Quitting Your Job: How to Keep Health Coverage and Save Money

Quitting your job can be a stressful process, especially if you’re worried about losing your health insurance. But there are some things you can do to make the transition as smooth as possible.

When is the Best Time to Quit?

If you’re planning to quit your job, it’s important to know when your health insurance coverage will end. In most cases, your coverage will end on the last day of the month in which you quit. So if you quit on May 15th, your coverage will end on May 31st.

However, there are some exceptions to this rule. For example, if you’re laid off or fired, your coverage may end on the date you were terminated. And if you’re enrolled in COBRA, your coverage will end on the date you stop paying your premiums.

What are Your Options?

Once you know when your health insurance coverage will end, you can start to think about your options. You have a few different choices, including:

COBRA : COBRA is a federal law that allows you to continue your employer-sponsored health insurance for up to 18 months after you lose your job. However, COBRA can be expensive, so it’s important to weigh the costs and benefits before you decide if it’s right for you.

ACA Marketplace : The Affordable Care Act (ACA) created a marketplace where you can buy health insurance. You can compare plans and prices from different insurers, and you may be eligible for subsidies to help you pay for your premiums.

Medicaid : Medicaid is a government program that provides health insurance to low-income individuals and families. You may be eligible for Medicaid if you meet certain income requirements.

How to Save Money

No matter which option you choose, there are some things you can do to save money on your health insurance. Here are a few tips:

Shop around : Don’t just go with the first plan you see. Compare plans from different insurers and make sure you’re getting the best deal for your money.

Consider a high-deductible plan : High-deductible plans have lower premiums, but you’ll have to pay more out-of-pocket if you need care. If you’re healthy and don’t expect to need much medical care, a high-deductible plan could be a good option for you.

Use a Health Savings Account (HSA) : HSAs are tax-advantaged accounts that you can use to pay for qualified medical expenses. If you have a high-deductible plan, you can contribute to an HSA and save money on your taxes.

Quitting your job doesn’t have to mean losing your health insurance. By following these tips, you can make sure you have the coverage you need at a price you can afford.