{
  "slug": "cobra-vs-marketplace-cost-calculator",
  "title": "COBRA vs Marketplace Cost Calculator",
  "heading": "COBRA vs Marketplace Plan Cost Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/cobra-vs-marketplace-cost-calculator",
  "summary": "Full-year cost of each option including premiums, deductible, and subsidy.",
  "description": "Losing job-based coverage forces a decision within 60 days, and the sticker prices mislead. COBRA looks brutal because you now pay the entire premium your employer was largely covering plus a 2% administrative charge, but it keeps your network, your deductible progress for the plan year, and your existing prior authorisations. A marketplace plan usually looks cheaper, and with a premium tax credit it often is, but it restarts your deductible and may exclude the specialists you are mid-treatment with. This calculator totals expected annual cost for both — premium plus expected out-of-pocket given the care you anticipate, with the marketplace subsidy applied against household income — and shows the break-even level of medical spending where the more expensive premium becomes the cheaper total. Losing coverage is a qualifying life event, so the special enrolment window is real but short; run this before the clock runs out.",
  "formula": "Annual Cost = (Monthly Premium × Months) + min(Expected Care − Deductible Progress, Out-of-Pocket Max). Subsidy reduces marketplace premium.",
  "dateModified": "2026-09-06",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=cobra-vs-marketplace-cost-calculator",
  "inputs": [
    {
      "id": "cobraPremium",
      "label": "COBRA monthly premium (with 2% fee)",
      "kind": "number",
      "hint": null,
      "default": 720,
      "unit": "$",
      "min": 0,
      "max": 5000
    },
    {
      "id": "cobraDeductibleLeft",
      "label": "Deductible remaining on current plan",
      "kind": "number",
      "hint": null,
      "default": 500,
      "unit": "$",
      "min": 0,
      "max": 20000
    },
    {
      "id": "cobraOopMax",
      "label": "COBRA out-of-pocket max remaining",
      "kind": "number",
      "hint": null,
      "default": 4000,
      "unit": "$",
      "min": 0,
      "max": 30000
    },
    {
      "id": "marketPremium",
      "label": "Marketplace premium before subsidy",
      "kind": "number",
      "hint": null,
      "default": 520,
      "unit": "$/month",
      "min": 0,
      "max": 5000
    },
    {
      "id": "subsidy",
      "label": "Estimated monthly premium tax credit",
      "kind": "number",
      "hint": null,
      "default": 240,
      "unit": "$",
      "min": 0,
      "max": 3000
    },
    {
      "id": "marketDeductible",
      "label": "Marketplace deductible",
      "kind": "number",
      "hint": null,
      "default": 4500,
      "unit": "$",
      "min": 0,
      "max": 20000
    },
    {
      "id": "marketOopMax",
      "label": "Marketplace out-of-pocket max",
      "kind": "number",
      "hint": null,
      "default": 8500,
      "unit": "$",
      "min": 0,
      "max": 30000
    },
    {
      "id": "expectedCare",
      "label": "Expected medical spending this year",
      "kind": "number",
      "hint": null,
      "default": 6000,
      "unit": "$",
      "min": 0,
      "max": 200000
    },
    {
      "id": "months",
      "label": "Months of coverage needed",
      "kind": "number",
      "hint": null,
      "default": 12,
      "unit": "months",
      "min": 1,
      "max": 18
    }
  ],
  "outputs": [
    {
      "id": "difference",
      "label": "Marketplace saves you (negative = COBRA wins)",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "cobraTotal",
      "label": "COBRA total for the period",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "marketTotal",
      "label": "Marketplace total for the period",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "netMarketPremium",
      "label": "Marketplace premium after subsidy",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "cobraOop",
      "label": "Expected out-of-pocket on COBRA",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "marketOop",
      "label": "Expected out-of-pocket on marketplace",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "COBRA monthly premium (with 2% fee): 720 $",
      "Deductible remaining on current plan: 500 $",
      "COBRA out-of-pocket max remaining: 4000 $",
      "Marketplace premium before subsidy: 520 $/month",
      "Estimated monthly premium tax credit: 240 $",
      "Marketplace deductible: 4500 $",
      "Marketplace out-of-pocket max: 8500 $",
      "Expected medical spending this year: 6000 $",
      "Months of coverage needed: 12 months"
    ],
    "outputs": [
      "Marketplace saves you (negative = COBRA wins): $2,080",
      "COBRA total for the period: $10,240",
      "Marketplace total for the period: $8,160",
      "Marketplace premium after subsidy: $280",
      "Expected out-of-pocket on COBRA: $1,600",
      "Expected out-of-pocket on marketplace: $4,800"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter cobra monthly premium (with 2% fee) ($).",
      "Enter deductible remaining on current plan ($).",
      "Enter cobra out-of-pocket max remaining ($).",
      "Enter marketplace premium before subsidy ($/month).",
      "Enter estimated monthly premium tax credit ($).",
      "Enter marketplace deductible ($).",
      "Enter marketplace out-of-pocket max ($).",
      "Enter expected medical spending this year ($).",
      "Enter months of coverage needed (months).",
      "Read your marketplace saves you (negative = cobra wins) 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": {
        "cobraPremium": 430,
        "cobraDeductibleLeft": 300,
        "cobraOopMax": 2500,
        "marketPremium": 310,
        "subsidy": 140,
        "marketDeductible": 2750,
        "marketOopMax": 5000,
        "expectedCare": 3500,
        "months": 7
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "cobraPremium": 720,
        "cobraDeductibleLeft": 500,
        "cobraOopMax": 4000,
        "marketPremium": 520,
        "subsidy": 240,
        "marketDeductible": 4500,
        "marketOopMax": 8500,
        "expectedCare": 6000,
        "months": 12
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "cobraPremium": 1150,
        "cobraDeductibleLeft": 800,
        "cobraOopMax": 6500,
        "marketPremium": 830,
        "subsidy": 380,
        "marketDeductible": 7250,
        "marketOopMax": 13500,
        "expectedCare": 9500,
        "months": 18
      }
    }
  ],
  "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": "Can I take COBRA now and switch later?",
      "a": "Voluntarily dropping COBRA mid-year is generally not a qualifying event for a special enrolment period, so you may be stuck until open enrolment. Exhausting the full COBRA period does qualify. Decide deliberately."
    },
    {
      "q": "Does COBRA keep my deductible progress?",
      "a": "Yes — it is the same plan, so amounts already applied to your deductible and out-of-pocket maximum for the plan year carry over. That is often the deciding factor mid-treatment."
    },
    {
      "q": "How is the subsidy calculated?",
      "a": "Premium tax credits are based on household income relative to the federal poverty level and the cost of the benchmark silver plan in your area. Use the marketplace estimator for your exact figure and enter it here."
    },
    {
      "q": "What if I'm offered COBRA and a spouse's plan?",
      "a": "Loss of coverage also opens a special enrolment window on a spouse's employer plan, which is frequently the cheapest option of the three. Price all three before the 30-60 day window closes."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/medical-bill-negotiation-calculator",
    "https://www.revenuelab.fyi/toolbox/medicare-part-b-premium-calculator"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — COBRA vs Marketplace Cost Calculator (https://www.revenuelab.fyi/toolbox/cobra-vs-marketplace-cost-calculator)"
}