How to Get Health Insurance Without a Job

Health insurance is important because it can help lower health care costs for individuals. Medical spending in the U.S. reached $4.5 trillion in 2022, which translates to an average of $13,493 per person.

If you’re unemployed, you may not have access to an affordable employer-sponsored plan. This can make it tough to find the right coverage. Below, we help you navigate through your options, including Obamacare and income-based government plans, and how to choose the best plan that suits your needs.

Health Insurance Marketplace Plans

If you’re unemployed, you may get health insurance under the Health Insurance Marketplace. The marketplace, which the federal government runs, can help you compare plans and choose the right one based on the cost, benefits, and coverage. Many states have their own insurance marketplaces, too.

Your income and household size may qualify you for savings through premium tax credits that reduce your monthly payments, or cost-sharing reductions that lower your out-of-pocket costs for care. You’ll have to fill out an application to determine your eligibility for any cost savings. Keep in mind that being unemployed doesn’t guarantee you any discounts.

Anyone can apply for coverage during the open enrollment period, which runs between Nov. 1 and Jan. 15:

• If you want your coverage to begin on Jan. 1, you must enroll by Dec. 15.
• Coverage begins on Feb. 1 if you enroll by Jan. 15.

But a job loss also qualifies you for a special enrollment period (outside open enrollment). Other life changes, such as marriage or divorce, also qualify for special enrollment periods.

COBRA

You may also qualify for health insurance through the Consolidated Omnibus Budget Reconciliation Act (COBRA). This is a federal law that requires employers with 20 or more employees to offer employer-sponsored health insurance for a certain period (usually 18 to 36 months) after a job loss, whether that’s voluntary or involuntary.

If you choose to continue coverage, you’ll get the same benefits that you had while you were on the job. Keep in mind, though, that although COBRA coverage can help if you experience a gap in health insurance, it isn’t always the most affordable option.

You are required to pay the full premium, which includes the employer portion, plus an administrative fee. In 2024, employers paid an average of 81% of an employee’s premium while the remaining 19% was covered by the employee. The average COBRA premium ranges between $400 and $700 plus a 2% fee.

Existing Family Member’s Plan

You may get health insurance coverage through a family member’s plan if you lose your job. Most plans allow family members to be added as long as they meet certain eligibility requirements. For instance, the primary insured individual may add a spouse or eligible dependent children, especially if they lose their coverage.

You can generally be added to someone else’s policy during open enrollment. If the window has passed, the primary insured individual must contact their insurer to see whether you can be added to their plan because of a qualifying event.

Income-based Government Programs

Unemployed individuals may qualify for income-based government programs, including Medicaid and the Children’s Health Insurance Program (CHIP). Both programs offer coverage to 77.9 million people.

• Medicaid is a joint healthcare program between the federal and state governments. The program is designed for families (parents and children) with low incomes, pregnant women, people living with disabilities, and people over 65. You may also qualify in most states if you are under 65 if your income falls under 133% of the federal poverty line (FPL). You must also live in the state where you receive coverage.
• CHIP is designed for children whose (higher) family incomes disqualify them for Medicaid. It also provides coverage for pregnant women in some states.

You can apply for both programs through the marketplace or your state’s Medicaid website.

Private Insurance

Private or commercial health insurance can be through an employer, but you can also purchase it directly from an insurance company or through an insurance agent. This means you’ll have to shop around to find the plan and coverage that works for you.

Most plans are organized as preferred provider organizations (PPOs) or health maintenance organizations (HMOs). To keep your coverage, you must pay your monthly premiums. The cost depends on the type of plan and where you live. Keep in mind that your costs can be higher if you purchase coverage through the insurer without any employer or marketplace discounts.

Short-Term Health Insurance

If you have no other insurance options, you may want to get a bare-bones short-term health insurance plan. These plans are intended to provide coverage for a short time. Their premiums are relatively low, but coverage is very limited compared to a traditional health insurance plan. You can be denied coverage for preexisting conditions, for instance.

How to Choose the Best Insurance When You’re Unemployed

There are certain things you’ll have to consider as you wade through the process of trying to get health insurance while you’re unemployed. Although many of these factors may be the same as when you’re employed, you’ll have to consider the overall cost as you compare plans.

Cost

Affordability often plays a big role in how people choose their health insurance. This includes:

• Your monthly premiums: This is the amount that you pay your insurer to keep your health insurance:
• Out-of-pocket costs: You pay these in addition to your premium. Examples include co-pays and coinsurance.
• Deductibles: Your insurer sets the maximum you must pay out of pocket before the plan starts paying for eligible costs.
• Out-of-pocket maximum: This is the total amount you pay for covered services before the plan covers your eligible costs.

Plans bought through a state or federal marketplace are categorized by metal names. In general, if you have a low premium, you’ll pay more when you visit a doctor or get care. Bronze plans tend to have low premiums but high costs when you need coverage. Silver plans are mid-range, while gold plans have high premiums, low deductibles, and low costs when you need to get medical care. Platinum plans have the highest premiums, very low deductibles, and low costs.

Benefits and Coverage

Once you’ve determined how much you can afford, review the benefits and coverage any plan offers to see if they fit your needs and budget. You can find this information under each plan’s summary of benefits and coverage. This is important if you have a chronic condition, such as diabetes, cancer, or Crohn’s disease, because some costs that apply to you may or may not be covered.

Network

If you already have an established relationship with your medical providers, you’ll want to choose a plan that already has them in the network. Doing so can help you save money. If your doctor is out of the network, they don’t accept your insurance. This means you may be charged the full cost of a visit.

The Best Health Insurance Companies

Having trouble picking a plan that’s right for you? Investopedia researched health insurance companies to help you navigate your options. We’ve highlighted the best insurers from the marketplace and those that offer short-term coverage below.

Best Health Insurance Companies for Marketplace Plans

The following topped Investopedia’s list of best health insurers for plans on the marketplace:

• Kaiser Permanente: This insurer was at the top of the list and offers the best options for self-employed individuals.
• UnitedHealthcare: Consider this insurer if you want a wide variety of plans.
• Aetna: Aetna provides great options for people with chronic conditions and has the fewest complaints of most insurers.
• Molina Healthcare: Plans from Molina tend to be the most affordable on the marketplace.

Best Short-Term Health Insurance

If you’re looking for short-term insurance, consider the following:

The Bottom Line

Losing your job doesn’t just mean that you lose your income stream. It also affects your health insurance. COBRA can be expensive, but there are other more affordable options to get coverage. Plans are available through the marketplace or directly through private insurers. You may also qualify for Medicaid or may be eligible to be added on to a family member’s plan. Regardless of the option, make sure it makes financial sense for you and gives you the coverage you need.

How We Chose the Best Health Insurance Companies

Investopedia’s rankings of the best health insurance companies are based on our independent research into nine providers offering plans through federal and state marketplaces. We evaluated costs, customer satisfaction, plan benefits, and medical management programs. 

We analyzed market share, enrollment trends, and availability to select the nine companies in our review. Investopedia’s research for this ranking was conducted from Oct. 24 to Nov. 8, 2024. We collected data from HealthCare.gov, state marketplaces, the National Association of Insurance Commissioners, and directly from each company.

After verifying this data with primary sources, we used it to create our scoring model to evaluate each company, based on the following weights:

• Customer Satisfaction: 20%
• Availability: 10%
• Plan Types: 11%
• Plan Benefits: 2%
• Medical Management Programs: 5%
• Federal Marketplace Cost Data: 26%
• State Marketplace Cost Data: 26%

Read our full methodology for reviewing health insurance providers.