Short Term Health Insurance Between Jobs in 2026: Cost, COBRA, and What to Choose

By Naomi Foster, Contributing Writer, Healthcare
Updated 2026-07-09

Losing employer coverage in 2026 leaves you choosing between a short-term plan at roughly $80 to $250 a month or COBRA continuation at $500 to $700 or more. Short-term wins on price; COBRA wins on completeness. The right call turns on your health needs, how long the gap will run, and whether you'd qualify for a marketplace subsidy instead.

Three ways to bridge a gap between jobs

Employer-sponsored coverage typically ends on the last day of the month you worked, or sometimes on your final day itself. From there you're choosing among COBRA continuation, a marketplace special enrollment plan, or a short-term policy, each with its own cost structure and coverage profile.

What COBRA actually costs and covers

COBRA keeps your exact employer plan, but you now pay the whole premium, including the share your employer used to cover. For an individual that often runs $500 to $700 a month in 2026; for a family it can top $1,500. Coverage matches your old plan exactly, including every ACA-required benefit, no pre-existing exclusions, and an annual out-of-pocket cap. The price is steep, but for someone with a pre-existing condition, ongoing prescriptions, or a scheduled procedure, COBRA is often the better value precisely because nothing gets excluded mid-treatment.

What a short-term plan runs between jobs

A 35-year-old might see $90 to $180 a month for a mid-range deductible and a $250,000 to $500,000 benefit maximum, frequently 60 to 80 percent below COBRA. The trade is narrower coverage: pre-existing conditions may be excluded, prescriptions may not be covered, and there's usually no annual out-of-pocket cap. For a healthy person with no ongoing needs and a short expected gap, those exclusions may not matter much in practice. Use the short term health insurance cost calculator to price a plan for your age and the length of your gap.

Cost side by side

If your expected income for the year qualifies for a marketplace subsidy, the marketplace price can fall sharply, sometimes to $0 to $100 a month for comprehensive coverage. Losing your job is a qualifying life event, and it opens a 60-day special enrollment window for marketplace plans.

Who tends to do fine with short-term coverage

• Healthy, with no pre-existing conditions and no regular prescriptions
• New employer coverage expected within one to three months
• Income during the gap high enough that a subsidy would be small or nonexistent
• Mainly looking for protection against a catastrophic accident at the lowest possible monthly cost

Who should lean toward COBRA or the marketplace instead

• A chronic condition or scheduled procedure that needs continuous coverage
• Regular prescriptions that a short-term plan would leave uncovered
• Subsidy eligibility that narrows or closes the price gap
• Pregnant or planning to become pregnant, since maternity is excluded on nearly every short-term plan

Timing rules worth knowing before you decide

You have 60 days from losing employer coverage to elect COBRA, and the election is retroactive, so you can wait and see whether you need care before committing. A marketplace special enrollment period also runs 60 days. Short-term plans can often start within a day or two of approval, the fastest of the three, though the coverage is the narrowest. You can mix options, for example a month on a short-term plan while deciding on COBRA, but stacking one short-term plan after another can create fresh pre-existing exposure with each new policy.

Carrier options worth comparing

Cigna, UnitedHealthcare, and various Blue Cross Blue Shield affiliates write short-term bridge plans in many states, but availability, benefit limits, and exclusion language vary a lot by carrier. Pull quotes from at least two or three insurers and compare the pre-existing look-back period and benefit maximum alongside the premium, not just the sticker price. A broker who works multiple carriers can pull several quotes in a single call. See how your state changes the price for regional availability.

Related guides

• the full monthly pricing guide
• marketplace plan cost comparison
• the cost-versus-risk analysis
• state-by-state premium differences
• the benefits checklist
• what counts as pre-existing
• dated premium reference data
• the site's main guide

FAQs

Can I use a short-term plan and still switch to COBRA later? Yes, within limits. You have 60 days from losing employer coverage to elect COBRA, and enrolling in a short-term plan in the meantime doesn't close that window. Confirm with your benefits administrator that the election period is still open before assuming you can switch.

Does losing a job open a special enrollment window for the marketplace? Yes. An involuntary loss of job-based coverage is a qualifying life event, and it opens a 60-day special enrollment period for ACA marketplace plans.

What if the gap runs past a year? Short-term plans typically can't cover you past 364 days, and plenty of states cut that shorter. Past that point, a marketplace plan, Medicaid if you qualify, or a COBRA extension where one exists are the more durable options.

Bottom line

Between jobs, a short-term plan can cut your monthly outlay to a fraction of COBRA, often $80 to $250 versus $500 or more, but that comes with real gaps around pre-existing conditions and prescriptions. Healthy people facing a short, defined gap often find it a sensible bridge. Anyone with ongoing medical needs, a pre-existing condition, or subsidy eligibility should compare all three routes carefully with a broker or insurance navigator before deciding.