Best Health Insurance for Unemployed

Keep coverage when you lose your benefits

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If the financial stress of losing a job isn’t enough, you also face losing access to benefits you may have received from your employer such as health insurance. Without a reliable income source, paying for an individual health insurance plan may seem entirely unrealistic.

But it doesn’t have to be. There are many insurance options available to those facing unemployment, but you need to act fast. Losing your job qualifies you for a special enrollment period in the health insurance marketplace regulated by the U.S. government, but it lasts only 60 days. You also can purchase private health insurance that sometimes offers more flexibility than standard coverage. For example, short-term policies lasting up to one year are available in many states.

Of course, there’s always the option to elect COBRA coverage, which means paying the full cost of your former employer’s health insurance policy. However, COBRA premiums tend to be more expensive than other options.

To find the best health insurance for unemployment, we looked at policies from 30 insurance companies across the country. After thoroughly evaluating coverage options, pricing, flexibility, and benefits, we’ve identified the seven best providers to stay insured while you look for your next job.

The 7 Best Health Insurance for Unemployed of 2021

Best Health Insurance for Unemployed
Best Health Insurance for Unemployed

Best Overall : Sidecar Health


Sidecar Health

Sidecar Health

Sidecar Health Access Plan’s low-cost, no-commitment health insurance is flexible and affordable, making it the best overall for unemployed individuals.

Pros
  • Low monthly premiums

  • Visit any provider

  • Advanced digital tools

  • Enroll and cancel at any time

Cons
  • Exclusions such as maternity vary by state

  • Complicated claims process

  • Available in only 17 states

Sidecar Health, founded in 2018, is attempting to reinvent how to get health insurance coverage. Instead of showing an insurance card at your doctor’s office, Sidecar Health sends you a payment card that is used to pay for your visit in cash. Since you’re effectively paying out of pocket using the plan benefits, you can visit any doctor without being limited to a provider network. Unlike traditional insurance, you can sign up for coverage at any time; there are no open enrollment periods to worry about.

Plans can be purchased online or through the Sidecar Health smartphone app using a quick and easy application form. From there, you’re given the option to purchase one of three pre-configured policies or choose your own custom coverage. Standard plans come with a $0 deductible by default, but a custom plan allows you to set a deductible up to $1,000 to reduce monthly payments. In Texas, premiums start at $215 per month with a $0 deductible for a healthy 50-year-old adult, but it provides only $10,000 in annual coverage.

Sidecar is available only in Alabama, Arizona, Arkansas, Florida, Georgia, Indiana, Kentucky, Maryland, Michigan, Mississippi, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas, and Utah.

Unfortunately, Sidecar Health won’t be an option in some states if you or anyone in your family is expecting a child, as its maternity care rider isn’t available everywhere with its standard plan. However, maternity and newborn coverage is included with Sidecar's ACA plan.

You also should know that the process for getting care is a bit more tedious than you might be used to with standard health coverage. Your Sidecar Health card will cover only a set dollar amount for each treatment. Since each doctor sets their own out-of-pocket pricing, you’ll need to call around and ask for cost information before scheduling an appointment. Thankfully, the Sidecar Health smartphone app includes a price comparison tool that makes things a bit easier.

Plans referred to above are excepted benefit fixed indemnity insurance products marketed and administered by Sidecar Health Insurance Solutions, LLC and underwritten by Sirius America Insurance Company or United States Fire Insurance Company, depending on the state. As an excepted benefit plan, it does not provide comprehensive/major medical expenses coverage, minimum essential coverage, or essential health benefits. You cannot receive a subsidy (premium tax credit and/or cost-sharing reduction) under the ACA in connection with your purchase of such an excepted benefit fixed indemnity insurance plan. Also, the termination or loss of this policy does not entitle you to a special enrollment period to purchase a health benefit plan that qualifies as minimum essential coverage outside of an open enrollment period. Coverage and plan options may vary or may not be available in all states.

Best Short-Term Coverage : The IHC Group


The IHC Group

 The IHC Group

If you need to fill a temporary gap between employer-sponsored health insurance, The IHC Group’s short-term medical plans (STM) are the best way to stay covered for nearly a year.

Pros
  • Flexible terms up to 364 days

  • Includes $2 million in annual benefits

  • Options to add auxiliary coverage

Cons
  • High deductibles and copays

  • Not available in all states

If you’re currently unemployed but know you’ll have health insurance again in the next year, an STM plan may be the best option. The IHC Group offers short-term insurance that can be purchased with coverage effective the following day, making this company our best for short-term coverage. Just keep in mind that STM policies aren’t ACA-compliant, meaning federally mandated no-cost preventive care isn’t covered and you can be denied based on your medical history.

STM availability is regulated by state law, so coverage options vary depending on where you reside. It is currently unavailable in some states due to local regulations.

