Medicare is a government-run health insurance program that provides coverage for seniors and people with disabilities. It is an important safety net for millions of Americans, but there are a lot of misconceptions about it. In this blog post, we will answer the question: can you retire at 62 and still get Medicare? Keep reading to find out!
What Are the Age Requirements For Medicare?
The age requirements for Medicare are pretty simple. You are eligible for Medicare at 65, no matter what. If you retire at 62, you can still get Medicare, but you will have to wait a few years before your coverage starts. This is because Medicare is not automatic – you have to apply for it.
If you want to retire at 62 and still get Medicare, you will have to wait until you are 65 to apply for it. You can do this by enrolling in a Medicare Advantage Plan or a Medigap Plan. Both of these options will give you the coverage you need, but they work differently.
Medicare Advantage Plan is a private health insurance plan that contracts with Medicare to provide benefits. These plans usually have lower premiums than traditional Medicare, but they may have higher out-of-pocket costs.
Medigap plan is a supplemental insurance policy that you can buy to fill in the gaps in your traditional Medicare coverage. Medigap plans usually have higher premiums than Medicare Advantage plans, but they have lower out-of-pocket costs.
No matter which option you choose, you will be able to get the coverage you need if you retire at 62. Just remember that you will have to wait a few years before your coverage starts.
How to Qualify for Medicare?
There are a few instances when you will qualify for Medicare before age 65. These include:
- Being on Social Security disability approved for 24 months
- Having end-stage renal disease (ESRD)
- Being diagnosed with Lou Gehrig’s disease (Amyotrophic Lateral Sclerosis or ALS)
Social Security disability
After 24 continuous months of disability payments, you will become eligible for Medicare. Social Security will enroll you automatically and send your card out approximately three months before your 24th month. The start date under this provision will always be the 24th month of payments.
ESRD
Unlike normal qualifications for Medicare under disability rules, ESRD has significantly shorter time frames. It depends largely on if you are receiving dialysis at home, in a center, or if you’ve had a kidney transplant.
If you go to a dialysis center, you will be eligible for Medicare on the first day of the fourth month of dialysis treatment.
If you participate in an at-home dialysis program, you’re eligible for Medicare immediately. However, if you stop at-home dialysis and instead go to a center, you will revert to the four-month restriction above.
If you’re approved for a kidney transplant, you become eligible for Medicare on the day of the hospitalization for the transplant.
ALS
If approved for Social Security disability under ALS, you will be eligible for disability payments and Medicare immediately. This is much shorter than the typical five-month waiting period before benefits begin.
Health Insurance Options if You Don’t Qualify for Medicare
When you decide to retire early, your primary focus is on income. However, it’s important to consider your options for health insurance as well. In most cases, this will be your first time being on your own to figure out your insurance options.
Traditionally, you have a few options:
- Employer coverage as a dependent: If you’re a spouse or dependent of a person with work insurance, you may be able to join their plan. It’s important for the person carrying the insurance to discuss options with their benefits coordinator to see if or when you qualify.
- Continuation of Health Coverage (COBRA): COBRA allows you to continue your workplace health insurance for up to 36 months, depending on the circumstances that led to your departure and how far away you are from Medicare eligibility. You’re generally responsible for 100% of plan costs, including the amount the employer usually covers.
- The Affordable Care Act (Obamacare) marketplace: Using the Health Insurance Marketplace, you can get individual health plans from insurance companies. Generally, when you separate from work, you will have a special enrollment period to select a plan. If you do not access a plan when you’re eligible, you may have to wait until the next open enrollment period, which occurs annually.
- Medicaid: Unlike Medicare, Medicaid is funded federally and by the state, but the state can develop Medicaid plans as they see fit. Traditionally, there are eligibility requirements, such as income, which could be a barrier to access. Check with your state’s department of human services for more information.
In Closing
In most cases, when you retire at age 62, you will not be eligible for Medicare. However, there are several options for you to consider when deciding to retire early. Health insurance tends to be put on the back burner until it becomes a problem. Plan for early retirement appropriately with support from a professional.
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