COBRA vs ACA

Compare keeping your plan against a subsidized marketplace plan, and find the cheaper one.

Your numbers never leave your browser.

Your current plan (for COBRA)

Enter the FULL monthly cost (your share + your employer's share): that's what you'd pay on COBRA, not the deduction from your old paycheck. Ask HR or check your benefits portal.

For your ACA marketplace estimate

Use your expected income for the coverage year: subsidies are based on it, not last year's salary.

The second-lowest-cost silver plan in your area sets your subsidy. Look it up on HealthCare.gov for now. A future update could fill this in for you automatically.

Enter your premium and income above to compare COBRA against a subsidized ACA plan. Nothing is sent anywhere. It all stays in your browser.

How this works

We calculate two numbers. COBRAis the full monthly premium for your current plan (your share plus your employer's share) plus up to a 2% administrative fee. ACA is the net monthly cost of a benchmark marketplace plan after the premium subsidy your expected income qualifies for. We show both side by side, monthly and annualized, and write the cheaper figure back so your runway calculator uses a real number. Estimates use the 2025 coverage year.

The COBRA full-premium shock

The single biggest surprise people hit after quitting is the COBRA bill. The number deducted from your paycheck was only your slice of the premium. On COBRA you pick up your employer's slice too, so a $120/month deduction can become a $700+/month bill overnight for the identical plan. Always price COBRA against an ACA plan before assuming you have to keep your old coverage.

The subsidy people don't know they qualify for

Premium subsidies are based on your expected income for the year, not your old salary. When you leave a job, your income for the rest of the year often drops enough to unlock a substantial subsidy (sometimes hundreds of dollars a month) even if you would never have qualified while employed. If your income is very low, you may qualify for Medicaid instead, often at no cost. Don't assume the marketplace is unaffordable until you've run your real numbers.

Frequently asked questions

Why is COBRA so much more expensive than what I paid at work?
While employed, your employer usually covers a large share of your premium, sometimes 70-80%. COBRA lets you keep the exact same plan, but now you pay the full premium (your share plus the employer's share) plus up to a 2% administrative fee. That's why the COBRA bill can be several times your old paycheck deduction.
How do ACA marketplace subsidies work?
Subsidies are based on your expected income for the coverage year relative to the federal poverty level and the cost of the benchmark (second-lowest-cost silver) plan in your area. The subsidy caps the share of income you're expected to pay toward that benchmark plan; the rest is paid for you. Many people who leave a job qualify for the first time because their income for the year drops.
Should I keep my doctors, or is the cheaper plan worth it?
COBRA keeps your current plan, network, and deductible, which is valuable if you're mid-treatment or have met your deductible for the year. An ACA plan is often cheaper but usually resets your deductible and may use a different network, so confirm your doctors are in-network before switching.
How long can I stay on COBRA?
COBRA is generally available for up to 18 months (longer in some circumstances). It's designed as a bridge, not a permanent solution. If you'll be uninsured for longer, an ACA plan is usually the better long-term option.