Compare COBRA continuation coverage costs with ACA marketplace plans to decide which is the most affordable option after leaving a job.
When you lose employer-sponsored health insurance, you typically have two main options: COBRA continuation coverage (keeping your current plan at full cost + 2% admin fee) or purchasing a plan through the ACA marketplace (potentially with premium tax credits).
COBRA lets you keep your exact plan and providers, but you pay the entire premium — including the portion your employer used to cover. This is often a shocking 3–5x increase. A marketplace plan may cost significantly less, especially with premium tax credits, but requires switching plans and possibly providers.
This calculator compares the total cost of COBRA versus marketplace coverage for your situation. These are educational estimates only. Losing your job triggers a Special Enrollment Period for marketplace plans. Whether you are a beginner or experienced professional, this free online tool provides instant, reliable results without manual computation. By automating the calculation, you save time and reduce the risk of costly errors in your planning and decision-making process.
COBRA sticker shock leads many people to go uninsured. But ACA marketplace plans with subsidies are often 50–80% cheaper. This calculator reveals the actual cost difference to help you make an informed choice rather than default to expensive COBRA or no coverage. Having a precise figure at your fingertips empowers better planning and more confident decisions.
COBRA Monthly Cost = Employer Premium × 102% (includes 2% admin fee) COBRA Total = COBRA Monthly × Months Marketplace Monthly = Plan Premium − Tax Credit Marketplace Total = Marketplace Monthly × Months Savings = COBRA Total − Marketplace Total
Result: COBRA: $10,800 | Marketplace: $1,800 | Save $9,000
COBRA at $1,800/month for 6 months = $10,800. Marketplace at $800 − $500 credit = $300/month × 6 = $1,800. The marketplace saves $9,000 over 6 months. Even without a subsidy, marketplace ($4,800) is still much cheaper.
You have 60 days from your COBRA election notice to decide, and coverage is retroactive to your termination date. This means you can wait, compare marketplace options, and only elect COBRA if needed (e.g., if you incur medical expenses during the window). This is a common cost-saving strategy.
If your post-job income will be low (unemployment only), marketplace subsidies can make plans nearly free. If you have severance that keeps income high, subsidies may be smaller. Model both scenarios: immediate marketplace enrollment vs. COBRA bridge until income drops.
Going uninsured to save money is risky. A single ER visit or accident can cost $10,000–$100,000+. Short-term health plans ($100–200/month) offer limited protection but have major exclusions. Marketplace or COBRA are always safer choices than going uninsured.
When employed, your employer typically pays 70–83% of your health insurance premium. Under COBRA, you pay the full premium (both your share and the employer's share) plus a 2% administrative fee. A plan that cost you $300/month could cost $1,500–$2,000 with COBRA.
Yes! Losing job-based coverage qualifies you for a Special Enrollment Period on the marketplace. Your ACA subsidy is based on projected income for the current year, so if you're earning less due to unemployment, you may qualify for significant tax credits.
Yes, unemployment benefits count as income for ACA subsidy calculations. If unemployment benefits are your primary income, your total MAGI may be low enough to qualify for Medicaid (in expansion states) or large marketplace subsidies. Project your full-year income carefully.
If you're in the middle of treatment, have upcoming surgery, or need specific specialists, COBRA preserves your provider network. For a short bridge (1–2 months), the convenience may justify the cost. For longer periods, the cost difference usually favors marketplace plans.
You can switch from COBRA to a marketplace plan during the annual Open Enrollment Period (Nov 1 – Jan 15). However, simply having COBRA doesn't trigger a Special Enrollment Period for the marketplace. Strategy: use COBRA for a month of continuity, then switch if open enrollment aligns.
Federal COBRA applies to employers with 20+ employees. Many states have "mini-COBRA" laws that extend similar rights to employees of smaller companies. Duration and terms vary by state. Check your state's insurance department for small-employer continuation rights.