Left a job recently? You’ve probably received a COBRA notice. Before paying full COBRA prices, compare it against an ACA marketplace plan. For most people, the marketplace is significantly cheaper in 2027.
What COBRA Actually Costs
COBRA lets you continue your former employer’s plan for up to 18 months — but you pay the full premium including the employer’s portion plus a 2% admin fee. The average employer-sponsored family plan runs ~$22,000/year total. On COBRA, that’s roughly $1,870/month vs. ~$541/month as an employee. Individual COBRA: typically $600–$850/month.
When COBRA Makes Sense
- You’re in active treatment with doctors not in any marketplace network in your area
- You’ve nearly met your deductible and want continuity for the rest of the plan year
- You’ll be back on employer coverage in under 60 days
When the Marketplace Wins
Losing employer coverage is a qualifying life event that opens a 60-day Special Enrollment Period. If your income drops after leaving a job, your subsidy goes up — sometimes dramatically.
Example: Household income drops from $120,000 to $55,000 post-job. At $55,000, they may qualify for a subsidized Silver plan at $300–400/month vs. $800+/month on COBRA.
The Comparison Checklist
- Get your full COBRA premium from HR
- Estimate 2027 household income
- Check estimated marketplace premium + subsidy at Healthcare.gov
- Verify your doctors are in-network on marketplace plans in your area
- Compare deductibles and out-of-pocket maximums
Related: Individual & Family Health Plans | Schedule a Free Consultation
Frequently Asked Questions
Is COBRA or a marketplace plan cheaper in 2027?
For most people, a subsidized marketplace plan is cheaper. COBRA includes the full employer premium plus 2% admin. Compare both before deciding.
Can I switch from COBRA to a marketplace plan during open enrollment?
Yes. Open enrollment (November 1 to January 15) lets you drop COBRA and enroll in a marketplace plan effective January 1.
How long do I have to decide between COBRA and a marketplace plan?
You have 60 days from losing employer coverage to elect COBRA and 60 days to enroll in a marketplace plan via Special Enrollment Period.
What is a Special Enrollment Period for losing job coverage?
Losing employer-sponsored coverage triggers a 60-day SEP on Healthcare.gov or your state marketplace, allowing enrollment outside open enrollment.
Talk to an Independent Broker — Free
Garden State Benefits is an independent insurance broker licensed in New Jersey and 25 other states. We compare marketplace plans, off-market plans, and subsidy eligibility in a single conversation — at no cost to you.
Open enrollment runs November 1 through January 15. Book a free consultation here or call 856-880-6340.