What Happens When I Leave My Job

One of the underrated features of an ICHRA: the insurance is yours. Leaving a job doesn't end your coverage. It ends the reimbursement.

What stays the same

• Your health plan. The carrier doesn't know or care that you changed jobs. Keep paying the premium and nothing changes — same doctors, same deductible progress, same ID card.
• Your HSA, if you have one. It's your account.

What changes

• The allowance stops, generally at the end of the month you leave (your plan document sets the exact rule). The full premium becomes yours to pay.
• Unused allowance is forfeited. It generally can't be cashed out or carried to a new employer.
• You may become eligible for a Premium Tax Credit. Once you're no longer offered an affordable ICHRA, the credit is back on the table if your income qualifies. Update your Marketplace application promptly — it can lower your premium for the rest of the year.

COBRA under an ICHRA

COBRA generally applies to the ICHRA itself, not your individual plan — meaning you may have the option to keep the reimbursement going for a while by paying the employer's cost of the ICHRA plus an admin fee. Because you'd be paying for the allowance and then receiving it back, this rarely makes financial sense. Most people simply keep their plan and skip COBRA. Ask HR if you're unsure.

Starting a new job

Retiring

Same story: the plan stays until you replace it with Medicare or another plan. If you're 65+, the end of your ICHRA-eligible employment may affect Medicare enrollment timing — talk to Social Security before your last day.