COBRA vs Marketplace Calculator

After leaving a job you can keep your group plan through COBRA or buy a Marketplace plan. Enter both monthly premiums and how many months of coverage you need to see which costs less.

Worked Example

Sample input: COBRA monthly premium ($, full group cost): 650, Marketplace monthly premium ($, after any subsidy): 450, Months of coverage needed: 6

Savings from the cheaper option: 1200 (Marketplace is cheaper)

Over 6 months, COBRA would cost about $3,900 and the Marketplace plan about $2,700 — choosing the Marketplace plan saves roughly $1,200. Job loss opens a Marketplace special-enrollment period, and income-based subsidies often tip the choice toward the Marketplace.

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Frequently Asked Questions

Why is COBRA so expensive?

With COBRA you pay the FULL premium your employer was paying plus your share, and the plan may add up to a 2 percent administrative fee — up to 102 percent of the group cost, per the U.S. Department of Labor. You lose the employer subsidy that made it cheap on the job.

Can I get a Marketplace plan after losing my job?

Yes. Losing job-based coverage triggers a 60-day Special Enrollment Period to buy a Marketplace plan, per HealthCare.gov. You do not have to wait for open enrollment.

Would I qualify for a subsidy?

Possibly. Marketplace premium tax credits are based on your expected annual income, which is often lower after a job loss. A subsidy can make a Marketplace plan far cheaper than COBRA — enter your subsidized premium above to compare (HealthCare.gov).

When does COBRA make sense?

COBRA can be worth the higher cost if you have already met your deductible or out-of-pocket maximum this year, are mid-treatment with specific doctors, or only need a short bridge before new coverage starts (the U.S. Department of Labor).

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