Lost your job? Your health insurance options in Texas

Reviewed for 2027 We checked this article against HealthCare.gov, U.S. Department of Labor and IRS guidance in October 2026 for 2027 coverage. Open enrollment for 2027 Marketplace coverage runs November 1, 2026 to January 15, 2027. If a rule changes, we'll update this box.

A layoff gives you a lot to deal with at once: a final paycheck, a severance agreement, maybe a 401(k) rollover. Health insurance tends to get pushed down the list until a letter shows up with a COBRA premium on it, and the number is often a shock.

You have more choices than that letter suggests, and the order you check them in matters. Here's how we take Texas clients through it.

First: find your exact coverage end date

Before comparing anything, ask HR or your benefits portal one question: what is the last day my health coverage is active? Some plans end on your last day of work. Many run to the end of that month. That date sets every deadline below, and it tells you how much time you have before you need something new.

While you're asking, get three more things:

• The COBRA election notice, or the date it will be mailed
• Your current plan's summary of benefits, so you have something to compare against
• A list of your prescriptions, doctors and any planned care (a surgery, a pregnancy, ongoing therapy)

Option 1: A private health plan

We start here because it's the option most people don't know about. A private plan is individual coverage you buy directly, not through an employer or the federal Marketplace. You can often apply for one at any time of year, without waiting for open enrollment or proving a qualifying event.

Who it tends to fit: people in reasonably good health who want a plan built around their own doctors, and anyone whose household income is high enough that Marketplace savings would be small or nothing. For someone paying full price, a private plan is usually the first comparison worth making.

What to watch: private plans don't all follow the same rules as Marketplace plans. Depending on the plan, you may answer health questions, and some plans limit or exclude pre-existing conditions, cap certain benefits, or leave out maternity or mental health care. None of that is a reason to rule them out. It's a reason to read the plan with someone who knows where those details sit. We put the exclusions next to the price so you're comparing the full picture, not a monthly premium on its own.

Timing tip: private plans are available year-round. Start dates vary by plan, but coverage usually begins the first of the following month, so ask Jeff about timing before your work coverage ends.

Option 2: COBRA

COBRA is a federal law that lets you keep your exact employer plan after you leave: same insurer, same doctors, same deductible progress. It generally applies to employers with 20 or more employees.

What you need to know:

• How long it lasts: when the reason is job loss or reduced hours, COBRA generally lasts up to 18 months.
• How long you have to decide: you get at least 60 days to elect COBRA, counted from the later of your coverage end date or the date the election notice is provided.
• It's retroactive: if you elect within that window and pay the premium, coverage goes back to the day your plan ended. This means you can wait and see during the election window, and if something happens, you can still elect and be covered.
• What it costs: your employer usually stops paying its share, so you pay the full premium, and the plan can add up to a 2% administrative fee. That's why the number in the letter is so much higher than what came out of your paycheck.

When COBRA makes sense: you've already met most of this year's deductible, you're mid-treatment with doctors you can't switch away from, or you only need a bridge of a few months until a new employer plan starts.

When it usually doesn't: you're healthy, the year is young, and that premium is coming out of savings. In that case, compare it side by side with a private plan before you sign anything.

One trap: if you start COBRA and later drop it on purpose or stop paying, that usually doesn't qualify you for a Special Enrollment Period on the Marketplace. Your next chance there would be open enrollment. Losing your job does qualify, so decide which way you're going while that window is open.

Option 3: Joining a spouse's plan

If your spouse has coverage through work, losing your job generally lets you join their plan mid-year. Employer plans have to offer a special enrollment window of at least 30 days after you lose other coverage. That's shorter than the other deadlines here, so put this one at the top of your calendar.

Your spouse should ask their HR team two questions:

1. What would it cost each month to add me (and our kids, if needed)?
2. Is there a "spousal surcharge" if I could get coverage elsewhere?

