COBRA vs a Marketplace plan after you lose job-based coverage
COBRA lets you keep your exact employer plan, usually for up to 18 months, but you can be charged up to 102% of the full premium, including the part your employer used to pay. A Marketplace plan may cost less, especially if you qualify for a premium tax credit, but you'd change plans and start a new deductible. Losing job-based coverage gives you a 60-day Special Enrollment Period for the Marketplace, even if you're offered COBRA. Dropping COBRA voluntarily later doesn't give you a new one outside Open Enrollment.
COBRA in a nutshell
- COBRA generally applies to group health plans of employers with 20 or more employees (many states have "mini-COBRA" laws for smaller employers).
- After a job loss or reduction in hours, coverage generally lasts up to 18 months; some events allow longer.
- The plan can charge you up to 102% of the cost of coverage.
- You keep the same plan, network and doctors, and the money you've already paid toward this year's deductible and out-of-pocket maximum still counts.
- You usually have 60 days to elect COBRA, and coverage is retroactive to when your job-based coverage ended if you elect and pay.
Side-by-side
| COBRA | Marketplace plan | |
|---|---|---|
| Same doctors and plan | Yes | Maybe; check networks |
| Deductible progress this year | Keeps counting | Starts over |
| Monthly cost | Up to 102% of full premium | Depends on plan, age, location and income |
| Premium tax credit | No, if you're enrolled in COBRA | If eligible |
| How long | Usually up to 18 months | Renew each year |
Deadlines that matter
- Marketplace: you have 60 days from losing job-based coverage to enroll with a Special Enrollment Period (and you can report it up to 60 days before).
- Ending COBRA: if you voluntarily drop COBRA or stop paying outside Open Enrollment, you won't qualify for a Special Enrollment Period. If your COBRA runs out, you do qualify, and HealthCare.gov says you may also qualify if your former employer stops contributing and you have to pay the full cost.
- During Open Enrollment you can switch from COBRA to a Marketplace plan for any reason.
A simple way to decide
- Get your COBRA monthly price from the election notice.
- Preview Marketplace plans and your estimated tax credit on HealthCare.gov, using your expected income for the rest of the year.
- Factor in deductible progress: if you've nearly met this year's deductible, staying on COBRA until December can make sense.
- Run both through our total cost calculator.
Turning 65 soon? COBRA doesn't delay your Medicare Part B deadline. See Medicare enrollment periods.
Frequently asked questions
How much does COBRA cost?
The plan can charge up to 102% of the full cost of coverage, which includes the share your employer used to pay plus a 2% administrative fee.
How long does COBRA last?
Generally up to 18 months after a job loss or reduction in hours. Certain events, like disability or a second qualifying event, can extend it.
Can I switch from COBRA to a Marketplace plan?
Yes, within 60 days of losing job-based coverage, during Open Enrollment, or when COBRA runs out (and possibly when your former employer stops contributing). Voluntarily dropping COBRA at other times doesn't qualify for a Special Enrollment Period.
Can I get a premium tax credit while on COBRA?
Not for months you're enrolled in COBRA. Being offered COBRA but not enrolling doesn't block a tax credit for Marketplace coverage.
Does COBRA count as coverage for delaying Medicare?
No. COBRA isn't coverage based on current employment, so it doesn't extend your Medicare Part B enrollment window.
Sources
- U.S. Department of Labor: FAQs on COBRA Continuation Health Coverage for Workers (accessed October 28, 2026)
- HealthCare.gov: COBRA coverage when you're unemployed (accessed October 28, 2026)
- HealthCare.gov: Getting health coverage outside Open Enrollment (accessed October 28, 2026)
- IRS: Questions and answers on the Premium Tax Credit (accessed October 28, 2026)
- Medicare.gov: When can I sign up for Medicare? (accessed October 28, 2026)