COBRA vs the marketplace: which costs less for you
Enter the COBRA premium from your election notice and your ZIP, ages, and income. You will see what each option costs for the rest of 2026 — and an honest verdict, including when keeping COBRA is the right call.
How we calculate this
Your COBRA cost is the premium you enter — the real number from your election notice — multiplied by the months you choose. The marketplace side uses the official CMS Marketplace public use files for plan year 2026, the same plan and rate data behind HealthCare.gov: we take the cheapest Silver plan in your area, subtract your estimated premium tax credit per the IRS formula in Rev. Proc. 2025-25, and multiply by the same months. For states that operate their own exchange, we use a state-average benchmark estimate and say so in the results. The verdict compares premiums only — deductible progress and provider networks are called out separately, because they can outweigh a premium gap. All figures are estimates, not quotes.
Frequently asked questions
Why is COBRA so much more expensive than what I paid from my paycheck?
- Because the employer share disappears. COBRA charges the full premium — your old payroll deduction plus everything your employer paid — and the plan can add an administrative charge of up to 2 percent, so the bill can reach 102 percent of the plan’s full cost. The number in your election notice is the real price of the plan; your paycheck deduction never was.
How long do I have to decide between COBRA and a marketplace plan?
- Two separate 60-day clocks run at the same time. You have at least 60 days to elect COBRA, counted from the later of losing coverage or receiving your election notice. Separately, you have 60 days after losing job-based coverage to enroll in a marketplace plan — and you can apply up to 60 days before a known loss. Missing the marketplace window means waiting for Open Enrollment unless another qualifying life event occurs.
When is COBRA the right choice?
- When continuity is worth more than the premium savings. COBRA continues the exact plan you had — same doctors, same prior authorizations, and the same progress toward your deductible and out-of-pocket maximum. If you are mid-treatment, have already met your deductible for the year, or your doctors are not in any marketplace network, keeping COBRA is often the better buy even at a higher monthly premium.
If I take COBRA, can I drop it later for a marketplace plan?
- Only in specific situations. Within 60 days of losing your job-based coverage you can still switch freely. After that, you can leave COBRA for a marketplace plan only when COBRA runs out, when your former employer stops contributing to the premium, or during Open Enrollment, when anyone can switch. Dropping COBRA early just because you found something cheaper does not qualify — so run this comparison before you elect.