What Do I Do About Health Insurance if I Lose My Job?
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What Do I Do for Health Insurance if I Lose My Job?

What Do I Do for Health Insurance if I Lose My Job?
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Updated on October 14, 2026
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Lack of health insurance coverage can be stressful, particularly on top of an unexpected job loss. But there are options to get coverage without an employer-sponsored plan. Today, most people who aren’t covered by job-based insurance have a pathway to coverage because of the Affordable Care Act, also known as Obamacare.

“This is not the same insurance market we had during the Great Recession in 2008,” says Sabrina Corlette, a juris doctor, a research professor, and the founder and codirector of the Center on Health Insurance Reforms at Georgetown University in Washington, DC. Even if you don’t have a job that offers health insurance, there is an insurance safety net you can look into.

COBRA

Short for the Consolidated Omnibus Budget Reconciliation Act, COBRA is a federal law that allows individuals and families to continue their group health insurance after losing a job.

 This is a good option if you need short-term coverage or prefer to stay in your current network of trusted doctors, but the price tag is high. Estimated COBRA plan costs, which vary depending on where you live and your employer plan, can be up to 102 percent of your total healthcare premium, including the amount previously paid by the employer.

 This price tag can top $2,250 a month for family coverage.

Why is it more than when you had a job? When you get health insurance through your employer, they pay the bulk of the premium, says Christen Linke Young, secretary of the Delaware Department of Health and Social Services in New Castle.

“What you pay as an employee is maybe 25 percent of the total cost,” she says. “But you have to pay 100 percent of the premium when you use COBRA. For most people, that won’t be the most affordable option.”

COBRA is available for nearly all group health plans for employees who worked somewhere that had 20 or more employees (it does not cover plans offered by churches or the federal government, but the federal government has something equivalent called Temporary Continuation of Coverage).

 If you choose this option, you have at least 60 days from the date you lose coverage or the date you receive your COBRA election notice, whichever is later, to sign up to continue with your former employer’s plan. That coverage lasts for up 18 months after a job loss, or longer in certain cases such as divorce or disability.

“If someone is in the middle of a very expensive healthcare service, leaving job-based health insurance while in treatment for cancer or another health problem that’s very costly, they may value continuity with their health insurance,” says Young.

Health Insurance Marketplace

Also known as the Marketplace, this is a feature of the Affordable Care Act that helps Americans compare and enroll in affordable health insurance plans.

“It’s a unified market where people who aren’t getting health insurance through their jobs can qualify for financial insurance that may lower the premiums,” says Young.

Start your search at HealthCare.gov to shop for a variety of comprehensive plans. If your state runs its own Marketplace, HealthCare.gov will direct you to it. The website allows you to:

  • Compare available plans and costs
  • Enroll in a new health insurance plan
  • Find out if you qualify for coverage through Medicaid or the Children’s Health Insurance Program (CHIP)
All Marketplace plans cover essential health benefits such as prescription drugs, emergency services, hospitalization, and preventive health services such as type 2 diabetes screenings and mammograms.

Plans differ based on where you live. To browse plans, enter your ZIP code and provide basic information about your household and income. From there, you can explore different plan types and narrow down your search based on cost, the provider network, or specific benefits.

 Costs also vary depending on geography, but monthly premiums for the lowest cost plans average $456 a month (based on a 40 year-old in 2026, before tax credits).

 You may qualify for a premium tax credit, however, that could lower your premium substantially. The enhanced credits expired after 2025, so premium tax credits are limited to those with incomes between 100 and 400 percent of the federal poverty level.

The enrollment period for Marketplace plans typically runs from November 1 to January 15, but the loss of a job is considered a qualifying life change that allows you to enroll in a plan outside that window, generally within 60 days of losing your coverage.

Medicaid

Also accessed through the HealthCare.gov website, 40 states and Washington, DC, have expanded their Medicaid programs to cover nearly all people who live in households that fall below a certain income level. If you live in a state with Medicaid expansion and your household income is up to 138 percent of the federal poverty level (about $22,000 for an individual), you will likely qualify.

