Health Insurance for Part-Time Workers: Options When Your Job Doesn't Offer Coverage

Working part-time comes with many advantages — flexibility, work-life balance, and the ability to pursue education or other interests. But one major disadvantage is that most part-time jobs do not include health insurance. If your employer does not offer coverage or you do not work enough hours to qualify, finding affordable health insurance on your own can feel overwhelming. The good news is that part-time workers have more options than many realize, and financial assistance through subsidies and government programs can make coverage surprisingly affordable.

Why Part-Time Workers Often Lack Coverage

Under the Affordable Care Act, employers with 50 or more full-time equivalent employees must offer health insurance to workers who average at least 30 hours per week. There is no federal requirement to extend benefits to employees working fewer than 30 hours. This means millions of part-time workers — retail associates, restaurant staff, warehouse workers, office assistants, and others — are left without employer-sponsored coverage.

According to national surveys, fewer than 25% of part-time workers receive health benefits through their employer, compared to roughly 70% of full-time workers. That gap leaves a substantial portion of the workforce needing to find coverage on their own. Going without insurance is risky — a single emergency room visit can cost $2,000 to $20,000 or more, and an unexpected surgery or hospitalization can lead to financial catastrophe.

ACA Marketplace Plans: The Best Option for Most Part-Time Workers

The ACA marketplace (also known as the Health Insurance Exchange) is the single best starting point for part-time workers who need coverage. Available through HealthCare.gov or your state's exchange, marketplace plans provide comprehensive health insurance that covers essential health benefits, cannot deny you for pre-existing conditions, and cannot charge more based on your health history.

What makes the marketplace especially valuable for part-time workers is the availability of premium tax credits. These income-based subsidies reduce your monthly premium, often dramatically. Because part-time workers typically earn less than full-time employees, they frequently qualify for larger subsidies. A part-time worker earning $25,000 per year might pay as little as $50 to $150 per month for a Silver plan that would otherwise cost $400 or more.

Cost-sharing reductions: In addition to premium tax credits, part-time workers with household income between 100% and 250% of the federal poverty level can receive cost-sharing reductions that lower deductibles, copays, and out-of-pocket maximums on Silver-tier plans. These reductions can transform a standard Silver plan into something that functions more like a Gold or Platinum plan at a Silver price.

How to enroll: You can sign up during the annual open enrollment period, which typically runs from November 1 through January 15 for most states. Outside of open enrollment, you can enroll only if you experience a qualifying life event such as losing other coverage, getting married, having a baby, or moving to a new area. Starting a part-time job is not itself a qualifying life event, but losing previous employer coverage when you reduced your hours is.

Join a Spouse's Employer Plan

If your spouse works full-time and has access to employer-sponsored health insurance, joining their plan is often the easiest and most cost-effective route. Employer plans benefit from the employer's premium contribution, group negotiating power, and the convenience of payroll deductions. Most employer plans allow you to add a spouse during the company's annual open enrollment or after a qualifying life event such as marriage or the loss of your own coverage.

Important consideration: Adding a spouse to an employer plan is not always cheaper than a marketplace plan. Some employers charge steep surcharges for spousal coverage, especially if the spouse has access to their own employer plan. Before automatically choosing this option, compare the total annual cost of the spousal coverage against a subsidized marketplace plan. If your part-time income is low enough, marketplace subsidies could make your own plan significantly cheaper. However, be aware that if your spouse's employer plan meets ACA affordability standards for family coverage, you may not be eligible for marketplace premium tax credits.

Stay on a Parent's Plan Until Age 26

If you are under 26 years old, the ACA allows you to remain on a parent's health insurance plan regardless of your employment status, living situation, marital status, student status, or financial dependence. This is one of the most popular ACA provisions and has extended coverage to millions of young adults. You do not need to live in the same state as your parent, and the plan cannot charge a higher premium based on your age. It applies to both employer-sponsored plans and marketplace plans.

When you turn 26, you will be removed from your parent's plan, which triggers a qualifying life event. This gives you a 60-day special enrollment period to purchase your own marketplace coverage or enroll in any other plan available to you. Plan ahead and start shopping before your 26th birthday so you have seamless coverage.

Medicaid: Free or Low-Cost Coverage for Lower Incomes

Medicaid provides free or very low-cost health coverage to people with limited income. In the 40 states plus Washington D.C. that have expanded Medicaid under the ACA, adults with household income up to 138% of the federal poverty level (approximately $20,783 for an individual in 2026) qualify regardless of their employment status. Many part-time workers fall squarely within this income range.