The IHC Group’s STM policies start between $50 and $100 for a 35-year-old adult in most states, and coverage can be purchased for dependents as well. You’ll also have the option to add coverage for dental, vision, prescriptions, and telehealth depending on your state with riders that start around $25 per month. Three deductibles are available in amounts of $2,500, $5,000, and $10,000, and there’s no option to change the default $2-million annual benefit.

Best Catastrophic Coverage : BlueCross BlueShield


BlueCross BlueShield

 BlueCross BlueShield

Blue Cross Blue Shield’s (BCBS) catastrophic policies are the best catastrophic coverage in our review because they're the most economical option for unemployed individuals who can’t afford standard health insurance.

Pros
  • Plans available in all 50 states

  • Offers a dedicated plan for adults younger than 30

  • Large provider network

Cons
  • Coverage options vary across 35 regional companies

  • High deductibles

Certain unemployed individuals qualify for low-cost catastrophic coverage, particularly those younger than 30 years old and some low-income households. If you fall into the former category, you may be interested in BCBS’s Young Adult plan, a policy designed for individuals ages 18 to 30 who otherwise could not afford insurance.

BCBS is divided into 35 independent companies across the United States, catastrophic coverage is offered under several different names depending on your region.

Policy terms also vary by location, but they all share the common characteristics of catastrophic insurance: low premiums, high deductibles, and free access to preventive medicine required by the Affordable Care Act.

Catastrophic policies offered by BCBS can be either HMOs or PPOs depending on the state, but even if you do need to stay in-network, know that the BCBS provider network is one of the largest in the country.

Best for Telehealth : Cigna


Cigna

 Cigna

All Cigna individual health insurance plans include free access to two of the largest virtual care networks in the United States, making Cigna our choice as best for telehealth.

Pros
  • Almost all individual plans include $0 virtual care.

  • Partners with two major telehealth networks

  • $25 monthly copay limit on insulin

  • Offers 24/7 customer service

  • Dental coverage starts at $19 per month.

Cons
  • Individual plans available in only 10 states.

  • Policies must begin on the first day of the month.

  • Higher-than-average premiums

Access to telehealth services can be a lifesaver for anyone dealing with unemployment. Virtual care saves you the time and cost of getting to a doctor’s office, and you also can get remote treatment for some minor ailments without having to pay for an in-person visit. Cigna includes $0 telehealth visits with all of its individual plans through partnerships with MDLive and Amwell, two of the largest telemedicine providers in the United States.

Virtual health visits aren’t the only advantage to purchasing health insurance from Cigna. In-house customer service is available 24 hours a day to answer questions and provide assistance. The company also places a $25 monthly out-of-pocket cost limit on insulin regardless of your coverage level.

Unfortunately, individual and family policies are available from Cigna in only 10 states, although dental insurance can be purchased anywhere in the U.S. for as little as $19 per month. While health insurance premiums depend on many different factors, Cigna was priced a bit above average when we compared sample quotes with competitors.

Best for Families : Oscar


Oscar

 Oscar

Oscar offers the best value for family health insurance that won’t eat up your savings fund while you’re unemployed.

Pros
  • Cap on family deductibles

  • Eligible for tax credits

  • Fully functional smartphone app

  • Free concierge and virtual visits

  • Pays up to $100 per year for step tracking

Cons
  • Limited to 18 states

  • Smaller provider network

  • Doesn’t pay for out-of-network care

When you become unemployed and lose company-sponsored health insurance, your dependents also will be dropped from coverage. Oscar offers a few options to help reduce costs for large families. The insurer’s plans are eligible for tax credits that can reduce your monthly premiums significantly if your income is less than four times the federal poverty level.

Policies also include a cap on family deductibles; your overall deductible will never exceed twice the individual deductible no matter how large your household is. For these reasons and more, we selected Oscar as best for families of all the providers we reviewed.

Coverage is easy to purchase online or by downloading the Oscar smartphone app, which includes a few additional perks. Use the app to get virtual care or contact the free concierge service staffed by experts who can help you schedule appointments and refill prescriptions. If you sync the app with your smartphone’s step counter, you’ll earn a dollar for every day that you meet your step goal, up to $100 per year.

While Oscar is rapidly expanding, coverage is available in only 18 states. You also may find that the provider network is smaller than what you had with your previous insurer. Note that Oscar does not pay for out-of-network visits except in emergencies, so if your current doctor isn’t listed, you’ll need to find a new provider.

Best With Dental : Ambetter


Ambetter

 Ambetter

Most Ambetter plans can be supplemented with dental insurance starting at just $12 per month, a better deal than any other insurer, and our choice as best with dental.

