How Much Time Do I Have to Get New Health Insurance When I Quit My Job?

One of prominent factor that weighs heavily in keeping people from quitting their jobs is health insurance. The thought of losing your health insurance may be frightening when you leave your employer. Thanks to a program called COBRA, the Consolidated Omnibus Budget Reconciliation Act, you can retain your insurance even after you quit.

Regular Coverage Stops

• When you have a job, most employers pay for your health insurance premiums for you. You may be required to pay a portion of the premiums for you and your family while the employer picks up the rest. Some employers pay for the coverage for a month or even a quarter, so there may be some cushion of lingering coverage even if you quit. Ask your employer how long your health insurance coverage is paid up through to see if the paid coverage will carry you for some period of time after quitting.

COBRA Continuation Coverage

• Once you quit your job, you also have the opportunity to elect to receive COBRA coverage. This is a program mandated by federal law that requires employers to allow employees to stay on their group health insurance plan on a temporary basis after they quit their job. When you quit your job, you will have 60 days from the time you receive your COBRA election notice from your employer to decide if you want to take COBRA coverage or pass on it.

Duration of Insurance Coverage

• Once you get on COBRA coverage, you can continue to receive coverage through your regular insurance plan for up to 18 months. This typically allow you plenty of time to find another job without having to buy a separate insurance plan. If you are disabled, you can get coverage for an even longer period of time. In this case, you can be covered by COBRA for an extra 11 months while you are searching for another job.

What Next

• Once you decide to get on COBRA, you have to start considering your next move. If you are looking for another job, you can potentially get on that company's group insurance plan when you are hired. It may take a few months of working for the new company before you become eligible for its health insurance plan. If you plan on becoming self-employed or staying out of work for a while, you might instead want to buy an individual health insurance plan.