Losing a job in Illinois starts a clock on your health coverage. Illinois runs its own state-based Marketplace, Get Covered Illinois (getcovered.illinois.gov), which replaced the federal healthcare.gov platform for Illinois residents beginning with the 2026 plan year. Job loss is a qualifying life event, so you can enroll outside Open Enrollment through a Marketplace SEP. The Special Enrollment Period (SEP) lets you report the loss up to 60 days before or up to 60 days after your employer coverage ends, and you will need a letter from your employer or insurer showing the coverage type and your last covered day. That date matters more than your last day of work, because many Illinois employers end coverage on the last day of the month. Illinois also operates Medicaid through the Department of Healthcare and Family Services (HFS) and All Kids, the state CHIP program for children. Both accept applications year-round through the Application for Benefits Eligibility (ABE) portal. Federal COBRA, which covers employers with 20 or more employees, remains an option but costs 102% of the full premium in 2026.
Illinois is a Medicaid expansion state, so Illinois Medicaid covers adults with household income up to 138% of the Federal Poverty Level (FPL). For 2026, that line is $22,025 for one person and $45,540 for a family of four, per the HHS ASPE 2026 Poverty Guidelines. Above that line, Marketplace premium tax credits apply up to 400% FPL ($63,840 for one person, $132,000 for a family of four in 2026), and the subsidy cliff returned on January 1, 2026 after the enhanced credits expired. Unemployment benefits from the Illinois Department of Employment Security (IDES) count as income for both programs, so build your projected 2026 income carefully. The Marketplace checks your estimate against federal tax and Social Security data, and a large mismatch can trigger a request for documents. If your household is near either line, apply through Get Covered Illinois or ABE and let the system screen every household member. See the Medicaid income limits and ACA income limits pages for the full 2026 tables by household size.
7 Steps to Get Coverage
Common Mistakes That Cost People Thousands
The costliest mistakes Illinoisans make after losing job-based coverage in 2026:
- Electing COBRA before checking Get Covered Illinois subsidies. COBRA at 102% of the full premium in 2026 is usually far more expensive than a subsidized Marketplace plan once your income drops.
- Reporting your old salary instead of projected 2026 income. Subsidies and Illinois Medicaid eligibility use what you expect to earn this year, including IDES unemployment benefits.
- Counting from your last day of work instead of your last day of coverage. The 60-day Marketplace SEP is measured from the coverage end date shown on your employer letter.
- Skipping the Medicaid screening when income is near 138% FPL. Illinois Medicaid is free and open year-round, so a household below $22,025 (one person, 2026) should claim it before paying for a Marketplace plan.
- Forgetting the children. All Kids covers children in households up to 318% FPL, and children can qualify even when the parents do not.
COBRA vs Get Covered Illinois vs Illinois Medicaid: Which Should You Choose in 2026?
Get Covered Illinois is the default first choice for most Illinois workers who lose employer coverage in 2026. Marketplace plans drop many enrollees to $0 to $300/mo after 2026 premium tax credits, and Silver plans add cost-sharing reductions that cut deductibles for incomes up to 250% FPL. The trade-off is network: Marketplace plans may use narrower provider networks than your former employer plan, so confirm your doctors and hospital before choosing. Plan selection also starts a new deductible and out-of-pocket maximum, which is capped by federal law at $10,600 for an individual in 2026.
Illinois Medicaid comes first when your projected 2026 income is at or below 138% FPL, because it is free, has no enrollment deadline, and rarely carries meaningful cost-sharing. COBRA preserves your exact plan and network at 102% of the full premium, typically $400 to $900/mo for one person and $1,200 to $2,800/mo for a family in 2026, so reserve it for ongoing treatment with an out-of-network specialist or a deductible you have already met this year. A spouse's employer plan often costs less than COBRA, and most employers offer a 30-day enrollment window after a spouse loses coverage. The decision sequence is: Illinois Medicaid if income qualifies, then a spouse's plan if cheaper, then Get Covered Illinois with subsidies, and COBRA last.
