What to Do if You Lose Health Insurance
- You generally have 60 days from the date you lose coverage to enroll in a new health plan.
- You may be able to get coverage under COBRA or expanded Medicaid.
- The Affordable Care Act (ACA) also offers long-term coverage. Health insurance is subsidized or free for those who meet income eligibility thresholds.
Table of Contents
- Your Options for Replacing Lost Health Insurance
- COBRA Continuation Coverage
- The ACA Marketplace
- Medicaid and CHIP
- Short-Term and Indemnity Plans
- Comparing COBRA and Marketplace Coverage
- If you’re unemployed how do you get medical insurance?
- Will I owe more on my taxes if I don’t have health insurance?
- Don’t overlook your financial health
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If you’ve recently lost your job, you are probably concerned about your exposure to catastrophic healthcare costs. But there are ways to get the coverage you need so that you and your family can stay healthy.
Before anything else, know your deadline. Losing health coverage is a qualifying life event, and it opens a Special Enrollment Period, a window of time, usually 60 days, to enroll in a new health plan without waiting for the annual open enrollment period. The sections below walk through your main coverage options and how to compare them.
Your Options for Replacing Lost Health Insurance
Once you know your enrollment deadline, you are ready to compare coverage options side by side. Most people who lose employer-based health insurance choose from four paths:
COBRA, which continues your employer’s plan at your own cost
A Marketplace plan through Healthcare.gov, which may qualify for subsidies
Medicaid or CHIP, for people who meet their state’s income requirements
A short-term or indemnity plan, for temporary, limited coverage
COBRA Continuation Coverage
COBRA lets you keep your employer-sponsored health plan for up to 18 months after you lose your job, with the same doctors and benefits you already have. Most employers with 20 or more full-time employees offer COBRA to former employees and their covered family members.
You pay the full premium yourself, plus an administrative fee. This makes COBRA one of the more expensive replacement options. It also keeps your progress toward your annual deductible intact, and you typically have 60 days after your coverage ends to elect it.
The ACA Marketplace
The Affordable Care Act Marketplace at Healthcare.gov lets you shop, compare, and enroll in a private health plan outside an employer. Open enrollment typically runs from November 1 through January 15 each year. Losing job-based coverage opens your 60-day Special Enrollment Period to sign up outside that window.
Marketplace shoppers may qualify for premium subsidies that lower the monthly cost, based on household income. Subsidy rules change from year to year, so check your current eligibility directly on Healthcare.gov before you compare plans.
Medicaid and CHIP
Medicaid and the Children’s Health Insurance Program (CHIP) provide free or low-cost coverage for people who meet their state’s income requirements. Each state sets its own eligibility rules and runs its own application process through its state Medicaid or CHIP agency.
Unlike COBRA and Marketplace plans, Medicaid and CHIP don’t require you to wait for an enrollment period. You may apply at any time your income qualifies, including immediately after a job loss.
Short-Term and Indemnity Plans
If COBRA and Marketplace premiums don’t fit your budget, a short-term or indemnity plan could help bridge a temporary gap in coverage. Short-term plans typically offer lower premiums and broader provider access. They generally exclude preventive care, mental health care, and pre-existing conditions.
Indemnity plans work differently. They pay you a fixed amount after specific medical events, like a hospital stay, rather than covering a percentage of your bills. Read the plan details carefully before you enroll, since coverage limits and waiting periods vary by provider.
Comparing COBRA and Marketplace Coverage
Choosing between COBRA and a Marketplace plan comes down to cost, network, and how much continuity you need.
Comparing COBRA and Marketplace Coverage
| Feature | COBRA | ACA Marketplace |
|---|---|---|
| Premiums | Full cost, plus an administrative fee | May qualify for subsidies based on income |
| Deductible | Keeps your existing progress | Resets with your new plan |
| Network and doctors | Same as your prior employer plan | Varies by the plan you choose |
| Coverage length | Up to 18 months | Renews annually, like most employer plans |
| Enrollment window | 60 days after coverage ends | 60-day Special Enrollment Period, or open enrollment Nov. 1–Jan. 15 |
If you’re unemployed how do you get medical insurance?
