Medicare and Marketplace (ACA) plans
Switch on time, and cancel the Marketplace plan yourself.
If you have a Marketplace (ACA) plan when you become eligible for Medicare, you'll generally want to switch to Medicare during your Initial Enrollment Period. Staying on a Marketplace plan instead can cost you money now and a penalty later.
Why switch on time
- Once you're eligible for premium-free Part A, you generally can't get premium tax credits or cost-sharing reductions for a Marketplace plan.
- A Marketplace plan doesn't protect you from the Part B late enrollment penalty.
- It's illegal for someone to sell you a Marketplace plan if they know you have Medicare.
Avoid a gap, and a double payment
Sign up for Medicare so it starts before your Marketplace coverage ends, then end the Marketplace plan yourself, effective the day Medicare starts. The Marketplace doesn't end it automatically.
Exceptions
People who would have to pay a premium for Part A can choose to keep a Marketplace plan instead of enrolling in Medicare, and may still qualify for tax credits. If they later want Medicare, penalties may apply. Get advice before choosing this.
Common questions
You can keep it, but you'll lose any premium tax credits once you have premium-free Part A, and it will pay after Medicare, if at all.
They can usually keep their Marketplace coverage, and their tax credits may be recalculated.
Want help with your own choices?
Every state runs a State Health Insurance Assistance Program (SHIP) with trained counselors who give free, unbiased Medicare help and do not sell plans. Find yours on our Medicare by state pages, or call Medicare at 1-800-MEDICARE (1-800-633-4227) (TTY 1-877-486-2048, 24 hours a day, 7 days a week).
Planning the rest of your coverage in retirement? We can help with life insurance later in life and final expense coverage.
Sources
- When can I sign up for Medicare?, Medicare.gov. Checked September 29, 2026.
- Avoid late enrollment penalties, Medicare.gov. Checked September 29, 2026.
General information about the federal Medicare program, not advice about your situation. Figures are for 2026 unless stated and change every year; last reviewed September 29, 2026. Quote My Policy is a private company. Not connected with or endorsed by the United States government or the federal Medicare program.
Quote My Policy does not sell Medicare plans on this site. For plan-specific help, contact Medicare at 1-800-MEDICARE (1-800-633-4227) (TTY 1-877-486-2048, 24 hours a day, 7 days a week) or your State Health Insurance Assistance Program.