6 ways to get health insurance for unemployed individuals

Can you get health insurance for unemployed periods?

Yes, you can. Now take a deep breath and release some of that worry-stress. There are a number of ways to get health insurance for unemployed periods.

Whether you’re temporarily out of work or waiting on coverage to start at a new job, it’s important to maintain major medical insurance while unemployed to help with healthcare costs in case of an emergency.

No matter your unique circumstance, you have options when it comes to finding health insurance for unemployed periods. Whatever position you find yourself in, there is a way for you to get health insurance.

In this article, you’ll learn six ways to get health insurance for unemployed periods, including:

Short-term health insurance
Individual Affordable Care Act (ACA) health insurance
Consolidated Omnibus Budget Reconciliation (COBRA)
Medicaid and/or CHIP
Medicare
Spouse or parent’s health insurance plan

1. Short-term health insurance

Short-term health insurance plans are designed to cover emergencies and unexpected illnesses.¹

A temporary solution. They are not intended to be used as a permanent solution to your healthcare coverage needs.
ACA rules don’t apply. Short-term, or temporary, health insurance is not compliant with the Affordable Care Act (ACA).
Pre-existing conditions. Short-term health insurance will not cover pre-existing conditions or include other comprehensive benefits.
The new rules for short-term health insurance “limit the length of the initial contract term to no more than three months and the maximum coverage period to no more than four months.”

Temporary health insurance is not guaranteed to be issued. When you apply, you’ll be asked questions about your health history and could possibly be denied coverage, depending on your answers to those questions.

Who should consider short-term health insurance?

Temporary medical insurance is ideal for people who:

Need affordable health insurance for a short period of time.
Need temporary health insurance for unemployed periods of time.
Need to buy health insurance when leaving one job and starting a new one.
Are seasonal employees who need temporary health insurance.
Are college students who aged out of a parent’s policy.
Retired early and need coverage until their Medicare benefits begin.
Missed the Open Enrollment Period (OEP) and don’t qualify for a Special Enrollment Period (SEP).
Cannot afford, or do not want to purchase, COBRA insurance.

How do you apply for short-term health insurance?

Most short-term plans are easy to apply for and can be a helpful solution if you’re looking for medical insurance for a period of time. Here are a few things to keep in mind:

After applying, your medical history is reviewed. If you are approved for coverage, benefits can begin in as little as 24 hours in some cases.²
The premiums tend to be affordable.¹
However, the deductibles and other out-of-pocket expenses for short-term plans are usually more expensive than those for comprehensive ACA health plans.

Even if you get approved for short-term health insurance, you only get three months of coverage, and the maximum coverage period is no more than four months.

2. ACA Marketplace plans

Another option is to purchase a qualified health plan that meets the requirements of ACA Marketplace plans during a Special Enrollment Period (SEP).³

Generally, losing job-based benefits may make you eligible for an SEP, which allows you to purchase health benefits outside of the annual OEP.

How can I get individual health insurance?

You can get individual health insurance through a SEP.

An SEP gives you 60 days to enroll in a comprehensive health insurance plan — for you only, or you and your family — after a qualifying life event.
You can enroll as soon as your qualifying event occurs.

There are several qualifying life events that can make you eligible for an SEP, including:⁴

Job loss
Marriage
Divorce
Adopting/having a baby
Moving to a new ZIP code
Loss of employer-sponsored health coverage
Becoming a U.S. citizen

How much is health insurance without a job?

The cost of a health insurance plan without a job can vary. However, four out of five people who get health insurance through the Healthcare.gov Marketplace find plans for $10 or less per month after subsidies.⁵

When you begin shopping for an individual health insurance plan, you should pay special attention to premium tax credits and cost-sharing reductions.
If you qualify for them, subsidies can lower the cost of your monthly premiums and out-of-pocket expenses.

The two main types of subsidies are:

1. A premium tax credit

This is a type of subsidy that can help lower your monthly premiums, if you’re eligible.⁶
You can choose to have the credit paid directly to your health insurance provider to be applied toward your premium, or you can claim your premium amount when you file your income tax return.

2. A cost-sharing reduction (CSR)

This is also called “extra savings,” and is a type of subsidy that can help lower your out-of-pocket costs, including deductibles, copayments, and coinsurance.⁷
If you qualify, you have to enroll in a Silver plan to get the extra savings.

NOTE: You can check your eligibility for these subsidies online.

3. COBRA

COBRA (Consolidated Omnibus Budget Reconciliation Act) is a way to retain your employer-based health insurance after losing, or leaving, a job.⁸

This coverage can last up to 3 years, but you will be responsible for the total amount of your coverage.
This means you will have to pay your regular premium; plus the amount your company was previously covering.
Because of the expense, COBRA is generally not an ideal form of health insurance for unemployed individuals who are dealing with limited finances.

4. Medicaid and/or CHIP

Medicaid and CHIP (Children’s Health Insurance Program) are health insurance programs for low-income individuals who need health insurance coverage.⁹

Costs for these plans vary by state.
To be eligible for these programs, you will have to prove that you meet your state’s required income limitations.

5. Medicare

If you are 65 or older, or have a qualifying condition, Medicare may be a good long-term solution for unemployed medical insurance. Medicare has many parts, so we’ll briefly review the Medicare basics here.¹⁰

Original Medicare is Parts A and B.

Medicare Part A covers inpatient care, like hospital stays. Part A doesn’t have a premium for individuals who have paid taxes to Medicare for at least 10 years in total.
Medicare Part B covers outpatient care, like doctor visits. In 2024, standard Part B premiums are $174.70.¹¹
Medicare Part C, also known as Medicare Advantage, includes the same benefits as Parts A and B (Original Medicare). Medicare Advantage plans also may cover prescription drugs, dental, vision, and hearing services. Part C plans can have $0 premiums.¹²
Medicare Part D covers prescription drugs. For 2024, the estimated average Part D premium is $55.50. Because Original Medicare (Parts A and B) doesn’t cover prescription drugs, Part D may be needed.¹³
Medicare Supplement insurance, also known as Medigap, covers out-of-pocket expenses for Parts A and B. The premiums for Medicare Supplement plans vary greatly based on the benefits.

If you want help finding a Medicare plan that’s the right fit for your needs, take a look at your Medicare options online.

6. Spouse or parent’s health insurance plan

You may also be able to get health insurance through your spouse’s employer or your parent’s health plan.

If your spouse has coverage through their employer, it may be possible for you to be added to their plan outside the annual OEP. Ask your spouse to contact their company’s HR department to find out.
If you’re under age 26 and your parent’s health insurance plan covers dependents, you usually can be added to their plan. But you can only stay on it until you turn 26.

What can you do if you can’t afford health insurance?

Health insurance for unemployed individuals might seem unaffordable at first.

But these six options may get you coverage to protect your health and your bottom line until your circumstances change.

Before you go without health insurance, check out each of these options.

Get help: Health insurance for unemployed individuals

If you’re looking for health insurance, unemployment shouldn’t hinder your search.

We can help you find out if you’re eligible for an ACA subsidy. And if you’re looking for something else, we can also help you identify which type of health insurance will work best for your needs.

Just give us a call at (800) 827-9990 to talk with a licensed health insurance agent, or find a licensed insurance agent in your area.