Health insurance between jobs - 5 options to get it

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People often worry about what will happen to their health insurance when they change jobs.

Maybe you’ve lost your job, and you’re looking for health insurance while you search for your next opportunity. Or it could be that you have a new job, but your employer doesn’t start health insurance immediately, which means you’ll be uninsured for a while.

So, what do you do about insurance after a job loss?

You have multiple options depending on where you live, your income and your situation. Keep reading to learn how to get health insurance after a job loss or between jobs.

Key Takeaways

You usually have multiple options when you lose your employer’s health insurance.
COBRA has been traditionally the way to keep health insurance, but keeping that coverage is expensive.
Going on your spouse’s health insurance is usually one of the easiest ways to maintain comprehensive coverage.

What to do when your employer-based health insurance coverage ends

The first thing to find out is when your previous employer is stopping your coverage. It may:

End your coverage immediately.
Wait until the end of the month.
Cover you for months, especially if you were laid off.

Once you know when your previous employer will stop covering you, you can plan your next move.

If you’re starting a new job, find out from the new employer when that coverage begins. You may only be without insurance for a few days or weeks. In that case, you may decide to go without health insurance temporarily or get a short-term health plan.

Health insurance options for you when you’re between jobs

There are different ways to get health insurance if you’re between jobs. They are mentioned below.

Go on your spouse’s health plan: Life events like losing your job, having a child and getting married qualify for a special enrollment period. During that special enrollment period, you and your spouse can change or add insurance. If you decide to go on your spouse’s plan, your spouse needs to speak to their employer about health insurance options, sign up for a policy and add you to the plan.

COBRA: The benefit of COBRA health insurance is that you get to keep the same insurance plan for 18 months. The drawback is it’s quite expensive. You get 60 days to decide whether to continue your former employer’s coverage via COBRA insurance.

Individual insurance and ACA exchanges: You can get an individual plan, also called nongroup insurance, either as part of the Affordable Care Act (ACA) exchanges or off the exchanges directly from the health insurer. The ACA categorizes plans by tier: platinum, gold, silver, and bronze. The tier depends on premiums, out-of-pocket costs, the insurer’s coverage, and the member’s payment.

Short-term health plans: Short-term health plans are a low-cost way for most Americans to help bridge the gap between jobs. However, the plans have hefty out-of-pocket costs. Also, some states don’t allow short-term plans; others limit them to only three or six months.

Medicaid: Depending on your income and where you live, you might be eligible for Medicaid. You can apply for coverage through your state’s Medicaid site.

Avoid a lapse in coverage when switching jobs

A health insurance lapse between jobs is a period when an individual is without health insurance coverage. This can happen for various reasons, such as losing a job or stepping down from a position that offers health benefits. While it may seem like a minor issue, a health insurance lapse can have serious consequences. Without health insurance, individuals are responsible for paying all of their medical costs.

Individuals who experience a lapse in health insurance coverage should take steps to secure new coverage as soon as possible to avoid any gaps. There are a number of options available for individuals who need to obtain health insurance coverage, including private health insurance plans, government-sponsored health insurance programs and short-term health insurance plans.

What are my health insurance options if I have no income?

If you currently have no earnings and want to get health insurance, you have choices, but they may be limited. The best option for people with no income would be Medicaid. Each state has its own program (although it’s not always called Medicaid) designed to provide medical insurance to low-income individuals and families. The easiest way to find your state’s Medicaid program and apply is to search online.

If you have children or minor dependents and meet the requirements, you can enroll them in your state’s Children’s Health Insurance Program (CHIP), says Brian Martucci, the Minneapolis-based finance editor for Money Crashers. “As with Medicaid, CHIP income eligibility varies by state, but the limits can be more generous than for Medicaid.”

Best health insurance for the unemployed

Today, if you are unemployed and are receiving an unemployment subsidy, you can enroll in a subsidized health plan if you had an income equivalent to 133% of the federal poverty level. This basically means a zero-premium plan for you and your family,

-Gamil Kharfan, CEO of Miami-based Claro Insurance

Best health insurance companies in 2025

Unlike other types of insurance, such as car and home insurance, your health insurance company options are limited by your employer and where you live.

Here are the five top-rated health insurance companies in Insure.com’s Best Health Insurance Companies:

Kaiser Permanente: Kaiser Permanente is ranked the top health insurance company for 2025, earning 4.17 out of 5 stars in Insure.com’s ranking.

The insurer performed well in several areas and received a high rating of 4.19 out of 5 stars for affordability and 4.2 out of 5 stars from the National Committee for Quality Assurance (NCQA).

