COBRA vs. Marketplace Insurance: Which Should You Choose?

Lost your job or leaving an employer? You'll likely face a choice between COBRA continuation coverage and an ACA Marketplace plan. Here's how to choose the right one.

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When you leave a job — whether voluntarily or not — you typically have two main options for continuing your health coverage: COBRA or an ACA Marketplace plan. Here's how to decide.

What Is COBRA?
COBRA (Consolidated Omnibus Budget Reconciliation Act) allows you to continue your employer's group health plan after losing coverage. You keep the same plan and the same network — but now you pay the full premium plus a 2% administrative fee.

*Typical cost:* $500–$700/month for individual coverage; $1,400–$2,000/month for families.

What Is ACA Marketplace Coverage?
Losing employer coverage is a Qualifying Life Event that triggers a 60-day Special Enrollment Period. You can enroll in an ACA plan outside of Open Enrollment. And unlike COBRA, you may qualify for Premium Tax Credits that dramatically reduce your cost.

When COBRA Makes Sense
- You're in the middle of an ongoing treatment with specific doctors who aren't on marketplace plans
- You expect to be back on employer coverage within 1–2 months
- Your income is high enough that you won't qualify for marketplace subsidies

When Marketplace Is Better
- Your income qualifies you for Premium Tax Credits (most people do)
- You're open to a new plan and network
- You need longer-term coverage (COBRA only lasts 18 months)
- You want a lower monthly cost

The Bottom Line
For most people, the ACA Marketplace is significantly more affordable than COBRA — especially with income-based subsidies. Contact Chime Insurance Group to compare your options within your 60-day Special Enrollment Period.