What to Know About Your Insurance Options After a Layoff

Unfortunately, getting laid off is more common than anyone would like. By one estimate, around 40 percent of American workers will experience a layoff at some point in their careers. And while it can feel temporarily comforting to know at least you’re not alone, the reality is there are a lot of logistics to handle in the wake of losing your job.

You’re likely concerned about filing for unemployment, polishing your resume, and ultimately landing a new position, ideally as quickly as possible. But you may also be wondering what will happen to your health insurance coverage. The good news is you have options, and there are some straightforward steps you can take to maintain your coverage and protect your health and wellbeing during this trying time.

Consider COBRA

If you got your health insurance through work before you were laid off, your employer might offer you COBRA coverage. COBRA stands for Consolidated Omnibus Budget Reconciliation Act—a lot of big words for a simple concept: The idea is you can stay on your employer-provided health insurance for a period of time after being let go.

You’ll be notified by your employer if you have access to continuing coverage, and you just have to enroll within 60 days of your layoff. COBRA coverage lasts for 18 months, unless you have a disability. Then, you can stick with your existing coverage for 29 months.

There is a downside, though—and for some people, it’s a big one: Without a subsidy from your employer, COBRA gets costly, fast. You’ll have to pay for your full monthly premium and administrative fees, which typically adds up to much more than you’re used to paying through your employer.

Look Into Marketplace Insurance

A short stint on COBRA can help you bridge the gap, but because it’s so pricey, you might want to consider Marketplace coverage sooner rather than later. 

Marketplace plans, also called Affordable Care Act (ACA) plans or Obamacare, are available through Healthcare.gov or state health insurance marketplaces. Usually, you can only enroll in Marketplace coverage during Open Enrollment, the annual period from November 1 to January 15 when anyone can access health insurance.

But a layoff is what’s known as a qualifying life event that gives you access to a Special Enrollment Period so you can get coverage now. You have 60 days after your layoff (or any other qualifying event) to get a new health plan.

And there’s even better news: We can help you explore your Marketplace options right here on Stride. We’ll help you find the most affordable options with our personalized plan recommendations and side-by-side comparison tools. We’ll even guide you through the application process. And if you still have questions, we’ve got unbiased advisors on standby to get you the answers you need.

What About Dental, Vision, and Life?

You can continue your dental and vision coverage through COBRA. But just like health plans, dental and vision plans will typically cost you more than they did previously when your employer was footing some of the bill. Stride can help you find the right dental plan and vision plan for the coverage you need at a cost you feel comfortable with during this transition.

If your life insurance was tied to your employer, that will most likely end with your layoff. But some companies offer portable life insurance benefits, which means you may be able to take your coverage with you (although possibly at a higher price). Talk to your HR representative about the status of your life insurance and other coverage if you can. Stride can also help you bridge the gap with access to life insurance so you have peace of mind in the meantime.

Supplementing Your Income

Understandably, many workers worry about paying the bills after getting laid off. For some, a period of unemployment or underemployment is an opportunity to make a little extra on the side with some gig work. Maybe you’re curious about picking up some food delivery shifts or spending a few hours during the day driving for a rideshare platform.

Navigating gig work is a little different than navigating full-time, W-2 employment. You’re going to want to have a system in place for tracking your expenses, mileage, and income, so when tax season rolls around, you’re ready to file with ease and save money on taxes. You can track it all (and get access to discounts and other perks) from the palm of your hand with the free Stride app.

Finding Financial Support

Depending on your annual income, you may also qualify for government assistance programs. These programs can be a crucial safety net while you search for your next opportunity.

Start by finding out if you qualify for unemployment benefits. Select your state on this map to start the process. Unemployment is awarded to workers who lost their jobs through no fault of their own. You’ll typically be paid about half of your regular wages for 26 weeks.

You may also qualify for additional support, such as self-employment assistance, temporary assistance for needy families, or an earned income tax credit. Learn more about these and many other helpful resources in our guide to government assistance.

We know headlines about mass layoffs and rising unemployment are alarming, and losing your job—and your essential health, dental, vision, and life coverage—is not a challenge anyone takes on willingly. To take charge during this trying time, see what options are available for continuing your coverage today.