Your decision timeline after a job loss
The rules give you a real, usable window — but it closes. Here's the order of operations:
| What | When |
|---|---|
| Special Enrollment Period to pick a Marketplace plan | Up to 60 days before and 60 days after coverage ends |
| Deadline to elect COBRA | 60 days from coverage loss or your election notice (whichever is later) |
| First COBRA payment due | Up to 45 days after you elect |
| Standard COBRA duration | Up to 18 months |
The "wait and see" strategy
Because COBRA can be elected retroactively to the day your coverage ended — any time within the 60-day window — and your first payment isn't due for up to 45 days after that, you have a hidden option. You can decline COBRA at first, stay technically uninsured for a few weeks while you shop, and if you have a medical event, elect COBRA retroactively to cover it. Many people use the window to enroll in a cheaper subsidized Marketplace plan instead, with COBRA as a fallback.
The trap: don't drop COBRA mid-year expecting to switch
This is the mistake that strands people on an expensive plan. Voluntarily dropping COBRA partway through is not a qualifying event for a Marketplace Special Enrollment Period — you'd generally have to wait until the next Open Enrollment to switch. (Letting COBRA run out after the full 18 months does qualify.) So the COBRA-vs-Marketplace choice is best made up front, during your initial 60-day window, not after you've already started COBRA.
Frequently asked questions
- Is COBRA or the Marketplace cheaper?
- It depends on your income. COBRA is the full group premium plus a 2% fee — often $600–$700+ for one person. A Marketplace plan can be much cheaper if your lower income now qualifies for a premium tax credit; if it doesn't, COBRA can be competitive and keeps your exact plan and met deductible.
- How long do I have to decide?
- 60 days from your coverage loss (or election notice) to elect COBRA, and a 60-day Special Enrollment Period to choose a Marketplace plan. The clocks generally overlap, so you can compare first.
- Can I decline COBRA and still get it later?
- Effectively yes — COBRA is retroactive to your coverage-loss date within the 60-day window, and the first payment isn't due for up to 45 days after electing. That's a built-in "wait and see."
- Does switching reset my deductible?
- Yes — a new Marketplace plan resets your deductible and out-of-pocket max to $0 mid-year. COBRA keeps the same plan and your progress.
- Can I drop COBRA mid-year and switch?
- Usually not until Open Enrollment — voluntarily dropping COBRA isn't a qualifying event. Exhausting COBRA is. Decide up front.
- Does being offered COBRA block a subsidy?
- No. Being offered COBRA doesn't disqualify you from a premium tax credit; you can decline it and take a subsidized Marketplace plan.
Glossary
Plain-English definitions for the terms on this page.
Sources
- U.S. Department of Labor — An Employee's Guide to Health Benefits Under COBRA. dol.gov
- HealthCare.gov — Losing job-based coverage & Special Enrollment Periods. healthcare.gov
- Premium tax credit figures — IRS Rev. Proc. 2025-25, HHS/ASPE 2025 poverty guidelines (see our methodology).
- Cross-check: Kaiser Family Foundation Marketplace Calculator. kff.org