COBRA vs Marketplace Cost Calculator
Example: COBRA monthly premium (full employer + employee cost): 1800 $ · COBRA plan annual deductible: 1500 $ · Marketplace plan monthly premium (before subsidy): 650 $ · Marketplace plan annual deductible: 3000 $ · Estimated ACA annual subsidy: 4800 $ · Months without employer coverage: 6 · Expected monthly medical spending: 200 $
| Marketplace saves vs COBRA | $9,300 |
| COBRA total cost over gap | $12,000 |
| Marketplace total cost over gap | $2,700 |
| Monthly spending where COBRA wins | $-1,800 |
Worked example
A 6-month job gap: COBRA at $1,800/month = $10,800 in premiums. Expected $200/month medical spend, deductible of $1,500, so $1,200 in OOP = $12,000 total COBRA cost. Marketplace at $650/month − $400/month subsidy = $250/month net × 6 = $1,500 premium + $1,200 OOP = $2,700 total. Marketplace saves $9,300. COBRA only wins if monthly medical spending exceeds about $500, triggering large OOP savings from the lower COBRA deductible.
Frequently asked questions
When does COBRA make more sense than a marketplace plan?
COBRA preserves your exact doctor and pharmacy network, which matters most if you are mid-treatment for a serious condition or have met a large portion of your annual deductible. If it is late in the calendar year and you have already spent most of your COBRA deductible, the continuity value can exceed the premium cost.
How long do I have to elect COBRA?
You have 60 days from the qualifying event or the date of the COBRA election notice (whichever is later) to elect COBRA. Once elected, coverage is retroactive to the day after your employer coverage ended. You can pay-as-you-go and only pay months where you actually incur claims.
Does a job loss qualify as a Special Enrollment Period for the marketplace?
Yes. Losing employer coverage is a qualifying life event that opens a 60-day Special Enrollment Period on the ACA marketplace. You can enroll in a marketplace plan without waiting for open enrollment — and your subsidy eligibility starts the day your employer coverage ends.
Is COBRA income counted for marketplace subsidy purposes?
No — your subsidy is based on expected MAGI for the calendar year. If you lost your job mid-year, you should estimate income from both your previous employment and any unemployment benefits or new income for the full year. Lower projected income means a higher subsidy.