COBRA vs. ACA Marketplace Coverage
After leaving a job, COBRA lets you temporarily keep your exact employer plan by paying the full premium yourself, while ACA marketplace coverage offers a new plan that may qualify for income-based subsidies.
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COBRA Continuation Coverage
Allows you to continue your exact former employer health plan for a limited period after leaving the job, but you pay the full premium yourself, including the portion your employer previously covered.
- Keeps the exact same plan, doctors, and network with no disruption
- No new deductible if you're mid-year and have already met part of it
- Significantly more expensive than when employed, since the employer subsidy goes away
- Coverage is time-limited, typically to a defined number of months
ACA Marketplace Coverage
A new health plan purchased through the ACA marketplace, with premium subsidies available based on income for many applicants.
- May qualify for meaningful premium subsidies based on household income
- Losing job-based coverage is generally a qualifying event to enroll outside normal open enrollment
- Likely means a new plan, network, and possibly a new deductible
- Subsidy eligibility and amount depend on income and household size, which requires accurate estimation
Which one makes sense for you?
ACA marketplace coverage is often meaningfully less expensive, especially for those who qualify for a subsidy, but it usually means a new plan and network. COBRA preserves continuity with your exact former plan, which can be worth the higher cost for a short bridge period, particularly if you're deep into meeting your deductible.
Key cost factors.
- Estimated household income for the current year, which affects subsidy eligibility
- How far you are into your deductible on the employer plan
- Whether keeping the same doctors and network matters enough to pay COBRA's full cost
- How many months of coverage you actually need before other coverage begins
Before you decide.
- What premium subsidy might I qualify for on the marketplace based on my expected income?
- How much of my deductible have I already met this year on my employer plan?
- How long do I realistically need this bridge coverage to last?
Frequently asked questions.
Can I switch from COBRA to a marketplace plan later if I change my mind?
Generally yes — losing or ending COBRA coverage, or being within your COBRA election period, are typically treated as qualifying events that open a special enrollment window for marketplace coverage, though specific rules can vary, so confirming timing matters.
All figures on this page are illustrative examples for general education, not quotes, appraisals, or guarantees of actual pricing. Actual costs vary by provider, location, project scope, and market conditions — always get a specific quote before making a purchasing decision.
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