Health coverage when you're between jobs

Option 1: Marketplace coverage

Losing job-based coverage qualifies you for a Special Enrollment Period, so you don't have to wait for Open Enrollment. One application tells you whether you qualify for a Marketplace plan with savings, Medicaid, or CHIP (the Children's Health Insurance Program).

Your savings are based on your household size and your estimated income for the year you need coverage. Being out of work doesn't qualify you on its own, and having a job doesn't rule you out. If you're not sure you can afford coverage, apply first and see what you qualify for.

• If you don't qualify for savings, a Catastrophic or Bronze plan paired with a Health Savings Account may be an option. Those plans work with an HSA, which lets you set money aside tax-free for care.
• If you can't afford a plan, community health centers offer low-cost care.

Option 2: COBRA, if your employer offers it

COBRA (the Consolidated Omnibus Budget Reconciliation Act) is a federal law that can let you keep your former employer's health plan for a limited time after your job ends. You keep the same plan and network, which can matter if you're in the middle of treatment.

The trade-off is cost. With COBRA you pay the whole premium, including the part your employer used to pay, plus a small administrative fee.

When you get a new job

If your new job offers health coverage, you can keep or cancel your Marketplace plan. But you may lose your Marketplace savings even if you don't enroll in the job's plan. It depends on whether the job-based plan counts as affordable and meets a minimum value standard.

If the new job doesn't offer coverage, you can keep your Marketplace plan and any savings you qualify for.

Either way, report the new job and your new income to the Marketplace right away, so your savings are correct and you don't owe money at tax time.