Losing your employer-sponsored health insurance — whether through a layoff, resignation, reduction in hours, or employer plan discontinuation — qualifies you for a Special Enrollment Period (SEP). This 60-day window lets you enroll in a marketplace plan immediately, without waiting for Open Enrollment. Here’s what to do.
Step 1: Document the Date Your Coverage Ends
Your SEP typically starts the day you lose coverage (or sometimes the day you receive the qualifying event notice). For job-based coverage, this is usually the last day of the month in which your employment ended. Keep your coverage termination letter — you’ll need it to verify your SEP eligibility during enrollment.
Step 2: Decide Between COBRA and the Marketplace
You’ll be offered COBRA continuation, which keeps your existing employer plan at your full cost plus an administrative fee. For most people, marketplace plans with premium tax credits are significantly cheaper. Run both numbers before defaulting to COBRA out of familiarity — the savings can be $300–$1,000+ per month for families.
See our full comparison guide on COBRA vs. marketplace for details.
Step 3: Estimate Your New Income
If you’ve lost your job, your 2027 income will be different from what you earned before. The marketplace calculates your premium tax credit based on your projected annual income — including any severance, unemployment benefits, freelance income, or a new job’s salary once you land one. A lower income typically means more subsidies and lower net premiums.
Step 4: Shop Plans During Your SEP
Use your 60-day SEP window to compare all available marketplace plans. You’re not limited to any particular tier — compare Bronze, Silver, Gold options based on your expected healthcare needs and income.
Key things to check:
- After-subsidy monthly premium
- Whether your current providers are in-network
- Deductible and out-of-pocket maximum
- Drug formulary coverage for any prescriptions
Coverage Start Dates During SEPs
During an SEP triggered by loss of coverage, your new marketplace plan typically starts the first day of the month after you enroll — or, in some cases, retroactively to the date your prior coverage ended. Confirm the exact effective date before letting your old coverage lapse.
Don’t Panic — Just Act
Losing job-based coverage can feel stressful, but the marketplace gives you real options. Many people find that an ACA plan actually costs less than the employer-sponsored plan they were on — especially after factoring in premium tax credits. The key is acting promptly within your 60-day window and comparing your options carefully.
Lost job-based coverage and need to enroll quickly? Paul can walk you through your options same-day. Contact Paul at Garden State Benefits for a no-cost, no-obligation review of your 2027 options — he’s a licensed independent broker serving individuals and families across 26 states.