Skip to content

Should I choose COBRA or a marketplace plan after losing my job?

The short answer

After you lose job-based coverage you have 60 days to enroll in a marketplace plan, and at least 60 days to elect COBRA. COBRA keeps your same plan but you can pay up to 102% of the full premium. A marketplace plan may cost less if you qualify for savings. Check the timing before you end either one.

Updated

Reviewed by the licensed agents at Health Insurance Solutions in Orlando, Florida.

How we research and review

A licensed agent calls you at no cost.

How do COBRA and a marketplace plan compare?

What to compareCOBRAMarketplace plan
PlanContinues the same employer plan, with the same doctors and network.A new plan.
CostYou generally pay the full premium your employer used to share, plus up to 2% for administration.May cost less if you qualify for a premium tax credit.
LengthUsually up to 18 months, and longer for some events.Can continue as long as you keep paying and stay eligible.
TimingAt least 60 days to elect COBRA.60 days to enroll after losing job-based coverage.

Can I switch from COBRA to the marketplace?

During open enrollment you can switch for any reason. Outside open enrollment, you can switch only in certain cases: your COBRA coverage runs out, your former employer stops contributing to the cost, or you are still within 60 days of losing your job-based coverage.

If you choose to end COBRA early outside those cases, you generally must wait until the next open enrollment for marketplace coverage, unless another life event opens a special enrollment period. Always check your coverage start date before you end COBRA.

What about Medicaid?

If you qualify for Medicaid or the Children's Health Insurance Program you can enroll at any time. Wait for a final decision on your Medicaid eligibility before ending COBRA.

How do I decide?

Compare the total yearly cost, not only the monthly premium. If you have already met a large part of your deductible this year, or you are in the middle of treatment with doctors who are only in your current network, COBRA can make sense for a few months. If you are healthy and your income is modest, a marketplace plan with a tax credit is often cheaper. A licensed agent can run both options with you at no cost.

Compare plans

See our Individual & Family plans

Major medical coverage for you and your household, with subsidies applied where you qualify.
Free tool

Special enrollment deadline calculator

Enter the date of a life event to see your 60-day window to pick a health plan.

Talk to a licensed agent

We compare plans, explain the tradeoffs and help you enroll. It costs you nothing.

Get help

Common questions

How long do I have to enroll in COBRA?

You have at least 60 days to elect COBRA, counted from the date your coverage ends or the date you get your election notice, whichever is later.

How much does COBRA cost?

You can be charged up to 102% of the full cost of the plan, which is your share, your employer's share and a 2% administrative fee.

Can I drop COBRA and buy a marketplace plan later?

Only in certain cases outside open enrollment. If you drop COBRA early on your own, you usually wait for the next open enrollment unless you have another qualifying life event.

Sources

Rules change. Confirm dates and eligibility with your marketplace, your state Medicaid agency or Medicare before you enroll.

All articles