Losing your job can be a grueling experience. On top of that, losing your job means you lose access to your employer’s health insurance, as well. Some employers may extend your health insurance benefits until the end of the month, but it’s not a good idea to depend on that. According to the Kaiser Family Foundation, over 156 million Americans, or about 49% of the country’s total population, have employer-sponsored health insurance. But don’t despair! You can still get health insurance without a job because you’ll be able to qualify for individual or family plans. These plans offer the same coverage options as employer-sponsored plans. If you’ve lost your job, read on to find out what health insurance options are available to you.
Health insurance options for the unemployed
You can still get health insurance if you’re unemployed. Here are some options you should consider:
1. COBRA
COBRA is a law passed by Congress in 1985 that gives Americans the ability to continue their health insurance coverage after becoming unemployed for a limited time. You may qualify for COBRA if you’ve lost your job, had your work hours reduced, and separated or divorced from a covered employee.
Benefits of COBRA:
- Provides health coverage from your previous employer for up to 36 months
- Provides coverage for job loss and reduced hours at the job
Keep in mind that with COBRA, you’ll have to pay the full premium, as opposed to having your employer split it with you. You’ll have 60 days from the time you lost your job to decide whether you want to opt into COBRA. This is a good option to consider if you don’t expect to need your previous health insurance coverage for long.
2. Affordable Care Act (ACA)
These plans, known as Obamacare plans, can’t charge more or refuse you if you have a pre-existing condition. These plans must cover:
- Outpatient and inpatient care
- Preventative visits
- Prescription drugs
- Pediatric services
- Rehab services
- Lab services
- ER visits
- Child care before and after the child is born
ACA plans are also based on your income, so you can usually qualify for discounts on your premiums if you have little or no income. If you want to buy an ACA plan, speak to a health insurance broker or visit your designated Marketplace website. You can find it at: https://www.healthcare.gov/marketplace-in-your-state/. In most states, the enrollment window is open from November 1 to January 15, but sometimes you can qualify for a 60-day special enrollment period.
3. Medicare
Government health care plans can be complicated, so make sure you understand what you’re signing up for before purchasing a plan. However, consider using government health insurance programs if you don’t have a job. If you’re over 65 or have a disability, you may qualify for Medicare. About 80% of beneficiaries’ health care bills are paid by Medicare. Another option to think about when opting for Medicare is buying all-in-one Medicare Advantage plans. While the federal government regulates these plans, private insurance companies sell them.
4. Medicaid
Medicaid depends mostly on your income, so if you have none, you can qualify for free, or low-cost health insurance coverage. A handful of states provide Medicaid programs to individuals that make below a certain income. Some advantages of Medicaid include its low cost, coverage for doctor visits, prescriptions and hospital stays, and health insurance options for children.
5. Individual Private Health Insurance
To get individual private health insurance, you need to buy a plan from a private insurance company. These plans don’t have a specific enrollment period, so you can buy them at any point. Keep in mind that private health insurance plans don’t have the same requirements as ACA plans, so some coverage might be lacking. If you’re unemployed, you might be eligible for premium tax credits and savings on copayments, deductibles, and other costs.
Here’s a list of some of the best individual private health insurance plans for the unemployed available on the market right now:
- BlueCross BlueShield – Best for catastrophic events
- Cigna – Best for telehealth
- IHC Group – Best for short-term coverage
- Oscar – Best for families
- UnitedHealthcare – Best provider network
6. Short-term health insurance
This option isn’t available in all states. But if you don’t expect to be unemployed for long, short-term health insurance may be a great option because plans are usually much cheaper than the alternatives. Some disadvantages of short-term health insurance are:
- Coverage limitations
- Dollar caps on total coverage
- Claims can result in the policy’s cancellation
7. High-deductible health insurance plans
If you’re unemployed but have a good amount of savings, a high-deductible health insurance plan might be a good option for you to consider. It’s also a pretty good option for those who don’t foresee developing a chronic condition. If you need medical care, you’ll have to pay a large amount out-of-pocket, but you can qualify for tax benefits if your deductible is more than $1,400. You can buy these plans as private health insurance or through the Affordable Care Act.
8. Health insurance discount cards
These aren’t insurance plans, but they’re worth exploring. By using health insurance discount cards, you’ll get a lowered rate on medical care costs for a small monthly fee.
9. Group Insurance through organizations
If you’re a military veteran or have been part of collegiate organizations like fraternities and sororities, you may have more insurance options. You won’t get any help paying for your premiums by choosing this option, but you can get lowered plan rates through group discounts.
10. Join your spouse’s health insurance plan
You may join your spouse’s health insurance plan as a dependant if your spouse is still employed. Beware that the premium is very likely to increase if you’re added to the coverage.
Frequently asked questions
How much will I have to pay for health insurance if I’m unemployed?
You can qualify for low-cost, or even free coverage if you don’t have an income because healthcare costs depend on your income level.
If I have healthcare but am unemployed, do I still need to file a tax return?
If you don’t pay the full price for your coverage, yes. The IRS will send you Form 1094-A if you pay for healthcare with premium tax credits.