Health Insurance Between Jobs: COBRA, Marketplace and Temporary Coverage

Leaving a job can leave a gap between two health plans. Even a short gap matters if you need an emergency visit, a prescription or ongoing treatment. Start by finding the date your current coverage ends and the date your next plan begins.

Use the Health Plan Price Estimator to compare estimated monthly prices, deductibles, copays and service limits by state, age and household group. The result is a planning estimate, not a quote or verification of policy benefits. An estimate is a budgeting tool, not proof that a policy covers your care.

How much does COBRA cost?

COBRA generally lets eligible workers and family members continue the employer's group coverage after a qualifying event. You may pay the full premium, including the share your employer previously paid, plus an administrative charge of up to 2%.

For example, if the full monthly premium is $800, a 102% charge is $816. For a $2,000 family premium, it is $2,040. These are invented examples, not national averages or quotes. Ask the benefits administrator for your exact amount and payment deadlines.

The plan may be familiar, but the price can be very different from your old paycheck deduction. If you already met part of this year's deductible, continuing the same plan may preserve that progress. Check how plan-year changes affect your benefits.

Deadlines to write down

Federal COBRA generally applies to group plans maintained by employers with at least 20 employees, with exceptions. State continuation rules may cover some smaller employers. Eligibility depends on the plan, the qualifying event and whether the employer continues offering coverage.

For job loss or reduced hours, continuation commonly lasts up to 18 months. Voluntary job loss can qualify; termination for gross misconduct is an exception.

You generally have at least 60 days to elect COBRA, measured from the later of losing coverage or receiving the election notice. The first payment is generally due within 45 days after election. Proper election and payment can make coverage retroactive to the loss date. Later premium deadlines still matter. CMS explains COBRA continuation coverage.

Compare your other options

Loss of qualifying job-based coverage generally opens a Marketplace special enrollment period. You can usually apply in the 60 days before or after the loss. Losing a job without losing coverage is different. Assistance depends on your expected annual household income and other eligibility rules, not just your current paycheck. Report changes to your Marketplace application. HealthCare.gov explains Marketplace and COBRA choices.

Ask a spouse's benefits office promptly: employer plans generally must provide at least 30 days for special enrollment after eligible loss of coverage. Medicaid and CHIP applications are accepted year-round; eligibility varies by state and household.

Short-term insurance can exclude preexisting conditions or services and cap what it pays. It is not a substitute with the same protections as ACA comprehensive coverage. See the health plan comparison guide.

Which option fits your situation?

If treatment is underway, compare provider networks, drug coverage and authorizations before switching. COBRA keeps the same group plan, but benefits and networks can still change. Confirm with the administrator and your care team.

If a new job starts soon, check its waiting period. A delayed COBRA election can sometimes cover a gap retroactively, but only if you qualify and meet every deadline and payment requirement. Do not treat paperwork you have not completed as active insurance.

If money is tight, apply for Marketplace assistance and check Medicaid. Compare the full premium plus expected covered costs. A cheaper premium does not always mean a cheaper year.

Common questions

Can I drop COBRA for a Marketplace plan? You can switch during open enrollment or another qualifying enrollment period. Voluntarily ending COBRA or losing it for nonpayment generally does not create a new special enrollment period. COBRA exhaustion may qualify. Confirm the new start date before ending existing coverage.

Is COBRA always more expensive? No. Assistance, employer contributions, family needs and deductible progress can change the comparison. Use real quotes rather than averages.

Does unemployment prevent coverage? No. Eligibility for each option has its own rules; you do not need a job to apply for Marketplace coverage.

Before coverage ends

Keep election notices and proof of payment. Verify current enrollment dates directly with your Marketplace; state calendars can differ. The specific private plans discussed here are unavailable in Washington. That does not mean ACA coverage is unavailable there: residents can use Washington Healthplanfinder.

This is general U.S. coverage information. Your plan administrator can confirm the rights and deadlines that apply to you.

Compare your documented inputs in the Health Plan Comparison Calculator, then confirm the coverage, provider network and enrollment dates before choosing a plan. For related budgeting, see the HSA guide, FSA guide, medical expense calculator, out-of-pocket calculator and health calculators.