Early retirement can bring many changes—including how you get health insurance. Medicare usually doesn’t start until age 65, so if you retire at a younger age, you may need to enroll in another type of coverage.

Finding the right plan for your health, budget and retirement timeline starts with understanding your choices. Here are five options to consider if you’re thinking about retiring before age 65.

1. Stay with your employer-sponsored health plan

The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) is a federal law that lets eligible workers continue their employer coverage after leaving a job for up to 36 months.¹

You may qualify for COBRA if your coverage is ending due to:¹

• Job loss
• Resignation
• Reduced hours
• Divorce
• Death of a covered employee

What does COBRA cover?

COBRA lets you keep the same health plan you had while working. Your benefits and provider network usually stay the same.

How much does COBRA cost?

With COBRA, you can expect:¹

• A monthly premium, which is often higher because your employer no longer contributes
• A 2 percent administrative fee may apply

Who may benefit from COBRA?

COBRA may be a good fit if you:

• Want to keep seeing your current doctors
• Are happy with your current plan
• Need short-term coverage while exploring other options

2. Affordable Care Act (ACA) health plans

ACA plans are offered through the Health Insurance Marketplace on a state-by-state basis.² You can enroll during the annual Open Enrollment Period, which typically runs from November 1 to January 15.

What do ACA plans cover?

ACA plans must cover essential health benefits, which include:³

• Certain preventive care services
• Hospitalization
• Emergency services
• Prescription medications
• Lab work
• Other services depending on the plan

How much do ACA plans cost?

Costs depend on factors such as:³

• The plan you choose
• Your location
• Your age and the ages of others on the plan
• Household income
• Tobacco use

You may also pay a deductible, copays or coinsurance for covered services. Premium tax credits may be available to reduce your premiums and out-of-pocket costs.³

Who may benefit from an ACA plan?

ACA plans may be a good fit if you:

• Want comprehensive coverage for care
• Need a long-term solution until Medicare starts
• May qualify for premium tax credits

3. Short-term limited duration health insurance

Short term health insurance provides temporary coverage that can start quickly—sometimes the day after you apply.⁵ The length of these plans vary by state, but may last up to nearly a year of coverage.⁵

What does short term health insurance cover?

Most short term health insurance plans include coverage for:⁵

• Doctor visits
• Hospital care
• Emergency services
• Lab tests and imaging

Short term insurance plans are not required to follow all ACA rules. For example, most short term plans don’t offer coverage for preexisting conditions And they are subject to medical underwriting.⁵

How much does short term insurance cost?

Premiums for short term health insurance are usually less expensive than other plans. However, like most plans, the exact cost depends on the plan. You can expect these typical payments:⁵

• Monthly premium
• Deductibles
• Copays
• Coinsurance

Who may benefit from short term insurance?

Short term insurance may be a good fit if you:

• Need coverage quickly
• Are between comprehensive medical plans
• Want temporary coverage while exploring long-term options
• Are generally in good health (no preexisting conditions)

Retiring early? Don’t let your healthcare coverage lapse. Explore your short-term limited duration insurance coverage options online now.

4. Extended short term health insurance

Extended short term health insurance offers three terms of short term, limited-duration coverage that can last nearly three years.⁴ You can apply for this type of insurance any time, even outside of ACA enrollment periods. Extended short term healthcare coverage continues for 3 consecutive terms until you reach the plan’s maximum length.⁴

What does extended short term health insurance cover?

Coverage varies by plan, but many include:⁴

• Preventive care
• Doctor visits
• Hospital care
• Prescription medications

Extended short term health insurance plans are not required to follow all ACA rules. However, these extended plans may cover preexisting conditions after the first year of coverage and are medically underwritten.

How much does extended short term health insurance cost?

Exact costs will vary by plan, but you can expect:⁴

• Monthly premium
• Deductibles
• Copays
• Coinsurance

Who may benefit from extended short term health insurance?

Extended short term health insurance may be a good fit if you:⁴

• Need coverage outside ACA enrollment periods
• Would like coverage for more than a few months
• Want to apply once for multiple years of coverage

Finding coverage doesn’t have to be complicated. Browse extended short term health insurance plans online to get started.

5. Subscription and non-insurance discount programs

If you want help managing certain medical costs, subscription services or discount programs may be useful to have in addition to a health insurance plan.

These programs may reduce costs for:

• Telehealth visits
• Mental health care
• Dental services
• Prescription medications

What do subscription and discount programs include?

These non-insurance programs vary. For example:

• A dental discount program offers lower prices on dental services from participating providers
• A telehealth subscription provides virtual appointments at reduced rates

How much do subscription and discount programs cost?

Fees depend on the program and may be based on other factors, such as where you live.

Some programs, like prescription discount cards, may be available at no cost.

Who may benefit from subscription and discount programs?

These programs may be a good fit if you:

• Want convenient virtual care
• Need help lowering routine healthcare or prescription costs
• Want additional support alongside traditional insurance

The bottom line: If you’re thinking about retiring before age 65, it’s important to consider your healthcare coverage. There are several options that can help you bridge the gap between comprehensive medical plans until Medicare begins. Choose a plan or program that fits your needs, budget and timeline.

Have questions about your coverage options? Call 1-844-211-7730 to speak with a licensed insurance agent, or browse plans online to find your fit.

Sources:

1. Healthinsurance.org. “COBRA continuation coverage.” Accessed February 25, 2026. Retrieved from https://www.healthinsurance.org/glossary/cobra/
2. KFF. “What is the health insurance marketplace?” September 29, 2025. Retrieved from https://www.kff.org/faqs/faqs-health-insurance-marketplace-and-the-aca/marketplace-basics/what-is-the-health-insurance-marketplace/
3. Healthinsurance.org. “What is Obamacare (Affordable Care Act) Marketplace coverage?” Accessed February 25, 2026. Retrieved from https://www.healthinsurance.org/obamacare/
4. UnitedHealthcare. “TriTerm medical insurance.” Accessed February 25, 2026. Retrieved from https://www.uhc.com/individuals-families/triterm-medical-insurance
5. Healthinsurance.org. “Short-term health insurance: How it works and who it’s for.” Accessed February 25, 2026. Retrieved from https://www.healthinsurance.org/short-term-health-insurance/

Part Number:
53130-X-0326