Comparison
ACA marketplace vs COBRA
Lost your job? You typically have two options to keep coverage: COBRA (continuing your old employer plan) or the ACA marketplace. ACA is usually dramatically cheaper for subsidized households.
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Request a broker →ACA Marketplace vs COBRA — side-by-side
| Feature | ACA Marketplace | COBRA |
|---|---|---|
| Monthly cost | Often $0–$200/mo with subsidies (varies by income) | Full group premium plus 2% admin — typically $600–$2,500/mo |
| Subsidies | Premium tax credits 100–400%+ FPL | None (some states/employers offer brief assistance) |
| Network | New plan — verify your doctors are in-network | Same exact plan, same network |
| Deductible reset | Resets to $0 on new plan | Continues from existing plan-year totals |
| How long | 12 months at a time, renewable yearly | Up to 18 months (36 in some cases) |
| Enrollment window | 60-day SEP after job loss | 60 days from election notice |
| Coverage start | 1st of the next month typically | Retroactive to coverage loss |
Which is better for you?
Pick ACA marketplace if: your household income qualifies for subsidies, you're flexible on doctors/network, and you don't need to keep an active treatment plan with a specific provider.
Pick COBRA if: you're mid-treatment with an in-network specialist, have already hit your deductible for the year, or need uninterrupted coverage for a planned surgery — and you can afford the full premium.
Hybrid option: elect COBRA retroactively (you have 60 days), use it only if you have a medical event in the gap, then switch to ACA during your SEP.
Frequently asked questions
Is ACA cheaper than COBRA?
For most households that qualify for subsidies, yes — often by thousands per year. COBRA charges the full group premium plus 2%, while ACA caps your premium contribution at a percentage of income.
Can I switch from COBRA to ACA?
Yes. Voluntarily dropping COBRA does not trigger a SEP, but COBRA running out, you exhausting it, or losing it for non-payment does qualify you to enroll in ACA. You can always switch during the next Open Enrollment.
How long after losing my job can I enroll in ACA?
60 days from the date your job-based coverage ends. This is a Special Enrollment Period — apply at HealthCare.gov or your state marketplace.
Does COBRA count as creditable coverage?
Yes — COBRA satisfies any prior coverage requirements and the loss of COBRA at the end of its term is itself a SEP trigger for ACA.
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Sources
The information contained on this website is for educational purposes only. We are not responsible for missing or inaccurate information. Please consult a licensed insurance broker in your state and area for insurance advice. Please consult a CPA for tax or legal advice.