Best Health Insurance Options for the Unemployed

If you’re unemployed and uninsured, you still have options. Specifically, Medicaid is the government health insurance program designed for low-income people. 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 or another type of insurance, you can still find affordable options on the Marketplace. Government subsidies help make these private health insurance plans more affordable.

In MoneyGeek’s analysis, we identified Kaiser Permanente as the best health insurer for unemployed people available on the Marketplace. For people looking for Catastrophic coverage, we picked Anthem because it has the lowest premiums and above-average quality.

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

If you lose your job and benefits, you can sign up for health insurance on the Marketplace created by the Affordable Care Act (ACA), also known as Obamacare, even if it’s outside the annual open enrollment period. A change in your health insurance status, such as a job loss or other life change, is considered a qualifying event, which creates a special enrollment period for you.

Marketplace plans may cost more than typical employer-sponsored insurance, but many people qualify for subsidies in the form of premium tax credits and cost-sharing reductions. These subsidies can make Marketplace insurance more affordable than job-based insurance.

The ACA requires Marketplace plans to cover 10 essential health benefits, which short-term health insurance — sometimes called skinny plans — do not have to cover. Sometimes, because skinny plans cover so little, they wind up costing you more if you use health care services.

The cost of Marketplace health insurance depends on several factors: 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 tax credits you might be able to get. People with lower incomes, such as people who are unemployed, 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.

If you don't have a job with benefits and don’t qualify for government-run insurance, Marketplace plans are among the best options for coverage.

The national average monthly premium of a Silver plan, the most common type of plan, is $503 for a 40-year-old. Many people pay significantly lower premiums thanks to subsidies included in the ACA and expanded in the American Rescue Plan Act of 2021.

MoneyGeek's selection for the best health insurance provider for Silver plans is Kaiser Permanente, the California-based managed care company that also operates health care facilities.

If you’re unemployed but can pay a bit more each month, you can opt for a Gold plan, which covers more of your total health care costs and offers more protection. They cost more in premiums each month but have lower deductibles and out-of-pocket maximums, so you pay less as you use services. These plans make sense if you have significant health care needs and if you can afford the higher monthly tab.

MoneyGeek’s pick for the best Gold plan provider on the Marketplace is Kaiser Permanente, whose average monthly premiums for Gold plans is $463.96. In contrast, the company’s average Silver premium is $427.47 per month.

If budget is your biggest worry, consider a Catastrophic plan. Catastrophic plans are only available in certain states for people under 30 or those who qualify for affordability exemptions.

Catastrophic coverage is designed to protect you from worst-case scenarios, like a serious diagnosis or terrible accident. They have lower monthly premiums but very high deductibles. Catastrophic plans sold on the Marketplace must include the 10 essential health benefits and cover preventive care, but you’ll pay for almost everything else yourself.

Before you buy a Catastrophic plan, see which subsidies you qualify for. You might pay less and get more coverage with a Silver plan and cost-sharing reductions.

There are fewer Catastrophic plan options because it’s a less common plan type. MoneyGeek’s top choice is Blue Cross Blue Shield, but Anthem is another option, with the lowest premiums and the third overall ranking for quality.

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 even 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.

If you lost your job and insurance due to the COVID-19 pandemic, you might be eligible for help paying for COBRA between April 1 and September 30, 2021, due to the American Rescue Plan.

If you’re unemployed, you may qualify for Medicaid depending on where you live. Thirty-eight 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 $17,774 per year for an individual. The more people in your household, the higher the income cutoff.

In the 12 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
• South Dakota
• 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 costs are pretty reasonable. Part A has no premium for most people and a deductible of $1,556 in 2022. You also pay a share of costs for longer stays. For Part B, monthly premiums are $170 for most people, and the deductible is $233 in 2022, after which 20% coinsurance applies for Medicare-approved charges.

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 will increase their health insurance costs, but this still may be a cost-effective way to get robust health insurance.

Thanks to the ACA, people under age 26 can also stay on or join their parents' private health insurance plan, thanks to the ACA. It will add costs for your parents, but it may be well worth it to get good coverage for you.