Retiring Before 65Bridging health coverage from early retirement to Medicare

Health insurance between early retirement and 65

The main ways to bridge coverage before Medicare: COBRA, Marketplace plans with subsidies, a spouse's plan, retiree coverage and part-time work.

Medicare starts at 65 for most people. Retire at 60 and you need five years of coverage from somewhere else.

The main options

Illustrative yearly cost to bridge to Medicare (single person, example premiums) $0 $2,000 $4,000 $6,000 $8,000 $10,000 $9,600 COBRA (18 mo max) $8,400 Marketplace, no subsidy $2,400 Marketplace, with subsidy Per year
Example figures only. Marketplace subsidies depend on household income.
  1. COBRA: keep your employer plan for up to 18 months, paying the full premium plus up to 2%.
  2. Marketplace (HealthCare.gov or your state exchange): premium tax credits depend on income, so early retirees who control their taxable income can get large subsidies. Washington runs its own exchange, Washington Healthplanfinder.
  3. A spouse's employer plan.
  4. Retiree coverage from a former employer, if offered.
  5. Part-time work with benefits.

Plan the switch at 65

Your Initial Enrollment Period starts three months before your 65th birthday month; see the month-by-month timeline. Marketplace coverage does not protect you from the Part B penalty, so don't stay on it past your Medicare start.

Questions people ask

How long does COBRA last?

Usually up to 18 months.

Can early retirees get Marketplace subsidies?

Yes, based on household income.

Does Marketplace coverage delay Part B without penalty?

No.

When should I sign up for Medicare?

During your Initial Enrollment Period around 65.

Independent educational site. Not affiliated with or endorsed by the U.S. government, the federal Medicare program, or any insurance company. Figures are 2026 amounts published by CMS unless noted; check Medicare.gov for your situation.