3 Ways Early Retirees Can Minimize Their Health Insurance Costs

Until you can go on Medicare, you’ll need health insurance on your own, and of course that can be pricey. Subsidies through the Affordable Care Act can be a big help, but you need to manage your income to qualify. Here are three tips to help make that happen.

A woman holds a drawing of a smile in front of her mouth
(Image credit: Getty Images)

Rising health care costs can be a risk at any age. If you want to or need to retire early, health care costs are an especially important part of retirement planning, since Medicare doesn’t kick in until age 65. That means you need to find health insurance at a time when you’re vulnerable to higher costs and also lack a paycheck.

The Affordable Care Act (ACA) was intended to make insurance more affordable and equitable, eliminating previous pre-existing condition requirements and tying income to federal health insurance subsidies. These subsidies are triggered, provided your income meets certain thresholds, when you purchase health insurance either through the federal health care exchange at healthcare.gov or a state insurance exchange. In 2021, there were 15 state-run marketplace exchanges that serve residents of those specific states; everyone else is served by the federal ACA marketplace exchange.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%
https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-200-80.png

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up
Disclaimer

This article was provided by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

To continue reading this article
please register for free

This is different from signing in to your print subscription


Why am I seeing this? Find out more here

Brady Bellue
President, Bellue & Associates Financial Management

Brady Bellue has been in financial services since 1997. He attributes his success to lots of research, being proactive, continually learning and always being available to his clients. Brady received his early experience in Chicago and New York before moving back to Wisconsin, where he has run his own business, Bellue & Associates Financial Management, since 2000. He prides himself on staying on the forefront of financial trends and innovations.