Health Insurance for Early Retirees in Colorado (Ages 55 to 64)

Bridging to Medicare in Colorado

If you retire before 65, you need coverage until Medicare starts. Most early retirees in Colorado use a Marketplace plan for those years, and the cost depends heavily on your county and your income.

Because the enhanced federal credits ended, income now matters more. Federal help is available from 100% to 400% of the poverty level and stops above that line, so how much you draw from retirement accounts in a year can decide whether you get help at all. Colorado Premium Assistance adds a fixed monthly amount for eligible households in that same range.

If your income is very low in a given year, you may qualify for Health First Colorado. Keep in mind that starting January 1, 2027, most adults 19 to 64 must show 80 hours a month of work, school or volunteering, or $580 in monthly earnings, unless they are exempt.

Why your income estimate matters so much

Marketplace subsidies are based on your modified adjusted gross income (MAGI) for the coverage year. For early retirees, that number is partly in your control: it depends on which accounts you draw from and when.

Withdrawals from traditional IRAs and 401(k)s count as income. Qualified Roth withdrawals generally don’t. For ACA purposes, MAGI also adds back tax-exempt interest and any Social Security benefits that aren’t taxed. A tax professional and a licensed agent working from the same income plan can make a large difference to what you pay.

Subsidies in 2026

The enhanced federal premium tax credits expired after 2025, and Congress had not restored them as of September 2026. Federal help again stops at 400% of the federal poverty level, and the Colorado Division of Insurance estimated the average net premium for subsidized enrollees roughly doubled for 2026 (a 101% average increase).

Colorado Premium Assistance, funded through the state's Health Insurance Affordability Enterprise, adds money on top of federal tax credits for households from 100% to 400% of the poverty level. For 2026 it was $80 a month for the primary applicant and $29 a month for each other person on the policy, reaching more than 176,000 customers, and SB26-178 continues the program for 2027.