What to Do When Your Health Insurance Plan Changes or Ends

Losing or changing your health insurance can feel overwhelming—especially if it’s unexpected. Whether it’s a job change, your insurer pulling out of the market, or your plan being discontinued, knowing what to do next is key to avoiding a gap in coverage and staying protected.

Here’s what to do when your health insurance situation changes in 2025—and how to find a new plan that works for you.

Common Reasons Health Insurance Changes or Ends

Health coverage doesn’t always stick around forever. Here are a few of the most common scenarios people face:

• Job loss or change (if you had employer-sponsored insurance)

• Insurer exits your state’s Marketplace

• Your plan is discontinued or merged with another

• Aging off a parent’s plan (at age 26)

• Divorce or legal separation

• Loss of Medicaid eligibility

• Turning 65 and moving to Medicare

The good news? Most of these trigger a Special Enrollment Period (SEP), which gives you a chance to sign up for new coverage outside of the usual Open Enrollment window.

Step 1: Understand Your Special Enrollment Rights

If your health insurance ends or changes due to a qualifying life event, you typically have 60 days from the date of the change to enroll in a new plan.

This SEP applies whether you’re switching from an employer plan, Marketplace coverage, or even Medicaid. During this time, you can:

• Enroll in a Marketplace plan

• Apply for Medicaid (if you qualify)

• Sign up for COBRA continuation (for employer plans)

• Join a spouse’s or parent’s insurance plan (if eligible)

Act fast—missing that 60-day window could leave you without coverage until the next Open Enrollment period.

Step 2: Compare Your Health Coverage Options

Your best next step depends on your situation and budget. Here’s a quick comparison of the main options:

Health Coverage Options After a Plan Ends

Step 3: Gather Key Information

Before you apply for a new plan, collect details about:

• Your most recent insurance coverage (plan name, end date)

• Estimated household income for the year (for subsidy eligibility)

• Social Security numbers for everyone needing coverage

• Any employer coverage options, if you recently left a job

This will help speed up the enrollment process and ensure you’re picking the right plan.

Step 4: Explore Marketplace Plans and Subsidies

If you’re losing job-based coverage or your insurer has left the market, the Marketplace is usually your best bet. Thanks to updated rules in 2025, many people qualify for premium subsidies—and even cost-sharing reductions—based on income.

Go to Healthcare.gov (or your state exchange) and:

• Compare plans by coverage level (Bronze, Silver, Gold, Platinum)

• See if you qualify for premium tax credits

• Check networks for your current doctors

• Look for telehealth and prescription coverage

You may even find a plan that offers better value than your previous one.

Step 5: Consider COBRA (But Read the Fine Print)

If you had employer-sponsored insurance, you might be offered COBRA continuation coverage. This lets you keep the same plan for up to 18 months (sometimes longer), but you’ll pay the full cost—plus a 2% administrative fee.

COBRA is worth considering if:

• You’re in the middle of treatment or pregnancy

• You’ve already met your deductible

• You need time to transition to a Marketplace plan

Otherwise, many people find COBRA too expensive and switch to a subsidized Marketplace option.

Step 6: Don’t Forget About Medicaid

If your income has dropped—say due to job loss or reduced hours—you may now qualify for Medicaid or your state’s version of the Children’s Health Insurance Program (CHIP). These programs offer:

• No monthly premiums

• Low or no out-of-pocket costs

• Comprehensive benefits including doctor visits, mental health care, and prescriptions

Enrollment is open year-round, and coverage can often begin immediately or retroactively.

Step 7: Check for Gaps in Coverage

If you’re between plans, make sure there’s no lapse in coverage. You can:

• Request retroactive start dates (in some Medicaid cases)

• Set your Marketplace plan to start the day after old coverage ends

• Use short-term insurance only as a temporary bridge (with caution)

Having continuous coverage is important to avoid high medical bills and to comply with state insurance rules (in states that still require it).

What If You Miss the Special Enrollment Window?

If you miss your SEP window, your options become limited. Here’s what you can do:

• Apply for Medicaid (if eligible)—it’s always open

• Look into short-term health insurance (varies by state)

• Wait for Open Enrollment, which typically starts in early November

You may also qualify for hardship exemptions or late enrollment waivers in certain situations, but these are rare.

Stay Proactive When Your Plan Changes

Plan changes happen. The key is to act quickly, understand your rights, and know what your next best coverage option is. With the right timing and information, you can move smoothly from one plan to the next without risking a gap in coverage—or an unexpected medical bill.

When in doubt, call your state’s Marketplace helpline or talk to a certified enrollment assister. They can help you sort through your choices and avoid costly mistakes.