COBRA & marketplace coverage.
Last updated 2026-07-01
You have 60 days after losing employer coverage to elect COBRA — but waiting the full 60 days creates a retroactive coverage gap that can complicate billing if you need care in the meantime, so the real decision window is closer to 30 days. COBRA keeps your exact same plan and network, at full premium (your former employer's contribution disappears, plus typically a 2% administrative fee) — usually more expensive than what you were paying, but with zero disruption to your doctors or prescriptions.
The ACA Marketplace is the other option, and it's often — not always — cheaper, especially if your income drops enough to qualify for a subsidy. The tradeoff is a different network, so if you have an ongoing prescription or a specialist you don't want to lose, check that provider's Marketplace-plan coverage before switching. The right call depends on your specific premium math and whether continuity of care outweighs cost for you right now — there's no universal right answer, only the one that fits your situation.
What the full guide covers
- The COBRA election deadline and why the effective decision window is shorter than 60 days
- How to calculate real COBRA cost (premium + admin fee)
- When ACA Marketplace coverage is usually cheaper, and when it isn't
- Checking your providers/prescriptions against a new network before switching
- Other benefits deadlines that hit at the same time (FSA, vesting, expense reports)
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Frequently asked questions
How long do I have to elect COBRA?
You have 60 days after losing employer coverage, but deciding within 30 days is smarter — waiting the full 60 creates a retroactive coverage gap that can complicate billing if you need care before you've officially elected.
Is COBRA or the ACA Marketplace cheaper?
It depends on your income and plan — ACA Marketplace is often cheaper, especially with a subsidy, but COBRA keeps your exact same plan and network with zero disruption. Compare both before deciding, and check your specific providers against the Marketplace plan's network first.