Illinois Medicaid and All Kids Eligibility After Losing Your Job in 2026
Illinois Medicaid, administered by the Department of Healthcare and Family Services (HFS), covers adults with household income at or below 138% FPL under the ACA expansion, which is $22,025 for one person and $45,540 for a family of four in 2026. Illinois is one of the 40 expansion states plus DC, so there is no coverage gap for low-income adults. Most Illinois Medicaid members receive care through HealthChoice Illinois managed care plans. Applications are accepted year-round through the ABE portal at abe.illinois.gov, at a local Department of Human Services office, or through Get Covered Illinois, which screens for Medicaid automatically. Federal rules allow Medicaid to cover medical bills from up to 3 months before the month of application when you were already eligible, so ask HFS about retroactive coverage if you have recent bills.
All Kids, Illinois's CHIP program, covers children under 19 in households with income up to 318% FPL, which is about $104,940 for a family of four in 2026. Children can qualify for All Kids even when a laid-off parent earns too much for Medicaid and should apply for a Marketplace plan instead. IDES unemployment benefits count as income for both programs. Whether your household lands in Medicaid, All Kids, or Marketplace subsidy territory depends on 2026 MAGI, so run the numbers using the household-size table below and the Federal Poverty Level guidance from HHS ASPE.
Illinois State Continuation Coverage Under 215 ILCS 5/367e
Illinois state continuation coverage, set by Section 367e of the Illinois Insurance Code (215 ILCS 5/367e), gives eligible employees of insured group health plans a separate right to keep group coverage after termination. Federal COBRA covers employers with 20 or more employees, while state continuation applies only to insured group policies regulated by Illinois, never to self-insured employer plans. Employees must have been continuously insured under the group policy for the 3 months before termination. Your employer must send written notice within 10 days of termination, and you must request continuation in writing within 30 days of the later of termination or notice, and in no event more than 60 days after termination. Continuation ends when you become eligible for Medicare or join another group plan. Ask your plan administrator whether your plan is insured or self-insured, and confirm the maximum duration with the Illinois Department of Insurance.
Documents Needed to Enroll in Get Covered Illinois After a Job Loss in 2026
Get Covered Illinois requires proof that your loss of employer coverage falls inside the 60-day Marketplace SEP. An employer notice or insurer letter showing your coverage type and last covered day is the core document. Pay stubs and an IDES benefit determination letter document projected 2026 income for the premium tax credit calculation. Social Security numbers and immigration documents (if applicable) verify identity for everyone applying. Prior-coverage records such as Form 1095-B or 1095-C, or a certificate of creditable coverage under Section 9831 (HIPAA), help confirm your coverage dates if the employer letter is delayed. Illinois Medicaid applications through ABE need similar income and identity documents but no qualifying life event proof.
- Employer notice or insurer letter showing coverage type and last covered day
- Recent pay stubs and IDES unemployment determination letter
- Social Security numbers for everyone applying
- Proof of Illinois residency (driver's license, lease, or utility bill)
Frequently Asked Questions
How long do I have to enroll in health insurance after losing my job in Illinois?
Illinois gives you a 60-day Marketplace SEP on Get Covered Illinois. You can report the loss of employer coverage up to 60 days before or up to 60 days after your last covered day. For example, if coverage ends October 31, 2026, your window runs September 1, 2026 through December 30, 2026. Enrolling before your last covered day starts the new plan November 1, 2026, while enrolling later starts it the first of the month after plan selection. Miss the window and you wait for Open Enrollment beginning November 1, 2026. Illinois Medicaid and All Kids have no deadline and accept applications year-round at abe.illinois.gov.
What documents do I need to prove my job loss to Get Covered Illinois?
