{
  "slug": "cobra-vs-aca-marketplace-cost",
  "title": "COBRA vs Marketplace Insurance Cost Calculator",
  "heading": "COBRA vs Marketplace Cost Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/cobra-vs-aca-marketplace-cost",
  "summary": "Compare total cost of COBRA continuation coverage against an ACA marketplace plan.",
  "description": "After a job loss, COBRA lets you keep your exact employer group plan, but you pay the full premium plus up to a 2% administrative fee, since your employer no longer subsidizes it. Marketplace plans might have a lower sticker premium and, depending on your household income after job loss, could qualify for a premium tax credit that significantly cuts the real cost. This calculator compares COBRA's full premium plus fee against a marketplace plan's premium net of any subsidy you estimate, factoring in that COBRA typically has a lower deductible since it mirrors your prior employer plan, while marketplace plans in the same metal tier can vary in network and deductible. The right choice depends heavily on whether you qualify for subsidies and whether keeping your specific doctors and providers in-network matters more than saving money.",
  "formula": "COBRA total = (employee premium + employer premium share) × 1.02 × months; marketplace total = (marketplace premium − monthly subsidy) × months + deductible difference adjustment.",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=cobra-vs-aca-marketplace-cost",
  "inputs": [
    {
      "id": "employeePremiumShare",
      "label": "Your prior monthly premium share",
      "kind": "number",
      "hint": null,
      "default": 300,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "employerPremiumShare",
      "label": "Employer's prior monthly premium share",
      "kind": "number",
      "hint": null,
      "default": 700,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "marketplacePremium",
      "label": "Marketplace plan monthly premium",
      "kind": "number",
      "hint": null,
      "default": 550,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "monthlySubsidy",
      "label": "Estimated monthly premium tax credit",
      "kind": "number",
      "hint": null,
      "default": 200,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "coverageMonths",
      "label": "Months of coverage needed",
      "kind": "number",
      "hint": null,
      "default": 6,
      "unit": null,
      "min": 1,
      "max": 18
    }
  ],
  "outputs": [
    {
      "id": "marketTotal",
      "label": "Marketplace total cost",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "cobraTotal",
      "label": "COBRA total cost",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "savings",
      "label": "Savings choosing marketplace over COBRA",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "cobraMonthly",
      "label": "COBRA monthly premium (with 2% fee)",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Your prior monthly premium share: 300 $",
      "Employer's prior monthly premium share: 700 $",
      "Marketplace plan monthly premium: 550 $",
      "Estimated monthly premium tax credit: 200 $",
      "Months of coverage needed: 6"
    ],
    "outputs": [
      "Marketplace total cost: $2,100",
      "COBRA total cost: $6,120",
      "Savings choosing marketplace over COBRA: $4,020",
      "COBRA monthly premium (with 2% fee): $1,020"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter your prior monthly premium share ($).",
      "Enter employer's prior monthly premium share ($).",
      "Enter marketplace plan monthly premium ($).",
      "Enter estimated monthly premium tax credit ($).",
      "Enter months of coverage needed.",
      "Read your marketplace total cost on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "employeePremiumShare": 175,
        "employerPremiumShare": 425,
        "marketplacePremium": 325,
        "monthlySubsidy": 125,
        "coverageMonths": 4
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "employeePremiumShare": 300,
        "employerPremiumShare": 700,
        "marketplacePremium": 550,
        "monthlySubsidy": 200,
        "coverageMonths": 6
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "employeePremiumShare": 475,
        "employerPremiumShare": 1125,
        "marketplacePremium": 875,
        "monthlySubsidy": 325,
        "coverageMonths": 10
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "Why is COBRA usually so much more expensive than what I paid while employed?",
      "a": "While employed, your employer typically covers 60-80% of the premium, and COBRA removes that subsidy entirely, requiring you to pay both your share and the employer's former share, plus up to a 2% administrative surcharge. It's the same plan and network, just at the full unsubsidized group rate, which routinely runs $500-$800+ per month for a single person."
    },
    {
      "q": "Do I qualify for marketplace subsidies after losing my job?",
      "a": "Losing job-based coverage is a qualifying life event that opens a 60-day special enrollment window, and your subsidy eligibility is based on estimated annual household income for the year, not your prior salary. Since income often drops after job loss, many people qualify for meaningful premium tax credits they didn't get access to before, sometimes cutting the marketplace premium by half or more."
    },
    {
      "q": "Can I switch from COBRA to a marketplace plan later if I elect COBRA first?",
      "a": "Generally no outside open enrollment — electing COBRA typically locks you into it until the plan year ends, a qualifying event occurs, or your COBRA eligibility runs out, since voluntarily dropping COBRA isn't its own special enrollment trigger for the marketplace. Decide before enrolling in either, because switching mid-stream is harder than choosing correctly upfront."
    },
    {
      "q": "How long does COBRA coverage last?",
      "a": "Standard COBRA continuation runs 18 months after a qualifying event like job loss, extendable to 29 or 36 months in specific situations like disability determination or divorce. Marketplace coverage has no such time limit as long as you keep paying premiums, making it the more sustainable long-term option if you're unemployed for an extended stretch."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/hdhp-vs-ppo-total-cost",
    "https://www.revenuelab.fyi/toolbox/medigap-plan-cost-compare"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — COBRA vs Marketplace Insurance Cost Calculator (https://www.revenuelab.fyi/toolbox/cobra-vs-aca-marketplace-cost)"
}