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COBRA Cost Estimate
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Employer Was Paying—
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Marketplace Plan Estimate—
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Understanding COBRA Coverage
COBRA (Consolidated Omnibus Budget Reconciliation Act) lets you keep your employer-sponsored health insurance for up to 18 months after leaving a job (36 months in some cases). The catch: you pay the full premium — both the employee and employer shares — plus a 2% administrative fee. This typically means 3–5× what you paid as an employee.
When to Choose COBRA
- You're in the middle of ongoing medical treatment and want to keep your current doctors
- Your employer plan has better coverage than marketplace alternatives
- You're only between jobs for a short time (1–3 months)
- You have dependents with specific covered medical needs
COBRA Alternatives to Consider First
- Healthcare.gov marketplace: Job loss is a qualifying life event — you have 60 days to enroll. May be significantly cheaper with ACA subsidies if your income qualifies.
- Spouse/partner's employer plan: Losing coverage is a qualifying event to join mid-year
- Medicaid: If income drops significantly, you may qualify for free or low-cost Medicaid
- Short-term health plans: Cheaper but offer limited coverage — not recommended for ongoing conditions
Frequently Asked Questions
How long do I have to elect COBRA? ▼
You have 60 days from losing coverage (or receiving the COBRA notice) to elect COBRA. You can wait the full 60 days before deciding — coverage is retroactive to the date you lost it. This means if you don't get sick, you can waive COBRA and save the money. If you do get sick before deciding, you can still elect retroactively and pay back premiums to activate coverage.
Can I get an ACA subsidy if I turn down COBRA? ▼
Yes. Turning down COBRA doesn't affect your ACA marketplace eligibility. If your income qualifies (generally 100–400% of the federal poverty level), you may receive substantial premium tax credits that make marketplace plans much cheaper than COBRA. Use healthcare.gov to see your subsidy estimate — many people are surprised by how affordable marketplace coverage is with subsidies.