Imagine a couple in their early 60s who have closed their business and retired early, but they still have a few years until they qualify for Medicare.

Without employer insurance, they need to purchase coverage directly through the Marketplace, and the insurance premium bill will soon become a significant part of their retirement expenses. There are likely many individuals like this in the Annandale Korean community.

This year, Virginia has launched a new program called Virginia Premium Savings. This initiative uses state funds to reduce premiums for 2027, and to sum it up, early retirees can qualify if their income meets the criteria.

This is not a benefit exclusively for retirees based on age. From what I confirmed in the official Marketplace guidance in early November, the conditions can be summarized in three points.

You must live in Virginia. You must enroll in a plan through the Marketplace. Your household income must be between 138% and 250% of the federal poverty level.

Let's convert that into dollars. The 2027 premiums will be based on the 2026 poverty level, which is $15,960 for a one-person household and $21,640 for a two-person household.

When I calculate, for one person, the range is between $22,025 and $39,900, and for two people, it's between $29,863 and $54,100. Be sure to double-check the official amounts on the Marketplace chart.

The scale of the benefits is also significant. The Virginia Department of Insurance estimates that the average recipient will see a reduction of $65 to $90 per month, and the Marketplace indicates that some may save up to 70%.

The state government has allocated a budget of $150 million, and it is estimated that 200,000 residents will benefit. I believe this is exactly what the government should be doing.

We also need to understand why this program has become necessary. The federal enhanced subsidy is set to end by the end of 2025, bringing back the income cliff at 400%.

The projected average premium increase in Virginia for 2027 is 15.8% before subsidies are applied. Looking at individual companies, Optimum Choice has a 3.9% increase, while Sentara has a 22.7% increase, showing quite a difference.

Seeing these numbers honestly made me sigh. However, not everyone will be paying this much more. If you receive subsidies, your actual burden will change.

Here, early retirees need to be particularly cautious about income calculations. It's not based on bank balances but rather on MAGI, which is the AGI from your tax return plus a few other items.

Tax-exempt Social Security, tax-exempt interest, and tax-exempt foreign income are included. Don't assume that tax-free money will be excluded.

Withdrawals from traditional IRAs or 401(k)s, as well as capital gains from selling stocks, also count towards AGI. The same goes for any Roth conversions.

This means that even if you have substantial assets, you could qualify if your income is low that year, while a large withdrawal could push you over the limit. This is why retirement withdrawal plans and premiums need to be considered together.

What happens if you exceed 250%? You will fall outside the state support range, but you can still consider the federal premium tax credit up to 400%.

Calculating that, 400% is $63,840 for one person and $86,560 for two people. If you exceed this threshold, federal support will be cut off, so check if there's room to adjust your year-end withdrawal timing.

If you are below 138%, it's advisable to check Medicaid eligibility before this program.

There's one more important point for Korean readers. Starting in 2027, non-citizens will generally need to be lawful permanent residents, Cuban-Haitian entrants, or COFA migrants to receive federal assistance.

It wasn't clearly stated on the page I checked whether the same criteria apply to state support. If you are on a visa, be sure to ask before enrolling.

The most important thing is this: these benefits are not automatically applied. The Marketplace explicitly states this, and you must register to receive them.

The enrollment period is from November 1, 2026, to January 29, 2027. For most residents, this will be the only opportunity to receive benefits for the following year, so don't delay.

Cigna members need to act even faster. Cigna is exiting the Virginia Marketplace, reducing the number of insurers from 8 to 7 for 2027.

If your income is below 250%, pay attention to the Silver plan. The cost-sharing reduction that lowers out-of-pocket expenses is only available with Silver. If you only look at premiums and choose Bronze, you might miss out.

Estimate your income conservatively and adjust immediately if it changes. The federal tax credit will be reconciled on Form 8962 during the next year's tax filing, so if you received more, you may need to pay it back.

If you are approaching age 65, also keep an eye on your Medicare transition. Once you qualify for premium-free Part A, you will no longer be eligible for Marketplace subsidies.

You don't have to struggle alone. Free assistance is available from Virginia Certified Assistors or the Marketplace customer service at 888-687-1501, and since results can vary based on individual circumstances, be sure to consult with an expert.

If I were you, I would pull out my most recent tax return this month and write down my withdrawal plans for next year to input into the official calculator.

Those just above 250% still face a significant burden, and I believe a federal solution is necessary. However, let's not miss out on the existing programs. Don't leave it on the table!