I was laid off and don’t have any income. What are my health insurance coverage options?

I was laid off, and now do not have any income/insurance. What are my health insurance coverage options?

Depending on where you live, you're likely eligible for Medicaid during the time that you're without an income. And if you want to purchase a private health plan, losing your employer-sponsored insurance because you were laid off counts as a qualifying event, which gives you a special enrollment period that continues for 60 days from the date your old policy ended (even if you have the option to elect COBRA).

But as we'll discuss in a moment, you should understand the rules related to income-based Medicaid and Marketplace subsidies, to understand whether you're eligible for financial assistance with your coverage.

Since I was laid off, is Medicaid an option for me?

Medicaid may be an option for you, depending on where you live. If you’re in one of the 40 states that have expanded Medicaid as of 2025, coverage is available if your household income is up to 138% of the federal poverty level. (Above that level, Marketplace premium subsidies are available, ensuring that Marketplace enrollees do not have to pay more than 8.5% of their income for the benchmark plan; this applies at least through the end of 2025.)

If your state has not expanded Medicaid, eligibility is significantly more restricted, and Medicaid is generally not available to adults in those states who are non-disabled, under age 65, and not a parent/caretaker of a minor child. ¹ (Here are Medicaid eligibility guidelines for each state.) Contact your state Medicaid office or the Marketplace in your state to see if you could qualify for Medicaid until you get another job.

Assuming you're in a state that has expanded Medicaid, you'll qualify for Medicaid during the time that you have no income. You can then switch to a private plan in the Marketplace (with subsidies if you're eligible) or to an employer-sponsored plan if you get a job later in the year and your total annual income is going to end up being more than 138% of FPL. You'll have the opportunity to make that coverage change if and when your income picks up again.

Although Marketplace subsidy eligibility is always based on total annual household income (an ACA-specific calculation of MAGI), Medicaid eligibility can be based on current monthly income.² So even if your total income for the year will end up being above the Medicaid eligibility level — due to income you earned earlier in the year or income you might earn later in the year — you can qualify for Medicaid in most states if your currently monthly household income doesn't exceed 138% FPL.

Is short-term health insurance a good option if you've been laid off?

If you’re unable to afford an ACA-qualified plan while you’re between jobs, and you're not in a state where Medicaid is available, you might find yourself considering a short-term health insurance plan.

These temporary health insurance plans are not regulated by the ACA, so they still use medical underwriting, don’t cover pre-existing conditions, impose caps on benefits, don't have to cover preventive care, etc. But they're better than nothing and they're less expensive than an ACA-qualified plan for people who aren't subsidy-eligible (meaning anyone with household income below the federal poverty level in a state that hasn't expanded Medicaid).

But between Medicaid expansion in most states, Marketplace subsidies, and the fact that loss of an employer-sponsored health plan will trigger a Marketplace special enrollment period, very few people have to turn to short-term health insurance.

It's also important to note that as of September 2024, new short-term health plans cannot last for more than four months, including renewals. So while these plans are still available in most states as a stop-gap measure, they cannot be used as a long-term coverage solution.