Yes, if you're aging into Medicare with a subsidized Marketplace plan, you have to drop your Marketplace plan when Medicare starts, and ending it on time is what keeps it from costing you. The reason isn't paperwork, it's money: the moment you're eligible for premium-free Part A, the subsidies that make your Marketplace plan affordable stop applying, and keeping them too long can mean repaying that help at tax time.
In This Guide
- Key Takeaways
- Do You Have to Drop Your Marketplace Plan When You Get Medicare?
- Why the Subsidies End Before You Even Enroll
- What It Costs If You Keep the Subsidies Too Long
- You Still Have to Drop Your Marketplace Plan Yourself
- Can Someone Sell You a Marketplace Plan After You Have Medicare?
- Frequently Asked Questions
- Learn More
Do You Have to Drop Your Marketplace Plan When You Get Medicare?
Let's answer it head-on. Yes. Once you qualify for Medicare, the subsidized Marketplace plan you've been on has to go, and the reason is money, not tidiness. Two things happen at once: the financial help that lowers your Marketplace costs stops applying, and your plan keeps running anyway until you cancel it. Leave both alone and you can end up repaying subsidies you were no longer entitled to.
To be precise about that "financial help," it's two things. The premium tax credit lowers your monthly premium, and the cost-sharing reductions lower your deductibles and copays. Those are the two subsidies most people on the Marketplace are using, and per Medicare's guidance on the Marketplace, both stop once you're eligible for premium-free Part A.Centers for Medicare & Medicaid Services. (n.d.). Medicare & the Marketplace. medicare.gov. Retrieved Jul 17, 2026, from https://www.medicare.gov/basics/get-started-with-medicare/other-paths/medicare-marketplace
Why the Subsidies End Before You Even Enroll
Something surprising about this: you don't lose the subsidies on the day you enroll in Medicare. You lose them the day you're eligible for premium-free Part A, whether or not you've actually signed up.Centers for Medicare & Medicaid Services. (n.d.). Medicare & the Marketplace. medicare.gov. Retrieved Jul 17, 2026, from https://www.medicare.gov/basics/get-started-with-medicare/other-paths/medicare-marketplace
For most people, premium-free Part A eligibility begins the first of the month they turn 65. Premium-free Part A is the hospital coverage that costs $0 a month for anyone with about 10 years (40 quarters) of Medicare-covered work, and roughly 99% of beneficiaries qualify for it.Centers for Medicare & Medicaid Services. (2026). 2026 Medicare Parts A & B Premiums and Deductibles. cms.gov. Retrieved Jul 23, 2026, from https://www.cms.gov/newsroom/fact-sheets/2026-medicare-parts-b-premiums-deductibles So if you've worked and paid Medicare taxes for a decade, being eligible is enough. You don't have to enroll first for the Marketplace subsidies to stop counting.
That gap between "eligible" and "enrolled" is exactly where people get caught. They plan to sign up for Medicare in a month or two, figure the Marketplace plan is fine until then, and don't realize the subsidy clock already ran out.
What It Costs If You Keep the Subsidies Too Long
Picture turning 65, becoming Medicare-eligible, and leaving your Marketplace plan running with the premium tax credit still knocking down your monthly bill. That's where it gets expensive.
HealthCare.gov puts it plainly: if you keep using the premium tax credit and don't end your Marketplace coverage, you'll have to pay back the credit you used when you file your federal income taxes.Centers for Medicare & Medicaid Services. (n.d.). Medicare & the Marketplace. medicare.gov. Retrieved Jul 17, 2026, from https://www.medicare.gov/basics/get-started-with-medicare/other-paths/medicare-marketplace Depending on how many months overlapped, that can be some of the subsidy or all of it, and it lands as a lump sum on your return. That's the real price of doing nothing, and it's why "on time" matters as much as "yes."
