Introduction
Job loss can be a stressful situation, and for many people, one of the largest worries is how to continue health insurance. Health insurance is vital for obtaining required medical care, paying for unexpected medical bills, and staying healthy overall. But being out of work or between jobs doesn’t necessarily mean you must forgo health insurance. There are a number of affordable choices available, from government programs to short-term health coverage.
This guide will give you step-by-step information on how to get affordable health coverage while you are out of work, and assist you in making the most informed choice for your circumstances.
1. Check If You Qualify for Medicaid
Medicaid is a government-funded health insurance program that offers free or low-cost health care coverage to low-income families and individuals. Because Medicaid eligibility is mostly determined by income, losing your job may qualify you for this program.
Advantages of Medicaid:
- Covers basic health care services like doctor visits, hospitalization, prescription medication, and preventive care.
- No or minimal out-of-pocket expenses.
- Available year-round with no specific enrollment period.
How to Apply for Medicaid:
- Visit HealthCare.gov or your state’s Medicaid website.
- Check the eligibility requirements based on your state’s income limits.
- Submit an application online, by phone, or in person.
Because Medicaid eligibility requirements differ from state to state, you should contact your state’s Medicaid office to see if you are eligible.
2. Look into COBRA Coverage
The Consolidated Omnibus Budget Reconciliation Act (COBRA) permits workers who lose their jobs to keep their employer-sponsored health coverage for a temporary time, typically up to 18 months.
Advantages of COBRA Coverage:
- Enables you to maintain the same health plan, your choice of doctors and network.
- Offers continuity of care, which is useful if you are receiving treatment or have chronic conditions.
Disadvantages of COBRA Coverage:
- Costly, as you have to pay the entire premium, including the part that your employer used to cover.
- Short term; coverage is temporary and usually ends after 18 months.
How to Sign up for COBRA:
- When you leave your work, your employer will send you a COBRA election notice within 45 days.
- You have 60 days to make a decision to enroll or not.
- Pay the full premium to maintain coverage.
If COBRA is out of your price range, you might consider alternatives like ACA marketplace plans or short-term insurance.
3. Search for Health Insurance Marketplace Plans (ACA Plans)
The Affordable Care Act (ACA) Marketplace, or Obamacare, features health insurance plans that can be more economical, particularly if you are eligible for subsidies or tax credits. Loss of a job makes you eligible for a Special Enrollment Period (SEP), so you can enroll beyond the standard open enrollment period.
Advantages of Marketplace Plans:
- Subsidies and tax credits can lower monthly premiums considerably.
- Covers mandatory health benefits, such as preventive services, visits to the doctor or hospital, maternity care, and medications.
- No pre-existing condition denial of coverage.
How to Apply for an ACA Plan:
- Go to HealthCare.gov and put in your state’s ZIP code.
- Compare plans and see if subsidies are available.
- Apply and select a plan that works within your budget and medical needs.
If you’re low-income, you may be eligible for premium tax credits lowering your monthly insurance premiums.
4. Investigate Short-Term Health Insurance
Short-term health insurance policies aim to offer temporary insurance coverage between jobs. They normally remain in effect for a few months up to one year and provide minimal benefits at a lower price than standard health insurance.
Advantages of Short-Term Health Insurance:
- Lower premiums than COBRA and marketplace plans.
- Offers protection for emergencies, hospitalization, and general medical requirements.
- Fast approval time, sometimes as quickly as within 24 hours.
Short-Term Health Insurance Downsides:
- Doesn’t include coverage of pre-existing medical conditions.
- More restricted benefits than with ACA-approved policies.
- Will not necessarily provide protection for such services as maternity treatment, mental care, or prevention care.
Short-term plans can be a decent choice if you are in good health and anticipate obtaining new employer-sponsored health insurance in the near future. Nonetheless, they shouldn’t be depended on for the long term healthcare requirements.
5. Join a Spouse’s or Parent’s Health Insurance Plan
If your spouse receives employer-sponsored health coverage, you might be able to get on their plan after losing your job. Most employers permit spouses to be enrolled in current health insurance plans following a qualifying life event, like losing your job.
How to Get Coverage Through a Spouse’s Plan:
- Your spouse should ask to add you during the special enrollment period, usually 30 days following your loss of employment.
