What are my step-by-step health insurance options in California immediately after being laid off from my job?
Your primary health insurance options after a layoff are continuing your employer's plan through COBRA, buying a new plan through Covered California, or enrolling in Medi-Cal. You must act within 60 days of losing your coverage to secure a new plan outside of COBRA.
Here are the steps to take to secure health coverage:
Step 1: Collect Your Documents
Immediately gather your notice of termination or layoff letter from your employer, your final pay stubs, and information on your expected monthly household income after the layoff. You will also receive a COBRA election notice from your former employer; keep this document.
Step 2: Evaluate Your COBRA Notice
Your former employer is required to send you a notice explaining your right to continue your health coverage under COBRA or Cal-COBRA. You have 60 days from the date of the notice to elect coverage. This option lets you keep your exact same plan, but you must pay the full premium, which can be very expensive.
Step 3: Investigate Covered California
Losing your job-based health insurance is a "qualifying life event" that creates a 60-day Special Enrollment Period. Go to the official website, www.coveredca.com, to shop for plans. Based on your new, lower household income, you may qualify for federal subsidies that significantly reduce your monthly premium.
Step 4: Check for Medi-Cal Eligibility
When you apply for a plan on the Covered California website, the system will automatically check if you are eligible for Medi-Cal based on your current monthly income. If your income is very low, you may qualify for this no-cost or low-cost state health program. You can also apply directly through your local county social services office.
Step 5: Compare Your Options and Enroll
Compare the monthly cost and benefits of COBRA against the plans available on Covered California and your potential Medi-Cal eligibility. Pay close attention to premiums, deductibles, and doctor networks. Once you decide, formally enroll in your chosen plan before the 60-day deadline passes.
Important considerations:
COBRA coverage is retroactive to the date you lost your plan, provided you elect and pay for it on time. This prevents a gap in coverage. If you miss the 60-day Special Enrollment window for Covered California, you cannot buy a plan until the next annual Open Enrollment period unless you have another qualifying life event.
Note:
Deadlines are strict and non-negotiable. Be sure to report your income accurately to Covered California, as you may have to repay subsidies if you under-report your earnings.
This is general information and does not constitute legal advice. For complex situations, consult with a qualified California attorney.
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Disclaimer:
This information is for general guidance only and should not be considered as legal advice. Please consult with a qualified attorney for specific legal matters.
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Updated: August 13, 2025
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