If you're thinking about leaving your job, one of the first questions is what happens to your health insurance. COBRA is usually available even if you quit.
Yes, in most cases
COBRA is triggered when employment ends or your hours are cut so far that you lose coverage. That includes resigning and being laid off. The main exception is being fired for gross misconduct. COBRA applies to employers with 20 or more employees. Some states, including Florida, have similar rules for smaller employers, so ask your HR department which one covers you.
The deadlines
- Your notice: after you leave, your employer and the plan administrator send an election notice, usually within a few weeks.
- Your election: you generally have at least 60 days from the date of the notice, or from the date your coverage ended if that's later, to decide.
- Your first payment: you generally have 45 days after electing to make it, and coverage goes back to the day your old plan ended.
Marketplace after you quit
Losing job-based coverage, including when you quit, opens a special enrollment period of about 60 days to buy a Marketplace plan. That window does not open if you voluntarily drop coverage while you're still employed. Premium help depends on your expected income, so a job change can change what you pay.
Before you quit
- Find out the date your coverage ends. Many plans end on the last day of the month you leave.
- Get the COBRA price in writing or ask HR for an estimate so you can compare it.
- Check your doctors and any treatment in progress. If you're mid-treatment or close to your out-of-pocket maximum, keeping COBRA for a few months can make sense.
- Look at a new plan's start date. Ideally it starts the day your old coverage ends so there's no gap.
If you want the numbers side by side, we can do that before your last day. See our page on COBRA alternatives, and read how much COBRA costs per month and COBRA vs. Marketplace vs. private PPO.
This article is general information, not a guarantee of coverage or pricing. Plan availability, benefits, and eligibility vary by state and individual. Some private plans are medically underwritten and do not include all ACA essential health benefits.