By licensed health insurance agentsReviewed October 2026

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

Retiring before 65 in Virginia means buying your own coverage for a few years. The right plan, and the right income plan, can save thousands before Medicare starts.

Bridging to Medicare in Virginia

Retiring before 65 in Virginia usually means buying a Marketplace plan until Medicare starts. Because the extra federal tax credits ended after 2025, people whose income is above 400% of the poverty level generally pay full price again, which can be steep at age 60 or older.

Income planning matters more now. Your tax credit is based on the income you expect for the year, so how much you draw from retirement accounts can change your cost. For 2027, a household between 138% and 250% of the poverty level may also get Virginia Premium Savings on top of federal help, if it enrolls while state funds last.

If your income will be very low in a given year, Virginia Medicaid may cover you. Starting in 2027, expansion adults will need to meet a work or activity requirement unless exempt, so ask a licensed agent or the Marketplace how that applies to your situation.

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 that began in 2021 expired on December 31, 2025. The original ACA tax credits are still available, but help is now smaller for many people, and households above 400% of the poverty level generally no longer qualify, so many Virginians saw higher net premiums in 2026.

Virginia Premium Savings: a new state-funded program for 2027 Marketplace plans, paid for by a $150 million Virginia Health Insurance Affordability Fund. It is for households between 138% and 250% of the poverty level, is applied after federal tax credits, and the state says some people may save as much as 70% (about $65 to $90 per person per month on average). Funds are first-come, first-served.

Virginia questions

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It depends on your income. With the enhanced credits gone, households above 400% of the poverty level generally no longer get tax credits, while those below it usually do. Your expected income for the year, including retirement withdrawals, sets the amount.

KFF reports that the 2026 average benchmark Silver premium for a 40-year-old in Virginia is $455 a month before tax credits. Premiums rise with age, so someone in their 60s will usually see a higher price.

Virginia has a trigger law that would automatically end expansion coverage if federal funding for it is cut. Lawmakers considered removing that automatic end, but the change was not included in the final budget.

Sources

Reviewed October 2026. Rules and prices change every year; a licensed agent will confirm what applies to you.