Key takeaways:
If you have an employment-based insurance plan, coverage typically ends on your last day of work or the last day of the month in which you leave your job.
After leaving your job, you may be able to retain coverage through your employer’s health plan for 18 months or longer with COBRA — but this option is often costly.
Depending on your age, income, and other factors, you may be eligible for an Affordable Care Act (ACA) plan, Medicaid, or Medicare. Or you may be able to join a relative’s health plan.
Employment-based health insurance is the most common type of coverage for U.S. residents younger than age 65. That means quitting a job is likely to affect your insurance status.
If you don’t plan properly, you could have a gap in coverage. Without insurance, you could face high out-of-pocket costs for healthcare visits, prescription medications, and emergency services. If you choose to forgo coverage, this could result in delayed or avoided care and poorer health. On the other hand, proper planning could save you money and lead you to a health plan that’s a good fit for you and your family.
It’s important to know that you have options. If you intend to quit your job, keep reading to find out how to know to ensure that you continue to have access to health insurance.
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When you quit a job, what happens to your health insurance?
In most cases, employment-based health insurance ends when you quit your job, but this depends on the type of coverage. For example, if your employer had 20 or more workers and offered group health insurance, you may be eligible to enroll in COBRA insurance.
COBRA, or the Consolidated Omnibus Budget Reconciliation Act, is a federal law that protects workers and families from losing health coverage because of certain job and family changes. We’ll discuss the details of COBRA below.
Employment-based health insurance is the most common kind of coverage in the U.S. About 60% of U.S. residents under age 65 were covered by employment-based health insurance in 2025, according to KFF. These individuals had private health insurance provided by an employer or a union.
How long does health insurance last after quitting a job?
If you have employment-based insurance and you leave your job, your coverage usually ends on your last day of work or at the end of that month. The exact date depends on your health plan. If you’re retiring, you may have extended coverage.
It’s important to plan ahead and decide what you’re going to do about health insurance coverage before your last day at work. If you’re eligible for COBRA, you may be able to continue coverage under your employee health plan for 18 months or longer.
7 health insurance options to consider if you’re quitting your job
If you’re quitting your job, you have many options for alternative health insurance coverage. Here are seven to consider.
1. COBRA
If you qualify, COBRA lets you extend your employee insurance up to 18 months — or longer in some states, under certain conditions — after quitting your job. COBRA insurance can be costly because you have to pay your employer’s portion of your premium in addition to what you were already paying. Some states also let employers charge a 2% administrative fee.
Typically, you can continue coverage under COBRA if you worked for a private company with 20 or more employees. (This does not apply to jobs through the federal government or a religious organization.) If you have a spouse or partner and/or children covered by the plan, they are eligible for COBRA continuation coverage, even if you don’t sign up. Your former employer must give you at least 60 days from the date of your “election notice,” which alerts you to your options under COBRA, or from the date you lose coverage to enroll. Whichever date is later applies.
2. Affordable Care Act plans
The Affordable Care Act (ACA) marketplace offers a special enrollment period for people who have a qualifying life event, such as the loss of job-based health insurance. If you leave your job, the special enrollment period usually begins 60 days before you expect to lose coverage and ends 60 days after your insurance stops. Marketplace plans may be less costly than COBRA. Coverage options vary, so shop around.
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3. Medicare
If you are at least age 65 or have a long-term disability, you may qualify for Medicare. When you quit your job, there’s a special enrollment period that lasts 8 months from the day you end employment or lose your coverage — whichever happens first.
4. Medicaid
Did you have a low income while working? Did quitting your job reduce your family’s income? Depending on your financial status, you may qualify for low-cost health insurance from Medicaid. Medicaid has 56 distinct programs administered by states, territories, and Washington, D.C., so eligibility varies depending on where you live.
5. Partner’s plan
You may be able to join the health insurance plan of a spouse or partner when your coverage stops. If your spouse or partner has employer-based health insurance, their plan will have its own rules for enrollment. For details, check with the insurance plan or the human resources contact at your significant other’s employer.
