You Have Options — Act Within 60 Days
Losing job-based health coverage is a qualifying life event that triggers a 60-day Special Enrollment Period (SEP). You have 60 days from the date your coverage ends (not the date you lose your job) to enroll in a new plan. This clock starts when coverage terminates, so act promptly.
Option 1: ACA Marketplace Plan
If your projected annual income is 100%–400% FPL (approximately $15,650–$62,600 for a single adult), you qualify for premium tax credits. Importantly, when estimating your income for the year after job loss, you use your projected income for the rest of the year — not your pre-layoff annual salary. A few months of unemployment can significantly reduce your projected income and increase your subsidy.
In many cases, people who lose jobs mid-year qualify for much more generous subsidies than they realize because their income for the remainder of the year will be significantly lower than their former salary.
Option 2: COBRA Continuation Coverage
COBRA allows you to continue your former employer's health plan for up to 18 months after leaving a job. The catch: you pay the full premium — both the employee and employer share — plus a 2% administrative fee. This is often $500–$800/month for an individual and $1,500–$2,000/month for a family.
COBRA makes sense if you have ongoing care in progress (mid-treatment), your specific doctors or hospitals are only in-network on your employer's plan, or you expect to regain employer coverage within a few months and want continuity.
Option 3: Medicaid
If your post-job-loss income will be low enough (below 138% FPL in expansion states, roughly $21,597/year for a single adult), you may qualify for Medicaid. Medicaid enrollment is year-round — no SEP required. This is often the fastest and least expensive path for people with very low projected income after layoff.
Option 4: Spouse's or Parent's Plan
Losing your own coverage is a qualifying life event that allows you to join a spouse's or parent's employer plan outside of that plan's open enrollment. Contact the employer's HR department immediately — you typically have 30 days from the loss-of-coverage date.
COBRA vs. Marketplace: How to Decide
Compare the total cost: COBRA premium vs. marketplace plan premium after subsidy. In most cases, a subsidized marketplace plan is significantly cheaper than COBRA. The main reasons to choose COBRA over marketplace: keeping a specific in-network provider mid-treatment, or expecting to return to employer coverage within 1-2 months.