Losing employer coverage

Your three main options

You have real choices when you lose coverage. Picking the right one depends on your household income, how long you need coverage, and whether you have ongoing medical needs.

• ACA Marketplace with subsidy — usually cheapest for households under ~$150K, keeps pre-existing condition protection, works year-round after your SEP
• COBRA — same plan you had at work, but you pay the full premium (often $700–$2,000+/month for a family). No subsidy available while on COBRA.
• Short-term medical — cheapest premium, but not ACA-compliant. Can deny pre-existing conditions and doesn't cover maternity or mental health parity.
• Spouse's employer plan — if available, this is often the simplest answer and triggers its own Special Enrollment Period.

The COBRA trap most people fall into

Once you actually enroll in COBRA, you generally lose the option to switch to a subsidized Marketplace plan mid-year — you'd have to wait until COBRA runs out or the next Open Enrollment. Deciding wrong at day 45 can lock you into an expensive plan for the rest of the year.

• Being offered COBRA does NOT disqualify you from a Marketplace subsidy
• Actually enrolling in COBRA usually does (with limited exceptions)
• COBRA lasts up to 18 months in most cases (36 for certain qualifying events)
• You can drop COBRA later, but that doesn't create a new SEP — you'd wait for Open Enrollment

The 60-day clock

Your Special Enrollment Period starts the day your job-based coverage ends. Enroll before the 15th of the month for coverage the 1st of the next month. Wait too long and you can end up with a coverage gap — or miss the window entirely and be stuck without ACA options until November.

Who each path fits

There isn't one right answer — here's how to think about which path matches your situation.

• Household income under ~$150K → ACA Marketplace with subsidy almost always wins
• High-income household + specific ongoing treatment → COBRA may be worth it to keep the same network
• Healthy, need 1–3 months of coverage before a new job's plan starts → short-term medical is often the cheapest bridge
• Turning 65 within 6 months → short-term medical bridge until Medicare starts

What we do for you

We compare your COBRA continuation notice against real Marketplace subsidies for your household, verify your current doctors are in-network on the alternatives, and get you enrolled before the SEP clock runs out. Fifteen minutes on the phone typically saves a family several thousand dollars in the first year.