Many people who are unhappy with their job or who would like to leave to do something different, like find freelance work or start their own business, may be hesitant because of the high cost of health insurance.
If you’re curious about how a career change would affect your health coverage, what your coverage options are once you leave a job, and the financial impact on you and your family, read on.
In this article, I’ll give you information about when health insurance expires after you leave a job.
I’ll tell you what you need to do to prepare to leave your job, including evaluating your post-employment options for health care coverage.
With this information, you’ll be ready to make sure that no matter what choice you make, you’ll have the health care coverage you and your family need.
When does health insurance expire after leaving a job?
Most of the time, when you quit a job or are laid off, your health coverage will end on the last day of the month in which you work your last day.
That means if you plan to leave your job, it’s a good idea to quit at the beginning of the month so your health coverage continues for the rest of the month.
That’s a little extra security if you need to figure out your health insurance and health care needs after you leave.
If you get fired, unfortunately you don’t decide when your last day is.
You may still be able to negotiate additional time for coverage if your employer is willing; It certainly doesn’t hurt to ask.
Also, if you have no job prospects, you may be eligible for special enrollment in the health care marketplace.
Your children may also be able to get coverage through the Children’s Health Insurance Program Reauthorization Act (CHIPRA), which is offered through state Medicaid plans.
preparing to leave a job
If you’re looking to make a change and your employer currently provides you with health insurance, there are a few things to consider before submitting your notice.
We recommend that you familiarize yourself with your company’s policy regarding available post-employment coverage.
Compare your coverage options with those in the marketplace to make sure you get the coverage you need at the best price.
If you can’t find information about this in company manuals or websites, you can ask your human resources department about the costs of collectible insurance (which allows you to continue your health insurance after you leave). ).
note: keep in mind that this question will likely raise a signal that you may be thinking of leaving.
health insurance options
Your options for health insurance coverage after you separate from your current employer’s plan are limited but simple:
- You can continue coverage through your employer and pay the associated premiums with cobra.
- You can get insurance through a family member’s plan, if available.
- You can sign up for short-term insurance.
- You can sign up for coverage through the Health Care Marketplace. Usually, even if you’re outside the enrollment window, losing a job is a special event that allows you to enroll in a new policy.
The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives you the right to choose to continue group health benefits provided by your employer for a limited period after you stop working there.
However, you will be responsible for the full cost of the insurance premiums, unless you have negotiated an exit agreement with your employer that covers part of the amount.
Before signing up for cobra, it’s a good idea to check for less expensive options.
However, in certain situations (such as if you’ve already met your annual deductible), charges may be your best option.
join a spouse, partner or parent’s plan
If your spouse, partner or parent (must be under 26 to join a parent’s plan) has insurance, either through their employer or a private plan, they may be eligible to join your program.
Your family member should be able to find out from their human resources department (or insurance company) when they can enroll in their current health insurance plan.
Some plans require new additions to be made only during open enrollment periods, in which case you’ll need to find a workaround until you can be added.
Suppose you’re planning to enroll in a health insurance plan with a new employer or need to wait for the open enrollment period to join a family member’s plan.
In this situation, short-term health insurance might make sense.
some short-term plans have restrictive maximum limits, high copays or deductibles, or offer no coverage for pre-existing conditions; however, some plans offer comprehensive coverage at a reasonable cost.
check to see what options exist.
You may have to pay more for a while until your other insurance kicks in, but it’s often worth making sure you have health insurance and are covered in case of an emergency.
health insurance market
Always compare the price quotes you receive from insurers with what is available on healthcare.gov.
If your employment status has changed, you may be eligible for special enrollment and won’t have to wait for open enrollment, which begins November 1 and ends January 31.
The market offers a variety of insurance options to meet your needs and is definitely worth exploring.
From high-deductible plans that cost less to plans that are a bit more expensive but cover all doctor visits, you can find something that works for your situation.
Depending on your average annual income and other considerations, you may also be eligible for a subsidy to offset your full monthly cost.
how health can help
Did you know you can get affordable primary care with the K Health app?
Download k to check your symptoms, explore conditions and treatments, and if needed, text a doctor in minutes. K Health’s AI-powered app is HIPAA compliant and based on 20 years of clinical data.