Best Health Insurance for Seniors and Retirees (2026)
For most seniors and retirees, the best health insurance plan will be through Medicare.
Compare Medicare Plans in Your Area
Best health insurance for seniors and retirees
Plan type | Company | Best for |
|---|---|---|
| Medicare Supplement | AARP/UnitedHealthcare | Comprehensive coverage |
| Part D drug coverage | Wellcare | Prescription coverage |
| Health insurance | Kaiser Permanente | Seniors under age 65 |
| Short-term | Everest | Bridging coverage gaps |
Best health insurance for seniors overall: Medicare
Medicare is the best health insurance option for seniors and retirees.
Medicare has both the best benefits and cheapest rates for people age 65 and older or who have a qualifying disability. You can choose between two different options: Original Medicare and Medicare Advantage.
Original Medicare
Original Medicare is run directly by the government. Original Medicare includes Part A (hospital insurance) and Part B (medical insurance). With Original Medicare, you can get care from 99% of the doctors in the country.
On top of Original Medicare, you can add extra coverage from private health insurance companies through a Medicare Supplement plan (also called Medigap). This lowers the portion of medical costs you pay from 20% of the bill to nearly $0.
Another add-on is a Medicare Part D plan for prescription drug coverage, which is your only way to get prescription drug insurance with Original Medicare.
Medicare Advantage
Medicare Advantage (also called Medicare Part C) is a health insurance plan that you buy from a private insurance company. Plans have to cover the same services as Original Medicare, and they typically include prescription drugs, dental and vision.
Medicare Advantage plans work like traditional health insurance plans. You'll need to use an in-network doctor or hospital to get the cheapest rates on medical care. Plans also have copays that you pay for each medical service, a deductible and an out-of-pocket maximum.
Most people can sign up for Medicare starting three months before the month they turn 65. This is the start of what's called your "initial enrollment period," which then extends through the month you were born and for three months after. This is the best time to sign up because you get cheaper rates for both Part B and Medigap plans.
Compare Medicare Plans in Your Area
Best Medicare Advantage for seniors and retirees: AARP/UnitedHealthcare
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ValuePenguin rating4.5/5ValuePenguin rates companies on cost, coverage, customer service and unique value.
Want more options? Look into the best Medicare Advantage plans.
Best Medicare Supplement for seniors and retirees: AARP/UnitedHealthcare
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ValuePenguin rating4.5/5ValuePenguin rates companies on cost, coverage, customer service and unique value.
Want more options? Check out all the top picks for the best Medicare Supplement plans.
Best prescription drug plan for seniors and retirees: Wellcare
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ValuePenguin rating3/5ValuePenguin rates companies on cost, coverage, customer service and unique value.
Want more options? Check out all the top picks for the best Medicare Part D plans.
Best health insurance for retirees under 65: Kaiser Permanente
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ValuePenguin rating4/5ValuePenguin rates companies on cost, coverage, customer service and unique value.
Want more options? Check out all the top picks for the best health insurance companies.
Best short-term coverage for seniors and retirees: Everest
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ValuePenguin rating3.5/5ValuePenguin rates companies on cost, coverage, customer service and unique value.
Want more options? Check out all the top picks for the best health insurance companies.
Best health insurance for seniors who have a low income: Medicaid
Medicaid is the most affordable plan for seniors and retirees who have low incomes.
Medicaid offers free health insurance to people who earn a low income. Even if you already have Medicare, you can dual enroll in both Medicaid and Medicare to lower your medical costs.
Income limits for Medicaid depend on where you live. In 40 states and Washington, D.C., you can qualify for Medicaid if you earn about $22,000 as a single person (roughly $44,000 per year for a family of four). The limits are higher in Alaska and Hawaii. And in 10 states, you can't qualify for Medicaid unless you earn a low income and you meet another qualification, such as having a certain disability or needing nursing home care.
Seniors aged 65 and over who earn too much to qualify for Medicaid may still be able to qualify if they have high medical costs. The Medicaid spend down program lets you subtract your medical costs from your income. You can use this reduced amount to qualify for Medicaid.
