Guide to Managing Medical Benefits When You Leave or Start a Job

By Laura Adams, Quick and Dirty Tips / Debt.com

Leaving a job typically means saying goodbye to workplace benefits such as health insurance and medical spending accounts. No matter if you quit, get fired, or get furloughed, it’s essential to know your options so you can make the most of those perks.

If you’re starting a new job with benefits or becoming self-employed, you’ll have critical decisions to make about what’s best for you and your family. I recently received a couple of questions about how to handle benefits during work transitions, and I’ll answer them throughout this post. We’ll review the best options for managing medical benefits when you leave or start a new job.

What happens to health insurance when you leave a job?

When it’s time to leave a job with benefits, it’s essential to let your employer know so you can evaluate your options for managing or replacing them right away. The sooner you understand your choices, the more time you’ll have to do your homework and consider what’s best.

Any insurance perks you have typically end on the last day of the month you get terminated. So, be strategic about choosing your last day, when possible.