Short answer: when job-based coverage ends, you have deadlines, not just bills. COBRA lets you keep your former employer's plan for a limited time, the Marketplace gives you a 60-day window to pick a new plan, and Medicaid and CHIP take applications any time of year. Check these before you borrow. This is general information, not legal advice; your plan's own notices control.
COBRA: the Department of Labor rules
From the Department of Labor's guide to COBRA (September 2022) (DOL):
| Rule | What the guide says |
|---|---|
| Who it applies to | Group health plans of private-sector employers with at least 20 employees, and of state and local governments |
| Election period | At least 60 days to choose, starting from the date the election notice is provided or the date you would otherwise lose coverage, whichever is later |
| First payment | The plan cannot require a premium when you elect, and must give you at least 45 days after you elect to make the first payment. Missing that deadline can end your COBRA rights |
| Later payments | A grace period of at least 30 days for each payment |
| Maximum premium | No more than 102% of the cost to the plan for similarly situated people, which can include what you and your employer both paid |
| How long | 18 months after leaving a job for reasons other than gross misconduct, or after a cut in work hours |
Two timing points, as the DOL states them. If you pay a later premium within the grace period, the plan may cancel your coverage until it receives the payment and then reinstate it back to the beginning of the period. If you waive COBRA during the election period, you can revoke the waiver and elect before the period ends, but coverage may begin on the date you revoked it (DOL). HealthCare.gov adds that on COBRA you pay 100% of the premium, including the part your employer used to pay, plus a small administrative fee (HealthCare.gov).
The Marketplace Special Enrollment Period
- Losing job-based coverage, including COBRA, can qualify you for a Special Enrollment Period. The DOL guide says you must select a Marketplace plan within 60 days before or after losing job-based coverage (DOL; HealthCare.gov).
- When COBRA runs out, you have 60 days to enroll through a Special Enrollment Period. Voluntarily dropping COBRA, or stopping your premium payments, does not qualify you (HealthCare.gov).
- The DOL guide notes you may elect COBRA to stay covered until Marketplace coverage begins (DOL).
- One Marketplace application also tells you whether you qualify for cost savings based on your income and household size (HealthCare.gov).
Medicaid and CHIP
You can apply for Medicaid and the Children's Health Insurance Program any time of year. Eligibility rules differ by state and consider income, household size, family status, disability and age, and HealthCare.gov suggests applying even where Medicaid was not expanded. If your Marketplace application shows that someone in your household may qualify, your information goes to your state agency (HealthCare.gov).
If you still need to borrow
This example is only for the math, not an average premium or medical bill. It borrows $2,000 over 24 months at the Federal Reserve's August 2026 averages: 11.90% APR for 24-month personal loans and 22.36% for credit card plans (G.19). Your rate depends on your credit and the lender.
| Option | Monthly payment | Interest | Total paid |
|---|---|---|---|
| Personal loan at 11.90% | $94.05 | $257.20 | $2,257.20 |
| Credit card at 22.36% | $104.11 | $498.64 | $2,498.64 |
$94.05 x 24 = $2,257.20, and $104.11 x 24 = $2,498.64. A monthly payment needs income to cover it: what lenders look at without a job is in a personal loan while unemployed, and how to fit a payment in is in how to budget for a loan payment. For bills you already have, see medical bill payment plan vs personal loan.
Checklist after the last day of coverage
- Note the date on your COBRA election notice and count at least 60 days from it, or from the day coverage ends if later.
- Mark the 60-day Marketplace window around the date your job-based coverage ends.
- Fill out one Marketplace application to see cost savings and whether anyone in the household may qualify for Medicaid or CHIP.
- Ask whether a spouse's or parent's plan lets you enroll after losing coverage.
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Sources
- U.S. Department of Labor, EBSA: An Employee's Guide to Health Benefits Under COBRA (September 2022), PDF
- HealthCare.gov: Health coverage options if you're unemployed
- HealthCare.gov: Special Enrollment Period
- HealthCare.gov: Getting Medicaid and CHIP
- Federal Reserve: G.19 Consumer Credit (released October 7, 2026), terms of credit, August 2026: credit card plans and 24-month personal loans
Disclosure: Modern Lending Solutions is not a lender, loan broker or agent for any lender or loan broker, and does not make credit decisions. Any compensation we receive is paid by participating lenders, only for advertising services. This guide is general information, not financial or legal advice.