Mind the cliff

Medicare starts at 65. Retire before that and you buy insurance yourself on the ACA marketplace, where the government pays part of the premium if your income is low enough.

The enhanced credits introduced by the American Rescue Plan expired on 31 December 2025 and were not extended. For 2026 that means eligibility is capped again at 400% of the federal poverty level, and the expected contribution rises to as much as 9.96% of income. Crossing that line by a single dollar can cost more than ten thousand dollars a year. Early retirees largely choose their own taxable income, which makes this a cliff you can steer around.

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