Lost Your Job-Based Health Insurance in Texas? Your 2026–2027 Options, Explained

Losing employer coverage can feel urgent, but knowing your deadlines and comparing the right options can help you stay protected without overpaying.

If you recently lost your job-based health insurance: or know it will end soon: you may have several paths forward in Texas. The right choice depends on your income, health needs, preferred doctors, budget, and how long you expect to be without employer coverage.

Here are the main options to review.

1. Enroll through HealthCare.gov

Texas uses the federal Marketplace at HealthCare.gov. Losing qualifying job-based health coverage generally triggers a Special Enrollment Period (SEP).

You typically have:

• Up to 60 days before your employer coverage ends to choose a Marketplace plan.
• Up to 60 days after the coverage ends to enroll.
• Up to 30 days after selecting a plan to submit documents if HealthCare.gov asks you to verify your coverage loss.

You may need a termination notice, benefits letter, or other document showing that your job-based coverage ended and the date it ended. Follow the instructions in your Marketplace eligibility notice and submit documents promptly.

Your coverage generally begins on the first day of the month after you select a plan and your employer coverage ends. If your coverage has already ended, the plan generally begins on the first day of the month after you select it. You must also pay your first premium directly to the insurance company before you can use the coverage.

Quitting your job does not automatically prevent you from using an SEP if you lose your job-based insurance as a result. However, voluntarily dropping coverage by itself does not usually qualify. HealthCare.gov makes an important distinction between losing coverage because employment ends and choosing to cancel coverage without another qualifying event.

Marketplace plans may provide premium tax credits and additional savings based on your estimated household income and family size. If you are self-employed or moving into independent work, estimate your full-year income carefully. Include income earned earlier in the year, along with expected business or contract income.

Review the official HealthCare.gov guidance on losing job-based coverage and Special Enrollment Period requirements.

2. Know the 2027 Open Enrollment dates

If you do not qualify for an SEP: or if your SEP deadline has passed: your next standard opportunity may be Marketplace Open Enrollment.

For 2027 Marketplace coverage, Open Enrollment runs:

• November 1, 2026 through January 15, 2027
• Enroll by December 15, 2026 for coverage beginning January 1, 2027
• Enroll from December 16, 2026 through January 15, 2027 for coverage generally beginning February 1, 2027

You can enroll during Open Enrollment without proving a job-based coverage loss. Still, do not wait if you have an SEP. Missing the 60-day window could leave you uninsured until Open Enrollment or another qualifying event.

3. Consider COBRA if keeping your current doctors matters

COBRA may allow you and your dependents to continue the same employer health plan after job loss or reduced work hours. Federal COBRA generally provides up to 18 months of continuation coverage, although certain circumstances can allow longer periods.

COBRA can be useful if you:

• Are in the middle of treatment.
• Want to keep the same doctors and hospitals.
• Have already met much of your plan deductible.
• Need continuity for prescriptions, specialists, or planned procedures.
• Expect new employer coverage to begin soon.

The main drawback is cost. Under COBRA, you usually pay the full premium, including the amount your employer previously contributed, plus up to a 2% administrative fee. That can make COBRA considerably more expensive than the payroll deduction you had while employed.

COBRA generally applies to employers with 20 or more employees, though Texas continuation rules may provide additional options for some fully insured plans. Ask your former employer or benefits administrator for the election notice, monthly premium, deadlines, and exact end date.

You can review the U.S. Department of Labor’s official COBRA information.

4. Review individual PPO options

Some Texans prefer to work with a licensed broker to review individual health insurance options available directly through a broker or insurance carrier. Depending on availability, an individual PPO may offer broader provider flexibility than a narrow-network plan.

Before enrolling, confirm:

• Whether your doctors and hospitals participate.
• How out-of-network care is covered.
• The deductible, copays, coinsurance, and out-of-pocket maximum.
• Prescription coverage and formulary rules.
• Whether the plan is ACA-compliant major medical coverage.
• Whether it covers pre-existing conditions.
• Whether it qualifies for Marketplace tax credits.

Premium tax credits are generally available only with eligible Marketplace plans enrolled through HealthCare.gov. A direct-to-broker plan may have different benefits, eligibility rules, and pricing, so compare the total financial risk: not just the monthly premium.

5. Treat short-term coverage as a bridge: not a replacement

Texas permits short-term limited-duration plans for up to 36 months of total cumulative duration, including renewals, subject to the plan’s terms. However, renewals are not guaranteed, and these plans are not ACA-compliant.

Short-term plans typically may:

• Exclude pre-existing conditions.
• Exclude or limit maternity care.
• Exclude or limit mental health and substance use services.
• Provide fewer essential health benefits.
• Use different deductibles, exclusions, and claim rules than major medical coverage.

A short-term plan may serve as a temporary bridge when you expect new employer coverage to start soon or need limited protection while waiting for another enrollment opportunity. It should not be treated as a permanent substitute for comprehensive coverage, particularly if you take regular medications, manage a chronic condition, plan a pregnancy, or want strong financial protection from a major medical event.

Read the policy disclosures carefully before paying a premium. The Texas Department of Insurance health coverage resources explain the difference between traditional health insurance and alternative products.

A practical next-step checklist

If your job-based coverage is ending, take these steps:

1. Confirm the exact coverage end date with your employer.
2. Save proof of loss, including a benefits letter or termination notice.
3. Check your HealthCare.gov SEP deadline: usually 60 days before or after the loss.
4. Estimate your full-year household income, including wages already earned and expected self-employment income.
5. Compare networks, prescriptions, deductibles, and maximum out-of-pocket costs.
6. Evaluate COBRA if keeping your current care team is especially important.
7. Review short-term coverage cautiously and identify every exclusion.
8. Pay the first premium on time after selecting a Marketplace plan.
9. Reach out to a licensed broker if you want help comparing Marketplace and individual options.

Get help choosing your next plan

A job transition is already demanding: especially when you are becoming self-employed, starting contract work, or building a small business. You do not have to sort through every plan document alone.

Reach out to Momentum Health Insurance Advisors for clear, personalized guidance on individual coverage, PPO options, Marketplace plans, and temporary solutions available in Texas.

This article is for general educational purposes only. It is not legal, tax, medical, or financial advice. Enrollment rules, plan availability, premiums, subsidies, and coverage terms can change. Verify current details with HealthCare.gov, the Texas Department of Insurance, the U.S. Department of Labor, and the insurance company before enrolling.

Stay covered