Losing employer health coverage is one of the most common reasons Texans buy individual insurance. The 60-day Special Enrollment Period that follows is generous — but the clock starts the day your old coverage ends, so don't sit on it.
Common paths off employer coverage
- Layoff or termination — coverage usually ends the last day of your termination month.
- Voluntary resignation — same.
- Hour reduction below benefits eligibility (often 30 hr/week) — coverage ends per plan terms.
- Retirement before 65 — coverage ends, Medicare eligibility kicks in at 65.
- Divorce removing you from spouse's coverage.
- Aging out of parent's plan at 26.
What changes about you
Most importantly: your household income probably just dropped. That can move you into a higher subsidy band on the marketplace. We re-run the calculation specifically for the new income level — it often surprises people how much help they now qualify for.
Your decision tree
- If you'll have new employer coverage in <30 days and you're healthy: short-term may bridge.
- If you have a Texas SEP and ongoing prescriptions: marketplace plan, subsidies likely.
- If you got an attractive COBRA election letter from a former large employer: rare, but worth modeling.