Losing your job is stressful enough. Losing your health insurance at the same time makes it worse. The good news: getting laid off triggers a 60-day window to enroll in new coverage outside of open enrollment, and most people qualify for plans that cost far less than COBRA.
This guide covers every realistic option for 2026, with costs, income limits, and step-by-step instructions for each one.
Your 60-Day Window
When your employer-sponsored coverage ends because of a layoff or reduction in hours, federal law gives you a Special Enrollment Period (SEP) of 60 days. That clock starts the day your old coverage ends, not the day you were laid off.
During those 60 days you can enroll in:
- An ACA marketplace plan at healthcare.gov
- Medicaid, if your income qualifies
- COBRA continuation coverage
Miss the 60-day window and you will have to wait for the next Open Enrollment Period (November 1 through January 15) unless you have another qualifying life event.
Option 1: ACA Marketplace Plans
For most laid-off workers in 2026, the ACA marketplace is the strongest option. Because your income just dropped, your premium tax credit goes up, and many people find they can get solid coverage for $0 to $150 per month.
How Subsidies Work After a Layoff
ACA subsidies are based on your projected annual income for the current year, not your income before you lost your job. If you earned $60,000 in the first six months of the year and then got laid off, you estimate your total income for the full year, including any severance, unemployment benefits, and whatever you expect to earn for the rest of the year.
Unemployment benefits count as income for ACA subsidy calculations. Severance pay counts too. Factor both in when you estimate your annual income on healthcare.gov.
2026 ACA Subsidy Income Limits by Household Size
To qualify for premium tax credits in 2026, your projected household income must fall between 100% and 400% of the Federal Poverty Level (FPL). In states that expanded Medicaid, the floor is 138% FPL, because below that threshold you qualify for Medicaid instead.
2026 ACA Subsidy Income Range, Continental United States
| Household Size | 100% FPL (minimum) | 400% FPL (maximum) |
|---|
| 1 | $15,650 | $62,600 |
| 2 | $21,150 | $84,600 |
| 3 | $26,650 | $106,600 |
| 4 | $32,150 | $128,600 |
| 5 | $37,650 | $150,600 |
| 6 | $43,150 | $172,600 |
| 7 | $48,650 | $194,600 |
| 8 | $54,150 | $216,600 |
| Each additional | +$5,500 | +$22,000 |
Source: healthcare.gov / KFF.org, based on 2025 FPL guidelines used for 2026 coverage.
If your income falls below 100% FPL and you live in a state that did NOT expand Medicaid, you may fall into a coverage gap. See the Medicaid section below.
ACA Plan Tiers
| Metal Tier | Monthly Premium (with subsidy) | Best For |
|---|
| Bronze | Lowest, often $0 | Healthy adults who want catastrophic protection |
| Silver | Moderate | Most laid-off workers; cost-sharing reductions available at lower incomes |
| Gold | Higher | People who expect frequent medical visits |
| Platinum | Highest | Ongoing prescriptions or chronic conditions |
Silver plans are typically the best value after a layoff because they unlock cost-sharing reductions (CSRs) for households earning 100 to 250% FPL. CSRs lower your deductible and copays, not just your monthly premium.
Option 2: Medicaid
If your income after the layoff drops below roughly 138% FPL, and you live in a Medicaid expansion state, you likely qualify for Medicaid at no cost. That threshold in 2026 is approximately $22,025 per year for a single adult.
Medicaid enrollment is year-round. You do not need to wait for a special enrollment period.
Medicaid expansion states (as of 2026): 40 states plus Washington, D.C. have expanded Medicaid. The 10 states that have not expanded are Alabama, Florida, Georgia, Kansas, Mississippi, South Carolina, Tennessee, Texas, Wisconsin, and Wyoming. If you live in a non-expansion state and have low income but no dependents, your options are limited, since the ACA marketplace starts at 100% FPL.
Check your state's Medicaid agency directly or use the screener at CoveredUSA to find out what you qualify for in your state. Check your eligibility now at CoveredUSA. It takes 2 minutes.
Option 3: COBRA
COBRA lets you stay on your former employer's health plan for up to 18 months after leaving. The coverage is identical to what you had. The cost is the problem.
When you were employed, your employer was paying 70 to 80% of your premium. With COBRA, that subsidy disappears. You pay 102% of the full premium (both shares, plus a 2% admin fee).
Average COBRA costs in 2026:
- Individual coverage: approximately $584 per month
- Family coverage: $1,200 to $2,000 per month
COBRA makes sense in a narrow set of situations: you are in the middle of treatment with a specific provider network, you expect to be re-employed quickly (within 1 to 3 months), or you have already met a significant portion of your deductible for the year. For most laid-off workers, an ACA marketplace plan will cost significantly less.
You can elect COBRA and then switch to a marketplace plan later. You have 60 days from losing your job-based coverage to enroll on the marketplace. Electing COBRA does not eliminate your SEP window. If you choose COBRA and then drop it, losing COBRA is itself a qualifying event that opens another SEP.
Option 4: Spouse or Partner's Plan
If your spouse or domestic partner has employer-sponsored coverage, losing your own job-based coverage is a qualifying life event that lets them add you to their plan. They typically have 30 to 60 days from the date of your coverage loss to request the change through their HR department.
This is often the least expensive option if it is available to you.
Option 5: Short-Term Health Plans
Short-term plans are cheaper than COBRA but are not ACA-compliant. They do not have to cover pre-existing conditions, often exclude prescriptions and mental health, and cap total benefits. Federal rules limit these plans to 3 months (with some state variation). They are a gap-filler, not a substitute for real coverage.
