What Do I Do for Health Insurance if I Lose My Job?

Loss of health insurance coverage can be stressful, particularly on top of an unexpected job loss. But your options for getting a new policy may be better than you expect. Today, most people who aren’t covered by job-based insurance have a pathway to affordable coverage because of the Affordable Care Act, also known as Obamacare.

“This is not the same insurance market we had during the Great Recession in 2008,” says Sabrina Corlette, a juris doctor, a research professor, and the founder and codirector of the Center on Health Insurance Reforms at Georgetown University in Washington, DC. “There is a real insurance safety net out there that you should take advantage of.”

Why is it so much more than when you had a job? When you get health insurance through your employer, they pay the bulk of the premium, says Christen Linke Young, a visiting fellow with Brookings Institution’s Center on Health Policy in Washington, DC.

“What you pay as an employee is maybe 25 percent of the total cost,” she says. “But you have to pay 100 percent of the premium when you use COBRA. For most people, that won’t be the most affordable option.”

“If someone is in the middle of a very expensive healthcare service, leaving job-based health insurance while in treatment for cancer or another health problem that’s very costly, they may value continuity with their health insurance,” says Young.

Young added that with the changes Congress is considering making to Medicaid and overall insurance plans, the situation could become much worse for people who lose job-based insurance. But they should still have options.

“Most people who lose their job and lose job-based health insurance do have an opportunity to find coverage that will be comprehensive and cover the medical needs of them and our families, notwithstanding potential changes that could be coming,” she says.

“It’s a unified market where people who aren’t getting health insurance through their jobs can qualify for financial insurance that may lower the premiums,” says Young.

Start your search at HealthCare.gov to shop for a variety of comprehensive plans. The website allows you to:

• Compare plans for the best coverage and affordability
• Enroll in a new health insurance plan
• Learn about tax credits for private insurance or health programs like Medicaid or the Children’s Health Insurance Program (CHIP)

The enrollment period for Marketplace plans typically runs from November 1 to January 15, but the loss of a job is considered a qualifying life change that allows you to enroll in a plan when you need one.

“Low income folks will be eligible for Medicaid rather than financial assistance through the Marketplace,” says Young. “If you qualify, there is currently no insurance premium.”

An insurance broker is a middleman who helps people find policies that suit their individual needs. If you want someone with expertise to weigh in on the health plan you choose — rather than find one yourself on HealthCare.gov — both Young and Corlette say to proceed with caution. While there are many reputable brokers, there are also insurance companies that sell unregulated health insurance.

Corlette adds that you should not choose one that only operates online, and you should never enter your phone number into any website until you’re ready to choose a plan, or you’ll be bombarded with unwanted texts and calls from insurance brokers.

“Find someone in your neighborhood who has to look you in the eye at the YMCA, the grocery store, or the baseball field,” says Corlette. “There is speed and efficiency associated with online services, but you don’t want to mess around with something as financially critical as a health insurance policy.”

These plans cover the same essential benefits as other Marketplace plans, and they pay for at least three primary care visits a year before you’ve met your deductible.

• General primary care
• Prenatal care
• Immunization for babies
• Referrals to specialized care, such as mental health, substance abuse, and HIV/AIDS treatment

The Health Resources & Services Administration’s Find a Health Center tool allows you to search for a health center near you.

• If you lose your job-based health insurance, there are several options to find a new plan, including COBRA, the Health Insurance Marketplace, Medicaid, and catastrophic health insurance. It’s also possible to get affordable care through a community health center.
• COBRA allows you to continue using the plan you had and maintains your access to the doctors you already trust. But since your employer is no longer chipping in for part of the cost, it can be expensive.
• The Health Insurance Marketplace is the place to start to look for affordable plans, whether you choose a Marketplace, Medicaid expansion, or catastrophic plan. These policies will differ in costs and services depending on where you live.
• If you don’t qualify for Marketplace insurance or if your state doesn’t offer Medicaid expansion, you can visit a community health clinic for medical care.