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According to a 2026 Retirement Confidence Survey, 3 in 5 retirees report retiring earlier than age 65. If you retire early, you’ll need a plan for health insurance until Medicare kicks in. No matter what coverage you choose, healthcare should be a key part of your retirement plan, not an afterthought.

In this episode of Money Wisdom, Nicholas J. Colantuono, CFP® and Eric Hogarth, CFP® share four potential health insurance options to consider.

1. COBRA

When you leave an employer, COBRA allows you to continue that employer’s health coverage for a certain period. In that sense, the plan itself generally remains the same. However, your premiums will likely go up significantly as your employer is no longer subsidizing your coverage. You may be responsible for the full premium plus an administrative fee.

If you’re in control of when you retire, COBRA may be a suitable short-term solution to bridge the healthcare gap. This can be especially beneficial if you have any medical needs you want to address soon.

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2. Your Spouse’s Plan or Part-Time Work

Another option is to join a spouse’s employer-sponsored health insurance plan, if they’re still working. For most couples, this can create more flexibility. This option may also be more affordable than paying for COBRA or purchasing a separate policy.

Some early retirees also consider getting a part-time job that offers health benefits. Even if the pay isn’t much, the value of the health insurance can be significant. Before deciding, compare your coverage options to see if you can get higher quality benefits at a lower cost.

3. Public Marketplace

A third option is to obtain coverage through a public health insurance marketplace. In Connecticut and Massachusetts, state-run marketplaces make plans available under the Affordable Care Act. These options are available to anyone who is not yet eligible for Medicare.

Marketplace coverage can vary widely in cost because many programs base premiums on income rather than assets. Retirement income decisions, Roth conversions, and IRA or 401(k) withdrawals can all affect how much you pay. This is why it’s crucial to consider your health insurance options before retirement and not after.

4. Private Insurance

You may also consider purchasing private health insurance directly from an insurance company. Private coverage may be more expensive, but it could also offer more robust benefits depending on your circumstances.

Keep in mind that Medicare and traditional health insurance generally do not cover long-term care costs. You need a plan that considers how your healthcare, insurance, investments, and long-term care planning needs all fit together. With the right professional guidance, you can worry less about insurance and focus more on the retirement you want.