Losing your job can be stressful, and losing your health insurance on top of that can feel overwhelming. But being unemployed doesn’t mean you have to go without coverage.
There are several affordable options to help you stay insured, whether you’re between jobs or facing a longer period of unemployment. In this guide, we’ll break down your best choices and help you find a plan that fits your health needs and budget.
Why Health Insurance Still Matters Even Without a Job
Without a plan provided by an employer, most think they’ll have to wait until they go back to work to have coverage again. But even while out of work, health insurance is crucial. It can help cover doctor visits, prescriptions, emergency room visits, and hospital stays—protecting your body and your budget.
Even common medical issues can be extremely costly without coverage. That’s why unemployed health insurance should be first on your agenda.
5 Affordable Health Coverage Options If You’re Unemployed
Here are some of the most affordable ways to get health insurance while unemployed:
1. Marketplace Health Plans (ACA)
With the Affordable Care Act (ACA), purchasing insurance under the Health Insurance Marketplace is now simple. If you lose your current job, you qualify for a Special Enrollment Period; therefore, you do not have to wait until the open enrollment period.
These are income-based plans; most unemployed people qualify for substantial subsidies or a $0 monthly premium. Thus, they are a great choice for cheap health insurance for unemployed people.
2. Medicaid
Medicaid is a state- and federally subsidized plan offering low-cost or free coverage to individuals and families living below the poverty level. Since you may now have a lower income because of job loss, you may become eligible, especially if you were not before.
You’re qualified based on your state, but it’s easy to determine whether you are through your state’s Medicaid portal or the federal Marketplace.
3. COBRA Coverage
COBRA lets you keep your previous employer’s health plan for up to 18 months. The disadvantage is expense—you’ll be paying the full premium, which your employer used to cover, and an administrative fee.
While not ideal for long-term unemployment, COBRA is a reasonable stopgap to prevent coverage lapses, especially if you have ongoing medical requirements.
4. Short-Term Health Insurance
Short-term insurance provides minimal coverage for a short duration, typically a maximum of one year. Short-term policies charge lower monthly rates but payout for fewer services and may exclude pre-existing conditions.
They might be a temporary fix if you’re in between jobs and waiting for other coverage to start.
5. Spouse’s or Parent’s Insurance
If your partner is employed and has a medical plan, you can probably sign up as a dependent. Depending on the situation, young adults through age 26 can also be eligible to stay on or return to a parent’s plan.
This is often one of the lowest-cost and most comprehensive ways to maintain health coverage while unemployed.
Things to Keep in Mind When Choosing a Plan
When weighing your options, keep in mind:
- Your monthly take-home pay and expected spending
- Your current health needs (prescription drugs, routine checkups, ongoing treatment)
- How long do you expect to be out of work
- If you have family members who also need coverage
Balancing cost with coverage is the most important. A cheaper plan with minimal benefits might be foolish if you have continuing medical needs. On the other hand, a more robust plan can be a safeguard, especially if you are subsidy-eligible.
Getting Started: Next Steps
Purchasing affordable health insurance for the unemployed is not necessarily overwhelming. By investigating all your possibilities, you can have your health insured while you look for your next job.
Additionally, make sure to gather all the necessary information before enrolling—such as your income details, household size, and any recent changes to your employment or residency status. This will help ensure you’re matched with the right plan and receive any financial assistance you’re eligible for.
FAQs
What is the lowest-cost health insurance if I am unemployed?
Medicaid will most likely be the lowest-cost option if you qualify based on income. ACA plans that involve subsidies might also be low-cost or free.
Can I obtain health coverage if I am temporarily unemployed?
Yes. COBRA or short-term plans can temporarily maintain you while your new employer provides coverage or you change to another policy.
Do I need to wait for open enrollment to become covered?
No. Losing your job makes you eligible for a Special Enrollment Period, so you can immediately enroll in ACA marketplace coverage.
