 TITLE: How to Get Health Insurance When You’re Unemployed CONTENT: Choose COBRA Coverage\n---------------------\nUnder the Consolidated Omnibus Budget Reconciliation Act (COBRA), companies with 20 or more employees must offer former employees the option to keep their employer-provided health insurance for 18 months after terminating employment. In addition, many states have their own similar laws that apply to smaller employers. Within 14 days of losing or quitting your job, your employer must provide you with written notice of your COBRA rights explaining how COBRA works and how to decline it or elect to continue your health insurance.\nOnce you receive this notice, you generally have 60 days to accept COBRA coverage and 45 days after that to pay your first premium (the federal government has temporarily extended this time frame due to COVID-19). Once you pay your premium, your coverage takes effect retroactive to the date you lost your employer-provided health insurance policy.\nThe big advantage of COBRA coverage is its ease and continuity. You don't have to do a bunch of research and comparisons; you get to keep your doctors and enjoy all the same benefits. However, be ready for sticker shock, because your former employer may require you to pay the entire premium yourself. They may have totally or partly covered your premium while you were employed, but that park ended when you were separated from the company. Try negotiating with your former employer to have them continue paying their portion as part of your severance package. If your employer doesn't feel like footing your bill, however, they can charge you up to 102% of the premium costs (the 2% is an administrative fee). In 2019, the annual premium for an employer-sponsored family health insurance averaged $20,576—a steep bill at the best of times, but especially when you're unemployed.\nTaking advantage of COBRA while you're unemployed might make sense if:\n*   Your employer is paying part of the premiums.\n*   You've already paid a great deal toward your annual deductible and don't want to start over with a new health plan.\n*   You want to stay with your current plan and medical providers because you're pregnant, undergoing medical treatment or are in a similar long-term situation.\nChoosing COBRA coverage can limit your ability to buy a plan in the Health Insurance Marketplace later, so investigate Marketplace options before you make your decision. (More on the Marketplace below.)\nFor more details about COBRA, see The Department of Labor's publication An Employee's Guide to Health Benefits Under COBRA. END