Haris Ashley
If you're 64 and looking to retire, you may be concerned about the cost of health insurance. In the US, Medicare is only available to those 65 or older, so you'll need to bridge the gap until you become eligible. The cost of health insurance varies depending on your location, health status, and the type of plan chosen, but there are several options to help you afford it. You can use the Health Insurance Marketplace to buy an insurance plan, or, if you've lost your job, you can benefit from your company's group health plan for a limited time through the Consolidated Omnibus Budget Reconciliation Act (COBRA). You may also be able to join your spouse's employer-sponsored health insurance plan, or use a high-deductible health plan that meets federal tax standards, allowing you to open a Health Savings Account (HSA).
| Characteristics | Values |
|---|---|
| Medicare eligibility age | 65 |
| Average cost of health insurance for 62- to 65-year-olds | $800 to $1,200 per month (ACA Marketplace) |
| $200 to $600 per month (Employer-Sponsored) | |
| $700 to $1,500 per month (COBRA) | |
| Average premium for one person in an ACA plan | $381 to $507 per month in 2025 |
| Eligibility for COBRA | Losing your job, reducing your hours, switching jobs, or losing a spouse |
| Medicaid eligibility | Based on household income |
| Health Savings Account (HSA) eligibility | 55 or older |
Explore related products
What You'll Learn
The average cost of health insurance for 62- to 65-year-olds
The cost of health insurance for 62- to 65-year-olds varies depending on several factors. Firstly, the type of plan chosen is a significant determinant of the cost of health insurance. For instance, the average cost of an ACA marketplace plan is $800 to $1,200 per month without subsidies, while an employer-sponsored plan costs $200 to $600 per month. COBRA, which allows you to retain your previous employer's group health plan for a limited time after leaving your job, can cost $700 to $1,500 per month, depending on the specifics of the plan.
Additionally, location, health status, and age are other factors that influence the cost of health insurance. The base rate for insurance premiums is typically calculated using the rate for a 21-year-old, with older individuals facing higher multipliers. Federal regulations limit how much insurers can increase premiums based on age, but some states have their own guidelines or exclude age as a factor. Furthermore, the specific costs covered by the plan, such as prescription drugs, dental or vision care, and long-term care insurance, will also impact the overall price.
It is worth noting that Medicare, a government-funded health coverage option, is available to US citizens aged 65 and over or those with qualifying disabilities. Medicare Part A, which covers hospital insurance, is typically free if you have paid Medicare taxes for a sufficient period. However, there are costs associated with other parts of Medicare, such as Part B, which covers doctor and medical insurance, and Part D, which covers prescription drugs.
To bridge the gap between retirement and Medicare eligibility, you can consider an HSA (Health Savings Account). This allows you to build up a tax-free reserve to cover healthcare expenses during early retirement. Contributions are tax-deductible, and the funds can be used for various medical expenses, including deductibles, copays, and qualified expenses.
Lastly, it is recommended to shop around and compare different insurance plans to find the most suitable option. A financial advisor can assist in estimating healthcare costs and identifying the best coverage options to ensure you have adequate health insurance before Medicare eligibility at 65.
Medical Insurance and IVF: What's Covered?
You may want to see also
Explore related products
The pros and cons of COBRA
If you are 64 years old, you are likely retired or planning to retire soon. If you are retired, you are probably no longer eligible for your employer's health insurance benefits. If you are still employed, you are likely to be eligible for your employer's health insurance benefits. However, it is important to check with your employer to confirm your eligibility.
If you are no longer eligible for your employer's health insurance benefits, you may be able to continue your coverage under COBRA. COBRA is a health insurance program that allows eligible employees and their dependents to continue their health insurance coverage when the employee loses their job or experiences a reduction in work hours. Here are some pros and cons of COBRA to help you decide if it is the right choice for you:
Pros of COBRA
- COBRA allows you to keep your same health insurance policy and coverage in the event that you lose your job or experience a reduction in work hours. This includes coverage for pre-existing conditions and prescription drugs.
- With COBRA, you don't have to pay for medical expenses out of pocket, as you are still privy to the same group rate as you had with your previous job.
- COBRA coverage can be used for 18 to 36 months, depending on why you need it, and it can be extended depending on qualifying events.