Get Covered Illinois accepts one of three proofs of lost coverage: an employer notice or letter showing your coverage type and last covered day, a health insurer letter showing the coverage type and end date, or a notice of lost government program benefits. You also need income documents for the 2026 premium tax credit calculation, such as recent pay stubs or an IDES unemployment determination letter, plus Social Security numbers and proof of Illinois residency for everyone applying. Birth certificates help when adding dependent children. Upload the documents in your online account or call 1-866-311-1119 (TTY 711) for help from an enrollment counselor.
What if I miss the 60-day SEP window after losing my job in Illinois?
Missing the 60-day window means you cannot buy a Get Covered Illinois plan until Open Enrollment, which begins November 1, 2026 for 2027 coverage (confirm the closing date at getcovered.illinois.gov). Until then you would have no Marketplace coverage unless another qualifying life event occurs, such as marriage, birth, or a move. Illinois Medicaid and All Kids remain open year-round if your income qualifies. You can still elect COBRA inside its own 60-day election window, which runs separately from the Marketplace SEP. Short-term plans exist but are not ACA-compliant and can exclude pre-existing conditions.
Can I get retroactive coverage after losing my job in Illinois?
Marketplace coverage through Get Covered Illinois is not retroactive. If you enroll before your last covered day, the plan starts the first of the next month, which avoids a gap. If you enroll afterward, it starts the first of the month after plan selection. COBRA is retroactive: once you elect within the 60-day election window and pay the first premium, coverage reaches back to the day your employer plan ended. Illinois Medicaid may cover medical bills from up to 3 months before your application month under federal rules in 2026 if you were eligible then, so ask HFS about retroactive coverage.
What is the difference between COBRA and Get Covered Illinois after a job loss?
COBRA keeps your exact employer plan and network but costs 102% of the full premium in 2026, typically $400 to $900/mo for one person and $1,200 to $2,800/mo for a family, with an election window of 60 days. Get Covered Illinois offers new plans with 2026 premium tax credits that often cut the cost to $0 to $300/mo, but you may need to change doctors. Marketplace subsidies disappear above 400% FPL ($63,840 for one person in 2026). Choose COBRA mainly for ongoing treatment with a specific specialist or a deductible you have already met. Compare both on getcovered.illinois.gov before deciding.
What Illinois-specific rules apply after a job loss in 2026?
Illinois runs its own state-based Marketplace, Get Covered Illinois, starting with the 2026 plan year, so use getcovered.illinois.gov rather than healthcare.gov. Illinois Insurance Code Section 367e (215 ILCS 5/367e) also gives employees of insured group plans a state continuation right: request it in writing within 30 days of the later of termination or notice, and never more than 60 days after termination. Illinois Medicaid is run by HFS and applications go through the ABE portal. All Kids, the state CHIP program, covers children up to 318% FPL. IDES unemployment benefits count as income for all of these programs in 2026.
Do I qualify for Illinois Medicaid after losing my job?
You qualify for Illinois Medicaid if your projected 2026 household income is at or below 138% FPL: $22,025 for one person, $29,863 for two, $37,702 for three, and $45,540 for four. Illinois expanded Medicaid under the ACA, so adults qualify on income alone with no asset test. IDES unemployment benefits count as income. Apply year-round at abe.illinois.gov or through Get Covered Illinois, which screens for Medicaid automatically, then choose a HealthChoice Illinois managed care plan. If your income lands above the line, you move to Marketplace premium tax credits, which run up to 400% FPL ($63,840 for one person in 2026).
What happens to my children's coverage if I lose my job in Illinois?
Your children may qualify for All Kids, Illinois's CHIP program, which covers children under 19 in households with income up to 318% FPL, about $104,940 for a family of four in 2026. Children can qualify even when you earn too much for Illinois Medicaid yourself. All Kids has no 60-day deadline and accepts applications year-round through ABE or Get Covered Illinois. Above 318% FPL, add your children to your Get Covered Illinois plan during the Marketplace SEP, or keep them on COBRA or a spouse's employer plan if that costs less in 2026.
