Can You Stay on the Affordable Care Act After 65?

Can You Stay on the Affordable Care Act After 65?

Can you stay on the affordable care act after 65

Health insurance is an integral part of retirement, helping you stay healthy and protecting your family in case any uninsured emergencies arise.

Do you wonder if it’s possible for you to remain on the Affordable Care Act after 65, especially if you are paying for marketplace coverage? Depending on your individual situation, you may have to decide between Medicare or marketplace coverage.

Can You Stay on the Affordable Care Act After 65?

If you have individual health insurance through the Affordable Care Act (ACA) marketplace, your coverage may expire when you turn 65. However, under the law you are allowed to continue your coverage and receive subsidies to help cover premiums and other out-of-pocket expenses.

Historically, when individuals reached 65 their individual health coverage would automatically expire. That changed in 2014 with the passage of the Affordable Care Act (ACA).

Individual marketplace plans remain valid until age 65; however, many people opt to switch over to Medicare before then.

Before making the switch to Medicare, there are a few things you should be aware of. Most notably, you will no longer be eligible for your ACA subsidies if you switch over.

In general, you’ll have to pay a late enrollment penalty for Part A if you opt for Medicare instead of your marketplace coverage. This could be an enormous financial hit so be sure you carefully consider your decision before committing.

Can You Stay on Medicare?

At age 65, if you are still employed and have employer-based health insurance, it may make financial sense to continue with that coverage. However, be sure you understand the differences between Medicare and your employer’s plan in order to avoid costly errors.

The initial step in enrolling in Medicare is determining if your employer’s health insurance is an employer group health plan as defined by the IRS. If so, then you should postpone enrollment until either your employment ends or they no longer provide coverage.

If your employer doesn’t have 20 or more employees, then you should enroll in Medicare immediately. Medicare Parts A and B are the primary health insurance options when working at a company with fewer than 20 personnel.

Can You Stay on Marketplace Coverage?

The Affordable Care Act created the Health Insurance Marketplace, providing individuals and families with a convenient one-stop shopping platform for private health insurance. Through these state-based, competitive marketplaces, millions of Americans now have access to affordable coverage at their fingertips.

If you were enrolled in a marketplace plan before age 65, you may be able to extend your coverage until Medicare Part A kicks in. Unfortunately, any tax credits and reduced cost-sharing from your Marketplace plan will cease once Medicare Part A kicks in.

If you are 65 or older, it’s time to enroll in Medicare. You can do so through the ACA Marketplace or Medicare online; however, be sure to know the rules for enrollment so as not to incur a late-enrollment penalty.

Can You Stay on Self-Purchased Coverage?

Before the Affordable Care Act, people with individual health insurance plans could be denied coverage if they turned 65. This posed an especially large obstacle for retirees with pre-existing conditions or limited financial resources.

The Affordable Care Act (ACA) addressed this problem by creating a marketplace where those without Medicare coverage can purchase plans that meet their needs and are affordable. As a result, more individuals are able to purchase plans tailored towards their specific requirements.

Non-eligible Medicare Part A beneficiaries can still purchase a plan through the marketplace and receive tax credits to help cover their premiums. Subsidies depend on income and how many dependents you have.

But if your job or income are too low to qualify for a subsidy, the cost of purchasing an exchange plan could be far higher than you can afford. Thus, it may be wiser to wait until Medicare eligibility to purchase through the marketplace.

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About the Author: Raymond Donovan