Best Financial Guide - GlobalFinMate

Key Takeaways

Unemployed individuals can get health insurance through state or federal health insurance marketplaces or private insurers. Many qualify for subsidies to help buy marketplace plans.
You may qualify for COBRA, which temporarily extends the same coverage you had when you were employed.
Consider applying for government-sponsored programs like Medicaid or CHIP if you qualify and can’t get onto a family member’s plan.
Understand the cost, coverage, benefits, and provider networks of different plans as you search for the right one.

Health Insurance Marketplace Plans

If you’re unemployed, you may get health insurance through the Health Insurance Marketplace. The marketplace, run by the federal government, can help you compare plans and choose the right one based on cost, benefits, and coverage. Many states have their own insurance marketplaces as well.

Your income and household size may qualify you for savings through premium tax credits (which reduce your monthly payments), or cost-sharing reductions (which lower your out-of-pocket costs for care). You’ll have to fill out an application to determine your eligibility for any cost savings. Keep in mind that being unemployed doesn’t guarantee you any discounts.

Tip:
Anyone can apply for coverage during the open enrollment period, which runs from Nov. 1 to Jan. 15:

Enroll by Dec. 15 to start coverage on Jan. 1.
Enroll by Jan. 15 to start coverage on Feb. 1.

A job loss qualifies you for a special enrollment period (outside open enrollment). Other life changes like marriage or divorce also qualify.

COBRA

You may also qualify for health insurance through the Consolidated Omnibus Budget Reconciliation Act (COBRA). This is a federal law requiring employers with 20 or more employees to offer employer-sponsored health insurance for a limited time (usually 18 to 36 months) after a job loss, whether voluntary or involuntary.

If you continue coverage, you’ll retain the same benefits you had while employed. However, COBRA isn’t always affordable.

You must pay the full premium, including the employer portion, plus a 2% administrative fee. In 2024, employers paid an average of 81% of an employee’s premium, while employees covered the remaining 19%. The average COBRA premium ranges between $400 and $700, plus fees.

Existing Family Member’s Plan

If you lose your job, you may be able to get coverage through a family member’s health insurance plan. Most plans allow family members to be added if they meet certain eligibility requirements—such as a spouse or dependent children.

You can usually be added during the open enrollment period, or outside of it if there’s a qualifying event (such as a job loss). The primary insured must contact their insurer to confirm eligibility and start the process.

Note:
As many as 305.2 million or 92% of insured individuals in the U.S. were covered through employers in 2023.

Income-Based Government Programs

Unemployed individuals may qualify for income-based government programs, including Medicaid and the Children’s Health Insurance Program (CHIP). Together, these programs offer coverage to 77.9 million people.

Medicaid is a joint federal-state program for low-income families, pregnant women, people with disabilities, and others. Qualifications vary by state. You may be eligible if your income is under 133% of the Federal Poverty Line (FPL).
CHIP is for children whose family income is too high for Medicaid but still too low to afford private insurance. Some states also cover pregnant women.

Apply through the health insurance marketplace or your state’s Medicaid website.

Private Insurance

You can also purchase private or commercial health insurance directly from insurers or through insurance agents, even without employer coverage.

Plans typically fall under:

PPO (Preferred Provider Organizations)
HMO (Health Maintenance Organizations)

To keep coverage, you’ll need to pay monthly premiums. Costs depend on the plan and location. Without employer or marketplace subsidies, private insurance is often more expensive.

Short-Term Health Insurance

If no other insurance is available, consider a short-term health insurance plan. These are low-premium, temporary plans with limited coverage. However, they often do not cover preexisting conditions and may exclude critical services.

How to Choose the Best Insurance When You’re Unemployed

You’ll need to weigh several factors when selecting coverage:

Cost

Monthly Premiums – Your fixed payment to the insurer.
Out-of-Pocket Costs – Includes co-pays and coinsurance.
Deductibles – The amount you pay before coverage kicks in.
Out-of-Pocket Maximum – After this, the plan covers all eligible expenses.

Marketplace plans are categorized as:

Bronze – Low premiums, high out-of-pocket costs.
Silver – Moderate premiums and costs.
Gold – Higher premiums, lower costs.
Platinum – Highest premiums, lowest out-of-pocket expenses.

Benefits & Coverage

Check if the plan covers what you need—especially if you have a chronic condition like diabetes, cancer, or Crohn’s disease.

Network

If you already have doctors you trust, make sure they are in the plan’s network. Out-of-network providers can be expensive.

Best Health Insurance Companies

Having trouble choosing? Based on Investopedia’s 2024 research, here are the best companies by type:

Best Marketplace Plans

Kaiser Permanente – Low premiums, high satisfaction (limited areas only)
UnitedHealthcare – Widely available, low deductibles
Aetna – Excellent for chronic conditions, low co-pays, best complaint record
Molina Healthcare – One of the most affordable on the marketplace

Best Short-Term Plans

PivotHealth Deluxe Plan – Best overall, low deductibles & co-pays
PivotHealth Standard – Low deductibles, below-average premiums
PivotHealth Economy – Lowest monthly premiums
UnitedHealthcare Plus Elite – High coverage benefit

The Bottom Line

Losing your job means losing income—and potentially your health insurance. COBRA can be expensive, but there are affordable alternatives. Marketplace plans, Medicaid, CHIP, or family coverage may be available. Whatever option you choose, make sure it aligns with your budget and medical needs.

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