Lost Your Job and Your Health Insurance? Here is What You Can Do!

Many Americans rely on employer-provided health insurance to fulfill their healthcare needs. This means if you lose your job, you will also lose your health insurance benefits along with it. Losing employment is scary, and the worry of being uninsured during this time makes it even more difficult. This situation can leave you with endless questions like how can I get new insurance? How long will the process take? What options do I have?

Fortunately, there are many viable options that can fulfill your healthcare needs when you are unemployed. In this article, we have gathered the list of things you can do and options to find the right health insurance plans in between jobs.

Can I get New Health Insurance as Soon as I’ve Lost My Job?

Losing employment is categorized as a special event that will automatically make you eligible for a Special Enrollment Period (SEP) that will last for 60 days. During this period, you can get enrolled in the marketplace or exchange and can receive significant subsidies offered by the American Rescue Plan. The health insurance plan you purchase during this period will take effect on the first day of the month after your previous plan ends. So, to continue your coverage without any gaps, it is recommended you apply for new health coverage as soon as possible after losing employment.

Still, if you are unable to do so for some reason, you will always have the option of a short-term health plan. This plan will close the gap between your coverage, but it comes with a few limitations. For example, a short-term health plan will not cover a pre-existing health condition.

What Are My Health Insurance Options Between Jobs?

During your time of unemployment, there are several health insurance options that you can consider. A few of these options include the following:

COBRA Coverage

The Consolidated Omnibus Budget Reconciliation Act (COBRA) allows employees to get health coverage for 18 months even after they have lost their jobs. With the help of COBRA, you can not only get your healthcare needs covered but also the needs of your spouse or other dependent family members relying on your health insurance plan.

You can apply for COBRA coverage during the 60-day special enrollment period. But you should keep in mind that COBRA coverage can be expensive on your pocket as with this plan, you will need to pay the total premium cost yourself. In addition, you will also be responsible for a 2% administrative fee. 

COBRA can be a great option to continue your same health insurance plan for 18 months without interruptions while looking for a new employment opportunity.

Self- Purchased Health Insurance

Purchasing an individual or family health insurance plan for yourself can be another option after losing employer-sponsored coverage. You can search for suitable health insurance options and compare their plans in terms of costs, benefits, and out-of-pocket expenses. Navigating these plans can be confusing and can become quite costly with add-ons and fees. Using a service like Find the Plan can help you compare all your different options to make sure you’re getting the benefits you need.

Once you get a new job, you will become eligible for employer-provided coverage, so you should carefully consider the amount of time you will be getting the self-purchased coverage. We can help you make that decision.

Get Covered Through a Family Member’s Insurance

You can explore the coverage option through your spouse’s (or a domestic partner in some cases) insurance plan if you are married. Although they will need to pay for this coverage from their paycheck, this is still a more affordable option than purchasing an individual health insurance plan. Or, if you are under 26, you can join your parent’s insurance plan. 

Medicaid

Medicaid is a state-provided public health insurance, and people with low incomes are eligible to apply for this option. To be eligible for Medicaid, your income must be below 138% of the FPLs. Medicaid is free or requires you to pay a negligible premium; families can apply for this program throughout the year. Your eligibility will be counted based on your income after you lose your job. You can qualify for individual coverage if your monthly income is below $1,467. Furthermore, suppose you do not qualify for Medicaid due to your income. In that case, you can still get coverage for your children and pregnant females in your family.

Medicare

Medicare is another good coverage option for you if you are 65 years old when you lose your job. It is a government-sponsored health insurance program that includes different coverage options. With Original Medicare Part A and Part B, you will get coverage for hospitalization and doctors’ fees, respectively. Plan C of Medicare is an all-in-one kind of option that includes hospitalization and doctors’ visits as well as prescription drugs, dental and vision care, and other benefits. Your prescription drugs will be covered through Part D. 

Short-Term Health Insurance

Short-term health insurance plans are a feasible option to avoid any gaps in your coverage. They provide temporary coverage for 12 months before you can find a more permanent solution for your healthcare needs. Short-term health plans are affordable, and you can apply for them at any time of the year. However, these plans do not provide comprehensive coverage as they are not mandated by ACA to offer minimum benefits such as maternity care. They also do not provide coverage for any pre-existing illnesses. Furthermore, you will not be eligible for subsidies with these plans. In conclusion, short-term insurance plans are a good option if you cannot secure any other coverage.

Finding a viable health insurance option when you are unemployed might seem complicated and overwhelming initially but be assured that you have options to meet your healthcare needs. Losing your job makes you eligible for a special enrollment period during which you can apply for new coverage. In addition, you can also become eligible for some kind of subsidy that will further lower your health expenses. If you need assistance navigating the health insurance landscape, give us a call and one of our expert advisors can go over all your options.