What to Do If You Lost Your Health Insurance Due to COVID-19
Are you one of the estimated 3.5 million U.S. workers who recently lost job-based health insurance because of COVID-19? If so, you now have a short window to shop for a new health plan. We advise you to take advantage of this opportunity as soon as possible. Health insurance is an important way to protect you and your family both medically and financially, and it provides peace of mind that you can access care if you ever need it.
What Is a Qualifying Event?
Open Enrollment is the one time of year–usually from November to December–when you can sign up for a Marketplace plan. Marketplace plans are also sometimes called Obamacare or ACA plans. These individual and family health insurance options are sold on HealthCare.gov and state health insurance exchanges, like Covered California.
In order to get health insurance outside of Open Enrollment you need to have a qualifying event. This is a special circumstance or life event that gives you a limited window of time, called a Special Enrollment Period (SEP), to enroll in or switch to a new Marketplace plan.
Is Losing Job-based Health Insurance a Qualifying Event?
Yes! Whether you (or your spouse) quit, were fired, or were laid off, losing job-based health insurance qualifies you for a Special Enrollment Period.
Once you lose your employer-sponsored health insurance ends, you have 60 days to sign up for a new health plan. Keep in mind that it’s ideal to enroll as soon as possible. You must apply before the end of the month for your insurance to kick in the following month.
How Do I Sign up for Marketplace Health Insurance When I Lose My Job?
If you decide to apply for new health insurance during your SEP, you can explore all your options for free right here on Stride. We will also guide you through the enrollment process.
When you apply for a new plan, you will be required to submit documentation that proves you recently lost job-based coverage (or that you will lose it in the next 60 days). This evidence needs to have your name and date of coverage loss. Some good documentation options include:
A letter from an insurance company, on official letterhead, that shows your coverage’s cancellation
A letter from your employer, on official letterhead, that confirms that your employer dropped your coverage
A letter about COBRA coverage
See more documentation options here
Are Marketplace Plans Affordable?
Health insurance prices depend on your zip code, family size, and income level. The good news? The majority of Americans qualify for subsidies, or money that the government pays toward part or all of your health insurance. Based on your eligibility, you could pay as little as $1 a month for a health plan!
I Was Offered Cobra. Should I Get That Instead?
Employers sometimes offer COBRA coverage when you quit or are terminated from your job. COBRA allows you and your family to stay enrolled in your job-based health insurance, but you will be required to pay the full monthly premium. Whether or not you enroll in COBRA depends on your family’s needs. It can be a good option if you use your insurance often and prefer to keep the benefits you’re used to. However, COBRA tends to be very expensive, so it may be wise to enroll in a more affordable plan elsewhere.
What Other Insurance Options Do I Have after I Lose My Job?
If you’re not sure you want to sign up for COBRA or Marketplace health insurance, you can also look into these options:
Medicaid: If your income has changed significantly, you may be eligible for Medicaid. This is a government-run program that provides free or low-cost health coverage. Enrollment in Medicaid is income-based and open year-round.
Coverage through Your Family or Spouse: If your parents or spouse have their own health insurance, they may be able to use your qualifying event as an opportunity to add you to their plan. This will increase the price of the plan. Remember: you can only stay on your parents’ health insurance if you are under the age of 26.
Short Term Health Plans: Short term plans are a type of health insurance that are not compliant with the Affordable Care Act’s (ACA) regulations. This means they aren’t required to cover certain benefits, like maternity care or mental health. These plans tend to be cheaper and cover fewer medical services, but they can provide some protection in case of an emergency.
Where Can I Get Help Finding Health Insurance?
We understand that losing your job and employer-sponsored benefits is overwhelming. If you’re not sure what your options are or what type of health plan to choose, our licensed experts are here to help. Head here for free health insurance support.
