How long do I have to decide between COBRA and Marketplace after job loss?

You have 60 days from losing coverage (or receiving your COBRA election notice) to elect COBRA. You also have 60 days from losing coverage to enroll in a Marketplace plan via Special Enrollment Period. These windows overlap.

Can I switch from COBRA to Marketplace later?

Yes. Losing COBRA coverage (or voluntarily dropping it) is a qualifying life event that triggers a new 60-day Special Enrollment Period for the Marketplace.

What if I get a new job while on COBRA or Marketplace?

Getting a new job with employer health coverage is a qualifying event. You can drop your Marketplace or COBRA coverage when the new employer coverage starts. You should notify your Marketplace plan within 30 days.

COBRA or Marketplace After Job Loss: How to Decide

Losing your job is stressful — and figuring out health insurance shouldn't add to it. Here's a clear framework for deciding between COBRA and a Marketplace plan.

What is COBRA?

COBRA lets you keep your exact employer health plan for up to 18 months after leaving your job. The catch: you pay the full premium — both your share and what your employer was paying — plus a 2% administrative fee. This often adds up to $400–$700/month for individual coverage or $1,200–$2,000+ for families.

Your Marketplace option

Losing job-based coverage triggers a 60-day Special Enrollment Period for ACA Marketplace plans. Based on your projected income (including unemployment benefits), you may qualify for significant premium subsidies — sometimes making plans cost $0–$100/month. Use our COBRA vs Marketplace Calculator to compare your specific situation.

When COBRA makes sense

Choose COBRA if: you're mid-treatment and need to keep your specific doctors or hospital, you've nearly met your annual deductible and expect significant upcoming medical costs, you expect new employer coverage within 1–3 months, or your income is high enough that Marketplace subsidies are minimal.

When Marketplace makes sense

Choose Marketplace if: your income qualifies for meaningful ACA subsidies (below 400% FPL, or even above with enhanced rules), you don't have ongoing treatments requiring specific providers, or you're open to new plan options and networks.

You can elect COBRA retroactively

A crucial detail: if you elect COBRA within the 60-day window, coverage is retroactive to the day your employer coverage ended. This means you can wait 59 days, see if you get sick, and then elect COBRA retroactively. Just be ready to pay all back premiums at once.