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Lost your job? Keeping health insurance: COBRA or the Marketplace

COBRA vs Marketplace plans, your 60-day deadlines, using your new income, a spouse’s plan and Medicaid, and choosing carefully.

Quick answer

After a layoff, COBRA lets you keep your same work plan, usually at full price plus a small fee. A Marketplace plan may cost much less with help based on your expected yearly income, which may be lower now. You usually have 60 days to elect COBRA and 60 days to sign up on the Marketplace. Check a spouse’s plan and Medicaid too. Choose carefully: dropping COBRA later on purpose may not let you switch until open enrollment.

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Your checklist

  • Compare COBRA and the Marketplace
  • Note your 60-day deadlines
  • Use your new expected income
  • Check a spouse’s plan and Medicaid
  • Think before dropping COBRA later
  • Avoid a gap in coverage

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Your options

  • COBRA: keeps your same employer plan, doctors and deductible progress, usually for up to 18 months. You typically pay the full premium plus up to a 2% fee. Applies to many employers with 20 or more employees; some states have similar rules for smaller ones.
  • Marketplace plan (HealthCare.gov or your state’s site): losing job coverage opens a 60-day special enrollment period. Premium help is based on your expected income for the year.
  • A spouse’s or partner’s job plan: losing coverage usually lets you join, often within 30 days.
  • Medicaid: if your income is low, you can apply anytime.

Deadlines

You usually have 60 days to elect COBRA after getting the notice or losing coverage. If you elect and pay on time, coverage can go back to the day it ended. You have 60 days to pick a Marketplace plan; you can often apply before coverage ends.

Compare costs

Enter your expected income for the year on the Marketplace. After a layoff it may be lower, which can mean much lower premiums than COBRA. Check that your doctors and medicines are covered.

Choose carefully

If you choose COBRA and later drop it voluntarily, you generally can’t switch to the Marketplace until open enrollment. If COBRA runs out, that does open a new window.

Avoid junk plans

Very cheap short-term plans may not cover pre-existing conditions or major care.

Official sources, and where to look

To find your local office, search for:

  • healthcare.gov special enrollment job loss
  • [your state] Medicaid apply

Pick sites that end in .gov. Official forms are almost always free.

Common questions

How much does COBRA cost?

Usually the full premium your employer was paying plus your share, plus up to a 2% fee. Ask HR for the exact amount. More ›

Can I get Marketplace help if I get severance?

Help is based on expected yearly income, which includes severance and unemployment. Estimate your total for the year. More ›

Is COBRA or the Marketplace cheaper?

It depends on your income and plan. COBRA is usually full price; Marketplace plans often cost less with income-based help, especially after a pay drop. More ›

How long do I have to sign up for COBRA?

Usually 60 days after you get the COBRA notice or lose coverage, whichever is later. Coverage can go back to when it ended if you elect and pay on time. More ›

Can I switch from COBRA to a Marketplace plan?

If you drop COBRA voluntarily, usually only during open enrollment. If COBRA runs out, you get a new special enrollment period. More ›

How long does COBRA last?

Usually up to 18 months after a job loss; longer in some situations. More ›

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Not yet reviewed by an expert. Last checked 2026-10-29. This is general help, not legal, medical or professional advice. Rules are different in every state.