When Does Your Insurance Stop if You're Fired?

Many people rely on group health insurance coverage to provide benefits when working for an employer. If you are fired from your job, one of your primary concerns should be what to do about your health insurance coverage. Your coverage should not end immediately when you get fired, and you will have some time to figure out what to do next.

Coverage End

• Typically, when you are fired from a job, your health insurance coverage will not end right away. Your employer typically has to pay for the premiums in advance. This means that you will at least be covered through the end of the month, if not the following month. When you are fired, you can ask your employer for the specifics on how your health insurance policy was paid for and when your coverage will expire.

COBRA

• When you are fired, one option that you may want to consider is using the Consolidated Omnibus Budget Reconciliation Act (COBRA). This is a provision that was set up by the government to help workers retain their health insurance coverage even after they lose their jobs. When you elect to get involved with COBRA, you can keep your health insurance coverage for up to 18 months after you lose your job, if necessary. This gives you some time to stay on your group health insurance policy while you are looking for another job with health benefits.

60-Day Rule

• When you lose your job, you have 60 days to determine whether you want to elect to be included in COBRA coverage. This allows you to essentially get two months of health insurance coverage without paying for them on the front end. If you have to use your insurance during this period, you are covered by your insurance company. If you do decide to move forward with COBRA, you will have to pay for those two months of coverage.

Other Options

• You also may be able to negotiate a severance package that includes health insurance premiums for a certain amount of time. In some cases, you also may be able to get on your spouse's health insurance plan. Another option to consider is to get an individual health insurance policy. This will require you to shop around on your own. You also may be able to use some money in your flexible spending account to pay for health insurance or for medical expenses.