What health insurance can I get if I'm laid off at 55, 60, or 62?

You have two main options until Medicare starts at 65: COBRA, which keeps your old job's plan for up to 18 months at the full premium plus a fee, or an ACA Marketplace plan you buy yourself, which often comes with an income-based subsidy. For most laid-off workers in their late 50s or 60s with low or middle income, a subsidized Marketplace plan is cheaper. COBRA mainly wins when your income is too high for any subsidy or you only need a short bridge.

How many years do I need to cover before Medicare if I'm laid off at 60?

Medicare starts at age 65, so a layoff at 60 means about 5 years to cover, a layoff at 55 means about 10 years, and a layoff at 62 means about 3 years. COBRA only lasts 18 months, so for anyone more than about a year and a half from 65, a Marketplace plan usually has to carry most of the bridge.

Does my severance affect my health insurance subsidy after a layoff?

Yes. Severance pay and state unemployment benefits both count as income (MAGI) that sets your Marketplace subsidy. A large severance can push your income over the 400%-of-poverty cliff for that year and wipe out the subsidy, which is exactly when COBRA can become competitive for a single year.

Why is health insurance more expensive when you're laid off at an older age?

ACA Marketplace premiums are age-rated. A plan can charge a 64-year-old up to three times what a 21-year-old pays for the same plan, and the base price climbs each year. So the same plan costs more at 62 than at 55, before any subsidy. A subsidy can still cap what you actually pay at a share of your income.

Health insurance if you're laid off at 55, 60, or 62

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.

Losing your job in your late 50s or early 60s is its own kind of stress. You are too young for Medicare but old enough that health insurance is pricey. The good news: you have options, and you do not have to decide today. But a clock is running, and your age changes the math. This page walks through it in plain words.

Compare COBRA vs Marketplace for your age →

Your two choices until Medicare

When a layoff ends your job-based plan, you have two main ways to stay covered until Medicare starts at 65.

One is COBRA. It keeps your old job's exact plan and doctors for up to 18 months. The catch is the price: you now pay the full premium yourself, plus a fee of up to 2%, because your old employer no longer chips in. The other is an ACA Marketplace plan (also called Obamacare). You buy it yourself in any state, and based on your income for the year, the government may pay part of the bill. That help is called a subsidy. COBRA never has a subsidy.

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

Your age decides how long the bridge is

COBRA only lasts 18 months. Medicare starts at 65. So unless you are within about a year and a half of 65, COBRA alone cannot carry you the whole way — a Marketplace plan usually has to cover most of the bridge. Here is how the gap looks by age:

Laid off at	Years to cover until Medicare	Can COBRA alone bridge it?
55	~10 years	No — COBRA covers ~18 months of it
60	~5 years	No — COBRA covers ~18 months of it
62	~3 years	No — but it gets you partway
63½ or older	~18 months or less	Yes — COBRA can reach Medicare

Laid off at 55

A layoff at 55 means about 10 years to cover — the longest bridge of the three. Your base premium starts lower than it will at 60 or 62 because you are younger, but you pay for many more years, including your early 60s when age-rated prices peak. Over a decade, a subsidized Marketplace plan almost always beats paying COBRA's full price (and COBRA runs out after 18 months anyway). The key lever is keeping your income steady and under the subsidy cliff year after year.

Laid off at 60

A layoff at 60 means about 5 years to cover. Your base premium is higher than at 55, but you pay for fewer years. This is the middle path. COBRA can be a useful short bridge if you expect a new job soon, but for a multi-year gap a subsidized Marketplace plan is usually far cheaper. Watch your income the year you are laid off — a big severance check can spike it.

Laid off at 62

A layoff at 62 means about 3 years to cover. Your base premium is the highest of the three because you are closest to the 3-to-1 age cap, but you have the fewest years to bridge. Some people pair this with starting Social Security at 62 — but remember that Social Security counts as income for your subsidy (all of it, even the untaxed part), which can reduce the help you get. Run both scenarios before you claim early.

Don't miss your 60-day windows

A layoff opens two separate 60-day clocks:

Marketplace Special Enrollment Period. Losing job-based coverage lets you buy a Marketplace plan within 60 days — you do not have to wait for open enrollment.
COBRA election. After your employer sends the election notice, you have 60 days to choose COBRA. It can be backdated to the day your coverage ended, so some people wait and only elect it if a medical bill comes up.

Mark both deadlines the day your coverage ends. Missing the Marketplace window can lock you out until the next open enrollment. See the full after-a-layoff guide for the step-by-step.

Watch your income — severance, unemployment, and the cliff

Your subsidy is based on your income for the whole year, not just what you earn after the layoff. Two things trip people up: severance pay and state unemployment benefits both count as income. So do IRA or 401(k) withdrawals and investment sales. Add it all up and that total is your MAGI — the number that sets your subsidy.

In 2026 this matters more than it has in years, because the enhanced subsidies expired at the end of 2025 and the hard 400%-of-poverty subsidy cliff is back. Earn one dollar over the line (about $62,600 for a single person) and your subsidy drops to $0. A large severance, a spouse's income, or cashing out stock can push you over. Run your real numbers before you assume you do or do not qualify.

When COBRA still makes sense after a layoff

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

Your income for the year is too high for any subsidy (often because of 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, or you are already close to 65.
You have already paid most of this year's deductible and want to keep that progress.

Outside of those cases, a subsidized Marketplace plan is usually cheaper over a multi-year bridge. The only way to know for sure is to compare both for your own age, income, household size, and state.

See your year-by-year cost to Medicare →

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