Pros
  • Dental coverage available with most plans for as little as $12

  • Offers a healthy living rewards program

  • Affordable premiums

  • 24/7 nurse advice line

  • $0 Virtual Teledoc visits

Cons
  • Lack of digital tools

  • Strict late payment terms

  • Limited to 25 states

Unemployed individuals often find themselves having to purchase separate dental insurance or forego it entirely. With Ambetter, you can add dental and vision coverage in some states. Coverage is ACA-compliant and can be purchased on the Marketplace. In our test markets, Ambetter was consistently among the three cheapest insurers.

In addition to low-cost dental coverage, some of the benefits you’ll enjoy with Ambetter include Virtual Teledoc visits, a 24-hour nurse advice line, and a healthy living rewards program (My Health Pays). Through the program, you’ll be rewarded for positive habits like getting a flu shot and watching educational videos. The rewards you earn have a dollar value that can be put toward your premiums or used to pay for utilities, rent, childcare, and more.

Like many health insurers, Ambetter offers coverage only in certain geographic areas, with 25 states currently served. The company’s digital tools also fall a bit short compared to competitors with a slightly outdated web portal and no mobile app. If you do sign up for a policy, make sure you can afford the premiums; the company has a strict late payment policy and will cancel your coverage if you fall more than 30 days behind.

Best Provider Network : UnitedHealthcare


UnitedHealthcare

 UnitedHealthcare

Thanks to UnitedHealthcare’s expansive provider network, you’ll never be far from the care you need.

Pros
  • Works with more than 1.3 million doctors and 6,000 hospitals

  • Good variety of plan types

  • Save by bundling coverage

  • No special enrollment period for some policies

Cons
  • Expensive premiums

  • Coverage available for a maximum of only three years

With UnitedHealthcare’s network of more than 1.3 million physicians and 6,000 hospitals in the U.S., there’s a good chance you won’t have to be concerned about your current doctor not accepting your new insurance. UnitedHealthcare offers short-term medical plans in every state and is the largest health insurance provider in the country, making it an easy choice for the best provider network in our review.

There are a dozen different individual and family UnitedHealthcare policies to choose from. Plans are geared toward those who are facing unemployment or simply don’t need insurance for an extended period of time. Full health coverage is available for a maximum term of only three years through the TriTerm program, a plan designed to offer a more prolonged solution than traditional short-term insurance. You may be able to get a discount by combining a health plan with supplemental coverage like dental or vision.

The only real downside to UnitedHealthcare is that premiums tend to be higher than competitors for most types of coverage. However, the company’s TriTerm plan may be cheaper than full health coverage while you’re looking for work and can be a great solution as long as you don’t need it for more than three years.

FAQs

How Do I Get Health Insurance If I Lose My Job?

There are many ways to get health insurance if you lose your job. The first is COBRA, which allows you to keep your previous employer's insurance plan but can be expensive. Becoming unemployed also qualifies you for a special enrollment period, which means you can purchase any new insurance policy for up to 60 days after you lose your job. In some states, short-term health coverage is an affordable option that can keep you insured for up to 364 days while you look for new work.

What Is COBRA Insurance and Is It Worth It?

The Consolidated Omnibus Budget Reconciliation Act, commonly known as COBRA, is a federally mandated program through which you can retain your employer's policy for up to 18 months. If you do elect COBRA coverage, be prepared to pay significantly higher monthly premiums; you’ll be required to cover the amount your employer was contributing plus a 2% administration fee. COBRA often isn’t worth it, as most unemployed individuals can find a much more affordable policy on the marketplace.

What Is the Cheapest Health Insurance?

Short-term and catastrophic coverage plans are usually the cheapest health insurance options for anyone who recently has lost their job. However, there are downsides to both. Short-term coverage lasts only for up to one year and is banned or restricted in some states. You’ll need to be younger than 30 years old or meet low-income requirements to qualify for catastrophic coverage, and even if you do, those low premiums come at the expense of high deductibles.

What Do You Do If You Don’t Have Health Insurance?

If you find yourself without health insurance and need medical attention, you should be prepared to pay full out-of-pocket costs for any treatment you receive. In case of an emergency, U.S. law prohibits hospitals from refusing treatment due to your financial situation. However, if you truly are unable to afford coverage, you should see if you qualify for insurance through Medicaid.

If you don’t meet Medicaid requirements, you should consider purchasing a low-cost catastrophic plan to protect you financially in case of serious injury or illness.

How We Chose the Best Health Insurance for the Unemployed

Our analysis looked at 30 health insurers nationwide to identify the best companies based on the benefits they offer to those facing unemployment. We chose insurers with widespread geographic representation who provide flexible policies geared toward individuals with short-term insurance needs. Since financial strain is a main concern during periods of unemployment, we weighed policy pricing heavily by comparing quotes from five sample markets. Finally, we evaluated accessibility to care, including the number of in-network providers and the availability of telehealth services.