How to Get Health Insurance When You Quit Your Job: What You Need to Know About Your Health Insurance Coverage
The Gist
Wondering how to get health insurance when you quit your job? Don’t worry; there are options available to ensure you stay covered. If you recently quit your job or were laid off, you may find yourself without comprehensive health insurance coverage. While there may be more pressing matters like finding new employment, it’s important to find health coverage because a lapse could mean massive out-of-pocket expenses in the future.
Can you get health insurance if you quit your job? The answer is yes, thanks to Special Enrollment Period.
Fortunately, you have options, including Affordable Care Act (ACA) plans, COBRA, and short -term health insurance.
Losing your job is a qualifying life event that grants you what’s called a Special Enrollment Period. This allows you to sign up for health insurance outside of the Open Enrollment Period that runs from Nov. 1 to Dec. 15. You have 60 days after losing your job to sign up.
How to get health insurance when you quit your job? Shopping for health insurance is easier now, thanks to the ACA — if you’re in need of insurance, a comparison shopping site like Stride will be really helpful.
In This Article
What Happens with Health Insurance When You Quit Your Job or Get Laid Off?
What Is a Special Enrollment Period, and Do I Qualify for It?
How Do I Enroll for Health Insurance After a Layoff or Quitting?
What’s the Best Way To Shop for Health Insurance After Quitting My Job or Getting Laid Off?
In Short
A few generations ago, you would get hired for a job in your mid-twenties, earn a pension, and retire comfortably in your fifties or sixties. The financial uncertainty of the 2000s has completely upended this order, and it’s now not unusual for someone to work at multiple companies in a single career.
If you’ve recently lost your job, don’t despair — you’re not alone. According to the Bureau of Labor Statistics, some 6.1 million Americans are currently unemployed. In addition to unemployment benefits that may be available to you at the state or federal level (depending on where you live), you have options when it comes to finding health insurance after quitting your job or getting laid off. From long-term options like ACA plans to temporary coverage like Short Term Health Insurance or COBRA, it’s important to understand the differences so you can make the most informed choice when shopping and enrolling.
What Happens With Health Insurance When You Quit Your Job or Get Laid Off?
When you lose your job or quit, your former employer no longer has to offer you benefits. If you got health insurance through your job, your coverage will end. When exactly it ends can vary based on your situation:
Health insurance after layoff: Typically (and this is entirely at the company’s discretion), when a company does layoffs (also called restructuring or workforce reduction), they will offer some form of severance. Severance typically includes some pro-rated pay and continuation of benefits for a set time. For instance, if you are laid off on June 15, they may offer you benefits until the end of July. Unfortunately, this isn’t a hard and fast rule, and depending on the company’s financial situation, they mightchoose to sever benefits immediately.
Health insurance after quitting your job: This one’s a little more straightforward — if you quit your job, your benefits will usually expire immediately. Although, with certain contractual situations, you may earn an extension.
In either situation, you will find yourself looking for new insurance in the short term, so make sure you get that process into motion as quickly as possible. As we’ll discuss in more detail below, losing your job is a qualifying life event that entitles you to a Special Enrollment Period. This means you can enroll in a new health insurance plan outside of the Open Enrollment Period (more on that later).
I Just Lost My Job — Do I Need Health Insurance?
Yes. Absolutely. Totally. Completely. Surely. We can’t think of enough ways to say that, of course, you need health insurance. Even if you feel healthy today, health insurance can save you a lot of money if something unexpected happens. An overnight hospital stay can cost thousands or tens of thousands of dollars for someone without insurance — and that doesn’t include the medical bills for your recovery after you leave.
Depending on where you live and your income level, you may qualify for subsidized ACA plans that cover most or even all of your premium and other costs. For more information about health insurance subsidies, see our FAQ here.
What Are My Options for Health Insurance After Quitting My Job or Getting Laid Off?
After leaving or losing your job, you have a few options:
If you’re under 26: Thanks to the ACA, you may be able to get back onto your parents’ insurance.
If you live with your partner: Many companies offer insurance to significant others who live together. This is entirely at the employers’ discretion, but it is absolutely worth asking.
If you can afford COBRA: Your company may offer you access to COBRA coverage, which guarantees thatyour health insurance plan continues. This differs from employer-provided coverage in that your premiums will be higher because your employer’s contributions no longer apply.
If you need a more affordable plan: Your best bet for comprehensive coverage is the ACA marketplace (also called the ACA exchange). All ACA plans must include the 10 essential health benefits, including preventative care, hospital visits, and more. You may even qualify for subsidies that will make your monthly premiums more affordable.
If you need health care immediately and do not qualify for a Special Enrollment Period: In the rare case that you don’t qualify for Special Enrollment Period, you might need to obtain Short Term Health Insurance. This is a particular kind of insurance policy you can purchase for oneto 12 months. Unlike ACA plans, no subsidies are available, you can be denied coverage, and your policy may not cover the 10 essential health benefits.
What Is a Special Enrollment Period, and Do I Qualify for It?
With most health insurance plans, enrollment or changes to policies can only happen during the nationwide annual Open Enrollment Period. For instance, the ACA’s Open Enrollment Period for 2024 is from November 1, 2023 to January 15, 2024 in most states. Be sure to check your state’s marketplace website for up-to-date information about Open Enrollment for this year. When you have a qualifying life event — like losing your job, getting married, or having a baby — you qualify for what’s called a Special Enrollment Period. The Special Enrollment Period is a 60-day window that allows you to sign up for or change a policy.
There are four categories of qualifying life events:
Loss of health coverage: This can occur when you turn 26 and are no longer on your parent’s plan, when you lose your job, or if your income no longer meets the requirements for Medicaid, Medicare, or CHIP.
Changes in household: This can occur if there’s a death in the family, you get married or divorced, or you have or adopt a child.
Changes in residence: Any time you move to a new ZIP code, you qualify for a Special Enrollment Period. Other qualifying events: This can include becoming a citizen or leaving incarceration.
How Do I Enroll for Health Insurance After a Layoff or Quitting?
During your Special Enrollment Period, you have a few options for enrolling for health insurance:
From a federal or state marketplace: Also called “exchanges” in some states, these websites help you find the ACA plans available in your area. These are either set up by your state, or you will use the federal healthcare portal.
Directly from the insurance company: Most insurance companies allow you to purchase plans directly from their website or through agents.
Though a third-party brokerage or website: Old-school, in-person brokers might be able to help dig through the haystack, but websites like Stride help you compare and contrast all available plans.
What’s the Best Way to Shop for Health Insurance After Quitting My Job or Getting Laid Off?
We’ve covered a lot of ground here, and we totally understand if it’s overwhelming. Losing your job is a major life change — but as we mentioned above, you’re not alone. Your next opportunity will come, and who knows, it might even be the job you’ve been waiting for all along.
In the meantime, we absolutely urge you to make sure you have health insurance. Although it might be the last thing on your mind right now, it can save you thousands in out-of-pocket expenses if you have to go to the hospital or get surgery.
We here at Stride Health would like to help relieve some of that stress. Save yourself a headache; visit Stride Health to see all your health insurance options, from ACA plans to private policies.
All you have to do is enter your ZIP code, and we’ll do the rest. You can even enroll right from our site.