How to Enroll in an ACA Marketplace Plan After a Layoff
- Gather your documents. You will need your Social Security number (and those of any household members you are enrolling), your layoff or termination date, your projected annual income for the current year, and any severance or unemployment income you expect to receive.
- Go to healthcare.gov (or your state's marketplace). Fourteen states run their own marketplaces: California (Covered California), Colorado, Connecticut, Idaho, Kentucky, Maine, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, and Washington.
- Create or log in to your account. If you already have a healthcare.gov account from a previous year, use the same login.
- Trigger your Special Enrollment Period. Select "I lost my job-based coverage" as your qualifying life event. Enter the date your old coverage ended.
- Enter your household and income information. Use your best estimate of income for the full calendar year, including unemployment benefits and any severance.
- Compare plans and select one. Filter by your preferred doctors and prescriptions. The plan comparison tool will show your estimated monthly premium after subsidies.
- Pay your first month's premium. Coverage typically starts the first day of the month after enrollment, or the first day of the following month depending on when in the month you enroll.
Documents you may need:
- Proof of job loss or coverage termination letter from your employer
- Social Security numbers for all household members
- Most recent pay stubs or a W-2 for income verification
- Bank account or card for first premium payment
- Names and NPI numbers of preferred doctors (to check network)
Common reasons marketplace applications get delayed or denied:
- Income estimate is inconsistent with prior tax returns (be prepared to explain)
- Missing Social Security numbers for household members
- Enrollment attempted after the 60-day window has closed
- Life event date entered incorrectly
- Application lists a prior address instead of current one
What If You Have No Income After the Layoff?
If your income for the year will be very low (below 100% FPL), the rules differ depending on your state:
- Expansion state: You likely qualify for Medicaid at $0 cost. Apply through your state's Medicaid agency or at healthcare.gov.
- Non-expansion state: You may fall into the coverage gap. You will not qualify for Medicaid, and ACA subsidies only start at 100% FPL. Your options include short-term plans, community health centers (which charge on a sliding scale), and waiting until your income rises enough to qualify.
Per HealthInsurance.org, people in non-expansion states with no income after a layoff may qualify for care at federally qualified health centers regardless of insurance status.
COBRA vs. ACA: Side-by-Side Comparison
| Factor | COBRA | ACA Marketplace |
|---|
| Monthly cost (individual) | ~$584/month | $0 to $300/month (with subsidies) |
| Provider network | Same as your old plan | Varies by plan selected |
| Pre-existing conditions | Covered | Covered |
| Enrollment window | 60 days from coverage loss | 60 days from coverage loss |
| Coverage start | Retroactive to coverage loss date | First of next month (usually) |
| Income-based discounts | None | Yes, premium tax credits |
| Duration | Up to 18 months | Year-round with annual renewal |
Frequently Asked Questions
How long do I have to get health insurance after being laid off?
You have 60 days from the date your employer-sponsored coverage ends to enroll in a new plan through the ACA marketplace or to elect COBRA. The 60-day window starts when coverage ends, not when you were laid off. If your last day was May 15 but your coverage ends May 31, your window runs through July 30.
Does severance pay affect my ACA subsidy?
Yes. Severance is treated as income for ACA subsidy calculations. Add your expected severance to your other projected income for the year when estimating your annual income on healthcare.gov. The higher your projected annual income, the smaller your subsidy will be.
Do unemployment benefits count as income for Medicaid or ACA?
For ACA subsidies, yes, unemployment benefits count as income. For Medicaid eligibility in most expansion states, unemployment benefits also count toward your income for MAGI-based eligibility. Enter your expected full-year unemployment amount when applying.
Can I keep my doctors if I switch to an ACA plan?
It depends on whether your doctors participate in the ACA plan's network. Before selecting a plan, use the plan's provider search tool or call your doctor's office to confirm they accept the specific plan. Healthcare.gov includes a provider lookup tool during plan comparison.
What if I miss the 60-day special enrollment window?
If you miss the 60-day window after your job loss, you will have to wait until the next Open Enrollment Period (November 1 through January 15 for coverage starting January 1). If you have another qualifying life event, such as getting married, having a baby, or moving to a new state, that triggers a new 60-day SEP.
Is COBRA ever the better choice?
COBRA makes sense if: you are in active treatment for a serious condition and need to stay with your current providers, you have already met most of your deductible for the year, or you expect to find a new job with benefits within 60 to 90 days. For most people, an ACA marketplace plan with subsidies will be cheaper and just as comprehensive.
What if my income is too low for ACA subsidies?
If your projected annual income falls below 100% FPL and you live in a Medicaid expansion state, apply for Medicaid instead. In non-expansion states, you may fall into a coverage gap. Community health centers operate on a sliding-fee scale and can provide primary care regardless of your insurance status. Find one at findahealthcenter.hrsa.gov.
How do I apply for Medicaid after losing my job?
Apply directly through your state's Medicaid agency or at healthcare.gov. Medicaid accepts applications year-round. You can also apply in person at your county social services office. Most expansion states will determine your eligibility within a few days of a complete application.
If you are not sure which program you qualify for, the free CoveredUSA screener walks you through the key questions in about 2 minutes and shows you which coverage options you are eligible for based on your income, household size, and state. Check your eligibility now at CoveredUSA. It takes 2 minutes.