6. Parent’s plan
If you are under age 26 and lose your job-based health insurance, a parent may be able to add you to their insurance plan as a dependent. If your parent has a job-based plan, you may be required to wait until the annual open enrollment period. If your parent has an ACA marketplace plan, you may qualify for a special enrollment period. Some plans even allow dependent coverage through or beyond the end of the year you turn 26.
7. Special plans
Short-term insurance with limited benefits can be a good solution while you’re between jobs. You may also consider alternative coverage options, such as fixed-indemnity, accident, high-deductible, and catastrophic insurance plans. If you’re enrolled in college, you may have access to a campus-based health insurance plan.
How do you choose a new health insurance plan after leaving a job?
When considering a new health plan, check the summary of benefits and coverage. Keep in mind the “three Ds”:
Doctors: If you want to continue seeing the same healthcare professionals, make sure they’re in your new plan’s network. You should also check that the hospitals and other facilities you prefer are in network.
Drugs: If you take prescription medications, check the plan’s formulary to make sure they are covered.
Diagnostics: If there are tests you’ll need to manage a chronic condition, check to see that those services are included in your new plan.
Making sure a plan covers your medications and health conditions
As mentioned, when you’re considering a new health insurance plan, you want to check the formulary. This is the plan’s list of covered medications, and it will also likely include tiers that can tell you about your cost-sharing requirements.
You can check the plan’s summary of benefits and coverage for information about:
Out-of-pocket limits
Copays and coinsurance for covered services
Pricing for visits to out-of-network healthcare professionals and facilities
What happens if I miss my ACA special enrollment period?
If you miss an ACA special enrollment period — which lasts from 60 days before to 60 days after a qualifying life event, such as leaving a job — you will have to wait until the annual open enrollment period to buy a marketplace plan.
ACA open enrollment periods in 2026
Starting in the fall of 2026 — for the 2027 coverage year — ACA open enrollment will become more uniform nationwide. HealthCare.gov will conduct ACA open enrollment from November 1 to December 15 annually.
If you use a state marketplace, the open enrollment period must:
Begin no later than November 1
End by December 31
Last no longer than 9 weeks
Are your insurance options different if you’re fired versus if you quit?
Whether you quit your job or get fired, there typically isn’t a difference in your insurance options. But you may be denied COBRA if you’re terminated for gross misconduct.
Your options may be slightly different if you retire from a job, because some employers and unions have special insurance coverage for retirees. Medicare offers some guidance on questions you should ask if you qualify for retiree coverage, which could function as supplemental insurance, similar to a Medigap plan. Medigap is supplemental insurance specifically for original Medicare enrollees.
Is an ACA plan less costly than COBRA?
ACA marketplace plans often cost less than COBRA for similar coverage, but not always.
Depending on your income, you may qualify for a premium subsidy that will decrease the monthly cost of your ACA insurance. Or you may opt for a premium tax credit on your annual tax return.
COBRA requires you to pay the full cost of your coverage. You continue to pay the monthly premium as you did while you were employed, and you also pay the amount your employer was contributing.
According to the KFF Employer Health Benefits 2025 Annual Survey, the average annual premium for employer-sponsored health insurance was $9,325 for individual coverage and $26,993 for family coverage that year. Those premiums came to about $777 a month for a single employee and $2,250 a month for a family. And whether your premium is more or less than the average, you’re responsible for the full amount under COBRA.
The monthly cost of your plan, however, may not be your only consideration. If you have met your deductible for the coverage year and have ongoing health issues, you may be better off paying for COBRA than switching to a new plan and having to meet a new deductible. That way, you can keep your care team and may pay little out of pocket for services, aside from your increased premium. Switching to another plan will reset all of your deductibles and may force you to find different healthcare professionals and in-network facilities, which may be detrimental to your physical and financial health.
Can you cancel COBRA midmonth?
COBRA is month-to-month coverage that can be canceled anytime. If you decide to cancel, it’s best to do so in writing. Once you stop the coverage, it cannot be reinstated.
It’s important to pay attention to timing if you intend to cancel COBRA. Before you end coverage, make sure you know when you will be eligible to sign up for your next plan. If you stop COBRA and want ACA or other group coverage, you may not be able to buy a plan outside an open enrollment period. Your COBRA coverage period needs to be exhausted for you to be eligible for an ACA special enrollment period.
