COBRA vs. Marketplace: How to Compare Your 2027 Costs
Losing job coverage forces a fast decision with a 60-day clock. COBRA keeps your exact plan — at the full group price plus 2%. A marketplace plan resets everything — often with a subsidy. Here’s how to pick right the first time.
Compare My Options ↓COBRA vs. Marketplace Calculator for 2027
Put your COBRA bill next to a marketplace plan. Enter your state, household size and projected 2027 income, plus two monthly prices you look up yourself: the COBRA premium from your election notice and the benchmark (second-lowest-cost Silver) premium from HealthCare.gov’s plan preview. The calculator estimates your 2027 premium tax credit with the IRS 2027 contribution table and lines up both monthly costs side by side. It never guesses at prices — you bring the real ones.
Estimate only. Uses the 2026 federal poverty guidelines and the IRS 2027 applicable-percentage table, under current law.
Where to find your two premiums
COBRA premium: your COBRA election notice lists the monthly price for each coverage level. Use the total for everyone you’d keep on the plan. Plans must give you at least 60 days to elect, counted from the notice or the date your coverage would end, whichever is later (U.S. Department of Labor). If you can’t find the notice, ask your former employer’s HR team or the plan contact listed on it.
Benchmark (second-lowest-cost Silver) premium: HealthCare.gov describes it as the second-lowest-priced Silver plan that applies to you, which may not be the plan you pick. To find it:
- Open HealthCare.gov’s Preview plans and prices tool. If your state runs its own marketplace, use that site’s plan preview instead.
- Enter your ZIP code and the ages of everyone who needs coverage, and make sure you’re viewing 2027 plans. Open Enrollment for 2027 coverage starts November 1, 2026; if only 2026 prices show, check back.
- Show Silver plans only and sort by monthly premium, lowest first. The second plan on the list is your benchmark.
- Enter its full monthly premium. If the tool shows a lower price after estimated savings, use the full price instead — the calculator applies the credit itself.
Losing a job late in 2026? The calculator covers 2027 months. For the rest of 2026, the 2026 rules apply (a 2.10%–9.96% contribution range under IRS Rev. Proc. 2025-25), so ask us to run those months separately.
Read this before you decide: the calculator is an estimate, not an eligibility determination or tax advice. Your final credit depends on your actual 2027 income and is reconciled on your tax return; for tax years after 2025 there’s no cap on paying back excess advance credits (IRS). Premium isn’t total cost: deductibles, networks and drug lists differ, and COBRA keeps this year’s deductible progress while a new plan starts over. Some states, including California and New Jersey, add state-funded savings the calculator doesn’t include. Months you’re enrolled in COBRA don’t qualify for a tax credit (IRS Publication 974). And voluntarily dropping COBRA mid-year doesn’t open a Special Enrollment Period — you can switch within 60 days of losing job-based coverage, when COBRA runs out, if your former employer completely stops paying toward it, or during Open Enrollment (HealthCare.gov; 45 CFR 155.420).
Want a second set of eyes? FreedInsure’s licensed agent is Constantino Lardi (NPN 20230457), and a licensed advisor can run both sides with your real quotes, free. Call (844) 788-3733 — two of our team members speak Spanish.
COBRA or Marketplace: Which Should You Pick?
For most people who lose job coverage in 2027, a subsidized marketplace plan still beats COBRA on price — but the gap is narrower than it used to be. COBRA charges 102% of the full group premium (the entire cost your employer used to split with you, plus a 2% fee), while losing job-based coverage opens a 60-day Special Enrollment Period and, at 100–400% of the poverty level ($15,960–$63,840 single for 2027 coverage), a premium tax credit. The enhanced credits of 2021–2025 are gone for 2027 unless Congress acts, so subsidies are smaller and $1 over 400% FPL means $0 credit. COBRA wins in specific situations: a deductible you’ve already met mid-year, a must-keep doctor or drug locked to the group network, or income over the cliff. Run both numbers before the clock decides for you.
The reason COBRA shocks people: while you were employed, your employer quietly paid the majority of your premium. COBRA hands you the whole bill — same plan, same network, none of the help. Meanwhile the marketplace prices your coverage on your income, and a layoff year is often exactly when that income-based math gets generous. The calculator above makes the comparison quick, and skipping it can be an expensive mistake.
FreedInsure LLC is an independent brokerage; its licensed agent, Constantino Lardi (NPN 20230457), is licensed in 42 jurisdictions (41 states + DC). We run the COBRA-vs-marketplace math on your real numbers — election notice on one side, subsidy quote on the other — free. Call (844) 788-3733 or use the form below.
What COBRA Actually Is — and Costs
COBRA lets you continue your former employer’s exact plan — same network, same deductible progress, same coverage — typically for up to 18 months after leaving a job (federal COBRA applies to employers with 20+ employees; many states have similar “mini-COBRA” laws that may cover smaller employers, according to the U.S. Department of Labor). The catch is the sticker: you pay 102% of the total premium, including every dollar your employer used to contribute.
What that looks like in dollars: at KFF’s 2026 average employer premiums ($9,804 a year for single coverage, $28,303 for family), COBRA at 102% is about $833 a month for one person and $2,406 a month for a family, versus the $139 and $623 a month the average worker paid while employed. Estimate your own COBRA cost →
✅ What you keep
Your doctors, your network, your prescriptions — and crucially, any deductible and out-of-pocket progress you’ve already built this plan year. Mid-year, that progress can be worth thousands.
💸 What you pay
The full group rate plus 2%. Because employers typically cover the large majority of a worker’s premium, the COBRA price is usually a multiple of what came out of your paycheck — the number on your election notice is the real one.
The retroactive quirk worth knowing: you have 60 days to elect COBRA, and if you elect, coverage (and premiums) apply retroactively to the day your job coverage ended. Some people deliberately wait out the window as a free safety net — electing only if something happens. It’s legal, but it’s a tightrope: miss day 60 and both doors may be closed. COBRA basics → · COBRA pricing explained →
What a Marketplace Plan Costs After a Job Loss
Losing employer coverage is a qualifying life event: you get a 60-day Special Enrollment Period, and you can enroll up to 60 days before a known end date so the new plan starts the first of the month after your coverage stops — no gap. Price-wise, the marketplace runs on your annual household MAGI: between 100% and 400% FPL, you contribute 2.15%–10.22% of income toward the benchmark plan for 2027 coverage and the credit covers the rest; under about $39,900 (single), Silver plans add cost-sharing reductions too. The 2027 caveat: the enhanced credits that fattened subsidies through 2025 are gone unless Congress acts (for 2026 coverage the contribution range was 2.1%–9.96%), and above $63,840 (single), the top of the 2027 ACA subsidy income limits, there is no credit at all — which pushes more higher earners into a full-price vs. full-price comparison.
The income detail that decides close calls: your subsidy uses your full-year income — months already worked, severance, and unemployment benefits all count toward MAGI. A January layoff often means a big subsidy for the rest of the year; a November layoff after a full year’s salary may mean little subsidy until January 1, when the new year’s income resets the math. And with the 400% FPL subsidy cliff back for 2027 under current law, severance can push you a single dollar over the line and zero out the credit entirely: a single adult at $63,840 is expected to pay 10.22% of income (about $544 a month) toward the benchmark Silver plan, while at $63,841 the credit is $0 and you pay the full sticker price. Timing changes the answer, which is why we model it. Full job-loss guide →
When Each One Wins
COBRA vs. a Marketplace plan for 2027, at a glance:
| Feature | COBRA | Marketplace plan (2027 rules) |
|---|---|---|
| What you pay | Up to 102% of the plan’s full cost: about $833 a month single and $2,406 family at 2026 averages (KFF) | Full price for your age and ZIP code, minus any premium tax credit |
| Help with the premium | None from the government; some employers pay part | Tax credit at 100%–400% of the poverty level ($15,960–$63,840 for one person); you pay 2.15%–10.22% of income for the benchmark Silver plan |
| Example: single adult earning $47,880 | About $833 a month at the 2026 average | No more than about $408 a month for the benchmark Silver plan |
| Doctors and deductible | Same plan, network and deductible progress | New plan; network and deductible start over |
| How long it lasts | Usually 18 months (up to 29 or 36 for some events) | As long as you stay eligible and renew each year |
| Deadline to sign up | At least 60 days to elect; first payment at least 45 days after electing | 60 days before or after losing job-based coverage, or Open Enrollment |
Sources: U.S. Department of Labor (COBRA rules), KFF 2026 Employer Health Benefits Survey (average premiums), IRS Rev. Proc. 2026-26 (2027 percentages) and HealthCare.gov (Special Enrollment Periods). $47,880 is 300% of the 2026 poverty guideline for one person, so the expected contribution is 10.22% of income.
Your remaining-year income lands under the subsidy line (very common after a layoff), you haven’t burned much of this year’s deductible, your doctors appear in marketplace networks, or COBRA’s sticker is simply brutal. Even with 2027’s smaller credits, a subsidized Silver plan with CSRs usually costs well under COBRA for comparable coverage — and the plan is yours going forward, not an 18-month countdown. Get your subsidy number →
You’ve already met (or nearly met) this year’s deductible and expect more care before December; you’re mid-treatment with a specialist or on a medication locked to the group network; your household income is over the subsidy line anyway — a bigger group in 2027, with the enhanced credits gone and the 400% cliff back under current law — making the comparison full-price vs. full-price; or you only need a one-or-two-month bridge to a new employer’s plan — where the retroactive election can serve as a backstop.
COBRA Alternatives: Other Ways to Replace Job Coverage
COBRA and a marketplace plan aren’t the only two doors. Before you elect, check whether one of these fits your household — some run on their own, shorter clocks.
🏥 A marketplace plan
Losing job-based coverage opens a 60-day Special Enrollment Period, and you can pick a plan up to 60 days before a known end date. At 100–400% FPL a premium tax credit may apply, and at or below 250% FPL Silver plans can add cost-sharing reductions. Estimate yours →
👪 A spouse’s or parent’s job-based plan
Losing your job-based plan can let you join another group plan, such as a spouse’s or parent’s, if you use that special enrollment right within 30 days (U.S. Department of Labor). Young adults can usually stay on a parent’s plan until 26. One catch: an affordable offer through your spouse’s job rules out marketplace tax credits, even if you turn it down (HealthCare.gov). Turning 26 guide →
💚 Medicaid or CHIP
Free or low-cost coverage you can apply for any time of year (HealthCare.gov). In the 41 states, including DC, that have expanded Medicaid, adults with income up to about 138% FPL generally qualify — about $22,025 for one person under the 2026 guidelines (KFF, August 2026). Rules vary by state. Medicaid income limits →
📅 Medicare, if you’re 65 or older
COBRA isn’t considered group health plan coverage for Medicare’s enrollment rules, and getting COBRA doesn’t change when your Medicare Special Enrollment Period ends (Medicare.gov). Miss it and you may pay a monthly late enrollment penalty, so check your Medicare dates before you elect COBRA.
📋 Plans sold outside the Marketplace
If you earn too much for a tax credit and you’re healthy, a non-Marketplace plan, such as a private PPO or EPO plan, may be worth pricing next to COBRA. You can apply outside Open Enrollment, but approval depends on each plan’s eligibility rules and underwriting, and the start date depends on the plan. Private plan options →
⏳ Short-term coverage as a bridge
Short-term plans are temporary coverage, and how long you can keep one depends on your state and the plan, from 3 months or less in some states to longer terms with renewals where state law allows. They aren’t ACA-compliant, are medically underwritten and generally exclude pre-existing conditions. Short-term basics →
Straight talk: A plan sold outside the Marketplace can cost less than a full-price ACA plan if you’re healthy, earn too much for a tax credit, or want a specific network. But if you qualify for a tax credit or Medicaid, have a pre-existing condition, are pregnant or planning to be, or take expensive medications, an ACA plan is usually the safer buy, and the only way to get the premium tax credit is through the Marketplace. We’ll price both side by side before you decide. Call (844) 788-3733. (FreedInsure doesn’t sell Marketplace plans in Washington, DC, Maine, Maryland, Nevada, Pennsylvania or Virginia; residents there enroll through their official marketplace, which is DC Health Link in DC. In California, Illinois, Kentucky and Oregon, you enroll through your state’s own exchange.)
Important: Plans sold outside the ACA Marketplace may be subject to underwriting, age limits, state availability and each plan’s own eligibility rules. Not all plans are available in all states. Rates are not guaranteed and can change. Benefits, limits and exclusions are set by the official plan document or policy, which controls if it differs from this page. This page is a general summary, not a contract or an offer of coverage. These plans are not sold through the ACA Health Insurance Marketplace (HealthCare.gov or your state’s exchange) and are not individual-market ACA plans. You can’t use a premium tax credit or cost-sharing reduction to pay for them. As HealthCare.gov puts it, “the only way to get the premium tax credit is through the Marketplace.”
The Two 60-Day Clocks — Don’t Confuse Them
⏳ Clock 1: COBRA election
60 days from your election notice (or coverage end, if later) to elect COBRA — retroactive to the loss date if you do. Elect late in the window and you’ll owe premiums back to day one.
⏳ Clock 2: Marketplace SEP
60 days from losing job coverage to enroll in a marketplace plan — and up to 60 days before a known end date. Enroll before the loss and coverage starts the first of the following month, gap-free.
One more rule that traps people: the clocks run once. If you elect COBRA and later want out, voluntarily dropping it is not a qualifying event — you’d wait for Open Enrollment 2027 (November 1, 2026–January 15, 2027 on HealthCare.gov; enroll by December 15 for a January 1 start, or December 16–January 15 for February 1; some state-run exchanges set their own dates, so check yours) to switch. COBRA running out at the end of its 18 months is a qualifying event, and so is your former employer completely ending its contributions toward your COBRA (HealthCare.gov; 45 CFR 155.420). Choose deliberately the first time. How qualifying events work →
How to Decide — 4 Steps, One Afternoon
It’s on your election notice (or one call to your former HR). Write down the monthly number and your deductible progress so far this year — those two figures are half the decision.
Months worked + severance + expected unemployment benefits = your MAGI estimate. For 2027 months, the calculator above turns that and your benchmark premium into an estimate, and a quick eligibility check turns it into your real monthly price — and shows whether CSR Silver is on the table.
COBRA carries your used deductible; a new plan resets it. Add each option’s premiums through December to the care you realistically expect, check your doctors and drugs against marketplace networks, and the winner usually declares itself.
Marketplace: enroll so coverage starts when the old plan ends. COBRA: elect knowing it’s retroactive and that leaving early means waiting for Open Enrollment. Call (844) 788-3733 and we’ll run both sides with you in one call, free.
4 COBRA-Decision Mistakes to Avoid
❌ Electing COBRA on autopilot
It feels safe — same card, same doctors — but you’re volunteering to pay the employer’s share too. A short comparison beats months of overpaying.
❌ Letting both windows lapse
Sixty days goes fast in a job transition. Miss both clocks and you’re generally uninsured until Open Enrollment — the worst possible outcome of a decision you never made.
❌ Forgetting unemployment counts as income
Unemployment benefits add to MAGI. Leave them out of your estimate and your subsidy gets reconciled — in full, since current law removed the repayment caps — at tax time.
❌ Planning to “quit COBRA whenever”
Voluntarily dropping COBRA mid-year doesn’t open a marketplace window — exhausting it does, and Open Enrollment always does. If you elect it, you’re choosing it at least until then.
How FreedInsure Helps
We turn the COBRA decision into one comparison call — your election notice on one side, real subsidy quotes from 14+ carriers on the other, free.
📊 Both-Sides Math
COBRA total (with your deductible credit) versus marketplace total (with your subsidy and CSRs), through December 31 — one honest number for each.
🕑 Deadline Management
We help you track both 60-day clocks and time enrollment to avoid a gap — including the enroll-before-loss move most people don’t know exists.
💰 Always Free
Carriers pay brokers; you don’t. Same Marketplace plans, same prices as going direct — with an expert running the comparison.
📞 A Real Licensed Agent
One licensed professional, start to finish.
FreedInsure LLC is an independent insurance broker; its licensed agent, Constantino Lardi (NPN 20230457), is licensed in 42 jurisdictions (41 states + DC). Our help is free to you, and we’ll show you your ACA Marketplace options (in the states where we sell them), including any tax credit you qualify for, next to any private plan. Two of our team members speak Spanish.
Election notice in hand? Call (844) 788-3733 or complete the form below. A licensed advisor will be in touch soon. No pressure, no spam, no selling your data.
Job-Loss Coverage Options by State
Marketplace carriers and prices vary by state, and smaller-employer “mini-COBRA” rules differ too. Your state’s full picture:
Frequently Asked Questions
COBRA Notice vs. Your Real Subsidy — In One Call
A licensed advisor runs both sides on your actual numbers — deductible credit, subsidy, networks — before your 60 days run out. Free, no obligation.
More Job-Transition Guides
Don’t Pay Your Employer’s Share By Accident
Free COBRA-vs-marketplace comparison by a licensed advisor, before your 60 days run out. (844) 788-3733.
Compare My Options →FreedInsure is an independent insurance agency, not affiliated with the U.S. government or HealthCare.gov.