Navigating Medical Insurance: Tips For The Unemployed

If you are unemployed, you may not have access to an affordable employer-sponsored plan. This can make it tough to find the right coverage. However, there are many ways to get health insurance as an unemployed person. While you lose employer-sponsored health insurance coverage, you can access insurance through COBRA, the Health Insurance Marketplace, Medicaid, and even a few other options. However, where and how to get health insurance depends on a number of factors, which we’ll cover below.

COBRA - keep coverage for up to 18 months

If you are unemployed, you may be able to keep your health insurance coverage for up to 18 months thanks to COBRA. COBRA is a federal law that allows you to keep your health insurance coverage for up to 18 months if you lose your job. This is a great option for those who want to keep their health insurance coverage, but may not have the financial means to do so.

The first step is to notify your employer that you have lost your job. Your employer will then notify the COBRA administrator, who will send you a notice of your rights and coverage options. You will have 60 days to decide whether or not to keep your health insurance coverage.

If you decide to keep your health insurance coverage, you will need to pay for it. COBRA coverage can be expensive, so it's important to consider your financial situation before making a decision. If you can't afford COBRA coverage for the full 18 months, you may need to move to a lower-cost marketplace policy within 60 days of losing your job.

It's also important to note that you may be able to get health insurance through other means as well. You can access insurance through the Health Insurance Marketplace, Medicaid, and even private insurers. The marketplace, which the federal government runs, can help you compare plans and choose the right one based on the cost, benefits, and coverage. Many states have their own insurance marketplaces, too. Your income and household size may qualify you for savings through premium tax credits that reduce your monthly payments, or cost-sharing reductions that lower your out-of-pocket costs for care. You'll have to fill out an application to determine your eligibility for any cost savings.

Health Insurance Marketplace - affordable, federally-sponsored

If you are unemployed, you may get health insurance under the Health Insurance Marketplace, a federally-sponsored affordable health insurance program. The marketplace, which the federal government runs, can help you compare plans and choose the right one based on the cost, benefits, and coverage.

Many states have their own insurance marketplaces, too. Your income and household size may qualify you for savings through premium tax credits that reduce your monthly payments, or cost-sharing reductions that lower your out-of-pocket costs for care. You'll have to fill out an application to determine your eligibility for any cost savings. Keep in mind that being unemployed doesn't guarantee you any discounts.

Avoid the temptation of going with the lowest monthly premium. Check out all the costs of the plans, including benefits, health insurance options, subsidies, co-pays, deductibles, and the total amount you’d have to pay if you rack up high medical bills. In the current economy, about one-third of jobless workers remain unemployed for more than six months, according to the Bureau of Labor Statistics. If you know you can’t afford COBRA coverage that long, you may need to move to a lower-cost marketplace policy within 60 days of losing your job. There are open enrollment windows for the marketplace policies.

Since you have 60 days to decide, you don’t have to say yes or no to COBRA right away. You can ask HR for a list of all the health insurance plans your company offers. If your former employer offers a lower-cost policy, you may be able to switch into it if you end up unemployed for more than 60 days. Also ask if your employer-provided coverage will go through the end of the month. If it does, get your prescriptions refilled and doctor visits in before you lose coverage. During the 60-day COBRA window, check out your other coverage options, starting with the Health Insurance Marketplace.

Health insurance is important because it can help lower health care costs for individuals. Medical spending in the U.S. reached $4.5 trillion in 2022, which translates to an average of $13,493 per person. If you're unemployed, you may not have access to an affordable employer-sponsored plan. This can make it tough to find the right coverage. Unemployed individuals can get health insurance through state or federal health insurance marketplaces or private insurers. Many people qualify for subsidies to help buy marketplace plans.

Medicaid - income-based government plan

If you are unemployed, you can get medical insurance through Medicaid, which is an income-based government plan. Medicaid is a federally funded program that provides health coverage for low-income individuals and families. To be eligible for Medicaid, you must meet certain income and resource requirements. These requirements vary by state, so it's important to check with your state's Medicaid office to see if you qualify.

One of the benefits of Medicaid is that it can provide comprehensive coverage for a wide range of medical services, including doctor visits, hospital stays, emergency room visits, and prescription drugs. Additionally, Medicaid can help you save money on your healthcare costs, as it often has lower premiums and out-of-pocket costs compared to private insurance plans.

To apply for Medicaid, you will need to fill out an application and provide documentation to verify your income and eligibility. You can apply for Medicaid through your state's Medicaid office or online through the Health Insurance Marketplace. The Marketplace is a federally run platform that allows you to compare different health insurance plans and choose the one that best fits your needs and budget.

It's worth noting that Medicaid has income limits, and not everyone who is unemployed will qualify. However, if you meet the income requirements, Medicaid can be a great option for getting affordable and comprehensive healthcare coverage. Additionally, if you are employed but have a low income, you may also qualify for Medicaid, as long as your income falls within the specified limits.

Obamacare - income-based government plan

If you are unemployed, you can access insurance through COBRA, the Health Insurance Marketplace, Medicaid, and even a few other options. Obamacare is one of the income-based government plans that you can access.

Obamacare is a federally sponsored affordable health insurance program that can help you compare plans and choose the right one based on the cost, benefits, and coverage. Your income and household size may qualify you for savings through premium tax credits that reduce your monthly payments, or cost-sharing reductions that lower your out-of-pocket costs for care. You'll have to fill out an application to determine your eligibility for any cost savings.

Many people qualify for subsidies to help buy marketplace plans. Avoid the temptation of going with the lowest monthly premium. Check out all the costs of the plans, including benefits, health insurance options, subsidies, co-pays, deductibles, and the total amount you’d have to pay if you rack up high medical bills.

If you know you can’t afford COBRA coverage that long, you may need to move to a lower-cost marketplace policy within 60 days of losing your job. There are open enrollment windows for the marketplace policies.

Since you have 60 days to decide, you don’t have to say yes or no to COBRA right away. You can ask HR for a list of all the health insurance plans your company offers. If your former employer offers a lower-cost policy, you may be able to switch into it if you end up unemployed for more than 60 days.

Private Insurers - compare plans and choose the right one

If you are unemployed, you can access insurance through COBRA, the Health Insurance Marketplace, Medicaid, and even a few other options. However, it is important to note that being unemployed does not guarantee you any discounts.

COBRA is a federal law that allows you to keep the health insurance coverage you got from your employer for up to 18 months after you lose your job. However, you may have to pay for it and it is expensive.

The Health Insurance Marketplace is a federally sponsored affordable health insurance program that can help you compare plans and choose the right one based on the cost, benefits, and coverage. You can also qualify for subsidies to help buy marketplace plans.

If you know you can’t afford COBRA coverage that long, you may need to move to a lower-cost marketplace policy within 60 days of losing your job. There are open enrollment windows for the marketplace policies.

Avoid the temptation of going with the lowest monthly premium. Check out all the costs of the plans, including benefits, health insurance options, subsidies, co-pays, deductibles, and the total amount you’d have to pay if you rack up high medical bills.

Frequently asked questions