How much does COBRA cost?

Under COBRA you pay the entire premium — your old share plus the part your employer used to cover — plus up to a 2% administrative fee, for 102% of the plan's full cost. Because employers typically paid the majority of the premium, COBRA often costs three to five times what you paid as an employee, even though it's the same plan.

How long does COBRA last?

For a job loss or reduction in hours, COBRA generally lasts up to 18 months. Certain other qualifying events (such as divorce, a dependent aging off the plan, or the death of the covered employee) can extend continuation coverage to up to 36 months, and a disability determination can extend the 18-month period to 29 months.

Is COBRA or a Marketplace plan better after losing a job?

It depends. COBRA keeps your exact plan, doctors, and any deductible you've already met this year, but you pay the full premium with no subsidy. A Marketplace plan may qualify for a premium tax credit that makes it far cheaper, but it's a new plan with a fresh deductible. If you've already met a large deductible or are mid-treatment, COBRA can win; if you'd qualify for a meaningful subsidy and haven't used much of your deductible, the Marketplace usually wins.

Can I drop COBRA and switch to a Marketplace plan mid-year?

Voluntarily dropping COBRA in the middle of the year is not a qualifying event for a Marketplace Special Enrollment Period — you'd generally have to wait for Open Enrollment. However, letting COBRA run out (exhausting your maximum coverage period) does qualify you for a Special Enrollment Period. To switch to a subsidized plan, the time to decide is during your initial 60-day election window.

Is COBRA Worth It? COBRA vs. the Marketplace After a Job Loss (2026)

By the CoverageMath team Reviewed against the U.S. DOL COBRA guide & HealthCare.gov Last reviewed June 15, 2026

Lose your job-based coverage and you'll usually get a COBRA notice within a couple of weeks — often with a startling price tag. COBRA keeps the exact plan you had, but you pay the full freight. A Marketplace plan might cost a fraction with a subsidy, but it's a fresh start. Here's how to decide, and the deadlines you can't miss.

The short version

COBRA = your same plan, but you pay 102% of the full premium (no employer share) — often 3–5× what you paid before.
It generally lasts up to 18 months after a job loss.
A job loss opens a 60-day Special Enrollment Period to buy a (possibly subsidized) Marketplace plan instead.
COBRA wins if you've met a big deductible or are mid-treatment; the Marketplace usually wins if you'd get a real subsidy and haven't used much deductible.

What COBRA is

COBRA (from a 1985 federal law) lets you keep your employer's group health plan for a limited time after you'd otherwise lose it — most commonly after losing your job or having your hours cut. The plan, network, and benefits are identical to what you had. What changes is the bill: your employer stops chipping in.

What COBRA costs (the 102% rule)

As an employee, you saw only your share of the premium — your employer quietly paid most of it. On COBRA, you pay the entire premium (your share + the employer's share) plus up to a 2% administrative fee. That's the "102%" you'll hear about: 102% of the plan's full cost.

Because employers often cover 70–80% of the premium, the sticker shock is real — the same plan that cost you $150/month as an employee can be $650 or more on COBRA. Nothing about your coverage got better; you're just now paying the part you never saw.

How long it lasts

18 months for the common case — job loss or reduced hours.
Up to 36 months for certain other events (divorce or legal separation, a dependent aging off the plan, the death of the covered employee).
29 months if the Social Security Administration determines you're disabled during the first 60 days of COBRA.

COBRA is a bridge, not a permanent solution — which is part of why comparing it to a Marketplace plan early matters.

Compare the real monthly cost

Our COBRA vs Marketplace Calculator puts your COBRA premium next to a subsidized Marketplace plan for your income and county — and flags the deductible-reset catch most comparisons skip.

Compare COBRA vs Marketplace →

Your Marketplace alternative

Losing job-based coverage is a qualifying life event: it opens a 60-day Special Enrollment Period to buy an ACA Marketplace plan (the window can even start up to 60 days before your coverage ends). Two things people often don't realize:

Being offered COBRA does not disqualify you from a subsidy. You can decline COBRA and buy a Marketplace plan with a premium tax credit instead. (Only being enrolled in other coverage, like a new employer's plan, blocks the credit — COBRA you turn down doesn't.)
Your income just dropped. After a job loss your expected income for the year is often lower — which can mean a substantial subsidy that makes a Marketplace plan far cheaper than COBRA.

Which one wins

There's no universal answer — it's a trade-off between keeping what you have and paying less.

COBRA tends to win when:

You've already met a big chunk of your deductible or out-of-pocket maximum this year (switching plans resets it to $0).
You're mid-treatment, or have specific doctors/specialists you can't risk losing from the network.
You don't qualify for much of a subsidy, so the Marketplace isn't much cheaper anyway.

A Marketplace plan tends to win when:

Your lower income qualifies you for a meaningful premium tax credit.
You haven't used much of your deductible yet, so a reset costs little.
You're comfortable with a different plan or network to save money.

The deductible reset is the catch most comparisons skip: staying on COBRA carries forward any deductible you've already met this year, while a new Marketplace plan starts you over at $0.

The windows you can't miss

60 days to elect COBRA, counted from the later of your coverage-end date or the date you receive the election notice. Election is retroactive to when coverage ended.
45 days to make your first COBRA payment after electing.
60-day Marketplace Special Enrollment Period for the job-loss event.

One clever consequence: because COBRA can be elected retroactively and the first payment isn't due for up to 45 days, you can decline COBRA now and still elect it later within the window if you have a medical claim — a built-in "wait and see" option. Just don't let the Marketplace SEP lapse while you wait.

The mid-year switch trap

This one costs people real money: voluntarily dropping COBRA in the middle of the year is not a qualifying event for a Marketplace Special Enrollment Period. Elect COBRA, change your mind in March, and you generally can't get a subsidized Marketplace plan until the next Open Enrollment. (Letting COBRA run out — exhausting the full period — does qualify.) So the real decision point is your initial 60-day window, not later.

Run the comparison

Enter your COBRA premium, income, household, and ZIP code to see both monthly costs side by side, including the subsidy you'd get on the Marketplace.

Open the COBRA vs Marketplace Calculator →

Frequently asked questions

Why is COBRA so expensive?

You're now paying the employer's share of the premium too — plus a 2% admin fee — for 102% of the full cost. The plan didn't change; the part you never saw is now yours.

Can I get an ACA subsidy if I'm offered COBRA?

Yes. Being offered (or even electing) COBRA doesn't disqualify you from a premium tax credit on a Marketplace plan — you just can't be enrolled in both.

How long do I have to decide?

60 days to elect COBRA (retroactive), and a 60-day Marketplace Special Enrollment Period for the job loss. Decide within that initial window — switching later usually isn't allowed.

Does COBRA count as minimum essential coverage?

Yes — COBRA is qualifying coverage. The question is cost and fit, not whether it counts.

Sources

U.S. Department of Labor — An Employee's Guide to Health Benefits Under COBRA
HealthCare.gov — Losing job-based coverage & COBRA and the Special Enrollment Period list
Statute — ERISA, 29 U.S.C. §§ 1161–1169 (COBRA continuation)

How our comparison math works (the 102% rule, subsidy reuse, deductible carryover) is on our methodology page. Educational only — not insurance or tax advice.