Health insurance for retirees under 65
If you're under 65, you can't get Medicare unless you have a disability, ALS or kidney failure. But that doesn't mean you have to go without any health coverage. You have a few options to bridge the gap between retirement and Medicare.
- Take advantage of COBRA. You can keep the health insurance you had at your job for a year and a half after you leave. But your job won't help pay the cost anymore. You have to pay the full monthly rate, which is usually quite expensive.
- Get coverage through your spouse's job. If you're married and your spouse is still working, see how much it costs to be added to their insurance. Costs vary, but employer plans usually have very good coverage.
- Buy marketplace coverage: If you can't get coverage another way, consider buying a plan on HealthCare.gov or your state's marketplace site. Losing coverage through your job qualifies you to get coverage at any time of year,, but you only have two months after your retirement date to buy a plan. If you miss your window, you have to wait until the fall "open enrollment" to shop.
- Consider short-term insurance. If you only need coverage for a month or two until you can get Medicare, you could buy short-term insurance. Just keep in mind that the coverage is usually pretty minimal. If you want better coverage, buy a marketplace plan and cancel it when you get on Medicare.
If you have a low enough income, you might also be able to get Medicaid coverage until you qualify for Medicare.
Frequently asked questions
What's the best health insurance for seniors and retirees?
Medicare is the best health insurance for retirees and seniors. You can choose between Original Medicare (Parts A and B) or private, bundled coverage, called Medicare Advantage.
What is the best secondary insurance if you have Medicare?
The best secondary insurance if you have Medicare is Medigap Plan G. Plan G helps pay for the costs you're responsible for with Original Medicare. You should also consider getting prescription coverage through a Medicare Part D plan.
You don't need secondary insurance if you have Medicare Advantage because these plans offer bundled coverage.
How much is health insurance for seniors?
You can expect to pay $203 per month for Medicare Part B in 2026. You'll pay an extra $27 per month, on average, if you have a Medicare Advantage (Part C) plan.
Methodology
Health insurance plan data is from the Centers for Medicare & Medicaid Services (CMS) public use files and insurance company plan documents. Factors such as cost, coverage, benefits and networks of doctors were used to compare companies. Other sources include:
- HealthCare.gov's report on current federal poverty level (FPL) amounts
- KFF's report on Medicaid expansion
- Ratings and complaints from HealthCare.gov, J.D. Power and the National Association of Insurance Commissioners (NAIC).
Medicare Advantage rates are only for plans that include prescription drug benefits. The rate analysis excludes employer-sponsored plans, Special Needs Plans, PACE plans, sanctioned plans and Health Care Prepayment Plans (HCPPs). Medigap costs are based on data for all private companies, using quotes for a 65-year-old female nonsmoker.
About the Author
Former Senior Writer
Talon Abernathy is a former ValuePenguin Senior Writer who specialized in health insurance, Medicare and Medicaid. He also contributed to other insurance verticals including home, renters, auto, motorcycle and flood insurance.
Talon came to ValuePenguin in 2023. Since his arrival, he's helped to expand the site's health insurance-related content offerings. He enjoys helping readers understand the ins and outs of America's all too complicated health insurance landscape.
Before coming to ValuePenguin, Talon worked as a freelance writer. His prior work has touched on a broad range of personal finance-related topics including credit-building strategies, small business incorporation tactics and creative ways to save for retirement.
Insurance tip
In many parts of the country, you can qualify for a free Silver health insurance plan if you meet certain income requirements. Government subsidies in the form of premium tax credits and cost-sharing reductions may mean you'll pay nothing for coverage.
Expertise
- Health insurance
- Medicare and Medicaid
- Flood insurance
- Homeowners insurance
- Renters insurance
- Auto and motorcycle insurance
Referenced by
- The Miami Herald
- Money.com
- MSN
- Nasdaq
- The Sacramento Bee
- Yahoo! Finance
Education
- BA, University of Washington
- Certificate in Copyediting, UC San Diego
Credentials
- Licensed Life & Disability Insurance Agent
- Licensed Property & Casualty Insurance Agent
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