Health Insurance Options if You’re Unemployed

When you are faced with the possibility of unemployment, one of your top concerns could be maintaining affordable health insurance coverage for you and your family.

If you’re unemployed, you may be able to get an affordable health insurance plan through the Marketplace with savings based on your income and household size. You may also qualify for free or low-cost coverage through Medicaid or the Children’s Health Insurance Program (CHIP).

Your household size and income, not your employment status, determine what health coverage you’re eligible for and how much help you’ll get paying for coverage.

Even if you are currently employed, keep reading to discover some options that might help you access the healthcare you need.

A Marketplace Insurance Plan

You may qualify for premium tax credits and savings on deductibles, copayments, and other out-of-pocket costs based on your household size and income. Some people with low incomes may end up paying smaller premiums.

COBRA

COBRA is a federal law that may let you pay to stay on your employee health insurance for a limited time after your job ends (usually 18 months). You pay the full premium yourself, plus a small administrative fee.

Circumstances that may trigger COBRA are:

• Job loss
• Reduction in hours that cause a loss in coverage
• Divorce or separation from a covered employee
• The death of a covered employee
• The employer becomes entitled to Medicare
• Or a dependent of a covered employee ceases to be a dependent under the terms of the plan (an adult child turning 26, for example)

Medicare

If you are 65 or older, or have a qualifying condition, Medicare may be a good long-term solution for unemployed medical insurance.

Medicaid

Medicaid provides coverage to millions of Americans with limited incomes or disabilities. Many states have expanded Medicaid to cover all people below certain income levels.

Children’s Health Insurance Program (CHIP)

CHIP provides coverage for children, and in some states, pregnant women, in families with incomes too high for Medicaid but too low to afford private insurance.

How Can You Get Health Insurance Without a Job?

Group insurance through an employer may be the most common way to obtain health coverage, but it is not the only one. If you find yourself unemployed, a Special Enrollment Period (SEP) allows you to enroll in an individual or family health plan within 60 days.

Other events that might make you eligible for an SEP include:

• Changing your marital status
• Having a baby (or adopting a child)
• Becoming a US citizen
• Moving to an area where your current plan is not offered
• Losing health insurance from your employer

Once you enter your SEP, you can shop for health insurance on the exchange offered by your state or through a licensed broker. If you choose a plan that is compliant with the Affordable Care Act, you may qualify for subsidies if you can’t afford your health plan on your own. With increases in subsidies due to the ARPA, more people are qualifying for subsidies than ever before.