COBRA vs Marketplace Cost Calculator

Why is COBRA usually so much more expensive than what I paid while employed?

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.

Do I qualify for marketplace subsidies after losing my job?

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.

Can I switch from COBRA to a marketplace plan later if I elect COBRA first?

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.

How long does COBRA coverage last?

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.