A spouse's plan is often the cheapest option, but not always. Adding a spouse can raise the premium a lot, and if the network doesn't include your doctors, the savings don't help much. We compare it against a private plan for the same household so you can see both numbers.

Option 4: The Marketplace as a fallback

The federal Marketplace at HealthCare.gov is what Texas uses, and it's a real safety net. Marketplace plans can't turn you down or charge more because of a pre-existing condition, and if your income drops, you may qualify for a tax credit that lowers your premium.

Losing job-based coverage opens a Special Enrollment Period. You generally have 60 days after your coverage ends to enroll, and you can also report the loss up to 60 days before it happens so the new plan starts right away.

When it's the right call: someone in the household has a health condition that a private plan would exclude or price heavily, or your income for the year will be low enough that a tax credit changes the math. Your tax credit is based on your estimated income for the whole year, including what you earned before the layoff and any severance. Estimate carefully. If your income ends up higher, you may have to pay some of the credit back when you file.

We help clients enroll in Marketplace plans too. We just don't think it should be the only option you look at.

The deadlines on one page

What	Deadline	Counted from
Join a spouse's employer plan	At least 30 days	Loss of your coverage
Elect COBRA	At least 60 days	Later of coverage end or election notice
Marketplace Special Enrollment	60 days (or report up to 60 days before)	Loss of your coverage
Private plan	Usually any time of year	Varies by plan
COBRA length (job loss)	Generally up to 18 months	Coverage end

Mistakes we see most often

• Comparing monthly premiums on their own. Add the deductible and out-of-pocket maximum. A low premium with a big deductible can cost more over a bad year.
• Assuming your doctors are in the network. Look up every doctor and pharmacy by name before you enroll.
• Letting the 30-day spouse window close while waiting on the COBRA letter.
• Picking a Marketplace income estimate from your old salary. Use what you actually expect to earn this calendar year.
• Dropping COBRA mid-year and expecting to switch to the Marketplace. Decide during your Special Enrollment Period.

What to have ready when you call or text

• Your coverage end date and COBRA premium
• Ages and ZIP code for everyone who needs coverage
• Your doctors and prescriptions
• A rough income estimate for this year
• Your spouse's plan cost to add you, if you have one

As one client put it:

"Jeff was very helpful during the process of choosing new insurance. He was very patient and I never felt rushed or pressured in any way. Definitely recommend!" (Julie Behm, Google review)

Take the free Find My Plan quiz, or talk with a licensed agent by phone or text. Call or text Jeff at 817-980-8804 (licensed in 28 states) or Amy Herdine at 817-470-2229 (licensed in Texas).

This article is general information, not legal, tax or medical advice. Plan rules and availability vary.

Sources

• U.S. Department of Labor, "An Employee's Guide to Health Benefits Under COBRA": 20-employee threshold, 18 months for job loss, 60-day election period, retroactive coverage, premium up to 102%. https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/publications/an-employees-guide-to-health-benefits-under-cobra
• U.S. Department of Labor, "FAQs on HIPAA Portability" / special enrollment rights: at least 30 days to join a spouse's employer plan after loss of coverage. https://www.dol.gov/agencies/ebsa/laws-and-regulations/laws/hipaa
• HealthCare.gov, "Special Enrollment Period: losing health coverage": 60 days after, report up to 60 days before. https://www.healthcare.gov/coverage-outside-open-enrollment/special-enrollment-period/
• HealthCare.gov, "Losing job-based coverage" / COBRA and the Marketplace: voluntarily ending COBRA doesn't qualify for an SEP. https://www.healthcare.gov/unemployed/cobra-coverage/
• HealthCare.gov, "Coverage for pre-existing conditions." https://www.healthcare.gov/coverage/pre-existing-conditions/
• HealthCare.gov, "Reporting income changes" / reconciling the premium tax credit. https://www.healthcare.gov/income-and-household-information/
• HealthCare.gov, open enrollment dates for 2027 coverage. https://www.healthcare.gov/quick-guide/dates-and-deadlines/