Losing an H-1B job means two urgent clocks: your immigration status, and your family's health coverage. The first gets most of the attention. The second can be just as expensive if it lapses.
As of November 2, 2026, here are your options and the 2027 change to know about.
- COBRA's election period must last at least 60 days.
- After a job loss, COBRA generally lasts up to 18 months from the qualifying event.
- Losing job-based coverage allows Marketplace enrollment within 60 days.
- People with valid nonimmigrant visas are lawfully present and can buy Marketplace coverage.
- From January 1, 2027, Marketplace savings are limited to certain statuses, such as green card holders.
- The H-1B grace period after a job ends is up to 60 days or the end of the validity period.
What are your options after a layoff?
Usually two. HealthCare.gov says that when you lose job-based coverage, "your former employer may offer you COBRA continuation coverage," and that you can also "compare the cost of COBRA with plans available through the Marketplace before deciding" (HealthCare.gov, COBRA Coverage When You're Unemployed).
| Option | Key timing | Watch out for |
|---|---|---|
| COBRA | Election period of at least 60 days; usually up to 18 months of coverage | Premium can be up to 102% of the plan's cost |
| Marketplace plan | Enroll within 60 days of losing job coverage | Savings for H-1B holders end in 2027 |
| A new employer's plan | Starts when the new job and plan start | Gaps can happen between jobs |
How does COBRA work?
It lets you keep the same plan. The law defines the election period as one that "is of at least 60 days' duration" and "ends not earlier than 60 days after" coverage ends or you receive the COBRA notice, whichever is later (29 U.S.C. 1165, Cornell LII).
For a job loss, coverage runs until "the date which is 18 months after the date of the qualifying event," unless something ends it earlier (29 U.S.C. 1162, Cornell LII).
COBRA's main advantage is continuity: same plan, same doctors. Its main drawback is price. The law lets the plan charge a premium of up to 102 percent of the plan's cost for the period (29 U.S.C. 1162(3), Cornell LII), so you usually pay what you and your employer paid together, plus a little more.
Can H-1B holders use the Marketplace?
Yes, to buy coverage. HealthCare.gov lists "Valid non-immigrant visas" among the statuses that count as lawfully present for Marketplace coverage (HealthCare.gov, Coverage for Lawfully Present Immigrants).
A layoff gives you a window. "You can enroll in a Marketplace plan within 60 days of losing your job-based coverage" (HealthCare.gov, COBRA Coverage When You're Unemployed). Open Enrollment, from "November 1 - January 15 each year," is the other time anyone can enroll.
What changes on January 1, 2027?
Price help for H-1B holders ends. HealthCare.gov warns that "due to a law change, only people with certain immigration statuses can qualify for savings," meaning the premium tax credit and cost-sharing discounts, "starting January 1, 2027" (HealthCare.gov, Coverage for Lawfully Present Immigrants).
Its list of qualifying statuses is short: "Lawful Permanent Resident (LPR, Green Card holder)," Cuban or Haitian entrants, and Compact of Free Association (COFA) migrants. Nonimmigrant visa holders aren't on it. So for 2027 coverage, an H-1B or H-4 family can still buy a Marketplace plan, but at full price. That may make COBRA look better by comparison than it did before.
If you're shopping during Open Enrollment now for 2027 coverage, check the prices without savings.
How do the insurance and status clocks fit together?
They run separately. The H-1B grace period lets you stay in status "for up to 60 consecutive days or until the end of the authorized validity period, whichever is shorter," and "DHS may eliminate or shorten this 60-day period as a matter of discretion" (8 CFR 214.1(l)(2), eCFR). COBRA can outlast that, and a Marketplace plan isn't tied to it.
What matters is your plan for the 60 days. If you transfer to a new employer, you may move to their plan. If you change to another status, such as B-2 while you look, coverage choices may change. Our guide to what to do after an H-1B layoff covers the status options, and our guide to the B-2 bridge after a layoff covers that route. If you decide to leave the US instead, our guide to your 401(k) when leaving on H-1B covers your retirement account. If you already work a second H-1B job, our guide to concurrent H-1B employment explains how each employer's petition works.
What should you do this week?
- Find your COBRA notice, or ask HR when it will be sent.
- Price COBRA against a full-price Marketplace plan.
- Note your 60-day insurance deadlines next to your grace period end date.
- Keep your family on the same coverage if they're on your plan.
- If your I-485 is pending, read our guide to layoffs during a pending I-485.
What this means for you
- You usually have at least 60 days to elect COBRA.
- A layoff opens a 60-day Marketplace window.
- H-1B holders can buy Marketplace plans, but savings end January 1, 2027.
- Insurance and status deadlines are separate, so track both.
- A green card restores eligibility for Marketplace savings.
Where to start
A layoff is the moment many H-1B workers decide they want a green card that doesn't depend on an employer. Our free evaluation at /evaluate/ checks whether EB-1A or the NIW fits your profile, and Frank, our AI assistant at /frank, helps you build the evidence. Petitions are reviewed and filed by our partner law firm, Lai & Turner.
Sources
All checked November 2, 2026.
- HealthCare.gov, COBRA Coverage When You're Unemployed. COBRA vs Marketplace; 60-day enrollment.
- HealthCare.gov, Coverage for Lawfully Present Immigrants. Nonimmigrant visas; 2027 savings change.
- 29 U.S.C. 1165 (Cornell LII). COBRA election period.
- 29 U.S.C. 1162 (Cornell LII). 18-month coverage period.
- 8 CFR 214.1 (eCFR, current text). H-1B grace period.
Frequently asked questions
Can I keep my health insurance after an H-1B layoff?
Often, through COBRA. If your employer's plan is covered by COBRA, you can elect to continue it after the job ends. Federal law gives you an election period of at least 60 days, and after a termination coverage generally runs up to 18 months. You usually pay the full premium yourself, so compare it with a Marketplace plan.
Can H-1B holders buy a plan on HealthCare.gov?
Yes. HealthCare.gov lists people with valid nonimmigrant visas among lawfully present immigrants who can get Marketplace coverage. Losing job-based coverage opens a Special Enrollment Period, and you can enroll within 60 days of losing that coverage. What changes in 2027 is the price help, not the right to buy.
Will H-1B holders get Marketplace subsidies in 2027?
According to HealthCare.gov, no. It says that due to a law change, starting January 1, 2027, only people with certain immigration statuses can qualify for savings such as the premium tax credit. Its list is short: lawful permanent residents, Cuban or Haitian entrants and COFA migrants. Nonimmigrant visa holders like H-1B aren't on it. You could still buy a plan at full price.
Does the 60-day grace period affect my health insurance?
They are separate clocks. The H-1B grace period, up to 60 days or the end of your validity period, governs your immigration status. COBRA and Marketplace windows govern your insurance. If you leave the US or change status, check how that affects whichever coverage you choose.
What about my H-4 spouse and children?
COBRA continuation can cover family members who were on your employer plan as qualified beneficiaries, and your election can include them. A Marketplace application covers the household. Their immigration status follows yours, so plan insurance and status decisions together during the grace period.
Green Card Guide AI is not a law firm and this article is not legal advice. It describes evidence-building strategy in general terms; your attorney determines what belongs in your petition and how it's argued.