- You might need to submit proof of loss of employment or loss of health coverage.
Likewise, if you are under 26 years old, you may be covered under a parent’s health insurance plan under the ACA, even if you are financially on your own or you live with them.
6. Look for Nonprofit and Community Health Programs
If you cannot pay for health insurance, numerous nonprofit organizations, community health centers, and religious organizations provide low-cost or free medical care.
Where to Obtain Free or Low-Cost Health Care Services:
- Federally Qualified Health Centers (FQHCs): Offer primary care, dental, mental health, and prescription aid.
- State and local health departments: Provide free or low-cost immunizations, STD testing, and preventive services.
- Nonprofit hospitals and clinics: Certain hospitals have financial assistance programs for the uninsured.
These resources can be used to fill basic healthcare expenses until you investigate long-term health insurance alternatives.
7. Look at Freelancer or Gig Worker Health Plans
If you are gig working, consulting, or freelancing while seeking a new full-time position, there are unique health insurance plans for the self-employed.
Where to Find Freelancer Health Insurance:
- Freelancers Union: Provides group health insurance for independent contractors.
- Trade Associations: Most industry-specific associations provide health coverage for members.
- Health Sharing Ministries: Religious programs where members share each other’s medical bills (not traditional insurance but can be an affordable alternative).
Gig workers and self-employed individuals can also be eligible for ACA marketplace subsidies based on their income.
8. Health Savings Accounts (HSAs) and Discount Programs
If you previously had a high-deductible health plan (HDHP) and lost your job, and you had money in a Health Savings Account (HSA), you can still use that money to pay for medical bills even when unemployed.
Advantages of HSAs:
- Money is still available even after quitting a job.
- May be spent on medical costs like doctor office visits, prescription medication, and dental work.
- Tax benefits: Contributions, withdrawals for medical purposes, and investment earnings are tax-free.
Even without an HSA, there are discount programs at some pharmacies, hospitals, and clinics for the uninsured. These discount programs can lower prices for prescriptions, lab work, and regular doctor visits.
9. Negotiate Medical Bills and Payment Plans
If you are not insured and require medical treatment, you can negotiate lower healthcare expenses with providers. Several hospitals and physicians provide discounts or payment plans to uninsured patients.
How to Negotiate Medical Bills:
- Ask for a cash-pay discount – Some providers have lower rates if you pay cash upfront.
- Establish a payment plan – Clinics and hospitals can accept payments in installments.
- Look for hospital charity programs – Nonprofit hospitals provide financial aid to patients who are not insured.
Even if you get insurance in the future, negotiating medical bills can assist you in controlling expenses in the short term.
10. Look into Telemedicine Services
Telemedicine is now a very popular and cost-effective means of receiving healthcare. Numerous online health services provide virtual doctor consultations at a small percentage of the price of office visits.
Advantages of Telemedicine:
- Less expensive than traditional office visits.
- Easy access from home.
- Ideal for minor conditions such as colds, infections, or mental health check-ups.
Some telehealth providers offer monthly subscription plans that allow unlimited virtual visits, making it a cost-effective option while you’re between jobs.
11. Explore Part-Time Jobs with Health Benefits
While searching for a full-time job, consider working part-time at a company that offers health insurance to part-time employees. Some companies provide affordable health benefits even for those working fewer than 40 hours per week.
Companies That Provide Health Insurance to Part-Time Workers:
- Starbucks – Provides health insurance to workers who work a minimum of 20 hours a week.
- UPS – Offers healthcare benefits for part-time employees.
- Costco – Provides extensive health plans for part-time workers.
- Trader Joe’s – Provides health benefits for part-time employees after some time.
This can be an excellent option to get inexpensive coverage while shifting to full-time work.
12. Use Prescription Discount Cards
Even without health insurance, you can reduce expenses on drugs through prescription discount programs. Most pharmacies and third parties provide free discount cards that can significantly reduce the cost of drugs.
Where to Find Prescription Discounts:
- GoodRx (GoodRx.com) – Offers coupons for national pharmacies.
- SingleCare – Prescribes discounts on uninsured prescriptions.
- Manufacturer Assistance Programs – Most pharmaceutical companies offer financial aid for brand-name drugs.
By comparing prescription prices at various pharmacies and taking advantage of discount programs, you can save a considerable amount on prescription costs.
