COBRA vs ACA Marketplace Cost Calculator
Example: COBRA monthly premium: 650 $ · ACA plan monthly premium (after subsidy): 320 $ · Months of coverage needed: 6 months
| Marketplace saves you | $1,980 |
| COBRA total cost | $3,900 |
| ACA plan total cost | $1,920 |
Worked example
Suppose you need six months of coverage between jobs. COBRA at $650 a month totals $3,900. A subsidized marketplace plan at $320 a month totals $1,920. Choosing the marketplace saves about $1,980 over the gap — money that matters most precisely when your income has dropped. COBRA still wins in specific cases, such as protecting a deductible you have already met or keeping a specialist mid-treatment.
Frequently asked questions
Why is COBRA so expensive?
While employed, your employer typically pays a large share of your premium. With COBRA you pay the entire premium plus up to a 2% administrative fee, so the sticker price jumps even though the plan is identical. That full cost is what surprises most people.
Can I get a subsidy on the marketplace after losing my job?
Often yes. Marketplace premium tax credits are based on your expected annual income, which usually falls after a job loss, so your subsidy — and the net premium you enter here — can be substantial. Estimate the income for the rest of the year, not last year's salary.
When can I switch instead of taking COBRA?
Losing job-based coverage triggers a 60-day Special Enrollment Period to pick a marketplace plan. You do not have to wait for open enrollment. You can also enroll in marketplace coverage instead of electing COBRA, but watch the deadlines carefully.
When is COBRA actually the better choice?
COBRA can win if you have already met a large deductible or out-of-pocket maximum this year, if you are mid-treatment with a specific provider network, or if a particular drug or specialist is only covered well by your current plan. Factor those into the decision, not just the monthly premium.
Does this include out-of-pocket costs?
This tool compares premiums, which is usually where the biggest difference lies. For a complete picture, also compare each plan's deductible, network, and drug coverage — a cheaper premium with a much worse network may not be the better deal.