Why COBRA costs so much
COBRA lets you keep your former employer's plan, usually for up to 18 months. It feels expensive because, while you were working, your employer was probably paying most of the premium. On COBRA you pay the whole thing, plus up to 2% for administration. Nothing changed about the plan. You're just seeing the full bill for the first time.
When COBRA is worth it
- You're mid-treatment, like pregnancy, surgery or cancer care, and need the same doctors.
- You've already met most of your deductible for the year. A new plan starts you at zero.
- Your income is too high for a tax credit and comparable individual plans cost about the same.
- The gap is short and you'll have new job coverage soon.
When a Marketplace plan wins
- Your income will drop this year, so you may qualify for a sizable tax credit.
- You're covering a family on a full-price COBRA family premium.
- Your doctors are in a Marketplace plan's network.
Note: you can't get a Marketplace tax credit for months you're enrolled in COBRA.
The 60-day election window
You generally have 60 days from your COBRA notice (or the date coverage ended, whichever is later) to elect it, and coverage is retroactive. That gives you time to shop. If you enroll in a Marketplace plan within your 60-day Special Enrollment Period and never need care during the gap, you may never pay for COBRA. If something happens, you can still elect COBRA and pay the premiums back to the start. Read your notice carefully and don't miss the deadline.
The timing trap
Once you elect COBRA, dropping it voluntarily in the middle of the year does not open a new Special Enrollment Period. Your windows to move to the Marketplace are:
- Within 60 days of losing your job coverage
- During Open Enrollment (starts November 1)
- When your COBRA coverage runs out completely
Quick comparison
| COBRA | Marketplace plan | |
|---|---|---|
| Same doctors and plan | Yes | Depends |
| Deductible progress | Kept | Starts over |
| Tax credit | No | Possible, based on income |
| How long | Usually up to 18 months | As long as you're eligible |
| Typical cost | Full premium + up to 2% | Varies with income |
Frequently asked questions
Why is COBRA so expensive?
You're paying the full premium your employer used to share, plus up to 2%.
Can I switch from COBRA to a Marketplace plan?
Yes, within 60 days of losing job coverage, during Open Enrollment, or when COBRA ends. Not by dropping it mid-year.
Got a COBRA notice?
Send it to us and we'll compare it to your Marketplace and private options before your window closes.
Get a QuoteGeneral information only, not legal advice. COBRA applies to most employers with 20+ employees; many states have continuation rules for smaller employers. Check your notice for exact deadlines.