Losing Job Coverage: Marketplace vs. COBRA

You just left a job and a COBRA packet showed up. It looks like the easy choice — same plan, same doctors, same card. It's also usually the most expensive option on the table.

Why COBRA costs what it costs

On the job, your employer was probably paying 60–80% of the premium. COBRA is that same plan with the employer's share moved to you, plus up to a 2% administrative fee. A plan that cost you $180 a month can cost $750 the month after you leave.

Why the Marketplace usually wins

Losing job coverage triggers a Special Enrollment Period, and because your income likely dropped, your subsidy is often larger than you'd expect. Many people who compare honestly find a Marketplace plan at a fraction of the COBRA premium — sometimes with a lower deductible than the plan they left.

When COBRA is still the right call

• You're mid-treatment with a specialist who isn't in any Marketplace network
• You've already met a large deductible this year — starting over resets it to zero
• Your gap is short: a new job starts in a few weeks and you want zero disruption
• Dependents are mid-care and moving them would be disruptive

The timing trap

Your SEP starts when the job coverage ends — not when COBRA runs out later. If you elect COBRA and then drop it voluntarily in March, you generally cannot switch to a Marketplace plan until the next Open Enrollment. Decide inside the first 60 days.

Send me the COBRA letter and your household income estimate and I'll put both options side by side in plain numbers.

Educational only. Marketplace rules, subsidy amounts, and plan availability change every year and vary by state — confirm current details before you enroll.