Older laid-off workers face significant challenges securing health insurance before qualifying for Medicare at 65. About 60% of people under 65 rely on employer-sponsored coverage, which vanishes upon job loss. Bureau of Labor Statistics data shows only 57.3% of displaced workers aged 55-64 found new jobs by January 2026, compared to 72.9% of younger workers, and 21% never returned to the workforce. Financial strain compounds the issue, as only half of re-employed long-tenured workers matched their previous earnings.

Experts recommend immediate action: verify exactly when employer coverage ends with HR, as it may not last through the month. A spouse's workplace plan is often the best option, but federal law allows only a 30-day enrollment window after job loss. The Affordable Care Act marketplace offers a 60-day special enrollment period via HealthCare.gov, though enhanced federal subsidies ended this year. Subsidies now cap at $63,840 for individuals and $132,000 for families of four in the 48 contiguous states and D.C. Ten states provide additional subsidies, with New Mexico fully offsetting federal cuts. ACA subsidies are calculated on total household income including severance pay.