- COBRA allows you to maintain the same plan as you would if you were still an employee, and it can help bridge the gap until you qualify for another health plan. Spouses, former spouses, and dependent children can also opt into the former employer's health plan under COBRA.
- COBRA can be more affordable than purchasing private health insurance, which can be expensive and may offer limited coverage options.
Cons of COBRA
- The cost of COBRA can be high, as you are now responsible for paying the full premium, including the portion that your employer previously contributed, plus a 2% service fee.
- COBRA coverage is only available for a limited period, typically 18 to 36 months, and it is dependent on your former employer continuing to offer the same health insurance plan. If your former employer discontinues or changes the health insurance plan, you will no longer have access to COBRA coverage.
- COBRA does not offer the flexibility to choose a policy that best suits your individual needs, as you are limited to the plan offered by your former employer.
In conclusion, COBRA can be a valuable option for those who need temporary health insurance coverage after losing their job or experiencing a reduction in work hours. However, it is important to consider the high cost and limited duration of COBRA coverage when deciding if it is the right choice for you. It is recommended to weigh the pros and cons of COBRA against other available options, such as private health insurance or government-sponsored plans like Medicare or the Affordable Care Act (ACA).
Life Insurance Without a Medical Exam: Is It Possible?
You may want to see also
Explore related products
$14.99
The benefits of a Health Savings Account (HSA)
If you are 64, you are likely to be retired or considering retirement. If you are retired, you are probably no longer covered by your employer's health insurance and are not yet eligible for Medicare, which only becomes available at 65. This means that you will need to purchase private health insurance, which can be very expensive.
A Health Savings Account (HSA) can be a powerful tool to help you afford medical insurance at this age. Here are the benefits of an HSA:
- Tax advantages: HSAs offer a triple-tax advantage. Contributions are tax-deductible, growth is tax-deferred, and withdrawals are tax-free when used for qualified medical expenses. This means that you can reduce your taxable income, grow your savings without being taxed, and spend your savings without paying tax.
- Flexibility: HSA funds can be used for a wide range of qualified medical expenses, including deductibles, copays, prescriptions, and qualified expenses like dental or vision care. You can also use your HSA to pay for routine health care expenses or save for future expenses.
- Rollover: Any unused funds in your HSA roll over from year to year and are available to you anytime. This means that you can build up a reserve of tax-free money to cover healthcare expenses in early retirement.
- Investment opportunities: You can invest your HSA balance in a wide range of mutual funds, providing the potential for federal tax-free earnings to help you build your account balance over time.
- Spousal contributions: Although you cannot share a joint HSA with your spouse, your spouse can contribute to your HSA family plan if they are eligible for coverage.
- Longevity: The funds in your HSA go with you during a job change or retirement, and when you designate a beneficiary, the benefits of your HSA will transfer to your heirs.
New York Life Insurance: Medical Exam Needed?
You may want to see also
Explore related products
How to shop around for the best deal
If you are 64 and looking for affordable medical insurance, you have a few options to consider. The first step is to determine your budget and what you can afford to pay monthly or annually. The next step is to shop around for the best deal. Here are some ways to do that:
Research different insurance providers
You can start by researching different insurance providers in your state and comparing their plans, prices, and benefits. You can use websites like healthcare.gov to explore the options available to you. It is important to understand the different types of plans, such as HMO (Health Maintenance Organization) or PPO (Preferred Provider Organization), and the benefits and restrictions of each. Additionally, consider using an insurance broker who can help you navigate the different options and find a plan that suits your needs and budget.
Consider the Affordable Care Act (ACA) Marketplace
The ACA has made it easier for individuals to purchase health insurance, especially if they have pre-existing conditions. The ACA provides income-based premium tax credits and subsidies that can make coverage more affordable. You can use the Health Insurance Marketplace to compare plans and prices from different providers and see if you qualify for any subsidies or tax credits.
Evaluate the coverage and benefits offered
When shopping around, carefully evaluate the coverage and benefits offered by each plan. Consider your own health needs and those of any family members you need to cover. Look at factors such as deductibles, copays, out-of-pocket maximums, prescription drug coverage, and whether your preferred doctors and hospitals are in-network.
