HEALTH COVERAGE

Health coverage: COBRA vs. the Marketplace

This is general information, not medical, legal, tax, or financial advice. Costs, subsidies, and deadlines depend on your state, income, and plan, and they change. Confirm your own numbers at healthcare.gov or your state marketplace, and check the notices your employer sends you.
Facts re-verified June 2026. The subsidy rules below are in active legislative flux. Re-check before relying on any dollar figure or deadline.
Losing the job usually means losing the health plan, same day, or end of the month. You have options, and two of them run on a 60-day clock. Start here before the windows close.

The deadlines that actually matter

•
COBRA: you get 60 days to elect it (from the date coverage ends or the date you're notified, whichever is later), and if you elect, coverage is retroactive to when it ended. Some people use that window to wait and elect only if they end up needing care. It's legal, but it's a real gamble: until you've actually elected and paid, providers may refuse to bill insurance or make you pay out of pocket, and a sudden emergency or diagnosis can land in the gap before you're enrolled. Treat going uncovered as a last resort, and confirm exactly how your specific plan handles retroactive election with the plan administrator before you count on it.
•
Marketplace (ACA): losing job-based coverage opens a 60-day Special Enrollment window to buy a plan on healthcare.gov or your state marketplace. You don't have to wait for open enrollment.
•
Spouse's plan: if your spouse or partner has employer coverage, your job loss usually lets you join theirs, but that window is typically about 30 days, tighter than the others. Move on this one first if it applies.

At a glance

COBRA
Cost
Full premium + up to 2% admin: the amount your employer was quietly covering. Often a shock.
Coverage
The exact same plan: same doctors, same meds.
Deadline
60 days to elect.
Best when
You're mid-treatment or want zero disruption, short-term.
Marketplace (ACA)
Cost
Plan price minus any subsidy you qualify for (subsidies got smaller in 2026, see below).
Coverage
A new plan you pick (bronze/silver/gold).
Deadline
60 days from losing coverage.
Best when
Your income dropped enough to qualify for help.
Spouse's plan
Cost
Whatever their plan charges to add you.
Coverage
Their plan's network.
Deadline
Usually ~30 days.
Best when
Your spouse has solid, affordable coverage.
Medicaid
Cost
Free or very low cost.
Coverage
State Medicaid network.
Deadline
Apply anytime.
Best when
Your income is low (varies by state).
2026 reality check, and this is still changing
As of June 2026, the extra pandemic-era marketplace subsidies expired December 31, 2025. Subsidies still exist, but they're smaller, and the hard income cutoff is back: above roughly 4× the federal poverty line, you may get little or no subsidy. On average, marketplace premium payments roughly doubled going into 2026.
The expiration currently stands, but Congress could still revisit it. The Senate failed to clear the 60-vote threshold in late 2025 and the enhanced credits lapsed on schedule. The House passed a three-year extension in January 2026, but it has not become law, so for now the smaller subsidies are the rule. Before you rely on any number here, check the current rule at [healthcare.gov](https://www.healthcare.gov) or [KFF](https://www.kff.org/affordable-care-act/). If an extension later passes, the math can flip back in your favor.
Translation: right now the Marketplace is no longer automatically the cheap option. But your income probably just dropped, and subsidies are based on what you expect to earn this year, not last year. So a big income drop can still make a subsidized Marketplace plan beat COBRA by a lot. Run your actual numbers, and confirm today's rules before you decide.

How to decide (the practical version)

Compare three numbers and pick the one that covers your doctors and meds without wrecking your runway:
1
Your COBRA cost: it's on the COBRA election notice your employer or plan administrator sends you.
2
Your subsidized Marketplace cost: healthcare.gov (or your state site) estimates it once you enter your expected income for this year.
3
Medicaid: the same Marketplace application checks whether your income qualifies you for free/low-cost coverage.
One more: COBRA generally lasts up to 18 months and applies to employers with 20+ employees. Smaller employer? Many states have a "mini-COBRA" that does something similar. Your state marketplace or insurance department can tell you.
Sources (re-verified June 2026): KFF and the Congressional Research Service (CRS R48290) on the 2025 subsidy expiration and 2026 premium impact; reporting on the early-2026 House extension vote and pending Senate bill; [healthcare.gov](https://www.healthcare.gov) for enrollment and cost estimates; [dol.gov](https://www.dol.gov) for COBRA rules.

Common questions

What's the deadline to elect COBRA after a layoff?

60 days from the day your coverage ends or the day your employer notifies you, whichever is later. COBRA is retroactive to when coverage ended, so electing late still covers the gap, but until you've elected and paid, providers may not bill it. Confirm how your plan handles retroactive election before you count on it.

How much does COBRA cost?

The full premium plus up to a 2% admin fee, which is the whole amount your employer was quietly covering before. It's listed on the COBRA election notice your plan administrator sends you, and it's usually a shock the first time you see it.

Did ACA Marketplace subsidies change in 2026?

Yes. The enhanced pandemic-era subsidies expired December 31, 2025. Subsidies still exist but are smaller, the income cutoff (roughly 4x the federal poverty line) is back, and premiums roughly doubled going into 2026, so the Marketplace is no longer automatically cheaper than COBRA. If your income dropped a lot it can still beat COBRA, so price your real numbers and check the current rules at healthcare.gov.

How long do I have to get a Marketplace plan after a layoff?

Losing job-based coverage opens a 60-day Special Enrollment window, so you don't have to wait for open enrollment. Subsidies are based on what you expect to earn this year, not last year, so enter your expected income on healthcare.gov or your state marketplace to see your real cost.
Last reviewed June 2026. Laws and figures change. Verify anything time-sensitive against the official sources linked above.