After losing job-based health coverage, compare COBRA and Marketplace plans before either deadline passes. COBRA may let you keep the employer plan, usually while paying its full cost. Marketplace coverage may have a different premium after applicable financial help, but you need to check doctors, prescriptions, deductibles and the start date. Neither option is always the better value.
Start by asking HR for the exact day your health insurance ends. Your last working day and your last covered day may be different.
Federal guidance checked November 11, 2026. Your notices, plan terms and applicable state rules matter.
Put the deadlines on one page
The COBRA clock and the Marketplace clock are separate. Waiting for one process does not pause the other.
| Decision | Timing to check |
|---|---|
| Elect COBRA, if eligible | You have at least 60 days, starting with the later of your coverage loss or the date the election notice is provided. |
| Make the first COBRA payment | The plan must allow at least 45 days after you elect. Confirm the deadline and full amount due, including any back premiums. |
| Choose a Marketplace plan after losing job coverage | You generally can select a plan during the 60 days before or 60 days after the coverage loss. The start date depends on when you select it. |
The Department of Labor’s worker FAQs explain COBRA election and payment timing. HealthCare.gov explains coverage after job loss and the window before or after coverage ends.
On HealthCare.gov, if you select a plan before your job coverage ends, coverage generally starts the first day of the month after that coverage ends. If you select after the loss, it generally starts the first day of the month after your selection. A midmonth loss can still leave a gap. Ordinary job-loss enrollment does not cover days before the Marketplace plan’s effective date. CMS explains these effective dates.
Follow any instructions to document the coverage loss and pay the first premium. Keep election and payment confirmations. For COBRA, ask how claims will be handled while your election or payment is pending.
What does keeping COBRA cost?
The paycheck deduction you remember may have been only your share. Under ordinary federal COBRA rules, the premium can be up to 102% of the plan’s total cost for similarly situated covered people, including the employer’s former share. Ask whether a severance arrangement pays part of it and when that assistance ends.
Illustration only: If the total monthly plan cost is $800, 102% is $816. Your own premium may be different. This is arithmetic, not a quote.
COBRA after job loss or reduced hours commonly lasts up to 18 months, though coverage can end earlier and some situations permit extensions. Federal COBRA generally applies to private-sector employer plans meeting its employee-count rules; smaller employers may have state continuation options. Ask HR which rules apply. The DOL worker’s guide explains the framework.
A timely COBRA election and payment can generally provide coverage back to when the employer coverage would otherwise have ended. Ask the administrator to confirm your effective date, any back premiums and special rules if you previously waived coverage.
Compare the care and the remaining-year cost
Keeping a familiar plan can matter when you are in treatment or have already paid toward a deductible. Check the plan-year reset date; accumulated spending does not carry forward forever.
For a Marketplace alternative, check the exact plan’s network, covered drugs and new cost-sharing amounts. Do not assume the old plan’s deductible payments will transfer.
Use the same months in both estimates:
Premiums for the remaining coverage months + expected out-of-pocket costs during those months.
Include any employer COBRA assistance, costs before the new plan starts and a possible January deductible reset. Then compare the next full year separately. HealthCare.gov explains how to compare total plan costs and locate networks and drug lists.
Estimate income for the year you want coverage
A layoff does not automatically make your annual household income zero. For Marketplace savings, use expected income for the full coverage year, including income already earned in that year and other income the application requires.
If you need coverage for the rest of 2026 and for 2027, make a separate estimate for each year. Update the application if circumstances change. HealthCare.gov’s income guidance explains what to count. Ask a qualified tax professional about uncertain items rather than guessing from your latest paycheck.
Also check a spouse’s employer plan, Medicaid or CHIP. Enrollment deadlines can differ. An offer of affordable coverage that provides minimum value through a current employer, including a spouse’s employer, can affect Marketplace financial help even if you decline it. A COBRA offer is treated differently, as explained below.
Can you switch after choosing COBRA?
During Marketplace Open Enrollment, you can generally choose a Marketplace plan while you have COBRA. Outside Open Enrollment, you need a Special Enrollment Period. That may apply if you are still within 60 days of losing your job coverage, your COBRA runs out or becomes unavailable, or your employer’s COBRA contribution ends entirely. The end of government COBRA premium assistance can also qualify.
Canceling COBRA early or choosing to stop paying usually does not create a new enrollment opportunity. Another qualifying life event may provide one. Confirm your eligibility, enrollment deadline and new coverage start date before ending COBRA. HealthCare.gov explains COBRA-to-Marketplace switching.
HealthCare.gov currently lists Open Enrollment for 2027 from November 1, 2026 through January 15, 2027, with December 15 as the deadline for January 1 coverage. State Marketplace dates may differ. Check current enrollment dates rather than treating Open Enrollment as a solution to an immediate gap.
Common questions
Do I have to take COBRA before I can use the Marketplace?
No. A COBRA offer does not by itself prevent you from qualifying for a Marketplace premium tax credit. You can decline COBRA and apply for Marketplace coverage during an available enrollment period. If you enroll in COBRA medical coverage, however, you generally cannot receive a premium tax credit for your own Marketplace coverage for those same months. Other family members may qualify separately. The IRS explains how employer coverage affects the credit.
Can family members choose different coverage?
COBRA-qualified family members generally have individual election rights. Compare each person’s options, while reporting household information accurately on a Marketplace application.
Should I choose the lowest premium?
Put it beside the deductible, provider network, prescriptions and coverage dates. A cheaper premium may still mean a higher total cost or a disruption in care.
Our health coverage before Medicare guide covers the broader bridge-to-Medicare decision.
Have a general question about this guide? Contact ShieldWise. Use your plan administrator, official Marketplace or a qualified professional for coverage-specific help. Keep medical records, Social Security numbers and employer benefit documents out of the general contact form.
This article provides general education, not individual insurance, medical, legal or tax advice. Benefits, costs, availability and enrollment rights depend on the coverage and applicable rules. Confirm your situation with the official program, plan administrator or a qualified professional. ShieldWise is not affiliated with or endorsed by the Marketplace or the federal government.