Workers who lose employer coverage have four coverage paths: COBRA continuation, an ACA Marketplace plan through a special enrollment period, Medicaid for income-eligible workers, or a short-term health plan for a brief gap. The 60-day SEP on HealthCare.gov starts the day employer coverage ends.
How to Get Health Insurance Between Jobs (2026 Guide)
Updated: April 9, 2026
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Key Takeaways
Health insurance between jobs is available through COBRA, the ACA Marketplace, Medicaid or a short-term plan.
Losing job-based coverage triggers a 60-day special enrollment period on HealthCare.gov.
COBRA lets you keep your employer plan but costs more than other options.
Marketplace subsidies can bring down the cost of a Silver plan for income-eligible workers in 2026.
What Are Your Options for Health Insurance Between Jobs?
Option | Coverage Start | Max Duration | Covers Pre-Existing Conditions | Best For |
|---|---|---|---|---|
COBRA | Retroactive to employer coverage end date | 18 months (standard job loss) | Yes (same plan as employer) | Workers mid-treatment or with specialist relationships |
ACA Marketplace (with subsidy) | First of next month after enrollment | Renews annually | Yes | Most workers under 400% FPL |
Medicaid | Same day to next day in most expansion states | No limit while income-eligible | Yes | Workers with income below 138% FPL |
Short-Term Plan | As fast as 24–48 hours after approval | Up to 3 months; some states allow up to 36 months | No (pre-existing conditions typically excluded) | Workers needing very short gap coverage only |
How Does COBRA Work When You Lose Your Job?
COBRA lets you stay on your employer's health plan for up to 18 months after job loss. You pay the full group premium plus a 2% administrative fee. Your existing doctors and provider network carry over automatically. You have 60 days from the later of your coverage loss or receipt of the election notice to enroll. Workers who find COBRA too costly have lower-cost alternatives.
DON'T MISS YOUR COBRA ELECTION DEADLINE
Your COBRA election window closes 60 days after the later of your coverage loss or your employer sending the notice. Miss it and you can't enroll until the next open enrollment period. COBRA coverage is retroactive once elected, so you can decide later if you need it.
Can You Get a Marketplace Plan After Losing Job Coverage?
Losing employer coverage opens a 60-day special enrollment period on HealthCare.gov. Plans with premium tax credits are frequently cheaper than COBRA for workers earning under $62,600 per year (400% FPL in 2026) due to enhanced subsidies extended through the Inflation Reduction Act. A few facts worth knowing before you enroll between jobs:
- The SEP starts the day employer coverage ends, not the day you apply.
- Silver plans with cost-sharing reductions require income between 100% and 250% FPL.
- Coverage starts the first of the month after you enroll.
- Pre-existing conditions are fully covered on all ACA-compliant plans.
Do You Qualify for Medicaid Between Jobs?
Medicaid covers workers whose income falls below 138% of the federal poverty level ($22,024 for a single adult in 2025) in the 41 states plus Washington, D.C. that have expanded Medicaid. There's no enrollment window: you can apply any time of year at HealthCare.gov, which routes your application to your state's Medicaid agency. Approval can be same-day in most expansion states.
Workers in non-expansion states have a coverage gap when income is too low for Marketplace subsidies (below 100% FPL) and too high for traditional Medicaid. In those states, a short-term plan or a Marketplace Bronze plan at the lowest available premium is often the only affordable option.
Is Short-Term Health Insurance Worth It Between Jobs?
Short-term health insurance is not ACA-compliant and doesn't cover pre-existing conditions, prescription drugs, or maternity care in most states. Plans can activate within 24 to 48 hours, making them an option only for workers who need coverage for a very short gap and have no ongoing health needs. Massachusetts, New Jersey, and New York prohibit medically underwritten short-term plans entirely. See the best short-term health insurance plans to understand what these plans do and don't cover.
Who It's For | Why It Works | Why It Doesn't |
|---|---|---|
Workers with no ongoing prescriptions or treatment who expect to be re-employed within 30 to 90 days | Activates within 24 to 48 hours and costs, far less than COBRA. | Does not cover pre-existing conditions, prescription drugs, or maternity care in most states |
Workers in non-Medicaid expansion states who earn too little for Marketplace subsidies | Provides basic accident and emergency coverage during a gap when no subsidized option exists | Not ACA-compliant, so a coverage gap may affect continuity of care when employer coverage resumes |
Workers who missed the 60-day SEP and can't enroll until open enrollment | Fills the gap until November 1 open enrollment at a lower monthly cost than going uninsured | Renewal is not guaranteed and insurers can decline coverage based on health status in 47 states |
Steps to Get Health Insurance Between Jobs
This process applies to anyone whose employer-sponsored health insurance has ended or will end within 60 days due to job loss, resignation or a reduction in hours. Your employer's HR department must confirm your coverage end date before you begin. Completing these steps gets you enrolled in coverage with no gap from your last active date of employer insurance.
- 1Confirm Your Coverage End Date and COBRA Election Notice
Your employer is required to send a COBRA election notice within 14 days of your plan administrator learning coverage has ended. This notice contains the full premium cost and your 60-day election deadline. You don't need to decide immediately. Electing COBRA retroactively covers the gap if you incur medical expenses before committing.
- 2Check Medicaid Eligibility Before Comparing Other Options
If your income after job loss falls below 138% FPL, apply at HealthCare.gov, which routes your application to your state Medicaid agency. Medicaid in expansion states has a $0 premium and activates faster than a Marketplace plan. Job loss is a qualifying life event for health insurance on both the Marketplace SEP and Medicaid.
