Health Insurance After Layoff: COBRA vs ACA Marketplace vs Medicaid (Complete Guide)

Smiling woman on laptop getting health insurance

Introduction: Health Insurance Is One of the Most Critical Decisions After a Layoff

Losing employer health insurance creates immediate financial risk.

Medical emergencies without insurance can result in severe financial hardship.

Understanding your options allows you to maintain protection while minimizing costs.

Option 1: COBRA Coverage

COBRA allows continuation of employer health insurance.

Duration: Up to 18 months

Advantages:

  • Same coverage

  • Same doctors

  • No disruption

Disadvantages:

  • High cost

  • Full premium responsibility

Option 2: ACA Marketplace Plans

Marketplace plans offer flexible coverage options.

Advantages:

  • Income-based subsidies

  • Lower cost than COBRA

  • Wide plan selection

Disadvantages:

  • Different provider networks

Option 3: Medicaid

Medicaid is available for low-income individuals.

Advantages:

  • Very low cost

  • Comprehensive coverage

Eligibility varies by state.

Cost Comparison Example

COBRA: $900–$1,400/month
Marketplace: $100–$500/month
Medicaid: $0–$50/month

Marketplace plans are often the best balance.

How to Apply

Visit:

HealthCare.gov or your state marketplace.

Enrollment takes 30–60 minutes.

Conclusion

Maintaining health insurance protects your financial and physical well-being.

Evaluate all options carefully to select the most cost-effective solution.