How to find new health insurance after job loss
Losing a job is incredibly stressful — especially if you relied on your former employer for health insurance coverage. If you find yourself suddenly out of a job due to circumstances like a layoff or furlough, know that you have options for coverage. Here’s how you can quickly get health insurance after losing a job and your employer-sponsored coverage.
What to do after losing your employer-sponsored health insurance
When you buy your own health insurance (not through an employer), you typically sign up during Open Enrollment. However, there are certain circumstances that allow you to enroll in coverage outside that window.
Life changes like moving, turning 26 or losing job-based coverage (no matter the reason) qualify you for a Special Enrollment Period (SEP). You may also qualify for an SEP if your employer stops offering health insurance or you go from working full-time to part-time.
An SEP gives you 60 days from the day you lose health insurance to enroll in a new plan, no matter the time of year. The only time you aren’t eligible for an SEP is if you voluntarily drop your job-based coverage while you’re still employed, or if you lose your coverage due to not paying your premium.
SEP enrollment windows are limited. To avoid a gap in coverage, you’ll want to make your choice as soon as possible.
Your options for health insurance coverage after losing your job
1.
Keep your existing coverage temporarily through COBRA
The Consolidated Omnibus Budget Reconciliation Act — or COBRA — allows you to keep your job-based health insurance for up to 18 months after you leave your job. However, COBRA can be expensive because you may be responsible for up to 102 percent of the cost of your premium.
Continuing your coverage through COBRA may be a good option if you see multiple specialists or are in the middle of treatment for a health condition. If you go with this option, you won’t have to worry about disrupted appointments or having to change health care providers. An important thing to remember is once you opt into COBRA, you can’t change to a different plan outside of the standard Open Enrollment window until it ends 18 months later.
2.
Get a new individual or family plan
If you don’t need to or can’t afford to stay on your existing plan through COBRA, you can sign up for a new Affordable Care Act (ACA) individual health insurance plan.
Wellmark offers several options for individual and family health plans, and you may even be eligible for a premium tax credit (subsidy).
Learn more about individual and family health plans from Wellmark
Wellmark offers a variety of ACA health insurance plans in Iowa and South Dakota. Learn how to confidently select a plan that fits your health needs and budget.
Other options for health insurance coverage
Depending on certain circumstances, you may have a few other options for health insurance after you lose employer-based coverage. For example:
- If you’re younger than 26 and lose your health insurance, you may be able to enroll in your parent’s current plan.
- If you’re 65 or older, you can sign up for Medicare.
- If your spouse currently has coverage through their employer, you can enroll in their plan.
- If you were the primary source of income for your family, you may qualify for Medicaid.
Start shopping for your new plan
Whether you prefer to shop on your own or with help from an agent, Wellmark has tools and resources that make finding a new individual or family plan as easy as possible.