I'm choosing a plan
I lost my job — COBRA or the Marketplace?
Photo: Mikhail Nilov / Pexels
You have 60 days to decide either way. COBRA keeps your same plan but you pay the full premium. The Marketplace may cost less with a subsidy. Compare both before your first COBRA payment.
What to do
- Find the COBRA election notice and note your last day to elect: 60 days from the notice or from the day coverage ended, whichever is later.
- Price COBRA: the full premium (your share plus what your employer paid) plus a fee of up to 2%, all shown on the notice.
- Get a Marketplace quote on HealthCare.gov within 60 days of losing coverage. Savings are based on your expected income for this year, not last year.
- Compare what you have already paid toward this year's deductible. Staying on the same plan through COBRA usually keeps that progress; a new plan usually starts from zero.
What to say
I lost my job coverage on [date]. Can you confirm my last day to elect COBRA, the exact monthly premium, and the date my first payment is due?
Say this to your former employer's HR office or the COBRA administrator named on the notice. Get it in writing.
What to watch out for
This is a sensitive stepSmall details here can change the outcome, and some mistakes are hard to undo. We highly recommend a free 15-minute call with us before you decide.
Missing both 60-day windows at once. And dropping COBRA later by choice does not open a new Marketplace window, so compare the two before you elect, not after.
Better done together
We’re here to help
Losing a job is stressful enough without a deadline on your health coverage. We help you compare COBRA and the Marketplace for your doctors, medications and budget, so you choose before the window closes.
Every situation is different, and these are sensitive moments, so we look at yours with care. We often see what others miss, and we never take commissions from insurance companies: the only thing we are working for is what is right for you.
Free · 15 minutes · No pressure
The rule behind it
COBRA is a federal law that lets you keep your employer plan after leaving a job, usually for up to 18 months, if you pay the full premium plus an administrative fee of up to 2%; it applies to employers with 20 or more employees, and many states have similar rules for smaller ones. Losing job-based coverage is a qualifying life event under the Affordable Care Act, which opens a 60-day Special Enrollment Period on HealthCare.gov or your state's marketplace. Marketplace subsidies depend on household income, and the amounts have changed in recent years, so check HealthCare.gov for the current rules.
Sources
- DOL.gov — COBRA continuation coverage
- DOL.gov — A worker's guide to health benefits under COBRA
- HealthCare.gov — COBRA coverage and the Marketplace
- HealthCare.gov — Special Enrollment Period
- HealthCare.gov — Coverage options if you lose your job
Amanda Alcodia
Education, not medical, legal or insurance advice.
Useful next steps
Start with the free Kit. If your situation needs a person, the intro call is free too.