costs of healthcare in the U.S., early retirement may seem unattainable. Fortunately, early retirees have viable health insurance options. Let’s delve into eight possibilities to find the most suitable fit for your retirement plans.


Spousal Insurance

The straightforward solution to maintain insurance coverage in early retirement is to remain on your spouse’s plan. However, challenges arise when both spouses seek early retirement or in the absence of marriage. Additional health insurance choices for early retirees are available.

Health Insurance Marketplace

An alternative to secure coverage as an early retiree is purchasing healthcare from the Health Insurance Marketplace. While costs might resemble those during employment, early retirees may find lower deductibles and copayments. Household size and income can result in premium tax credits and savings, making premiums surprisingly affordable. Explore plan options and estimate costs at healthcare.gov to plan for insurance expenses in early retirement.


Small Business Health Options (SHOP)

SHOP is a part of the Affordable Care Act (ACA) that allows small business owners to provide health insurance to their employees, including themselves and any retirees. Explore the available health plans through SHOP to find coverage that suits your needs.

Short-Term Health Insurance Plans

These plans are designed to provide coverage for a limited duration, typically ranging from a few months to a year. Short-term health insurance can be a viable option for early retirees who need temporary coverage while exploring long-term solutions.


With a significant drop in household income during early retirement, you might qualify for the Oregon Health Plan. This state-run federal program varies by location, so research the specifics for your state.


Employers must offer coverage through COBRA, though without subsidies. While a short-term solution to bridge the gap before Medicare eligibility, it can be costly. Comparing alternatives, like Marketplace plans, is crucial due to COBRA’s limitations.

Employer-Provided Health Insurance Benefit

While this choice is becoming increasingly uncommon due to escalating healthcare costs, some employers still extend health insurance as a retirement perk. Some may even contribute to monthly premiums for retirees.


It’s crucial to recognize that this retiree health benefit typically serves as a supplement to Medicare. Upon reaching Medicare eligibility, retaining the retiree health plan as a supplementary policy might be an option.


Part-Time Work or FIRE

For those eyeing early retirement, especially within the Financial Independence Retire Early (FIRE) movement, FIRE involves part-time employment, often for health care benefits. The significant advantage is the potential to exit the conventional 40-plus-hour workweek sooner. Why? Part-time work means drawing down less from your portfolio, requiring less retirement savings. Additionally, securing part-time employment with health insurance benefits can alleviate concerns.

Final Word

Despite the desire to retire earlier than the norm, the prospect of losing health insurance can be a deterrent. Fortunately, multiple options exist for health insurance for early retirees. Delve into these alternatives and leverage retirement planning resources for comprehensive preparation.


Need help? Call Health Plans in Oregon: 503-928-6918. Our assistance is at no cost to you.

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