- 3Estimate Your Marketplace Subsidy on HealthCare.gov
Use the HealthCare.gov eligibility screener with your projected annual income for the year. Workers earning between 100% and 400% FPL (approximately $15,650 to $62,600 for a single adult in 2026) qualify for premium tax credits. A subsidized Silver plan often costs less per month than COBRA for most workers in this income range. See the average cost of health insurance to understand what Silver plans cost.
- 4Compare Your COBRA Cost Against the Best Marketplace Plan
Pull your COBRA election notice premium and your HealthCare.gov plan estimate side by side. Workers mid-treatment should verify their existing specialists are in-network on any Marketplace plan before enrolling. Workers with no active treatment almost always save money on a subsidized Marketplace plan compared to COBRA's full group premium.
- 5Enroll Before Your 60-Day Window Closes
Your Marketplace SEP starts the day you lose job-based coverage and closes 60 days later. Missing this window means waiting until open enrollment (November 1 to January 15 on HealthCare.gov) unless another qualifying event occurs. Learn how to get health insurance after open enrollment closes if you miss your SEP window.
- 6Confirm Your First Premium Payment and Coverage Start Date
Marketplace coverage starts the first of the month after you enroll. COBRA coverage is retroactive to your employer coverage end date once your first premium clears. Keep your COBRA election notice and Marketplace confirmation until your first explanation of benefits shows active coverage.
Common Mistakes When Getting Health Insurance Between Jobs
The three risks that most often leave workers uninsured between jobs are missing the 60-day enrollment deadline, assuming COBRA is automatic and choosing a short-term plan without checking for pre-existing condition exclusions.
Missing the 60-Day Special Enrollment Deadline
The 60-day SEP for job loss doesn't extend automatically. If you don't enroll in a Marketplace plan or elect COBRA within 60 days of your employer coverage end date, you lose the right to enroll until November 1. Set a calendar reminder for day 45 after your coverage ends to leave time for comparison and paperwork.
Assuming COBRA Enrollment Is Automatic
Electing COBRA and being enrolled in COBRA are two different things. You must complete the election form and submit your first premium payment before coverage activates. Retroactive coverage only applies once that payment clears. Workers who assume their employer handles enrollment often discover the error only after a medical bill arrives from the gap period.
Choosing a Short-Term Plan Without Reading the Exclusions
Short-term health insurance plans don't cover pre-existing conditions, prescription drugs, or maternity care in most states. They're also not ACA-compliant. A worker with an ongoing condition who enrolls in a short-term plan expecting full coverage may pay the entire cost of treatment out of pocket. Always read the exclusions list before purchasing.
Picking a Marketplace Plan Without Confirming Your Doctors Are In-Network
Marketplace plans use separate provider networks from most employer plans. If you're actively seeing a specialist or receiving ongoing treatment, confirm that provider accepts the specific Marketplace plan before enrolling. Out-of-network care on a Marketplace plan isn't covered the same way it may have been under your employer's coverage.
Getting Covered Between Jobs: Bottom Line
Going uninsured between jobs isn't your only option. Losing employer coverage opens a 60-day special enrollment window on HealthCare.gov, and a subsidized Marketplace Silver plan costs the average worker far less than COBRA's $746 monthly average. If your income drops below 138% FPL, Medicaid activates with no premium. Act within 60 days and you'll have no coverage gap.
Health Insurance Between Jobs: FAQ
We've answered the most frequently asked questions about health insurance between jobs, covering costs, deadlines and what to do if you miss your enrollment window:
How long do I have to get health insurance after leaving a job?
Losing employer coverage starts a 60-day special enrollment period on HealthCare.gov. You can also elect COBRA within 60 days of receiving your election notice. Missing both windows means waiting for open enrollment, which runs November 1 to January 15 on the federal Marketplace.
Is COBRA always more expensive than a Marketplace plan?
COBRA costs the full group premium without employer contributions. Workers earning under $62,600 per year often find a subsidized Marketplace Silver plan cheaper. The comparison depends on income, the specific employer plan, and premium tax credit eligibility.
Can I get health insurance between jobs if I become self-employed?
Workers who become self-employed after leaving a job qualify for the same 60-day Marketplace SEP triggered by loss of employer coverage. Self-employed income counts toward premium tax credit calculations. See the best health insurance for self-employed workers to understand what self-employed workers can access on the Marketplace.
What happens if I can't afford any coverage between jobs?
Workers with income below 138% FPL in Medicaid expansion states qualify for $0 premium Medicaid with no enrollment deadline. Above that threshold, a subsidized Bronze Marketplace plan may cost under $50 per month. Short-term plans offer a lower-cost stopgap but don't cover pre-existing conditions or ACA essential health benefits.
Does the type of coverage I get between jobs affect my next employer's plan?
ACA-compliant plans, including Marketplace, COBRA and Medicaid, can't affect a future employer plan's premium or eligibility. Employers are prohibited from using prior coverage history to set rates on group plans. Short-term plans are not ACA-compliant, which can create continuity of care issues.
Can I switch from COBRA to a Marketplace plan mid-year?
COBRA enrollees can switch to a Marketplace plan during open enrollment each year (November 1 to January 15). Voluntarily dropping COBRA outside open enrollment doesn't trigger a SEP. Starting a new job with employer coverage creates a Marketplace SEP when that new employer plan activates.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.