Ask the Health Insurance Expert
QI quit my job but was under the impression that my health insurance would continue since my premiums for the month had already been taken out of my check. To my dismay I was informed that my insurance was cancelled the day I quit. Is this right?
Employer-based health insurance varies on the end date when you are terminated or you quit. Some guidelines allow the coverage to continue through the end of the month, others call for coverage to end on the last day of employment (as in your case).
However, at this point in time you should be eligible for COBRA health insurance coverage.
Under COBRA, if you voluntarily resign from a job you’re entitled to continue your employer's group plan for up to 18 months at your own expense.
Your ex-employer’s benefits administrator should contact you or provide you with a packet explaining how to enroll in COBRA coverage. If you don’t want to wait for that to happen, I’d suggest being proactive and contacting the benefits administrator and ask about it.
If you find COBRA coverage too costly, you can shop the health insurance marketplace since losing your job-based health insurance coverage makes you eligible for a special enrollment period that generally lasts up to 60 days after the triggering event (quitting your job). See "Apply with a special enrollment period" for more information.
Knowing health insurance basics can help you maneuver through the new health insurance landscape.