Health insurance options for when you're between jobs
Understanding your enrollment timeline
Transitioning out of a job and losing employer-sponsored health insurance is usually considered a qualifying life event. This means you may qualify for a Special Enrollment Period (SEP)[D], which allows you to enroll in new coverage without waiting for the annual open enrollment period.
In most cases, you have 60 days from the loss of your employer-sponsored coverage to enroll in a new health plan through the Health Insurance Marketplace® (Marketplace).[D]
Acting quickly can help prevent gaps in coverage and ensure you have access to care when you need it.
Understanding your coverage options
Many people choose a health plan through the Health Insurance Marketplace after losing coverage through an employer. If you qualify for a SEP, Marketplace plans provide comprehensive coverage and include essential health benefits, such as:
- Doctor visits
- Hospital care
- Prescription drug coverage
- Mental health services
- Preventive care
Depending on your household income, you may also qualify for financial assistance that lowers your monthly premium costs.[D] When comparing plans, look beyond the monthly premium. It's important to also review deductibles, provider networks, prescription coverage, and overall out-of-pocket costs.
COBRA is a federal law that may allow you to keep your current employer-sponsored health plan for a limited time after your employment ends. Generally, COBRA is available through employers with 20 or more employees.
One advantage of COBRA is continuity. You can typically keep:
- The same doctors
- The same provider network
- The same prescription drug coverage
However, COBRA can be expensive because you'll usually be responsible for the full premium cost, including the portion your employer previously paid. Before enrolling, compare your COBRA costs with Marketplace plans to determine which option best fits your budget and health care needs.
If your household income decreases after losing a job, you may qualify for Medicaid. Medicaid provides free or low-cost health coverage for eligible individuals and families. Eligibility requirements vary by state and are often based on income.
For children, the Children's Health Insurance Program (CHIP) may be available. CHIP helps provide health care coverage for children in families that meet income eligibility requirements.
Unlike Marketplace coverage, Medicaid and CHIP enrollment is generally available year-round.
To learn more about whether you qualify for coverage through Medicaid or for more information on how to apply, contact your local Department of Social Services.
Some people consider short-term health insurance to help bridge a temporary gap in coverage. These plans often have lower premiums but may not provide the same level of coverage as Marketplace plans or employer-sponsored insurance.
Short-term plans may not cover certain services or pre-existing conditions, and benefits can vary significantly by plan. Before enrolling, review the plan details carefully and make sure the coverage meets your needs.
Choosing the right coverage for your situation
The best health insurance option depends on your health care needs, budget, and family situation. As you compare coverage options, consider:
- Your monthly premium
- Deductibles and out-of-pocket costs
- Prescription drug coverage
- Access to preferred doctors and hospitals
- Coverage for family members
If you take regular medications or receive ongoing medical care, confirm that your providers and prescriptions are covered before making a decision.
