Ages 50–64 · Before Medicare
Health insurance for early retirees: bridging to 65 in Michigan
Retiring before Medicare means buying your own coverage for a few years, and the income you draw decides your tax credit. Here’s how to plan it, with real Michigan prices.
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- Guaranteed issue
- Income planning
- Coverage until 65
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Covering the years between work and Medicare
Medicare generally starts at 65. If you retire at 58, 60 or 62, you need coverage for the years in between. The common options:
- A Marketplace plan (HealthCare.gov). Guaranteed issue, with no health questions, and the only way to get a premium tax credit.
- Retiree coverage from your former employer, if it’s offered. Compare its cost and network with the Marketplace.
- COBRA, generally up to 18 months after you leave the job. Useful if you’re mid-treatment or have met your deductible. See COBRA vs. Marketplace.
- A working spouse’s plan, if one is available.
Leaving your job is a Special Enrollment event, so you don’t have to wait for Open Enrollment. You have 60 days around the date your job coverage ends. [HealthCare.gov]
Age matters a lot for price
Marketplace premiums rise with age. In Kent County in 2026, the benchmark Silver plan cost $471.47 a month at age 40 and $1,001.22 at age 60. [CMS QHP Landscape PY2026]
For a married couple both around 60, full-price premiums can top $2,000 a month. That’s why the tax credit, and the income you report, matter so much in these years.
Plan my bridge to 65Your retirement income decides your tax credit
The Marketplace uses modified adjusted gross income (MAGI). For early retirees, HealthCare.gov says to:
- Count most IRA and 401(k) withdrawals, pensions, capital gains, interest and dividends (including tax-exempt interest).
- Count all Social Security, taxable and non-taxable, if you claim early.
- Not count qualified distributions from a designated Roth account.
Source: HealthCare.gov, “What’s included as income.”
The 400% line. For 2027 coverage, there’s no federal credit above 400% of the poverty level: about $63,840 for one person, and roughly $86,560 for a couple (using the 2026 poverty guidelines that apply to 2027 coverage). [healthinsurance.org; HHS poverty guidelines]
Below it, you’re expected to pay at most 10.22% of income for the benchmark Silver plan in 2027, and less at lower incomes. [IRS Rev. Proc. 2026-26]
Which account you draw from, and when, can move you across that line. Plan withdrawals with your financial or tax professional. We don’t give tax or investment advice.
2026 premiums at ages 40 and 60, by county
| County (2026) | Insurers | Lowest Bronze, age 40 | Benchmark Silver, age 40 | Benchmark Silver, age 60 |
|---|---|---|---|---|
| Kent (Grand Rapids) | 7 | $356.39 | $471.47 | $1,001.22 |
| Wayne (Detroit) | 5 | $348.64 | $507.80 | $1,078.37 |
| Oakland (Troy) | 5 | $345.23 | $507.18 | $1,077.07 |
| Macomb (Warren) | 5 | $345.23 | $507.18 | $1,077.07 |
| Washtenaw (Ann Arbor) | 5 | $421.33 | $488.96 | $1,038.38 |
| Genesee (Flint) | 6 | $380.93 | $388.03 | $824.03 |
| Ingham (Lansing) | 5 | $416.21 | $448.22 | $951.85 |
| Kalamazoo | 6 | $422.01 | $449.91 | $955.44 |
| Ottawa (Holland) | 6 | $356.39 | $471.47 | $1,001.22 |
| Muskegon | 5 | $356.39 | $471.47 | $1,001.22 |
| Saginaw | 4 | $400.90 | $632.60 | $1,343.40 |
| Grand Traverse (Traverse City) | 4 | $375.09 | $591.88 | $1,256.93 |
Source: CMS QHP Landscape Individual Market Medical file, plan year 2026, computed by county. Monthly full-price premiums for non-tobacco users before any premium tax credit. “Benchmark” is the second-lowest-cost Silver plan, which sets the size of the tax credit. 2027 plans and prices aren’t published yet.
When you turn 65
Marketplace coverage doesn’t end on its own when Medicare starts. Update your application to end it; you can report your Medicare start date up to 3 months ahead. Once you have Medicare Part A, you no longer qualify for Marketplace savings. [HealthCare.gov, Medicare and the Marketplace]
A younger spouse
If one of you starts Medicare first, the younger spouse can keep or start a Marketplace plan until their own Medicare begins. When you end coverage for the person starting Medicare, confirm the plan for everyone staying on.
This page covers health insurance before 65. It doesn’t describe or compare Medicare plans.
2-minute advisor Q&A
Retiring before 65: your health insurance plan
A Nexus advisor answers the questions we hear most. (Video coming soon.)
- What are my options before Medicare?
- How do IRA withdrawals affect my tax credit?
- What happens when I turn 65?
Frequently asked questions
How do I get health insurance if I retire before 65 in Michigan?
Most early retirees use a Marketplace plan from HealthCare.gov, retiree coverage from a former employer, COBRA, or a spouse's plan. Leaving your job gives you a 60-day Special Enrollment Period, so you don't have to wait for Open Enrollment.
Do IRA and 401(k) withdrawals count as income for Marketplace savings?
Most do. HealthCare.gov counts most IRA and 401(k) withdrawals and all Social Security, taxable and non-taxable. Qualified distributions from a designated Roth account aren't counted.
How much does health insurance cost at 60 in Michigan?
It depends on county and plan. In 2026 the benchmark Silver plan for a 60-year-old was about $824.03 a month in Genesee County and $1,343.40 in Saginaw County, at full price before any tax credit, according to the CMS plan file.
Is there an income limit for ACA subsidies in 2027?
Yes. For 2027 coverage there's no federal premium tax credit above 400% of the poverty level, about $63,840 for one person, unless Congress changes the law.
What happens to my Marketplace plan when I turn 65?
It doesn't end automatically. Update your Marketplace application to end coverage when Medicare starts; you can report the date up to 3 months ahead. Once you have Medicare Part A, you can't get Marketplace savings.
Will you sell my information?
No. It goes to one licensed Michigan advisor at Nexus and is never sold.
Keep exploring
Local Michigan pages
- Grand Rapids · Kent County
- Detroit · Wayne County
- Lansing · Ingham, Eaton & Clinton
- Kalamazoo · Kalamazoo County
- Ann Arbor · Washtenaw County
- Flint · Genesee County
- Traverse City · Grand Traverse County
- Holland · Ottawa & Allegan counties
- Muskegon · Muskegon County
- Saginaw · Saginaw County
- Warren · Macomb County
- Troy · Oakland County