COBRA vs Marketplace Comparison
COBRA continues your employer plan but at 102% of total cost (employer + employee). Marketplace with subsidies often beats COBRA by $300-800/mo. This compares both, factoring in your post-job-loss income.
| COBRA monthly cost (102%) | — |
| COBRA total for period | — |
| Marketplace gross premium | — |
| Estimated APTC subsidy/mo | — |
| Marketplace net monthly | — |
| Marketplace total for period | — |
| Savings from Marketplace | — |
COBRA continuation coverage lets you keep your employer health plan for up to 18 months after job loss — but at 102% of the full premium (employer contribution gone, plus 2% admin). ACA Marketplace with subsidies often beats COBRA, especially at lower post-loss income.
How COBRA Works
Federal law (ERISA + Dept of Labor) requires employers with 20+ employees to offer COBRA. You pay 100% of the premium employer was paying + 2% admin fee. Same plan, same network, same deductible — just much higher cost. Up to 18 months (29 months with disability).
Marketplace Subsidy After Job Loss
Loss of employer coverage = Special Enrollment Period (60 days). Subsidies scale with current income — if you're between jobs at $30K income, your subsidy is much larger than at your previous $90K salary. Run new numbers, don't assume Marketplace is unaffordable.
60-Day Election Window
Both COBRA and Marketplace have 60-day windows. COBRA is retroactive — elect within 60 days and coverage continues back to job-end date. Marketplace SEP applies to date of loss. Compare both carefully before electing.
Deductible Mid-Year Considerations
If you've already paid significant deductible/OOP-max under employer plan, COBRA keeps that progress. Marketplace plan resets deductible. For high-cost ongoing care, COBRA may win even if premiums higher.
Last updated May 2026. Sources: DOL COBRA, Healthcare.gov COBRA.