If Your Workplace Drops Your Health Insurance: FAQ

Medically Reviewed by Sarah Goodell on September 15, 2023
3 min read

If your employer drops your health coverage or you lose your job, you have options for finding new insurance. Here are some answers to frequently asked questions.

No. COBRA is a law that lets you keep your company's health insurance if you lose your job. If your company stops offering health insurance, there is no company-sponsored  health plan available for you to continue. In this case, COBRA does not apply. You would need to find a new policy, which you can do through the Marketplaces offered under the Affordable Care Act.

Yes. You keep the health plan you had through your job if you're laid off through COBRA. In most cases you can keep it for up to 18 months.

Insurance through COBRA can be expensive. That's because while you were working, your employer was most likely paying part of your premium. Now that you're out of work, you have to pay the whole premium yourself. You will also have to pay an administrative fee that adds to the cost.

If your spouse has insurance through an employer, you might be able to get on their policy.

Usually, employees can only add a spouse or child to a health plan during a few weeks in the year known as open enrollment. But exceptions are made when a family situation changes, such as when a spouse loses health insurance. Ask your spouse to check with a human resources representative at their workplace.

Most likely yes. You can shop for insurance online through the Marketplace. If you lost your job or your employer dropped your insurance, you will qualify for a special enrollment period. You may also qualify for a subsidy to help you purchase insurance, depending on your income. 

You can shop and enroll online at healthcare.gov or if you need assistance, you can call a toll-free number to get your questions answered. You can also ask for face-to-face help in your area. To find a location near you, go to localhelp.healthcare.gov.

Yes. Government programs include:

Medicaid. You can get insurance through Medicaid if you have a low income, you're pregnant or you're disabled. The rules vary by state.

To find out if you qualify and how to apply for Medicaid in your state, visit the insurance and coverage finder on the federal government's web site, HealthCare.gov. You can also visit the Medicaid web site at Medicaid.gov.

CHIP. CHIP stands for Children's Health Insurance Program. Your kids can get insurance through CHIP if your income qualifies. It's meant for families that can't afford private health insurance but make too much money to get Medicaid. Whether you're eligible and how much you pay depends on the state you live in.

To find out about children's coverage programs in your state, visit the insurance and coverage finder on HealthCare.gov. You can also get more information on the federal government web site called InsureKidsNow.gov.

Medicare. If you're age 65 or older or are disabled, you may be eligible for coverage from Medicare, the government health program for seniors and people with disabilities. 

To find out if you qualify for Medicare, visit Medicare.gov. You can also use the government's Medicare Plan Finder to get cost estimates and coverage information and get information on private Medicare plans, called Medicare Advantage plans.