Getting health insurance on a good day can be challenging, but finding health insurance while unemployed is just plain stressful. The double-hit of looking for a job and health insurance at once is not something we wish on anyone, but if you find yourself in this situation, don’t panic — you have options.

Health Insurance Plans for Unemployed

If you’re on the hunt health insurance plans for unemployed, you may be pleasantly surprised by how many options are available. Here are the health insurance plans for the unemployed:

Spouse or Parent Health Insurance: You have two options here. First, if you are under 26 years old and qualify, you can joining your parent’s health insurance plan; otherwise, you may join your spouse’s health insurance plan if you’re married. Just keep in mind sometimes, being on your parent’s or spouse’s health plan is expensive, so before you elect for this option, shop around!

Medicare: For individuals older than 65, if you have end-stage kidney disease or receive Social Security disability for over 26 months, you may be eligible for Medicare. There are many Medicare plans to choose from, but they always include Part A (hospital care) and Part B (medical care). You can also elect to purchase Part C, otherwise known as Medicare Advantage or Part D (prescription medication).

Short-Term Health Insurance: If you’re between jobs and need stopgap coverage, a quick solution is temporary health insurance, which provides coverage for up to 90 days (though you need to qualify for it). There are a few other considerations to keep in mind: this coverage is great for covering inpatient or outpatient; short-term coverage will not cover pre-existing conditions or other services like prenatal, mental health or preventative care; deductibles and out-of-pocket expenses are higher; and this coverage can begin in as little as 24 hours.

Medicaid or CHIP: Medicaid is a health insurance plan for low-income families; however, to be eligible, you must qualify. This means you must be 100%-400% below the federal poverty line — depending on your state. Medicaid makes health insurance more affordable by reducing monthly premiums, copays, deductibles and out-of-pocket expenses.

CHIP (Children’s Health Insurance Program) is another affordable low-income health plan for children under 19.

Marketplace: There is also the option for recently unemployed individuals or households to buy a health insurance plan through the Health Insurance Marketplace. You are eligible for a special enrollment period (60 days after losing your job) to access a Marketplace health plan if you are recently unemployed. In addition, Marketplace plans are ACA-compliant and offer many affordable plans, making this a great health insurance plan for the unemployed.

COBRA: Last but not least, a health insurance option for the unemployed is COBRA, which allows individuals to retain their employer-based health care coverage for up to 36 months after losing their job. However, the catch is it’s no longer sponsored, which means you have to pay 100% of the coverage instead of your employer paying for part of the coverage. 

Unemployed Health Insurance Best Practices

Although there is no right way to get health insurance while unemployed, we have a few suggestions to help you make the most of an undesirable situation.

1.     COBRA doesn’t have to be your first choice: It may be tempting to carry on with your employer group health insurance by choosing COBRA, but it can be expensive compared to other health plans.

2.     Check if you’re eligible for subsidies: While you’re investigating your coverage options, check to see if you’re eligible for federal subsidies.

3.     Don’t skip health insurance: You can’t predict when you may need medical care, and the last thing you need is hospital visit expenses while you’re in-between jobs. Don’t overlook the necessity of health insurance!

4.     Pass on catastrophic coverage: For individuals under 30, catastrophic coverage's affordable monthly premiums may entice you, but this coverage is not eligible for subsidies and is known for high out-of-pocket expenses.

5.     Check out ACA-compliant coverage: ACA marketplace plans are usually open for fall enrollment, but losing your job qualifies you for a special 60-day window. Rather than going with the employer-sponsored health insurance provided in your last job, why not research which health plan best suits your needs?

6.     Low premiums, high deductibles: When shopping around for ACA-compliant health insurance plans while unemployed, don’t be persuaded into buying the cheapest option as cheap premiums almost always mean higher deductibles.

Getting Health Insurance While Unemployed

It can be a nuisance to shop for health insurance while unemployed when you’d rather be job hunting. Luckily, you have many options available to you and 60 days to secure new health insurance. Take a deep breath, use these quick tips, and find the right plan for you.