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COBRA vs Marketplace Cost Calculator

COBRA keeps your exact plan — at up to 102% of the full premium. A marketplace plan resets your deductible — but subsidies can cut the premium dramatically. This calculator runs the total cost over your gap: premiums plus the one-time care costs each option leaves you holding.

COBRA or marketplace: which bridge is cheaper?

Your COBRA letter premium, the marketplace price after subsidies, and the care costs each option leaves you — over the months you actually need coverage.

COBRA monthly premium $

The number on your COBRA election letter — up to 102% of the full plan premium. National single average is about $793 a month.

Marketplace monthly premium $

The sticker price before subsidies — your plan, age, and state. Browse the marketplace for your real quote.

Your monthly tax credit $

Your premium tax credit (APTC), based on income — the discount that only marketplace plans get. COBRA gets none.

Months of coverage needed

How long the gap lasts. COBRA maxes out at 18 months — and longer gaps usually favor the marketplace.

Care costs still owed on your old plan $

Your remaining deductible and copays under the plan you have now. Leave 0 if you already met the deductible.

Care costs expected under a new plan $

What you would pay out of pocket starting over on a fresh deductible. Lower this if you rarely use care.

Can you enroll in a marketplace plan now?

Job loss opens a 60-day special enrollment window. Without one, the marketplace waits for open enrollment.

Try:

COBRA wins$1,586Cheaper total — by $1,274 over 2 months

COBRA

Monthly premium$793

Premiums × 2 months$1,586

Remaining care costs on old plan$0

COBRA total$1,586

Marketplace

Monthly premium after credit$180

Premiums × 2 months$360

Care costs under the new plan$2,500

Marketplace total$2,860

COBRACheaper$1,586

MarketplacePricier$2,860

Bars = cumulative spend (premiums + one-time care costs), one shared scale⚑ Month 2 — 60-day special-enrollment window closes

COBRA coverage maxes out at 18 months

For a 2-month gap, COBRA wins by $1,274. At $793 a month with your deductible already met, COBRA costs $1,586 flat. The marketplace's $180 net premium looks tiny — until the $2,500 fresh-deductible bill lands on top of it. This is COBRA's sweet spot: a short bridge on a plan where you already did the expensive part.

How it works: COBRA total = monthly COBRA premium × months + the care costs you still owe under your old plan. Marketplace total = (monthly premium − your tax credit) × months + the care costs you expect under a brand-new deductible. The winner is the lower total over your gap. Two honesty notes: the marketplace premium and tax credit vary hugely by income, plan, age, and state — your real quotes rule. And the "care costs" inputs are the hinge of the whole comparison: if you barely use care, lower the new-plan number toward zero and watch the premium gap decide.

How COBRA vs marketplace math works

Two bridges, two cost structures. COBRA keeps your exact plan — same doctors, same network, and your deductible progress carries over — at up to 102% of the full premium, the employer's share plus yours plus a 2% fee. A marketplace plan starts everything over: new deductible, new network, but premium tax credits can collapse the monthly price if your income qualifies. The comparison is never just "which premium is lower" — it is premium × months plus the care costs each option leaves you holding, and the lanes above show how those totals accrue month by month.

The formula

COBRA total = COBRA premium × months + remaining care costs on old plan · Marketplace total = (marketplace premium − tax credit) × months + expected care costs under new plan · Winner = lower total

Worked example: single, 2-month bridge, deductible already met

COBRA: $793 × 2 = $1,586, plus $0 more in care — you already met the deductible. Marketplace: ($600 − $420) = $180 net × 2 = $360, plus $2,500 of care under a fresh deductible = $2,860.

COBRA wins by $1,274. Now try "Single · long gap" in the scenarios above: 12 months of $793 COBRA is $9,516 against the marketplace's $4,660 — the marketplace wins by $4,856. Short bridge with the deductible met is COBRA's best case; long gap with subsidies is the marketplace's.

Where this comes in handy

Right after a layoff: you have 60 days to elect COBRA and it is retroactive — run the math before the window closes, not after.
Mid-treatment or pregnant: COBRA keeps your doctors and your deductible progress; a new network can mean starting treatment over.
Between jobs for a few months: short gaps are where COBRA's flat monthly math beats the fresh-deductible penalty.
Subsidy check: if your income qualifies for a big tax credit, the marketplace premium can drop below $200 — re-run with your real number.
New-job plan shopping: once you are covered again, compare the HDHP vs PPO options in your next open enrollment.

For the full walkthrough — collecting your four numbers, the 60-day election trick, the deductible-reset math, and the traps that catch people — see the guide How to compare COBRA and marketplace insurance.

COBRA vs marketplace — frequently asked questions

Can I really wait the full 60 days to decide on COBRA?

Yes. You have at least 60 days after your coverage ends (or after the election notice, whichever is later) to elect COBRA, and coverage is retroactive to the day your old plan stopped. If you stay healthy and land a new job with coverage, you can skip electing and pay nothing — the window is a free option. Just do not miss the deadline: after it, the option is gone.

Can I get the tax credit with COBRA?

No. Premium tax credits apply only to marketplace plans — COBRA premiums are never subsidy-eligible. That asymmetry is the whole marketplace edge: a $600 premium can become $180 after the credit while the $793 COBRA premium stays $793. If your income is too high for subsidies, this advantage disappears.

Does my deductible reset if I switch?

Under COBRA, no: it is the same plan, so your deductible and out-of-pocket progress carry over exactly. Under a marketplace plan, yes: you start a brand-new deductible from zero. That reset is the hidden $2,000–$5,000 in the comparison — and it is why COBRA wins so often for short bridges late in the year, when you have already paid your deductible down.

What happens if I drop COBRA voluntarily?

Voluntarily dropping COBRA does not open a special enrollment window — you would wait for the next open enrollment with no coverage. Losing your job opens the window; choosing to end COBRA does not. Elect COBRA only for the months you actually need it, and line up your next coverage before you drop it.

How long can COBRA last?

Usually up to 18 months after a job loss or hours reduction; certain qualifying events (like divorce or a dependent aging out) can extend it to 36 months. Plan the bridge against that clock: a 12-month gap fits inside 18 comfortably, but if you will need coverage for two years, the marketplace (or a new employer's plan) has to take over eventually.

Are the default premiums accurate for me?

They are national starting points: the COBRA defaults come from 2025 employer-survey premium averages (about $793 single, $2,294 family at 102%), and the marketplace defaults assume a mid-range premium with a typical credit. Your COBRA election letter has your exact number, and the marketplace will quote you precisely. Replace every default with your real numbers before deciding.