Lost Your Job? COBRA vs Marketplace

COBRA keeps your employer plan — at full cost

COBRA lets you continue employer coverage for a limited time, but you usually pay the full premium plus an administrative fee. That can be expensive compared with a subsidized Marketplace plan.

COBRA can still make sense briefly if you are mid-treatment with a provider network you cannot afford to leave immediately.

Marketplace subsidies change the math

Losing employer coverage is a qualifying life event. Compare HealthCare.gov or your state marketplace subsidy estimate against the COBRA invoice before you decide.

You generally have a limited window — act quickly so you do not end up with a gap.

Frequently asked questions

Can I use COBRA and then switch to the Marketplace?

Often yes within allowed windows, but timing rules are specific. Do not assume you can hop freely all year.

Does severance include health coverage?

Sometimes employers subsidize COBRA for a period — read your separation paperwork carefully.