The week a job ends, two coverage windows open at once. They run on different clocks, they start on different dates, and most people pick before they have priced the alternative.
Here is how to decide properly, in one sitting.
The comparison, honestly
| What changes | COBRA | ACA Marketplace |
|---|---|---|
| Your plan and network | Identical to what you had | New plan, usually narrower network |
| Deductible progress | Carries over for the plan year | Resets to zero |
| Cost | Full premium plus up to 2% administration | After premium tax credit, often far less |
| Subsidy available | No | Yes, if income-eligible |
| Typical duration | 18 months | Ongoing, renewed annually |
| Election window | ~60 days from the notice | ~60 days from loss of coverage |
Why COBRA feels so expensive
Because you are seeing the real price for the first time.
While you were employed, your employer was paying most of the premium. COBRA charges you the full group premium — employer share included — plus an administrative fee of up to 2 percent. Nothing changed about the plan; you are simply now paying all of it.
For a family plan that number can be genuinely shocking, and it is the main reason people who could have kept excellent coverage go uninsured instead.
When COBRA is the right answer
- You are mid-treatment. Changing plans mid-course means changing networks, possibly changing clinicians, and re-establishing prior authorizations.
- You have met most of a large deductible. Starting again at zero in October is a real cost that does not show up in the premium comparison.
- A family member’s care would be disrupted. A pediatric specialist, a mental health provider, an ongoing therapy — continuity has value that is hard to price but easy to feel.
When the Marketplace wins
Most of the rest of the time, and by a wide margin for anyone income-eligible for a premium tax credit.
Two things worth knowing:
Income for the coverage year is projected, not historical. If your income drops because the job ended, your subsidy is based on what you expect to earn this year — not what you earned last year. People routinely assume they earn too much to qualify because they are thinking of their old salary.
Cost-sharing reductions only work on Silver. This is the most commonly forfeited benefit on the Marketplace. If your household is income-eligible, a Silver plan gets a lower deductible, lower copays and a lower out-of-pocket maximum — sometimes better cost sharing than a Gold or Platinum plan. Choosing Bronze to save on premium gives it all up.
The ACA subsidy estimator shows where your household sits against the poverty level and whether cost-sharing reductions are in range.
If you are 65 or older, stop and call
COBRA does not protect your Medicare enrollment
Electing COBRA at or after 65 does not preserve your Part B Special Enrollment Period. COBRA is generally not treated as active employer coverage for that purpose.
People who assume otherwise end up with both a coverage gap and a lifetime Part B penalty. Call before you sign the election form.
Write down both deadlines
They start on different dates:
- The Marketplace Special Enrollment Period typically runs 60 days from the loss of coverage.
- The COBRA election window typically runs 60 days from the date of the election notice, which usually arrives later.
Both usually require documentation. And both are easy to lose — people spend the first month after a job ends dealing with everything else and find the window with two weeks left.
Two other routes worth checking
A spouse’s employer plan. Your loss of coverage is a qualifying event on their plan too, with its own window. Sometimes it is the cheapest option available and nobody thinks to ask.
Medicaid. At a materially reduced income, eligibility may apply where it did not before. It is worth checking rather than assuming.
Do it before the last day, not after
If you know a job is ending, call before it does. Working backwards from the last day of coverage means the new plan can start the following day with no gap at all — which is a much better position than reconstructing it three weeks later.
Losing employer coverage is a free service and it takes one conversation. The full detail is in the ACA subsidies guide.
Frequently asked questions
How long do I have to decide?
Typically 60 days from the loss of coverage for a Marketplace Special Enrollment Period, and typically 60 days from the COBRA election notice for COBRA. The two clocks start on different dates, which is why writing both down matters.
Can I elect COBRA and switch to a Marketplace plan later?
Losing COBRA because it runs out is a qualifying event. Voluntarily dropping it mid-term generally is not, which means waiting for Open Enrollment. Choose deliberately at the start rather than assuming you can change your mind in month four.
Is COBRA ever the better choice?
Yes — when you are mid-treatment with a specific team, when you have already met most of a large deductible, or when a family member’s care would be disrupted by a network change.