Losing a job is stressful enough. Not knowing whether you’ll have health insurance next week makes it worse. So here’s the direct answer first.
In many cases, employer health coverage ends either on your last day or at the end of that month. After that, COBRA and Marketplace deadlines usually start running quickly. How long your insurance lasts after being laid off depends on your employer’s plan, so the first thing to do is find your exact coverage end date in writing.
I Just Got Laid Off. What Should I Check First?
The first few days matter because some deadlines start right away. A short checklist:
- Find your coverage end date: Check your separation paperwork or ask HR directly. Don’t assume you’re covered through the end of the month.
- Save every document: Your separation letter, benefits notices and COBRA election notice can help you compare options and prove you lost coverage.
- Note your deadlines: COBRA and Marketplace windows are often 60 days, while a spouse’s employer plan may have a shorter window.
- Compare options before defaulting to one: COBRA, Marketplace plans, Medicaid and another employer plan can cost very different amounts.
Different benefits can end on different dates, too. Your medical, dental, vision and life insurance may each stop at a different time. Check each one.
What Is COBRA?
COBRA is a federal law that lets many workers keep their employer health plan temporarily after leaving a job. The name stands for the Consolidated Omnibus Budget Reconciliation Act, but what you need to know is simpler: it may let you keep the coverage you already had. The U.S. Department of Labor explains the rules for workers.
The catch is the price. While you were employed, your company may have paid part of your premium. With COBRA, you generally pay the whole premium yourself, plus an administrative fee of up to 2%.
That fee is why people are often shocked by the bill. In 2025, the average employer plan cost $9,325 a year for single coverage and $26,993 a year for family coverage, according to KFF. That works out to about $777 a month for single coverage and about $2,249 a month for family coverage before any employer contribution.
COBRA generally applies to private-sector and state or local government group health plans with at least 20 employees. It doesn’t apply to plans sponsored by the federal government, churches or certain church-related organizations, though some states have similar “mini-COBRA” rules for smaller employers.
How Long Does COBRA Last?
For a layoff, COBRA continuation coverage usually lasts up to 18 months. Some situations, such as divorce, legal separation or a child aging off a parent’s plan, can extend coverage up to 36 months. But for a standard layoff, 18 months is the usual limit.
You have at least 60 days to decide whether to elect COBRA. The 60-day election period starts on the later of the date your plan provides the COBRA election notice or the date you’d otherwise lose coverage.
Your plan administrator generally must send a COBRA election notice within 14 days after the plan receives notice of the qualifying event. The notice should explain how to elect COBRA, when coverage would begin, how much it costs and where to send payments.
One useful detail: COBRA can be retroactive if you elect it and pay the required premiums. That means coverage may be able to go back to the day your old plan ended. The risk is that you may owe all back premiums before the coverage is active, so compare that cost carefully before relying on COBRA as a backup.
The Marketplace May Be Cheaper
Losing job-based coverage is a qualifying life event. That means you can buy a plan through the Health Insurance Marketplace outside the normal open enrollment period. You generally have 60 days from the date you lose job-based coverage to apply.
Marketplace savings are based on your estimated household income for the year. If your income dropped because of the layoff, you may qualify for premium tax credits or other savings that lower the monthly cost. A plan with a high monthly premium may cost much less after the credit, depending on your income, household size and where you live.
The tradeoff is that the network may differ from your old plan. If you have a doctor you want to keep or a prescription you rely on, check that they’re covered before you enroll.
Other Options Worth Checking
- A spouse’s or partner’s employer plan: If that plan lets you enroll, losing job-based coverage may open a special enrollment period outside open enrollment. You may have only 30 days from the date you lose coverage to request enrollment, so check quickly.
- Medicaid: If your income drops low enough, you may qualify. In states that expanded Medicaid, the income limit is generally about 138% of the federal poverty level, though rules vary by state. If you qualify, you can apply any time.
- Short-term plans: These may be available in some states and can cost less upfront, but they usually cover much less. Short-term plans are generally not subject to the same Affordable Care Act protections as Marketplace plans and may exclude pre-existing conditions or essential benefits. Read the exclusions carefully before relying on one.
Lo esencial
How long your insurance lasts after being laid off comes down to your employer’s plan and the choices you make soon after coverage ends. Coverage often ends on your last day or at month’s end. After that, COBRA, the Marketplace, a spouse’s or partner’s employer plan and Medicaid are the main options to compare.
Before your enrollment windows close, get your COBRA premium in writing and compare it with Marketplace estimates based on your updated income. For many people who have just lost income, a subsidized Marketplace plan may cost less than COBRA, but the best option depends on your doctors, prescriptions, household income and coverage needs.
