Free tools Windows power users keep installed
One-click scans. No signup required.
After losing job-based health insurance, compare the cost and coverage of continuing your employer plan through COBRA with Marketplace plans available where you live. COBRA usually keeps your existing plan, but you generally pay the full premium plus an administrative fee. Marketplace plans may cost less after income-based tax credits, and you may qualify for Medicaid or CHIP. The best fit depends on your actual monthly price, providers, prescriptions, out-of-pocket costs and coverage dates.
What changes when you lose job-based coverage?
Losing job-based coverage generally gives you 60 days to enroll in a Marketplace plan through a Special Enrollment Period. HealthCare.gov says Marketplace coverage can start the first day of the month after your job-based insurance ends; confirm the effective date for the specific plan you choose. See HealthCare.gov’s guidance for losing job-based coverage.
As an Amazon Associate I earn from qualifying purchases.
You may also be able to join a spouse’s, parent’s or dependent’s employer plan. That plan can have its own enrollment deadline. Medicaid and CHIP accept applications year-round for people who qualify, and the Marketplace application can help determine whether you may be eligible.
How COBRA and Marketplace coverage compare
| Factor | COBRA | Marketplace plan |
|---|---|---|
| What it continues or provides | Generally continues the same employer group plan, including its provider arrangements, for eligible people. | A plan you select from options available where you live; check each plan’s network and benefits. |
| Monthly premium | Generally the full cost of coverage, including the amount previously paid by your employer, plus up to a 2% administration fee. An employer or severance agreement may subsidize some or all of it. | Depends on the plan and your circumstances. Eligible applicants may receive premium tax credits that reduce the displayed premium. |
| Costs when you receive care | Check the continuing plan’s deductible, copayments, coinsurance, prescription costs and out-of-pocket maximum. | Compare those same costs for each available plan. Eligible people may also qualify for cost-sharing reductions. |
| Duration and enrollment | For job loss, continuation is generally available for up to 18 months, subject to eligibility and plan rules. Longer continuation can apply in certain situations. | The initial Special Enrollment Period after losing job-based coverage is generally 60 days. Other enrollment opportunities depend on the circumstances and enrollment calendar. |
These are general federal rules, not a prediction of your personal price or eligibility. For details, see the Department of Labor’s pages on COBRA continuation coverage and benefits after job loss.
#1 Best Overall
Calculate the real cost—not just the premium
With COBRA, your employer’s former contribution usually does not continue automatically. The premium can therefore feel much higher than the amount that came out of your paycheck while you were employed. Check the COBRA election notice and ask the plan administrator whether any employer or severance subsidy applies, how much it covers and when it ends.
For Marketplace plans, compare the net monthly premium shown for your circumstances after any eligible tax credit—not just the plan’s full premium. Savings depend on household, income and location; unemployment alone does not establish a particular subsidy amount. Apply using your household information and estimated income for the coverage year to see what you may qualify for. A lower premium is only part of the comparison: check the deductible, copayments, coinsurance, prescription tiers and annual out-of-pocket maximum too.
Compare coverage for the care you actually use
COBRA’s continuity can be valuable if you want to keep the same plan and its provider arrangements. But do not assume every doctor, hospital or pharmacy is covered on identical terms without checking the plan details. Marketplace options may have different networks and cost-sharing, even when a plan’s premium looks attractive.
Do these 3 things before closing this tab:
1Clear out junk files and repair common Windows errors2Fix the driver behind crashes, sound loss and screen glitches3Repair Windows errors before they cause bigger problems- Check whether your doctors, specialists, hospitals and pharmacies are in network for each option.
- Look up coverage and cost-sharing for your prescriptions, including their tiers.
- Compare deductibles, copayments, coinsurance and annual out-of-pocket maximums.
- Consider planned care and whether changing plans could disrupt ongoing treatment.
Follow the enrollment deadlines and coverage dates
- Ask when your active plan ends. Contact your former employer or plan administrator, request the COBRA election notice, and obtain the full premium and details of any subsidy.
- Compare other coverage promptly. Review Marketplace plans and submit an application within the applicable 60-day Special Enrollment Period after losing job-based coverage. The application can also check for possible Marketplace savings and Medicaid or CHIP eligibility.
- Verify the dates before making a choice. Compare the date your current coverage ends with the effective date of the plan you select. HealthCare.gov says Marketplace coverage can start the first day of the month after job-based insurance ends, but confirm the selected plan’s date.
- Record the COBRA election and payment deadlines. The federal COBRA election period is generally 60 days, measured from the later of the date coverage is lost or the date the election notice is provided. Review the notice for your specific deadlines and payment requirements.
Federal COBRA generally applies to qualifying group health plans of employers with at least 20 employees, subject to exceptions and the details of the plan and qualifying event. Job loss, quitting, retirement or reduced hours may qualify when the other conditions are met; termination for gross misconduct does not qualify under the general federal rule. State continuation laws may cover some smaller employers. The Department of Labor recommends checking with state authorities. More information is available in its COBRA FAQs for workers.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Can you switch from COBRA to the Marketplace?
Yes, but outside annual Open Enrollment you cannot necessarily switch whenever you choose. HealthCare.gov says a Special Enrollment Period may apply if COBRA reaches its maximum duration, the employer stops contributing and you must pay the full premium, coverage otherwise becomes unavailable, or the original 60-day period after losing job-based coverage is still open. Expiration of COBRA or another qualifying loss can create a Marketplace enrollment opportunity.
Voluntarily ending COBRA early—or choosing not to pay its premiums—generally does not by itself create a new Special Enrollment Period outside Open Enrollment. Before dropping COBRA, confirm with the Marketplace that your circumstances qualify and check when replacement coverage would begin. See HealthCare.gov’s COBRA guidance and its page on getting coverage outside Open Enrollment.
Quick Recap
Best Value
A practical way to choose
- Write down the last day of your current coverage and the deadlines in your COBRA notice.
- Get the COBRA premium, including any subsidy and the date it ends.
- Compare that amount with Marketplace net premiums available for your household and location.
- For the plans you are seriously considering, compare networks, prescriptions, deductibles and out-of-pocket maximums.
- Check whether a spouse’s, parent’s or dependent’s employer plan—or Medicaid or CHIP—could be an option.
- Confirm the start date of your chosen coverage before declining or ending existing coverage.
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
What’s actually slowing this PC down?
Pick the symptom - the matching free tool is one click away.
