Minnesota health insurance, explained
Health insurance after retirement in Minnesota
Retiring changes your health insurance in one of two ways, and which one depends on your age on the day you stop working. Under 65, you need a plan to carry you to Medicare — through MNsure, directly from a carrier, on COBRA from your old employer, or on a spouse’s plan. At 65 or over, you move to Medicare, and the decisions are about what goes with it. Both paths have windows that do not come around twice, so the order you do things in matters.
If you retire before 65
Your income usually drops in retirement, and MNsure's help is based on income, so people who paid full price for years often qualify for a tax credit the year they retire. The credit for 2026 coverage ends at $62,600 for one person and $128,600 for a couple with two dependents; a retired couple on their own is measured as a household of two. What counts is expected income for the year: pensions, Social Security, withdrawals, part-time work, interest — planned Roth conversions too.
COBRA lets you keep your employer plan for 18 months at the full premium, which is sometimes the right bridge and sometimes the most expensive one; compare it to a MNsure plan with the credit before you sign. Losing employer coverage is a qualifying event, so you have 60 days to enroll outside open enrollment.
Turning 65: Medicare
Your Initial Enrollment Period is the seven months around your 65th birthday — the three before, the month itself, the three after — and enrolling before your birthday month is what gets coverage started on time. Part A is premium-free for most people; Part B costs $202.90 a month in 2026 for most enrollees, with a $283 deductible.
Then the choice: Original Medicare with a Medigap plan and a Part D drug plan, or a Medicare Advantage plan. Minnesota is one of three states with its own Medigap designs — Basic and Extended Basic, with optional riders — instead of the lettered plans sold elsewhere. Premiums here are not based on age, and anyone enrolling in Part B gets a six-month window to buy a Medigap plan with no health questions, whatever their age. Miss that six-month window and carriers can ask health questions afterwards, which is the retirement mistake with the longest tail.
Every year after that, Medicare Annual Enrollment runs October 15 to December 7, and plan formularies and networks change annually — reviewing is not optional.
Retiree coverage from an employer
Some employers offer retiree health coverage. It is worth understanding exactly how it works with Medicare before you turn 65: most retiree plans expect you to enroll in Parts A and B and then pay second. Skipping Part B because you have retiree coverage is usually the wrong move and carries a lifetime penalty.
Spouses on different timelines
A couple retiring together with different birthdays is the most common situation we see: one on Medicare, one needing a MNsure plan for a year or three. The MNsure household still counts both incomes, and the one on Medicare cannot be on the MNsure plan. We set both up so nothing overlaps and nothing lapses.
Questions we get about this
Do I have to sign up for Medicare at 65 if I have retiree coverage from my old job?
Almost always yes for Part A and Part B. Retiree plans generally pay after Medicare, and skipping Part B carries a penalty of 10% for each full year you were eligible and not enrolled, for as long as you have Part B. The exception is active employer coverage from a job you still hold, at an employer with 20 or more employees.
Does Social Security count as income for MNsure?
Yes — including the part that is not taxable. Pensions, retirement account withdrawals and Roth conversions count too. That is why the order of withdrawals in the years before 65 can change what you pay for coverage.
Can I stay on my MNsure plan after I turn 65?
You can hold the plan, but the tax credit ends once you are eligible for premium-free Part A, so you would be paying full price for coverage that is worse than Medicare. In practice you enroll in Medicare during your Initial Enrollment Period and end the MNsure plan the day before Medicare starts.
What are Medigap Basic and Extended Basic?
Minnesota’s versions of Medicare supplement plans. Instead of the lettered plans sold in most states, Minnesota carriers sell a Basic plan and an Extended Basic plan, with riders to add. Premiums are not based on age here, and you get a six-month guaranteed-issue window when you enroll in Part B.
Ask us the version that is about you.
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We do not offer every plan available in your area. Currently we represent 11 organizations which offer 36 products in your area. Please contact Medicare.gov, 1-800-MEDICARE, or your local State Health Insurance Program (SHIP) to get information on all of your options.