You Still Have to Drop Your Marketplace Plan Yourself
One more thing to plan for. Enrolling in Medicare does not cancel your Marketplace plan. The two systems don't hand off to each other, so your Marketplace coverage keeps going, and keeps billing, until you go in and end it yourself.Centers for Medicare & Medicaid Services. (n.d.). Medicare & the Marketplace. medicare.gov. Retrieved Jul 17, 2026, from https://www.medicare.gov/basics/get-started-with-medicare/other-paths/medicare-marketplace
The clean move is to end your Marketplace plan so its last day of coverage is the day before your Medicare coverage starts. You do that through the Marketplace where you bought the plan, either HealthCare.gov or your state's own Marketplace, and it's worth starting a couple of weeks early, because cancellations aren't always instant. Line the dates up and you dodge both a coverage gap and a month of paying for two plans at once.
Can Someone Sell You a Marketplace Plan After You Have Medicare?
No, and there's a legal backstop here. It's against the law for someone who knows you have Medicare to sell you a Marketplace plan.Centers for Medicare & Medicaid Services. (n.d.). Medicare & the Marketplace. medicare.gov. Retrieved Jul 17, 2026, from https://www.medicare.gov/basics/get-started-with-medicare/other-paths/medicare-marketplace So an agent or broker who's aware you're on Medicare can't sign you up for a Marketplace policy, and you shouldn't be shopping for a new one either.
Once Medicare is your coverage, the Marketplace isn't where your plan lives anymore. If you want to build on Medicare, that's what Medicare Advantage, a stand-alone Part D drug plan, or a Medigap policy are for, not a Marketplace plan.
Frequently Asked Questions
Can I keep my Marketplace plan instead of signing up for Medicare?
You can stay enrolled in a Marketplace plan, but once you're eligible for premium-free Part A you lose the premium tax credit and cost-sharing reductions, so you'd pay the full, unsubsidized price. For almost everyone that's a worse deal than premium-free Part A. Delaying Medicare past your enrollment window can also cause problems of its own, which we cover in our Medicare enrollment guide, so most people should take Medicare and end the Marketplace plan.
What if I have to pay a premium for Part A?
If you don't have enough work history for premium-free Part A (fewer than 40 quarters, meaning a $311 or $565 monthly Part A premium in 2026 depending on your quarters), the rules ease up a bit.Centers for Medicare & Medicaid Services. (2026). 2026 Medicare Parts A & B Premiums and Deductibles. cms.gov. Retrieved Jul 23, 2026, from https://www.cms.gov/newsroom/fact-sheets/2026-medicare-parts-b-premiums-deductibles You're only locked out of Marketplace subsidies once you actually enroll in premium Part A or a Medicare Advantage plan, not just by being eligible to buy Part A.Centers for Medicare & Medicaid Services. (n.d.). Medicare & the Marketplace. medicare.gov. Retrieved Jul 17, 2026, from https://www.medicare.gov/basics/get-started-with-medicare/other-paths/medicare-marketplace Some people in that spot compare the cost of premium Part A against keeping a subsidized Marketplace plan, so it's worth running both numbers before you decide.
Does this apply to Medicare Advantage too?
Yes. Having a Medicare Advantage plan counts the same as having Medicare here, so you don't qualify for Marketplace subsidies while you're enrolled in one.Centers for Medicare & Medicaid Services. (n.d.). Medicare & the Marketplace. medicare.gov. Retrieved Jul 17, 2026, from https://www.medicare.gov/basics/get-started-with-medicare/other-paths/medicare-marketplace Medicare Advantage is Medicare, just delivered through a private plan, so the same "end the Marketplace coverage" rule applies.
Can I set a future end date, or do I have to cancel right away?
You set a future end date through the Marketplace where you enrolled, so you don't have to cancel on the spot and leave yourself a coverage gap; aim for the day before your Medicare coverage starts. What you generally can't do is backdate a cancellation to erase months you were already Medicare-eligible, which is why ending it on time, rather than after the fact, is what protects you from repaying the premium tax credit at tax time.Centers for Medicare & Medicaid Services. (n.d.). Medicare & the Marketplace. medicare.gov. Retrieved Jul 17, 2026, from https://www.medicare.gov/basics/get-started-with-medicare/other-paths/medicare-marketplace
Learn More
Find personalized help timing your move from a Marketplace plan to Medicare at brevy.com.
The information on Brevy.com is for educational purposes only and is not a substitute for professional legal, financial, or medical advice. Rules vary by state and program and change frequently. Always verify with the relevant agency or a qualified professional. Brevy is not a law firm, financial advisor, or healthcare provider.