What happens to your health insurance if you quit your job?

What happens to your health insurance if you quit your job?

When you quit a job, one of the things you may be wondering about is what happens to your health insurance. Health insurance is an important benefit that many employers offer, and understandably, you want to ensure you’re covered even after you leave your job. Here’s what you need to know about what happens to your health insurance when you quit a job.

Employer-Sponsored Health Insurance

Most employers offer health insurance as a benefit to their employees. This type of health insurance is known as employer-sponsored health insurance. When you have employer-sponsored health insurance, your employer pays part of the cost of your insurance, and you pay the rest through deductions from your paycheck. This type of insurance is often more affordable than buying insurance on your own.

When you quit your job

When you quit your job, employer-sponsored health insurance typically ends when you stop working. Some employers may offer coverage until the end of the month you work your last day, but this is not a requirement. It’s important to check with your employer to determine when your coverage will end.

COBRA

If you’re worried about losing your health insurance coverage when you quit your job, you may be able to continue your coverage through a program called COBRA. COBRA stands for Consolidated Omnibus Budget Reconciliation Act, allowing you to continue your health insurance coverage for a limited time after you leave your job.

To be eligible for COBRA, you must have employer-sponsored health insurance, and your employer must have at least 20 employees. If you’re eligible, you can continue your health insurance coverage for up to 18 months after you leave your job. You will be responsible for paying the full cost of your insurance, including the part your employer used to pay.

Marketplace Insurance

If you’re not eligible for COBRA or need coverage for a longer period, you may be able to buy insurance on the marketplace. The marketplace is a website where you can compare and buy health insurance plans. Depending on your income, you may be eligible for financial assistance to help you pay for your insurance.

To buy insurance on the marketplace, you’ll need to sign up during the open enrollment period or a special enrollment period if you have a qualifying life event, such as losing your job. You can visit healthcare.gov to learn more about the marketplace and to sign up for insurance.