Employer Terminates Health Insurance Without Notice, Now What?

What Happens if an Employer Terminates Health Insurance Without Notice?

If your employer cancels your health insurance without your knowledge, then don’t panic. There are several options open for you such as COBRA, benefits from your spouse's insurance plan, low-cost insurance from the market place and government health insurance

Let’s check out the answers to some similar frequently asked questions.

Am I eligible for COBRA if my employer stops offering health insurance?

Yes. If your employer stops offering health insurance but the company is still in business and you lose coverage as a result, you may be eligible for COBRA
In such instances, you can find a new health insurance policy. You can get one through the Marketplace available under the Affordable Care Act.

If I lose my job, will COBRA keep me insured?

Yes. You can keep the current health plan provided by your employer in case you are laid off under COBRA. Usually, you will have coverage for a maximum of 18 months.

Remember, buying health insurance through COBRA can be quite expensive. As long as you are working, your employer is most likely paying the premium.

Once you are out of work, you will need to pay the entire premium yourself. You will also end up paying administrative fees on top of the premium. `

If I lose my employer’s insurance, can I get benefits under my spouse’s insurance plan?

You might be able to get benefits under your spouse’s insurance plan if their employer sponsors the health insurance policy.

Employers allow policyholders to add a spouse or a child to a group health insurance package. This can be done during the first few weeks of the open enrolment period.

However, losing employer-sponsored health insurance qualifies as a life event that allows you to add yourself to your spouse's employer-sponsored plan outside of the open enrollment period.

It is highly suggested to check with the HR department at your spouse’s workplace.

If I lose my job or my employer cancels my insurance, can I buy health insurance coverage from the Marketplace?

Most likely, you can. The Marketplace is a convenient way to buy insurance online.

If you have lost your job or your employer cancels your insurance, you qualify for a special enrolment period. You may also qualify for a subsidy to help you buy insurance according to your income.

You can enroll and shop at www.healthcare.gov if you need help. You can also call the toll-free number to get your queries resolved. To find the closest location, visit www.localhelp.healthcare.gov.

Are there any government health insurance plans I may be eligible for?

Employer Canceled My Health Insurance without My Knowledge

Employer Canceled My Health Insurance without My Knowledge – Are there any government health insurance plans I may be eligible for

Yes, there are several government insurance plans you may qualify for if you lose your job or your employer cancels your insurance.

Some of the options you have are:

#1. Medicaid – If you have a low income, are pregnant, disabled, or meet specific eligibility criteria, you may qualify for Medicaid without needing to buy insurance.

To find out more, visit the insurance coverage finder at healthcare.gov. Also, you can choose to visit the Medicaid website directly at www.medicaid.gov.

#2. CHIP – The Children’s Health Insurance Program (CHIP) provides health coverage to eligible children, through both Medicaid and separate CHIP programs, based on parents’ income.

This means that if a family cannot afford private health insurance but make enough to be ineligible for Medicaid. Find out if you are eligible for this, as the rules depend on the specific state you reside in.

#3. Medicare – If you are over 65 years old, or are disabled, then you become eligible for Medicare coverage. This is a federal-sponsored health insurance program for seniors and people with disabilities.


If your employer cancels your health insurance or loses it because of being laid off, there are several options.

You can either choose to get on your spouse’s employer-sponsored insurance or buy affordable policies from the Marketplace.

See Also

Where Can I Go for Medical Care Without Insurance

Average Cost of Hernia Surgery Without Insurance

Gastric Bypass Without Insurance

Lap Band Surgery Cost Without Insurance

Weight Loss Surgery Cost Without Insurance

Health Insurance Without SSN

Current Version
May 2, 2022
Written By
Shubham Grover
March 24, 2024
Updated By
Andrea Morales G.

Follow us