COBRA vs Marketplace Calculator
After job loss — keep employer coverage or switch to ACA marketplace?
Marketplace saves you $6,564/year
$6,564
ACA subsidies (PTC) cap your premium at 0-8.5% of income through 2025+. COBRA is rarely cheaper unless you've already hit deductible/OOP for the year.
When you leave a job, you usually have two ways to stay insured: COBRA (keep your employer plan) or an ACA marketplace plan. COBRA keeps your exact coverage but you pay the full premium — often a shock, since your employer was covering most of it. This calculator compares the real cost of each.
The key factor most people miss: losing job-based coverage is a qualifying event that opens a special enrollment window, and marketplace subsidies based on your new (lower) income can make an ACA plan dramatically cheaper than COBRA.
How this calculator works
The calculator compares your full COBRA premium (the entire cost your employer used to subsidize, plus a small admin fee) against an estimated marketplace premium after income-based subsidies. Because subsidies scale with income — and your income may have dropped — it often reveals a marketplace plan costing far less than COBRA for similar coverage.
What affects the number
- Full COBRA premium (employer + your old share + up to 2% admin)
- Your expected annual income now (drives ACA subsidy size)
- Marketplace plan level (Bronze/Silver/Gold) and local pricing
- Whether you’ve met your deductible this year (COBRA keeps it; a new plan resets it)
- Special enrollment timing — job loss opens a 60-day window
Frequently asked questions
Is COBRA or the marketplace cheaper?
Often the marketplace, especially if your income dropped — ACA subsidies can cut premiums well below COBRA’s full cost. COBRA can still win if you’ve already met your deductible this year or want to keep specific doctors. The calculator compares both for your numbers.
How long do I have to decide on COBRA?
You typically have 60 days to elect COBRA, and it can apply retroactively to your coverage-loss date. Job loss also opens a 60-day special enrollment period for the marketplace — so compare both before the windows close.
Will I lose my deductible progress if I switch?
Usually yes. COBRA continues the same plan, so your met deductible carries over. A new marketplace plan resets your deductible and out-of-pocket maximum — worth weighing if you’ve already spent a lot this year.
This calculator provides general estimates for educational purposes only and is not insurance advice or a quote. Your actual rates and coverage needs depend on your specific situation and insurer.