COBRA vs ACA in Tennessee: which costs less?
In Tennessee the average benchmark Marketplace plan for a 40-year-old costs $711 a month in 2026 before any credit, $86 above the $625 national average. Tennessee has not expanded Medicaid. Whether COBRA or the Marketplace costs you less depends on your income for the year.
By Justin KullaLast updated
$711
Average benchmark plan, a month, 2026
Up 38% from $516 in 2025
#8 of 51
By 2026 benchmark premium, highest first
43 states and DC cost less
$62,600
Credit ends above, one person, 2026
$128,600 for a family of four
$191 a month
Credit lost by crossing that line
on the $711 plan
What a single adult would pay in Tennessee
Coverage in 2026, the $711 benchmark plan and the IRS table. Estimates; the calculator takes your own numbers.
| Yearly income | Poverty line | Expected share | Credit a month | You pay a month |
|---|---|---|---|---|
| $23,475 | 150% | 4.2% | $629 | $82 |
| $39,125 | 250% | 8.4% | $436 | $275 |
| $54,775 | 350% | 10.0% | $256 | $455 |
| Over $62,600 | Over 400% | none | $0 | $711 |
The benchmark plan rose $195 a month ($2,340 a year) from 2025 to 2026. People under the 400% line were not charged for that: their credit grew to cover it. People above it paid it all. For 2027 coverage the line moves to $63,840 for one person, where a credit of about $167 a month would still be lost if the 2026 benchmark price held.
Tennessee compared
Tennessee ranks 8 of 51 on 2026 benchmark premium; 43 cost less. Tennessee uses the federal marketplace at HealthCare.gov. Medicaid is not expanded: adults below 100% of the poverty line generally get neither Medicaid nor credits, and for 2026 coverage credits start at $15,650 of income for one person. 10 states are in this position.
Your 60 days
In Tennessee, as everywhere, federal COBRA covers employers with 20 or more employees; a state law may cover smaller ones (ask the Tennessee insurance department). You have 60 days to elect COBRA and 60 days after coverage ends to join a Marketplace plan. Details and sources are on the COBRA vs ACA explainer.
Questions about COBRA vs ACA in Tennessee
- Is the ACA Marketplace cheaper than COBRA in Tennessee?
- It is if your income is low enough for a premium tax credit. In Tennessee the average benchmark plan for a 40-year-old costs $711 a month in 2026 before any credit. A single adult at 150% of the poverty line ($23,475 a year) would pay about $82 a month for it after the credit; at 350% ($54,775) about $455. Above $62,600 there is no credit and the plan costs its full price. Compare with the COBRA premium on your own notice.
- What does crossing the 400% line cost in Tennessee?
- For a single adult with 2026 coverage, earning one dollar over $62,600 removes a credit of about $191 a month ($2,297 a year) on the $711 benchmark plan. For 2027 coverage the line moves to $63,840.
- What if my income is very low in Tennessee?
- Tennessee has not expanded Medicaid. Adults below 100% of the poverty line generally get neither Medicaid nor Marketplace credits. Parents and people with disabilities have other routes; ask the state Medicaid office.
Compare with your own numbers
Enter your COBRA quote and your household income. Also: unemployment benefits in Tennessee.
Premiums: KFF, marketplace average monthly benchmark premiums, read 2026-10-26. Credit rules: IRS Rev. Proc. 2025-25 and 2026-26. Full list of sources on the explainer. An estimate, not advice.