Health insurance between jobs: Marketplace, COBRA and private options

You usually have more than one path

HealthCare.gov says that if you lose job-based health insurance, your two main official options are to enroll in a Marketplace plan or to sign up for COBRA continuation coverage. You may also be able to join a spouse’s or parent’s group plan, or look at private, off-exchange plans. Compare costs and start dates before a deadline expires.

Leaving a job for any reason, including quitting or being fired, can qualify you for a Marketplace Special Enrollment Period if you lose that job-based coverage.

Marketplace coverage after a job loss

HealthCare.gov says you have 60 days after losing job-based coverage to enroll in Marketplace coverage. Marketplace plans do not start the same day job-based insurance ends: they take effect the first day of the month after that coverage ends. For example, if coverage ends on March 7 and you pick a Marketplace plan by March 31, coverage can start April 1.

When you apply, you will find out whether you may qualify for premium tax credits, extra savings, or free or low-cost coverage through Medicaid or CHIP. Savings depend on your estimated income for the full calendar year, including income earned before you left the job.

If a new job has a waiting period, HealthCare.gov says you can buy a Marketplace plan to cover the gap. If a spouse offers job-based coverage that is considered affordable, you generally will not qualify for Marketplace premium tax credits even if you decline that offer.

COBRA, in brief

COBRA can let you keep the same job-based plan for a limited time, often 18 months, if the employer is covered. You usually pay the full premium plus a small administrative fee. The Department of Labor says each qualified beneficiary has at least 60 days to elect coverage, and 45 days after election to make the first payment.

HealthCare.gov notes that when COBRA coverage ends, you have 60 days to enroll in a Marketplace plan. Voluntarily dropping COBRA, including stopping premium payments on your own, generally does not create a Special Enrollment Period. Involuntary loss of COBRA can.

Private plans and this site

Some people compare private PPO, short-term, or other off-exchange plans while they look at Marketplace and COBRA options, especially if they expect a short gap or do not qualify for Marketplace savings. Those plans are not comprehensive in every case, may exclude pre-existing conditions, and may be medically underwritten. This site does not sell insurance. With your consent, a request goes only to one licensed agency, Private Market Health, and is never resold.

Common questions

Related guides

• COBRA alternatives after you leave a job
• Health insurance outside Open Enrollment
• Short-term health insurance limits and warnings

Looking for a call about cobra alternatives? Read the plan page or use the form on this page.