COBRA vs Marketplace Calculator 2026

How COBRA Continuation Coverage Works

COBRA lets you keep your employer health plan for up to 18 months after losing your job, reducing hours, divorce, or certain other qualifying events. The catch: you pay 100% of the premium that your employer was paying, plus up to a 2% administrative fee. The average employer-sponsored family plan costs roughly $24,000 per year in 2026, so a typical COBRA payment runs $1,500–$2,200 per month for family coverage and $600–$900 per month for individual coverage. You keep the same doctors, same deductible, and same network — but the price tag often shocks people used to payroll-subsidized premiums.

The enrollment window is tight: you have 60 days from the qualifying event (or the notice date, whichever is later) to elect COBRA. Election is retroactive — you can wait and enroll later to cover a medical event, but you must pay back premiums. You can drop COBRA at any time, but once you drop it you cannot return. You may also combine COBRA with HSA contributions if your plan qualifies.

How ACA Marketplace Plans Compare

Under the Affordable Care Act, losing job-based coverage is a Special Enrollment Period, giving you 60 days to enroll at Healthcare.gov or your state exchange. Marketplace plans come in four metal tiers (Bronze, Silver, Gold, Platinum) with premiums that reflect your age, location, and tobacco use. The breakthrough is the Premium Tax Credit (PTC): if your household income is between 100% and 400% of the Federal Poverty Level, subsidies cap your premium at 2% to 8.5% of income. Through 2025 the Inflation Reduction Act extended subsidies above 400% FPL, and 2026 rules depend on Congressional action — this calculator uses current-law 2026 rates.

For 2026, 150% FPL for a household of 2 is roughly $30,660 and 400% FPL is $81,760 (with slight annual indexing). Silver-tier plans also qualify for cost-sharing reduction (CSR) if your income is below 250% FPL, which lowers deductibles and copays dramatically. A family making $50,000 might pay $150/month after subsidy for a Silver plan that would otherwise cost $900/month — a massive gap versus COBRA's $1,800/month.

When COBRA Beats the Marketplace

COBRA wins in three scenarios. First: mid-year deductible protection. If you have already hit your employer plan's $3,000 deductible, COBRA lets you keep that credit. Restarting at a Marketplace plan resets your deductible to zero. Second: specialty provider continuity. If you are mid-treatment with an in-network specialist who is not in Marketplace networks, COBRA is worth the price premium for 3–6 months until treatment is complete. Third: high income above subsidy cliffs. Households above ~$100,000 income often get zero Marketplace subsidy, making unsubsidized Bronze plans cost similar to COBRA without the rich benefits.

Conversely, Marketplace usually wins if you expect low income during unemployment, have met no deductible, or need coverage for more than 6 months. The 18-month COBRA cap means you will eventually need a replacement anyway — switching during a job transition is natural. Last updated: April 2026, based on 2026 FPL guidelines and current ACA Premium Tax Credit formulas.

Reading Your Results

Total Cost combines premiums paid plus out-of-pocket medical spend up to each plan's deductible. The Break-Even row shows how much medical care you would need to consume for COBRA's richer benefits to overcome its higher premium. If you are healthy and expect minimal care, Marketplace almost always wins once subsidies are factored in. If you are mid-treatment or have chronic conditions, the lower deductible of a COBRA plan can close the gap. The recommendation below is the cost-minimizing choice for your inputs; always confirm network coverage for your current doctors before switching.