Although retiring at the age of 62 provides you with an opportunity to enjoy your remaining years, it also poses some significant questions about your health insurance. Most of the people who retire at the age of 62 years understand that they are allowed to claim reduced Social Security benefits but Medicare, the federal health insurance plan for individuals above 65 years is not normally accessible at this age. There are certain age requirements for Medicare for eligibility. Therefore, if you have chosen to retire early, it is important to learn about Medicare and the Social Security rules regarding your healthcare needs.
In this article, we will discuss Medicare eligibility when you plan to retire at 62, what to do while waiting for Medicare, and how Social Security plays a role in it.
When Are The Age Requirements for Medicare?
The most important thing to bear in mind is that Medicare is available to individuals who are 65 years of age or older. This means that even if you decide to retire and start receiving Social Security benefits at the age of 62, you will not be able to sign up for Medicare until you turn 65. Social Security and Medicare are two different programs and have different requirements for getting benefits.
However, there are two main exceptions to this:
- If you become eligible for Medicare before the age of 65 because of a disability.
- If you have end-stage renal disease (ESRD) or amyotrophic lateral sclerosis (ALS), also known as Lou Gehrig’s disease, both of which enable you to receive Medicare benefits before the age of 65.
What Happens Between 62 and 65?
Since Medicare is not available until the age of 65 while retirement can start at 62, there is a 3-year gap where you have to come up with money to pay for health care. This can be a problem because health insurance is important, particularly as you get older. Here are a few options to consider:
- Employer Health Insurance: If you are leaving a job that included health insurance, find out if your employer has a retiree health plan. Certain organizations permit their employees to stay on the company’s medical plan until they become eligible for Medicare. This is a very good option if possible but not all employers offer this.
- COBRA: COBRA (Consolidated Omnibus Budget Reconciliation Act) lets you stay on your employer’s health plan for up to 18 months after you lose your job. It allows you to maintain your coverage, but COBRA can be costly because you have to pay the whole premium, including the portion that your employer paid for.
- Affordable Care Act (ACA) Plans: If you do not have access to retiree health benefits or COBRA, you can consider obtaining health insurance through the ACA marketplace. These plans offer different levels of coverage and if you have a low income you can get help to reduce the cost of premiums.
- Spouse’s Health Insurance: If your spouse is still working, then you may be able to get on their company’s health insurance plan. This is usually cheap and you can still be insured until Medicare kicks in.
Can You Qualify for Medicare at 62?
Generally, you will not be able to sign up for Medicare at the age of 62, you have to meet the age requirements for Medicare. However, there are some exceptions to this. For example, anybody who has been receiving SSDI benefits for 24 months is eligible for Medicare regardless of their age. If you have a disability that meets the requirements, you can get Medicare even if you are not yet 65 years old.
Also, people with end-stage renal disease (ESRD) or ALS (Lou Gehrig’s disease) are eligible for Medicare at any age provided they meet certain conditions.
Planning for Healthcare Between Ages 62 and 65
If you are planning to retire early at 62, you need to consider how you will get healthcare coverage until you are eligible for Medicare at 65. Think about your health needs, possible expenses, and how to cope with the time gap with the help of the COBRA, ACA, or your spouse’s insurance. The lack of insurance coverage during this period may leave you vulnerable to exceedingly high costs in the event of an accident or sickness.
