COBRA vs. Marketplace: How to Make the Right Call

COBRA lets you keep your employer’s health plan for up to 18 months after leaving. You pay the full premium (employer share + your share) plus a 2% admin fee. This means your monthly cost will typically be 3–5x what you were paying as an employee. For a family plan, this can easily be $1,500–$2,500/month.

The ACA Health Insurance Marketplace (healthcare.gov or your state exchange) offers plans with income-based subsidies. If your income dropped due to job loss, you may qualify for significant premium reductions. Losing employer coverage triggers a 60-day Special Enrollment Period. You do not have to wait for open enrollment.

Compare your COBRA premium to Marketplace options with subsidies applied. In many cases, the Marketplace is significantly cheaper. Choose COBRA if: you are mid-treatment with a specific provider network, your deductible is already met for the year, or the cost difference is small. Choose Marketplace if: cost matters, you are generally healthy, or you qualify for strong subsidies.

COBRA: You have 60 days to elect from the date of coverage loss. Coverage is retroactive to your last day of employer coverage. Marketplace: You have 60 days from losing coverage to enroll via Special Enrollment Period. Do not let either deadline pass without making a decision. Going uninsured is a financial risk most people underestimate.