Medicaid covers a broad range of services including doctor visits, hospital care, prescriptions, preventive care, mental health services, and more. Unlike marketplace plans, there is no open enrollment period for Medicaid — you can apply at any time of year. You can check your eligibility and apply through HealthCare.gov or directly through your state's Medicaid agency.

States without Medicaid expansion: In the remaining states that have not expanded Medicaid, eligibility is typically limited to specific categories such as pregnant women, children, parents of dependent children, and people with disabilities. Childless adults in these states may fall into the "coverage gap" — earning too much for traditional Medicaid but too little for marketplace subsidies. If you are in this situation, check with your state Medicaid office for any available waiver programs, and consider community health centers that offer care on a sliding-fee scale.

Employers That Offer Part-Time Health Benefits

While most employers restrict health insurance to full-time workers, several well-known companies extend benefits to part-time employees. If you are considering part-time work and health insurance is a priority, these employers are worth researching.

• Starbucks: Offers comprehensive health, dental, and vision coverage to employees (called partners) working an average of 20 or more hours per week. Starbucks is widely regarded as having one of the best part-time benefit packages in the retail and food service industry.
• Costco: Provides health insurance to part-time employees after they meet eligibility requirements based on hours worked. Costco is known for paying higher wages and offering better benefits than most retail competitors.
• UPS: Extends health insurance to part-time package handlers and other part-time employees, typically after a waiting period. UPS benefits are negotiated through the Teamsters union and tend to be robust.
• Lowe's: Offers health benefits to part-time associates, including medical, dental, and vision plans, though the employer contribution may be lower for part-time versus full-time workers.
• REI: Provides health coverage to part-time employees who work an average of 20 or more hours per week, along with other benefits like retirement plans and employee discounts.
• Chipotle: Offers medical, dental, and vision insurance to eligible part-time crew members after meeting minimum hour and tenure requirements.
• JPMorgan Chase: Extends health benefits to part-time employees working at least 20 hours per week, including medical, dental, vision, and other wellness programs.

Keep in mind that benefit eligibility, waiting periods, and coverage quality can change at any time. Always verify current benefits directly with the employer before accepting a position specifically for the health insurance.

COBRA from a Previous Job

If you previously worked full-time and had employer-sponsored health insurance, the Consolidated Omnibus Budget Reconciliation Act (COBRA) allows you to continue that same coverage for up to 18 months after leaving your job or having your hours reduced. COBRA applies to employers with 20 or more employees. Many states also have mini-COBRA laws covering smaller employers.

The major drawback is cost. Under COBRA, you pay the entire premium — both your share and what your employer previously contributed — plus a 2% administrative fee. This often means monthly premiums of $600 to $700 for individual coverage or $1,500 to $2,000 for family coverage. For a part-time worker, these costs are usually prohibitive.

When COBRA makes sense: Despite the high cost, COBRA can be worth it in specific situations. If you are in the middle of an active treatment plan with in-network providers, if you have already met your deductible for the year, or if you need to maintain the exact same coverage for a short period while transitioning to a new plan. You have 60 days from losing coverage to elect COBRA, and coverage is retroactive to your termination date.

Short-Term Health Insurance Plans

Short-term health insurance provides temporary coverage lasting 30 to 364 days, depending on your state. Some states allow renewals for up to 36 months total. These plans have lower premiums than ACA-compliant coverage because they do not have to follow the same rules.

Significant limitations: Short-term plans can deny coverage for pre-existing conditions, exclude essential health benefits such as maternity care, mental health services, and prescription drugs, and impose lifetime or annual benefit caps. They do not qualify for premium tax credits and do not count as minimum essential coverage. Several states including California, New York, Massachusetts, and New Jersey have banned short-term plans entirely.

For most part-time workers, a subsidized marketplace plan will provide better coverage at a comparable or lower monthly cost. Short-term plans are best suited as a brief gap solution for healthy individuals waiting for other coverage to begin — not as a long-term health insurance strategy.

How to Estimate Your Income for Marketplace Subsidies

Getting an accurate income estimate is critical because it determines how much financial help you receive on a marketplace plan. Part-time workers often have variable or unpredictable income, which makes this step especially important.

