If you lose your job, you have 60 days to either elect COBRA to keep your current employer plan (at full cost plus a 2% fee) or enroll in an ACA marketplace plan through a Special Enrollment Period, where you may qualify for income-based subsidies. For many people, a marketplace plan costs far less than COBRA.
Losing a job is one of the most stressful things that can happen, and one of the first questions people ask me is: “What do I do about health insurance?” You have real options — but the clock starts ticking the moment your employer coverage ends.
Here’s a practical, step-by-step breakdown of what to do and what’s available to you.
Step One: Understand When Your Current Coverage Ends
Most employer-sponsored health plans end on your last day of employment or at the end of that month, depending on your employer’s policy. Find out the exact date your coverage terminates — this determines your deadlines for the options below. Check your HR paperwork, your benefits portal, or call your employer’s HR department directly if you’re unsure.
Option 1: COBRA — Keep Your Existing Coverage
COBRA (Consolidated Omnibus Budget Reconciliation Act) lets you continue the exact same health insurance plan you had through your employer — same network, same doctors, same coverage — for up to 18 months after your job ends.
How COBRA Works
- After your employer coverage ends, your employer’s COBRA administrator must notify you in writing. You typically have 60 days to elect COBRA from the date you receive that notice (or the date your coverage ends, whichever is later).
- Coverage is retroactive — meaning if you elect COBRA on day 59 and have a medical event on day 30, you’re still covered. Just make sure you pay the back premiums.
- You can continue coverage for up to 18 months (36 months for dependents in some circumstances).
The Major Drawback: Cost
COBRA is expensive. When you were employed, your employer was paying a significant portion of your premium — often 70-80%. Under COBRA, you pay the full cost plus a 2% administrative fee. What was a $150 monthly payroll deduction might become a $600 or $700 monthly COBRA premium.
(For a detailed side-by-side, see our guide on what happens to your health insurance when you change jobs.)
COBRA makes the most sense if you’re mid-treatment for a condition, about to have a procedure, or expect to be employed again soon and want to avoid disrupting your current provider relationships. If you’re generally healthy and expect a longer job search, an ACA marketplace plan is often significantly cheaper.
Option 2: ACA Marketplace Plan — Often the Better Value
Losing employer-sponsored health coverage is a qualifying life event that opens a Special Enrollment Period (SEP) on the ACA marketplace. You have 60 days from the date you lose coverage to enroll in a new plan.
This is important: you don’t have to wait for the annual Open Enrollment period, which for 2027 coverage runs November 1, 2026 through January 15, 2027 (enroll by December 15 for a January 1 start). Losing your job gives you a window right now. More on timing in enrollment period deadlines and how to enroll.
What About Subsidies?
If your income for the year — including any unemployment benefits — falls between 100% and 400% of the federal poverty level, you likely qualify for premium tax credits that can dramatically lower your monthly premium. Above 400% FPL (about $63,840 for a single person), there’s no credit — the enhanced subsidies that removed that cap expired at the end of 2025. For many people who’ve just lost a job, a subsidized marketplace plan is far more affordable than COBRA.
For example, a single adult in Florida with $25,000 of income for the year is about 157% of the poverty level, which means a sizable premium tax credit plus cost-sharing reductions on a Silver plan. What they pay is typically a small fraction of what COBRA would cost.
You can shop and compare plans at HealthCare.gov or work with a licensed broker (like me) who can compare options at no cost to you.
Option 3: Medicaid — If Your Income Drops Significantly
If your income drops low enough — particularly if you’re living on severance or minimal unemployment benefits — you might qualify for Medicaid, Florida’s government health insurance program for low-income residents.
Florida Has NOT Expanded Medicaid
This is a critical point that catches many Floridians off guard. Florida is one of a small number of states that has not expanded Medicaid under the Affordable Care Act. That means Florida’s income threshold for Medicaid is much stricter than in expansion states.
In Florida, most non-elderly adults without dependent children do not qualify for Medicaid regardless of income. Parents with dependent children may qualify only at very low income levels, and pregnant women, children, and people with disabilities have broader eligibility. But if you’re a single adult with no children and low income after job loss, you may fall into the “coverage gap” — earning too little to qualify for ACA marketplace subsidies (which start at 100% FPL) but not qualifying for Florida Medicaid.
If you’re in this situation, there are still options — some federally qualified health centers offer sliding-scale care, and there are limited assistance programs available. See free and low-cost health insurance options in Florida, and I can help you navigate this.
Your Action Timeline After Job Loss
- Day 1–7: Confirm your exact coverage end date with HR. Request COBRA election paperwork.
- Day 1–30: Compare ACA marketplace plans at HealthCare.gov or with a broker. Get subsidy estimates based on your projected income.
- By Day 60: Make your decision. Elect COBRA if you need to maintain specific provider relationships, or enroll in a marketplace plan if cost is the priority.
- Don’t wait until you’re sick to figure this out. A coverage gap — even a short one — can result in devastating medical bills.
Don’t Navigate This Alone
Job loss is already overwhelming. The last thing you need is to spend hours comparing health plans on your own. As a licensed Florida health insurance broker, I help people in exactly this situation every day — comparing COBRA costs to marketplace options, checking subsidy eligibility, and making sure there’s no gap in coverage.
Frequently Asked Questions
How long do I have to get health insurance after losing my job?
You generally have 60 days from losing employer coverage to enroll in an ACA marketplace plan through a Special Enrollment Period. You also typically have 60 days from your COBRA notice or coverage end date to elect COBRA, which is retroactive. Enrolling sooner helps you avoid any gap in coverage.
Is COBRA or a marketplace plan cheaper after a job loss?
A marketplace plan is usually cheaper if your household income for the year is between 100% and 400% of the Federal Poverty Level, because you may qualify for premium tax credits. COBRA requires you to pay the full premium plus 2%, but it can make sense if you’re mid-treatment and need to keep your exact doctors.
Does unemployment income count for health insurance subsidies?
Yes. Unemployment compensation counts toward the modified adjusted gross income used for marketplace subsidies, along with any wages earned earlier in the year and severance. Estimate your total income for the calendar year when you apply, and update healthcare.gov if you find a new job so your credit stays accurate.
Can I get Medicaid in Florida after losing my job?
Possibly, but it’s limited. Florida has not adopted ACA Medicaid expansion, so most adults without dependent children don’t qualify based on low income alone. Children, pregnant women, people with disabilities, and parents with very low incomes may qualify. Adults below 100% FPL may fall into the coverage gap.
Job loss is already overwhelming. I’ll compare COBRA costs to marketplace options, check your subsidy eligibility, and make sure there’s no gap in coverage — quickly. I’m Michael McAllister, owner of Choice Health Insurance Brokers in DeLand, FL — a licensed broker appointed with 200 carriers (NPN 18229135). My help costs you nothing; I’m paid by the carriers. Call or text me at 321-230-9536 or visit choice.healthcare for a free quote and a plan comparison built around your situation.