The short version
- COBRA keeps your exact plan, usually for up to 18 months, but you pay the full cost.
- Losing job-based coverage opens a 60-day window to buy a Marketplace plan, often with help on the premium.
- If you drop COBRA on purpose, you generally can't switch to a Marketplace plan until Open Enrollment.
What COBRA is
COBRA is a federal law that lets you keep your employer's health plan after you leave, usually for up to 18 months. It generally applies to employers with 20 or more employees, and many states have similar rules for smaller employers.
You keep the same plan, the same doctors and the same progress towards your deductible. What changes is the price: you now pay the whole premium, including the share your employer used to pay, plus up to a 2% administrative fee. For many people that's several times what used to come out of their paycheck.
You usually have 60 days to elect COBRA, counted from when you get the notice or lose coverage, whichever is later. If you elect it, coverage applies back to the day your plan ended.
What a Marketplace plan offers
Losing job-based coverage qualifies you for a Special Enrollment Period, so you can buy an individual plan without waiting for Open Enrollment. You usually have 60 days after losing coverage, and you can start up to 60 days before if you know the date.
The big difference is that help with the premium depends on your expected income for the year. If you're between jobs, that estimate may be lower than usual, and the premium tax credit higher as a result.
Side by side
| COBRA | Marketplace plan | |
|---|---|---|
| What you keep | The same plan, doctors and deductible progress | A new plan; the network and drug list may differ |
| Monthly cost | The full premium plus up to 2% | Depends on the plan and your income |
| Help with the premium | No premium tax credit | Premium tax credit, based on income |
| How long | Usually up to 18 months | As long as you keep it, renewing each year |
| Deadline to decide | Usually 60 days to elect | Usually 60 days after losing coverage |
When each one tends to make sense
COBRA can be worth its price if you've already paid a large part of your deductible this year, if you're in the middle of treatment with doctors who aren't in Marketplace networks, or if you expect to start a new job with benefits soon.
A Marketplace plan is often cheaper if your income for the year will be lower, if you're comfortable with a new network, or if you'll need coverage for a long stretch.
Don't close the door by accident
If you choose COBRA and later cancel it on purpose, that generally doesn't open a new Special Enrollment Period, so you'd wait until Open Enrollment to switch. COBRA running out completely does qualify. Compare both options before you decide, not after.
How I can help
Tell me what your COBRA notice says it will cost, your state and roughly what you expect to earn this year. I'll price comparable Marketplace plans and check whether your doctors are in their networks, so you can see both options side by side before your deadline.
See the states where I'm licensed
This article is general information, not advice about your own situation. COBRA terms depend on your employer's plan, and Marketplace rules, plans and prices vary by state and can change from year to year.
