If you lose employer-sponsored health insurance, you have a number of options available to you, including the option to continue your current health coverage, enroll in your spouse’s health insurance plan, or purchase a policy in the individual market.

Some of the reasons you might lose employer-sponsored insurance, either as an employee or as a dependent, include:

• Termination of employment
• Reduction in work hours
• Employee becoming eligible for Medicare
• Death or retirement of the employee
• Divorce or legal separation
• Aging off of your parents’ health plan
• You’ve been covered under COBRA or state continuation and your continuation period is expiring

What you should know about your options:

• Depending on the reason you’re losing  your group health coverage, you may be eligible for nine to 36 months of continuation coverage. This may or may not be your best option.
• The loss of coverage that gives you the continuation option also triggers a HIPAA special enrollment opportunity, which allows you to enroll in your spouse’s plan if he or she has employer-sponsored coverage, as well as a  Marketplace special enrollment period, which allows you to purchase individual major medical coverage.
• In general, you should purchase a plan through the Marketplace (Healthcare.gov) if you qualify for a premium tax credit.
• If not, you should compare the costs and benefits of continuing your current coverage vs. enrolling in your spouse’s plan.
• If you will only be without coverage for a short period of time and would like to save some money, you might consider short-term coverage.
• You may also be eligible to set up a small group plan if you have a side business and file the appropriate tax forms.
• Only in limited circumstances should you purchase individual coverage outside of the Marketplace (off exchange), usually only if you:
  1. do not qualify for a premium tax credit,
  2. do not have a continuation option,
  3. do not have the option of joining your spouse’s plan,
  4. have a chronic medical condition or expect to be without employer-sponsored coverage for a long period of time,  and
  5. do not have a side business that would allow you to set up a small group plan.
• If you have a grandfathered individual plan and are losing coverage due to divorce or turning age 26, you can still keep the grandfathered coverage! We can work with you to have the carrier split the plan so you can have your own grandfathered policy.