Losing job coverage · COBRA
COBRA or a Marketplace plan: how to decide
COBRA keeps the plan you know, usually at full price. A Marketplace plan may cost less, especially if income drops. The deadlines matter more than anything else.
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- Up to 102% of cost
- 18 months (job loss)
- 60-day windows
Compare COBRA with my options
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Side by side
| COBRA | Marketplace plan | |
|---|---|---|
| Who offers it | Group plans of employers with at least 20 employees (plus state and local governments)[1] | Anyone eligible for the Marketplace |
| Cost | Up to 102% of the plan’s cost[1] | Depends on plan; premium tax credits based on income[1] |
| How long | 18 months after job loss or cut in hours; longer for some events[1] | Renews yearly |
| Deadline | At least 60 days to elect; 45 days after electing to make the first payment[1] | Pick a plan within 60 days before or after losing job-based coverage[1] |
Switching later: the rules
- During Open Enrollment you can move from COBRA to a Marketplace plan for any reason.[2]
- Outside Open Enrollment you can switch if your COBRA is running out, if you must pay the full cost because your former employer stops contributing, or if you’re still within 60 days of losing job-based coverage.[2]
- If you choose to end COBRA early, you generally wait until the next Open Enrollment, unless you have another life event.[2]
- When COBRA runs out, you have 60 days to enroll in a Marketplace plan.[2]
Good to know
- Being offered COBRA doesn’t make you ineligible for a Marketplace plan or a tax credit.[1]
- COBRA can bridge a gap: you can elect it to stay covered until Marketplace coverage starts.[1]
- Employer under 20 employees? DOL notes that many states have similar “mini-COBRA” laws; ask the state insurance regulator (in Michigan, DIFS) what applies.[1]
- For 2027 coverage, tax credits generally stop above 400% of poverty[3] ($63,840 for one person, $132,000 for four, on the 2026 guidelines).[4]
Just lost your job? See health insurance after a job loss and the Special Enrollment Period.
Sources
- U.S. Department of Labor, EBSA, An Employee’s Guide to Health Benefits Under COBRA (September 2022). https://www.dol.gov/sites/dolgov/files/ebsa/about-ebsa/our-activities/resource-center/publications/an-employees-guide-to-health-benefits-under-cobra.pdf
- HealthCare.gov, COBRA coverage when you’re unemployed. https://www.healthcare.gov/unemployed/cobra-coverage/
- 26 U.S.C. §36B and notes (Pub. L. 119-21 §71305, effective for tax years after Dec. 31, 2025), Cornell LII. https://www.law.cornell.edu/uscode/text/26/36B
- HHS ASPE, 2026 Poverty Guidelines (used for 2027 coverage). https://aspe.hhs.gov/topics/poverty-economic-mobility/poverty-guidelines
Checked October 16, 2026. 2027 Marketplace plans and final 2027 rates aren’t published yet; we’ll update this page when they are.
Frequently asked questions
How much does COBRA cost?
A plan can charge up to 102% of the cost of coverage: the full premium, including the part your employer used to pay, plus 2% for administration.
How long does COBRA last after a job loss?
18 months after termination or a reduction in hours. Some events allow longer.
Can I drop COBRA and get a Marketplace plan?
During Open Enrollment, yes. Outside it, ending COBRA early by choice generally doesn't qualify you for a Special Enrollment Period.
Does being offered COBRA stop me from getting a subsidy?
No. Being offered COBRA doesn't make you ineligible for Marketplace coverage or a tax credit.
Will you sell my information?
No. Your information goes to Nexus Benefit Solutions only and is never sold.