Updated November 2026. When you leave a job, you usually have two ways to keep health insurance: continue your employer’s plan through COBRA, or buy an individual plan on the ACA Marketplace. COBRA keeps your exact plan, doctors and deductible progress, but you pay the full premium plus a 2% fee. A Marketplace plan means a new plan and network, but it may cost far less if you qualify for a premium tax credit.
The price gap can be large. Based on average 2025 employer premiums from KFF, COBRA for a family plan would cost about $2,294 a month, and single coverage about $793, a Health Plan News estimate at the 102% COBRA rate.
COBRA vs Marketplace at a Glance
| Feature | COBRA | ACA Marketplace |
|---|---|---|
| Plan and doctors | Same employer plan | New individual plan, often a narrower network |
| Cost | Up to 102% of the full premium | Varies; premium tax credits available based on income |
| Deductible progress | Kept | Starts over |
| How long | 18 months; up to 29 or 36 months in some cases | As long as you remain eligible |
| Deadline to sign up | At least 60 days to elect | 60 days from losing job-based coverage |
| Can cover spouse and children | Yes, each has independent rights | Yes |
COBRA Rules
COBRA applies to private employers with 20 or more employees and to state and local government plans. Many states have “mini-COBRA” laws for smaller employers. Under the Labor Department’s rules:
- Coverage lasts 18 months after a job loss or cut in hours.
- A disability can extend it to 29 months, at up to 150% of the premium for the extra months.
- Spouses and children can keep it up to 36 months after a divorce, death or loss of dependent status.
- You get at least 60 days to elect COBRA and 45 days after electing to make the first payment.
- Coverage is retroactive, so you can wait and elect it only if you need care during the election window.
Marketplace Special Enrollment Rules
Losing job-based coverage opens a 60-day special enrollment period on HealthCare.gov or your state’s exchange. The timing rules trip people up:
- You can choose a Marketplace plan instead of COBRA, or switch from COBRA to the Marketplace within 60 days of losing job coverage.
- When your COBRA runs out, you get another 60-day window.
- If you drop COBRA voluntarily, or stop paying, you cannot enroll in a Marketplace plan until Open Enrollment.
- Your premium tax credit is based on expected income for the calendar year, which may be low in a year you lost a job.
When COBRA Makes Sense
- You have met most of your deductible or out-of-pocket maximum for the year.
- You are in the middle of treatment, pregnancy or surgery with doctors in your employer’s network.
- Your former employer is paying part of COBRA as severance.
- You expect a new job with coverage within a few months.
- Your income is too high for meaningful tax credits.
When the Marketplace Makes Sense
- Your income for the year qualifies you for a premium tax credit.
- You are healthy and comfortable with a new network.
- You need coverage longer than 18 months.
- Your income is low enough for Medicaid, which you can apply for at any time.
Premium tax credits shrank in 2026 after the expanded credits expired; our ACA enrollment by state page shows average net premiums in every state. For other options, see our guides to temporary health insurance and individual health insurance plans.
Sources
U.S. Department of Labor, An Employee’s Guide to Health Benefits Under COBRA; HealthCare.gov, COBRA coverage and the Health Insurance Marketplace; KFF, 2025 Employer Health Benefits Survey.