How to Stay Insured After Retirement and Still Qualify for ACA Subsidies

If you’re nearing retirement and wondering how you’ll afford health insurance before you’re eligible for Medicare, you’re not alone. Health insurance costs can be a significant expense, especially for those living off retirement savings. But there are options available to help you get affordable health insurance, even if your income is too high to qualify for premium subsidies under the Affordable Care Act (ACA).

What is the ACA?

The ACA, also known as Obamacare, is a federal law that was passed in 2010. The ACA has made health insurance more affordable for many people by providing subsidies to help pay for premiums. These subsidies are available to people with incomes up to 400% of the federal poverty level (FPL). The FPL is a measure of income that is used to determine eligibility for many government programs. For a family of four, 400% of the FPL is $111,500.

ACA Subsidies and Retirement

If you’re retiring before you’re eligible for Medicare, you may be wondering if you’ll still qualify for ACA subsidies. The answer is yes, as long as your income is below 400% of the FPL. However, there are some important things to keep in mind.

First, your income will be based on your modified adjusted gross income (MAGI). MAGI is your adjusted gross income (AGI) plus certain other types of income, such as tax-exempt interest and foreign income. So, even if your AGI is below 400% of the FPL, your MAGI may be higher. This is important to keep in mind because your MAGI will determine how much of a subsidy you qualify for.

Second, the amount of your subsidy will depend on your income and the cost of health insurance in your area. The higher your income, the lower your subsidy will be. And, if you live in an area where health insurance costs are high, your subsidy will be higher.

How to Get ACA Subsidies

If you think you may qualify for ACA subsidies, the first step is to create an account on the Health Insurance Marketplace. This is a website where you can compare health insurance plans and apply for subsidies. Once you’ve created an account, you’ll need to provide information about your income, family size, and other factors. The Marketplace will then use this information to determine if you qualify for subsidies and how much your subsidy will be.

If you qualify for subsidies, you’ll need to choose a health insurance plan. There are many different plans to choose from, so it’s important to compare plans and find one that meets your needs.

Other Options

If you don’t qualify for ACA subsidies, there are still other options available to you to get affordable health insurance. One option is to purchase a plan through your state’s health insurance exchange. Most states have an exchange where you can compare plans and purchase health insurance.

Another option is to purchase a plan directly from an insurance company. However, if you don’t qualify for ACA subsidies, you’ll likely have to pay more for a plan if you purchase it directly from an insurance company.