Quitting your job comes with many changes, and one of the biggest concerns is health insurance options after quitting a job. Many people don’t realize that employer-sponsored coverage often ends on the last day of employment or at the end of the month, leaving them wondering how to stay insured.
Losing your job-based health insurance doesn’t mean you must go without coverage. You have several options, including COBRA, Marketplace health plans, spouse or parent coverage, short-term health insurance, and Medicaid. Choosing the right plan depends on your budget, coverage needs, and eligibility.
At Skyline Benefit, we help individuals navigate health insurance transitions with ease. Whether you’re looking for a cost-effective COBRA alternative, Covered California plans, or private insurance options, we’ll guide you to the best plan for your needs.
Can You Stay on Your Employer’s Health Insurance After Quitting?
If you want to keep your current health insurance after quitting your job, COBRA might be an option. The Consolidated Omnibus Budget Reconciliation Act (COBRA) allows you to extend your employer-sponsored health plan for up to 18 to 36 months, but it can be costly. Since your employer no longer pays a portion of the premium, you’ll be responsible for the full amount plus a 2% administrative fee.
To qualify for COBRA, you must have been enrolled in your employer’s health plan, and your employer must have at least 20 employees. If COBRA is too expensive, there are more affordable health insurance options after quitting a job, such as enrolling in a Marketplace plan or joining a spouse’s coverage.
Enrolling in a Marketplace Plan Through Covered California
If COBRA isn’t the right fit, Marketplace health insurance (Covered California in California) is a cost-effective alternative. After leaving your job, you qualify for a Special Enrollment Period, allowing you to sign up for an individual or family plan outside the usual open enrollment period.
One of the biggest advantages of Marketplace plans is premium subsidies, which can significantly lower costs based on your income. These plans provide comprehensive coverage, including doctor visits, prescriptions, hospital care, and preventive services. Compared to COBRA, Marketplace insurance can be much more affordable if you qualify for financial assistance.
Joining a Spouse’s or Parent’s Health Insurance Plan
Another health insurance option after quitting a job is joining a spouse’s employer-sponsored plan. Many employers allow spouses to be added to their coverage, especially if you recently lost your health insurance. If you’re under 26, you may also qualify to join your parent’s health plan, which can be a convenient and affordable choice.
Qualifying for Medicaid After Quitting Your Job
Depending on your income after quitting, you may be eligible for Medicaid, which provides free or low-cost health insurance. Medicaid eligibility is based on household income, and you can apply at any time in many states. If you qualify, Medicaid covers many services, including doctor visits, hospital care, prescriptions, and preventive care.
Choosing the Best Health Insurance Option After Quitting a Job
When deciding on health insurance options after quitting a job, it’s important to consider:
- Affordability: COBRA can be expensive, while Marketplace plans may qualify for subsidies.
- Coverage Needs: If you need ongoing medical care, comprehensive coverage is crucial.
- Eligibility: If you have access to a spouse’s plan or Medicaid, those might be good options.
Get Expert Help Finding the Right Health Insurance Option
If you’ve recently left your job and need help choosing the best health insurance option after quitting a job, Skyline Benefit is here to assist you. Our team can guide you through COBRA alternatives, Marketplace enrollment, and other coverage solutions to ensure you stay protected.
Need Help with Health Insurance Options After Quitting a Job
Skyline Benefit is an independent group health insurance broker in Fullerton, CA, specializing in affordable health benefits for small businesses. Losing your employer’s health insurance doesn’t mean you have to go uninsured.
Schedule a free consultation today. Call us at: (714) 888-5112