Get Health Insurance Without a Job

Medical spending in the U.S. reached $4.9 trillion in 2023, which translates to an average of $14,570 per person. Health insurance can help lower the cost for individuals, but if you’re unemployed, you may not have access to an affordable employer-sponsored plan. This can make it tough to find the right coverage. However, there are still options, including Obamacare and income-based government plans, that might suit your needs.

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 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

1. I just lost my job. Do I have to wait until November to get insurance?

No. Losing your job is considered a Qualifying Life Event. This triggers a Special Enrollment Period (SEP), which typically gives you 60 days from the date you lost your coverage to sign up for a Marketplace plan.

2. Can I get health insurance if I have a pre-existing condition and no job?

Yes. Under the Affordable Care Act (ACA), Marketplace plans and Medicaid cannot deny you coverage or charge you more based on a pre-existing condition. However, be cautious with “Short-Term” plans, as these often do exclude pre-existing conditions.

3. How can I afford a premium if I have no income?

If your income is very low, you may qualify for Medicaid, which provides free or low-cost coverage. If you don’t qualify for Medicaid but have some estimated income for the year, you may be eligible for Premium Tax Credits and Cost-Sharing Reductions on the Marketplace, which can lower your monthly payments to nearly $0 in some cases.

4. Does unemployment compensation count as “income” for insurance?

Yes. When applying for Marketplace plans or Medicaid, unemployment benefits are generally counted as part of your household income.

5. Is it better to take COBRA or a Marketplace plan?

• Choose COBRA if: You have already met your deductible for the year, are in the middle of a complex treatment, or have a specific doctor who is not in any other networks.
• Choose Marketplace if: You want a lower monthly cost. Marketplace plans are almost always cheaper because you can get subsidies, whereas COBRA requires you to pay 102% of the total premium.

6. If I sign up for COBRA, can I switch to the Marketplace later?

Only during the annual Open Enrollment Period (Nov 1 – Jan 15) or if your COBRA coverage actually expires (usually after 18 months). If you simply stop paying your COBRA premiums or decide you want to cancel it halfway through, you generally cannot switch to a Marketplace plan until the next Open Enrollment.

7. My kids need coverage, but I can’t afford a family plan. What should I do?

Check your state’s CHIP (Children’s Health Insurance Program). CHIP often has higher income limits than Medicaid, meaning your children might qualify for free or low-cost care even if you earn too much for Medicaid yourself.

8. Can I stay on my parents insurance if I’m unemployed?

If you are under age 26, you can stay on (or be added to) a parent’s employer-sponsored plan, regardless of your employment status, residency, or marital status.

9. What is the difference between Bronze, Silver, and Gold plans?

• Bronze: Lowest monthly premium, but you pay a lot when you see a doctor (high deductible).
• Silver: Moderate premiums. Crucial: If you qualify for “Cost-Sharing Reductions,” you must pick a Silver plan to get those extra savings on deductibles and co-pays.
• Gold/Platinum: High monthly premiums, but the insurance covers most of your costs when you receive care.

10. How do I know if my doctor is covered?

Before enrolling, use the Marketplace “Find a Doctor” tool or check the insurer’s website. Look for the Provider Network. If your doctor is “Out-of-Network,” you will likely pay the full cost of the visit yourself.

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.