A. In general, there are 3 option for early retirees to get health care coverage:
1. Use COBRA
The Federal law requires companies with 20 or more employees to let workers remain on their health plan, but that coverage is only up for 18 months, and you will have to pay the full premium.
Best for: early retirees need to fill a short gap in coverage, or if you are undergoing treatment and other policies available won't cover your current doctors or providers.
2. Use State Health Insurance Exchange
You can buy a policy through your state's health insurance exchange (www.healthcare.gov), which could be pricey.
Best for: early retirees with preexisting conditions since insurers can't deny you coverage or charge you more for them. Also, early retirees with low income (eligibility for subsidy is 400% of the federal poverty level - $49.960 for an individual or $67,640 for a couple in 2020).
3. Buy Directly From An Insurer
You can buy directly from an insurer or through an agent (nahu.org). Off-exchange policies are not eligible for tax credits, but some insurers offer different premiums, cost sharing, or provider networks than their on-exchange versions.
Best for: early retirees who are not eligible for subsidy or are looking for a specific feature.