How to Manage Health Benefits When You Leave a Job

When you leave a job, there are usually some loose ends with your benefits that need to be tied up before your last day. Some perks end right away, but others continue after you leave or require you take some action to manage them wisely. No matter if you quit, are laid-off, or get fired, it’s important to understand your rights and options for getting the most out of your health benefits between jobs. In this post, I’ll review what happens with common health-related benefits once you’re no longer employed.

3 Health Benefits to Manage When Leaving a Job

The benefits you have at work vary depending on your industry, company size, and employer preferences. Once you know that you’ll be moving on, ask your human resources administrator about the health benefits you’re eligible for and how to access them after you leave.

Here’s what you should know about three health-related employee benefits when you’re no longer employed.

1. Health insurance

There’s no doubt that group health insurance is one of the most valuable benefits you can get as an employee. In general, your policy extends through the end of the month that you leave a job. For example, if your last day on the job is July 2, your health coverage will likely end at midnight on July 31.

Here are several options you may have to continue getting health coverage:

• Enrolling in a spouse’s health plan
• Enrolling in a parent’s health plan if you’re younger than age 26
• Getting free or low-cost health coverage through Medicaid if you have low income
• Getting free or low-cost coverage for young dependents through the Children’s Health Insurance Program (CHIP)
• Shopping for a plan in the government’s health insurance marketplace

Depending on your income, these options may be more affordable than opting for COBRA, which I’ll cover in a moment.

You can learn more and compare individual and family health plan prices on the marketplace by working with an insurance broker, using health insurance websites, or visiting healthcare.gov. If your income is below certain limits based on your family size, you’ll qualify for a federal subsidy, which reduces your healthcare premiums.

Open enrollment for marketplace health plans is limited to the last few weeks of the year. However, losing your group coverage at work is one of several life events that qualify you for a...

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