Opt for a high-deductible health plan
If you are relatively healthy and do not anticipate major medical expenses, you may consider a high-deductible health plan. These plans typically have lower monthly premiums but higher out-of-pocket costs when you need medical services. You can pair a high-deductible plan with a Health Savings Account (HSA) to save money tax-free for qualified medical expenses.
Explore other options like COBRA, Medicaid, or spouse's plan
Depending on your circumstances, you may be able to continue your employer-sponsored insurance through COBRA, which allows you to keep your insurance for a limited time after leaving a job. Additionally, if your spouse is still working, you may be able to join their employer-sponsored plan. Finally, if your income is within certain limits, you may qualify for Medicaid, which provides affordable health insurance for low-income individuals and families.
By following these steps and carefully considering your options, you can find the best deal on medical insurance that fits within your budget and meets your health needs.
Midyear Medical Insurance: Adding Employees to Your Plan
You may want to see also
Explore related products
$8
$9.97 $19.99
The impact of a spouse's insurance on your options
If you are 64 and your spouse is still working, you can save a lot of money by being covered by their insurance until you turn 65 and become eligible for Medicare. This is a common situation, as 70% of Americans retire before they are eligible for Medicare.
If your spouse can get health insurance through their employer, it is usually the most affordable option for a health insurance plan. However, some employers may charge a spousal surcharge to cover you, so it is worth checking whether it is cheaper to pay the surcharge or to get separate insurance.
If both you and your spouse can get health insurance from your employers, you have a few options. You could get separate coverage, with each spouse getting insurance for themselves, or you could decide that one spouse's company offers a better plan and cover the whole family under that plan.
If you are both in good health, you may save the most money with a family health insurance plan. However, if one spouse has chronic health issues and the other is healthy, you may save more by choosing a lower-deductible plan for one partner and a higher-deductible, lower-cost plan for the other.
If you are no longer working, you may still be eligible to benefit from your former company's group health plan for a limited time through the Consolidated Omnibus Budget Reconciliation Act (COBRA). However, this can be very expensive, costing $700 to $1,500 per month.
Another option is to purchase private health insurance through the health insurance marketplace established by the government after the passage of the Affordable Care Act (ACA). People between the ages of 55 and 64 account for 24% of plans purchased on the government exchange. The average premium for one person in an ACA plan ranged from $381 to $507 per month in 2025, but costs can vary by state, your individual plan coverage, and your age.
To save money, you could consider a high-deductible health plan, which will likely have lower premiums. You can then use a Health Savings Account (HSA) to pay for out-of-pocket medical expenses.
How to Add Medical Services to Your New Insurance
You may want to see also
Frequently asked questions
If you are 64, you are likely retired or planning to retire soon. In this case, you have several options for health insurance until you turn 65 and become eligible for Medicare. These include:
- Using the Consolidated Omnibus Budget Reconciliation Act (COBRA) to continue your employment-related benefits.
- Enrolling in coverage through the health insurance Marketplace in your state.
- Applying for Medicaid if your household income is low.
- Enrolling in your spouse's health plan, if applicable.
- Opting for a short-term insurance plan.
- Using an HSA (Health Savings Account) to cover out-of-pocket medical expenses.
- Choosing a high-deductible health plan to bring down your premiums.
The cost of COBRA can vary depending on your previous employer's plan. It is typically more expensive than employer-sponsored insurance but less expensive than paying for health insurance on your own. For example, one person's COBRA insurance was priced at over $1,000 per month.
The average marketplace health insurance plan without Medicare costs about $946 for a Bronze plan for 60-year-olds, but this can vary depending on factors like location, health status, and the type of plan chosen. The average premium for one person in an ACA plan ranged from $381 to $507 per month in 2025.
It is recommended to shop around and investigate all possible sources of medical insurance to find the best option for you. You can also consider the following:
- Opting for a high-deductible, high copay, and/or high out-of-pocket limit plan to lower your premiums.
- Using the Special Enrollment Period to enroll in a Marketplace plan after losing your job-based coverage.
- Taking care of your health throughout your life to reduce healthcare costs in retirement.
Yes, you may also be able to get coverage through your spouse's employer-sponsored plan or by getting another job that offers insurance after retirement. Additionally, 24% of large firms extend healthcare coverage to retirees, so check if your former employer is one of them.
