Health insurance costs can be a big concern for those nearing retirement. Between ages 62 and 65, you’re not yet eligible for Medicare, so private insurance is often the main option.
This article explains the average cost of health insurance for this age group in 2025. Let’s break down the options, costs, and ways to save in simple terms.
Why Health Insurance Costs More at 62 to 65
As you age, health insurance premiums tend to rise. Insurers know older adults may need more medical care.
Federal rules allow them to charge up to three times more than younger people. This makes understanding health insurance age 62 to 65 average cost critical.
Medical needs often increase in your early 60s. Chronic conditions or unexpected health issues can lead to higher bills. Without insurance, these costs can drain retirement savings. Having coverage ensures you’re protected during this gap before Medicare.
Types of Health Insurance for Ages 62 to 65
Several insurance options are available for those aged 62 to 65. Each has different costs and benefits. Knowing your choices helps you find affordable coverage. Here are the main types.
ACA Marketplace Plans
The Affordable Care Act (ACA) Marketplace offers plans through HealthCare.gov. These are popular for retirees not yet on Medicare. Plans come in metal tiers: Bronze, Silver, Gold, and Platinum. Silver plans are a common choice for balancing cost and coverage.
Premiums depend on age, location, and plan type. Subsidies can lower costs for many. Enrollment is typically November to January, but life changes may qualify you for special periods.
COBRA Coverage
If you retire before 65, COBRA lets you keep your employer’s plan for up to 18 months. You’ll pay the full premium, plus a small fee. This can be costly but maintains familiar coverage.
COBRA is ideal if you like your current doctors. Check costs carefully, as they may exceed Marketplace plans. It’s a temporary bridge to Medicare.
Short-Term Health Plans
Short-term plans are cheaper but offer less coverage. They’re designed for gaps, like between jobs or before Medicare. These plans may not cover pre-existing conditions.
In some states, short-term plans last up to a year. They’re a budget option but read the fine print. Limited benefits could leave you with high medical bills.
Spouse’s Employer Plan
If your spouse is still working, you might join their employer’s plan. This can be cost-effective, as employers often cover part of the premium. Check if adding you increases costs significantly.
This option works well if the plan has a good network. Confirm coverage details with the employer. It’s a practical way to stay insured.
Average Costs of Health Insurance for Ages 62 to 65
Health insurance age 62 to 65 average cost varies by plan and location. For 2025, national estimates for ACA Marketplace Silver plans provide a good benchmark. These are for full-price plans before subsidies.
| Age | Average Monthly Premium (Silver Plan) | Average Annual Cost |
|---|---|---|
| 62 | $1,072 | $12,864 |
| 63 | $1,102 | $13,224 |
| 64 | $1,120 | $13,440 |
These figures are national averages. Costs in your area may differ due to local insurance rates. Subsidies can significantly lower premiums for many.
Other costs include deductibles, often $4,000-$7,000 for Silver plans. Copays range from $20-$50 per visit. Coinsurance might be 20% of hospital bills. Always review plan details.
Factors Affecting Insurance Costs
Several factors drive health insurance costs for ages 62 to 65. Age is the biggest, but others play a role. Understanding these helps you budget.
- Location: Premiums vary by state and county. Urban areas may have lower rates than rural ones.
- Plan Tier: Bronze plans cost less but have higher deductibles. Gold plans cover more but have higher premiums.
- Health Status: Smoking can increase rates in some states. Pre-existing conditions don’t affect premiums but may increase care needs.
- Subsidies: Income-based tax credits can cut costs significantly.
Geography matters a lot. For example, a Silver plan in Ohio might cost less than in Alaska. Check local rates on HealthCare.gov.
How to Lower Health Insurance Costs
High premiums don’t mean you’re stuck with unaffordable insurance. There are ways to save on health insurance age 62 to 65 average cost. Here are five practical tips.
- Apply for Subsidies: Marketplace tax credits can reduce premiums based on income.
- Choose a Higher Deductible: Plans with lower premiums often have higher deductibles.
- Use an HSA: Health Savings Accounts let you save pre-tax dollars for medical costs.
- Compare Plans Yearly: Rates and benefits change, so shop around during open enrollment.
- Consider Short-Term Plans: These can save money for healthy individuals but check coverage limits.
Balancing cost and coverage is key. A cheap plan with poor benefits could cost more if you need care. Use HealthCare.gov’s tools to compare options.
Enrollment Periods and Timing
Timing is critical for getting health insurance. The ACA Marketplace open enrollment runs from November 1 to January 15. Sign up then for coverage starting January 1.
Missed open enrollment? A Special Enrollment Period may apply. Events like losing employer coverage or moving qualify you. You have 60 days to enroll.
COBRA enrollment starts when you leave your job. Short-term plans can be purchased anytime. Plan ahead to avoid coverage gaps.
Common Mistakes to Avoid
Choosing health insurance can be tricky. Avoid these pitfalls to save money and stress.
Don’t assume all plans cover your doctors. Check the provider network to ensure your preferred hospital is included. Out-of-network care is pricey.
Don’t overlook subsidies. Many people qualify but don’t apply. Use HealthCare.gov to check eligibility.
Finally, don’t go uninsured. Medical emergencies can wipe out savings. Even a basic plan offers protection.
Bridging the Gap to Medicare
Ages 62 to 65 are a transition period before Medicare starts at 65. Planning ahead makes this gap manageable. Health insurance age 62 to 65 average cost is high, but options exist.
Marketplace plans are the most common choice. COBRA or a spouse’s plan can work if available. Short-term plans are a last resort for healthy individuals.
Once you turn 65, enroll in Medicare to lower costs. Start researching Medicare options a few months before. This ensures a smooth switch.
Health Savings Accounts (HSAs) for Retirees
An HSA can help manage health costs before Medicare. If you have a high-deductible plan, you can contribute pre-tax dollars. Funds grow tax-free and can pay for medical expenses.
For 2025, those 55 and older can add an extra $1,000 catch-up contribution. Use HSA funds for copays, deductibles, or even COBRA premiums. It’s a smart way to stretch your budget.
HSAs don’t cover Marketplace premiums. But they can reduce other healthcare costs. Check if your plan qualifies for an HSA.
State-Specific Considerations
Health insurance costs and rules vary by state. Some states have their own Marketplaces, like California or New York. Others use HealthCare.gov.
State regulations affect premiums. For example, some states limit how much insurers can charge based on age. Check your state’s insurance department for details.
Subsidies are available nationwide. But local networks and plan options differ. Research plans in your area for the best fit.
Summary
Health insurance age 62 to 65 average cost is a key concern for early retirees. Premiums for Silver Marketplace plans range from $1,072 to $1,120 monthly in 2025. Subsidies, HSAs, and smart plan choices can lower costs.
Compare options during open enrollment and avoid common mistakes. With the right plan, you can bridge the gap to Medicare affordably.
FAQ
What is the average cost of health insurance for ages 62 to 65?
Silver Marketplace plans average $1,072-$1,120 monthly in 2025. Costs vary by location and plan. Subsidies can reduce premiums significantly.
Can I use COBRA to stay insured before 65?
Yes, COBRA lets you keep your employer’s plan for up to 18 months. You’ll pay the full premium plus a fee. It’s costly but maintains familiar coverage.
How do I qualify for Marketplace subsidies?
Subsidies are based on income and household size. Apply through HealthCare.gov to check eligibility. Many retirees qualify for tax credits.
Are short-term plans a good option?
Short-term plans are cheaper but cover less. They’re best for healthy people with temporary needs. Check limitations, as they may not cover pre-existing conditions.