You can get insurance without an employer. Find out about health insurance resources you can use.
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Without an employer helping foot the bill, getting health insurance can be costly. But there are resources available to help you find the best plan for your coverage needs and budget. Learn what you need to know about getting health insurance if you’re unemployed.
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“Health insurance can be confusing if you don’t get it through your job,” says Michael D. Miller, MD, health care and life sciences expert at HealthPolCom, but there are resources available to help you.
Dr. Miller recommends starting at your local library or using your state’s Health Insurance Marketplace.
“Some social services organizations in your community may also provide assistance or navigation-type of services to people looking for insurance,” Dr. Miller adds. “The best way to find out is to call around and ask since they may have people who do that, but it might not be listed on the organization’s website.”
Healthcare.gov provides information on health coverage options if you’re unemployed. You can get health insurance through the marketplace, which provides cost savings based on your income and household size, not your employment status. You may qualify for a subsidized plan, Medicaid, or CHIP, depending on your household income.
Coverage purchased through the Marketplace can begin the first day of the month after losing your previous health insurance coverage.
If you’ve lost job-based health insurance, you have two primary options to get health insurance coverage: buy a health insurance plan through the Health Insurance Marketplace or sign up for COBRA coverage.
To buy a marketplace plan, start by filling out an application at Healthcare.gov. The application will use your income to determine if you qualify for any savings on the monthly premiums or out-of-pocket costs. If your income is low enough, you may be eligible for Medicaid or CHIP, which provides free or low-cost health insurance.
Medicaid and CHIP are available based on income to families, pregnant women, people with disabilities, and elderly individuals. Some states have expanded programs that offer coverage to all residents beneath a certain income level. You can find out if you qualify by answering a few quick questions about your household size, state of residence, and income at Healthcare.gov. Answering qualifying questions is not the same as applying. To apply, you’ll need to create an account at Heatlhcare.gov or apply through your state’s Medicaid agency.
Even if you don’t qualify for Medicaid or CHIP, it’s worth applying because you may qualify for lower-cost coverage through your state’s program. You can apply for Medicaid or a Marketplace plan any time of year.
Note that your state may have a different name for its Medicaid and CHIP programs. You can determine what the programs are called in your state here.
Another health insurance option if you have recently lost employer health coverage is Continuation of Health Coverage, commonly known as COBRA. Under COBRA, you can extend workplace health benefits for a limited time. COBRA usually lasts up to 18 or 36 months, depending on your circumstances, Dr. Miller says.
The upside to COBRA is that you get the same coverage you had with your employer, so you can continue using the same doctors and hospitals you went to while employed. The downside is you may be required to pay the full premium or up to 102% of the plan’s cost.
“This may make sense if someone has already incurred a lot of health care expenses in the year and run into their annual “out-of-pocket” (OOP) maximum since if they start a new insurance plan mid-year, they would have restart paying a deductible and would have no costs that would count toward the new OOP amount,” Dr. Miller says.
You’ll generally need to have been insured with an employer who had 20 or more employees to be eligible for COBRA.
Within the marketplace, you can choose different types of health insurance plans designated as bronze, silver, gold, and platinum based on the level of coverage:
You may have access to “catastrophic” plans with low monthly premiums, but very high deductibles and are designed to protect you from worst-case scenarios.
To learn how to calculate your total costs of care and help choose between plan types, visit Healthcare.gov.
You will also need to choose between exclusive provider organization (EPO) plans, health maintenance organization (HMO) plans, point of service (POS) plans, and preferred provider organization (PPO) plans within the metal categories. Depending on your location, you may have access to plans of each type within each metal category or only a few. Here is an overview of these plan types:
The Centers for Medicare & Medicaid Services (CMS) provides a PDF with more details on these plan types to help you choose the best plan for you.
You can get help with insurance costs when you’re unemployed. “People with low or moderate incomes can get reduced premiums and other financial support for their health insurance through their state’s marketplace,” Dr. Miller says.
The American Rescue Act of 2021 has expanded the financial assistance available to people who have lost their jobs. More people qualify for health insurance tax credits, and those who are already qualified may receive even more assistance. Three out of five eligible unemployed individuals on average qualify for $0 health insurance plans under the expanded benefits, while four out of five will get coverage for $10 or less per month.
Suppose you received unemployment income at any point during 2021. In that case, CMS encourages you to complete an application or update your information at Healthcare.gov by August 15, 2021, to see if you qualify for increased savings.
“The most affordable health insurance is the one where you get the most financial assistance, but even if premiums are reduced, there may be deductibles and copayments that will add costs if you get sick or injured,” Dr. Miller says. In general, the most affordable health insurance for the unemployed is through your state’s health insurance marketplace or, if your income is low enough, through Medicaid or CHIP.
“When choosing insurance, it is important to not just look at the monthly premiums because there are insurance options that operate outside of the federal rules created under the Affordable Care Act (ACA), and many of those options don’t cover things like prescription drugs, maternity care, or mental health or substance abuse treatments,” Dr. Miller says.
You can preview your health insurance plan options and estimated prices at Healthcare.gov’s See Plans and Prices page.
Tammy Burns is an experienced health insurance advisor. She earned her nursing degree in 1990 from Jacksonville State University, obtained her insurance billing and coding certification in 1995, and holds a health and life insurance license in Alabama, Georgia, Iowa, Mississippi, and Tennessee. Burns is Affordable Care Act (ACA)-certified for health insurance and other ancillary, life, and annuity products. She maintains an active nursing license and practices private-duty nursing.
Burns’ background as a nurse, insurance biller and coder, and insurance consultant includes infectious disease, oncology, gynecology, phlebotomy, post operative, family medicine, geriatrics, home health, hospice, human resources, management, billing, coding, claims, fixed annuities, group and individual health and life products, and Medicare. She’s always been driven by a desire to help people, spending more than 25 years as a practicing nurse in hospitals, private doctors’ offices, home health, and hospice. As a nurse, Burns supported patients filing insurance claims with Medicare, Medicaid, and private insurance companies as well as responding to billing questions from confused patients.
Seeing firsthand how unsuspecting patients are frequently confused by an overly complex system they don’t understand led Burns to become an insurance agent and health care consultant, now helping people understand the medical system. Since becoming an insurance agent in 2013, she has worked with some of the largest and most reputable insurance carriers and agencies in the nation, and she has built a large and loyal clientele by way of her commitment to transparency and personalized service.
For more information on health insurance when you’re unemployed, visit these free resources: