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COBRA vs. ACA Marketplace: How to Choose
Both keep you covered after a job ends, but they work very differently. Here's how to weigh the trade-offs in plain numbers.
The short version
COBRA keeps your exact existing plan, deductible progress, and doctors, but you pay the entire bill out of pocket. Marketplace plans (from HealthCare.gov or your state's exchange) mean switching plans, but they are often hundreds of dollars cheaper if you qualify for federal premium tax credits.
Side-by-side comparison
| Feature | COBRA | ACA Marketplace |
|---|---|---|
| Who it's for | People leaving a job-based plan who want to keep it | Anyone without affordable job-based coverage |
| Doctors & network | Same doctors and plan you already have | New plan; your doctors may or may not be in network |
| Monthly cost | Usually high: you pay the full premium plus up to 2% | Often lower, especially with income-based tax credits |
| Financial help | No subsidies | Premium tax credits and cost-sharing help if you qualify |
| Deductible reset | No, your progress toward the deductible carries over | Yes, you start a new deductible |
| How long it lasts | Usually up to 18 months | Renewable every year as long as you qualify |
COBRA may fit if…
- You're in the middle of active treatment with specific specialists
- You've already met most or all of this year's deductible
- You only need temporary gap coverage for 1–2 months before a new job starts
Marketplace may fit if…
- Your household income has dropped and you qualify for tax credits
- COBRA's full premium ($1,500 – $2,500/mo) is simply unaffordable
- You're flexible about checking which doctors belong to the new network
Watch the clock: read about the 60-day election deadline, or run numbers with our cost comparison calculator.
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