Best Health Insurance Options When Unemployed (2024)

If you’re unemployed and uninsured, you have health insurance options. Medicaid is a government health insurance program for those with low income. Eligibility requirements vary by state, but if you qualify, you’ll have access to comprehensive health insurance at little or no cost.

If you don’t qualify for Medicaid, you may find affordable options on the Marketplace. Government subsidies may help make Marketplace health insurance plans more affordable.

Using a proprietary scoring system evaluating claim acceptance, coverage, cost, and plan type, MoneyGeek ranked the top national health insurance companies for the unemployed. In our analysis, we found that Ambetter is the best health insurer for unemployed individuals on the Marketplace. Oscar is the best provider offering the lowest premiums for those looking for a Catastrophic plan.

Ambetter is the best overall health insurance provider for unemployed individuals, earning a score of 73 out of 100.

MoneyGeek’s analysis ranked several providers and plans based on costs (premiums and MOOP), plan type availability and presence in at least six states. We only included providers with low-income plans to find the best options with cost-sharing reductions (CSRs). To determine the best overall, we only included providers with low-income options CSRs that provide more coverage than other Silver plans at a discount.

In the Bronze metal tier, our analysis found that Ambetter is ranked as the best low-premium health insurance provider, scoring 67 out of 100.

The Bronze metal tier is one of the lower-costing plans across the U.S. next to Catastrophic, which comes with limitations for qualifying. However, while Bronze plans are more affordable, they come with higher out-of-pocket limits, which may not benefit those who frequently need health care.

Oscar is the best catastrophic plan provider, earning a score of 86 out of 100, with a MOOP of $9,100 and an average rate of $236 per year. The next two are Medica and Blue Cross Blue Shield, with MOOPs that also average $9,100, but their rates differ at $265 and $276 per year, respectively.

Catastrophic plans are low cost, but they are not available in every state, and you must be under 30 to qualify for one. Older individuals may qualify if there is no other qualified plan on the Marketplace that costs less than 8.17% of their income.

Given the requirements, MoneyGeek’s sample consumer for catastrophic plans is age 26.

You may not need to go without health insurance when you're unemployed. You have options, like private health insurance and government-backed health insurance. Those under 26 can get coverage through a parent's health insurance provider. If you have a spouse with health care, they can add you to their plan.

The cost of Marketplace health insurance depends on what type of plan you buy and how much coverage it offers, which health insurance company you choose and whether you qualify for subsidies.

Marketplace insurance options typically fall into four metal tiers: Bronze, Silver, Gold and Platinum. Some states also have Catastrophic and Expanded Bronze plans. The less valuable the metal, like Bronze, the less the insurer covers and the less you’ll pay in monthly premiums. However, these plans typically include high deductibles and out-of-pocket costs.

Average costs don’t count the tax credits you might be able to get. People with lower incomes, such as unemployed people, are likely to qualify for subsidies that may dramatically reduce these costs. You could save hundreds of dollars on monthly premiums if you are eligible for subsidies and choose a Silver plan.

The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers who lose or leave their jobs the option to stay on their employer’s health insurance for up to 18 months or longer in some circumstances. You must apply within 60 days of losing coverage or being notified you’re eligible, whichever is later.

COBRA lets you keep your coverage, but it can be costly. You pay the full price of coverage instead of sharing costs with your employer. However, since the COVID pandemic, you might be eligible for help paying for COBRA thanks to the Inflation Reduction Act, which confirms the American Rescue Plan’s subsidies are available through 2025.

If you’re unemployed, you may qualify for Medicaid, depending on where you live. Forty states and Washington, D.C., expanded Medicaid under the Affordable Care Act. In those places, you can qualify for Medicaid based on your income alone if you earn 138% or less of the federal poverty level — or $18,754 per year for an individual (or $38,295 for a family of four). The more people in your household, the higher the income cutoff.

In the 11 states that have opted not to expand Medicaid, your income won’t be enough on its own to qualify. You’ll need to meet other requirements, such as being a caregiver for a dependent child.

• Alabama
• Florida
• Georgia
• Kansas
• Mississippi
• North Carolina
• South Carolina
• Tennessee
• Texas
• Wisconsin

When you apply for coverage through HealthCare.gov, the government will see if you’re eligible for Medicaid in your state and if any children in your household qualify for the Children’s Health Insurance Program (CHIP). CHIP is for families that earn too much to be eligible for Medicaid but still may not be able to afford private health insurance.

Medicare is health insurance for older Americans and some younger people with disabilities. Virtually everyone 65 and older qualifies for Medicare.

The core of Medicare, sometimes called “Original Medicare,” covers hospital stays (through Part A) and doctor or other outpatient visits (through Part B). This coverage isn’t free, but the costs are pretty reasonable. Part A has no premium for most people and a deductible of $1,600 in 2023. You also pay a share of the costs for longer stays. For Part B, monthly premiums are $164.90 for most people, and the deductible is $226 in 2023.

Some people buy supplemental coverage to help pay for costs that Original Medicare doesn’t cover. Prescription drug plans, or Part D, are offered by private companies to offset the cost of medications. Medigap plans are another type of supplemental coverage, with several different plan types that cover different things. Also offered by private companies, Medigap plans have the same benefit structure but different costs and extra benefits, depending on the company.

For people who prefer comprehensive benefits organized into one plan, there’s Medicare Advantage, also known as Part C. These plans combine all the Medicare benefits from Original Medicare plus supplemental coverage and extra benefits.

If you have a spouse with job-based health insurance, you may be able to join their policy. Adding you to their plan may increase their health insurance costs, but this still may be a cost-effective way to get robust health insurance.

People under age 26 can also stay on or join their parent's health insurance plan thanks to the ACA. It may add costs for your parents, but getting good coverage for you may be worth it.

The search for affordable health insurance may leave you with questions. MoneyGeek has answered a few commonly asked questions about finding low-cost options.