You have more than two options
Most people believe the choice is COBRA or nothing. In practice there are usually five, and COBRA is rarely the cheapest.
1. A marketplace plan
Losing job-based coverage opens a 60-day Special Enrollment Period. Premiums may be reduced by a premium tax credit depending on your household income for the whole calendar year — which, after a mid-year job loss, is often far lower than your old salary suggests. This is the option people most often underestimate.
2. COBRA
Your existing plan, continued at the full price plus 2%. Same doctors, same network, and your deductible progress carries forward. Expensive, but sometimes the right answer — particularly mid-treatment or late in the plan year. More on how COBRA works.
3. A spouse's or parent's employer plan
Often the cheapest option on the table, because their employer is subsidizing it. But the window is 30 days, not 60. Check this first, before you spend weeks comparing anything else.
4. Medicaid
Eligibility is based on your current monthly income, not last year's. A job loss can make you eligible immediately even if your annual total looks too high. There is no enrollment window — you can apply on any day of the year, and coverage can begin quickly.
5. A new employer's plan
If you start a new job soon, its plan may have a waiting period of up to 90 days. Bridging that gap is a specific, solvable problem — and worth planning before the gap starts, not during it.
Related
Turning 26 · Retiring before 65 · A cut in hours, not a job loss · Coverage after a divorce · Is COBRA worth it? · Declining COBRA · What coverage costs
Do this in the first week
- Write down the exact date your coverage ends. Often the last day of the month you left, not your last working day. Every clock runs from this date.
- Check the spouse or parent option immediately — 30 days, and it closes first.
- Estimate your household income for the full calendar year, including what you have already earned plus severance and unemployment benefits. This determines your marketplace savings.
- Keep the paperwork. Your termination letter and COBRA election notice are the proof of your qualifying event.
- If money is very tight, check Medicaid first — it has no window and no premium.
Two things people get wrong
Counting income from the old salary
Premium tax credits are based on your total household income for the calendar year, not your former annual rate. Someone earning $90,000 who loses their job in March may have a very different figure for the year as a whole — and a correspondingly different result. Estimating from the old salary can wrongly rule out substantial savings.
Forgetting that severance and unemployment count
Both count toward the income used for marketplace savings. Unemployment benefits are taxable income. Guessing too low creates a reconciliation bill at tax time; guessing too high overstates your cost. Estimate honestly and update the marketplace if your situation changes during the year.
Common questions
How long do I have health insurance after leaving a job?
Usually through the end of the month in which you leave, though some employers end it on your last working day. Your termination paperwork states the exact date, and every deadline that follows runs from it.
Does quitting affect my options differently than being laid off?
Not for coverage purposes. The qualifying event is the loss of coverage, not the reason. Both open a 60-day Special Enrollment Period, and both make you eligible for COBRA. It can affect unemployment benefits, which in turn affect the income figure used for marketplace savings.
Is COBRA or a marketplace plan cheaper after a layoff?
It depends on your household income for the year. COBRA has no subsidy of any kind. Marketplace premiums may be reduced by a tax credit. After a mid-year job loss, income for the year is often low enough that a marketplace plan costs considerably less — but if you are mid-treatment or have met most of your deductible, COBRA's continuity can still win.
Can I get Medicaid after losing my job?
Possibly, and it is worth checking first. Medicaid eligibility is assessed on current monthly income rather than annual, so a job loss can qualify you right away. There is no enrollment window and no premium. Eligibility rules differ between states.
What if I get a new job with a waiting period?
New employer plans can impose a waiting period of up to 90 days. Bridging it is a common, solvable problem — the right answer depends on how long the gap is and whether anyone needs care during it.
Does severance count as income for marketplace savings?
Yes. Severance and unemployment benefits both count toward the household income used to calculate premium tax credits. Include them when estimating, and update the marketplace if things change.
Can I keep my same doctors?
On COBRA, yes — it is the same plan and the same network. On a new marketplace plan, only if those doctors are in the new plan's network, which varies by plan even within one insurer. Check the specific plan's directory before enrolling, and check the drug formulary too.
Where can I find health insurance near me after a layoff?
Plans are sold and priced by county, so what is available depends on where you live rather than on finding a local office. Calling (866) 821-1808 connects you with a licensed agency that can pull the plans available in your county and compare them against your COBRA notice.
Talk it through with a licensed agent
Which option is right depends on your state, your income and which doctors you need to keep. A licensed agent can walk through it with you in about eight minutes.
Free to call, no obligation, and we never ask you for payment. CobraScout is paid by the agency that answers, not by you. TTY 711.
Sources
- HealthCare.gov, Special Enrollment Periods and qualifying life events
- U.S. Department of Labor, FAQs on COBRA Continuation Health Coverage for Workers
- KFF, 2025 Employer Health Benefits Survey
- HealthCare.gov, Losing job-based coverage