Health Insurance for Early Retirees

Early retirement can give you more time to travel, spend time with family and enjoy the next stage of life on your terms. But if you retire before age 65, you may lose your employer-sponsored health insurance before you qualify for Medicare.¹ Fortunately, there are many early retirement health insurance options you can choose from. While Aflac doesn't offer primary health insurance for retirees, we do provide supplemental coverage that can help reduce your out-of-pocket costs for medical care in early retirement.

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Key Takeaways

While you must be 65 to qualify for Medicare, there are several other health insurance options for early retirees.²
Early retirement health insurance options may include a spouse's health plan, Marketplace coverage, COBRA or private health insurance.³
Aflac's supplemental insurance plans can help close gaps in your coverage and pay cash benefits to reduce your out-of-pocket costs after a covered medical event.

Can I get Medicare as an early retiree?

Medicare is a government program designed to help people age 65 and over pay for necessary healthcare.4 If you plan to use Medicare as your health insurance in retirement, you'll typically need to wait until you turn 65.

Can I get health insurance as an early retiree?

Yes, you can get health insurance as an early retiree. Your options depend on your state, income and dependents.

If you already have employer-sponsored health insurance, you may be able to extend it for a few extra years after early retirement. If not, you may be eligible for a special enrollment period, which means you may be able to enroll in a new health insurance plan outside the standard open enrollment period.⁵

Learning about qualifying life events for insurance can help you plan for your change in coverage.

Health insurance options for early retirees

If you can't extend your employer-sponsored health insurance, you can still get a plan through the government, your state or a private company. Some potential options include:

Spouse's health insurance

If your spouse is still working and has employer-sponsored coverage, you may be able to join their health plan. Just keep in mind that costs, coverage and enrollment rules can vary by policy.

Health Insurance Marketplace

The Health Insurance Marketplace allows you to buy health insurance through your state. Depending on your income and insurance plan, you may be able to receive certain tax benefits and lower your out-of-pocket costs.⁶

COBRA

COBRA (Consolidated Omnibus Budget Reconciliation Act) helps employees maintain their employer-provided health insurance benefits after they lose their jobs or have their hours scaled back. COBRA can extend your health insurance coverage anywhere from 18 to 36 months.⁷

If you were forced into retirement involuntarily or elected to work fewer hours, you may be COBRA-eligible. Businesses with more than 20 employees are typically required to honor COBRA.⁸

Private health insurance

You can always buy health insurance from a private company. While private health insurance may offer better coverage and benefits, it can be more expensive than a state-run program.⁹

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How much does early retirement health insurance cost?

Early retirement health insurance costs depend on the plan you choose and your coverage needs. Some factors that can impact your costs include your state, income, dependents and whether you choose a private or public health insurance plan. As noted earlier, private health insurance may be more expensive than government-run programs.¹⁰

Factors to consider when getting early retirement health insurance

When choosing an early retirement health insurance policy, consider the following factors:

Insurance provider and coverage: Compare insurance companies and the coverage options to find a plan tailored to your needs.
Premiums: Make sure you choose an early retirement health insurance plan with premiums that fit your monthly budget.
In-network providers: Before getting an early retirement health insurance plan, check to see if your current healthcare providers are in-network.
Out-of-pocket costs: Carefully consider how much you'll pay in out-of-pocket expenses.

How to supplement early retirement health insurance

Supplemental insurance can offer additional coverage for costs your primary insurance plan doesn't cover. Aflac offers a wide range of supplemental plans that early retirees can use, including:

Cancer insurance: Our cancer insurance can pay cash benefits to help cover cancer treatments after a diagnosis. You can use the funds to help cover a variety of expenses, from medical bills to groceries.
Critical illness insurance: A critical illness insurance policy can help give you added financial security if you suffer a covered illness, such as a heart attack or stroke.
Hospital insurance: Hospital insurance pays cash benefits to offset expensive hospital bills that aren't fully covered by your primary health insurance.
Accident insurance: Accident insurance can provide a cash benefit for financial support during your recovery from a covered accident.

You can reach out to an Aflac agent to learn more about our supplemental health insurance for seniors if you're nearing retirement age.

Explore Aflac's early retirement health insurance options

If you want to retire early, it's important to consider your health insurance after retirement. You may be able to join a spouse's plan, enroll in COBRA, or purchase Marketplace or private insurance.

Regardless of the plan you choose, Aflac's supplemental insurance can help close coverage gaps and help further reduce your out-of-pocket expenses. We also offer other coverage options, including life insurance policies that can help support your loved ones financially after you pass away.

Chat with an agent today to learn more about our supplemental plans and get a quote.

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