Losing a job-based health plan gives you two paths: keep it via COBRA, or shop the Marketplace. Here's how to actually decide.
Written & fact-checked by the CoverFormula editorial team · Last reviewed 2026-07-29
When you lose job-based coverage, your former employer is required to offer COBRA continuation — but the sticker shock is real, because you suddenly pay both your own payroll deduction and the portion your employer used to cover, plus a 2% administration fee. What most people don't realize is that losing job-based coverage also triggers a Special Enrollment Period for the ACA Marketplace, meaning COBRA is never your only option.
COBRA keeps your exact same plan, doctors, and network — no new deductible, no re-shopping for coverage. The ACA Marketplace usually costs less on paper because of income-based subsidies, but it may mean a new plan, a new network, and a fresh deductible.
You have 60 days from your qualifying event (or from the COBRA election notice, whichever is later) to elect COBRA — and that election is retroactive to your coverage-loss date. A common approach: wait through the window without paying anything. If a medical bill or claim comes in, elect COBRA retroactively and it covers the gap. If nothing comes up, let the window close and enroll in a Marketplace plan through your Special Enrollment Period instead. This isn't a loophole — it's how the two systems are designed to interact.
The only way to know which option is actually cheaper for your situation is to calculate both: your true COBRA premium (payroll deduction + employer contribution + 2% fee) and your subsidized Marketplace premium (based on household income, size, and state). Our COBRA vs. Marketplace Calculator runs both estimates side by side using the published FPL guidelines and ACA contribution formula, entirely in your browser.