Can your former employer cancel your COBRA coverage?
COBRA coverage can be canceled if you miss a premium payment and don’t send the money before the 30-day grace period ends. You may not be able to reinstate your coverage in this scenario.
Your coverage also depends on your former employer continuing to offer group health insurance. Or you could be terminated from a COBRA plan if you turn 65 and become eligible for Medicare.
What happens to your COBRA coverage if you get a new job?
COBRA coverage typically ends if you get a new job and your employer offers health insurance benefits. But this isn’t immediate or automatic. Typically, COBRA coverage ends when you sign up for insurance through your new job.
COBRA is designed to help you maintain insurance coverage during a transition period when you don’t have access to employer-sponsored health insurance. If you sign up for another employer’s health plan, it replaces your COBRA coverage. But this is a good thing. You will not have to pay the COBRA premiums or rely on your former employer’s plan for coverage if you sign up for health coverage with your new job.
What happens to your ACA plan if you get a new job?
Getting a new job may affect aspects of your ACA insurance, including:
Subsidies and tax credits: ACA subsidies and tax credits are based on income. Increased earnings from your new job may affect your premium subsidy — or tax credits — and raise your monthly costs for health insurance. To avoid a penalty, you should report income and job changes to your marketplace immediately.
Eligibility: You may no longer be eligible for ACA insurance once you have a job-based health insurance offer. If your new job does not offer group health insurance, you may remain eligible for an ACA plan.
Frequently asked questions
Yes, your human resources representative should be able to tell you your employment termination date and the date your health insurance coverage will or did end. These dates may not be the same.
Your insurance coverage should remain in force as long as you’re eligible for coverage and your premiums are paid. If you quit your job, your coverage could end on your termination date (your last day of employment) or at the end of that month.
You may be able to keep your employee health insurance when you retire. Sometimes, retiree benefits provide better coverage than Medicare. Or you may be able to combine your retiree benefits with your Medicare plan or another insurance plan. In this case, you can use your retiree health plan as a supplemental policy.
Yes, your human resources representative should be able to tell you your employment termination date and the date your health insurance coverage will or did end. These dates may not be the same.
Your insurance coverage should remain in force as long as you’re eligible for coverage and your premiums are paid. If you quit your job, your coverage could end on your termination date (your last day of employment) or at the end of that month.
You may be able to keep your employee health insurance when you retire. Sometimes, retiree benefits provide better coverage than Medicare. Or you may be able to combine your retiree benefits with your Medicare plan or another insurance plan. In this case, you can use your retiree health plan as a supplemental policy.
The bottom line
If you have employment-based insurance and intend to quit your job, it’s important to consider your future options for health coverage in advance. You may choose to extend your employer’s coverage and pay the full premium by enrolling in COBRA. Depending on your age, income, and other factors, you may be eligible for government-funded insurance options such as Medicare or Medicaid or a parent or partner’s plan. You may also choose a private plan through the Affordable Care Act (ACA) marketplace or a special or short-term plan with limited benefits.
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References
Claxton, G., et al. (2026). Employer-sponsored health insurance 101. KFF.
Healthcare.gov. (n.d.). Health coverage for retirees.
Healthcare.gov. (n.d.). How to pick a health insurance plan: Catastrophic health plans.
Healthcare.gov. (n.d.). People with coverage through a job: If you have job-based insurance.
Healthcare.gov. (n.d.). People with coverage through a job: If you lose your job-based insurance.
Healthcare.gov. (n.d.). Special enrollment opportunities: Special enrollment periods.
Healthcare.gov. (n.d.). Special enrollment period (SEP).
Healthcare.gov. (n.d.). Qualifying life event (QLE).
KFF. (2025). 2025 employer health benefits survey.
Medicare.gov. (n.d.). Retiree insurance & Medicare.
Medicare.gov. (n.d.). When does Medicare coverage start?
Norris, L. (2025). New federal rule brings immediate changes to marketplace enrollment. HealthInsurance.org.
U.S. Department of Labor. (n.d.). COBRA continuation coverage.
U.S. Department of Labor. (2022). An employee’s guide to health benefits under COBRA.
