November 1, 2026 - KFF Answers Medicare Questions:
I am 70 years old and covered by Medicare, but I’m wondering if I can purchase one of the health plans offered through the Marketplace and drop my Medicare coverage? Is that an option for me or should I keep my Medicare coverage?
If you have Medicare, you should keep it. In fact, companies that sell Marketplace plans are prohibited from selling these plans to you if they know you are covered by Medicare. And if you are eligible for premium-free Medicare Part A, you are not eligible to receive the Marketplace premium tax credit to help reduce the cost of a Marketplace policy, even if you would qualify based on your income.
If you do drop Medicare and choose to re-enroll later, you can only re-enroll during the Medicare general enrollment period (from January 1 to March 31), and your coverage would not begin until the first day of the month after enrollment. So, if you enrolled in January 2027, your Medicare coverage would start in February. You also may face a penalty for late enrollment in Medicare Part B and Part D. If you don’t sign up for Part B when you’re first eligible or if you drop Part B and then sign up again later, your monthly Part B premium may go up 10% for each year that you could have had Part B, but didn’t. You may also owe a late enrollment penalty for Part D drug coverage, which is equal to 1% of the national average premium amount for every month you didn’t have coverage as good as the standard Part D benefit.
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While every effort has been made to provide accurate and up-to-date information in these FAQs, people should contact Medicare, Social Security, State Health Insurance Assistance Programs (SHIP), or companies offering Medicare Advantage and Medicare Part D plans and Medigap policies directly for guidance on individual circumstances.
Source: KFF
