COBRA vs. a Marketplace Plan: Which Costs Less After a Job Ends?
COBRA keeps the plan you have, at full price. A Marketplace plan may cost far less once the tax credit is counted, but you change networks and restart your deductible. The decision has deadlines that are hard to undo.
Side by side
| COBRA | Marketplace plan | |
|---|---|---|
| Premium | Up to 102% of the full cost (employer share + yours + the administrative charge) | Full price minus any premium tax credit, based on your income for the year |
| Doctors and drugs | Same plan, same network | New plan and network; check your doctors |
| Deductible | What you’ve paid this year still counts | Starts over at $0 |
| How long | 18 months for job loss (29 with a disability, 36 for some family events) | As long as you want, renewed each year |
| Deadline | At least 60 days to elect; coverage is retroactive to when the job plan ended | 60 days after losing coverage (or up to 60 days before) |
Do the math
Ask your former employer for the COBRA premium, then estimate your Marketplace cost with the ACA subsidy calculator. The income that counts is your expected income for the whole calendar year, so a mid-year job loss often means a much larger credit than your old salary suggests. Above 400% of the poverty line in 2027, there’s no credit, and COBRA may cost about the same as an unsubsidized plan.
COBRA tends to win when you’ve already met most of this year’s deductible, are mid-treatment with doctors you can’t move, or need only a month or two of coverage before a new job. The Marketplace tends to win when your income for the year will be modest, or you need coverage for longer.
The rules that trip people up
- Dropping COBRA early doesn’t open a Special Enrollment Period. If you choose COBRA and quit it voluntarily, you generally have to wait for Open Enrollment (Nov 1–Jan 15) to get a Marketplace plan. COBRA running out does qualify, and so does your former employer stopping its contribution.
- You can wait and see. You have 60 days to elect COBRA and 45 days after that to pay. If you get sick, elect it and coverage reaches back to the day the job plan ended; if not, you may never pay. Meanwhile, keep track of your 60-day Marketplace deadline.
- Turning 65 on COBRA: COBRA doesn’t protect you from the Part B late penalty. See working past 65.
Questions
Can I get a tax credit while I’m on COBRA?
No. You can’t get a premium tax credit for any month you’re enrolled in COBRA. Being eligible for COBRA but not enrolling doesn’t block the credit.
How much can COBRA cost?
Up to 102% of what the plan costs for an active employee, including the part your employer used to pay. During a disability extension it can rise to 150%.
Is there a grace period for COBRA payments?
After the first payment, each monthly payment has a grace period of at least 30 days.
Sources
Official sources only, checked October 22, 2026.
- U.S. Department of Labor, “An Employee’s Guide to Health Benefits Under COBRA” — dol.gov PDF.
- HealthCare.gov, “COBRA coverage and the Marketplace” — healthcare.gov.
- HealthCare.gov, “Special Enrollment Period” — healthcare.gov.
Educational information, not legal or tax advice. We are not an insurance agent or broker and are not connected with HealthCare.gov. · Advertiser disclosure