Losing your job can be stressful enough without having to worry about health insurance. Fortunately, you have several options to get affordable health coverage even if you are unemployed. This guide will walk you through the main ways to get health insurance without a job, factors to consider when choosing a plan, and tips for saving money on healthcare costs when you don’t have employer-sponsored benefits.
Health Insurance Options for the Unemployed
If you’ve lost your job and health benefits, take advantage of the special enrollment period that gives you 60 days to sign up for a new plan. Here are some of the main options to consider:
Health Insurance Marketplace
The Health Insurance Marketplace, created under the Affordable Care Act, offers a way for individuals to compare and purchase health plans online. The open enrollment period runs from November 1 to January 15 each year. Outside of that, you can enroll within 60 days of losing other coverage or certain life events.
The Marketplace may offer subsidies and tax credits to lower your premiums if you meet the income requirements. All Marketplace plans must cover essential benefits like doctor visits, prescriptions, maternity care and more. You can’t be denied for pre-existing conditions.
COBRA
With COBRA, you can continue your employer health benefits for 18-36 months in most cases. While likely more expensive since your employer won’t contribute, it allows you to keep the same coverage, doctors and network while between jobs. You have 60 days after job loss to elect COBRA.
Medicaid and CHIP
Medicaid provides free or low-cost health coverage based on factors like income level, household size, disability status and more. Requirements vary by state. CHIP covers children in families who earn too much for Medicaid but not enough for private insurance. Check if you or your dependents qualify.
Spouse or Parent’s Plan
See if you can join a health plan from your spouse, partner or parent. This can provide affordable group coverage. Dependents can typically join parents’ plans until age 26. Losing job-based coverage triggers a special enrollment period for employer plans.
Short-Term Insurance
Short-term health plans provide temporary coverage, often for 6-12 months. They usually have lower premiums but less comprehensive coverage and benefits. Rules and availability vary by state. They can cover gaps between jobs but aren’t a good long-term solution.
Health Sharing Ministries
Health sharing ministries are faith-based groups where members share each other’s healthcare costs. They aren’t insurance but do offer an affordable option for some. Members pay a monthly fee into a shared pool to cover medical needs for those who qualify. They have religious and lifestyle requirements.
Choosing the Right Health Insurance Plan
With an array of health insurance options, it’s important to assess your specific situation, needs and budget to choose the right plan for you. Here are some factors to consider:
Type of Coverage
- Comprehensive coverage:Â Most ACA Marketplace and employer-sponsored plans offer robust coverage for essential services, prescriptions, pre-existing conditions and more. They often have higher premiums.
- Catastrophic or short-term coverage:Â Plans like short-term insurance tend to have lower premiums but less coverage, more out-of-pocket costs, and exclusions. Good for healthy people who want basic coverage.
- Government programs:Â Medicaid, Medicare and CHIP provide comprehensive benefits for those who qualify based on factors like age, income, disability status and family size. Very affordable for eligible enrollees.
Costs
- Premiums:Â The monthly amount you pay for coverage. Bronze and catastrophic plans have low premiums while gold and platinum plans have higher premiums.
- Deductibles:Â The amount you pay out-of-pocket before insurance kicks in. HDHPs have deductibles of $1,400+ for individuals. Other plans range from $0 to $4,000+ depending on the plan.
- Copays and coinsurance:Â Additional costs per visit or service (copay) or percentage you pay after deductible (coinsurance). Know the costs you’ll be responsible for.
- Out-of-pocket maximum:Â The most you’ll pay in a year for covered services. ACA plans cap this. Ideal for those with frequent medical needs.
Provider Network
Know which doctors, clinics and hospitals you can access in-network. PPOs offer in- and out-of-network coverage. HMOs only cover in-network except emergencies. Narrow networks have lower premiums but less choice.
Prescription Drug Coverage
Check formulary and tier structure. Most ACA plans cover brand and generic drugs but some may have exclusions. You’ll pay more for non-preferred brands. Compare medication costs.
Additional Benefits
Some plans cover extra benefits like dental, vision, hearing, acupuncture, fitness memberships. Choose a plan with the benefits most useful to you and your family.
Ways to Save on Healthcare Without Insurance
Going without health insurance isn’t advisable if you can help it. But if you do find yourself uninsured, here are some tips to reduce your healthcare costs:
- Compare service and prescription prices:Â Shop around and compare costs at different providers, clinics or pharmacies to find the best deals. GoodRx can help find lowest Rx prices.
- Look for community health centers and clinics:Â Federally qualified health centers and free clinics provide primary care on an income-based sliding scale.
- Ask about cash prices and discounts:Â You can sometimes pay less by asking to pay the cash price rather than the higher insured rate, especially for routine services.
- Consider healthcare sharing ministries:Â These faith-based programs offer affordable care sharing options if you qualify.
- Negotiate bills and payment plans:Â Talk to hospitals and providers about negotiating your medical bills and setting up interest-free payment plans.
- Shop for short-term insurance:Â Short-term health plans are inexpensive for temporary coverage but read the fine print.
- Use telehealth services:Â Virtual visits tend to have much lower costs than in-office visits.
- Take advantage of free preventive services:Â Most insurance plans now offer free preventive care like checkups, cancer screenings, vaccines and more.
Final Words
Losing your job and health benefits can be challenging. But fortunately, you have options like the Health Insurance Marketplace, Medicaid, COBRA and short-term plans to get replacement coverage. Compare all the options carefully based on your healthcare needs and budget limitations to make the best choice.
FAQs about Health Insurance Without a Job
How do I get health insurance if I lost my job?
If you lose job-based coverage, you qualify for a 60 day special enrollment period. You can enroll in COBRA, join a spouse/family member’s plan if available, or sign up for an individual health plan through the Health Insurance Marketplace or directly through an insurance company.
Where can I find affordable health insurance plans?
The Health Insurance Marketplace offers subsidized health plans for low to moderate income individuals and families. Medicaid and CHIP also provide free or low-cost health coverage for those who qualify. Short-term plans offer cheaper temporary coverage as well.
What if I can’t afford health insurance without employer benefits?
If money is tight after job loss, explore your options for Medicaid coverage through your state’s health exchange. Many people qualify with low or no income. The Children’s Health Insurance Program also covers kids at low or no cost if you exceed Medicaid limits.
Should I go without health insurance if unemployed?
No, it’s risky to go without health coverage since an accident, injury or illness can lead to extremely high medical bills. Take advantage of the special enrollment period and review all available options to find an affordable health plan that fits your situation.
What is a short-term health insurance plan?
Short-term health plans provide temporary insurance coverage for 30 days to 1 year in most states. They have lower premiums but less comprehensive benefits. They can deny you for pre-existing conditions or exclude those conditions from coverage. Read the policy carefully.
