Perhaps you are not enrolled in a plan through the individual exchange but instead you are enrolled with a plan through your company. Similar to individual plans, group health insurance policies for businesses with 100 employees or fewer are also age based. When you approach your 65th birthday your group health insurance policy plan will be very expensive.
The major difference between an individual policy and one through your company is that your employer is required to contribute some money to cover your monthly costs. By law, your company is required to pay for 50% of your health insurance premiums each month. Even after calculating the costs, 50% of a plan through your employer is more expensive than 100% of a medicare plan.
It is also nice to keep in mind how much money you can help your company save when you switch to Medicare. Employers are excited to help employees move to Medicare because they appreciate not paying so much each month for your insurance.
I personally sell group health insurance policies here in San Diego and I can confidently say that a plan through Medicare, with either a supplement plan or an advantage plan, is going to be better than what you are receiving from your business.
However, some companies are extremely generous with their health insurance offering and it can make it difficult to switch over to Medicare. For example, I work with a company in Carlsbad that pays 100% of the employees health insurance costs and 80% of the family’s costs. This is an unbelievably generous offer. Even in this scenario, it was worth it to evaluate the newly 65 year old’s Medicare options. Both the employer and employee agreed that moving to Medicare was best.