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

Bridging to Medicare in New Jersey

If you retire before 65 in New Jersey, you need coverage until Medicare starts. For most people that means an individual plan through Get Covered New Jersey, or state continuation or COBRA for a while if your former employer offers it.

Your premium help depends on your household income for the year, not your savings. Federal tax credits again stop at 400% of the poverty level, but New Jersey Health Plan Savings goes up to 600% ($93,900 for one person for 2026). Starting with 2026, if your income ends up higher than you estimated, you may have to pay back the full extra credit at tax time, so plan withdrawals and other income carefully.

If your income is very low in a given year, NJ FamilyCare may be an option, since adults qualify on income alone with no asset test. Starting in 2027, expansion adults will face activity rules and six-month renewals, so check the current requirements before you count on it.

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 at the end of 2025. The House passed a three-year extension in January 2026, but the Senate did not follow, so as of October 2026 they have not been restored for 2026 or 2027. That means the federal credit again stops at 400% of the poverty level, and New Jersey enrollees saw large net premium increases in 2026.

New Jersey Health Plan Savings (NJHPS) is a state subsidy that lowers monthly premiums on top of any federal credit, for households with income up to 600% of the poverty level (up to $93,900 for one person or $192,900 for a family of four for 2026). It is only available on plans bought through Get Covered New Jersey.