Lost Your Job? Your Health Insurance Options, Including COBRA
Losing job-based coverage opens a 60-day window to get new health insurance. Compare COBRA, Marketplace plans, a spouse's plan and Medicaid.
Updated October 3, 2026 · 6 min read
Key takeaways
- Losing job-based coverage gives you a 60-day special enrollment period for a Marketplace plan.
- COBRA lets you keep your exact plan, usually for up to 18 months, but you may pay up to 102% of the full premium.
- A drop in income can qualify you for Marketplace subsidies or Medicaid.
- Dropping COBRA midyear doesn't open a new enrollment window, so decide carefully.
Option 1: COBRA
COBRA lets you keep your employer's health plan after you leave a job, generally if the employer has 20 or more employees. Coverage usually lasts up to 18 months, and longer in some situations. You typically have 60 days to elect it, and coverage is retroactive to the day your old coverage ended.
The catch is cost. Your employer usually stops contributing, so you can be charged up to 102% of the full premium. COBRA can still make sense if you've already met your deductible this year or you're in the middle of treatment with doctors you want to keep.
Option 2: A Marketplace plan
Losing job-based coverage qualifies you for a special enrollment period. You generally have 60 days after your coverage ends to choose a Marketplace plan, and you can apply up to 60 days before if you know it's coming.
If your household income drops, you may qualify for premium tax credits that make a Marketplace plan far cheaper than COBRA.
Free, no obligation, about two minutes.
Option 3: A spouse's or partner's employer plan
Losing your coverage typically lets you join a spouse's employer plan mid-year. Employer plans must give you at least 30 days to request enrollment, so act quickly.
Option 4: Medicaid or CHIP
If your income is low enough, you may qualify for Medicaid, and your children may qualify for CHIP. You can apply any time of year.
Watch out for the COBRA trap
If you choose COBRA and later cancel it voluntarily, that usually doesn't count as a qualifying event for a Marketplace plan. You'd have to wait for open enrollment. Running out of COBRA at the end of your 18 months does qualify. Compare both options before you decide.
Frequently asked questions
How much does COBRA cost?
Up to 102% of the total premium, including the share your employer used to pay. Your former employer's benefits notice will list the exact amount.
Can I go without insurance for a month or two?
You can, but you'd be exposed to the full cost of any accident or illness. With COBRA's retroactive election, some people wait and elect only if they need care, but understand the deadlines first.
Do I qualify for subsidies if I'm getting severance or unemployment?
Subsidies are based on your expected household income for the year. Severance and unemployment benefits count as income.
Sources
How this guide was made: researched and drafted with AI assistance (Wren AI), and checked against the government and industry sources listed above. Wren AI is an AI tool, not a person or a licensed insurance agent.
This guide is general information, not insurance, legal or tax advice. Coverage, rules and prices vary by state, insurer and policy. Confirm details with a licensed agent before you buy. Read our editorial policy.