Hey friend,

Here's what no one tells you until it's too late: the very week you lose your job and your health insurance, the federal workers who help fix complicated ACA insurance problems are also being laid off.

COBRA sounds like a lifeline until you see the price tag. Then panic sets in. And just when you need help navigating the confusing maze of health insurance alternatives, the system designed to help you is falling apart.

Let's cut through the noise and find you real coverage that won't drain your severance.

Meet the New York mother of three whose husband serves in the military. After experiencing a layoff in the private sector, she sought stability with the federal government as an ACA caseworker—someone who helps people solve sticky health insurance problems like newborns being left off policies or rogue brokers switching plans without consent.

She took a $40,000 pay cut to join CMS in October, dropping to $76,000 annually. For three months, she trained to master the arcane health insurance rules that most consumers never see. Just one month after completing training, she got laid off during her probationary period.

"I took it as an opportunity to get in the door and move up," she said. "Then, boom, I get hit with another layoff."

Here's what she tried:

✔️ Left high-paying private sector job for federal "stability"
✔️ Accepted massive pay cut for better benefits
✔️ Completed intensive 3-month training program
✔️ Dedicated herself to helping others navigate health insurance

None of it mattered. Federal layoffs cut 2 out of 6 divisions of ACA caseworkers—about 30 workers nationwide who resolved complex cases in 2-3 business days for urgent issues and 14 days for difficult ones. "Whole teams got wiped out completely," said one laid-off caseworker.

The brutal irony? She's now navigating the exact broken system she was trained to fix, except now there are fewer people to help her. And with ACA enrollment at an all-time high of 24 million people, those who remain are drowning.

The COBRA Shock:
While employed, your employer likely covered 70% of your health insurance premium. Under COBRA, you now pay 100% plus a 2% administrative fee. That $180/month you were paying? It just became $612/month—or more.

The Premium Crisis:
ACA Marketplace premiums are jumping 18% for 2026—more than double last year's 7% increase. The culprit? Rising healthcare costs plus the impending expiration of enhanced premium tax credits on December 31, 2025.

The Subsidy Cliff:
Unless Congress acts, enhanced ACA subsidies will expire at the end of 2025, increasing premiums by 114% on average—roughly $1,016 annually—and pushing 3.8 million Americans into the ranks of the uninsured.

The Good News:
80% of ACA Marketplace applicants qualify for government subsidies that significantly reduce monthly premiums. And unlike COBRA, Marketplace plans cover pre-existing conditions without increased costs.

The Hidden Trap:
If you're offered coverage through a spouse's employer that costs less than 9.96% of your household income in 2026, you won't qualify for premium tax credits on a Marketplace plan—even if you don't accept the spouse's coverage.

1. Act Within Your 60-Day Window

You have exactly 60 days after losing job-based coverage to enroll in a Marketplace plan. Miss this Special Enrollment Period and you're stuck waiting until next November's Open Enrollment—unless you experience another qualifying life event.

Your coverage timeline:

2. Run the Numbers BEFORE Choosing COBRA

COBRA costs full price, but Marketplace plans with subsidies can cost far less:

When COBRA makes sense:

When Marketplace beats COBRA:

3. Calculate Your Actual Marketplace Cost

Use the KFF Health Insurance Marketplace Calculator to estimate your real cost. Enter your projected 2025 income (not 2024), household size, and ZIP code.

Pro tip: If you're unemployed, your 2025 income might be significantly lower than 2024, qualifying you for larger subsidies. Include only expected 2025 income: remaining salary, severance (spread across payment dates), and unemployment benefits.

4. Check Medicaid Eligibility First

In states that expanded Medicaid, adults earning up to 138% of the federal poverty level qualify ($21,597 for an individual in 2025). Medicaid offers comprehensive coverage at little or no cost—often better than both COBRA and Marketplace plans.

The coverage gap: If you're in one of 10 states that haven't expanded Medicaid and earn less than 100% of poverty level, you may fall into a gap—earning too much for your state's Medicaid but too little for Marketplace subsidies. Texas alone accounts for 42% of people in this gap.

5. Understand Short-Term Plans (Use with Caution)

Short-term health insurance can start as soon as the next day and costs less than COBRA. But there's a catch:

What they don't cover:

Use only as a stopgap: If you're healthy and need immediate coverage while waiting for a new job's benefits to start, short-term plans can bridge a 30-90 day gap. But don't rely on them long-term.

6. Protect Your Special Enrollment Period

Never terminate COBRA or Marketplace coverage early unless you have another qualifying event. Ending coverage doesn't trigger a new Special Enrollment Period—you'll be uninsured until the next Open Enrollment unless you experience a qualifying life event (new job, moving to a different state, getting married, having a baby).

30-Minute Coverage Reality Check

This week, block 30 minutes to answer these questions:

Don't let analysis paralysis cost you coverage. Even if you choose COBRA initially, you have 60 days to decide—and during that time, you can switch to a Marketplace plan without penalty.

"Healthcare should be a right, not a privilege that disappears when you need it most." — From the hundreds of thousands navigating this same impossible maze right now

COBRA is one option—not the only option. Often not even the best option.

Within your 60-day window, you have leverage. The insurance companies want your business. The Marketplace wants to help you (even if they're understaffed). You have choices, and you have time to make an informed decision.

Don't let the COBRA letter scare you into automatically accepting. Do the math. Compare your options. Most people who explore Marketplace plans discover they can get comparable or better coverage for half the price.

You've already survived the layoff. You'll survive this too.

Win,
Fellow layoff survivor, creator of Let Go Weekly

P.S. — The enhanced ACA subsidies expire December 31, 2025. If Congress doesn't extend them, premiums will jump 114% in 2026. Use this Open Enrollment Period (November 1 - January 15) to lock in 2025's lower rates while they last.