How long do I have to get health insurance after a layoff?

Losing job-based coverage opens a 60-day Special Enrollment Period to pick a Marketplace plan, and you also get 60 days to elect COBRA. COBRA can be backdated to the day your old plan ended. Missing the Marketplace window can lock you out until the next open enrollment.

Do severance and unemployment count toward my Marketplace subsidy?

Yes. Both severance pay and state unemployment benefits count as income for the year, which sets your Marketplace subsidy. That extra income can shrink your subsidy or push you over the 400%-of-poverty cliff, so include it when you estimate your cost.

When does COBRA still make sense after a layoff?

COBRA can be the right pick when your income for the year is too high for any subsidy (for example, a large severance), when you are mid-treatment and want to keep your exact doctors, when you only need a short bridge of a few weeks, or when you have already paid most of your deductible.

Health insurance after a layoff

Last reviewed June 6, 2026 — figures checked against official 2026 federal benchmarks (HHS poverty guidelines, IRS subsidy rules, CMS premium data). See our sources & methodology.

Did you just lose your job? Then you also lost your job's health plan, or you will soon. The good news: you have options, and you do not have to decide today. But there is a clock running. This page walks through your choices in plain words.

Compare COBRA vs Marketplace for your case →

Your two main choices

When you lose job-based coverage, you have two main ways to stay insured before a new job or Medicare.

One is COBRA. COBRA lets you keep your old job plan for up to 18 months. You keep the same doctors and the same network. But you now pay the full price, plus a small fee. Your old boss no longer pays their share. That is why the bill often jumps a lot from what you used to pay out of each paycheck.

The other is an ACA Marketplace plan. People also call this Obamacare. You can buy one in any state. Based on your income for the year, the government may help pay part of the bill. That help is called a subsidy. COBRA never has a subsidy.

The big idea: a subsidized Marketplace plan can cap what you pay based on your income, while COBRA charges the full plan price no matter what you earn.

You have 60 days to decide — do not miss it

Losing your job-based plan opens a special window to sign up for a Marketplace plan. This is called a Special Enrollment Period. You get 60 days from the day your coverage ends to pick a plan. You do not have to wait for the once-a-year open enrollment.

COBRA has its own clock too. Your employer must send you an election notice. You then have 60 days to choose COBRA. Here is a little-known part: COBRA can be backdated. If you elect within the window and pay, your coverage covers the gap from the day your old plan ended. So some people wait, stay healthy, and only elect COBRA if a medical bill comes up in those weeks. That is a gamble, but it is allowed.

Mark both 60-day deadlines on your calendar the day your coverage ends. Missing the Marketplace window can lock you out until the next open enrollment.

Severance and unemployment count as income

This part trips up many people. Your Marketplace subsidy is based on your income for the whole year. Two things you may get after a layoff both count toward that income:

Severance pay. A lump sum or continued paychecks from your old employer count as income.
Unemployment benefits. The weekly checks from the state count too. Many people forget this.

So your income for the year is not zero just because you stopped working. It is your wages so far this year, plus severance, plus unemployment, plus any other money like investment gains. That total is what sets your subsidy. If you guess too low when you apply, you may have to pay some help back at tax time.

The calculator adds your unemployment benefits into the income that decides your subsidy, so the estimate matches how the Marketplace really works.

How subsidies change the price

The lower your income for the year, the more help you can get. A subsidy can cap your premium at a share of your income. That can turn a scary base price into a number you can afford.

In 2026, the rules changed. The extra help from past years ended at the end of 2025. So 2026 uses the original sliding scale. The 400%-of-poverty income "cliff" is back. If your income goes over that line, you get no help at all. One dollar over can cost you thousands.

After a layoff your income for the year may be lower than usual, which can mean a bigger subsidy. But watch the cliff. A big severance check, a spouse's income, or cashing out stock can push you over the line and wipe out the help. Run your real numbers before you assume you do or do not qualify.

When COBRA still makes sense

COBRA is not always the loser. It can be the right pick when:

Your income for the year is too high for any Marketplace subsidy (for example, a large severance).
You are mid-treatment and want to keep your exact doctors and plan with no break.
You only need a short bridge — a few weeks until a new job's plan starts.
You have already paid most of your plan's deductible this year and want to keep that progress.

Outside of those cases, a subsidized Marketplace plan is often cheaper. The only way to know for sure is to compare both for your own income, age, and state.

How long until your next coverage?

How many years you need to cover depends on your plan. Some people expect a new job in a few months. Others are closer to 65 and want to bridge to Medicare. The cost is very different for a 3-month gap versus a 5-year bridge, because Marketplace premiums rise with age each year.

Your situation	Coverage you need
Expect a new job soon	A short bridge — months, not years
Career change or self-employed	1–3 years, maybe more
Laid off in your late 50s or 60s	Possibly all the way to Medicare at 65

The calculator lets you set how long you need coverage — 1 to 5 years, or all the way through Medicare at 65 — so the total matches your real plan.

Your true cost depends on your state, your age, your household size, and your income for the year. The only way to see your real number is to run it for your own case.

Compare COBRA vs Marketplace for your case →

Related guides

This is an estimate to help you plan, not insurance or tax advice. See the disclaimer.