You may know that programs like COBRA, Medicaid, and the Affordable Care Act marketplace are great options to find insurance once you become unemployed, but here is some more information you should be aware of as you work to get your family covered again.
If you were furloughed, not laid off
First, there may be a possibility you can still receive insurance from your employer. If you were furloughed and not laid off it might mean you still have coverage. A layoff means you are terminated either temporarily or permanently, whereas a furlough means you take temporary unpaid leave from work.
As a furloughed employee, you should also ask your employer how they are handling your health insurance premiums. Since you aren’t getting a paycheck right now, you probably won’t be paying your full share of health insurance, but you might have to pay those premiums back once you return to work.
Are you in a Medicaid expansion state?
Medicaid, the health insurance program provided to low-income Americans no matter their age, works differently state by state. For all states, you can qualify for Medicaid based on factors like income, disability, household size, and family status. In states that have expanded Medicaid coverage, you can qualify based on income alone.
Here is a full list of states, showing which have and have not adopted the Medicaid expansion.
Are you in a Medicaid expansion state?
| State | Medicaid Expansion Status |
|---|---|
| Alabama | Not adopted |
| Alaska | Adopted |
| Arizona | Adopted |
| Arkansas | Adopted |
| California | Adopted |
| Colorado | Adopted |
| Connecticut | Adopted |
| Delaware | Adopted |
| Florida | Not adopted |
| Georgia | Not adopted |
| Hawaii | Adopted |
| Idaho | Adopted |
| Illinois | Adopted |
| Indiana | Adopted |
| Iowa | Adopted |
| Kansas | Not adopted |
| Kentucky | Adopted |
| Louisiana | Adopted |
| Maine | Adopted |
| Maryland | Adopted |
| Massachusetts | Adopted |
| Michigan | Adopted |
| Minnesota | Adopted |
| Mississippi | Not adopted |
| Missouri | Adopted |
| Montana | Adopted |
| Nebraska | Adopted |
| Nevada | Adopted |
| New Hampshire | Adopted |
| New Jersey | Adopted |
| New Mexico | Adopted |
| New York | Adopted |
| North Carolina | Adopted |
| North Dakota | Adopted |
| Ohio | Adopted |
| Oklahoma | Adopted |
| Oregon | Adopted |
| Pennsylvania | Adopted |
| Rhode Island | Adopted |
| South Carolina | Not adopted |
| South Dakota | Adopted |
| Tennessee | Not adopted |
| Texas | Not adopted |
| Utah | Adopted |
| Vermont | Adopted |
| Virginia | Adopted |
| Washington | Adopted |
| Washington D.C. | Adopted |
| West Virginia | Adopted |
| Wisconsin | Not adopted |
| Wyoming | Not adopted |
Source: Kaiser Family Foundation
Use a healthcare navigator
If you aren’t furloughed or want to use something else than Medicaid, you can shop for your own health insurance. Even though navigating the health insurance system can be daunting, you can actually get a little advice in figuring out how to enroll by enlisting the help of a healthcare navigator.
A healthcare navigator helps you understand the healthcare system, including different types of insurance plans, benefits, and healthcare policies through the Affordable Care Act marketplace at HealthCare.gov. Typically, healthcare navigators are experienced healthcare experts who can help you understand different plans and which ones you could benefit from the most. Usually, their services are free for consumers. Once you are in the system as a patient, a navigator can also help you understand payments and billing.
Will I owe more on my taxes if I don’t have health insurance?
In years past, if you could afford health insurance but opted out of purchasing it, you may have paid a Shared Responsibility Payment when you filed your federal taxes. For the 2019 plan year and beyond, the Shared Responsibility Payment no longer applies at the federal level.
This is good news; however, each state has their own set of rules and some still have a health insurance mandate in place. The mandate could require you to have health insurance or pay a fee on your state taxes if you aren’t covered. These states have individual mandates:
California
District of Columbia
Massachusetts
New Jersey
Rhode Island
Vermont
Don’t overlook your financial health
If you’re dealing with an unexpected event like unemployment or lost medical insurance, you don’t have to go through it alone. The Freedom Debt Relief How to Manage Debt guide will walk you through your options on how to manage all types of debt, including medical debt. Start finding a solution by downloading the free guide right now.
