Your coverage options after job loss — COBRA and the alternatives.
When you leave a job — whether you quit, get laid off, or retire early — your employer-sponsored health insurance typically ends. Here's what happens next and what your options are.
Usually on your last day of employment, or the last day of the month in which you leave — it varies by employer. Check with HR before your last day.
COBRA lets you keep your exact same insurance plan for up to 18 months (sometimes longer). The catch: you now pay the full premium — your share plus your employer's share — plus a 2% admin fee.
If your employer was covering $1,000/month and you were paying $300, your COBRA payment is around $1,326/month. It's expensive, but it means zero disruption to your coverage, network, or deductible progress for the year.
Losing job-based coverage is a qualifying life event. You have 60 days to enroll in a plan through healthcare.gov. Depending on your income, you may qualify for significant subsidies that make this cheaper than COBRA.
If your spouse or domestic partner has employer coverage, losing your job is a qualifying event to join their plan within 30 days.
If your income drops significantly, you may qualify for Medicaid — free or very low-cost coverage. Medicaid has no enrollment windows; you can apply any time.