A couple retiring at 62 with $1.8M faced a 36-mo healthcare gap before Medicare, creating ~ $47K in unexpected costs beyond a planned employer-plan equivalent.
In 2026, full-price ACA Silver coverage for a 62-year-old couple ran ~$1.8K-$2.2K monthly before subsidies, making early retirement healthcare far costlier than expected.
The subsidy cliff returned in 2026. For two people, MAGI near $84K-$85K cut off premium tax credits entirely, with no gradual phaseout.
COBRA offered a cheaper bridge first: ~18 mo on an employer plan at ~$1.4K-$1.6K monthly, then ACA for months 19 through 36.
A Roth conversion strategy could keep retirement MAGI below the subsidy threshold, potentially recovering most of the gap through ACA tax credits over 36 mo.
