How Long Does Health Insurance Last After Termination in California?

When you lose your job or your employment ends in California, one of the most pressing questions is: how long will your health insurance coverage last? Understanding this timeline is critical to avoid gaps in care and financial surprises. This guide breaks down the key options available after termination, based on 2025 California health insurance rules and expert recommendations.

What Happens to Your Health Insurance When You’re Terminated?

In California, most employees covered under an employer-sponsored plan lose benefits immediately upon termination. However, several pathways exist to maintain coverage, depending on your employment status, income, and circumstances.

COBRA Leave: Short-Term Coverage After Job Loss The California Division of Health Care Financing offers COBRA (Consolidated Omnibus Budget Reconciliation Act) as a temporary solution. Under COBRA, you can continue your previous employer’s health plan for up to 18 months—though you must pay the full premium yourself, including the employer portion. This applies if you were eligible under federal COBRA rules, which California largely aligns with.

COBRA coverage begins the day after termination and lasts for 18 months, though some employers allow extensions in limited cases. Premiums are typically 102% of your cost, making it a significant expense without employer support.

Medicaid: Low-Income Eligibility with Immediate Coverage If you qualify, Medicaid becomes a strong alternative. California expanded Medicaid under the Affordable Care Act, and income-based eligibility remains generous. If your household income is at or below 138% of the Federal Poverty Level (FPL), you may qualify immediately after termination—no waiting period. This coverage runs through 2025 and beyond, provided income remains within thresholds.

Applying involves submitting income and residency documents. For many Californians, especially those transitioning between jobs, Medicaid offers comprehensive care with no premiums or deductibles.

Network Options: Private Plans and Short-Term Insurance While COBRA and Medicaid are mainstays, some individuals explore private plan alternatives. However, these are generally not recommended post-termination due to high costs and underwriting risks. Short-term health insurance plans, often sold through online brokers, offer minimal coverage but lack essential benefits like pre-existing condition protections. These plans expire quickly and do not replace employer coverage reliably.

Key Dates and Deadlines to Remember

• COBRA coverage starts on day 1 after termination and lasts until day 256 (18 months).
• Medicaid eligibility is assessed retroactively; submit applications as soon as possible after job loss.
• Missing enrollment deadlines can result in gaps—waiting beyond 60 days may disqualify you from COBRA or Medicaid.

Practical Steps to Secure Continuous Coverage

Staying informed and acting quickly is essential. Here’s how to manage your transition:

• Confirm eligibility for COBRA and Medicaid within the first 10 days of termination.
• Gather required documents: proof of termination, ID, and income verification for Medicaid.
• Apply immediately—many services offer online portals for faster processing.
• Review coverage details carefully; check for out-of-network limitations and prescription coverage.
• Consider Medicaid’s stability if income supports it—this plan offers the most reliable and cost-free coverage in California.

Final Thoughts: Take Control of Your Coverage

Job loss doesn’t mean losing health protection overnight. By understanding COBRA, Medicaid, and your options, you can maintain uninterrupted care without financial strain. Stay proactive: apply early, verify eligibility, and explore Medicaid if eligible. Don’t wait—take action today to protect your health and peace of mind.

In 2025, California’s health coverage landscape offers real solutions for those who know their rights. Stay informed, act fast, and secure the coverage you deserve.