UnitedHealthcare: UnitedHealthcare is ranked as one of the top two health insurance companies for 2025, alongside Kaiser Permanente, with a rating of 4.17 out of 5 stars in Insure.com’s best health insurance companies in 2025 list.

People trust UnitedHealthcare the most compared to other insurance companies. Most of its customers plan to renew their plans and would recommend the company to others.

Aetna: Aetna ranked no. 3 on Insure.com’s list of best health insurance companies for 2025. It earned 3.43 out of 5 stars from the National Committee for Quality Assurance and 0.26 scores from the National Association of Insurance Commissioners.

Highmark: Highmark is fourth in our best health insurance companies rankings. Among the insurance companies analyzed it received the third-highest rating for customer satisfaction and an overall score of 4.02 out of 5.

Elevance: Elevance shares the fifth spot with Health Care Service Corp. and Humana on Insure.com’s 2025 list of the best health insurance companies, earning a star rating of 3.95 out of 5.

Health Care Service Corp: Health Care Service Corp. ranks fifth among the best health insurance companies, along with Elevance and Humana. The insurer earned 3.95 out of 5 stars in our ranking.

Humana: Humana is fifth in our best health insurance companies ranking, along with Elevance and Health Care Service Corp. It earned 3.95 stars out of 5 and an NAIC complaint index score of 0.15, the best among the companies we ranked.

How to shop around when you don’t have health insurance

If you’re out of work and need a health insurance plan, make sure to explore all of your options. You can start with our guide, What’s the Best Health Insurance Option for You?

Here are some steps to take:

Explore your spouse’s employer’s health insurance options.
Read through your former employer’s COBRA information and see whether that plan would make sense for your situation.
Go to your state’s ACA marketplace, enter your information and see how much those plans would cost you.
See if there are individual health insurance plans not part of the ACA exchanges that might work better for you.
Check into a short-term plan if that interests you.
Figure out if you’re eligible for Medicaid in your state.

Taking these steps will help put you on the path to getting a health insurance plan that works for you, whether an Obamacare plan or not.

Best health insurance for families

If you don’t qualify for Medicaid, the ACA marketplace provides subsidized family health insurance plans.

“Because Medicaid income eligibility limits are higher for larger families, you may qualify for coverage — even if you are earning some income during your period of unemployment,” Martucci says.

Note that what’s best for you and your family depends on what you want from a health care plan. That’s why it’s smart to shop around carefully and compare insurers and plan offerings.

Here are the top health insurers for multiple categories in our Best Health Insurance Companies 2025 rating:

Best health insurance company for price/affordability: Molina
Best health insurance company for customer satisfaction: Molina
Most recommended health insurance company: Highmark
Best health insurance company for policy offerings: Molina

Final thoughts

Being between jobs can be stressful. However, finding a health plan that bridges your insurance gap until a new employer covers you will relieve some of your stress while you’re out of work.

If you’re shopping for a health insurance provider, you can also use Insure.com’s list of the Best Health Insurance Companies to compare and find one that best suits your needs. You can additionally use the Health Insurance Advisor tool to identify what type of health insurance coverage you need.

Frequently Asked Questions

How long can I go without health insurance between jobs?

You have a 60-day window after losing your employer-sponsored health insurance to sign up for a new plan. It includes options through the Affordable Care Act (ACA) Marketplace or choosing COBRA.

Are there penalties for not having health insurance?

There is no federal penalty for going without a health insurance plan. However, some states have their own mandates and may impose a state tax penalty if you don’t have qualifying coverage.

How soon does new health insurance coverage start after I enroll?

Your new health insurance coverage begins on the first day of the month you enroll in a plan, regardless of when you sign up during that month.

How do I get health insurance if I work for myself?

If you are self-employed and have no employees, getting an individual plan through Healthcare.gov may be your best option unless you qualify for income-restricted Medicaid coverage.

“You would only qualify for a group plan option if you have at least one full-time W-2 employee enrolled in the plan as well,” says Jacquelynn Neat, president/founder of Indigo Care Partners, Inc., in Overland Park, Kansas. “Also, some trade associations and chambers of commerce offer plan options to small business owners. Or you may speak with a licensed health insurance agent specializing in individual health insurance policies.”

Sources:

U.S Department of Labor “FAQs on COBRA Continuation Health Coverage for Workers. ” Accessed March 2025.

U.S Department of Labor “Continuation of Health Coverage (COBRA). ” Accessed March 2025.

Healthcare.gov “ If you lose job-based health insurance. ” Accessed March 2025.

Cigna “Health Insurance Between Jobs. ” Accessed March 2025.

Shivani Gite

Contributing Writer

Shivani Gite is a personal finance and insurance writer with a degree in journalism and mass communication. She is passionate about making insurance topics easy to understand for people and helping them make better financial decisions.