Looking for debt relief in New Mexico or across the country? The first step is the most important one—learn more.
Insights into debt relief demographics
We looked at a sample of data from Freedom Debt Relief of people seeking debt relief during February 2026. The data provides insights about key characteristics of debt relief seekers.
Credit Card Usage by Age Group
No matter your age, navigating debt can be daunting. These insights into the credit profiles of debt relief seekers shed light on common financial struggles and paths to recovery.
Here's a snapshot of credit behaviors for February 2026 by age groups among debt relief seekers:
Middle 7 table
| Age group | Number of open credit cards | Average (total) Balance | Average monthly payment |
|---|---|---|---|
| 18-25 | 3 | $8,451 | $269 |
| 26-35 | 5 | $11,909 | $369 |
| 35-50 | 6 | $16,921 | $431 |
| 51-65 | 8 | $17,675 | $549 |
| Over 65 | 8 | $17,978 | $510 |
| All | 7 | $15,142 | $424 |
Whether you're starting your financial journey or planning for retirement, these insights can empower you to make informed decisions and work towards a more secure financial future
Collection accounts balances – average debt by selected states.
Collection debt is one example of consumers struggling to pay their bills. According to 2023, data from the Urban Institute, 26% of people had a debt in collection.
In February 2026, 30% of debt relief seekers had a collection balance. The average amount of open collection account debt was $3,203.
Here is a quick look at the top five states by average collection debt balance.
Collection accounts - top 5 states
| State | % with collection balance | Avg. collection balance |
|---|---|---|
| District of Columbia | 23 | $4,899 |
| Montana | 24 | $4,481 |
| Kansas | 32 | $4,468 |
| Nevada | 32 | $4,328 |
| Idaho | 27 | $4,305 |
The statistics are based on all debt relief seekers with a collection account balance over $0.
If you’re facing similar challenges, remember you’re not alone. Seeking help is a good first step to managing your debt.
Support for a Brighter Future
No matter your age, FICO score, or debt level, seeking debt relief can provide the support you need. Take control of your financial future by taking the first step today.
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Author Information
Written by
Justine Nelson
Justine Nelson is the founder of Debt Free Millennials, an online community to help millennials eliminate debt and live a debt free lifestyle. As a freelance writer and YouTuber, Justine enjoys creating upbeat and educational personal finance content. This Midwest millennial paid off $35k in student loan debt and now resides in San Diego with her husband.
Reviewed by
Lindsay Vansomeren
Lindsay is a writer for Freedom Debt Relief. She's passionate about helping people learn how to manage their money better so that they can live the life they want. She enjoys outdoor adventures, reading, and learning new languages and hobbies.
How long do I have to enroll in new health coverage after losing my job?
You generally have 60 days from the date you lose coverage to enroll in a new health plan through a Special Enrollment Period. Missing this window generally means waiting until the next open enrollment period, which typically runs from November 1 through January 15.
Is COBRA cheaper than a Marketplace plan?
COBRA is generally more expensive than a Marketplace plan, since you pay the full premium plus the administrative fee. Marketplace plans may qualify for subsidies that lower the monthly cost, so it’s worth comparing both options before you decide.
Can I get Medicaid right after losing my job?
You may apply for Medicaid immediately after losing your job if your income falls below your state’s eligibility threshold. Medicaid and CHIP enrollment isn’t limited to a specific enrollment period, so you can apply at any time.
What happens if I don’t sign up for new coverage in time?
Missing your Special Enrollment Period generally means waiting for the next open enrollment period to sign up for a Marketplace plan, unless you have another qualifying life event. A short-term plan may fill a temporary gap, though it typically won’t cover pre-existing conditions.
If medical bills pile up while you sort out new coverage, unsecured debt like credit card balances often piles up too. Learn how to get credit card debt relief so it doesn’t derail your progress.
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