COBRA vs Marketplace Plan — What's the Difference?
After losing job-based coverage, you can continue your exact employer plan via COBRA or switch to an ACA Marketplace plan. COBRA keeps your current doctors but is expensive. Marketplace plans are often cheaper, especially with subsidies.
| COBRA | Marketplace Plan | |
|---|---|---|
| What plan you get | Your exact current employer plan | New individual/family plan |
| Cost | Full premium + 2% admin fee (often $500–$700/month) | Varies; subsidies can make it $0–$200/month |
| Subsidy eligible | No | Yes — if income qualifies |
| Keep current doctors | Yes (same network) | Depends on plan chosen |
| Deductible | Continues from where you left off | Resets with new plan |
| Duration | Up to 18 months | Ongoing annual renewal |
| Enrollment deadline | 60 days from coverage loss | 60 days from coverage loss (SEP) |
| Best for | Close to deductible met; want same doctors short-term | Lower income; want lower premiums |
Bottom line
If you qualify for ACA subsidies (most people who lost job-based income do), a Marketplace plan will almost certainly be cheaper than COBRA. COBRA makes sense if you want to keep your exact plan and providers short-term, or if you're close to meeting your deductible.
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