Insurance After a Layoff: COBRA vs Marketplace Plans Compared

Direct answer: After losing employer coverage, you typically have about 60 days to elect either COBRA continuation of your old plan or a new ACA marketplace plan, and the right choice depends mostly on whether you qualify for marketplace subsidies.

COBRA: same plan, full price

COBRA lets you keep your exact previous plan, network, and providers, but you generally pay the full premium yourself, including the share your employer used to cover, plus a small administrative fee. There's no subsidy available for COBRA premiums by default.

Marketplace: different plan, possible subsidy

A marketplace plan may have a different network and different cost-sharing structure, but if your household income qualifies, premium tax credits can significantly lower the monthly cost — something COBRA doesn't offer.

2026 makes this comparison more important than usual

With enhanced ACA premium tax credits having expired at the end of 2025, marketplace premiums are higher than in recent years for many households, narrowing the cost gap between COBRA and marketplace options in some cases. Running both numbers side by side before the 60-day window closes is worth the extra hour of research.