Know the 60-day rule. Losing job-based coverage, including when an agency plan ends with your contract, generally opens a 60-day Special Enrollment Period. You can also apply up to 60 days before the coverage ends if you know the date.
Option 1: COBRA from your agency
If your agency has 20 or more employees, federal COBRA usually lets you keep the same plan. Two things to know:
- You pay the whole bill. COBRA costs the full premium, the part your agency was paying plus your part, plus up to a 2% fee. That's often several times what you saw on your pay stub.
- It's retroactive. You have 60 days to elect, and coverage backdates to the day you lost it. If you start a new contract with day-one coverage before you need care, you may never need to elect it. If something happens during the gap, you can elect and pay then. Don't sign a COBRA waiver while you're still deciding.
Best for: short gaps, or when you're in the middle of treatment and need the same doctors and deductible.
Option 2: A Marketplace (ACA) plan
Losing agency coverage lets you buy a Marketplace plan in your home state. Depending on your expected annual income, you may get a tax credit. The catch for travelers: when you start your next contract, you'll either keep the Marketplace plan and decline the agency plan, or switch back. If you accept an affordable agency plan, you lose eligibility for the tax credit for those months.
Best for: longer breaks, or travelers who are ready to stop depending on agency coverage altogether.
Option 3: Short-term health insurance
Short-term plans can start within days and cost less, but they're not ACA plans. They can deny or exclude pre-existing conditions, cap benefits, and skip things like maternity and mental health coverage. Federal and state rules on how long these plans can last have been changing, and some states ban them. Read the exclusions carefully.
Best for: healthy travelers bridging a short, known gap who understand the limits.
Option 4: Keep your own plan year-round
The only way to never think about gaps again is to have coverage that isn't tied to a contract at all. Many travelers enroll in an individual plan during Open Enrollment, keep it all year, and decline agency coverage. You lose nothing between contracts, you can switch agencies freely, and your deductible doesn't reset.
Best for: career travelers who change agencies or take breaks often.
Quick comparison
| Option | Covers pre-existing conditions | Typical cost | Keeps same doctors |
|---|---|---|---|
| COBRA | Yes | High (full premium) | Yes |
| Marketplace plan | Yes | Varies, tax credit possible | Depends on network |
| Short-term plan | Often no | Lower | Depends |
| Your own year-round plan | Yes | Varies, tax credit possible | Yes, all year |
Mistakes to avoid
- Waiting until day 61. Miss the window and you may be stuck until Open Enrollment.
- Dropping a plan on purpose mid-year. Voluntarily cancelling coverage doesn't open a new enrollment window.
- Using different home addresses on agency, tax and insurance paperwork.
- Forgetting dental and vision. They often end with the contract too.
Frequently asked questions
Does losing agency health insurance qualify for a Special Enrollment Period?
Yes, generally. Voluntarily dropping coverage or losing it for not paying does not count.
Can I use COBRA between contracts?
Usually, if your agency has 20+ employees. You have 60 days to elect, and it's retroactive, but you pay the full premium plus up to 2%.
Contract ending soon?
Tell us your dates and we'll map out the cheapest way to stay covered with no gap.
Get a QuoteGeneral information only, not legal advice. COBRA, state continuation and short-term plan rules vary. Confirm details with your agency's plan administrator.