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When Does Health Insurance Expire After Leaving My Job?

Did you know that although your health insurance coverage ends at a certain point after you leave a job that there is a federal law that may allow you to keep that coverage at a cost? There are 31 million American citizens that don’t have health coverage. So, if you are thinking about leaving your current role but you find yourself wondering; “when does health insurance expire after leaving a job”, then you might want to know a few things.

With the citizens without coverage making up 9.6% of the population in the U.S. and the average adult getting between two and four colds each year, it’s never been more important to learn about your options. Think about more than just a cold or the flu. Multiple people need insurance to sustain their health through an existing health condition or to cover a surgery they may need.

If you leave your job, your health insurance policy may expire. Depending on the timing of your departure and the insurer’s rules, you could be without coverage for a period of time. Here’s what you need to know so you won’t have any worries. 

Have You heard of COBRA?

COBRA is the Consolidated Omnibus Budget Reconciliation Act, and it’s a federal law that allows you to continue your health insurance for a limited time after leaving your job. You’re eligible for COBRA if you work for a company with 20 or more employees and you have a health plan through your employer. If you’re laid off, you’re also eligible, as are your spouse and dependent children.

If you qualify, you can stay on your employer’s health plan for up to 18 months (or 36 months in some cases). You’ll pay the entire premium yourself, plus a 2% administrative fee. COBRA can be expensive, but it might be worth the cost if you have a chronic health condition or you’re in the middle of treatment for an illness and you haven’t already found other options.

If you decide not to sign up for COBRA, you’ll still have to look for another health insurance plan. The thing is though, this is an opportunity that can buy you time until you find a policy that suits your needs and your budget.

What Else to Know About COBRA

You can buy an individual health insurance policy, join your spouse’s health plan (if they have coverage), or get coverage through the Health Insurance Marketplace or a state-based exchange. One of the most underrated options is private health insurance. This is actually a great option for companies that want to get custom plans for their workers.

This is because group options will allow you to make care more affordable and accessible for employees. As an individual, you might be eligible for a subsidy to help pay your premiums if you buy a Marketplace plan. To qualify, your income must be below 400% of the federal poverty level but over 100%.

So, as long as you’re within that 100%-400% percent range, you’d be eligible. The average amount per person in a household has changed per 2022 guidelines. It would be about $51,120 for an individual and $111,000 for a family of four.

Different Health Insurance 

There are more than 330 million people in the U.S. alone and there are various careers out there. With so many people having a variety of jobs, there are people wondering what their specific healthcare options might be in reference to what they do day to day. For example, if you’re a nanny, you might even be wondering what nanny health insurance is.

There are actually two choices that you would have for health insurance if you are a nanny. These two types of coverage would be through a qualified small employer, or through an individual coverage option.

The first is a qualified small employer health reimbursement arrangement or QSEHRA. The second is the individual coverage health reimbursement arrangement or ICHRA. They both work as they sound. One policy is given through an employer and the other you would acquire yourself.

The setup for both options is quite simple. This even goes for the individual coverage as you can acquire coverage on your own through seven simple steps.

When Does Health Insurance Expire After Leaving a Job

So, when does health insurance expire after leaving a job? Your health insurance coverage will usually end around 30 days after you quit. So, in short, you can expect your coverage to end by the close of that next month.

While this is often the standard, health insurance can remain active for around 60 days after termination. However, most health insurance providers do offer a grace period.

That grace period is usually 90 days. It will often depend on who your health insurance provider is. If you’re wondering if your provider honors that 90-day grace period, there are often two rules that are associated with this.

The first is whether or not you have a marketplace plan that is eligible for advance payments of any premium tax credit. The second would be if you already paid one month’s premium. That payment for the premium for that month would need to be during the benefit year.

Can You Extend Coverage?

If you plan to leave your job, you know that at some point your coverage will expire. Because of this, many people wonder if they can extend their insurance policies. While COBRA is an option, you can also buy a plan through the marketplace.

Whether you decide to quit your job, or you’re terminated by your employer, you would still be eligible for a special enrollment period. This means that you will be able to enroll for a policy at any time this happens so that you can have coverage for the rest of that year.

Open enrollment will usually run through January 15, however, oftentimes you should plan to make a decision on coverage before the start of the year so that enrollment does not close.

What if You Don’t Have Coverage?

If you don’t have coverage, we know that there are various other options to choose from based on need and budget. However, Medicaid and the Affordable Care Act (ACA) are also good options if you recently lost your health insurance.

There are millions of citizens that have lost their health insurance due to losing their jobs because of COVID-19. And because of this, many people are eligible for different forms of health insurance.

What Happens if I Decide Not to Get Coverage?

Keep in mind that health coverage isn’t always something that is meant for conditions that you have right now. Health insurance is meant to be a proactive measure.

Being covered if you experience an unexpected injury, a car accident, develop a condition that you hadn’t had before, or if you have dependents, can mean the difference between high and extensive medical bills, and having bills that might be more manageable, and in some cases, or for some policies, none at all.

Think about it this way, when it comes to uninsured healthcare, that cost on an annual basis for the American population equals out to be $35 billion. That is actually just shy of 3% of the entire national spending for healthcare services meant for personal usage.

Going back to the examples of unforeseen accidents, or illnesses, if something like this does occur and you are uninsured, this could end up affecting your credit in a poor way. This could also result in some people having to file for bankruptcy. Overall, it’s worth getting a policy of some sort to combat these issues and limit your chances of having to deal with things that could affect not only the care that you receive but the health of your finances

What Is a Beneficiary for Health Insurance?

You might be asking yourself, what is a beneficiary for health insurance? A beneficiary is just someone that you designate to receive benefits. The most relatable example of this is often life insurance.

The concept, however, is exactly the same for health insurance. In short, your beneficiary is someone that would be enrolled within your policy.

That person will receive any benefits that your policy offers in the form of paid claims. They could also receive these benefits through network negotiated rates. Speaking with a  health insurance consultant can also help to make sure your policy covers unexpected issues for your beneficiary. 

Prepare Without Worry 

If you find yourself wondering, “when does health insurance expire after leaving a job”, it might be in your best interest to check out insurance packages through The Insurance Stuff. By using our one-stop-shop platform, you can do more than browse through different healthcare policies.

You can also review car insurance options, find innovative solutions for yourself, or your business, or browse investment plans. If you’re ready to get the best insurance options, reach out to our team today for a free consultation

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