Updated for 2027
I lost my job. Should I take COBRA or a Marketplace plan?
For many people a Marketplace plan costs less than COBRA, because COBRA usually means paying the full premium your employer used to share, while Marketplace savings are based on your income for the year. Which one is better for you depends on what you expect to earn this year, whether you have already met this year’s deductible, and whether your doctors are in the plan’s network. Losing job coverage gives you 60 days to pick a Marketplace plan, and you also have at least 60 days to elect COBRA, so you have time to compare before you decide.
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Common questions
How long do I have to sign up after losing job coverage?
You have 60 days after your job coverage ends to choose a Marketplace plan, and you can apply up to 60 days before it ends if you know the date. For COBRA, you have at least 60 days to elect it, counted from the later of your notice date or the date your coverage ends. If your employer is small, your state may have its own continuation rules.
Why does COBRA usually cost more?
COBRA keeps your same plan, but you pay the whole premium yourself, plus up to a 2 percent fee. Your employer usually paid a large share of that premium while you worked there.
Can I switch from COBRA to a Marketplace plan later?
Yes, during Open Enrollment each year, or when your COBRA coverage runs out. If you drop COBRA early on your own outside Open Enrollment, that usually does not open a new window to enroll.
Does unemployment income count?
Yes. Unemployment benefits and severance count as income when the Marketplace figures your savings. Use your best estimate for the whole year, and update it if things change.
What if my income is very low this year?
Depending on your state and your income, you may be able to get Medicaid instead. When you apply, the Marketplace checks for Medicaid too, and Medicaid enrollment is open all year.
General information, not tax or legal advice. Rules, savings and plan choices vary by state and household.