Does My Health Insurance End The Day I Get Fired?

The thought of losing a job can be overwhelming and can come with a range of emotions. One of the most pressing questions people often have is what happens to their health insurance when they are fired. Depending on the type of health insurance you have, the answer may vary.

Losing Health Insurance After Losing A Job

If you are employed and receive your health insurance through your employer, you will more than likely lose your insurance when you are fired. This means you may need to find another way to get health insurance. Depending on the situation, you may be eligible for health insurance through your spouse or you may need to look into plans on the open market.

COBRA After Job Loss

If you are losing your job-based coverage, you may be eligible for a federal law called COBRA. This law allows you to continue your health insurance plan after being fired, although you will have to pay the full cost yourself. This can be a costly option, but can be useful if you need coverage while looking for a new job. The coverage will last for 18 months, but you can extend it to 36 months if you are disabled.

Finding New Health Insurance After Job Loss

If you do not want to continue your job-based insurance through COBRA, you can look for health insurance on the open market. The Affordable Care Act (ACA) ensures that you can get coverage even if you have a pre-existing condition. Depending on your income, you may even qualify for subsidies. The ACA also ensures that you can not be denied coverage due to a pre-existing condition or be charged more.

Other Options After Job Loss

If you do not qualify for ACA subsidies and cannot afford private insurance, you may be eligible for government-funded health insurance. Depending on the state you live in, you may qualify for Medicaid, which is a government-funded health insurance program. You can also look into short-term insurance plans, which are meant to cover you until you can find a more permanent plan.

Summary

Losing your job can be difficult, but it is important to know what will happen to your health insurance. If you have job-based coverage, you will likely lose it when you are fired. You may be eligible for COBRA, which allows you to continue your health insurance for 18-36 months. You can also look for health insurance on the open market, or you may qualify for government-funded health insurance.