What if I'm losing my job-based health insurance coverage?
individuals Losing job-based health insurance coverage now have 2 options
If you lose your job and with it your job-based health insurance coverage, you may have the
option of keeping your health insurance for a limited time through a program called COBRA
continuation coverage or you may buy an individual plan through the Marketplace. A Special
Enrollment Period (SEP) is a time outside of the Open Enrollment Period (OEP) during which you
and your family have a right to sign up for health insurance coverage. In the Marketplace, you
generally qualify for a SEP of 60 days following certain life events such as loss of job-based
health insurance coverage due to loss of employment.
Option 1: Get an individual Marketplace plan
Average individual premium before the Advanced Premium Tax Credit is $374.
source: kaiser family foundation
If you leave your job for any reason and lose your job-based coverage, you can choose to buy
coverage from the Marketplace. This is true even if you leave your job outside the Marketplace
open enrollment period. By using the Marketplace, you’ll learn if you qualify for lower costs
on your monthly premiums on private insurance. You could also qualify for lower out-of-pocket
costs. Through the Marketplace you’ll also learn if you qualify for free or low-cost coverage
from Medicaid or the Children’s Health Insurance Program (CHIP).
Option 2: Get COBRA coverage
COBRA premium for a family in 2015 was $17,895.90 per year or $1,491.33/month.
source: kaiser family foundation
You may also be able to keep your job-based plan through COBRA continuation coverage. COBRA is a
federal law that may let you pay to keep you and your family on your employee health insurance for
a limited time (usually 18 months) after your employment ends or you otherwise lose coverage.
If you buy COBRA continuation coverage, you won't be able to get any of the lower costs on premiums
and out-of-pocket costs that people may get using the Marketplace. You’d also have to pay the full
monthly premium, including any part of the premium that your employer had contributed.
Get covered to avoid the penalty
If you do not have coverage that is considered minimum essential coverage, you may have to pay a penalty. You will also have to pay all of the costs for your health care.