What Happens to Your Health Insurance If You Lose Your Job?

Losing a job is hard—there’s uncertainty, financial pressure, and the sudden loss of routine. But one thing you don’t have to lose right away is your health insurance. Thanks to a federal law called COBRA (Consolidated Omnibus Budget Reconciliation Act), you may be able to keep your employer-sponsored health plan for a limited time after leaving your job.

🔹 Who Qualifies?If you were covered under your employer’s group health plan and lose your job—either voluntarily or involuntarily—you and your covered dependents may qualify for COBRA. This includes layoffs, resignations, and even reductions in work hours that cause you to lose eligibility.

🔹 How Does It Work?Under COBRA, you can continue the same coverage you had while employed, but now you’re responsible for paying the full premium—including the portion your employer used to cover. While this may seem expensive, it can be a crucial temporary solution while you transition to a new job or explore other health insurance options.

🔹 Why Consider It?Losing insurance coverage can leave you vulnerable. COBRA acts as a safety net, giving you more time to plan your next steps without losing access to doctors, prescriptions, or ongoing treatments.

That said, COBRA isn’t the only option available. If you're looking for more affordable health insurance or want to explore plans tailored for individuals or small businesses in New York, we can help.

At NY Small Health, we specialize in guiding you through all your post-employment coverage options. Call us at 516.358.3612 or email mail@nysmallhealth.com today for a free consultation.