Losing your job vs. quitting: Is there a difference when it comes to health insurance coverage?

Whether you lose your job or leave it, there are still ways to get covered. Here’s how.

People lose and/or quit their jobs all the time. It can be a scary situation whether you’re single, married or married with children.

For example, let’s say a single person loses or quits their job. And they do this outside of the annual Open Enrollment Period. Can they still get insured through the Affordable Care Act (ACA) Health Insurance Marketplace? Or if a person is married and their spouse doesn’t have employer-based insurance, what are their options for coverage?

The good news is that you still have several ways to get health insurance. Whether you quit or are let go, you get a Special Enrollment Period (SEP). During this time, you can sign up for an ACA Marketplace plan. You may also have the choice of getting or going on Medicaid, depending on your income level. Even if you miss the deadline for enrolling, based on your SEP, there are still options, such as short term medical insurance.

Below, learn more about your ability to get health insurance after job loss.

Need a health insurance plan? Call a licensed insurance agent at (800) 827-9990 to talk about available coverage today.

What is the difference between getting let go and quitting your job?

For some people, there may be an emotional difference between your company letting you go and you telling your boss, “I quit!” But as far as who can get health insurance, there’s no big difference. Both situations cause an SEP. This gives you a short time to look around, shop and sign up for a new health insurance plan. That is, if you don’t already have a spouse’s plan you can be added to.

What is a Special Enrollment Period?

A Special Enrollment Period, or SEP, is a limited time in which you can sign up for health insurance. You’d do that by either:

• Buying health insurance on the federal Health Insurance Marketplace
• Buying insurance on your state’s exchange
• Buying insurance through a private insurer

You can also get an SEP if you:

• Get married
• Get divorced or legally separated and lose health insurance
• Have a baby or adopt a child
• Move to a new home in an area where different health insurance plans are available (that is, as long as you were covered before your move)
• Turn 26, the age at which you’re taken off your parents’ health insurance plan
• Become a U.S. citizen
• Typically, you will have 60 days to enroll. But in some cases, you may even have 60 days before the event to enroll in a new plan.

If you miss that window, you will have to wait until the next Open Enrollment Period (OEP). That typically starts in November. But thankfully, that’s not the only other choice you have.

COBRA can be expensive — especially if you lose your job. That’s where a short-term medical plan can come in handy. Call a licensed insurance agent at (800) 827-9990 to talk about available coverage.

What other health insurance options do I have if I miss my Special Enrollment Period?

You have several options if you miss your SEP’s 60-day window. These include:

1. COBRA. That stands for the Consolidated Omnibus Budget Reconciliation Act. It’s a federal law that allows the following people to stay on their former company’s group health plan when their job ends:

• Yourself
• Your spouse
• A former spouse
• Your children

Generally, COBRA applies to companies that have health coverage for at least 20 employees. Some states also have their own COBRA-like laws for companies with fewer than 20 employees.

With COBRA, you may:

• Keep your health insurance from your employer for up to 18 months
• Be responsible for the full cost of the insurance premium, plus a 2% administrative fee
• Keep the same health coverage and access to your current doctors and facilities

2. Medicaid is a program run by the federal and state governments. It helps cover medical costs for people who meet certain income levels. The federal government has general rules that all state Medicaid programs must follow. But each state runs its own program. This means eligibility requirements and benefits can vary from state to state.

For example, in 2025, you could get Medicaid in New York if you made $1,732 per month or $20,783 annually (or less). A married couple would be eligible at or below $2,351/month or $28,208/year.

Have kids that need coverage? Another choice could be CHIP (Children’s Health Insurance Program). That provides kids with health coverage who are in a family with an income that’s too high to qualify for Medicaid. The family could also have an income that’s too low to afford coverage through a private insurer.

3. Short term medical insurance. Like its name suggests, short term medical insurance is only meant to cover you for a short time. Right now, that’s 3 months, plus a 1-month extension, for a grand total of 4 months in a 12-month period.

Short term medical insurance is often more affordable than COBRA and/or the monthly premium for an ACA plan. But it’s important to understand that short term insurance doesn’t have the protections of an ACA plan. That means you may be denied coverage if you have a pre-existing condition, like cancer or diabetes.

Which insurance option should I choose if I lose my job?

Whether you choose an ACA plan, COBRA, Medicaid or short term medical insurance will depend on some factors. These can include your income, savings and personal circumstances. Here are some questions to ask yourself before choosing your option:

• How soon will I be able to get a new job? If it’s within 18 months, it might be worthwhile to go with COBRA. If it’s within 4 months or fewer, a short term plan could be a good choice, too. If you think it might be a little longer-term — or you want to start your own business — an ACA plan might be the right choice.
• Do I want to stick with my favorite doctors and facilities? If so, COBRA is likely your best choice, because that’ll allow you to continue with your current coverage. It’ll just likely be more expensive than the other options.
• Will my family have enough money each month or year to cover health insurance? If you think the answer might be no, Medicaid could be a suitable choice.

Whatever choice you go with, it’s important to have health insurance coverage. It will help you and your family if you get sick or hurt while you’re not working. And it can continue to help you after you get your new job.

Still need some help exploring a health insurance plan? Call a licensed insurance agent at (800) 827-9990 to talk about available coverage.

For informational purposes only. This information is compiled by HealthMarkets Insurance Agency and does not diagnose problems or recommend specific treatment. Services and medical technologies referenced herein may not be covered under your plan. Please consult directly with your primary care physician if you need medical advice.