1. Calculate your expected annual earnings. Multiply your hourly wage by your average weekly hours, then multiply by 52 weeks. If your hours fluctuate, use a realistic average. For example, if you earn $16 per hour and typically work 25 hours per week, your estimated annual income is $20,800.
2. Include all income sources. The marketplace uses your modified adjusted gross income (MAGI), which includes wages, tips, self-employment income, investment income, Social Security benefits, alimony received (for pre-2019 agreements), and any other taxable income. If you are married and file jointly, include your spouse's income as well.
3. Account for deductions that reduce MAGI. Above-the-line deductions such as student loan interest, IRA contributions, and half of any self-employment tax lower your MAGI. If you have side gig income, your net self-employment income (after business expenses) is what counts.
4. Update your estimate if your situation changes. If you get more hours, lose hours, pick up a second job, or experience any significant income change during the year, log into HealthCare.gov and update your application. The marketplace will recalculate your subsidy in real time, helping you avoid owing money back at tax time or missing out on credits you deserve.

State-Specific Programs and Resources

Beyond the federal marketplace and Medicaid, many states offer additional programs that can help part-time workers access affordable healthcare.

• State-based marketplaces: States like California (Covered California), New York (NY State of Health), Massachusetts (Health Connector), and others run their own exchanges, which may have different enrollment periods, additional state-funded subsidies, or expanded plan options compared to the federal marketplace.
• Basic health programs: Minnesota and New York operate Basic Health Programs (BHP) for residents with incomes between 138% and 200% of FPL. These programs, known as MinnesotaCare and the Essential Plan respectively, offer very low-cost coverage with minimal premiums and copays. Other states may implement BHPs in the future.
• Community health centers: Federally Qualified Health Centers (FQHCs) exist in every state and provide primary care, dental, mental health, and pharmacy services on a sliding-fee scale based on your ability to pay. Even without insurance, you can receive care at these centers. Visit findahealthcenter.hrsa.gov to locate one near you.
• CHIP for children: If you are a part-time worker with children, the Children's Health Insurance Program (CHIP) provides free or low-cost coverage for kids in families with income too high for Medicaid but too low to afford private insurance. Income limits vary by state but are typically between 200% and 300% of FPL.

Coverage for Gig Workers and Multiple Part-Time Jobs

Many people who work part-time also pick up gig work or hold multiple part-time jobs. If you drive for a rideshare company, deliver food, freelance, or do other independent contractor work on the side, your total income from all sources affects your marketplace subsidy eligibility. The same coverage options described above apply to gig workers and freelancers — for a deeper look at strategies specific to independent work, see our guide on health insurance for gig workers and freelancers.

When combining income from multiple sources, remember that self-employment income is calculated as net income after business expenses. If you earn $8,000 from a part-time W-2 job and $12,000 net from gig work, your total income for subsidy purposes is $20,000 — potentially qualifying you for generous marketplace assistance.

Comparing Your Options: A Quick Reference

Choosing the right coverage depends on your age, income, household size, health needs, and what other plans are available to you. Here is a general priority order for most part-time workers.

1. Check Medicaid eligibility first. If your income qualifies, Medicaid provides comprehensive coverage at little or no cost. This is the most affordable option available.
2. Explore the ACA marketplace with subsidies. If your income is above the Medicaid threshold, marketplace plans with premium tax credits and cost-sharing reductions offer the best combination of comprehensive coverage and affordability for most part-time workers.
3. Consider a spouse's or parent's plan. A spouse's employer plan or a parent's plan (if you are under 26) may be convenient, but compare the total cost against subsidized marketplace coverage before deciding.
4. Look for part-time employers with benefits. If you are job searching, targeting employers like Starbucks, Costco, or UPS that offer part-time health insurance can be a strategic way to access group coverage.
5. Use COBRA only when it clearly makes financial sense. The high cost of COBRA means it is rarely the best option for part-time workers, but it can be worthwhile for a short bridge period if you need continuity of care.
6. Treat short-term plans as a last resort. Only consider short-term coverage as a temporary bridge. For ongoing coverage needs, a marketplace plan with subsidies will almost always be superior.

The Bottom Line

Not having health insurance through your employer does not mean you have to go without coverage. The ACA marketplace exists specifically to serve people who do not have access to affordable employer-sponsored plans, and premium tax credits make coverage remarkably affordable for most part-time workers. Medicaid provides a safety net for those with lower incomes, and provisions like the under-26 rule and spousal coverage offer additional pathways.

The most important step is to take action and explore your options rather than going uninsured. Start at HealthCare.gov to check your eligibility for subsidies and Medicaid. Compare plans carefully, paying attention to both premiums and out-of-pocket costs. If your income or employment situation changes during the year, update your marketplace application to keep your subsidy accurate.

Working part-time should not mean living without the security of health coverage. With the right information and a few minutes of research, you can find a plan that protects your health and fits your budget — giving you one less thing to worry about while you focus on the work and life that matters to you.