 Starting in 2027, most adults who qualify for Medicaid through a state expansion will also need to complete at least 80 hours of work, community service, a training program, or be enrolled in school at least part-time, unless they’re exempt.

 The HealthCare.gov site contains tools that help you determine if you’re eligible for a plan, and you’ll be directed to a state-based website for more specifics about available plans.

“Low-income folks will be eligible for Medicaid rather than financial assistance through the Marketplace,” says Young. “If you qualify, there is currently no insurance premium.”

Insurance Brokers

An insurance broker is a middleman who helps people find policies that suit their individual needs. If you want someone with expertise to weigh in on the health plan you choose, rather than finding one yourself on HealthCare.gov, both Young and Corlette say to proceed with caution. While there are many reputable brokers, there are also insurance companies that sell unregulated health insurance.

Corlette adds that you should not choose one that only operates online, and you should never enter your phone number into any website until you’re ready to choose a plan, or you’ll be bombarded with unwanted texts and calls from insurance brokers.

“Find someone in your neighborhood who has to look you in the eye — at the YMCA, the grocery store, or the baseball field,” says Corlette. “There is speed and efficiency associated with online services, but you don’t want to mess around with something as financially critical as a health insurance policy.”

Catastrophic Health Insurance

These types of plans are designed to protect people from expensive and unexpected medical costs, like hospital bills related to an accident or medical emergency, says Young. Catastrophic plans have low monthly premiums and very high deductibles. They’re only available for people under age 30 or those who qualify for a hardship or affordability exemption if Marketplace or job-based insurance is unaffordable.

 One calculation found that the average lowest-cost catastrophic Marketplace plan is $346 a month for someone who is 27 years old.

These plans cover the same essential benefits as other Marketplace plans, and they pay for at least three primary care visits a year before you’ve met your deductible.

Community Health Centers

If you can’t afford or don’t qualify for a plan on the Marketplace and also don’t qualify for Medicaid savings, you may be able to access care at a community health center in your area. Costs are on a sliding scale depending on your income. These facilities offer:

  • General primary care
  • Prenatal care
  • Immunization for babies
  • Referrals to specialized care, such as mental health, substance abuse, and HIV/AIDS treatment

The Health Resources & Services Administration’s Find a Health Center tool allows you to search for a health center near you.

Resources We Trust

EDITORIAL SOURCES
Everyday Health follows strict sourcing guidelines to ensure the accuracy of its content, outlined in our editorial policy. We use only trustworthy sources, including peer-reviewed studies, board-certified medical experts, patients with lived experience, and information from top institutions.
Resources
  1. Continuation of Health Coverage (COBRA). U.S. Department of Labor.
  2. A Worker’s Guide to Health Benefits Under Cobra. U.S. Department of Labor.
  3. Annual Family Premiums for Employer Coverage Rise 6% in 2025, Nearing $27,000, With Workers Paying $6,850 Toward Premiums Out of Their Paychecks. KFF. October 22, 2025.
  4. FAQs on COBRA Continuation Health Coverage for Workers. U.S. Department of Labor.
  5. What Is the Health Insurance Marketplace? U.S. Department of Health and Human Services. April 20, 2023.
  6. A Quick Guide to the Health Insurance Marketplace. HealthCare.gov.
  7. See Plans and Prices. HealthCare.gov.
  8. Average Monthly Marketplace Premiums by Metal Tier, Timeframe: 2026. KFF.
  9. Saving Money on Health Insurance. HealthCare.gov.
  10. A Quick Guide to the Health Insurance Marketplace. HealthCare.gov.
  11. Federal Poverty Levels 2026. U.S. Department of Health and Human Services. October 1, 2026.
  12. Medicaid Community Engagement Requirement for Certain Individuals Interim Final Rule With Comment Period (CMS-2454-IFC). Centers for Medicare & Medicaid Services. June 1, 2026.
  13. Catastrophic Health Plans. HealthCare.gov.
  14. Policy Changes Bring Renewed Focus on High-Deductible Health Plans. KFF. January 5, 2026.
  15. How to Find Low-Cost Health Care in Your Community. HealthCare.gov.
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