COBRA vs Marketplace Calculator
Compare COBRA continuation coverage against a subsidized ACA marketplace plan to see which costs less after leaving a job.
How it works
Net marketplace = max(0, marketplace premium − subsidy) · COBRA total = COBRA × months · Compare totals over the coverage period
When you leave a job, COBRA lets you keep your exact employer plan — same doctors, same met deductible — but you now pay the full premium plus a 2% fee, which is often shocking. An ACA marketplace plan is a fresh policy; losing job-based coverage triggers a special enrollment period, and premium tax credits based on your expected income can cut the cost sharply. Beyond price, weigh whether switching resets your deductible mid-year and whether your providers are in the new network.
Worked example
COBRA runs $650/month. A marketplace plan is $500 but a $250 subsidy nets it to $250. Over six months COBRA costs $3,900 versus $1,500 for the marketplace plan — a $2,400 saving, provided your doctors are in-network.
Frequently asked questions
Is COBRA or a marketplace plan cheaper?
Usually the marketplace, once ACA premium tax credits are applied, because COBRA charges the full unsubsidized premium plus a 2% fee. But if you have already met your deductible for the year or need to keep specific doctors, COBRA can be worth the extra cost.
Can I switch from COBRA to a marketplace plan?
Losing job coverage opens a 60-day special enrollment window for the marketplace. Voluntarily dropping COBRA later does not, but exhausting your COBRA period does — so time a switch to open enrollment or a qualifying event.
Does COBRA keep my deductible?
Yes — COBRA is a continuation of the same plan, so any deductible and out-of-pocket amounts you already met this year carry over. Switching to a marketplace plan mid-year usually resets those to zero.
Related calculators
Educational estimate, not insurance or financial advice — real premiums and coverage depend on underwriting, your state and the specific policy.